RealNetworks Announces Intention to Spin Off Its Casual Games Business

SEATTLE, May 8 /PRNewswire-FirstCall/ -- RealNetworks(R), Inc., today announced that it intends to separate its global casual games business into an independent company and distribute shares of the newly created games company to its shareholders. RealNetworks may precede the spin off with an initial public offering and sale of up to 20% of the shares of the new games company.

RealNetworks' casual games business is a leader in the casual games industry worldwide, with a vertically integrated development, publishing, licensing, distribution and retail business. Casual games are family friendly and easy-to-learn but hard-to-master. Played on personal computers, mobile devices and living room consoles, casual games include board, word and hidden-object games and puzzles. In the first quarter of 2008, RealNetworks' games business revenue rose 33% from the first quarter of 2007 to $31.8 million. For 2007, games revenue was $108.5 million, up 26% over 2006.

"RealNetworks was a pioneer and has been a leader in the casual games industry since we introduced RealArcade in 2001," said Rob Glaser, Chairman and CEO of RealNetworks. "We believe that spinning off our casual games business will give it the best opportunity to continue to flourish and lead."

The company anticipates that spinning off its casual games business will result in two more flexible and focused companies. In addition, the separation will provide the games business with an industry-specific currency for future acquisitions and enhance its ability to attract and retain the best talent in the industry.

"Today's announcement demonstrates our commitment to create long-term value for RealNetworks' shareholders," said Michael Eggers, Senior Vice President and CFO of RealNetworks. "For investors, we anticipate that the spin off will create a pure-play casual games business with increased transparency, and that it will result in lower complexity in understanding and tracking RealNetworks' performance. We also think that the new structure will provide current and potential shareholders with two attractive investment options that may be more closely aligned with their various investment objectives."

RealNetworks expects that either a spin off or an IPO and subsequent spin off will be tax-free to its shareholders. In addition to a final approval by the RealNetworks' Board of Directors, completion of the transaction will be subject to a number of factors, including the effectiveness of a registration statement, the receipt of a favorable letter ruling from the Internal Revenue Service, the receipt of an opinion of tax counsel, market conditions, the execution of inter-company agreements and other matters.

RealNetworks expects to determine its specific course of action in time to file appropriate documents with the Securities and Exchange Commission by the end of the year.

Website materials

A Q&A, an 8K and this press release will be posted on special pages of the company's website, and can be found at http://investor.realnetworks.com/games.

Webcast and Conference Call Information

The Company will host a webcast and conference call today in conjunction with its regular first quarter earnings call at 5:00 pm ET/2:00 pm PT. The live webcast, featuring slides and audio, will be available at http://investor.realnetworks.com/. Listeners must use RealPlayer(R) to listen to the conference call, which can be downloaded for free at http://www.real.com/. The on-demand webcast will be available approximately two hours following the conclusion of the live webcast. Participants may access the conference call by dialing 800-857-5305 (773-681-5857 for international callers).

The passcode is "First Quarter Earnings" and the leader is Rob Glaser. A telephonic replay will be available until 8:00 pm ET on May 22, 2008, and may be accessed by dialing 866-424-3998 (for domestic callers) and 203-369-0851 (for international callers).

ABOUT REALNETWORKS

RealNetworks, Inc. delivers digital entertainment services to consumers via PC, portable music player, home entertainment system and mobile phone. Real created the streaming media category in 1995 and has continued to lead the market with pioneering products and services, including: RealPlayer(R), the first mainstream media player to enable one-click downloading and recording of Internet video; the award-winning Rhapsody(R) digital music service, which delivers more than 1 billion songs per year; RealArcade(R), one of the largest casual games destinations on the Web; and a variety of mobile entertainment services, such as ringback tones, offered to consumers through leading wireless carriers around the world. RealNetworks' corporate information is located at http://www.realnetworks.com/company.

Note Regarding Games Business Financial Information. In connection with any spin off or IPO transaction, RealNetworks intends to prepare separate, audited historical annual financial statements and unaudited historical quarterly financial statements for its games businesses on a stand-alone basis. The operating results and financial data reflected in the stand-alone financial statements of RealNetworks games business could differ from the operating results and financial data reported by RealNetworks on a consolidated basis in this press release due to adjustments made during the preparation and/or audit of the stand-alone financial statements.

Safe Harbor for Forward Looking Statements: This release contains a number of forward-looking statements that involve risks and uncertainties. Forward-looking statements are often identified by words such as "believe," "may," "will," "optimistic," "anticipate," "intend," "should," "could," "would," "strategy," "plan," "continue," or the negative of these words or other words or expressions of similar meaning and include, but are not limited to, statements regarding the following: RealNetworks' intention to separate its games business, distribute shares of the newly created games company to its shareholders and potentially precede the spin off with an initial public offering and sale of up to 20% of the shares of the games company; the anticipated benefits of the separation, spin off and IPO, including the opportunity of the games business to flourish and lead; the potential for the separated companies to better focus on their different markets; the ability of each company to make future acquisitions, retain employees and increase long-term value for shareholders; anticipated creation of a pure-play casual games business with increased transparency and anticipated lower complexity in understanding and tracking RealNetworks' performance; the intended tax-free nature of the proposed transactions; and the timing of RealNetworks' determination regarding the structure of the transaction. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by such statements, including, but not limited to, the following: the ability of RealNetworks to successfully manage and consummate the separation, spin off and/or potential IPO process including the risk of any delays in connection therewith or that such transactions may not occur; the state of the financial markets; the possibility that RealNetworks' financial results will be harmed as a result of the separation of the games business; risks relating to the allocation of assets and personnel between the companies; the increased expenses resulting from such transactions; the potential for business disruption and employee distraction during such transactions and whether or not such transactions occur and the ability to retain and motivate key employees during such process. More information about risk factors that could affect RealNetworks' business and financial results are included in RealNetworks' reports filed with the Securities and Exchange Commission including, but not limited to, its annual report on Form 10-K for the fiscal year ended December 31, 2007. All forward looking statements include the assumptions that underlie such statements and are based on management's estimates, projections and assumptions as of the date hereof. RealNetworks assumes no obligation to update any such forward looking statements or information.

A registration statement relating to shares to be sold in an IPO, if applicable, will be filed with the Securities and Exchange Commission. Such registration statement has not been filed or become effective. The shares of the games business may not be sold and offers may not be accepted prior to the time such registration statement becomes effective. This release does not constitute an offer to sell or the solicitation of any offer to buy any securities and there shall not be any sale of any securities of the games business in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

RealNetworks, RealPlayer, Rhapsody and RealArcade are trademarks or registered trademarks of RealNetworks or its subsidiaries.

RealNetworks, Inc.

CONTACT: Bill Hankes, +1-206-892-6614, bhankes@real.com, or Financial,
Marj Charlier, +1-206-892-6718, mcharlier@real.com, both of RealNetworks,
Inc.

Web site: http://www.real.com/

Dot Hill Reports First Quarter 2008 Results

CARLSBAD, Calif., May 8 /PRNewswire-FirstCall/ -- Dot Hill Systems Corp. today announced financial results for the first quarter ended March 31, 2008. For the first quarter of 2008, net revenue was $52.8 million, which includes a reduction in revenue of $2.3 million associated with the warrant issued to Hewlett-Packard, and compares to $53.4 million for the first quarter of 2007 and $51.8 million for the fourth quarter of 2007.

Excluding the $2.3 million reduction in revenue mentioned above, net revenue for the first quarter of 2008 was $55.1 million on a non-GAAP basis, and exceeded the guidance range of $48 to $52 million that the company provided on March 13, 2008.

Net loss was $6.1 million for the first quarter of 2008, or $0.13 per fully diluted share. This compares to a net loss of $6.0 million for the first quarter of 2007, or $0.13 per fully diluted share, and a net loss of $46.4 million for the fourth quarter of 2007, or $1.01 per fully diluted share, which included a non-cash goodwill impairment charge of $40.7 million. Included in the first quarter 2008 net loss was the warrant issued to Hewlett-Packard of $2.3 million, a $3.8 million legal settlement, a $0.3 million currency gain, $0.7 million in share-based compensation expense and $0.3 million in severance costs largely associated with the closure of the company's office in the Netherlands.

On a non-GAAP basis after adjusting for the impacts from the issuance of a warrant to Hewlett-Packard, the legal settlement benefit, share-based compensation expense, foreign currency translation gains and severance costs, net loss for the first quarter of 2008 was $7.0 million, or $0.15 per share on a fully diluted basis, and was within the $0.15 to $0.19 net loss per share range issued by the company on March 13, 2008.

Gross margin for the first quarter of 2008 was 7.9 percent as compared to first quarter 2007 gross margin of 12.5 percent and fourth quarter 2007 gross margin of 12.2 percent. The decrease in gross margin percentage on a year-over-year and sequential basis was due primarily to the reduction in revenue associated with the warrant issued to Hewlett-Packard and secondarily to a change in the company's product sales mix. Adjusting first quarter 2008 results for the reduction in revenue, share-based compensation expense and severance costs, non-GAAP gross margin percentage was 12.0 percent.

The company exited the first quarter of 2008 with cash and cash equivalents of $77.4 million. This compares to the fourth quarter 2007 balance of cash and cash equivalents of $82.4 million. The sequential decrease in cash and cash equivalents was due primarily to operating losses and the creation of hub inventory for certain of Dot Hill's large OEM customers.

"Since last quarter, Dot Hill has made some significant progress on several fronts," said Dana Kammersgard, president and chief executive officer of Dot Hill. "We have executed well on our initial shipments to Hewlett-Packard and been successful in diversifying our revenue stream with now nearly 40 customers who are purchasing our R/Evolution products. There is intense focus on cost of goods sold reductions and tight operating expense control. In all, we continue to believe the combination of top-line growth and margin appreciation from our cost reduction efforts can yield a return to non-GAAP profitability later this year."

The company is targeting second quarter 2008 net revenue in the range of $66 to $70 million and a net loss per fully diluted share in the range of $0.07 to $0.10 on a non-GAAP basis, which excludes share-based compensation expense, foreign currency gains or losses, severance and restructuring expenses

Dot Hill's first quarter 2008 financial results conference call is scheduled to take place on May 8, 2008 at 4:30 p.m. ET. The live audio webcast will be accessible at http://investors.dothill.com/events.cfm. For access via telephone, please dial 877-407-8035 (U.S.) or 201-689-8035 (International) at least five minutes prior to the start of the call. A replay of the webcast will be available on the Dot Hill web site following the conference call. For a telephone replay, please dial 877-660-6853 (U.S.) or 201-612-7415 (International) and enter account number 286, then passcode 2833070.

About Non-GAAP Financial Measures

This press release contains financial results that exclude the effects of the issuance of warrants to Hewlett-Packard, goodwill impairment charges, stock-based compensation expense, severance costs, foreign currency adjustments and costs associated with legal settlements, and are not in accordance with U.S. generally accepted accounting principles (GAAP). The company believes that these non-GAAP financial measures provide meaningful supplemental information to both management and investors that are indicative of the company's core operating results and facilitates comparison of operating results across reporting periods. The company used these non-GAAP measures when evaluating its financial results as well as for internal resource management, planning and forecasting purposes. These non-GAAP measures should not be viewed in isolation from or as a substitute for the company's expected financial results in accordance with GAAP.

About Dot Hill

Delivering innovative technology and global support, Dot Hill empowers the OEM community to bring unique storage solutions to market, quickly, easily and cost-effectively. Offering high performance and industry-leading uptime, Dot Hill's RAID technology is the foundation for best-in-class storage solutions offering enterprise-class security, availability and data protection. The company's products are in use today by the world's leading service and equipment providers, common carriers, advanced technology and telecommunications companies as well as government agencies. Dot Hill solutions are certified to meet rigorous industry standards and military specifications, as well as RoHS and WEEE international environmental standards. Headquartered in Carlsbad, Calif., Dot Hill has offices and/or representatives in China, Germany, Japan, United Kingdom and the United States. For more information, visit us at http://www.dothill.com/.

Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such statements include statements regarding: Dot Hill's projected financial results for the second quarter of 2008; Dot Hill's ability to achieve profitability; and continued diversification of Dot Hill's revenue stream. The risks that contribute to the uncertain nature of the forward-looking statements include, among other things: the risk that actual financial results for the second quarter 2008 may be different from the financial guidance provided in this press release; the fact that no Dot Hill customer agreements provide for mandatory minimum purchase requirements; the risk that one or more of Dot Hill's OEM or other customers may cancel or reduce orders, not order as forecasted or terminate their agreements with Dot Hill; the risk that Dot Hill's new products may not prove to be popular; the risk that one or more of Dot Hill's suppliers or subcontractors may fail to perform or may terminate their agreements with Dot Hill; unforeseen technological, intellectual property, personnel or engineering issues; and the additional risks set forth in the form 10-K and most recently filed by Dot Hill. All forward-looking statements contained in this press release speak only as of the date on which they were made. Dot Hill undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

DOT HILL SYSTEMS CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In Thousands, Except Per Share Amounts) Three Months Ended March 31, 2007 2008 NET REVENUE $53,441 $52,826 COST OF GOODS SOLD 46,767 48,660 GROSS PROFIT 6,674 4,166 OPERATING EXPENSES: Sales and marketing 3,908 4,272 Research and development 6,074 7,424 General and administrative 3,670 3,043 Legal settlement - (3,836) Total operating expenses 13,652 10,903 OPERATING LOSS (6,978) (6,737) OTHER INCOME: Interest income, net 1,308 708 Other income, net - 79 TOTAL OTHER INCOME, NET 1,308 787 LOSS BEFORE INCOME TAXES (5,670) (5,950) INCOME TAX EXPENSE 292 160 NET LOSS $(5,962) $(6,110) NET LOSS PER SHARE: Basic and diluted $(0.13) $(0.13) WEIGHTED AVERAGE SHARES USED TO CALCULATE NET LOSS PER SHARE: Basic and diluted 45,157 45,956 COMPREHENSIVE LOSS: Net loss $(5,962) $(6,110) Foreign currency translation adjustments (604) (231) Comprehensive loss $(6,566) $(6,341) DOT HILL SYSTEMS CORP. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands Except Per Share Amounts) December 31, March 31, 2007 2008 ASSETS Current Assets: Cash and cash equivalents $82,358 $77,406 Accounts receivable, net of allowance of $302 and $195 32,445 36,569 Inventories 9,013 14,430 Prepaid expenses and other 3,968 4,626 Total current assets 127,784 133,031 Property and equipment, net 9,599 8,819 Intangible assets, net 2,280 1,873 Other assets 264 236 Total assets $139,927 $143,959 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $28,472 $35,738 Accrued compensation 3,115 3,612 Accrued expenses 6,227 5,588 Deferred revenue 1,409 1,284 Income taxes payable 143 270 Total current liabilities 39,366 46,492 Other long-term liabilities 4,132 3,769 Total liabilities 43,498 50,261 Commitments and Contingencies Stockholders' Equity: Preferred stock, $.001 par value, 10,000 shares authorized, no shares issued and outstanding - - Common stock, $.001 par value, 100,000 shares authorized, 45,781 and 46,055 shares issued and outstanding at December 31, 2007 and March 31, 2008, respectively 46 46 Additional paid-in capital 294,193 297,803 Accumulated other comprehensive loss (3,100) (3,331) Accumulated deficit (194,710) (200,820) Total stockholders' equity 96,429 93,698 Total liabilities and stockholders' equity $139,927 $143,959 DOT HILL SYSTEMS CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) Three Months Ended March 31, 2007 2008 Cash Flows From Operating Activities: Net loss $(5,962) $(6,110) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,775 1,465 Gain on disposal of property and equipment - (5) Provision for doubtful accounts - (171) Issuance of warrant to customer - 2,282 Share-based compensation expense 225 665 Changes in operating assets and liabilities: Accounts receivable 2,109 (4,032) Inventories (195) (5,390) Prepaid expenses and other assets 1,042 (626) Accounts payable (417) 6,987 Accrued compensation and other expenses (2,250) (121) Deferred revenue 28 (151) Income taxes payable 158 126 Other long-term liabilities 16 (363) Net cash used in operating activities (3,471) (5,444) Cash flows from investing activities Purchase of property and equipment (945) (268) Net cash used in investing activities (945) (268) Cash flows from financing activities Proceeds from sale of stock to employees 508 465 Proceeds from exercise of stock options and warrants 94 198 Net cash provided by financing activities 602 663 Effect of exchange rate changes on cash 64 97 Net decrease in cash and cash equivalents (3,750) (4,952) Cash and cash equivalents beginning of period 99,663 82,358 Cash and cash equivalents end of period $95,913 $77,406 Supplemental disclosures of cash flow information Cash paid for income taxes $125 $35 Supplemental disclosures of non-cash investing and financing activities Construction in progress costs incurred but no paid $481 $142 DOT HILL SYSTEMS CORP. RECONCILIATION TABLE OF NON-GAAP MEASURES (In Thousands, Except Per Share Amounts) (Unaudited) Three Months Ended March 31, 2007 2008 Net loss $(5,962) $(6,110) Effect of issuance of warrant to customer - 2,282 Effect of legal settlement - (3,836) Effect of currency gain (241) (294) Effect of share-based compensation 225 665 Effect of severance costs - 322 Net loss as adjusted $(5,978) $(6,971) Net loss per share: Basic and diluted $(0.13) $(0.15) Weighted average shares used to calculate net loss per share: Basic and diluted 45,157 45,956 Net revenue $53,441 $52,826 Effect of issuance of warrant to customer - 2,282 Net revenue as adjusted $53,441 $55,108 Gross profit $6,674 $4,166 Effect of issuance of warrant to customer - 2,282 Effect of share-based compensation 103 96 Effect of severance costs - 50 Gross profit as adjusted $6,777 $6,594

Dot Hill Systems Corp.

CONTACT: Hanif Jamal, Chief Financial Officer, +1-760-931-5500,
investors@dothill.com, or Kirsten Garvin, Director of Investor Relations,
+1-760-476-3811, kirsten.garvin@dothill.com, both of Dot Hill Systems Corp.

Web site: http://www.dothill.com/

TI Vice President Ron Slaymaker to speak at Baird investor conferenceLive webcast at www.ti.com/irMay 14, 2008, 2:30 p.m. Central time

DALLAS, May 8 /PRNewswire/ -- Texas Instruments Incorporated (TI) Vice President Ron Slaymaker will speak at Baird's 2008 Growth Stock Conference in Chicago on Wednesday, May 14, at 2:30 p.m. Central time. Slaymaker will discuss TI's business outlook and its strategy to address key markets for its analog and embedded processing technologies and how these capabilities position it for growth.

The audio webcast can be accessed live through the Investor Relations section (http://www.ti.com/ir) of TI's website. Archived replays are available for 1 week.

Texas Instruments helps customers solve problems and develop new electronics that make the world smarter, healthier, safer, greener and more fun. A global semiconductor company, TI innovates through manufacturing, design and sales operations in more than 25 countries. For more information, go to http://www.ti.com/.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010105/NEF016LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk photodesk@prnewswire.com Texas Instruments Incorporated

CONTACT: Chris Rongone, +1-214-480-6868, c-rongone@ti.com, or Renee
Fancher, +1-214-567-7447, rfancher@ti.com, both of Texas Instruments
Incorporated

Web site: http://www.ti.com/

FairPoint Communications to Release 2008 First Quarter Earnings ResultsConference call and web broadcast details released

CHARLOTTE, N.C., May 8 /PRNewswire-FirstCall/ -- FairPoint Communications, Inc. announced today that it will release its 2008 first quarter financial results at 6:30 a.m. (EDT) on Friday, May 16, 2008. The Company will hold its earnings conference call at 8:30 a.m. (EDT) on the same morning, Friday, May 16, 2008.

Participants should call (888) 253-4456 (US/Canada) or (706) 643-3201 (international) at 8:20 a.m. (EDT) and request the FairPoint Communications First Quarter 2008 Earnings Call or Conference ID# 46956451. A telephonic replay will be available for anyone unable to participate in the live call. To access the replay, call (800) 642-1687 (US/Canada) or (706) 645-9291 (international) and enter confirmation code 46956451. The recording will be available from Friday, May 16, 2008 at 11:00 a.m. (EDT) through Friday, May 23, 2008 at 11:59 p.m. (EDT).

A live broadcast of the earnings conference call will be available via the Internet at http://www.fairpoint.com/ under the Investor Relations section. An online replay will be available beginning at 1:00 p.m. (EDT) on May 16, 2008 and will remain available for one year.

About FairPoint

FairPoint Communications, Inc. is an industry leading provider of communications services to communities across the country. Today, FairPoint owns and operates 32 local exchange companies in 18 states offering advanced communications with a personal touch including local and long distance voice, data, Internet, television and broadband services. FairPoint is traded on the New York Stock Exchange under the symbol FRP. Learn more at http://www.fairpoint.com/.

This press release may contain forward-looking statements by FairPoint that are not based on historical fact, including, without limitation, statements containing the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions and statements. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Such factors include those risks described from time to time in FairPoint's filings with the Securities and Exchange Commission ("SEC"), including, without limitation, the risks described in FairPoint's most recent Annual Report on Form 10-K on file with the SEC. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and FairPoint undertakes no duty to update this information.

CONTACTS: Investors: Brett Ellis 866-377-3747 bellis@fairpoint.com Media: Rose Cummings 704-602-7304 rcummings@fairpoint.com

FairPoint Communications, Inc.

CONTACT: Investors, Brett Ellis, +1-866-377-3747, bellis@fairpoint.com,
or Media, Rose Cummings, +1-704-602-7304, rcummings@fairpoint.com, both of
FairPoint Communications, Inc.

Web site: http://www.fairpoint.com/

DATATRAK International Reports First Quarter Results for 2008

CLEVELAND, May 8 /PRNewswire-FirstCall/ -- DATATRAK International, Inc. , a technology and services company focused on global eClinical solutions for the clinical trials industry, today reported its operating results for the first quarter of 2008.

For the three months ended March 31, 2008, revenue decreased approximately 41% to $2,088,000 and the Company reported a net loss of $(2,233,000), or $(0.16) per share on both a basic and diluted basis. These results compared with revenue of $3,542,000 and a net loss of $(1,895,000) or $(0.16) per share on both a basic and diluted basis in the first quarter of 2007.

The gross profit margin for the first quarter was 55% compared to 62% for the same period a year ago. The decline in gross profit margin was a result of the 41% decrease in revenue partially offset by a 30% reduction in direct costs.

DATATRAK's backlog at March 31, 2008 was $13.9 million and backlog currently stands at approximately $12.9 million. This compares to a backlog of $13.0 million at December 31, 2007. Backlog is defined as the remaining value of signed contracts or authorization letters to commence services. The Company does not include in its backlog potential contracts or authorization letters that have passed the verbal stage, but have not been signed. All contracts are subject to possible delays or cancellation or can change in scope in a positive or negative direction. Therefore, current backlog is not necessarily indicative of the Company's future quarterly or annual revenue. Historically, backlog has been a poor predictor of the Company's short-term revenue.

"In our last financial release and conference call in late February we stated that we were seeing early signs of a building sales momentum as we entered this year and felt we were moving in such a direction that we believed 2008 would place us back on a positive sales growth trend," stated Dr. Jeffery A. Green, President and CEO of DATATRAK International, Inc. "This optimism was supported by a near record volume of approximately $4.1 million of new business during the fourth quarter of 2007, a reflection of positive results from our reorganized marketing and sales efforts. We were careful to frame our anticipated return to growth as a gradual, but positive trend, stating it was certainly possible that as we progressed through the remainder of 2008 and beyond, a particular quarter's sales may not necessarily be greater than the prior, however, looking out, the trend should be progressively upward."

Green Continued, "Based partially on our first quarter 2008 revenues, which represented our first sequential quarterly revenue increase in quite some time (going from $1.8 million in the fourth quarter of 2007 to $2.1 million during the first quarter of this year) and new backlog additions totaling approximately $3 million, I am pleased to report to you today that during this first quarter we continued to make progress towards achieving our recovery goals for 2008."

"Our relationship with NTT DATA continues to advance. During this quarter our respective teams have been working closely on continued training on our eClinical platform and we are working hand-in-hand with NTT DATA's marketing and sales team in Japan. NTT DATA will be present in our booth at the upcoming Annual DIA trade show in Boston in June."

"While challenges and uncertainties still confront us, we are encouraged with our progress during the most recent quarter and remain positive about our future potential. We are focused on, and working to return the Company to a positive cash flow environment as quickly as possible. I encourage you to join our conference call later today where these and other topics will be discussed in more detail."

The Company will also host a conference call today at 4:30 p.m. ET. To participate via phone, participants are asked to dial 412-858-4600 a few minutes before 4:30 p.m. ET. The conference call will also be available via live web cast on DATATRAK International, Inc.'s web site by clicking the button labeled "Click here for Live Web Cast, 1st Quarter Earnings Call" on the Company's homepage at http://www.datatrak.net/ a few minutes before 4:30 p.m. ET.

A replay of the phone call and web cast will each be available at approximately 6:30 p.m. ET on May 8, 2008 and will run until 9:00 a.m. ET on May 15, 2008. The phone replay can be accessed by dialing 412-317-0088 (access code 419020). To access the web cast replay go to the Company's homepage at http://www.datatrak.net/ and click the button labeled "Click here for Replay of Web Cast, 1st Quarter Earnings Call."

DATATRAK International, Inc. is a worldwide technology company focused on the provision of multi-component eClinical solutions and related services for the clinical trials industry. The Company delivers a complete portfolio of software products that were created in order to accelerate clinical research data from investigative sites to clinical trial sponsors and ultimately the FDA, faster and more efficiently than manual methods or loosely integrated technologies. The DATATRAK eClinical(TM) software suite can be deployed worldwide through an ASP offering or in a licensed Enterprise Transfer ASP model that fully empowers clients to design, set up and manage their clinical trials independently. The DATATRAK software suite and its earlier versions have successfully supported hundreds of international clinical trials involving thousands of clinical research sites and encompassing tens of thousands of patients in 59 countries. DATATRAK International, Inc.'s product suite has been utilized in some aspect of the clinical development of 16 separate drugs and one medical device that have received regulatory approval from either the United States Food and Drug Administration or counterpart European bodies. DATATRAK International, Inc. has offices located in Cleveland, Ohio, Bonn, Germany, and Bryan, Texas. Its common stock is listed on the NASDAQ Stock Market under the ticker symbol "DATA". Visit the DATATRAK International, Inc. web site at http://www.datatrak.net/ .

Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. These forward- looking statements are made based on management's expectations, assumptions, estimates and current beliefs concerning the operations, future results and prospects of the Company and are subject to uncertainties and factors (including those specified below) which are difficult to predict and, in many instances, are beyond the control of the Company. Factors that may cause actual results to differ materially from those in the forward-looking statements include the limited operating history on which the Company's performance can be evaluated; the ability of the Company to continue to enhance its software products to meet customer and market needs; fluctuations in the Company's quarterly results; the viability of the Company's business strategy and its early stage of development; the timing of clinical trial sponsor decisions to conduct new clinical trials or cancel or delay ongoing trials; the Company's dependence on major customers; government regulation associated with clinical trials and the approval of new drugs; the ability of the Company to compete in the emerging EDC market; losses that potentially could be incurred from breaches of contracts or loss of customer data; the inability to protect intellectual property rights or the infringement upon other's intellectual property rights; the Company's success in integrating its acquisition's operations into its own operations and the costs associated with maintaining and/or developing two product suites; and general economic conditions such as the rate of employment, inflation, interest rates and the condition of capital markets. This list of factors is not all-inclusive. In addition, the Company's success depends on the outcome of various strategic initiatives it has undertaken, all of which are based on assumptions made by the Company concerning trends in the clinical research market and the health care industry. The Company undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise.

DATATRAK International, Inc. and Subsidiaries Condensed Consolidated Balance Sheet Data (Unaudited) March 31, December 31, 2008 2007 Cash and investments $5,950,860 $8,514,361 Accounts receivable, net 1,395,989 1,070,688 Property & equipment, net 3,214,069 3,534,799 Deferred tax assets 1,301,700 1,399,000 Intangible assets, net 333,808 520,458 Goodwill 10,856,113 10,856,113 Other 511,102 577,792 Total assets $23,563,641 $26,473,211 Accounts payable and other current liabilities $6,452,693 $3,971,883 Long-term liabilities 2,674,241 5,931,962 Shareholders' equity 14,436,707 16,569,366 Total liabilities and shareholders' equity $23,563,641 $26,473,211 DATATRAK International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) For the Three Months Ended March 31, 2008 2007 Revenue $2,088,229 $3,542,095 Direct costs 933,879 1,337,471 Gross profit 1,154,350 2,204,624 Selling, general and administrative expenses 2,856,600 3,422,671 Depreciation and amortization 522,426 622,403 Loss from operations (2,224,676) (1,840,450) Interest income 59,740 70,192 Interest expense 66,567 98,669 Loss on disposal 1,382 - Loss before income taxes (2,232,885) (1,868,927) Income tax expense - 26,300 Net loss $(2,232,885) $(1,895,227) Net loss per share: Basic: Net loss per share $(0.16) $(0.16) Weighted-average shares outstanding 13,681,901 11,858,949 Diluted: Net loss per share $(0.16) $(0.16) Weighted-average shares outstanding 13,681,901 11,858,949

DATATRAK International, Inc.

CONTACT: Jeffrey A. Green, Pharm.D., FCP, President and Chief Executive
Officer, x112, or Raymond J. Merk, Chief Financial Officer, x181, both of
DATATRAK International, Inc., +1-440-443-0082; or Neal Feagans, Investor
Relations of Feagans Consulting, Inc., +1-303-449-1184

Web site: http://www.datatrak.net/

Limelight Networks Reports First Quarter 2008 Results- Grew revenue to $30.2 million, a 29% increase from the year-ago first-quarter- Signed 183 new customers, up from 84 new customers in last year's first quarter, including 35 international and 77 signed in March- Introduced Limelight Live Event Services - a solution of professional services and advanced technologies - enabling content producers to broadcast live events- Announced content delivery network support for Microsoft Silverlight DRM powered by PlayReady- Launched content delivery network support for Adobe Flash Media Server 3- Received first patent award for digital rights management technology

TEMPE, Ariz., May 8 /PRNewswire-FirstCall/ -- Limelight Networks, Inc. today reported first-quarter 2008 revenue of $30.2 million, and a GAAP net loss of $18.4 million, or 22 cents per basic share. Non-GAAP net loss, adjusted for certain charges, was $2.0 million, or 2 cents per share. EBITDA adjusted for share-based compensation, litigation and damage costs, was $2.1 million. Limelight Networks' non-GAAP EPS loss of 2 cents per basic share excludes a charge of 15 cents per basic share related to litigation and damage costs and 5 cents per basic share of share-based compensation.

Reconciliation of GAAP to non-GAAP net income is included in the attached tables.

"We are pleased with our customer addition rate, platform advancements, additions to our service suite, and progress towards our goal of delivering a brilliant client and end-user experience. Our number of new customer wins was up over 110% compared to the same quarter last year - despite an unfavorable verdict in our ongoing litigation with Akamai. Over 40% of these new customers were signed in March, after the verdict was announced, clearly demonstrating continued confidence in our business," said Jeff Lunsford, chief executive officer, Limelight Networks, Inc.

Business Drivers

Limelight Networks signed 183 new customers in the first quarter, up significantly from 84 signed in the same quarter a year ago. Of those new customer wins, 35 were international, and 77 occurred in the month of March. The Company also saw early success with its newly announced Live Event Services product, continued growth of its electronic software delivery products, expanded agreements with existing customers, and international expansion in the quarter.

Solid Financial Footing

First-quarter revenue was $30.2 million, up 29 percent from $23.4 million in the year-ago first quarter and within the range of guidance previously provided by the Company.

"We are focused on continued growth of recurring revenues and further diversification of revenue streams, including extending our business into the enterprise sector. Our top 20 customers now account for 58% of total revenue, down from 64% a year ago," said Matt Hale, chief financial officer, Limelight Networks, Inc.

Capital purchases were $3.1 million, down from $5.6 million in last year's first quarter.

"We continue to make operational improvements throughout the business, including software platform enhancements and improvements in infrastructure performance," commented Hale.

Limelight Networks ended the quarter with no debt and approximately $195 million in cash and short-term marketable securities.

Second-Quarter Outlook

Limelight Networks anticipates second-quarter revenue to be in the range of $28 million to $30 million.

Conference Call and Web Audiocast

Management will host a quarterly conference call for investors beginning at 2:00 p.m. PST (5:00 p.m. EST). This call can be accessed toll-free at 1.800.561.2718 within the United States or 1.617.614.3525 outside of the U.S. using Conference ID 50345649.

The conference call will also be audiocast live at http://www.llnw.com/ and a replay will be available following the call from the Company's website.

Financial Statements LIMELIGHT NETWORKS, INC. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) March 31, December 31, 2008 2007 Assets Cash and cash equivalents $120,254 $113,824 Marketable securities 74,423 83,273 Accounts receivable, net 22,115 21,407 Income tax receivable 1,366 1,960 Prepaid expenses and other current assets 5,008 4,469 Current assets 223,166 224,933 Property and equipment, net 43,963 46,968 Marketable securities, less current portion 32 87 Other assets 876 1,440 Total assets $268,037 $273,428 Liabilities and stockholders' equity Accounts payable $4,929 $8,523 Accounts payable, related parties 150 230 Deferred revenue, current portion 5,399 4,237 Provision for litigation 55,264 48,130 Other current liabilities 14,753 9,312 Current liabilities 80,495 70,432 Deferred revenue, less current portion 7,328 8,189 Other liabilities 771 770 Total liabilities 88,594 79,391 Stockholders' equity 179,443 194,037 Total liabilities and stockholders' equity $268,037 $273,428 LIMELIGHT NETWORKS, INC. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended March 31, December 31, March 31, December 31, 2008 2007 2007 2006 Revenues $30,202 $29,132 $23,353 $22,110 Costs and operating expenses: Cost of revenues (1)(2) 20,672 18,435 14,497 13,232 General and administrative (1)(2) 13,329 7,961 7,774 10,061 Sales and marketing (1) 8,142 8,619 3,018 2,450 Research and development (1) 1,590 1,385 1,285 1,200 Provision for Litigation 7,134 48,130 - - Total costs and operating expenses 50,867 84,530 26,574 26,943 Operating loss (20,665) (55,398) (3,221) (4,833) Interest expense (21) (6) (573) (431) Interest income 1,891 2,035 89 129 Other income (expense) 170 (177) - 105 Loss before income taxes (18,625) (53,546) (3,705) (5,030) Income tax (benefit) expense (183) 1,799 200 (51) Net loss $(18,442) $(55,345) $(3,905) $(4,979) Net loss allocable to common stockholders $(18,442) $(55,345) $(3,905) $(4,979) Net loss per share: Basic $(0.22) $(0.67) $(0.18) $(0.25) Diluted $(0.22) $(0.67) $(0.18) $(0.25) Shares used in per share calculations: Basic 82,623 82,140 21,945 19,882 Diluted 82,623 82,140 21,945 19,882 (1) Includes share-based compensation (see supplemental table for figures) (2) Includes depreciation (see supplemental table for figures) LIMELIGHT NETWORKS, INC. Supplemental Financial Data (In thousands) (Unaudited) Three Months Ended March 31, December 31, March 31, December 31, 2008 2007 2007 2006 Supplemental financial data (in thousands): Share-based compensation: Cost of revenues $507 $479 $242 $201 General and administrative 1,665 1,454 3,743 4,655 Sales and marketing 1,306 1,272 235 143 Research and development 482 420 851 856 Total share-based Compensation $3,960 $3,625 $5,071 $5,855 Depreciation and amortization: Network-related depreciation $6,013 $5,429 $4,688 $3,908 Other depreciation 247 278 137 91 Total depreciation and amortization $6,260 $5,707 $4,825 $3,999 Capital expenditures: Capital Expenditures (cash and accrual) $3,095 $5,135 $5,575 $17,109 Net increase (decrease) in cash, cash equivalents and marketable securities $(2,475) $3,032 $4,995 $(3,501) End of period statistics: Number of production customers under recurring contract 1,232 1,157 726 693 Number of employees 244 239 167 123 LIMELIGHT NETWORKS, INC. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, December 31, March 31, December 31, 2008 2007 2007 2006 Cash flows from operating activities: Net loss $(18,442) $(55,345) $(3,905) $(4,979) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 6,260 5,707 4,824 3,999 Share-based compensation 3,960 3,625 5,071 5,855 Deferred income tax (benefit) expense (176) 33 (467) (470) Excess tax benefits related to stock option exercises - (1,596) - - Accounts receivable charges 1,562 2,268 677 743 Accretion of debt discount - - 41 74 Accretion of marketable securities (453) (530) - - Gain on sale of property and equipment - - - (175) (Gain) Loss on foreign exchange (106) 42 - - Loss on investment 55 387 - - Unrealized (gain) loss on marketable securities (58) - - - Changes in operating assets and liabilities: Accounts receivable (2,271) (5,243) 1,998 (6,313) Prepaid expenses and other current assets 87 1,037 (1,809) (499) Income taxes receivable 594 2,742 310 (3,124) Other assets 564 11 (119) (162) Accounts payable (4,678) 3,613 (732) (6,074) Accounts payable, related parties (80) 230 1 781 Deferred revenue 301 135 20 - Provision for litigation 7,134 48,130 - - Other current liabilities 5,035 (4,449) 630 2,161 Other long term liabilities 1 740 - - Net cash (used in) provided by operating activities: (711) 1,536 6,540 (8,183) Cash flows from investing activities: Purchase of marketable securities (34,725) (2,081) - - Sale of marketable securities 44,200 20,300 - - Purchases of property and equipment (2,441) (37,569) (3,095) (13,282) Net cash provided by (used in) investing activities 7,034 (19,350) (3,095) (13,282) Cash flows from financing activities: Borrowings on credit facilities - - - 23,818 Payments on credit facilities - - - (7,749) Borrowings on line of credit - - 1,500 - Payments on capital lease obligations - - (159) (71) Payments on notes payable - related parties - - - - Escrow funds returned from share repurchase - 1,190 298 317 Excess tax benefits related to stock option exercises - 1,573 23 1,627 Proceeds from exercise of stock options and warrants 107 175 31 200 Proceeds from preferred stock issuance - - - (107) Proceeds from initial public offering, net of issuance costs - (47) - - Effects of exchange rate changes on cash and cash equivalents - (4) - - Net cash provided by financing activities 107 2,887 1,693 18,035 Net increase (decrease) in cash and cash equivalents 6,430 (14,926) 5,138 (3,430) Cash and cash equivalents, beginning of period 113,824 128,750 7,611 11,041 Cash and cash equivalents, end of period $120,254 $113,824 $12,749 $7,611 Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use Non-GAAP net income and EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure of operating performance. We consider Non-GAAP net income to be an important indicator of overall business performance because it allows us to illustrate the impact of the effects of share-based compensation, litigation expenses and provision for litigation. We define EBITDA as GAAP net income before interest income, interest expense, other income and expense, provision for income taxes, depreciation and amortization. We define EBITDA adjusted for share-based compensation and litigation and damage costs as EBITDA plus expenses that we do not consider reflective of our ongoing operations. We use EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure to review and assess operating performance. We also believe use of EBITDA adjusted for share-based compensation and litigation and damage costs facilitates investors' use of operating performance comparisons from period to period.

The terms Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs are not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Our Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs should not be considered in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:

-- EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; -- they do not reflect changes in, or cash requirements for, our working capital needs; -- they do not reflect the cash requirements necessary for litigation costs and damages accruals; -- they do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt; -- they do not reflect income taxes or the cash requirements for any tax payments; -- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will be replaced sometime in the future, and EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs do not reflect any cash requirements for such replacements; -- while share-based compensation is a component of operating expense, the impact on our financial statements compared to other companies can vary significantly due to such factors as the assumed life of the options and the assumed volatility of our common stock; and -- other companies may calculate EBITDA and EBITDA adjusted for share- based compensation and litigation and damage costs differently than we do, limiting their usefulness as comparative measures.

We compensate for these limitations by relying primarily on our GAAP results and using Non-GAAP Net Income and EBITDA adjusted for share-based compensation and litigation and damage costs only as supplemental support for management's analysis of business performance . Non-GAAP Net Income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs are calculated as follows for the periods presented in thousands:

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, the company is presenting the most directly comparable GAAP financial measures and reconciling the non-GAAP financial metrics to the comparable GAAP measures.

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) (In thousands) (Unaudited) Three Months Ended March 31, December 31, March 31, December 31, 2008 2007 2007 2006 GAAP net loss $(18,442) $(55,345) $(3,905) $(4,979) Provision for litigation 7,134 48,130 - - Share-based compensation 3,960 3,625 5,071 5,855 Litigation defense expenses 5,366 2,772 885 2,296 Deferred CDN Services not yet delivered - 729 - - Deferred cost of traffic and services - 21 - - Non-GAAP net (loss) income $(1,982) $(68) $2,051 $3,172 Reconciliation of GAAP Net Income (Loss) to EBITDA to EBITDA Adjusted for Share-Based Compensation and Litigation and Damage Costs (In thousands) (Unaudited) Three Months Ended March 31, December 31, March 31, December 31, 2008 2007 2007 2006 GAAP net loss $(18,442) $(55,345) $(3,905) $(4,979) Add: depreciation and amortization 6,260 5,707 4,825 3,999 Add: interest expense 21 6 573 431 Less: interest and other income (2,062) (1,858) (89) (234) Plus income tax expense (benefit) (183) 1,799 200 (51) EBITDA $(14,406) $(49,691) $1,604 $(834) Add: provision for litigation 7,134 48,130 - - Add: share-based compensation 3,960 3,625 5,071 5,855 Add: litigation defense expenses 5,366 2,772 885 2,296 EBITDA adjusted for share-based compensation, litigation and damage costs $2,054 $4,836 $7,560 $7,317 Safe-Harbor Statement

This press release contains forward-looking statements concerning, among other things, the outlook for the Company's revenues, net loss and stock-based compensation expense for the second quarter of 2008, customer growth, market growth, pricing pressures, expansion into additional market segments, product and services improvements and litigation and related expenses. Forward-looking statements are not guarantees and are subject to a number of risks and uncertainties that could cause actual results to differ materially including, but not limited to, risks and uncertainties discussed in the Company's Annual Report on Form 10K and other filings with the Securities and Exchange Commission and the final review of the results and amendments and preparation of quarterly financial statements, including consultation with our outside auditors. Accordingly, readers are cautioned not to place undue reliance on any forward-looking statements. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason.

About Limelight Networks, Inc.

Limelight Networks, Inc. is a content delivery partner enabling the next wave of Internet business and entertainment. More than 1300 Internet, entertainment, software, and technology brands trust our robust, scalable platform to monetize their digital assets by delivering a brilliant online experience to their global audience. Our architecture bypasses the busy public Internet using a dedicated optical network that interconnects thousands of servers and delivers massive files at the speed of light - directly to the access networks that consumers use every day. Our proven network and passion for service provides our customers confidence that every object in their library will be delivered to every user, every time. For more information, visit http://www.limelightnetworks.com/ .

Limelight Networks, Inc.

CONTACT: Paul Alfieri, +1-917-297-4241, palfieri@llnw.com, or Matt Hale,
+1-602-850-5045, mhale@llnw.com, both of Limelight Networks, Inc.

Web site: http://www.limelightnetworks.com/

SoftBrands Announces Second Quarter Fiscal 2008 Results

MINNEAPOLIS, May 8 /PRNewswire-FirstCall/ -- SoftBrands, Inc. , a global supplier of enterprise application software, today announced its financial results for the second quarter of fiscal 2008, ended March 31, 2008.

Revenues for second quarter fiscal 2008 increased 10.4 percent to $23.7 million, compared with $21.4 million in the prior year quarter. License revenue was 17.0% of total revenues in the current quarter, compared with 13.4% in second quarter fiscal 2007. Maintenance revenue was 57.1% of total revenues in the current quarter, compared with 62.9% of revenues in second quarter fiscal 2007.

SoftBrands reported an operating loss of $0.8 million in the second quarter of fiscal 2008, compared with an operating loss of $1.8 million in the fiscal 2007 quarter. The company reported a net loss available to common shareholders of $0.4 million, or a loss of $(0.01) per diluted share, compared with a net loss available to common shareholders of $3.3 million, or $(0.08) per diluted share, for second quarter fiscal 2007.

"We are pleased with our sales performance in the second quarter. We signed several large transactions in our hospitality business, including contracts with what will be the largest customer in our company's history, Red Roof Inns," said Randy Tofteland, SoftBrands' president and chief executive officer. "While our manufacturing business was slightly below its revenue plan for the quarter, we made progress with our SAP large enterprise strategy and we expect improved performance in manufacturing in the second half of the year based on the transactions we have closed since the end of the second quarter and the current pipeline of opportunities."

SoftBrands today updated its prior guidance for fiscal 2008 of GAAP revenue in the range of $100 million to $105 million; operating income of 4% to 7% of revenues; net income to common shareholders of (1)% to 2% of revenues; and diluted earnings per share of $(0.02) to $0.04.

Highlights of the second quarter and other recent developments include:

-- SoftBrands announced it has entered into a multi-phase project with Red Roof Inns, Inc. to supply a full suite of hospitality technology products and services to the U.S.-based hotel brand. Red Roof Inns, headquartered in Columbus Ohio, has nearly 350 properties and is known for value, consistency and excellent service.

-- SoftBrands and SAP have extended their partnership to include a common strategy for small sites of large enterprises, pursuing the sale of SAP-centric solutions at the plant level for large enterprises that run SAP solutions. SoftBrands is one of the first partners to work with SAP on a joint market approach and strategy for this market segment.

-- SoftBrands signed an agreement with De Vere Venues in the United Kingdom to provide its Epitome and Core solutions. The contract represents the first significant group business in the U.K. for the Epitome and Core products. The contract is expected to generate approximately $2 million in license and service revenues over the next year.

In the company's manufacturing business, second quarter fiscal 2008 revenues were $11.9 million, compared with $12.1 million in second quarter fiscal 2007. Second quarter fiscal 2008 operating income in manufacturing was $1.7 million, compared with $0.8 million in the prior year's quarter.

"We are confident about our SAP strategy and its potential to deliver significant license revenue. The outlook for this business is strong given a new partnership we have with SAP that includes shared performance goals and commitments by both parties," said Tofteland.

In the company's hospitality business, second quarter fiscal 2008 revenues were $11.7 million, compared with $9.3 million in the prior year's quarter. In second quarter fiscal 2008 SoftBrands' hospitality business posted an operating loss of $2.5 million, compared with an operating loss of $2.6 million in the prior year's quarter.

"In our hospitality business we are increasing spending on research and development above our original plan to improve the scalability and stability of our products for larger, more complex customers. This investment affected our profitability in the current quarter, and will also have an affect in the last two quarters of fiscal 2008, but will help our future growth in the hotel group segment," said Tofteland.

From a geographic perspective, 62% of revenues were generated in the Americas in the quarter; 24% in the EMEA region; and 14% in the Asia Pacific region. This compares to a respective mix of 60%, 26% and 14% in the prior year's quarter.

Six Month Results

SoftBrands revenues for the first half of fiscal 2008 were $45.9 million, compared with $46.4 million in the fiscal 2007 period. SoftBrands reported an operating loss of $2.0 million for the first six months of fiscal 2008, compared with an operating loss of $0.4 million for the first half of fiscal 2007. The company reported a net loss available to common shareholders in the fiscal 2008 period of $1.3 million, or a loss of $0.03 per diluted share, compared with a loss of $3.3 million, or a loss of $0.08 per diluted share in the fiscal 2007 period.

Cash and Liquidity

As of March 31, 2008, SoftBrands had $9.4 million in cash and cash equivalents, a decrease from $9.9 million at the end of the previous quarter. SoftBrands' total current assets, which includes accounts receivable, increased to $39.0 million from $31.9 million at the end of the previous quarter. Deferred revenue was $29.9 million at the end of the second quarter, an increase from $21.4 million at Dec. 31, 2007. SoftBrands said the significant increase in accounts receivable is primarily the result of large transactions near the end of the quarter and slower payment by certain hospitality customers. The increase in deferred revenues was the result of adding large customers at the end of the quarter, which will be accounted for under the contract method of accounting, and also the result of a large portion of maintenance renewals occurring in the first part of the calendar year.

Conference Call

SoftBrands will hold its second quarter earnings conference call at 5:00 pm Eastern Time today, May 8, 2008. Interested parties may listen to the call by dialing 800-573-4754 or international 617-224-4325 (passcode: 18819470). A live webcast will also be available at SoftBrands' website at http://www.softbrands.com/. A replay will be available approximately one hour after the conference call concludes and will remain available through May 15, 2008. The replay number is 888-286-8010 and international 617-801-6888 (passcode: 52855458). The webcast will be archived on SoftBrands' website for approximately one year.

Forward-Looking Statements

All statements other than historical facts included in this release regarding future operations are subject to the risks inherent in predictions and "forward-looking statements." These statements are based on the beliefs and assumptions of management of SoftBrands and on information currently available to us. Nevertheless, these forward-looking statements should not be construed as guarantees of future performance. They involve risks, uncertainties, and assumptions identified in filings by SoftBrands with the SEC, including:

-- Changes in the economy, natural disasters, disease or other events that affect the manufacturing and hospitality segments or the geographies we serve; -- Our increasing dependence upon our relationship with SAP; -- Our ability to continue to satisfy covenants with our lender; -- Our ability to timely complete and introduce, and the market acceptance of our new products; -- Our ability to properly document our sales consistent with the manner in which we recognize revenue; -- Our ability to manage international operations; -- Our ability to maintain and expand our base of clients on software maintenance programs; -- The effects of and our ability to rapidly adapt to changes in standards for operating systems, databases and other technologies; and -- Our ability to successfully upgrade our financial systems About SoftBrands

SoftBrands, Inc. is a leader in providing software solutions for businesses in the manufacturing and hospitality industries worldwide. The company has established a global infrastructure for distribution, development and support of enterprise software, and has approximately 5,000 customers in more than 100 countries actively using its manufacturing and hospitality products. SoftBrands, which has approximately 775 employees, is headquartered in Minneapolis, Minn., with branch offices in Europe, India, Asia, Australia and Africa. Additional information can be found at http://www.softbrands.com/.

SoftBrands, Inc. Consolidated Balance Sheets (In thousands, except share and per March 31, September 30, share data) 2008 2007 (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents $9,400 $8,682 Accounts receivable, net 22,814 15,683 Prepaid expenses and other current assets 6,829 4,474 Total current assets 39,043 28,839 Furniture, fixtures and equipment, net 2,292 2,602 Goodwill 37,211 37,271 Intangible assets, net 5,933 7,433 Other long-term assets 523 439 Total assets $85,002 $76,584 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term obligations $3,463 $3,510 Revolving loan 3,001 1,585 Accounts payable 4,354 4,554 Accrued expenses 8,407 8,329 Accrued restructuring costs 283 423 Deferred revenue 29,850 21,015 Other current liabilities 2,540 2,354 Total current liabilities 51,898 41,770 Long-term obligations 14,369 16,082 Other long-term liabilities 730 832 Total liabilities 66,997 58,684 Commitments and contingencies Stockholders' equity: Series A and undesignated preferred stock, $.01 par value; 10,647,973 shares authorized; no shares issued or outstanding - - Series B convertible preferred stock, $.01 par value; 4,331,540 shares authorized, issued and outstanding; liquidation value of $4,591 5,068 5,068 Series C-1 convertible preferred stock, $.01 par value; 18,000 shares authorized, issued and outstanding; liquidation value of $18,000 plus unpaid dividends of $364 and $368, respectively 18,000 18,000 Series D convertible preferred stock, $.01 par value; 6,673 shares authorized, 6,000 shares issued and outstanding; liquidation value of $6,000 plus unpaid dividends of $121 and $123, respectively 5,051 5,051 Common stock, $.01 par value; 110,000,000 shares authorized; 41,875,478 and 41,391,043 shares issued and outstanding, respectively 419 414 Additional paid-in capital 174,414 174,009 Accumulated other comprehensive loss (828) (811) Accumulated deficit (184,119) (183,831) Total stockholders' equity 18,005 17,900 Total liabilities and stockholders' equity $85,002 $76,584 SoftBrands, Inc. Consolidated Statements of Operations Three Months Ended Six Months Ended March 31, March 31, (In thousands, except per 2008 2007 2008 2007 share data) (Unaudited)(Unaudited)(Unaudited)(Unaudited) Revenues: Software licenses $4,012 $2,871 $7,009 $8,333 Maintenance and support 13,513 13,481 27,077 27,239 Professional services 4,691 4,407 9,617 9,345 Third-party software and hardware 1,439 666 2,201 1,503 Total revenues 23,655 21,425 45,904 46,420 Cost of revenues: Software licenses 590 222 1,178 1,229 Maintenance and support 4,151 4,193 8,156 8,099 Professional services 3,902 4,294 8,015 8,633 Third-party software and hardware 1,185 563 1,917 1,141 Total cost of revenues 9,828 9,272 19,266 19,102 Gross profit 13,827 12,153 26,638 27,318 Operating expenses: Selling and marketing 4,968 4,763 9,920 9,975 Research and product development 4,086 3,853 7,845 7,175 General and administrative 5,571 5,330 10,881 10,519 Restructuring related charges - - 25 - Total operating expenses 14,625 13,946 28,671 27,669 Operating loss (798) (1,793) (2,033) (351) Interest expense (496) (472) (988) (944) Other income, net 153 (89) 510 (40) Loss before provision for (benefit from) income taxes (1,141) (2,354) (2,511) (1,335) Provision for (benefit from) income taxes (1,186) 457 (2,223) 973 Net income (loss) 45 (2,811) (288) (2,308) Preferred stock dividends (485) (491) (976) (982) Net loss available to common shareholders $(440) $(3,302) $(1,264) $(3,290) Basic and diluted loss per common share $(0.01) $(0.08) $(0.03) $(0.08) Weighted-average common shares outstanding: Basic and diluted 41,827 41,192 41,623 41,121 SoftBrands, Inc. Supplemental Financial Information (Unaudited, in thousands) Revenues and Operating Income (Loss) Three Months Ended March 31, 2008 2007 % Change Operating Operating Operating Income Income Income Revenues (Loss) Revenues (Loss) Revenues (Loss) Manufacturing $11,916 $1,699 $12,119 $770 -1.7% 120.6% Hospitality 11,739 (2,497) 9,306 (2,563) 26.1% -2.6% Total $23,655 $(798) $21,425 $(1,793) 10.4% -55.5% Six Months Ended March 31, 2008 2007 % Change Operating Operating Operating Income Income Income Revenues (Loss) Revenues (Loss) Revenues (Loss) Manufacturing $24,476 $3,998 $24,840 $1,991 -1.5% 100.8% Hospitality 21,428 (6,031) 21,580 (2,342) -0.7% 157.5% Total $45,904 $(2,033) $46,420 $(351) -1.1% 479.2% Revenues by Segment and Type Three Months Ended March 31, 2008 2007 Manufacturing Hospitality Total Manufacturing Hospitality Total Software licenses $1,204 $2,808 $4,012 $1,233 $1,638 $2,871 Maintenance and support 7,817 5,696 13,513 7,884 5,597 13,481 Professional services 2,751 1,940 4,691 2,815 1,592 4,407 Third-party software and hardware 144 1,295 1,439 187 479 666 Total $11,916 $11,739 $23,655 $12,119 $9,306 $21,425 Six Months Ended March 31, 2008 2007 Manufacturing Hospitality Total Manufacturing Hospitality Total Software licenses $2,731 $4,278 $7,009 $2,682 $5,651 $8,333 Maintenance and support 15,913 11,164 27,077 15,957 11,282 27,239 Professional services 5,573 4,044 9,617 5,806 3,539 9,345 Third-party software and hardware 259 1,942 2,201 395 1,108 1,503 Total $24,476 $21,428 $45,904 $24,840 $21,580 $46,420 SoftBrands, Inc. Supplemental Financial Information (Unaudited, in thousands) Revenues by Segment and Geography Three Months Ended March 31, 2008 2007 Manufacturing Hospitality Total Manufacturing Hospitality Total Americas $7,077 $7,458 $14,535 $7,200 $5,685 $12,885 Europe, Middle East and Africa 3,312 2,390 5,702 3,421 2,219 5,640 Asia Pacific 1,527 1,891 3,418 1,498 1,402 2,900 Total $11,916 $11,739 $23,655 $12,119 $9,306 $21,425 Six Months Ended March 31, 2008 2007 Manufacturing Hospitality Total Manufacturing Hospitality Total Americas $14,671 $13,236 $27,907 $14,392 $13,995 $28,387 Europe, Middle East and Africa 6,661 4,334 10,995 7,115 4,610 11,725 Asia Pacific 3,144 3,858 7,002 3,333 2,975 6,308 Total $24,476 $21,428 $45,904 $24,840 $21,580 $46,420 Contact: Gregg Waldon Chief Financial Officer gregg.waldon@softbrands.com 612-851-1805 Susan Eich Vice President, Corporate Communications susan.eich@softbrands.com 612-851-6205

SoftBrands, Inc.

CONTACT: Gregg Waldon, Chief Financial Officer, +1-612-851-1805,
gregg.waldon@softbrands.com, or Susan Eich, Vice President, Corporate
Communications, +1-612-851-6205, susan.eich@softbrands.com, both of
SoftBrands, Inc.

Web site: http://www.softbrands.com/

RealNetworks Announces First Quarter 2008 ResultsAnnounces Intention to Spin off Games BusinessBoard Authorizes Share Repurchase Program

SEATTLE, May 8 /PRNewswire-FirstCall/ -- Digital entertainment services company RealNetworks(R), Inc. today announced results for the first quarter ended March 31, 2008.

Quarterly Highlights: -- Revenue of $147.6 million -- Net income of $2.4 million or $0.02 per diluted share -- Adjusted EBITDA of $19.9 million

"With solid first quarter performance, 2008 is off to a great start," said Rob Glaser, CEO of RealNetworks. "Our results exceeded our expectations across every major business."

In a separate release today, RealNetworks announced that it intends to spin off its games business and distribute shares in the newly created games company to its shareholders. Information on that announcement can be found at http://investor.realnetworks.com/games.

For the first quarter of 2008, revenue grew 14% to $147.6 million compared with $129.5 million for the first quarter of 2007. Revenue growth in the first quarter of 2008 compared with the first quarter of 2007 was due to: a 33% increase in Games revenue to $31.8 million; a 12% increase in Music revenue to $38.1 million; a 15% increase in Technology Products and Solutions revenue to $51.3 million, due in part to the acquisition of SonyNetServices and Exomi in 2007; and a 2% decline in Media Software and Services revenue to $26.4 million. Foreign currency exchange rate fluctuations positively affected 2008 first quarter revenue by approximately $2.0 million compared with the first quarter of 2007.

Net income for the first quarter of 2008 was $2.4 million or $0.02 per diluted share, compared with $40.0 million or $0.22 per diluted share in the first quarter of 2007. Results for the first quarter of 2007 included the final payment of $61 million related to Real's antitrust settlement and commercial agreements with Microsoft. Further information regarding these payments can be found in Real's SEC filings.

Adjusted EBITDA for the first quarter of 2008 was $19.9 million compared with $11.9 million in the first quarter of 2007. A reconciliation of GAAP net income to adjusted EBITDA is provided in the financial tables that accompany this release.

Gross margin was 62% in the first quarter of 2008 compared with 65% in the first quarter of 2007. Operating expenses for the first quarter of 2008 were $103.7 million, compared with $29.8 million in the first quarter of 2007. Operating expenses in the year-ago quarter were reduced by the $61 million payment related to the Microsoft settlement. Operating expenses in the first quarter of 2008 included $7.3 million of related party advertising in Rhapsody America.

As of March 31, 2008, Real had approximately $539.6 million in unrestricted cash, cash equivalents and short-term investments and $100 million of convertible debt.

Acquisition of Trymedia

In April 2008, Real acquired substantially all of the assets of Trymedia, a pioneer in casual games syndication from Macrovision for a total upfront cash payment of approximately $4 million. The acquisition is part of Real's strategy to build reach through syndicated distribution partnerships. With more than 250 partners including AOL, Yahoo!, Telstra and T-Online, Trymedia provides innovative syndication and commerce solutions that enable portals, online retailers and game developers to securely distribute PC games through physical and digital channels and maximize revenue throughout a game's lifetime.

Additional $50 million Stock Repurchase Program Authorized

In addition, the RealNetworks Board of Directors approved a share repurchase program of up to $50 million. Under the program, Real is authorized to repurchase up to $50 million of outstanding shares of common stock from time to time, depending on market conditions, share price and other factors. Repurchases may be made in the open market or through private transactions, in accordance with SEC requirements. Real may enter into a Rule 10(b)5-1 plan designed to facilitate the repurchase of all or a portion of the repurchase amount. Further, the repurchase program does not require Real to acquire a specific number of shares and may be terminated under certain conditions.

Real completed a previous $100 million stock repurchase program in the fourth quarter of 2007, repurchasing a total of approximately 13.9 million shares. Since the beginning of 2005, Real has repurchased approximately 44.2 million shares through its repurchase programs for $331.9 million.

Business Outlook

The following forward-looking statements reflect Real's expectations as of May 8, 2008. It is not Real's general practice to update these forward-looking statements until its next quarterly results announcement. For the full year 2008, Real expects revenue in the range of $628 million to $648 million, which includes approximately $12 million as a result of the acquisition of Trymedia. Real expects 2008 GAAP net income per share of $(0.05) to $0.00, and adjusted EBITDA of $62 million to $74 million, which reflects the higher-than-anticipated results of the first quarter offset by an approximate $5 million dilutive impact from the acquisition of Trymedia. Real's earnings per share guidance for 2008 includes tax expense of between $3 million and $6 million, and pretax income is expected to be between a loss of $(5) million and income of $6 million.

For the second quarter of 2008, Real expects revenue in the range of $151 million to $155 million, which includes approximately $4 million as a result of the acquisition of Trymedia. Real expects second quarter GAAP net income per share of $(0.04) to $0.00, and expects adjusted EBITDA of between $14 million and $17 million, which includes an approximate $2 million dilutive impact from the acquisition of Trymedia. Real's earnings per share guidance for the second quarter of 2008 includes tax expense in the range of $2 million to a benefit of $0.5 million, and pretax income is expected to be between a loss of $(3.5) million and a loss of $(0.5) million. For 2008, Real expects that small changes in its pre-tax earnings will result in large changes to its GAAP tax rate, which could significantly impact Real's quarterly GAAP results.

Webcast and Conference Call Information

The Company will host a webcast and conference call today at 5:00pm (Eastern)/ 2:00pm (Pacific). The live webcast featuring slides and audio, will be available at http://investor.realnetworks.com/. Listeners must use RealPlayer(R) to listen to the conference call, which can be downloaded for free at http://www.real.com/. The on-demand webcast will be available approximately two hours following the conclusion of the live webcast. Participants may access the conference call by dialing 800-857-5305

(773-681-5857 for international callers). The passcode is "First Quarter Earnings," and the leader is Rob Glaser. Telephonic replay will be available until 8:00 p.m. (Eastern), May 22, 2008. Dial In: 866-424-3998 (for domestic callers); and 203-369-0851 (for international callers).

RNWK-F For More Information Contact Press: Bill Hankes, (206) 892-6614, bhankes@real.com Financial: Marj Charlier, (206) 892-6718, mcharlier@real.com ABOUT REALNETWORKS

RealNetworks, Inc. delivers digital entertainment services to consumers via PC, portable music player, home entertainment system and mobile phone. Real created the streaming media category in 1995 and has continued to lead the market with pioneering products and services, including: RealPlayer(R), the first mainstream media player to enable one-click downloading and recording of Internet video; the award-winning Rhapsody(R) digital music service, which delivers more than 1 billion songs per year; RealArcade(R), one of the largest casual games destinations on the Web; and a variety of mobile entertainment services, such as ringback tones, offered to consumers through leading wireless carriers around the world. RealNetworks' corporate information is located at http://www.realnetworks.com/company.

About Non-GAAP Financial Measures

To supplement RealNetworks' condensed consolidated financial statements presented in accordance with GAAP, we present investors with certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA by reporting segment, adjusted cost of revenue and adjusted operating expenses.

-- Adjusted EBITDA and adjusted EBITDA by reporting segment consist of net income excluding the impact of the following: interest income, net; income taxes; depreciation; amortization (net of minority interest effect); stock-based compensation; expenses for employee stock options that were converted to cash rights; equity investment gains and losses from sales or impairments; income and expenses including charitable contributions related to the Microsoft agreements; and gain on initial formation of Rhapsody America. -- Adjusted cost of revenue consists of GAAP cost of revenue excluding stock-based compensation expenses, and acquisition costs including amortization of intangible assets (net of minority interest effect) and expenses for employee stock options that were converted to cash rights. -- Adjusted operating expenses consist of GAAP operating expenses excluding stock-based compensation expenses, antitrust litigation expenses (benefits) and acquisition costs including amortization of intangible assets (net of minority interest effect) and expenses for employee stock options that were converted to cash rights.

RealNetworks believes that the presentation of adjusted EBITDA, adjusted EBITDA by reporting segment, adjusted cost of revenue and adjusted operating expenses provides important supplemental information to management and investors regarding financial and business trends relating to the company's financial condition and results of operations. Management believes that the use of these non-GAAP financial measures provides consistency and comparability with our past financial reports, and also facilitates comparisons with other companies in our industry, many of which use similar non-GAAP financial measures to supplement their GAAP results. Management has historically used these non-GAAP measures when evaluating operating performance because the inclusion or exclusion of the items described above provides additional useful measures of our operating results and facilitates comparisons of our core operating performance against prior periods and our business model objectives. We have chosen to provide this information to investors in order to enable them to perform additional analyses of past, present and future operating performance, to enable them to compare us to other companies, and as a supplemental means to evaluate our ongoing operations. Externally, we believe that adjusted EBITDA continues to be useful to investors in their assessment of our operating performance and the valuation of our company.

Internally, adjusted EBITDA, adjusted EBITDA by reporting segment, adjusted cost of revenue, and adjusted operating expenses are significant measures used by management for purposes of:

-- supplementing the financial results and forecasts reported to our board of directors; -- evaluating the operating performance of our company which includes direct and incrementally controllable revenue and costs of operations, but excludes items considered by management to be either non-cash or non-operating such as interest income and expense, stock-based compensation, tax expense, deferred tax valuation allowance changes, depreciation and amortization; -- managing and comparing performance internally across our businesses and externally against our peers; -- establishing internal operating budgets; and -- evaluating and valuing potential acquisition candidates.

Adjusted EBITDA, adjusted EBITDA by reporting segment, adjusted cost of revenue, and adjusted operating expenses are not calculated in accordance with GAAP, and should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of our business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of RealNetworks' results as reported under GAAP. We expect to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. Some of the limitations in relying on our non-GAAP financial measures are:

-- Adjusted EBITDA and adjusted EBITDA by reporting segment are measures which we have defined for internal and investor purposes and are not in accordance with GAAP. A further limitation associated with these measures is that they do not include all costs and income that impact our net income and net income per share. We compensate for these limitations by prominently disclosing GAAP net income, which we believe is the most directly comparable GAAP measure, and providing investors with reconciliations from GAAP net income to adjusted EBITDA and adjusted EBITDA by reporting segment. -- Adjusted cost of revenue is limited in that it does not include stock-based compensation expenses, and certain costs associated with our acquisitions. Adjusted operating expenses are limited in that they do not include stock-based compensation expenses, antitrust litigation expenses (benefit) and certain costs associated with our acquisitions. We compensate for these limitations by prominently disclosing the reported GAAP results and providing investors with a reconciliation from GAAP to the adjusted amount.

In the financial tables of our earnings press release, RealNetworks has included reconciliations of GAAP net income to adjusted EBITDA, income before income taxes to adjusted EBITDA by reporting segment, GAAP cost of revenue to adjusted cost of revenue and GAAP operating expenses to adjusted operating expenses for the relevant periods.

Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to Real's announced intention to spin off its games business and distribute

shares in the games business to Real's shareholders and statements relating to Real's future revenue, GAAP net income (loss) per share, adjusted EBITDA, pre-tax income, income tax expense, interest income, depreciation and amortization and stock-based compensation expense. Actual results may differ materially from the results predicted. Factors that could cause actual results to differ from the results predicted include: risks associated with the ability to complete the proposed spin off transactions and their impact on the games business and Real's remaining businesses; potentially large changes in Real's GAAP tax rate that could result from even small changes in Real's pretax earnings; development and consumer acceptance of legal online music distribution services generally and RealNetworks' content services in particular because these are relatively new and unproven business models and markets; risks associated with the creation and operation of Rhapsody America; risks associated with acquisitions generally, and the acquisitions of WiderThan, Sony NetServices, GameTrust, Trymedia and Exomi in particular, including the risks of integration, unknown liabilities and operations in new markets and geographies; the potential that we will be unable to continue to enter into commercially attractive agreements with third parties for the provision of compelling content for our subscription service offerings; the emergence of new entrants and competition in the market for digital media subscription offerings and online music sales; the impact on our gross margins of content costs and from the mix of subscribers to subscription offerings with higher content costs than others; competitive risks, including competing technologies, products and services, and the competitive activities of our larger competitors, some of which have strong ties to streaming media users through other products; risks associated with the introduction of new products and services; risks inherent in strategic relationships, especially with competitors, and technology and service integration efforts; and risks relating to the ability of Real's strategic partners to generate subscribers for Real's digital content services. More information about potential risk factors that could affect RealNetworks' business and financial results is included in RealNetworks' annual report on Form 10-K for the most recent year ended December 31, and its quarterly reports on Form 10-Q and from time to time in other reports filed by RealNetworks with the Securities and Exchange Commission. More information about risks relating to the potential spin off of the games business is listed in the safe harbor for forward looking statements contained in the press release announcing the proposed spin off transaction as well as in our Form 10-Q to be filed for the quarter ended March 31, 2008. The preparation of our financial statements and forward-looking financial guidance requires us to make estimates and assumptions that affect the reported amount of assets and liabilities and the reported amounts of revenues and expenses during the reported period. Actual results may differ materially from these estimates under different assumptions or conditions. The Company assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates.

RealNetworks, Rhapsody, RealPlayer and RealArcade are trademarks or registered trademarks of RealNetworks, Inc. or its subsidiaries. All other companies or products listed herein are trademarks or registered trademarks of their respective owners.

RealNetworks, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) Quarters Ended March 31, 2008 2007 (in thousands, except per share data) Net revenue $147,563 $129,472 Cost of revenue 55,393 45,943 Gross profit 92,170 83,529 Operating expenses: Research and development 25,006 23,479 Sales and marketing 53,596 49,700 Advertising with related party (A) 7,340 - General and administrative 17,084 17,354 Restructuring charge 686 - Subtotal operating expenses 103,712 90,533 Antitrust litigation benefit, net (B) - (60,747) Total operating expenses 103,712 29,786 Operating (loss) income (11,542) 53,743 Other income (expenses): Interest income, net 4,958 9,102 Equity in net loss of investments (91) (132) Minority interest in Rhapsody America (C) 8,615 - Gain on sale of interest in Rhapsody America (D) 3,726 - Other income 768 467 Other income, net 17,976 9,437 Income before income taxes 6,434 63,180 Income taxes (4,008) (23,219) Net income $2,426 $39,961 Basic net income per share $0.02 $0.25 Diluted net income per share $0.02 $0.22 Shares used to compute basic net income per share 142,491 161,350 Shares used to compute diluted net income per share 154,736 178,053 (A) Consists of advertising purchased by Rhapsody America from MTV Networks (MTVN). MTVN has a 49% ownership interest in Rhapsody America. (B) Consists of amounts received under the Settlement and Commercial agreements with Microsoft, net of certain legal fees, personnel costs, public relations and other professional service fees incurred related to antitrust complaints against Microsoft, including proceedings in the European Union. (C) Minority interest reflects MTVN's 49% ownership share in the losses of Rhapsody America. (D) Consists of gains realized from MTVN's note payments to Rhapsody America. RealNetworks, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) March 31, December 31, 2008 2007 (in thousands) ASSETS Current assets: Cash and cash equivalents $478,737 $476,697 Short-term investments 60,892 79,932 Trade accounts receivable, net 72,718 84,674 Deferred costs, current portion 7,149 6,408 Prepaid expenses and other current assets 29,760 33,845 Total current assets 649,256 681,556 Equipment, software, and leasehold improvements, at cost: Equipment and software 116,899 109,621 Leasehold improvements 30,789 30,632 Total equipment, software, and leasehold improvements 147,688 140,253 Less accumulated depreciation and amortization 89,401 83,756 Net equipment, software, and leasehold improvements 58,287 56,497 Restricted cash equivalents 15,518 15,509 Equity investments 9,125 9,976 Other assets 13,909 10,161 Deferred tax assets, net, non-current portion 41,176 40,913 Other intangible assets, net 97,904 107,677 Goodwill 347,848 353,153 Total assets $1,233,023 $1,275,442 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $46,228 $56,160 Accrued and other liabilities 100,800 114,136 Deferred revenue, current portion 40,308 39,564 Related party payable (A) 8,299 17,241 Convertible debt 100,000 100,000 Accrued loss on excess office facilities, current portion 4,171 3,389 Total current liabilities 299,806 330,490 Deferred revenue, non-current portion 1,874 2,663 Accrued loss on excess office facilities, non-current portion 5,688 7,311 Deferred rent 4,637 4,518 Deferred tax liabilities, net, non-current portion 20,227 22,060 Other long-term liabilities 10,402 13,683 Total liabilities 342,634 380,725 Minority interest (B) 14,678 19,613 Shareholders' equity 875,711 875,104 Total liabilities and shareholders' equity $1,233,023 $1,275,442 (A) Related party payable reflects amounts owed to MTVN. (B) Minority interest reflects MTVN's 49% ownership in the net assets of Rhapsody America. RealNetworks, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Quarters Ended March 31, 2008 2007 (in thousands) Cash flows from operating activities: Net income $2,426 $39,961 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 12,971 9,933 Stock-based compensation 5,489 5,685 Loss on disposal of equipment, software, and leasehold improvements 75 41 Equity in net loss of investments 91 132 Excess tax benefit from stock option exercises (50) (294) Accrued loss on excess office facilities (841) (943) Deferred income taxes (939) (3,944) Minority interest in Rhapsody America (8,615) - Gain on sale of interest in Rhapsody America (3,726) - Other 32 26 Net change in certain assets and liabilities, net of acquisitions (18,202) 11,492 Net cash (used in) provided by operating activities (11,289) 62,089 Cash flows from investing activities: Purchases of equipment, software, and leasehold improvements (7,203) (3,839) Purchases of short-term investments (49,798) (55,432) Proceeds from sales and maturities of short-term investments 68,838 57,124 Purchases of intangible assets - (2,038) Proceeds from the sales of equity investments 350 - Payment of acquisition costs, net of cash acquired (6,011) - Decrease (increase) in restricted cash equivalents (9) 1,800 Net cash provided by (used in) investing activities 6,167 (2,385) Cash flows from financing activities: Net proceeds from sales of common stock under employee stock purchase plan and exercise of stock options 1,072 3,776 Net proceeds from sales of interest in Rhapsody America 7,406 - Excess tax benefit from stock option exercises 50 294 Repurchase of common stock - (78,481) Net cash provided by (used in) financing activities 8,528 (74,411) Effect of exchange rate changes on cash (1,366) 687 Net increase (decrease) in cash and cash equivalents 2,040 (14,020) Cash and cash equivalents, beginning of period 476,697 525,232 Cash and cash equivalents, end of period $478,737 $511,212 RealNetworks, Inc. and Subsidiaries Supplemental Financial Information (Unaudited) 2008 2007 Q1 Q4 Q3 Q2 Q1 (in thousands) Net Revenue by Line of Business: Consumer products and services (A) $96,286 $96,998 $91,824 $87,115 $85,040 Technology products and solutions (B) 51,277 59,884 53,271 49,056 44,432 Total net revenue $147,563 $156,882 $145,095 $136,171 $129,472 Consumer Products and Services: Subscriptions (C) $55,193 $54,784 $55,551 $51,091 $51,490 Media properties (D) 18,702 20,438 16,071 17,748 15,932 E-commerce and other (E) 22,391 21,776 20,202 18,276 17,618 Total consumer products and services revenue $96,286 $96,998 $91,824 $87,115 $85,040 Consumer Products and Services: Music (F) $38,079 $40,540 $37,658 $36,801 $34,127 Media software and services (G) 26,409 25,572 25,346 25,419 27,011 Games (H) 31,798 30,886 28,820 24,895 23,902 Total consumer products and services revenue $96,286 $96,998 $91,824 $87,115 $85,040 Net Revenue by Geography: United States $99,169 $96,806 $91,281 $88,035 $84,554 Rest of world 48,394 60,076 53,814 48,136 44,918 Total net revenue $147,563 $156,882 $145,095 $136,171 $129,472 Subscribers (presented as greater than)*: Total subscribers (I) 32,200 30,200 29,250 26,150 24,550 Technology products and solutions application services subscribers (J) 29,500 27,600 26,600 23,600 21,900 Music subscribers: Consumer music subscribers (K) 1,875 1,900 1,925 1,850 1,875 Technology products and solutions application services music subscribers (L) 800 825 825 825 800 Total Music Subscribers** 2,675 2,725 2,750 2,675 2,675 * Beginning the quarter ended December 31, 2006, total subscribers reflect the inclusion of subscribers related to wireless carrier application subscription services. Total music subscribers includes subscribers from our technology products and solutions application subscription services, such as music-on-demand, as well as our consumer music services, such as Rhapsody and Premium Radio. Although music-on-demand subscribers are included in the technology products and solutions application services subscribers and total music subscribers, these subscribers are only counted once as part of our total subscribers. ** Prior periods have been changed to reflect current period presentation. Totals may not equal due to rounding convention. (A) Revenue is derived from consumer digital media subscription services, RealPlayer Plus and related products, sales and distribution of third party software products, content such as games and music and advertising. (B) Revenue is derived from carrier application services such as ringback tones and music-on-demand, media delivery system software, support and maintenance services, broadcast hosting services and consulting services. (C) Revenue is derived from consumer digital media subscription services including: SuperPass, RadioPass, Rhapsody, GamePass and stand-alone subscriptions. (D) Revenue is derived from advertising and through the distribution of third party products. (E) Revenue is derived from RealPlayer Plus and related products, sales of third party software products, and content such as games and music. (F) Revenue is derived from Rhapsody and RadioPass subscription services and sales of music content, advertising generated from our music and music related websites and the distribution of third party products. (G) Revenue is derived from SuperPass subscriptions, RealPlayer Plus and related products, stand-alone subscription services, sales and distribution of third-party software products and advertising related to our non-game and non-music related web properties. (H) Revenue is derived from GamePass subscription service, sales of games, advertising generated from our games and game-related websites and the distribution of third-party products. (I) Total subscribers include technology products and solutions application services and consumer subscription services including: ringback tones, music-on-demand, video-on-demand, Rhapsody, Rhapsody- to-Go, RadioPass, SuperPass, GamePass, and stand-alone subscriptions. (J) Technology products and solutions application service subscribers include: ringback tones, music-on-demand and video-on-demand. (K) Consumer music subscribers include: Rhapsody, Rhapsody-to-Go, premium radio, and music-on-demand. (L) Technology products and solutions application services music subscribers include subscribers from application services including music-on-demand. RealNetworks, Inc. and Subsidiaries Supplemental Financial Information (Unaudited) Reconciliation of GAAP net income to adjusted EBITDA is as follows: Quarters Ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2008 2007 2007 2007 2007 (in thousands) Net income in accordance with GAAP $2,426 $2,685 $4,342 $1,327 $39,961 Interest income, net (4,958) (6,417) (7,290) (8,065) (9,102) Stock-based compensation 5,489 6,627 5,984 5,622 5,685 Loss (gain) on equity investments - 34 - (132) - Conversion of WiderThan stock options to a cash equivalent 89 190 413 614 845 Depreciation and amortization 6,282 5,703 6,210 5,661 4,621 Acquisitions related intangible asset amortization (net of minority interest effect) 6,315 6,639 5,583 5,311 5,312 Gain on initial formation of Rhapsody America - - (3,866) - - Expenses (benefit) related to antitrust litigation: Income - - - - (61,000) Expenses 202 179 201 202 471 Charitable contributions - - - - 1,921 Income taxes 4,008 47 2,012 2,178 23,219 Adjusted EBITDA $19,853 $15,687 $13,589 $12,718 $11,933 RealNetworks, Inc. and Subsidiaries Segment Results of Operations (Unaudited) Quarter Ended March 31, 2008 Music Consumer TPS Grand (A) (B) (C) Other Total (in thousands) Net revenue $38,079 $58,207 $51,277 $- $147,563 Cost of revenue 21,519 12,613 21,261 - 55,393 Gross profit 16,560 45,594 30,016 - 92,170 Gross margin 43% 78% 59% - 62% Operating expenses: Advertising with related party 7,340 - - - 7,340 Restructuring charge - - - 686 686 Other operating expenses 25,631 37,632 32,186 237 95,686 Total operating expenses 32,971 37,632 32,186 923 103,712 Income (loss) from operations (16,411) 7,962 (2,170) (923) (11,542) Other income (expenses): Interest income, net - - - 4,958 4,958 Minority interest 8,615 - - - 8,615 Equity in net loss of investments - - - (91) (91) Gain on sale of interest in Rhapsody America 3,726 - - - 3,726 Other income - - - 768 768 Other income, net 12,341 - - 5,635 17,976 Income (loss) before income taxes $(4,070) $7,962 $(2,170) $4,712 $6,434

Reconciliation of segment GAAP income before taxes to segment adjusted EBITDA is as follows:

Income (loss) before income taxes $(4,070) $7,962 $(2,170) $4,712 $6,434 Interest income, net - - - (4,958) (4,958) Stock-based compensation 1,079 1,836 2,574 - 5,489 Conversion of WiderThan stock options to a cash equivalent - - 89 - 89 Acquisitions related intangible asset amortization (D) 384 805 5,126 - 6,315 Gain on initial formation of Rhapsody America - - - - - Depreciation and amortization (D) 1,410 2,041 2,831 - 6,282 Expenses (benefit) related to antitrust litigation: Income - - - - - Expenses - - - 202 202 Charitable contributions - - - - - Adjusted EBITDA $(1,197) $12,644 $8,450 $(44) $19,853 Quarter Ended March 31, 2007 Music Consumer TPS Grand (A) (B) (C) Other Total (in thousands) Net revenue $34,127 $50,913 $44,432 $- $129,472 Cost of revenue 18,875 9,128 17,940 - 45,943 Gross profit 15,252 41,785 26,492 - 83,529 Gross margin 45% 82% 60% - 65% Operating expenses: Other operating expenses 24,949 32,907 30,538 (58,608) 29,786 Total operating expenses 24,949 32,907 30,538 (58,608) 29,786 Income (loss) from operations (9,697) 8,878 (4,046) 58,608 53,743 Other income (expenses): Interest income, net - - - 9,102 9,102 Equity in net loss of investments - - - (132) (132) Other income - - - 467 467 Other income, net - - - 9,437 9,437 Income (loss) before income taxes $(9,697) $8,878 $(4,046) $68,045 $63,180

Reconciliation of segment GAAP income before taxes to segment adjusted EBITDA is as follows:

Income (loss) before income taxes $(9,697) $8,878 $(4,046) $68,045 $63,180 Interest income, net - - - (9,102) (9,102) Stock-based compensation 1,040 2,256 2,389 - 5,685 Conversion of WiderThan stock options to a cash equivalent - - 845 - 845 Acquisitions related intangible asset amortization (D) 22 723 4,567 - 5,312 Depreciation and amortization (D) 1,260 1,417 1,944 - 4,621 Expenses (benefit) related to antitrust litigation: Income - - - (61,000) (61,000) Expenses - - - 471 471 Charitable contributions - - - 1,921 1,921 Adjusted EBITDA $(7,375) $13,274 $5,699 $335 $11,933 Note: Cost of revenue and operating expenses of the segments shown above include costs directly attributable to those segments and an allocation of general and administrative and other common or shared costs. (A) The Music segment primarily includes revenue and related costs from: Rhapsody America's Rhapsody and Radiopass subscription services; sales of digital music content through the Rhapsody service and the RealPlayer music store; and advertising from music websites. (B) The Consumer segment primarily includes revenue and related costs from: the sale of individual games through our RealArcade service and our Games related websites; our GamePass and FunPass subscription service; our SuperPass and stand-alone premium video subscription services; RealPlayer Plus and related products; sales and distribution of third-party software products; and all advertising other than that related directly to our Music businesses. (C) TPS comprises our Technology Products and Solutions segment which includes revenue and related costs from: sales of ringback tone, music-on-demand, video-on-demand, messaging, and information services; sales of media delivery system software, including Helix system software and related authoring and publishing tools, both directly to customers and indirectly through original equipment manufacturer (OEM) channels; support and maintenance services sold to customers who purchase software products; broadcast hosting services; and consulting and professional services that are offered to customers. (D) Net of minority interest effect within our Music segment. RealNetworks, Inc. and Subsidiaries Supplemental Financial Information (Unaudited) Quarter Ended March 31, 2008 WiderThan Acquis- Options itions Conv- Related erted Anti- Stock- Intangible to a trust Based Asset Cash Litiga- As Compen- Amortiz- Equiv- tion Reported sation ation (A) alent Related Adjusted (in thousands) Expenses in accordance with GAAP Cost of revenue $55,393 $(234) $(2,315) $(21) $- $52,823 Operating expenses: Research and development $25,006 $(1,913) $- $(46) $- $23,047 Sales and marketing 53,596 (1,908) (4,000) (22) - 47,666 Advertising with related party 7,340 - - - - 7,340 General and administrative 17,084 (1,434) - - (202) 15,448 Restructuring charge 686 - - - - 686 Total adjusted operating expenses, net $103,712 $(5,255) $(4,000) $(68) $(202) $94,187 Quarter Ended March 31, 2007 WiderThan Acquis- Options itions Conv- Related erted Anti- Stock- Intangible to a trust Based Asset Cash Litiga- As Compen- Amortiz- Equiv- tion Reported sation ation alent Related Adjusted (in thousands) Expenses in accordance with GAAP Cost of revenue $45,943 $(159) $(2,144) $(127) $- $43,513 Operating expenses: Research and development $23,479 $(1,772) $- $(151) $- $21,556 Sales and marketing 49,700 (2,387) (3,168) (349) - 43,796 General and administrative 17,354 (1,367) - (218) (2,139) 13,630 Antitrust litigation benefit, net (60,747) - - - 60,747 - Total adjusted operating expenses, net $29,786 $(5,526) $(3,168) $(718) $58,608 $78,982 (A) - Net of minority interest effect. RealNetworks, Inc. and Subsidiaries Supplemental Financial Information

A reconciliation of GAAP net income guidance for the quarter ending June 30, 2008 and the full year ending December 31, 2008 to adjusted EBITDA guidance is as follows:

Quarter Ending Year Ending June 30, 2008 December 31, 2008 Low High Low High Net income in accordance with GAAP $(5.4) $- $(8.0) $- Interest income, net (3.2) (3.4) (13.0) (14.0) Stock-based compensation and conversion of WiderThan stock options to a cash equivalent 5.6 6.5 22.0 26.0 Depreciation and amortization, including acquisitions related intangible asset amortization (net of minority interest effect) 15.0 14.4 58.0 56.0 Income taxes 2.0 (0.5) 3.0 6.0 Total adjusted EBITDA $14.0 $17.0 $62.0 $74.0

RealNetworks, Inc.

CONTACT: press, Bill Hankes, +1-206-892-6614, bhankes@real.com; or
financial, Marj Charlier, +1-206-892-6718, mcharlier@real.com, both for
RealNetworks, Inc.

Web site: http://www.realnetworks.com/

KEMET Receives Northrop Grumman's Gold Supplier Award

GREENVILLE, S.C., May 8 /PRNewswire-FirstCall/ -- KEMET Corporation is proud to announce that it has been awarded Northrop Grumman's Gold Supplier Award. This coveted award recognizes KEMET for demonstrated excellence in product quality, on-time delivery, competitive pricing, and other value-added services in 2007. The award was presented at Northrop Grumman's Space Technology sector's annual Supplier Day conference in Long Beach, California.

"We are delighted to receive this award and to be recognized by Northrop Grumman as one of their most trusted and valued supplier partners," said KEMET CEO Per-Olof Loof. "Our company's goal is to become The Capacitance Company- the first company any electronics manufacturer calls for everything from products to design collaboration to custom development. This means we have to be the number one provider of capacitance, regardless of technology, chemistry, form factor or manufacturing process. It also means setting the standard in product and service excellence-working in partnership with customers to build the products and technologies of tomorrow while providing the service that differentiates us from the rest of the industry. Receiving prestigious awards such as the Northrop Grumman Gold Supplier Award helps us be sure that we are on the right track."

Northrop Grumman Space Technology's rigorous Supplier Rating Program requires suppliers and subcontractors to participate in an ongoing performance assessment. Gold suppliers are selected on the basis of a scorecard that rates each supplier's management, quality, technical, schedule, and financial performance.

About Northrop Grumman

Northrop Grumman Corporation is a $32 billion global defense and technology company whose 120,000 employees provide innovative systems, products, and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.

About KEMET

KEMET Corporation applies world-class service and quality to deliver industry-leading, high-performance capacitance solutions to its customers around the world. KEMET offers the world's most complete line of surface-mount and through-hole capacitor technologies across tantalum, ceramic, film, aluminum, electrolytic, and paper dielectrics. KEMET's common stock is listed on The New York Stock Exchange under the symbol KEM. Additional information about KEMET can be found at http://www.kemet.com/.

Contact: Dean W. Dimke Director of Corporate and Marketing Communication deandimke@kemet.com 864-228-4448 Travis Ashburn Product Line Manager Specialty Products, Ceramics TravisAshburn@kemet.com 864-228-4320

KEMET Corporation

CONTACT: Travis Ashburn, Product Line Manager, Specialty Products,
Ceramics, +1-864-228-4320, TravisAshburn@kemet.com, or Dean W. Dimke, Director
of Corporate and Marketing Communication, +1-864-228-4448,
deandimke@kemet.com

Web site: http://www.kemet.com/

Canadian Native Jayde Nicole Is Playboy's 2008 Playmate of the Year

LOS ANGELES, May 8 /PRNewswire/ -- Tell the band to strike up "O Canada" -- Ontario's own Jayde Nicole, 22, is Playboy's 2008 Playmate of the Year. The brunette bombshell is featured in a 10-page nude pictorial in Playboy's June issue (on newsstands and at http://www.playboydigital.com/ Friday, May 9). Along with her title, Jayde receives $100,000 in prize money and a 2008 Cadillac CTS. She is Canada's first Playmate of the Year since 1982 when Shannon Tweed was honored with the title. A one-hour special of the Playboy Playmate of the Year announcement will air May 18, exclusively on Playboy TV.

Jayde's intoxicating beauty and girl-next-door appeal has made her a local celebrity in her hometown of Port Perry, Ontario, about an hour outside of Toronto. Jayde owns a modeling agency called Jayde Nicole Inc. that she founded in 2005 and had been managing the day-to-day operations of the agency before catching Playboy's eye and landing the title of Miss January 2007.

Playboy's newest Playmate of the Year graduated with honors from Port Perry High School in 2004, and attended George Brown College in Toronto where she studied hotel and resort management.

Jayde is currently writing her own fitness and beauty book and has just finished filming a pilot for a reality television show about her life. She has also appeared in Today's Bride magazine and on the cover of American Curves. Last year she organized her second annual charity car wash, which helped raise money for the RED campaign to help fight AIDS in Africa.

Jayde is one of four Ontario-born Playmates, including Miss April 2004 Krista Kelly (Brampton), Miss June 2003 Tailor James (Mississauga), and Miss January 1990 Peggy McIntaggart (Midland). Playboy named its first ever Playmate of the Year, Ellen Stratton, in 1960.

Playboy

CONTACT: Tina Manzo, +1-312-373-2436, cmanzo@playboy.com, or Lauren
Melone, +1-212-216-4976, lmelone@playboy.com, both of Playboy

Web site: http://www.playboydigital.com/

Liberty Media Reports Record First Quarter Financial ResultsInitiates Trading of Liberty Entertainment Tracking Stock and Newly Reclassified Liberty Capital Tracking StockStrong Revenue and Operating Cash Flow Growth at both Liberty Interactive Group and Liberty Entertainment Group

ENGLEWOOD, Colo., May 8 /PRNewswire-FirstCall/ -- Liberty Media Corporation ("Liberty") today reported first quarter results for Liberty Interactive Group, Liberty Entertainment Group and Liberty Capital Group. Financial highlights for the quarter included:

-- Completed News Corp deal and subsequently issued Liberty Entertainment tracking stock and reclassified Liberty Capital tracking stock. -- Liberty Interactive Group's revenue increased 10% and operating cash flow increased 5%. -- QVC's consolidated revenue increased 5% to $1.77 billion and operating cash flow increased 3% to $387 million. -- Liberty Entertainment Group's revenue increased 11% and operating cash flow increased 17%.

"Liberty Media's transformation continues as we focus on building long term shareholder value by bringing a disciplined operating and creative financial approach to managing our assets," stated Liberty President and CEO Greg Maffei. "The first quarter was a period of intense activity for the company. We completed the News Corp transaction, acquiring a major position in the leading satellite company, DIRECTV. Subsequently, we issued the new Liberty Entertainment tracking stock, with our DIRECTV stake and Starz Entertainment as the core attributed assets. Then, in early April, we increased our DIRECTV position by purchasing additional shares in a creative transaction at attractive terms."

On February 27th, we completed the exchange of Liberty's 16% stake in News Corp for a subsidiary of News Corp that holds a 41% stake in DIRECTV, regional sports networks in Denver, Pittsburgh and Seattle, and $465 million of cash. On March 4th, Liberty issued the Liberty Entertainment Group tracking stock which has attributed to it Liberty's interest in The DIRECTV Group, Inc. ("DIRECTV"), three regional sports networks ("Liberty Sports Group"), Starz Entertainment, LLC, FUN Technologies, Inc., GSN, LLC and WildBlue Communications, Inc. And on April 2nd, Liberty Entertainment purchased an additional 78.3 million shares of DIRECTV, increasing its ownership to 48%. To fund the purchase Liberty borrowed $1.98 billion against collateral including a newly executed equity collar on 110 million DIRECTV common shares.

Also during the quarter, Liberty modified certain terms of its 0.75% Time Warner Exchangeable Senior Debentures due 2023 to induce holders not to exercise their March 2008 put rights. The modified terms include (i) deferring Liberty's ability to redeem the debentures until April 5, 2013; (ii) committing to pay holders in cash upon maturity or redemption, rather than in Time Warner Inc. stock; and (iii) increasing the rate of interest to 3.125% after March 30, 2008. In March, Liberty repurchased $486.1 million of the $1.75 billion issue with funds drawn on an existing borrowing facility. The residual $1.26 billion of debentures remains outstanding under the revised terms and are attributed to Liberty Capital.

LIBERTY INTERACTIVE GROUP -- The businesses and assets attributed to Liberty Interactive Group are engaged in, or are ownership interests in companies that are engaged in, video and on-line commerce, and currently include Liberty's subsidiaries QVC, Provide Commerce, Backcountry.com, Inc., Bodybuilding.com, LLC and BUYSEASONS, Inc. and its 30% interest in IAC/InterActiveCorp, 25% interest in Expedia and 20% interest in GSI Commerce. Liberty has identified wholly-owned QVC, Inc. as the principal operating segment of Liberty Interactive Group.

Liberty Interactive Group's revenue increased 10% and operating cash flow increased 5% for the quarter. The increases are primarily due to growth at QVC and Provide Commerce and the addition of Backcountry.com, Inc. and Bodybuilding.com, LLC which were acquired in June 2007 and December 2007, respectively.

QVC

QVC's consolidated revenue increased 5% in the first quarter to $1.77 billion and operating cash flow increased 3% to $387 million.

"While we demonstrated slight revenue and operating cash flow improvement in a challenging retail environment, our results this quarter remained below QVC targets," said Mike George, QVC President and CEO. "However, our disciplined approach to gross margins coupled with ardent expense management allowed us to maintain strong domestic cash flow margins. We continue to invest in attracting new customers and pleasing existing customers by expanding and upgrading products, enhancing QVC.com and showcasing products in an entertaining format. On the international side of our business, we are pleased with the progress we made as we generated sales growth in all markets. The UK continues its positive revenue and operating cash flow momentum of late last year, we have begun to anniversary the impact of the heightened regulatory focus on health and beauty products in Japan and we remain confident in the operational initiatives we are undertaking in Germany."

QVC's domestic revenue modestly increased in the first quarter to $1.18 billion and operating cash flow increased 1% to $281 million compared to the first quarter of 2007. The mix of product sold shifted from home to jewelry and accessories. The average selling price increased 4% from $46.04 to $48.09 while total units shipped declined to 26.9 million from 27.8 million. Returns as a percent of gross product revenue increased primarily due to higher than anticipated returns for the fourth quarter of 2007 which was provided for in the first quarter. QVC.com sales as a percentage of domestic sales grew from 23% in the first quarter of 2007 to 24% in the first quarter of 2008. The domestic operating cash flow margin remained constant at 24%.

QVC's international revenue increased 15% in the first quarter to $589 million due to favorable foreign currency exchange rates, greater sales to existing subscribers in Germany, and subscriber growth in the U.K. and Japan. Excluding the effect of exchange rates, international revenue increased in each of the international markets and 5% overall. International operating cash flow increased 10% in the first quarter from $96 million to $106 million. International operating cash flow margins declined 80 basis points primarily due to lower gross margins as a result of lower initial product margin and higher commissions expense as a percentage of net revenue due to new fixed-rate agreements in the U.K. and Japan. Initial product margins were lower in the home and jewelry product categories. Excluding the effect of exchange rates, QVC's international operating cash flow decreased 0.2% in the first quarter.

The U.K. continued to show positive results during the quarter with revenue increasing 11% in local currency on an 11% increase in units shipped. QVC Japan's net revenue increased 4% in local currency during the first quarter 2008, the first increase since the first quarter of 2007. Beginning in March 2007, QVC Japan faced a heightened regulatory focus on health and beauty product presentations. As QVC anniversaries the impact to the business and continues to successfully shift product away from these categories and into jewelry and fashion, it has shown productivity gains in those areas. QVC Germany experienced local currency revenue gains in the home and accessories product categories for the quarter resulting in a 1% increase in net revenue. QVC Germany's average selling price in local currency and units shipped increased in the period. QVC Germany experienced a lower gross margin percentage primarily due to a lower initial product margin as a greater percentage of sales shifted to lower margin home products and the home product margin declined. Gross margins were also negatively affected, to a lesser extent, by a higher inventory obsolescence provision.

QVC's outstanding bank debt was $4.49 billion at March 31, 2008. E-Commerce Businesses

Liberty Interactive's other e-commerce businesses, which include Backcountry.com, Provide Commerce, Bodybuilding.com and BUYSEASONS, had strong financial results in the first quarter and continue to grow at a rapid pace. In the aggregate, the e-commerce businesses experienced revenue and operating cash flow growth of 113% and 144%, respectively, primarily due to the previously mentioned acquisitions. Assuming the businesses were all consolidated on January 1, 2007, revenue and operating cash flow growth of these businesses would have been 37% and 55%, respectively.

Share Repurchases

During the first quarter, Liberty repurchased 4.7 million shares of Series A Liberty Interactive common stock at an average cost per share of $17.56 for total cash consideration of $83 million. From the creation of the Liberty Interactive tracking stock in May 2006 through March 31, 2008, Liberty repurchased 112.6 million shares at an average cost per share of $20.07 for total cash consideration of $2.26 billion. These repurchases represent approximately 16.0% of the shares outstanding at the time of creation of the Liberty Interactive tracking stock. Currently, Liberty has approximately $740 million remaining under its Liberty Interactive stock repurchase authorization.

LIBERTY ENTERTAINMENT GROUP -- The businesses and assets attributed to Liberty Entertainment Group are engaged in, or are ownership interests in companies that are engaged in, television and internet distribution and programming, and currently include Liberty's subsidiaries Starz Entertainment, LLC ("Starz Entertainment"), FUN Technologies, Inc., and the Liberty Sports Group, its equity affiliates GSN LLC and WildBlue Communications, Inc. and its interest in DIRECTV. Liberty has identified Starz Entertainment, LLC, a consolidated, wholly-owned subsidiary, as the principal operating segment of Liberty Entertainment Group. As noted earlier, Liberty issued the Liberty Entertainment Group tracking stock on March 4, 2008. The assets and businesses attributed to the Liberty Entertainment Group were previously attributed to the Capital Group. The presentation below treats the assets and businesses attributed to the Liberty Entertainment Group as though they had been attributed to the Group since January 1, 2007.

Liberty Entertainment Group's revenue increased 11% and operating cash flow increased 17% for the quarter. The increases are primarily due to the addition of the Liberty Sports Group which was acquired in February 2008. Liberty Entertainment Group's results are comprised of Starz Entertainment, FUN Technologies, Inc. ("FUN"), and the Liberty Sports Group.

Starz Entertainment, LLC

Starz Entertainment revenue increased 3% to $273 million and operating cash flow increased 1% to $74 million.

The increase in revenue was primarily due to an increase in the effective rates for Starz Entertainment's services. Starz and Encore, the two principal service offerings of Starz Entertainment, experienced average subscription unit increases of 6% and 12%, respectively, during the quarter. The effects of these increases in subscription units are somewhat mitigated by Starz Entertainment's fixed-rate affiliation agreements.

Starz Entertainment's operating expenses increased 4% due to increased SG&A expenses associated with a new Starz branding campaign. Programming expenses were flat as lower bonus payment amortization was offset by a higher effective rate for the movie titles exhibited in 2008. Starz Entertainment continues to expect its 2008 programming expenses to be comparable to 2007 levels as it invests in original programming initiatives with the launch of its series Crash, Head Case, and Hollywood Residential.

"We continue to execute on our strategy of audience aggregation by being a fully integrated media company with the ability to produce all kinds of programming distributed on all platforms," said Starz LLC Chairman and CEO Robert B. Clasen. "In March, we launched a major branding campaign for the Starz premium channels which ties in our various entities and reiterates our strong commitment to deliver high quality entertainment." Clasen added, "The Starz and Encore channels continue to grow in overall subscribers and in relative importance compared to other premium channels as evidenced by Starz' number one ranking in the Nielsen ratings for the first time ever in February."

Share Repurchases

During the quarter, Liberty announced that its Board of Directors authorized the repurchase of up to $1 billion of Liberty Entertainment common stock. There were no share repurchases of Liberty Entertainment stock during the first quarter of 2008.

LIBERTY CAPITAL GROUP -- The newly reclassified Liberty Capital tracking stock began trading on March 4th. The businesses and assets attributed to Liberty Capital Group are all of Liberty's businesses and assets other than those attributed to the Liberty Interactive Group and Liberty Entertainment Group and include its subsidiaries Starz Media, LLC, TruePosition, Inc., Atlanta National League Baseball Club, Inc. (the owner of the Atlanta Braves), Leisure Arts, Inc., and WFRV and WJMN Television Station, Inc., and its interests in Time Warner, Inc. and Sprint Nextel Corporation

Liberty Capital Group's revenue increased $19 million or 26% and operating cash flow deficit increased $30 million for the quarter. The increase in revenue is primarily due to the acquisitions of the Atlanta Braves baseball club, Leisure Arts and WFRV and WJMN TV stations in 2007. The increase in the operating cash flow deficit is due to marketing costs associated with the release of several Overture films at Starz Media. In addition the Atlanta Braves baseball club, which generally operates at a loss in the first quarter due to the seasonality of its business, contributed to the decrease.

Starz Media followed up the January release of Mad Money with the April release of The Visitor to wide critical acclaim. Mad Money will soon be released on home video and air on Starz' premium channels. Starz' animation and live-action studios continue to produce original and for-hire content to be delivered across the Starz and other distribution channels.

Share Repurchases

During the quarter, Liberty announced that its Board of Directors authorized the repurchase of up to $300 million of Liberty Capital common stock. This authorization replaces the prior repurchase authorization of Liberty Capital common stock. There were no share repurchases of Liberty Capital stock during the first quarter of 2008.

1. Please see page 10 of this press release for the definition of operating cash flow and a discussion of management's use of this performance measure. Schedule 1 to this press release provides a reconciliation of Liberty's consolidated segment operating cash flow for its operating segments to consolidated earnings from continuing operations before income taxes and minority interests. Schedule 2 to this press release provides a reconciliation of the operating cash flow for each privately held entity presented herein to that entity's operating income for the same period, as determined under GAAP. NOTES

Liberty Media Corporation operates and owns interests in a broad range of video and on-line commerce, media, communications and entertainment businesses. Those interests are currently attributed to three tracking stock groups: Liberty Interactive Group, Liberty Entertainment Group and Liberty Capital Group.

As a supplement to Liberty's consolidated statements of operations included in its 10-Q, the following is a presentation of financial information on a stand-alone basis for QVC and Starz Entertainment which have been identified as the principal operating segments of Liberty Interactive and Liberty Entertainment, respectively.

Unless otherwise noted, the foregoing discussion compares financial information for the three months ended March 31, 2008 to the same periods in 2007. Please see page 10 of this press release for the definition of operating cash flow and a discussion of management's use of this performance measure. Schedule 1 to this press release provides a reconciliation of Liberty's consolidated segment operating cash flow for its operating segments to consolidated earnings from continuing operations before income taxes and minority interests. Schedule 2 to this press release provides a reconciliation of the operating cash flow for each privately held entity presented herein to that entity's operating income for the same period, as determined under GAAP. Certain prior period amounts have been reclassified for comparability with the 2008 presentation. Liberty completed the sale of its controlling interests in OpenTV and On Command during 2007, and as such, the financial results of these companies have been excluded from all periods presented.

Fair Value of Public Holdings and Derivatives (amounts in millions and include the value of derivatives) December 31, March 31, 2007 2008 InterActiveCorp $1,863 1,728 Expedia (1) 2,189 1,515 GSI Commerce 181 121 Total Attributed Liberty Interactive Group $4,233 3,364 News Corporation 10,647 - DIRECTV (1) - 11,662 Total Attributed Liberty Entertainment Group $10,647 $11,662 Non-Strategic Public Holdings (2) 5,042 4,565 Total Attributed Liberty Capital Group $5,042 4,565 (1) Represents fair value of Liberty's investments in Expedia and DIRECTV. In accordance with GAAP, Liberty accounts for these investments using the equity method of accounting and includes these investments in its consolidated balance sheet at their historical carrying values. Does not include 78.3 million DIRECTV shares purchased on April 2, 2008. (2) Represents Liberty's non-strategic public holdings which are accounted for at fair value including any associated equity derivatives on such investments. Also includes the liability associated with borrowed shares which totaled $1,183 million and $751 million at December 31, 2007 and March 31, 2008, respectively. Cash and Debt

The following presentation is provided to separately identify cash and liquid investments and debt information.

(amounts in millions) December 31, March 31, 2007 2008 Cash and Cash Related Investments: Total Attributed Liberty Interactive Group Cash (GAAP) $557 646 Total Attributed Liberty Entertainment Group Cash (GAAP) 89 981 Total Attributed Liberty Capital Group Cash (GAAP) (1) 2,489 2,259 Total Liberty Consolidated Cash (GAAP) $3,135 3,886 Debt: Senior Notes and Debentures (2) $3,108 3,108 QVC Bank Credit Facility 4,023 4,489 Other 61 78 Less: Unamortized Discount (15) (14) Total Attributed Liberty Interactive Group Debt (GAAP) 7,177 7,661 Senior Exchangeable Debentures (3) 551 551 Other 54 54 Total Attributed Liberty Entertainment Group Debt 605 605 Less: Fair Market Value Adjustment (132) (166) Total Attributed Liberty Entertainment Group Debt (GAAP) (4) 473 439 Senior Exchangeable Debentures (3) 3,930 3,442 Bank Credit Facility 750 750 Other 44 673 Total Attributed Liberty Capital Group Debt 4,724 4,865 Less: Fair Market Value Adjustment (659) (963) Total Attributed Liberty Capital Group Debt (GAAP) 4,065 3,902 Total Consolidated Liberty Debt (GAAP) (4) $11,715 12,002 (1) Does not include $692 million and $643 million of restricted cash on December 31, 2007 and March 31, 2008, respectively, that is reflected in other long-term assets in Liberty's condensed consolidated balance sheet. Please see discussion related to Investment Fund in the footnotes to Liberty's condensed consolidated financial statements included in its most recently filed Form 10-Q. (2) Face amount of Senior Notes and Debentures with no reduction for the unamortized discount. (3) Face amount of Senior Exchangeable Debentures with no reduction for the fair market value adjustment. (4) Does not include the $1.98 billion of debt used to fund the April 2, 2008 purchase of 78.3 million DIRECTV shares.

Total attributed Liberty Interactive Group cash and liquid investments increased $89 million compared to December 31, 2007 due to borrowings on the QVC bank credit facility and cash flow from QVC operations offset by the purchase of 14 million shares of InterActiveCorp's common stock for $339 million, the purchase of Liberty Interactive Series A common stock and interest payments. Total attributed Liberty Interactive Group debt increased $484 million from December 31, 2007, due to borrowings on the QVC bank credit facility.

Total attributed Liberty Entertainment Group cash and liquid investments increased $892 million compared to December 31, 2007 primarily due to $500 million of cash received from Liberty Capital Group at the time of formation of the Liberty Entertainment Group tracking stock and $465 million of cash received in the News Corp/DIRECTV exchange partially offset by a lower cash balance at Starz Entertainment. Total attributed Liberty Entertainment Group debt remained flat compared to December 31, 2007.

Total attributed Liberty Capital Group cash and liquid investments decreased $230 million compared to December 31, 2007 due to the transfer of $500 million of cash to Liberty Entertainment Group mentioned above, the retirement of $486 million face amount of Liberty's exchangeable debt and cash taxes paid. These cash uses were partially offset by borrowings against certain equity collars and tax sharing payments received from Liberty Interactive Group and Liberty Entertainment Group. Total attributed Liberty Capital Group debt increased $141 million compared to December 31, 2007 due to borrowings against certain equity collars partially offset by the retirement of $486 million face amount of Liberty's exchangeable debt.

Important Notice: Liberty Media Corporation President and CEO, Gregory B. Maffei will discuss Liberty's earnings release in a conference call which will begin at 3:00pm (ET) on May 8, 2008. The call can be accessed by dialing (877) 681-3378 or (719) 325-4797 at least 10 minutes prior to the start time. Replays of the conference call can be accessed from 5:00 p.m. (ET) on May 8, 2008 through 7:00 p.m. (ET) May 15, 2008, by dialing (719) 457-0820 or (888) 203-1112 plus the pass code 4488342#. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to http://www.libertymedia.com/investor_relations/default.htm. Links to this press release will also be available on the Liberty Media web site.

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements regarding the long-term prospects of QVC and anticipated programming costs for Starz Entertainment in 2008. These forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results, performance or achievements of the operating businesses of Liberty included herein could differ materially from those expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include, among others: the risks and factors described in the publicly filed documents of Liberty, including the most recently filed Form 10-Q of Liberty; general economic and business conditions and industry trends including in the advertising and retail markets; the continued strength of the industries in which such businesses operate; continued consolidation of the broadband distribution and movie studio industries; uncertainties inherent in proposed business strategies and development plans; changes in distribution and viewing of television programming, including the expanded deployment of personal video recorders and IP television and their impact on television advertising revenue and home shopping networks; disruption in the production of theatrical films or television programs due to strike by unions representing writers, directors or actors; increased digital television penetration and the impact on channel positioning of our networks; rapid technological changes; future financial performance, including availability, terms and deployment of capital; availability of qualified personnel; the development and provision of programming for new television and telecommunications technologies; changes in, or the failure or the inability to comply with, government regulation, including, without limitation, regulations of the Federal Communications Commission, and adverse outcomes from regulatory proceedings; adverse outcomes in pending litigation; changes in the nature of key strategic relationships with partners and joint ventures; competitor responses to such operating businesses' products and services, and the overall market acceptance of such products and services, including acceptance of the pricing of such products and services; and threatened terrorist attacks and ongoing military action, including armed conflict in the Middle East and other parts of the world. These forward-looking statements speak only as of the date of this press release. Liberty expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

SUPPLEMENTAL INFORMATION

As a supplement to Liberty's consolidated statements of operations, the following is a presentation of quarterly financial information and operating metrics on a stand-alone basis for the two largest privately held businesses (QVC and Starz Entertainment) owned by or in which Liberty held an interest at March 31, 2008.

Please see below for the definition of operating cash flow (OCF) and Schedule 2 at the end of this document for reconciliations for the applicable periods in 2007 and 2008 of operating cash flow to operating income, as determined under GAAP, for each identified entity.

QUARTERLY SUMMARY (amounts in millions) 1Q07 2Q07 3Q07 4Q07 1Q08 Liberty Interactive Group QVC (100%) Revenue - Domestic $1,174 1,184 1,174 1,676 1,176 Revenue - International 510 509 512 658 589 Revenue - Total $1,684 1,693 1,686 2,334 1,765 OCF - Domestic $278 292 278 396 281 OCF - International 96 91 86 135 106 OCF - Total $374 383 364 531 387 Operating Income $243 244 231 396 250 Gross Margin - Domestic 36.8% 37.6% 36.6% 35.4% 36.4% Gross Margin - International 37.6% 37.5% 36.7% 37.3% 36.8% Liberty Entertainment Group STARZ ENTERTAINMENT (100%) Revenue $265 254 282 265 273 OCF $73 55 88 48 74 Operating Income $60 42 78 30 60 Subscription Units - Starz 15.8 16.1 16.0 16.3 16.8 Subscription Units - Encore 28.2 28.4 30.3 30.7 31.4 NON-GAAP FINANCIAL MEASURES

This press release includes a presentation of operating cash flow, which is a non-GAAP financial measure, for each of the privately held entities of Liberty included herein together with a reconciliation of that non-GAAP measure to the privately held entity's operating income, determined under GAAP. Liberty defines operating cash flow as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock and other equity-based compensation). Operating cash flow, as defined by Liberty, excludes depreciation and amortization, stock and other equity-based compensation and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP.

Liberty believes operating cash flow is an important indicator of the operational strength and performance of its businesses, including the ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. Because operating cash flow is used as a measure of operating performance, Liberty views operating income as the most directly comparable GAAP measure. Operating cash flow is not meant to replace or supercede operating income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that Liberty's management considers in assessing the results of operations and performance of its assets. Please see the attached schedules for a reconciliation of consolidated segment operating cash flow to consolidated earnings from continuing operations before income taxes and minority interest (Schedule 1) and a reconciliation, for QVC and Starz Entertainment, of each identified entity's operating cash flow to its operating income calculated in accordance with GAAP (Schedule 2).

SCHEDULE 1

The following table provides a reconciliation of consolidated segment operating cash flow to earnings from continuing operations before income taxes and minority interest for the three months ended March 31, 2007 and 2008, respectively.

(amounts in millions) 2007 2008 Liberty Interactive Group $382 401 Liberty Entertainment Group 69 81 Liberty Capital Group (29) (59) Consolidated segment operating cash flow $422 423 Consolidated segment operating cash flow $422 423 Stock compensation (22) (16) Depreciation and amortization (151) (177) Interest expense (150) (166) Realized and unrealized gains (losses) on financial instruments, net 344 (285) Gains on disposition of assets, net 6 3,682 Other, net 84 102 Earnings from continuing operations before income taxes and minority interest $533 3,563 SCHEDULE 2

The following table provides a reconciliation for QVC and Starz Entertainment of operating cash flow to operating income calculated in accordance with GAAP for the three months ended March 31, 2007, June 30, 2007, September 30, 2007, December 31, 2007 and March 31, 2008, respectively.

(amounts in millions) 1Q07 2Q07 3Q07 4Q07 1Q08 Liberty Interactive Group QVC (100%) Operating Cash Flow $374 383 364 531 387 Depreciation and Amortization (120) (134) (129) (133) (132) Stock Compensation Expense (11) (5) (4) (2) (5) Operating Income $243 244 231 396 250 Liberty Entertainment Group STARZ ENTERTAINMENT (100%) Operating Cash Flow $73 55 88 48 74 Depreciation and Amortization (6) (6) (3) (6) (4) Stock Compensation Expense (7) (7) (7) (12) (10) Operating Income $60 42 78 30 60

Liberty Media Corporation

CONTACT: John Orr of Liberty Media Corporation, +1-720-875-5622

Web site: http://www.libertymedia.com/

Fushi Copperweld Announces Reporting Date for First Quarter 2008 Earnings Results

DALIAN, China, May 8 /Xinhua-PRNewswire-FirstCall/ -- Fushi Copperweld, Inc. , the leading global manufacturer of bimetallic wire used in a variety of telecommunication, utility, automotive and other electrical applications, today announced that the Company will report its first quarter 2008 financial results before the market opens on Wednesday, May 14, 2008.

Management will host a conference call at 8:30am ET on Wednesday, May 14, 2008.

Listeners may access the call by dialing 913-312-1485. To listen to the live webcast of the event, please go to http://www.fushicopperweld.com/ and click on the Calendar of Events link located in the Investor Relations section of our website. Please go to the website 15 minutes early to download and install any necessary audio software.

A replay of the call will be available from May 14, 2008 to June 14, 2008. Listeners may access the replay by dialing 719-457-0820; passcode: 8453975.

About Fushi Copperweld

Fushi Copperweld, Inc. through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co, Ltd., and Copperweld Bimetallics, LLC, manufactures bimetallic composite wire products, principally copper-clad aluminum wires ("CCA") and copper-clad steel ("CCS"). CCA and CCS wire offers greater value than solid copper wire in a wide variety of applications such as coaxial cable for cable television (CATV), signal transmission lines for telecommunication networks, distribution lines for electricity, electrical transformers, wire components for electronic instruments and devices, utilities, appliances, automotive, building wire, and other industrial wire. For more information on Fushi Copperweld, visit the Company's website: http://www.fushicopperweld.com/ .

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward- looking statements can be identified by the use of forward-looking terminology such as "will", "believes", "expects" or similar expressions. These forward- looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov/ .

For more information, please contact: Nathan Anderson Director of Investor Relations Fushi Copperweld, Inc. Email: ir@fushicopperweld.com Bill Zima & Ashley Ammon MacFarlane ICR, Inc. Tel: +1-203-682-8200

Fushi Copperweld, Inc.

CONTACT: Nathan Anderson, Director of Investor Relations of Fushi
International Inc., ir@fushicopperweld.com; or Bill Zima & Ashley Ammon
MacFarlane, both of Integrated Corporate Relations, +1-203-682-8200, for
Fushi

Web Site: http://www.fushicopperweld.com/

Irvine Sensors Subsidiary Gets $6.7 Million in New Orders

COSTA MESA, Calif., May 8 /PRNewswire-FirstCall/ -- Irvine Sensors Corporation today announced that Optex Systems, Inc,. its wholly-owned subsidiary, has recently received approximately $6.7 million of new orders from existing customers. The orders are for additional shipments of current Optex products, substantially all of which are scheduled for delivery in fiscal 2008 and 2009.

Irvine Sensors Corporation (http://www.irvine-sensors.com/), headquartered in Costa Mesa, California, is a vision systems company engaged in the development and sale of miniaturized infrared and electro-optical cameras, image processors and stacked chip assemblies, the manufacture and sale of optical systems and equipment for military applications through its Optex subsidiary and research and development related to high density electronics, miniaturized sensors, optical interconnection technology, high speed network security, image processing and low-power analog and mixed-signal integrated circuits for diverse systems applications.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This message may contain forward-looking statements based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "think", "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, our expectations regarding the timing and amounts of shipments under these new orders. Such statements speak only as of the date hereof and are subject to change. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.

Important factors that may cause such a difference include, but are not limited to, the availability of sufficient working capital to support fulfillment of our contracts; our ability to satisfy the production requirements of Optex's contracts on a timely and cost-effective basis; the availability of components for Optex's products; the impact of evolving technology or any technical challenges that we may encounter in the manufacture or fulfillment of Optex's products; our ability to attract and retain qualified technical personnel; the effects of international conflicts, natural disasters, public health emergencies and other events beyond our control; and the general economic and political conditions and specific conditions that may impact our operations. Further information on Irvine Sensors Corporation, including additional risk factors that may affect our forward looking statements, is contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and our other SEC filings that are available through the SEC's website (http://www.sec.gov/).

Irvine Sensors Corporation

CONTACT: investors, Investor Relations of Irvine Sensors Corporation,
+1-714-444-8718, investorrelations@irvine-sensors.com; or John Baldissera of
BPC Financial Marketing, 1-800-368-1217, for Irvine Sensors Corporation

Web site: http://www.irvine-sensors.com/

MOTO Q 9c Available at Verizon Wireless May 9

BASKING RIDGE, N.J., May 8 /PRNewswire/ -- Verizon Wireless, builder and operator of the nation's most reliable wireless network, announced the MOTO Q(TM) 9c will be available in the company's online store and in Verizon Wireless business sales channels on May 9. Customers will be able to purchase the newest member of Verizon Wireless' MOTO Q family at Verizon Wireless Communications Stores, including those in Circuit City, in the coming weeks.

The MOTO Q 9c is the perfect smartphone for business professionals and offers powerful capabilities, including access to more than 14 million points of interest with Verizon Wireless' popular VZ Navigator(SM) service. The phone will also offer the following features and capabilities:

-- Windows Mobile(R) 6 Standard -- access to POP3 or IMAP4 e-mail accounts -- Documents To Go(R) -- read, edit and create Microsoft(R) Word(R), Excel(R) and PowerPoint(R) documents -- Full QWERTY keyboard with dedicated "hot keys" for shortcuts to popular applications -- 2.4" color screen with innovative adaptive technology to adjust for optimized brightness for indoor and outdoor lighting to maximize battery power -- 1.3 megapixel camera with flash and fixed focus, plus video capture and playback -- 128 MB of on-board memory and optional removable memory future-proofed up to 32 GB (sold separately) -- Voice-activated dialing -- Smart contacts dialing -- Speakerphone -- Stereo Bluetooth(R) wireless technology supporting both Bluetooth A2DP and AVRCP profiles* Pricing

MOTO Q 9c will be available for $249.99 after a $50 mail-in rebate and a new two-year customer agreement. An additional $100 credit toward the purchase of the handset is available for customers who sign up for qualifying voice and data plans at the time of purchase. Verizon Wireless Nationwide E- mail plans for MOTO Q 9c begin at $79.99 for 450 anytime voice minutes and unlimited e-mail. VZ Navigator is also available for $9.99 for monthly access.

For more information about Verizon Wireless products and services, visit a Verizon Wireless Communications Store, call 1-800-2 JOIN IN or go to http://www.verizonwireless.com/. Business customers should contact their Verizon Wireless Business Sales Representative directly at 1-800-VZW-4BIZ.

* To determine the Bluetooth profiles supported by other Motorola devices, visit http://www.hellomoto.com/bluetooth. Certain Bluetooth features, including those listed, may not be supported by all compatible Bluetooth-enabled devices. About Verizon Wireless

Verizon Wireless operates the nation's most reliable wireless voice and data network, serving 67.2 million customers. Headquartered in Basking Ridge, N.J., with 69,000 employees nationwide, Verizon Wireless is a joint venture of Verizon Communications and Vodafone (NYSE and LSE: VOD). For more information, go to: http://www.verizonwireless.com/. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at http://www.verizonwireless.com/multimedia.

Verizon Wireless

CONTACT: Brenda Boyd Raney, Verizon Wireless, +1-908-559-7518,
Brenda.Raney@verizonwireless.com

Web site: http://www.verizonwireless.com/

EDGAR(R) Online(R) devient la première société américaine à offrir un réseau sud-coréen public de données d'entreprise en format XBRL

NEW YORK, May 8 /PRNewswire/ --

- La société annonce la conclusion d'une entente avec Korea Information Service visant l'ajout de données aux produits I-Metrix

EDGAR Online, Inc. (Nasdaq : EDGR) a annoncé aujourd'hui qu'elle devenait la première société américaine à offrir un réseau sud-coréen public de données fondamentales d'entreprise, présenté dans les détails ci-dessous, avec l'aide de Korea Information Service, Inc. (KIS) en format eXtensible Business Reporting Language (XBRL).

<< L'ajout d'information XBRL émanant des sociétés sud-coréennes constitue une importante étape dans notre processus d'intégration d'ensembles de données internationaux >>, a affirmé Philip Moyer, PDG et président d'EDGAR Online. << Nous croyons que l'ajout de ces sociétés à notre catalogue commercial représente une valeur énorme pour les investisseurs. Les données que nous offrons grâce à KIS s'ajoutent aux ensembles de données XBRL des sociétés américaines, chinoises et indiennes déjà accessibles via la plate-forme mondiale EDGAR Online. >>

EDGAR Online est le plus important fournisseur d'information commerciale et financière à valeur ajoutée portant sur les sociétés américaines publiques. Il s'agit également du plus grand fournisseur au monde de données XBRL puisque sa base de données actuelle et historique contient plus de 15 000 sociétés américaines et internationales entièrement étiquetées en utilisant les spécifications XBRL les plus récentes.

<< Alors que le marché coréen des valeurs mobilières croît et s'ouvre à la participation étrangère, les investisseurs locaux et étrangers sont plus attentifs au statut financier et opérationnel des sociétés apparaissant sur la liste >>, a expliqué Sang-Tae Park, président et PDG de KIS. << KIS joue un rôle de premier plan dans l'application du format XBRL à l'information fournie par les sociétés de la liste afin de satisfaire les investisseurs institutionnels et les particuliers à l'échelle mondiale. Nous sommes très heureux d'être en mesure de rendre les données XBRL accessibles via la plate-forme mondiale EDGAR Online. >>

EDGAR Online permet aux clients d'avoir accès à l'information financière des sociétés sud-coréennes par le biais de sa suite I-Metrix(TM) de produits XBRL et via des sources de données directes. Plus précisément, EDGAR Online fournira des données annuelles et trimestrielles émanant de quelque 1 700 sociétés sud-coréennes publiques. Ces données comprennent : l'état des résultats, le bilan, l'état des flux de trésorerie ainsi que les changements de capitaux propres et les ratios calculés. En plus des données financières, EDGAR Online fournira un profil d'entreprise incluant le nom de la société, l'adresse, l'industrie, les noms des représentants officiels, le nom de l'auditeur et une liste des actionnaires les plus importants. Les données historiques concernant l'information annuelle et trimestrielle de 2002 à aujourd'hui sont également disponibles. Toutes les données seront fournies en format XBRL et étiquetées en anglais.

À propos d'EDGAR(R) Online(R), Inc.

EDGAR Online, Inc., www.edgar-online.com, est un important fournisseur d'information commerciale et financière à valeur ajoutée portant sur les sociétés mondiales et destinée aux professionnels des secteurs financier, commercial et consultatif. La société permet à une importante clientèle d'utilisateurs d'accéder à l'information ainsi qu'à une variété d'outils d'analyse par l'intermédiaire d'inscriptions et d'accords d'octroi de licences en ligne.

À propos de Korea Information Service, Inc.

Korea Information Service, Inc., www.kisinfo.com, est un important fournisseur d'information commerciale concernant la Corée. KIS offre de l'information commerciale et financière en ligne via KISLINE depuis 1988 grâce à sa base de données d'information commerciale accumulée et à son expertise en matière de cote de solvabilité.

Usage des énoncés prospectifs

Le présent communiqué de presse peut contenir des << énoncés prospectifs >> au sens de la loi Private Securities Litigation Reform Act de 1995 des États-Unis. Les lecteurs sont prévenus qu'ils ne doivent pas se fier outré mesure à ces énoncés prospectifs, qui sont entièrement définis en vertu des mises en garde suivantes. Tous les énoncés prospectifs ne sont valides qu'à la date de publication du présent communiqué de presse. Ils sont fondés sur les attentes actuelles de la société et impliquent plusieurs hypothèses, risques et incertitudes qui pourraient entraîner un écart considérable entre les résultats réels et ceux exprimés par lesdits énoncés prospectifs. Les lecteurs sont fortement encouragés à lire l'ensemble des avertissements contenus dans les documents déposés par EDGAR Online auprès de la SEC. EDGAR Online rejette toute obligation de mettre à jour ou de réviser tout énoncé prospectif.

EDGAR(R) est une marque de commerce agréée au niveau fédéral de la Securities and Exchange Commission des États-Unis. EDGAR Online n'est pas affiliée à la Securities and Exchange Commission des Etats-Unis ou approuvée par cet organisme.

Site Web : http://www.edgar-online.com http://www.kisinfo.com

EDGAR Online, Inc.

T. David Colgren de Colcomgroup, Inc., +1-646-536-5103, dcolgren@colcomgroup.com, pour EDGAR Online, Inc.

Stanley Named to OKCBusiness List of Best Places to Work in Oklahoma for 2008

ARLINGTON, Va., May 8 /PRNewswire-FirstCall/ -- Stanley, Inc. , a leading provider of systems integration and professional services to the U.S. federal government, today announced that OKCBusiness has named it to its 2008 "Best Places to Work in Oklahoma" list as a finalist in the large company category. This was the first year for the company on the list.

(Logo: Logo: http://www.newscom.com/cgi-bin/prnh/20040106/DCTU010LOGO )

"We are proud of our workforce in Oklahoma and honored to be recognized for the employee culture we have fostered across the company," said Phil Nolan, Stanley's chairman, president and CEO. "With more than 100 offices worldwide, developing programs and practices that benefit our employees is a top priority as our company continues to grow."

The 30 top finalists were announced at an awards ceremony held on May 1 in Oklahoma City, Okla. The entire list is available online at http://www.okcbusiness.com/ and in the OKC Business Best Places to Work magazine.

Stanley is headquartered in Arlington, Va. The company was recognized by FORTUNE(R) magazine as one of the "100 Best Companies to Work For" in both 2007 and 2008.

About Stanley

Stanley is a provider of information technology services and solutions to U.S. defense and federal civilian government agencies. Stanley offers its customers systems integration solutions and expertise to support their mission-essential needs at any stage of program, product development or business lifecycle through five service areas: systems engineering, enterprise integration, operational logistics, business process outsourcing, and advanced engineering and technology. Headquartered in Arlington, Va., the company has more than 3,500 employees at over 100 locations in the U.S. and worldwide. In 2008 and 2007, Stanley was recognized by FORTUNE(R) magazine as one of the "100 Best Companies to Work For." Please visit http://www.stanleyassociates.com/ for more information.

About the Best Places to Work Program

The Best Places to Work program, which is run by Best Companies Group and ModernThink, a workplace excellence consulting firm, consists of both an extensive employer questionnaire and employee surveys. The collected information from the two assessments is combined and workplaces are ranked based on the findings. All organizations that have at least 25 employees and a facility in Oklahoma are eligible.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20040106/DCTU010LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Stanley, Inc.

CONTACT: Joelle Pozza, Stanley, +1-703-310-3218,
Joelle.Pozza@stanleyassociates.com

Web site: http://www.stanleyassociates.com/
http://www.okcbusiness.com/

U.S. Coast Guard Accepts Delivery of First National Security Cutter, Lockheed Martin Command and Control System

MOORESTOWN, N.J., May 8 /PRNewswire/ -- The U.S. Coast Guard today accepted delivery of the first National Security Cutter, USCGC Bertholf (WMSL 750), a 418-foot vessel built by Northrop Grumman and equipped by Lockheed Martin with integrated communications, sensors and electronics systems. Acceptance signifies transfer of ownership from industry to government and the start of operational test and evaluation.

Lockheed Martin's Coast Guard Command & Control (CG-C2) system provides the Coast Guard a common operating picture to aid coordination among helicopters, aircraft, other ships and shore facilities. The system facilitates interoperability with the forces and agencies of the Department of Homeland Security, the Department of Defense, and 117 federal and regional agencies and organizations. It also provides sensors for surface and air detection, tracking, classification and identification, and an integrated voice communications capability over a host of commercial and military radios and satellites.

"Our team has worked with the Coast Guard for many years to reach this point," said Richard Lockwood, vice president of Lockheed Martin's Coast Guard Systems business. "Whether we called home the Maritime Domain Awareness Center in New Jersey, Training Center Petaluma in California, or our doublewide trailer pier side at the shipyard, our dedication to the men and women of the Coast Guard has never wavered. We are confident that CG-C2 will dramatically improve the Coast Guard's capability to perform its many missions."

Today's milestone followed a series of at-sea trials culminating in a third-party assessment by the U.S. Navy's Board of Inspection and Survey (INSURV).

"The INSURV report confirmed the quality of our engineers' system design and our shipboard integration and test team's work," said Lockwood. "We have a small number of open items yet to close, which is expected with a system of CG-C2's complexity, but we stand ready to support Captain Stadt and his crew as they run Bertholf through her paces."

CG-C2, installed on Bertholf, is fully interoperable with systems previously delivered on the HC-144A Ocean Sentry maritime patrol aircraft, the modified HC-130J Hercules long-range search aircraft, and upgrades to the Coast Guard's 39 legacy high- and medium-endurance cutters.

Bertholf is scheduled to be formally commissioned by the Coast Guard on August 4, 2008 at its future homeport in Alameda, Calif.

The crew of Bertholf has already trained on the CG-C2 at Coast Guard Training Center Petaluma. The $26 million facility, which the Coast Guard opened in March 2007, was equipped by Lockheed Martin with state-of-the-art simulators, radars and electronics equipment to train Coast Guard crews assigned to the new Legend-class of National Security Cutters.

The CG-C2 is a product of the Maritime Domain Awareness Center, a state- of-the-art facility in Moorestown, NJ, designed to develop, test and integrate equipment and systems being produced to support the Coast Guard's Deepwater program.

Integrated Coast Guard Systems, a joint venture of Lockheed Martin and Northrop Grumman, was awarded the Deepwater contract in June 2002 and has been renewed through January 2011.

Headquartered in Bethesda, MD, Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation reported 2007 sales of $41.9 billion.

For additional information, visit our website: http://www.lockheedmartin.com/

Lockheed Martin

CONTACT: Troy Scully of Lockheed Martin, +1-856-359-3359,
troy.r.scully@lmco.com

Web site: http://www.lockheedmartin.com/

Company News On-Call: http://www.prnewswire.com/comp/534163.html

Irvine Sensors Sets 2nd Quarter Conference CallWebcast scheduled for Thursday, May 15, 2008 at 1:15 PM (Pacific Daylight Time)

COSTA MESA, Calif., May 8 /PRNewswire-FirstCall/ -- Irvine Sensors Corporation today announced that it will host a conference call to discuss results of its second quarter and first half of fiscal 2008, the 13 and 26 weeks ended March 30, 2008, on Thursday, May 15, 2008 at 1:15 PM Pacific Daylight Time. Analysts and Investors who would like to participate in the Q&A Session following the web cast, please request the dial-in number from Investor Relations at investorrelations@irvine-sensors.com before noon, Wednesday, May 14, 2008. If you are not able to participate in the Q&A Session, you may e-mail your questions to Investor Relations at investorrelations@irvine-sensors.com. All questions will be addressed as time permits.

Irvine Sensors' CEO John C. Carson and CFO John Stuart will host the Company's call to discuss those results. The conference call will be broadcast live over the Internet and can be accessed by all interested parties via a link on Irvine Sensors' homepage at http://www.irvine-sensors.com/. To listen to the live call, please go to the Irvine Sensors website at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to monitor the live broadcast, a replay will be available shortly after the conclusion of the call, and remain archived on the Irvine Sensors site through May 30, 2008.

Irvine Sensors Corporation http://www.irvine-sensors.com/ is a vision systems company engaged in the development and sale of miniaturized infrared and electro-optical cameras, image processors and stacked chip assemblies, the manufacture and sale of optical systems and equipment from military applications through its Optex subsidiary and research and development related to high density electronics, miniaturized sensors, optical interconnection technology, high speed network security, image processing and low-power analog and mixed-signal integrated circuits for diverse systems applications

Irvine Sensors Corporation

CONTACT: Investor Relations of Irvine Sensors Corporation,
+1-714-444-8718, investorrelations@irvine-sensors.com

Web site: http://www.irvine-sensors.com/

IRIDEX Announces First Quarter 2008 Conference Call and Release Date

MOUNTAIN VIEW, Calif., May 8 /PRNewswire-FirstCall/ -- IRIDEX Corporation today announced that it will release its first quarter 2008 financial results after the market closes on Tuesday, May 13, 2008. In conjunction with the release, the Company will host a conference call with the investment community at 5:00 p.m. Eastern Time on Tuesday, May 13, 2008 to discuss the results of the quarter and other business developments.

Interested parties may access the live conference call via telephone by dialing (800) 240-7305 (US) or (303) 262-2130 (International), or by visiting the Company's website at http://www.iridex.com/. A telephone replay will be available beginning on Tuesday, May 13, 2008 through Tuesday, May 20, 2008 by dialing (800) 405-2236 (US) or (303) 590-3000 (International) and entering Passcode 11114278#.

About IRIDEX

IRIDEX Corporation is a leading worldwide provider of therapeutic based laser systems, disposable laser probes and delivery devices to treat eye diseases in ophthalmology and skin disorders in the aesthetics market. IRIDEX products are sold in the United States through a direct sales force and internationally through a combination of a direct sales force and a network of approximately 100 independent distributors into 107 countries. For further information, visit the Company's website at http://www.iridex.com/.

IRIDEX Corporation

CONTACT: Jim Mackaness, Chief Financial Officer of IRIDEX Corporation,
+1-650-940-4700

Web site: http://www.iridex.com/

Winland Electronics, Inc. Announces Approval of All Proposals at Annual Shareholders' Meeting and the Election of Thomas J. Goodmanson as Chairman

MANKATO, Minn., May 8 /PRNewswire-FirstCall/ -- Winland Electronics, Inc. , a leading designer and manufacturer of custom electronic control products and systems, announced today the voting results for proposals considered at its annual shareholders' meeting held on May 6, 2008. Four matters were presented for shareholder approval: 1. to set the number of members of the Board of Directors at five; 2. to re-elect Lorin E. Krueger, Thomas J. de Petra, Thomas J. Goodmanson, Richard T. Speckmann and Thomas J. Brady as directors; 3. to increase the number of shares available under the Company's 1997 Employee Stock Purchase Plan from 100,000 to 300,000; and 4. to approve the Company's 2008 Equity Incentive Plan. All proposals were approved by the shareholders.

The Company also announced that at a Board of Directors meeting held on May 6, 2008, Thomas J. Goodmanson was elected as the Chairman of the Company's Board of Directors. Mr. Goodmanson has served on the Company's Board of Directors since June 1, 2007, and replaces Thomas J. de Petra as the Chairman. Mr. de Petra stepped down as Chairman because of his appointment as the Company's Chief Executive Officer and President, but he will remain on the Board as a director.

About Winland Electronics

Winland Electronics is an electronic manufacturing services (EMS) company, providing product development and manufacturing expertise and innovation for more than 20 years. Winland also markets proprietary products for the security/industrial marketplace. Winland's product development offering includes program management, analog circuit design, digital circuit design, printed circuit board design and embedded software design. Winland differentiates itself from the contract manufacturer competition with its integrated product development and manufacturing services to offer end-to-end product launch capability, including design for manufacturability, design for testability, transition to manufacturing and order fulfillment. Winland's core competency is delivering time-to-market through superior program management, experience, integrated development processes, and cross-functional teams. Winland Electronics is based in Mankato, MN.

CONTACT: Tom de Petra Brett Maas or Cameron Donahue President & CEO Hayden Communications (507) 625-7231 (651) 653-1854 http://www.winland.com/

Winland Electronics, Inc.

CONTACT: Tom de Petra, President & CEO of Winland Electronics, Inc.,
+1-507-625-7231; or Brett Maas or Cameron Donahue, both of Hayden
Communications, +1-651-653-1854, for Winland Electronics, Inc.

Web site: http://www.winland.com/

Marvell Technology Group Ltd. Reaches Settlement With SEC Regarding Historic Stock Option Granting Practices

SANTA CLARA, Calif., May 8 /PRNewswire-FirstCall/ -- Marvell today announced that it has entered into a settlement with the Securities & Exchange Commission ("SEC") in connection with the SEC's previously disclosed investigation into the Company's historic stock option granting practices.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070411/SFW034LOGO)

Without admitting or denying the allegations in the SEC's complaint, the Company agreed to settle the charges by consenting to a permanent injunction against any future violations of various provisions of the federal securities laws. The Company will also pay a civil penalty of $10 million in connection with the settlement.

In a related agreement, Weili Dai, one of the Company's co-founders, also entered into a settlement with the SEC. Without admitting or denying the allegations in the SEC's complaint, Ms. Dai consented to a permanent injunction against any future violations of various provisions of the federal securities laws, agreed not to serve as a director or officer of a public company for a period of five years, and will pay a civil penalty of $500,000.

About Marvell

Marvell is a leader in the development of storage, communications, and consumer silicon solutions. The company's diverse product portfolio includes switching, transceiver, communications controller, wireless, and storage solutions that power the entire communications infrastructure including enterprise, metro, home, and storage networking. As used in this release, the terms "company" and "Marvell" refer to Marvell Technology Group Ltd. and its subsidiaries. For more information, visit http://www.marvell.com/.

Marvell(R) is a registered trademark of Marvell or its affiliates. Other names and brands may be claimed as the property of others.

For Further Information Contact: Media: Louise Kehoe Ogilvy PR Worldwide 650-544-5070 louise.kehoe@ogilvypr.com Investors: Jeff Palmer Marvell Investor Relations 408-222-8373 jpalmer@marvell.com

Photo: http://www.newscom.com/cgi-bin/prnh/20070411/SFW034LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Marvell

CONTACT: Media, Louise Kehoe of Ogilvy PR Worldwide, +1-650-544-5070,
louise.kehoe@ogilvypr.com, for Marvell; or Investors, Jeff Palmer of Marvell
Investor Relations, +1-408-222-8373, jpalmer@marvell.com

Web site: http://www.marvell.com/

General Dynamics Selected for FRESUK MoD selects PIRANHA V as provisional preferred bidder for Utility Vehicle Design

LONDON, May 8 /PRNewswire-FirstCall/ -- General Dynamics United Kingdom Limited, a wholly owned subsidiary of General Dynamics , has been selected by the UK Ministry of Defence as the provisionally preferred bidder for the Utility Vehicle Design (UVD) for the Future Rapid Effect System (FRES). Subject to satisfactory completion of the package of work on risk reduction and confirmation of preferred bidder status the team, led by General Dynamics UK Limited, will develop the PIRANHA V as the FRES Utility Vehicle for the British Army. The company will now enter negotiations with the MoD to determine the scope of development work required.

Dr Sandy Wilson, president and managing director, said: "We are delighted that PIRANHA V is the British Army's choice for the FRES Utility Vehicle. With over 9,000 PIRANHAs already in service, the family's pedigree speaks for itself. We have continued development work at our own initiative, and we will work closely with the Ministry of Defence to de-risk the programme. At the same time, we will be continuing our strong bids for the Utility Vehicle Integrator (UVI) role and for the follow on FRES Specialist Vehicles (SV)."

PIRANHA V will deliver an extremely reliable platform with superb protection and mobility to meet the Army's FRES requirement, together with the necessary growth potential to meet future challenges. General Dynamics' comprehensive experience of delivering wheeled armoured fighting vehicle (AFV) programmes to tight timelines reduces potential risk considerably and will be invaluable in delivering PIRANHA V to the MoD. The vehicle offers a cost-effective and robust solution that complies fully with the Defence Industrial Strategy.

ABOUT GENERAL DYNAMICS

General Dynamics United Kingdom Limited, a wholly owned subsidiary of General Dynamics , is a leading player in the UK's knowledge economy and industrial base. Established in the United Kingdom for over 40 years, it employs around 1,700 people at eight facilities. A prime contractor and complex systems integrator, working in partnership with the Ministry of Defence (MoD) and other allies, growing key intellectual property, skills and capabilities in its UK research facilities and workforce, whilst harnessing world-leading technology.

General Dynamics UK leads a key MoD Defence Technology Centre research consortium and, together with a growing C4I export programme, plays a central role manufacturing and developing technology to deliver Network Enabled Capability and ISTAR in the battlespace. The Company is widely recognized as a leading contender to supply and integrate the next generation of Armoured Fighting Vehicles for the British Army.

More information about the company is available online at http://www.generaldynamics.uk.com/.

General Dynamics, headquartered in Falls Church, Va., employs approximately 84,000 people worldwide and reported 2007 revenues of $27.2 billion. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available online at http://www.generaldynamics.com/.

General Dynamics United Kingdom Limited

CONTACT: Mark Douglas, +44(0)207-932-3460, mobile, +44(0)7879-400-243,
mark.douglas@generaldynamics.uk.com

Web site: http://www.generaldynamics.com/
http://www.generaldynamics.uk.com/

Sunovia and EPIR Announce Unprecedented Breakthrough in the Manufacturing of Single Crystalline Cadmium Telluride (CdTe) on Silicon

SARASOTA, Fla., May 8 /PRNewswire-FirstCall/ -- Sunovia Energy Technologies, Inc. (BULLETIN BOARD: SUNV) and EPIR Technologies, Inc. (EPIR) are pleased to announce an unprecedented breakthrough in the manufacturing of Single Crystalline Cadmium Telluride (CdTe) grown by molecular beam epitaxy (MBE) on silicon (Si), known as CdTe/Si. The companies have discovered a method to produce single crystalline CdTe/Si more rapidly than ever achieved before in any lab, even for a single isolated sample. The results have been independently validated and are readily reproducible with an extremely high yield and an unprecedented high crystal quality. This breakthrough paves the way for continued progress toward the large-scale manufacturing and commercialization of single crystalline epitaxial CdTe/Si, which the companies believe, as of today, has no competitors. This breakthrough again demonstrates the companies' continuing role as the leading developers of advanced night vision materials and ultra-high-efficiency solar cells based on CdTe/Si.

This breakthrough validates the first reproducible, high-yield growth of high-quality CdTe/Si suitable for commercial manufacturing. The companies believe that this development alone will greatly reduce the cost of high-efficiency CdTe-based solar cells and night vision detectors and cameras. This breakthrough also dramatically improved the crystal quality of the CdTe produced. It created improvements in the crystal quality of three-inch CdTe wafers more than twice as great as all of the improvements achieved over the last decade. In addition, the improvement in uniformity across the wafer is even more striking than the great improvement in crystal quality at the center of the wafer. This indicates a high likelihood of being able to move rapidly to the commercial large-scale manufacturing of even larger area CdTe/Si wafers, further lowering costs and speeding up production. This is of prodigious importance to the companies' solar cell manufacturing program because that program has single crystal CdTe/Si as its fundamental base for creating even more efficient cells.

As explained in previous Sunovia press releases, the development of high-efficiency infrared materials and devices and that of photovoltaic (PV) devices are very similar, except that infrared device manufacturing is much more precise and difficult.

"I am very pleased for the shareholders and investors of Sunovia and EPIR to announce this unprecedented breakthrough," stated Dr. Siva Sivananthan, President and CEO of EPIR Technologies, Inc. "This accomplishment is a direct reflection of the incredible talent at EPIR, and the 'team first' attitude we share with Sunovia," added Sivananthan.

About Sunovia Energy Technologies, Inc. and EPIR Technologies, Inc.

Sunovia and EPIR own significant equity interests in one another. Sunovia is a Sarasota, Fla.-based renewable energy and energy conservation company that is working to develop one of the most advanced and cost-effective cadmium telluride (CdTe) solar cell technologies ever created. Sunovia is also the owner of the proprietary EvoLucia(TM) LED lighting product line; the incredibly energy efficient LED lighting solutions have received CE, FCC, TUV and IP23 regulatory approvals, and are now being marketed worldwide.

Illinois-based EPIR Technologies, Inc. ( http://www.epir.com/ ) is one of the most advanced IR sensor and imaging companies in the world. EPIR's knowledge, experience and expertise in the growth of CdTe, HgCdTe and other II-VI semiconductors equal or exceed those of any other company in the world. Their prowess in this area is unmatched and has been endorsed by the award of unprecedented Congressional funds for the development of a manufacturing capability for CdTe on Si and the award of a patent for growing CdTe directly on a Si readout integrated circuit, as well as other patents. Although currently entering manufacturing in order to maximize the profit from its distinguished R&D, EPIR is committed to protecting its strong R&D and technology base and is maintaining close collaborative relationships with Department of Defense, industrial, and university laboratories. EPIR is now ramping up its manufacturing of CdTe on Si and is manufacturing high quality HgCdTe infrared material, using the CdTe on Si as a low cost substrate. In addition, EPIR has developed a portfolio of specialty sensors that it has begun to produce; including both a variety of IR sensors and a biosensor and decontamination system.

Perhaps most important, EPIR now has leveraged its great expertise in the manufacturing of II-VI semiconductor materials and optoelectronic devices to enter the rapidly expanding field of solar energy. The same techniques learned in the growth of military-grade infrared materials are now being successfully applied to the production of solar cells. High-sensitivity infrared materials produced at low cost by EPIR are being used to obtain high solar cell efficiencies at low cost. EPIR's immediate plans include the manufacturing of solar cells for space applications and concentrator systems.

Sunovia Energy's Web site is located at http://www.sunoviaenergy.com/ . EPIR Technologies, Inc.'s Web site is located at http://www.epir.com/ . More information about this exclusive partnership may be viewed in the company's filings with the Securities and Exchange Commission (SEC), available online at http://www.sec.gov/.

The Sunovia Energy logo is a registered service mark of Sunovia Energy Technologies, Inc. in the United States and/or other countries. Sunovia Energy products and services are provided by Sunovia Energy Technologies, Inc.

Forward-Looking Statement

Some of the statements made by Sunovia in this press release are forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. Sunovia believes that its primary risk factors include, but are not limited to: development and maintenance of strategic acquisitions; domestic and international acceptance of our product lines; defending our intellectual property and proprietary rights; development of new products and services that meet customer demands and generate acceptable margins; successfully completing commercial testing of new technologies and systems to support new products and services; and attracting and retaining qualified management and other personnel. Additional information concerning these and other important factors can be found within Sunovia's filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors.

Sunovia Energy Technologies, Inc.

CONTACT: Craig Hall of Sunovia Energy Technologies, Inc.,
+1-941-751-6800, craig.hall@sunoviaenergy.com

Web site: http://www.sunoviaenergy.com/
http://www.epir.com/

TELUS Corporation - Notice of cash dividend

VANCOUVER, May 8 /PRNewswire-FirstCall/ -- NOTICE IS HEREBY GIVEN that the Board of Directors has declared a quarterly dividend of forty-five cents ($0.45) Canadian per share on the issued and outstanding Common shares and forty-five cents ($0.45) Canadian per share on the issued and outstanding Non-Voting shares of the Company payable on July 1, 2008 to holders of record at the close of business on June 10, 2008.

By order of the Board Audrey Ho Senior Vice President General Counsel and Corporate Secretary Vancouver, British Columbia May 8, 2008

TELUS Corporation

CONTACT: Investor Relations, (604) 643-4113, ir@telus.com

blinkx Content Correlation Engine Automatically Turns Readers into Viewers, Boosting Publisher Asset Revenue

SAN FRANCISCO, California, May 8 /PRNewswire/ --

- Media Companies who Boast Large Audiences That Primarily Read Textual Articles on Their Sites are now Able to Automatically Drive That Audience Towards Higher Revenue Yielding TV and Video Content

blinkx, the world's largest and most advanced video search engine, today announced the availability of the blinkx Content Correlation Engine, an extension of blinkx's Advanced Media Platform. blinkx Content Correlation Engine utilizes blinkx's patented technology and will allow media companies that today attract some of the largest and most profitable online audiences to automatically match textual and video assets on every single page of their websites, seamlessly morphing readers into viewers, in order to drive massively increased revenues.

The proliferation of broadband has driven a strong and growing market for publishers that own and product video assets. Average online video advertisement Cost Per Mille (CPM) rates are often an order of magnitude greater than equivalent textual banner advertisements and this effect is most pronounced when the publisher of the content is a popular, trusted brand. As a result many publishers who have strong brands built on offline and online text content are increasingly producing online video as a method to drive new and faster-growing advertising revenues. In the past four years, brands that have begun this approach include The Wall Street Journal, The Financial Times, Forbes Magazine, BusinessWeek Magazine and many others.

The production of online video is, however, just the first step. Existing audiences who currently predominantly read text articles must then be converted to start to watch video content; changing readers into viewers. As that audience today spends the majority of its time on text articles, placing highly relevant video content, inline within text articles is a critically effective strategy in initiating the reader to viewer conversion process. Existing blinkx AMP customers are already adopting the Content Correlation Engine.

blinkx's technology uses advanced speech-recognition and visual analysis to automatically analyze and process video content on the web, delivering results that are more accurate and reliable than standard metadata-based keyword search technology. blinkx's Concept Recognition Engine (CoRE) then applies a unique, patented pattern-matching process to the extracted information in order to recognize ideas, concepts and themes within video. It is the automated understanding that CoRE provides that allows the Concept Correlation Engine to automatically match relevant textual and video assets.

"The blinkx technology has allowed us to make dynamic recommendations to users, optimize our search ranking and increase our visibility," said Ari Brandt, general manager, Portfolio.com.

"With the blinkx Advanced Media Platform, we have found a solution that solves many of the problems we've encountered in featuring video content on our Web site," said Albert Aimers, CEO, WallSt.net.

"We've enhanced the value we can derive from our video assets and we expect to significantly enhance both our brand and our users' experience online."

"Many media companies sit on a goldmine of video assets but struggle to generate large-scale audiences for that content. This occurs because so much of the internet is still stuck in a text-oriented form, with users who have the potential to become avid video viewers still unaware of the video riches that their favorite text sites have to offer," said Suranga Chandratillake, CEO and founder, blinkx.

"The blinkx Content Correlation Engine uses our ability to conceptually understand the true meaning of a piece of TV or video content to match those assets to relevant text articles. The process is entirely automatic and so can be deployed across massive websites with thousands of articles and millions of page-views, immediately scaling video audiences on those sites and driving order of magnitude growth in video views and, as a result, increased video advertising revenue."

For more information on the blinkx Content Correlation Engine and the Advanced Media Platform, please visit http://www.blinkx.com/corporate/advancedMediaPlatform.

As the pioneer in video search technology, blinkx has built a reputation as the smartest way to search new forms of online content such as video. With more than 220 partners and 18 million hours of indexed video and audio content, including favorite TV moments, news clips, short documentaries, music videos, video blogs and more, blinkx uses advanced speech and visual recognition technologies to deliver results that are more accurate and reliable than standard metadata-based keyword searches.

About Conde Nast Portfolio.com

Portfolio.com is the online counterpart to Condé Nast Portfolio, the new business magazine launched in April 2007. The site provides insight into the day's top business stories, with analysis from bloggers and columnists on a diverse range of business topics, from hedge funds to politics to Hollywood, as well as editorial content and photography from the magazine.

About WallSt.net

WallSt.net (http://www.wallst.net) is owned and operated by WallStreet Direct, Inc., a wholly owned subsidiary of Financial Media Group, Inc. (OTCBB: FNGP; http://www.financialmediagroupinc.com). The Web site is a leading provider of timely business news, executive interviews, multimedia content, and research tools. Financial Media Group, Inc. also owns my.wallst.net, a financial social network for investors, and Financial Filings Corp. (http://www.financialfilings.com), a provider of compliance solutions to publicly traded companies. In addition to WallSt.net, WallStreet Direct, Inc. owns and operates WallStRadio (http://www.wallstradio.com), a business and finance podcast Web site; and WallSt TV (tv.wallst.net), a hub for business and finance video programming.

About blinkx

blinkx plc (LSE AIM: BLNX) is the world's largest and most advanced video search engine. Today, blinkx has indexed more than 18 million hours of audio, video, viral and TV content, and made it fully searchable and available on demand. blinkx's founders set out to solve a significant challenge - as TV and user-generated content on the Web explode, keyword-based search technologies only scratch the surface. blinkx's patented search technologies listen to - and even see - the Web, helping users enjoy a breadth and accuracy of search results not available elsewhere. In addition, blinkx powers the video search for many of the world's most frequented sites. blinkx is based in San Francisco and London. More information is available at http://www.blinkx.com.

Press Contacts: Tim Turpin Sparkpr +1-415-321-1894 tim.turpin@sparkpr.com Clare Gayner Bite Communications +44(0)20-8834-3454 Clare.Gayner@bitepr.com

blinkx PLC

Press Contacts: Tim Turpin, Sparkpr, +1-415-321-1894, tim.turpin@sparkpr.com; Clare Gayner, Bite Communications, +44(0)20-8834-3454, Clare.Gayner@bitepr.com

CSC et TDC signent un nouvel accord d'externalisation d'applications informatiques de 413 millions de dollars US

FALLS CHURCH, Virginie, May 8 /PRNewswire/ --

- L'accord d'une durée de sept ans renforce les relations entre CSC et le principal fournisseur télécom danois

Computer Sciences Corporation (NYSE : CSC) a annoncé aujourd'hui la signature d'un nouvel accord d'externalisation d'applications informatiques avec TDC, le premier opérateur de télécommunications du Danemark. La valeur de ce contrat, d'une durée de sept ans, est estimée à environ 413 millions de dollars US.

CSC offre une assistance à TDC depuis 2003. Ce nouvel accord fait suite à un contrat d'une valeur de 330 millions de dollars US passé l'an dernier pour une durée de sept ans, qui élargissait la portée des services d'infrastructure fournis par CSC. Selon les termes du nouveau contrat, qui accroît considérablement les services d'application offerts par CSC, cette dernière assurera la gestion du portefeuille d'applications patrimoniales de TDC, et fournira des services de développement et de maintenance pour plus de 500 applications en offrant un support à quelque 17 000 utilisateurs.

Dans le cadre de ce nouvel accord, environ 220 employés de TDC seront transférés vers CSC en juin.

<< Les relations que nous entretenons avec CSC dans plusieurs domaines sont déjà excellentes et nous sommes ravis de les renforcer en y incluant la gestion de notre portefeuille d'applications patrimoniales >>, a déclaré Jorgen Jakobsen, directeur des systèmes d'information chez TDC. << Ce nouvel accord nous permettra de moderniser et consolider davantage nos applications afin qu'elles puissent fournir les possibilités dont notre secteur a besoin. >>

<< Nous sommes heureux d'étendre nos relations avec TDC >>, a affirmé Guy Hains, président du groupe européen de CSC. << Ces cinq dernières années ont vu l'évolution de notre assistance et l'apport d'une plus grande valeur ajoutée. La signature de ce nouvel accord en est le symbole. Nous sommes impatients de collaborer avec TDC sur ce programme primordial et de continuer à les servir de façon à leur offrir la souplesse, l'innovation et la performance dont ils ont besoin pour atteindre leurs objectifs. >>

À propos de TDC

TDC est le premier fournisseur de solutions de communications au Danemark et est très présent sur les marchés du nord de l'Europe. TDC est organisé en quatre branches d'activités principales : Business Nordic, Fixnet Nordic, Mobile Nordic et YouSee. Les activités de TDC en dehors de la région scandinave comprennent Sunrise, l'entreprise leader de télécommunications suisse, ainsi que HTCC, la première société de télécommunications hongroise. TDC a été partiellement privatisé en 1994, et entièrement privatisé en 1998. Nordic Telephone Company ApS possède 87,9 % des actions de TDC, le reste étant détenu par des actionnaires individuels ou institutionnels.

À propos de CSC

Computer Sciences Corporation est un leader en matière de services liés aux technologies de l'information. CSC a pour mission d'être le numéro un mondial dans la mise en oeuvre de solutions et de services de technologies innovantes.

Avec près de 91 000 employés, CSC fournit des solutions innovantes à ses clients du monde entier en mettant en oeuvre des technologies de pointe et ses propres capacités avancées, parmi lesquelles la conception et l'intégration de systèmes, l'externalisation des processus métiers et informatiques, le développement d'applications logicielles, l'hébergement de sites Web et d'applications et le conseil en management. CSC a réalisé un chiffre d'affaires de 16,1 milliards de dollars US pour l'année fiscale clôturée le 28 décembre 2007. Pour de plus amples informations, consultez le site Web de la société : http://www.csc.com.

Site Web : http://www.csc.com

Computer Sciences Corporation

Mads Cordt Gyldenkaerne, manager, communications & marketing, CSC - Nordic Region, +45-3614-7050, mgyldenkaern@csc.com, ou Mike Dickerson, directeur, relations d'entreprise média, +1-310-615-1647, mdickers@csc.com, ou Bill Lackey, directeur, relations d'entreprise investisseurs, +1-310-615-1700, blackey3@csc.com, tous de Computer Sciences Corporation

/SECOND AND FINAL ADD - TO226 - TELUS Corporation/

On April 17, 2008, Decision 2008-33 stated that TCC should not have imposed this monthly charge in certain circumstances. For basic toll subscribers who had not used TCC's long distance network during the applicable period, the CRTC found that the network access charge was equivalent to an unauthorized residential local rate increase. TCC was directed to reimburse or credit those affected customers. Basic toll subscribers who did use TCC's long distance network in a particular month continue to be subject to the charge for that month. The CRTC also directed that customers who subscribed to a toll restrict service since TCC implemented the long distance network access charge, and who wished to be removed that service, should be allowed to do so without charge, within three months of April 17, 2008.

The Company disagrees with the reasoning in this decision and is considering a number of options. The retroactive amounts to be reimbursed under this decision, as at March 31, 2008, are estimated to be less than $5 million.

Approval of applications for forbearance from the regulation of residential local exchange services (Telecom Decisions 2008-19, 2008-20 and 2008-30).

In March and April 2008, the CRTC approved TELUS' forbearance applications for residential local services in five exchanges in the Lower Mainland of B.C. To date, TELUS has received approval for deregulation of local phone services for residential markets covering approximately three- quarters of its residential lines in non-high cost serving areas, and for approximately two-thirds of its business lines.

10.2 Process risks

TELUS continues to develop new phases of a wireline billing and customer care system. In 2007, TELUS converted all of its wireline consumer customers in Alberta to the new integrated billing and client care system. Initial system difficulties were experienced, which temporarily reduced order processing capability and caused increased installation backlogs and higher costs, such as extra call centre resources to maintain service levels.

A pilot implementation for approximately 150,000 residential customers in B.C. is expected to begin in the second quarter of 2008. Additional related development and conversions are planned, including a full system conversion for more than one million B.C. residential customers later in 2008. Although the Company expects to benefit from lessons learned from the Alberta conversion, the legacy systems in B.C. are sufficiently different, such that there is no assurance that the B.C. conversion will be successfully implemented on time, on budget and with desired functionality.

10.3 Litigation and legal matters Certified class action

A class action was brought August 9, 2004, under the Class Actions Act (Saskatchewan), against a number of past and present wireless service providers including TELUS. The claim alleges that each of the carriers is in breach of contract and has violated competition, trade practices and consumer protection legislation across Canada in connection with the collection of system access fees, and seeks to recover direct and punitive damages in an unspecified amount. The class was certified on September 17, 2007, by the Saskatchewan Court of Queen's Bench. On February 20, 2008, the same court removed from the class all customers of the Company who are bound by an arbitration clause, applying two recent decisions of the Supreme Court of Canada. The Company has applied for leave to appeal the certification decision. The Company believes that it has good defences to the action.

Similar proceedings have also been filed by, or on behalf of, plaintiffs' counsel in other provincial jurisdictions.

Should the ultimate resolution of this action differ from management's assessments and assumptions, a material adjustment to the Company's financial position and the results of its operations could result.

11. Reconciliation of non-GAAP measures and definitions 11.1 Earnings before interest, taxes, depreciation and amortization (EBITDA)

TELUS has issued guidance on and reports EBITDA because it is a key measure used by management to evaluate performance of business units, segments and the Company. EBITDA is also utilized in measuring compliance with debt covenants - see Section 11.4 - EBITDA excluding restructuring costs. EBITDA is a measure commonly reported and widely used by investors as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric. The Company believes EBITDA assists investors in comparing a company's performance on a consistent basis without regard to depreciation and amortization, which are non-cash in nature and can vary significantly depending upon accounting methods or non-operating factors such as historical cost.

EBITDA is not a calculation based on Canadian or U.S. GAAP and should not be considered an alternative to Operating income or Net income in measuring the Company's performance, nor should it be used as an exclusive measure of cash flow, because it does not consider the impact of working capital growth, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed in the Consolidated statements of cash flows. Investors should carefully consider the specific items included in TELUS' computation of EBITDA. While EBITDA has been disclosed herein to permit a more complete comparative analysis of the Company's operating performance and debt servicing ability relative to other companies, investors should be cautioned that EBITDA as reported by TELUS may not be comparable in all instances to EBITDA as reported by other companies.

The following is a reconciliation of EBITDA with Net income and Operating income. EBITDA (as adjusted) excludes a charge for introducing a net-cash settlement feature for share option awards granted prior to 2005. EBITDA (as adjusted) is regularly reported to the chief operating decision-maker.

------------------------------------------------------------------------- Quarters ended March 31 ------------------------- ($ millions) 2008 2007 ------------------------------------------------------------------------- Net income 291.0 194.8 Other expense (income) 16.8 3.8 Financing costs 109.4 117.6 Income taxes 109.4 79.3 Non-controlling interest 0.8 1.5 ------------------------------------------------------------------------- Operating income 527.4 397.0 Depreciation 345.7 317.7 Amortization of intangible assets 76.4 49.6 ------------------------------------------------------------------------- EBITDA 949.5 764.3 Net-cash settlement feature expense 0.2 173.5 ------------------------------------------------------------------------- EBITDA (as adjusted) 949.7 937.8 ------------------------------------------------------------------------- -------------------------------------------------------------------------

In addition to EBITDA, TELUS calculates EBITDA less capital expenditures as a simple proxy for cash flow at a consolidated level and in its two reportable segments. EBITDA less capital expenditures may be used for comparison to the reported results for other telecommunications companies over time and is subject to the potential comparability issues of EBITDA described above.

------------------------------------------------------------------------- Quarters ended March 31 ------------------------- ($ millions) 2008 2007 ------------------------------------------------------------------------- EBITDA 949.5 764.3 Capital expenditures (319.7) (381.9) ------------------------------------------------------------------------- EBITDA less capital expenditures 629.8 382.4 Net-cash settlement feature expense 0.2 173.5 ------------------------------------------------------------------------- EBITDA (as adjusted) less capital expenditures 630.0 555.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 11.2 Free cash flow

The Company reports free cash flow because it is a key measure used by management to evaluate its performance. Free cash flow excludes certain working capital changes and other sources and uses of cash, which are disclosed in the Consolidated statements of cash flows. Free cash flow is not a calculation based on Canadian or U.S. GAAP and should not be considered an alternative to the Consolidated statements of cash flows. Free cash flow is a measure that can be used to gauge TELUS' performance over time. Investors should be cautioned that free cash flow as reported by TELUS may not be comparable in all instances to free cash flow as reported by other companies. While the closest GAAP measure is Cash provided by operating activities less Cash used by investing activities, free cash flow is considered relevant because it provides an indication of how much cash generated by operations is available after capital expenditures, but before acquisitions, proceeds from divested assets and changes in certain working capital items (such as trade receivables, which can be significantly distorted by securitization changes that do not reflect operating results, and trade payables).

The following reconciles free cash flow with Cash provided by operating activities less Cash used by investing activities:

------------------------------------------------------------------------- Quarters ended March 31 ------------------------- ($ millions) 2008 2007 ------------------------------------------------------------------------- Cash provided by operating activities 633.5 460.6 Cash (used) by investing activities (1,008.7) (392.3) ------------------------------------------------------------------------- (375.2) 68.3 Net employee defined benefit plans expense 24.9 24.0 Employer contributions to employee defined benefit plans 27.0 33.9 Amortization of deferred gains on sale-leaseback of buildings, amortization of deferred charges and other, net (7.2) 9.1 Reduction (increase) in securitized accounts receivable - 350.0 Non-cash working capital changes except changes from income tax payments (receipts), interest payments (receipts) and securitized accounts receivable, and other 221.3 (14.9) Acquisitions 686.9 - Proceeds from the sale of property and other assets - - Other investing activities 2.1 10.4 ------------------------------------------------------------------------- Free cash flow 579.8 480.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The following shows management's calculation of free cash flow. ------------------------------------------------------------------------- Quarters ended March 31 ------------------------- ($ millions) 2008 2007 ------------------------------------------------------------------------- EBITDA 949.5 764.3 Restructuring costs net of cash payments (3.2) (17.0) Share-based compensation 6.3 138.6 Donations and securitization fees included in Other expense (9.8) (9.3) Cash interest paid (45.0) (23.6) Cash interest received 1.3 1.9 Income taxes received (paid), less investment tax credits received that were previously recognized in either EBITDA or capital expenditures, and other 0.4 7.8 Capital expenditures (319.7) (381.9) ------------------------------------------------------------------------- Free cash flow 579.8 480.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 11.3 Definitions of key wireless operating indicators

These measures are industry metrics and are useful in assessing the operating performance of a wireless company.

Average revenue per subscriber unit per month (ARPU) is calculated as Network revenue divided by the average number of subscriber units on the network during the period and expressed as a rate per month. Data ARPU is a component of ARPU, calculated on the same basis for revenues derived from services such as text messaging, mobile computing, personal digital assistance devices, Internet browser activity and pay-per-use downloads.

Churn per month is calculated as the number of subscriber units disconnected during a given period divided by the average number of subscriber units on the network during the period, and expressed as a rate per month. A prepaid subscriber is disconnected when the subscriber has no usage for 90 days following expiry of the prepaid card.

Cost of acquisition (COA) consists of the total of handset subsidies, commissions, and advertising and promotion expenses related to the initial subscriber acquisition during a given period. As defined, COA excludes costs to retain existing subscribers (retention spend).

COA per gross subscriber addition is calculated as cost of acquisition divided by gross subscriber activations during the period.

EBITDA excluding COA is a measure of operational profitability normalized for the period costs of adding new customers.

Retention spend to Network revenue represents direct costs associated with marketing and promotional efforts aimed at the retention of the existing subscriber base divided by Network revenue.

11.4 Definitions of liquidity and capital resource measures

Dividend payout ratio is defined as the most recent quarterly dividend declared per share multiplied by four and divided by basic earnings per share for the 12-month trailing period. The target guideline for the annual dividend payout ratio is on a prospective basis, rather than on a trailing basis, and is 45 to 55% of sustainable net earnings.

EBITDA - excluding restructuring costs is used in the calculation of Net debt to EBITDA and EBITDA interest coverage, consistent with the calculation of the Leverage Ratio and the Coverage Ratio in credit facility covenants. Restructuring costs were $22.4 million and $55.8 million, respectively, for the 12-month periods ended March 31, 2008 and 2007.

EBITDA - excluding restructuring costs interest coverage is defined as EBITDA excluding restructuring costs divided by Net interest cost. Historically, this measure is substantially the same as the Coverage Ratio covenant in TELUS' credit facilities.

Interest coverage on long-term debt is calculated on a 12-month trailing basis as Net income before interest expense on long-term debt and income tax expense, divided by interest expense on long-term debt. The 12-month period ended March 31, 2007 includes an accrual for estimated costs to settle a lawsuit.

Net debt is a non-GAAP measure whose nearest GAAP measure is Long-term debt, including Current maturities of long-term debt, as reconciled below. Net debt is one component of a ratio used to determine compliance with debt covenants (refer to the description of Net debt to EBITDA below).

------------------------------------------------------------------------- As at March 31 -------------------- ($ millions) 2008 2007 ------------------------------------------------------------------------- Long-term debt including current portion 5,195.2 5,664.1 Debt issuance costs netted against long-term debt 29.3 33.4 Derivative liability 1,105.6 1,087.1 Accumulated Other comprehensive income amounts arising from financial instruments used to manage interest rate and currency risks associated with U.S. dollar denominated debt (128.1) (222.0) Cash and temporary investments (49.1) (534.0) Proceeds from securitized accounts receivable 500.0 150.0 ------------------------------------------------------------------------- Net debt 6,652.9 6,178.6 ------------------------------------------------------------------------- -------------------------------------------------------------------------

The derivative liability in the table above relates to cross currency interest rate swaps that effectively convert principal repayments and interest obligations to Canadian dollar obligations, which at March 31, 2008, is in respect of the US$1,925.0 million debenture maturing June 1, 2011. At March 31, 2007, the derivative liability was in respect of the 2011 debenture and the US$1,166.5 million debenture that matured June 1, 2007. Management believes that Net debt is a useful measure because it incorporates the exchange rate impact of cross currency swaps put into place that fix the value of U.S. dollar denominated debt, and because it represents the amount of long- term debt obligations that are not covered by available cash and temporary investments.

Net debt to EBITDA - excluding restructuring costs is defined as Net debt as at the end of the period divided by the 12-month trailing EBITDA excluding restructuring costs. TELUS' guideline range for Net debt to EBITDA is from 1.5 to 2.0 times. Historically, Net debt to EBITDA excluding restructuring costs is substantially the same as the Leverage Ratio covenant in TELUS' credit facilities.

Net debt to total capitalization provides a measure of the proportion of debt used in the Company's capital structure.

Net interest cost is defined as Financing costs before gains on redemption and repayment of debt, calculated on a 12-month trailing basis. No gains on redemption and repayment of debt were recorded in the respective periods. Losses recorded on the redemption of long-term debt are included in net interest cost. Net interest costs for the 12-months ended March 31, 2008 and 2007 are equivalent to reported quarterly financing costs over those periods.

Total capitalization - book value excludes accumulated Other comprehensive income or loss and is calculated as follows:

------------------------------------------------------------------------- As at March 31 -------------------- ($ millions) 2008 2007 ------------------------------------------------------------------------- Net debt 6,652.9 6,178.6 Non-controlling interests 22.1 25.1 Shareholders equity 6,954.7 6,750.3 Accumulated other comprehensive loss 102.7 147.4 ------------------------------------------------------------------------- Total capitalization - book value 13,732.4 13,101.4 ------------------------------------------------------------------------- -------------------------------------------------------------------------

TELUS Corporation

CONTACT: PRNewswire - - 05/08/2008

/FIRST ADD - TO226 - TELUS Corporation/

EBITDA

Consolidated EBITDA increased by $185.2 million in the first quarter of 2008 when compared to the same period in 2007, mainly due to the $173.5 million net-cash settlement feature expense recorded in the first quarter of 2007. EBITDA, adjusted to exclude the net-cash settlement feature expenses in both periods, increased by $11.9 million in the first quarter of 2008. Wireless EBITDA as adjusted increased by $38.4 million mainly due to higher Network revenue and a lower cost of acquisition (COA) expense, partially offset by higher expenditures for retention and to support business growth. Wireline EBITDA as adjusted decreased by $26.5 million, mainly due to increased costs of sales, initial expenditures to implement services for new enterprise customers and increased costs to maintain higher service levels.

Depreciation

Depreciation increased by $28.0 million in the first quarter of 2008 when compared to the same period in 2007, due primarily to the reduction in estimated useful service lives for certain digital circuit switching and other assets, as well as growth in capital assets, partly offset by an increase in other fully depreciated assets.

Amortization of intangible assets

Amortization increased by $26.8 million in the first quarter of 2008 when compared to the same period in 2007, due mainly to: (i) $18 million additional amortization for a new wireline billing and client care system that was put into service in March 2007; (ii) approximately $11 million for new acquisitions; and (iii) amortization in the first quarter of 2007 being reduced by approximately $5 million to recognize investment tax credits, then determined eligible by the tax authority, for assets capitalized in prior years that were fully amortized. These increases were partly offset by a lower expense due to other software and subscriber base assets becoming fully amortized.

Operating income

Operating income increased by $130.4 million in the first quarter of 2008 when compared to the same period in 2007, largely due to the $173.5 million net-cash settlement feature expense recorded in the first quarter of 2007. Excluding net-cash settlement feature expenses, operating income (as adjusted) decreased by $42.9 million mainly to increased depreciation and amortization expenses, partly offset by improved EBITDA (as adjusted).

Other income statement items ------------------------------------------------------------------------- Other expense, net Quarters ended March 31 ($ millions) 2008 2007 Change ------------------------------------------------------------------------- 16.8 3.8 n.m. -------------------------------------------------------------------------

Other expense includes accounts receivable securitization expense, charitable donations, gains and losses on disposal of real estate, and income (loss) or impairments in equity or portfolio investments. Accounts receivable securitization expenses were $5.9 million in the first quarter of 2008, an increase of $2.7 million from the same period in 2007 due mainly to an increased cost of funds and higher average proceeds from securitized receivables (see Section 7.6 Accounts receivable sale). Net losses on investments in 2008, including valuation adjustments on investments held for trading, were $9.6 million.

------------------------------------------------------------------------- Financing costs Quarters ended March 31 ($ millions) 2008 2007 Change ------------------------------------------------------------------------- Interest on long-term debt, short-term obligations and other 111.8 119.3 (6.3)% Foreign exchange losses (gains) 0.3 1.9 (84.2)% Capitalized interest during construction (1.3) - n.m. Interest income (1.4) (3.6) (61.1)% ------------------------------------------------------------------------- 109.4 117.6 (7.0)% ------------------------------------------------------------------------- ------------------------------------------------------------------------- n.m. - not meaningful -------------------------------------------------------------------------

Interest expenses decreased $7.5 million in the first quarter of 2008 when compared to the same period in 2007, due primarily to financing activities in the first half of 2007 that resulted in a lower effective interest rate, partly offset by a higher average debt balance in 2008 and the initial application in 2007 of the effective rate method for issue costs.

Interest income decreased $2.2 million in first quarter of 2008 when compared to the same period in 2007, due primarily to lower average temporary investment balances.

------------------------------------------------------------------------- Income taxes Quarters ended March 31 ($ millions) 2008 2007 Change ------------------------------------------------------------------------- Basic blended federal and provincial tax at statutory income tax rates 124.0 92.3 34.3 % Revaluation of future income tax liability to reflect future statutory income tax rates (18.2) (3.7) - Share option award compensation 1.4 (7.7) - Other 2.2 (1.6) - ------------------------------------------------------------------------- 109.4 79.3 38.0 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- Blended federal and provincial statutory tax rates (%) 30.9 33.5 (2.6)pts Effective tax rates (%) 27.3 28.8 (1.5)pts -------------------------------------------------------------------------

The blended federal and provincial statutory income tax expense increased in the first quarter of 2008 when compared to the same period in 2007, due to the 45.6% increase in income before taxes, partly offset by the lower blended statutory tax rate. A one per cent reduction in B.C. provincial income tax rates beginning July 1, 2008 was substantively enacted in the first quarter of 2008. Reductions to federal income tax rates for 2008 to 2012 were enacted in the second and fourth quarters of 2007. The effective tax rates were lower than the statutory tax rates due to revaluations of future income tax liabilities resulting from enacted reductions to future provincial and federal income tax rates, as well as future tax rates being applied to temporary differences.

Based on the assumption of the continuation of the rate of TELUS earnings, the existing legal entity structure, and no substantive changes to tax regulations, the Company currently expects cash income tax payments to be relatively low in 2008 with expected cash collections exceeding expected payments. In 2009, income tax payments are expected to increase substantially. The blended statutory income tax rate is expected to be 30.5 to 31.5% in 2008. See Caution regarding forward-looking statements at the beginning of Management's discussion and analysis.

------------------------------------------------------------------------- Non-controlling interests Quarters ended March 31 ($ millions) 2008 2007 Change ------------------------------------------------------------------------- 0.8 1.5 (46.7)% -------------------------------------------------------------------------

Non-controlling interests represents minority shareholders' interests in several small subsidiaries.

Comprehensive income

Currently, the concept of comprehensive income for purposes of Canadian GAAP, in the Company's specific instance, is primarily to include changes in shareholders' equity arising from unrealized changes in the fair values of financial instruments. The calculation of earnings per share is based on Net income and Common Share and Non-Voting Share income, as required by GAAP.

5.4 Wireline segment results ------------------------------------------------------------------------- Operating revenues - wireline segment Quarters ended March 31 ($ millions) 2008 2007 Change ------------------------------------------------------------------------- Voice local(1) 501.7 532.1 (5.7)% Voice long distance 179.1 187.6 (4.5)% Data(2) 506.2 424.8 19.2 % Other 63.6 61.1 4.1 % ------------------------------------------------------------------------- External operating revenue(3) 1,250.6 1,205.6 3.7 % Intersegment revenue 30.8 25.1 22.7 % ------------------------------------------------------------------------- Total operating revenues 1,281.4 1,230.7 4.1 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Voice local revenue decreased by approximately 3% in the first quarter of 2008 when the impact of regulatory adjustments are excluded from both periods. (2) Data revenue increased by approximately 8% in the first quarter of 2008, when revenues from acquisitions are excluded from 2008 and the impact of mandated retroactive competitor price reductions are excluded from both periods. (3) External operating revenue increased by approximately one per cent, excluding regulatory adjustments and revenues from acquisitions. -------------------------------------------------------------------------

Wireline revenues increased $50.7 million in the first quarter of 2008 when compared with the same period in 2007, due to the following:

- Voice local revenue decreased by $30.4 million in the first quarter of 2008 when compared with the same period in 2007. The decrease was mainly due to two factors: (i) lower revenues from basic access and optional enhanced service revenues caused by increased competition for residential subscribers, offset in part by growth in business local services; and (ii) approximately $13 million lower recoveries from the price cap deferral account. The 2007 deferral account recovery of approximately $14.5 million included previously incurred amounts associated with mandated local number portability and start- up costs, and it offset unfavourable mandated retroactive rate adjustments in the same period for basic data revenue pursuant to two CRTC decisions (see the discussion for wireline data revenue below). ------------------------------------------------------------------------- Network access lines As at March 31 (000s) 2008 2007 Change ------------------------------------------------------------------------- Residential network access lines 2,545 2,741 (7.2)% Business network access lines 1,820 1,785 2.0 % ---------- ---------- ---------- Total network access lines 4,365 4,526 (3.6)% Quarters ended March 31 (000s) 2008 2007 Change ------------------------------------------------------------------------- Change in residential network access lines (51) (34) (50.0)% Change in business network access lines 12 12 - % ---------- ---------- ---------- Change in total network access lines (39) (22) (77.3)% -------------------------------------------------------------------------

Residential line losses include the effect of increased competition from resellers and VoIP competitors (including cable-TV companies), as well as technological substitution to wireless services. The increase in business lines was experienced in Ontario and Quebec urban non-incumbent areas.

- Voice long distance revenues decreased by $8.5 million in the first quarter of 2008 when compared with the same period in 2007, due primarily to lower average per-minute rates from industry-wide price competition, and lower minute volumes. - Wireline segment data revenues increased by $81.4 million in the first quarter of 2008 when compared with the same period in 2007, due primarily to: (i) revenues from two acquisitions in January 2008; (ii) increased Internet, enhanced data and hosting service revenues from growth in business services and high-speed Internet subscribers; (iii) increased broadcast, videoconferencing and data equipment sales; (iv) mandatory retroactive rate reductions recorded in 2007 (see next paragraph); and (v) increased provision of digital entertainment services to consumers in urban incumbent markets. The underlying growth absent acquisitions and regulatory adjustments was approximately 8%.

Retroactive rate reductions of approximately $11 million were recorded in the first quarter of 2007, pursuant to CRTC Decision 2007-6 (digital network access link charges) and CRTC Decision 2007-10 (relating to basic service extension feature charges).

------------------------------------------------------------------------- Internet subscribers As at March 31 (000s) 2008 2007 Change ------------------------------------------------------------------------- High-speed Internet subscribers 1,040.5 948.8 9.7 % Dial-up Internet subscribers 146.4 181.6 (19.4)% ---------- ---------- ---------- Total Internet subscribers 1,186.9 1,130.4 5.0 % Quarters ended March 31 (000s) 2008 2007 Change ------------------------------------------------------------------------- High-speed Internet net additions 20.3 32.1 (36.8)% Dial-up Internet net reductions (8.9) (12.5) 28.8 % ---------- ---------- ---------- Total Internet subscriber net additions 11.4 19.6 (41.8)% -------------------------------------------------------------------------

High-speed Internet subscriber net additions decreased in the first quarter of 2008 when compared to the same period in 2007, due to competitive activity and a maturing market.

- Other revenue increased by $2.5 million in the first quarter of 2008 when compared with the same period in 2007, due mainly to increased voice equipment sales. - Intersegment revenues increased for services provided by the wireline segment to the wireless segment. These revenues are eliminated upon consolidation together with the associated expense in the wireless segment. ------------------------------------------------------------------------- Operating expenses - wireline segment Quarters ended March 31 ($ millions, except employees) 2008 2007 Change ------------------------------------------------------------------------- Salaries, benefits and other employee-related costs, before net-cash settlement feature 459.7 428.9 7.2 % Net-cash settlement feature expense 0.6 153.1 (99.6)% Other operations expenses 367.7 323.4 13.7 % ------------------------------------------------------------------------- Operations expense 828.0 905.4 (8.5)% Restructuring costs 6.5 4.4 47.7 % ------------------------------------------------------------------------- Total operating expenses 834.5 909.8 (8.3)% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operations expense (as adjusted)(1) 827.4 752.3 10.0 % Total operating expenses (as adjusted)(1) 833.9 756.7 10.2 % ------------------------------------------------------------------------- (1) Excluding net-cash settlement feature expenses. -------------------------------------------------------------------------

Total Wireline operating expenses decreased by $75.3 million in the first quarter of 2008 when compared to the same period in 2007, primarily due to the net-cash settlement feature expense recorded in 2007. Total operating expenses adjusted to exclude the net-cash settlement feature expense increased by $77.2 million, mainly due to acquisitions, increased cost of sales, initial costs incurred to implement services for several new enterprise customers, and expenditures to maintain higher service levels.

- Salaries, benefits and employee-related costs increased by $30.8 million in the first quarter of 2008 when compared with the same period in 2007. The increase resulted from more staff for the provision of outsourcing services to customers, including Emergis operations beginning in 2008, as well as annual compensation increases. - Other operations expenses increased by $44.3 million in the first quarter of 2008 when compared with the same period in 2007. The increase was primarily due to cost of sales for increased data equipment sales with lower margins, expenses in acquired companies, and higher costs for the provision of digital entertainment services. External labour costs increased to maintain higher service levels and to implement services for new enterprise customers. Offnet facility expenses also increased to support new enterprise customers. - Restructuring costs increased by $2.1 million in the first quarter of 2008 when compared to the same period in 2007. Restructuring charges in 2008 were for a number of smaller initiatives under the Company's competitive efficiency program. ------------------------------------------------------------------------- EBITDA ($ millions) and EBITDA margin (%) Quarters ended March 31 Wireline segment 2008 2007 Change ------------------------------------------------------------------------- EBITDA 446.9 320.9 39.3 % EBITDA (as adjusted)(1) 447.5 474.0 (5.6)% EBITDA margin 34.9 26.1 8.8 pts EBITDA margin (as adjusted) 34.9 38.5 (3.6)pts ------------------------------------------------------------------------- (1) Excluding net-cash settlement feature expenses of $0.6 million and $153.1 million, respectively, in the first quarter of 2008 and 2007. -------------------------------------------------------------------------

Wireline segment EBITDA increased by $126.0 million in the first quarter of 2008 when compared with the same period in 2007, mainly due to the net-cash settlement feature expense recorded in the year-ago period. Wireline EBITDA (as adjusted) decreased by $26.5 million due to lower margins on increased data equipment sales, higher costs for the provision of digital entertainment services, initial costs to implement services for new enterprise customers, and increased costs to maintain higher service levels.

5.5 Wireless segment results ------------------------------------------------------------------------- Operating revenues - wireless segment Quarters ended March 31 ($ millions) 2008 2007 Change ------------------------------------------------------------------------- Network revenue 1,037.2 944.5 9.8 % Equipment revenue 62.8 55.5 13.2 % ------------------------------------------------------------------------- External operating revenue 1,100.0 1,000.0 10.0 % Intersegment revenue 7.0 6.3 11.1 % ------------------------------------------------------------------------- Total operating revenues 1,107.0 1,006.3 10.0 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Key wireless operating indicators As at March 31 (000s) 2008 2007 Change ------------------------------------------------------------------------- Subscribers - postpaid 4,512.9 4,136.8 9.1 % Subscribers - prepaid 1,143.4 1,007.0 13.5 % ---------- ---------- ---------- Subscribers - total 5,656.3 5,143.8 10.0 % Proportion of subscriber base that is postpaid (%) 79.8 80.4 (0.6)pts Digital POPs(1) covered including roaming/resale (millions)(2) 31.9 31.0 2.9 % Quarters ended March 31 2008 2007 Change -------------------------------- Subscriber gross additions - postpaid 204.2 173.3 17.8 % Subscriber gross additions - prepaid 141.0 122.7 14.9 % ---------- ---------- ---------- Subscriber gross additions - total 345.2 296.0 16.6 % Subscriber net additions - postpaid 72.4 60.8 19.1 % Subscriber net additions - prepaid 16.0 29.7 (46.1)% ---------- ---------- ---------- Subscriber net additions - total 88.4 90.5 (2.3)% ARPU ($)(3) 61.88 62.03 (0.2)% Churn, per month (%)(3) 1.53 1.35 0.18 pts COA (4) per gross subscriber addition ($)(3) 319 438 (27.2)% Average minutes of use per subscriber per month (MOU) 394 382 3.1 % EBITDA (as adjusted)(5) to network revenue (%) 48.4 49.1 (0.7)pts Retention spend to network revenue(3)(%) 8.8 7.3 1.5 pts EBITDA (as adjusted) excluding COA(3) ($ millions) 612.2 593.3 3.2 % ------------------------------------------------------------------------- pts - percentage points (1) POPs is an abbreviation for population. A POP refers to one person living in a population area, which in whole or substantial part is included in the coverage areas. (2) At March 31, 2008, TELUS' wireless PCS digital population coverage included expanded coverage of approximately 7.5 million PCS POPs due to roaming/resale agreements principally with Bell Mobility (Bell Canada). (3) See Section 11.3 Definitions of key wireless operating indicators. These are industry measures useful in assessing operating performance of a wireless company, but are not defined under accounting principles generally accepted in Canada and the U.S. (4) Cost of acquisition. (5) EBITDA excluding net-cash settlement feature (recovery) expense of $(0.4) million and $20.4 million, respectively, in the first quarter of 2008 and 2007. -------------------------------------------------------------------------

Wireless segment revenues increased by $100.7 million in the first quarter of 2008 when compared with the same period in 2007, due to the following:

- Network revenue increased by $92.7 million in the first quarter of 2008 when compared with the same period in 2007, primarily due to the 10% expansion in the subscriber base over the past twelve months. Wireless data revenues increased 53% to $147.3 million, which now represents 14% of Network revenue. This is compared to $96.2 million or 10% of Network revenue, in the same period in 2007. This growth reflects strength in text messaging and RIM/BlackBerry service revenues driven by increased usage and data roaming, as well as continued migration of existing subscribers to full function smartphones and EVDO-capable handsets. Blended ARPU of $61.88 in the first quarter of 2008 was relatively stable, down by 15 cents, when compared to the same period in 2007, and notably, an improvement from the fourth quarter 2007 year-over- year ARPU decline of 80 cents. Data ARPU increased $2.45 or 39% to $8.72 in the first quarter of 2008, as compared to the same period in 2007, but was offset by declining Voice ARPU. Voice ARPU decreased $2.60 or 4.6% to $53.16 in the first quarter of 2008, as compared to the same period in 2007, due to a shifting product mix driven by prepaid subscriber loading, increased use of included-minute rate plans, pricing competition in the business and value segments of the market, and lower voice roaming activity. Certain lower volume Mike(R) Push To Talk(TM) service subscribers are being actively migrated to PCS smartphones for the enhanced data applications, which is resulting in higher ARPU for these customers after migration. Gross subscriber additions increased by 16.6% to 345,200 in the first quarter of 2008 as compared to the same period in 2007. The postpaid/prepaid subscriber mix reflected in gross additions was approximately 59%/41% in both periods. Total net additions for the first quarter of 2008 declined slightly in the first quarter of 2008 when compared to the same period in 2007, but reflected an improvement in the absolute number and proportion of postpaid net additions. The 72,400 postpaid subscriber net additions in the first quarter of 2008 represented 81.9% of all net additions as compared with 60,800 or 67.2% of all net additions for the same period in 2007. Total net subscriber additions were down marginally in the first quarter of 2008 as compared to the same period in 2007, attributed to increased churn rates following the introduction of wireless number portability in March 2007. The blended churn rate of 1.53% in the first quarter of 2008 increased from 1.35% in the same period in 2007, driven by increasing prepaid churn and the shifting product mix towards prepaid. Total deactivations were 256,800 in the first quarter of 2008 as compared to 205,500 for the same period in 2007; the increase reflects higher churn rates and a larger subscriber base. - Equipment sales, rental and service revenue increased by $7.3 million in the first quarter of 2008 when compared with the same period in 2007, due largely to the increase in gross subscriber additions and incremental handset migrations to full function smartphones to support current and potential future data revenue growth. - Intersegment revenues increased for services provided by the wireless segment to the wireline segment. Intersegment revenues are eliminated upon consolidation along with the associated expense in the wireline segment. ------------------------------------------------------------------------- Operating expenses - wireless segment(1) Quarters ended March 31 ($ millions, except employees) 2008 2007 Change ------------------------------------------------------------------------- Equipment sales expenses 152.6 145.4 5.0 % Network operating expenses 140.7 114.6 22.8 % Marketing expenses 103.2 100.8 2.4 % General and administration expenses 207.7 201.8 2.9 % ------------------------------------------------------------------------- Operations expense 604.2 562.6 7.4 % Restructuring costs 0.2 0.3 (33.3)% ------------------------------------------------------------------------- Total operating expenses 604.4 562.9 7.4 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operations expense (as adjusted)(1) 604.6 542.2 11.5 % Total operating expenses (as adjusted)(1) 604.8 542.5 11.5 % ------------------------------------------------------------------------- (1) Excluding net-cash settlement feature (recovery) expense of $(0.4) million and $20.4 million, respectively, in the first quarter of 2008 and 2007. -------------------------------------------------------------------------

Wireless segment total operating expenses increased by $41.5 million in the first quarter of 2008 when compared with the same period in 2007. Total operating expenses adjusted to exclude the net-cash settlement feature increased by $62.3 million to promote, acquire, support and retain the 10% growth in the subscriber base and Network revenue.

- Equipment sales expenses increased by $7.2 million in the first quarter of 2008 when compared with the same period in 2007, due to the increase in gross subscriber additions and incremental handset migrations to full function smartphones to support data revenue growth. - Network operating expenses increased by $26.1 million in the first quarter of 2008 when compared with the same period in 2007. The increase was primarily in support of data revenue growth and driven by data content, licensing costs related to data services and increased roaming costs related to data usage. - Marketing expenses in the first quarter of 2008 increased by $2.4 million, when compared to the same period in 2007, due to higher advertising and promotion costs, consistent with the introduction of a new brand in the market. COA per gross subscriber addition decreased by $119 or 27.2% in the first quarter of 2008 as compared to the same period in 2007, in part due to lower advertising and promotion costs on a per unit basis, the mix of incremental gross subscriber loading towards lower variable costs channels, and lower equipment subsidies. Total COA expenditures were $110.0 million in the first quarter of 2008, as compared with $129.5 million in 2007. Retention costs as a percentage of network revenue increased to 8.8% in the first quarter of 2008, up from 7.3% in the same period in 2007 due to incremental handset upgrades to full function smartphones to support data revenue growth and the ongoing Mike service to PCS conversion program for non-push-to-talk-centric users. - General and administration increased by $5.9 million in the first quarter of 2008 when compared with the same period in 2007. General and administration expenses adjusted to exclude the net-cash settlement feature, increased by $26.7 million, due primarily to employee costs to support increasingly complex data devices, services and subscriber base, and to a lesser extent, the expansion of company-owned retail stores and an increase in bad debt expense. - Restructuring costs were for a number of smaller initiatives under the Company's competitive efficiency program. ------------------------------------------------------------------------- EBITDA ($ millions) and EBITDA margin (%) Quarters ended March 31 Wireless segment 2008 2007 Change ------------------------------------------------------------------------- EBITDA 502.6 443.4 13.4 % EBITDA (as adjusted)(1) 502.2 463.8 8.3 % EBITDA margin 45.4 44.1 1.3 pts EBITDA margin (as adjusted) 45.4 46.1 (0.7)pts ------------------------------------------------------------------------- (1) Excluding net-cash settlement feature (recovery) expense of $(0.4) million and $20.4 million, respectively, in the first quarter of 2008 and 2007. -------------------------------------------------------------------------

Wireless segment EBITDA increased by $59.2 million in the first quarter of 2008 when compared with the same period in 2007, mainly due to the net-cash settlement feature expense recorded in 2007. Wireless EBITDA adjusted to exclude the net-cash settlement feature, increased by $38.4 million. The increase in EBITDA (as adjusted) was due to higher Network revenue and a lower COA expense (inclusive of increased advertising and promotions expenses to introduce a new brand), partially offset by higher retention spend, increased network costs related to usage, and higher general and administrative costs to support business growth.

6. Financial condition

The following are changes in the Consolidated balance sheets in the three-month period ended March 31, 2008.

------------------------------------------------------------------------- Mar. 31, Dec. 31, Explanation of As at -------------------- the change in ($ millions) 2008 2007 Changes balance ------------------------------------------------------------------------- Current Assets Cash and 49.1 19.9 29.2 146.7 % See Section 7: temporary Liquidity and investments, capital net resources Short-term 116.0 42.4 73.6 173.6 % Increased investments investments of surplus cash Accounts 687.9 710.9 (23.0) (3.2)% Mainly due to a receivable usual seasonal decrease in accounts receivable turnover (approximately 48 days versus 49 days), net of an increase from acquisitions. Securitized accounts receivable did not change. Income and 22.3 120.9 (98.6) (81.6)% Mainly due to other taxes receivables from receivable federal tax authorities moving into a net payable position with current income tax expense booked during the first quarter Inventories 228.6 243.3 (14.7) (6.0)% Primarily a reduction in wireless handset inventory volume and cost Prepaid 268.0 199.5 68.5 34.3 % Primarily expenses prepayment of and other annual wireless licence fees and prepaid employee benefits net of amortization Current 4.2 3.8 0.4 10.5 % Fair value portion of adjustments to derivative handset, assets restricted share unit and other operational hedges ------------------------------------------------------------------------- Current Liabilities Accounts 1,412.4 1,476.6 (64.2) (4.3)% Mainly lower payable payroll and and accrued other employee- liabilities related liabilities, lower trade payables associated with lower sequential quarterly expenditures, net of liabilities for acquisitions and a seasonal increase in interest payable Income and 29.3 7.3 22.0 n.m. An increase due other taxes to current tax payable expense booked in the quarter, partly offset by reclassification of receivable from federal tax authorities Restructuring 31.7 34.9 (3.2) (9.2)% Payments under accounts previous and payable and current programs accrued exceeded new liabilities obligations Dividends 145.5 - 145.5 n.m. The first payable quarter dividend, payable to shareholders of record on March 11, was paid on April 1, 2008 Advance 634.6 631.6 3.0 0.5 % - billings and customer deposits Current 7.8 5.4 2.4 44.4 % An increase in maturities capital leases, of long- primarily from term debt the acquisition of Emergis Current portion 43.4 26.6 16.8 63.2 % Fair value of derivative adjustments for liabilities share option hedges Current 479.8 503.6 (23.8) (4.7)% A decrease in portion of temporary future income differences for taxes current assets and liabilities, as well as changes in partnership taxable income that will be allocated in the next 12 months ------------------------------------------------------------------------- Working (1,408.4) (1,345.3) (63.1) (4.7)% Includes changes capital(1) in net income taxes payable and the dividend payable at March 31, partly offset by increases in cash, short-term investments and prepaid expenses ------------------------------------------------------------------------- Capital 11,364.8 11,122.0 242.8 2.2 % Includes Assets, Net $326.2 million for acquired software, customer contracts and related customer relationships and other capital assets, plus first quarter capital expenditures, net of depreciation and amortization. See also Section 5.3 Consolidated results from operations - Depreciation, Amortization of intangible assets, as well as Section 7.2 Cash used by investing activities ------------------------------------------------------------------------- Other Assets Deferred 1,374.6 1,318.0 56.6 4.3 % Primarily charges pension plan contributions and pension recoveries resulting from favourable returns on plan assets in 2007 Investments 30.0 38.9 (8.9) (22.9)% Mainly the value of Emergis shares purchased in the open market in December 2007 that were exchanged at the close of acquisition in January 2008 Goodwill 3,541.2 3,168.0 373.2 11.8 % Primarily January 2008 acquisitions of Emergis and Fastvibe ------------------------------------------------------------------------- Long-Term Debt 5,187.4 4,583.5 603.9 13.2 % Includes an increase in amounts drawn on the 2012 credit facility and an increase in commercial paper due primarily to the two January acquisitions, as well as an increase in the Canadian dollar value of 2011 U.S. dollar Notes ------------------------------------------------------------------------- Other 1,647.5 1,717.9 (70.4) (4.1)% Primarily Long-Term changes in U.S. Liabilities dollar exchange rates and a fair value adjustment of the derivative liabilities associated with 2011 U.S. dollar Notes ------------------------------------------------------------------------- Future 1,090.5 1,048.1 42.4 4.0 % An increase in Income Taxes temporary differences for long-term assets and liabilities, partly offset by a revaluation resulting from substantively enacted reductions in future provincial income tax rates ------------------------------------------------------------------------- Non- 22.1 25.9 (3.8) (14.7)% Primarily Controlling payment of Interests dividends by a subsidiary to a non-controlling interest, net of non-controlling interests' share of earnings ------------------------------------------------------------------------- Shareholders' Equity Common 6,954.7 6,926.2 28.5 0.4 % Primarily Net equity income of $291.0 million, less dividends declared of $145.5 million and NCIB purchases of $122.5 million ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Current assets subtracting Current liabilities - an indicator of the ability to finance current operations and meet obligations as they fall due. ------------------------------------------------------------------------- 7. Liquidity and capital resources

Cash and temporary investments increased by $29.2 million during the first quarter of 2008, down from the same period in 2007, due mainly to January 2008 acquisitions and related financing activities, as well as 2007 financing activities where $1 billion of debt issues in March 2007 were made in advance of a $1.5 billion June 2007 Note maturity.

------------------------------------------------------------------------- ($ millions) Quarters ended March 31 2008 2007 Change ------------------------------------------------------------------------- Cash provided by operating activities 633.5 460.6 37.5 % Cash used by investing activities (1,008.7) (392.3) (157.1)% Cash provided by financing activities 404.4 477.2 (15.3)% ------------------------------------------------------------------------- Increase in cash and temporary investments, net 29.2 545.5 (94.6)% ------------------------------------------------------------------------- ------------------------------------------------------------------------- 7.1 Cash provided by operating activities

Cash provided by operating activities increased by $172.9 million in the first quarter of 2008 when compared with the same period in 2007, including the following changes:

- A $185.2 million increase in EBITDA as described in Section 5.2 Consolidated results from operations; - A $132.3 million decrease in share-based compensation expense in excess of payments, which partially offsets the increase in EBITDA; - An increase of $21.4 million in Interest paid, mainly semi-annual interest payments for $1 billion of Notes issued in March 2007 and an increase drawn bank facilities and commercial paper in 2008, net of repayment of forward starting interest rate swaps in the first quarter of 2007; - No change in proceeds from securitized accounts receivable in the first quarter of 2008 as compared to a reduction of $350 million in the first quarter of 2007, for a comparative increase in cash flow of $350 million (see Section 7.6 Accounts receivable sale); - An increase of $73.6 million of cash used for Short-term investments during the first quarter of 2008; - Other changes in non-cash working capital for the respective periods. 7.2 Cash used by investing activities

Cash used by investing activities increased by $616.4 million in the first quarter of 2008 when compared with the same period in 2007, due to acquisitions of Emergis and Fastvibe in January 2008 for a total of $686.9 million, net of acquired cash. This was partly offset by lower capital expenditures in 2008, as discussed further below.

Assets under construction were $670.3 million at March 31, 2008, up by $111.3 million from December 31, 2007, reflecting increases in property, plant and equipment under construction and new phases of the consolidated wireline billing and client care system.

------------------------------------------------------------------------- Capital expenditures Quarters ended March 31 ($ in millions, ratios in %) 2008 2007 Change ------------------------------------------------------------------------- Wireline segment 255.2 270.7 (5.7)% Wireless segment 64.5 111.2 (42.0)% ------------------------------------------------------------------------- TELUS consolidated 319.7 381.9 (16.3)% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Capital expenditure intensity ratio(1) 13.6 17.3 (3.7)pts EBITDA (as adjusted) less capital expenditures(2) 630.0 555.9 13.3 % ------------------------------------------------------------------------- (1) Capital expenditure intensity is measured by dividing capital expenditures by operating revenues. This measure provides a method of comparing the level of capital expenditures to other companies of varying size within the same industry. (2) See Section 11.1 for the calculation and description. -------------------------------------------------------------------------

Capital intensity in the first quarter of 2008 reflects a Wireline capital intensity level of 20% (2007 Q1 was 22%) and a Wireless capital intensity level of 6% (2007 Q1 was 11%). TELUS' EBITDA (as adjusted) less capital expenditures increased by $74.1 million in the first quarter of 2008 when compared to the same period in 2007, mainly due to the lower total capital spending and higher Wireless EBITDA.

- Wireline segment capital expenditures decreased by $15.5 million in the first quarter of 2008 when compared to the same period in 2007, due primarily to the initial scale of ADSL2+ build in 2007, as well as lower demand in 2008 for network access builds resulting from more moderate residential construction activity in B.C. and Alberta, partly offset by an increase in upfront expenditures to support new enterprise customers. Wireline cash flow (EBITDA as adjusted less capital expenditures) was $192.3 million in the first quarter of 2008, a decrease of 5.4% when compared to the same period in 2007 resulting from lower adjusted EBITDA as described in Section 5.4. - Wireless segment capital expenditures decreased by $46.7 million in the first quarter of 2008 when compared to the same period in 2007. Capital expenditures this quarter were at a seasonally normal level. First quarter 2007 investments were unusually high due to cell site capacity and coverage spending, including network upgrades for high- speed EVDO RevA service, as well as expenditures to implement wireless number portability. Wireless cash flow (EBITDA as adjusted less capital expenditures) was $437.7 million in the first quarter of 2008, an increase of 24.1% when compared to the same period in 2007. The increase resulted from lower capital spending and increased adjusted EBITDA as described in Section 5.5. 7.3 Cash provided by financing activities

Cash provided by financing activities decreased by $72.8 million in the first quarter of 2008 when compared with the same period in 2007.

- The declared dividend in the first quarter of 2008 was 45 cents per share, while the declared dividend in the first quarter of 2007 was 37.5 cents per share. Cash dividends paid were zero in the first quarter of 2008 because the declared first quarter dividend was paid on Tuesday, April 1, 2008. In the first quarter of 2007, cash dividends of $125.9 million were remitted on March 31 as the April 1 payment date was on a weekend. - The Company's renewed NCIB program (Program 4) came into effect on December 20, 2007 and is set to expire on December 19, 2008. At March 31, 2008, the Company has repurchased 12% of the maximum eight million Common Shares and 17.5% of the maximum 12 million Non- Voting Shares under Program 4. Since December 20, 2004, TELUS has repurchased 20.2 million of its Common Shares and 35.7 million of its Non-Voting Shares for $2.64 billion under four NCIB programs, consistent with the Company's intent to return cash to shareholders. Shares repurchased for cancellation under normal course issuer bid programs ------------------------------------------------------------------------- Shares repurchased ------------------------------------ Common Non-Voting Shares Shares Total ------------------------------------------------------------------------- 2007 - Program 3 First quarter 1,975,000 1,530,000 3,505,000 ------------------------------------------------------------------------- 2008 - Program 4 First quarter 950,000 1,968,900 2,918,900 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Purchase cost ($ millions) ------------------------------------ Charged to Charged to Share Retained capital(1) earnings(2) Paid ------------------------------------------------------------------------- 2007 - Program 3 First quarter 57.8 142.9 200.7 ------------------------------------------------------------------------- 2008 - Program 4 First quarter 54.3 68.2 122.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Represents the book value of shares repurchased. (2) Represents the cost in excess of the book value of shares repurchased. ------------------------------------------------------------------------- - In the first quarter of 2008, the Company increased utilization of bank facilities and commercial paper for general corporate purposes, including acquisitions in January. The balance of bank facilities drawn from the 2012 revolving credit facility was $320.9 million at March 31, 2008 (undrawn at December 31, 2007). Commercial paper outstanding was $800 million at March 31, 2008, up from $587.2 million at December 31, 2007.

Subsequent to the quarter end, on April 9, 2008, TELUS successfully closed an offering of 5.95%, Series CE, Notes due April 15, 2015, for aggregate gross proceeds of approximately $500 million. The Notes require that the Company make an offer to repurchase the Series CE Notes at a price equal to 101% of their principal plus accrued and unpaid interest to the date of repurchase upon the occurrence of a change in control triggering event. The net proceeds of the offering are expected to be used for general corporate purposes including repayment of amounts under the 2012 revolving credit facility, and to refinance short-term financing sources.

7.4 Liquidity and capital resource measures ------------------------------------------------------------------------- Liquidity and capital resource measures As at, or 12-month periods ended, March 31 2008 2007 Change ------------------------------------------------------------------------- Components of debt and coverage ratios(1) ($ millions) ------------------------------------------------------------------------- Net debt 6,652.9 6,178.6 474.3 Total capitalization - book value 13,732.4 13,101.4 631.0 EBITDA - excluding restructuring costs 3,796.9 3,566.2 230.7 Net interest cost 431.9 495.3 (63.4) ------------------------------------------------------------------------- Debt ratios ------------------------------------------------------------------------- Fixed-rate debt as a proportion of total indebtedness (%) 75.9 97.9 (22.0)pts Average term to maturity of debt (years) 4.7 5.0 (0.3) Net debt to total capitalization (%)(1) 48.4 47.2 1.2 pts Net debt to EBITDA - excluding restructuring costs(1) 1.8 1.7 0.1 ------------------------------------------------------------------------- Coverage ratios(1) ------------------------------------------------------------------------- Interest coverage on long-term debt 4.5 3.9 0.6 EBITDA - excluding restructuring costs interest coverage 8.8 7.2 1.6 ------------------------------------------------------------------------- Other measures ------------------------------------------------------------------------- Free cash flow ($ millions)(2) 1,672.2 1,435.0 237.2 Dividend payout ratio (%)(1) 44 45 (1)pt ------------------------------------------------------------------------- (1) See Section 11.4 Definitions of liquidity and capital resource measures. (2) Twelve-month trailing measurement. See Section 11.2 Free cash flow for the definition. -------------------------------------------------------------------------

Net debt increased due to a lower cash balance, a higher balance of securitized accounts receivable and increased long-term debt. Total capitalization increased because of higher net debt and lower share capital (due to share repurchases), partly offset by higher retained earnings and accumulated other comprehensive income. When compared to one-year earlier, Net debt to EBITDA of 1.8 times at March 31, 2008, was a net increase of 0.1 as a result of a 0.1 decrease due to improved 12-month trailing EBITDA before restructuring costs, and a 0.2 increase because of higher net debt. The ratio remained within the long-term target policy range of 1.5 to 2.0 times. The average term to maturity of debt of 4.7 years at March 31, 2008 decreased from 5.0 years at March 31, 2007 due to commercial paper issues since May 2007 and increased amounts drawn against the 2012 credit facility, net of repayment of matured Notes on June 1, 2007. The proportion of debt on a fixed rate basis decreased for the same reasons, as well as an increase in proceeds from securitized accounts receivable.

Interest coverage on long-term debt had an increase of 0.6 as a result of a 0.4 increase due to a lower interest expense and a 0.2 increase due to higher income before income taxes and interest expense. The EBITDA interest coverage ratio had an increase of 1.6 as a result of a 1.1 increase due to higher EBITDA excluding restructuring costs and a 0.5 increase due to lower net interest costs. Free cash flow for the 12-month period ended March 31, 2008 increased when compared to one year earlier, mainly due to higher income tax recoveries and interest income, lower paid interest, and higher EBITDA after share based compensation and restructuring payments. The dividend payout ratio based on actual earnings for the 12-month period ended March 31, 2008 was 44% and the ratio calculated to exclude favourable tax-related adjustments from earnings for the same period was 54%.

The Company's strategy is to maintain the financial policies and guidelines set out below. The Company believes that these measures are currently at the optimal level and provide access to capital at a reasonable cost by maintaining credit ratings in the range of BBB+ to A-, or the equivalent.

TELUS' long-term financial policies and guidelines are: - Net debt to EBITDA - excluding restructuring costs of 1.5 to 2.0 times; and - Dividend payout ratio of 45 to 55% of sustainable net earnings. 7.5 Credit facilities

On March 3, 2008, TELUS Corporation closed a new $700 million, 364-day credit facility with a select group of Canadian banks. This new facility provides incremental liquidity to TELUS and allows the Company to continue to meet one of its financial objectives, which is to maintain $1 billion in available liquidity. The financial ratio tests in the new facility are substantially the same as those in the 2012 $2 billion syndicated facility, which states that the borrower will not permit its net debt to operating cash flow ratio to exceed 4 to 1 and may not permit its operating cash flow to interest expense ratio to be less than 2 to 1, each as defined. The new credit facility is unsecured and bears interest at Canadian prime and Canadian bankers' acceptance rates, plus applicable margins.

At March 31, 2008, TELUS had available liquidity exceeding $1.3 billion from unutilized credit facilities, consistent with the Company's objective of maintaining at least $1 billion of available liquidity. Outstanding undrawn letters of credit include $230.4 million to support TELUS' participation in the AWS spectrum auction in May 2008.

TELUS Credit Facilities at March 31, 2008 ------------------------------------------------------------------------- Out- Backstop standing for undrawn commer- letters cial Avail- of paper able ($ in millions) Expiry Size Drawn credit program liquidity ------------------------------------------------------------------------- Five-year revolving May 1, facility(1) 2012 2,000.0 (320.9) (274.1) (800.0) 605.0 364-day revolving March 2, facility(2) 2009 700.0 - - - 700.0 Other bank facilities - 137.4 - (65.4) - 72.0 ------------------------------------------------------------------------- Total - 2,837.4 (320.9) (339.5) (800.0) 1,377.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Canadian dollars or U.S. dollar equivalent. (2) Canadian dollars only. -------------------------------------------------------------------------

TELUS' revolving credit facilities contain customary covenants, including a requirement that TELUS not permit its consolidated Leverage Ratio (debt to trailing 12-month EBITDA) to exceed 4 to 1 (approximately 1.8 to 1 at March 31, 2008) and not permit its consolidated Coverage Ratio (EBITDA to Interest Expense on a trailing 12-month basis) to be less than 2 to 1 (approximately 8.8 to 1 at March 31, 2008) at the end of any financial quarter. There are certain minor differences in the calculation of the Leverage Ratio and Coverage Ratio under the credit agreements as compared with the calculation of Net debt to EBITDA and EBITDA interest coverage. Historically, the calculations have not been materially different. The covenants are not impacted by revaluation of capital assets, intangible assets and goodwill for accounting purposes. Continued access to TELUS' credit facilities is not contingent on the maintenance by TELUS of a specific credit rating.

7.6 Accounts receivable sale

On July 26, 2002, TCI, a wholly owned subsidiary of TELUS, entered into an agreement, which was amended September 30, 2002, March 1, 2006, November 30, 2006 and March 31, 2008, with an arm's-length securitization trust associated with a major Schedule I bank, under which TCI is able to sell an interest in certain of its trade receivables up to a maximum of $650 million. As a result of selling the interest in certain of the trade receivables on a fully serviced basis, a servicing liability is recognized on the date of sale and is, in turn, amortized to earnings over the expected life of the trade receivables. This revolving-period securitization agreement had an initial term ending July 18, 2007; the November 30, 2006 amendment resulted in the term being extended to July 18, 2008; the March 31, 2008 amendment resulted in the term being extended to July 17, 2009.

TCI is required to maintain at least a BBB (low) credit rating by DBRS Ltd. (DBRS) or the securitization trust may require the sale program to be wound down. The necessary credit rating was exceeded by three levels at A (low) as of May 7, 2008.

------------------------------------------------------------------------- Balance of proceeds from securitized 2008, 2007, 2007, 2007, 2007, 2006, 2006, 2006, receivables Mar. Dec. Sept. June Mar. Dec. Sept. June ($ millions) 31 31 30 30 31 31 30 30 ------------------------------------------------------------------------- 500.0 500.0 550.0 500.0 150.0 500.0 350.0 535.0 ------------------------------------------------------------------------- 7.7 Credit ratings

There were no changes to the Company's investment grade credit ratings last reported in TELUS' 2007 Management's discussion and analysis. On March 27, 2008, DBRS confirmed its credit ratings and trend for TELUS and TCI, and on April 7, assigned a rating and trend of A (low), stable, to TELUS' new $500 million, 5.95%, seven-year unsecured Note issue. On April 2, Moody's Investors Service (Moody's) assigned a Baa1 rating with a stable outlook to TELUS' new debt issue, while confirming the same for TELUS' existing senior unsecured Notes. On April 3, FitchRatings assigned a BBB+ rating with a stable outlook to the new TELUS debt issue. Standard and Poor's assigned a BBB+ rating with a stable outlook to new Series CE Notes.

------------------------------------------------------------------------- Fitch Credit rating summary DBRS S&P Moody's Ratings ------------------------------------------------------------------------- Trend or outlook Stable Stable Stable Stable ------------------------------------------------------------------------- TELUS Corporation Senior bank debt - - - BBB+ Notes A (low) BBB+ Baa1 BBB+ Commercial paper R-1 (low) - - - TELUS Communications Inc. (TCI) Debentures A (low) BBB+ - BBB+ Medium-term notes A (low) BBB+ - BBB+ First mortgage bonds A (low) A- - - ------------------------------------------------------------------------- 7.8 Financial instruments, commitments and contingent liabilities Financial instruments

The Company's financial instruments, and the nature of risks that they may be subject to, were described in the Company's 2007 Management's discussion and analysis. Commencing with the Company's 2008 fiscal year, the new recommendations of the CICA for financial instrument disclosures (CICA handbook section 3862) apply to the Company and result in incremental disclosures, relative to those previously, with an emphasis on risks associated with both recognized and unrecognized financial instruments to which an entity is exposed during the period and at the balance sheet date, and how an entity manages those risks. This information is in Note 4 of the interim Consolidated financial statements.

Commitments and contingent liabilities (Note 18 of the interim Consolidated financial statements) Price cap deferral accounts

On January 17, 2008, the CRTC issued Decision Telecom 2008-1 Use of deferral account funds to improve access to telecommunications services for persons with disabilities and to expand broadband services to rural and remote communities. This decision approved TELUS' use of its deferral account for expansion of broadband services to an additional 119 rural and remote communities (cumulatively 234 rural and remote communities), and confirmed approximately five per cent of the deferral account balance was to be used to enhance accessibility to telecommunications services for individuals with disabilities. The decision also confirmed that the remaining balance of accumulated balance of TELUS' deferral account was to be rebated to local residential customers in non-high cost serving areas.

On April 16, 2008, the Company petitioned to the Federal Cabinet seeking to rescind those parts of Decision 2008-1 that prevent the use of the remaining deferral account funds for broadband expansion. The petition also seeks to vary the decision to allow incumbent local exchange carriers to file additional proposals to use all of the available remaining deferral account for the purpose of broadband extension in their respective areas where it would otherwise be uneconomic to do so, except for the five per cent of the deferral account designated to improve access for persons with disabilities. On February 11, 2008, Bell Canada applied to the Federal Court of Appeal for leave to appeal, and for a stay of, Decision 2008-1. The stay was granted on April 23, 2008, and applies to the rebate and broadband expansion determinations in Decision 2008-1.

The Federal Court of Appeal heard two appeals of the CRTC's initial decision on disposition of funds in the deferral account (Decision 2006-9) in January 2008. The Consumers Association of Canada and the National Anti- Poverty Organization sought rebates from the deferral account direct to consumers rather than have the account used for purposes designated by the CRTC. Bell Canada's appeal grounds were that the CRTC exceeded its jurisdiction to the extent that the CRTC approved rebates from the deferral account. Within that hearing, the Federal Court of Appeal further granted Bell Canada a motion for a stay of Decision 2006-9 in so far as it requires the disposition of funds in the deferral accounts for any purpose other than improvement of accessibility to communications services for individuals with disabilities. In March 2008, the Federal Court of Appeal dismissed both appeals. On May 6, 2008, TELUS applied to the Supreme Court of Canada for leave to appeal Decision 2006-9, in so far as the decision requires rebates of funds in the deferral accounts.

Claims and lawsuits

A number of claims and lawsuits seeking damages and other relief are pending against the Company. It is impossible at this time for the Company to predict with any certainty the outcome of such litigation. However, management is of the opinion, based upon legal assessment and information presently available, that it is unlikely that any liability, to the extent not provided for through insurance or otherwise, would be material in relation to the Company's consolidated financial position, other than as disclosed in Note 18(c) of the interim Consolidated financial statements and Section 10.3 Litigation and legal matters.

7.9 Outstanding share information

The following is a summary of the outstanding shares for each class of equity at March 31, 2008. In addition, the total number of outstanding and issuable shares is presented assuming full conversion of outstanding options and shares reserved for future option grants. The number of shares outstanding at April 30, 2008 was not materially different from March 31.

------------------------------------------------------------------------- Non- Outstanding shares Common Voting Total (millions of shares) Shares Shares shares ------------------------------------------------------------------------- Common equity Outstanding shares at March 31, 2008 174.8 146.6 321.4 (1) Options outstanding and issuable(2) at March 31, 2008 0.5 15.5 16.0 ------------------------------------------------------------------------- 175.3 162.1 337.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) For the purposes of calculating diluted earnings per share, the number of shares was 324.6 million for the three-month period ended March 31, 2008. (2) Assuming full conversion and ignoring exercise prices. ------------------------------------------------------------------------- 8. Critical accounting estimates and accounting policy developments 8.1 Critical accounting estimates

Critical accounting estimates are described in Section 8.1 of TELUS' 2007 Management's discussion and analysis. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

8.2 Accounting policy developments (Note 2 of the interim Consolidated financial statements)

Accounting policies are consistent with those described in Note 1 of TELUS' 2007 Consolidated financial statements, other than for developments set out below.

Convergence with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)

In 2006, Canada's Accounting Standards Board ratified a strategic plan that will result in Canadian GAAP, as used by publicly accountable enterprises, being fully converged with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS- IASB) over a transitional period to be complete by 2011. The Company will be required to report using the converged standards effective for interim and annual financial statements relating to fiscal years beginning no later than on or after January 1, 2011.

Canadian GAAP will be fully converged with IFRS-IASB through a combination of two methods: as current joint convergence projects of the United States' Financial Accounting Standards Board and the International Accounting Standards Board are agreed upon, they will be adopted by Canada's Accounting Standards Board and may be introduced in Canada before the publicly accountable enterprises' transition date to IFRS-IASB; and standards not subject to a joint-convergence project will be exposed in an omnibus manner for introduction at the time of the publicly accountable enterprises' transition date to IFRS-IASB. As discussed further in Note 20(g) of the interim Consolidated financial statements, the United States' Financial Accounting Standards Board and the International Accounting Standards Board have completed a joint-project on business combinations and non-controlling interests.

The International Accounting Standards Board currently, and expectedly, has projects underway that are expected to result in new pronouncements that continue to evolve IFRS-IASB, and, as a result, IFRS-IASB as at the transition date is expected to differ from its current form. The Company is in the process of assessing the impacts on itself of the Canadian convergence initiative.

Financial instruments - disclosure; presentation

As an activity consistent with Canadian GAAP being evolved and converged with IFRS-IASB, the existing recommendations for financial instrument disclosure were replaced with new recommendations (CICA Handbook Section 3862); the existing recommendations for financial instrument presentation were carried forward, unchanged (as CICA Handbook Section 3863).

Commencing with the Company's 2008 fiscal year, the new recommendations of the CICA for financial instrument disclosures apply to the Company. The new recommendations result in incremental disclosures, relative to those previously, with an emphasis on risks associated with both recognized and unrecognized financial instruments to which an entity is exposed during the period and at the balance sheet date, and how an entity manages those risks.

Inventories

Commencing with the Company's 2008 fiscal year, the new, IFRS-IASB converged recommendations of the CICA for accounting for inventories (CICA Handbook Section 3031) apply to the Company. The new recommendations provide more guidance on the measurement and disclosure requirements for inventories; significantly, the new recommendations allow the reversals of previous write- downs to net realizable value where there is a subsequent increase in the value of inventories. The Company is not materially affected by the new recommendations.

9. Annual guidance for 2008

The following discussion is qualified in its entirety by the Caution regarding forward-looking statements at the beginning of Management's discussion and analysis, Section 10: Risks and risk management of TELUS' 2007 Management's discussion and analysis, as well as updates reported in Section 10 of this document. The Company has confirmed its full year guidance for 2008. The confirmed guidance is in compliance with the Company's long-term policy guidelines for Net debt to EBITDA and dividend payout, as described in Section 7.4.

---------------------------------------------- Expected Guidance changes Confirmed change from original Annual guidance for 2008 annual guidance from 2007 targets ------------------------------------------------------------------------- Consolidated $9.6 to Revenues $9.8 billion 6 to 8% no change EBITDA(1) $3.8 to (2007 as adjusted(2)) $3.95 billion 1 to 5% no change EPS - basic (2007 as adjusted(3)) $3.50 to $3.80 (8) to (15)% no change EPS - basic (2007 as adjusted), excluding favourable tax-related impacts $3.50 to $3.80 4 to 13% no change Approx. Capital expenditures $1.9 billion 7% no change ------------------------------------------------------------------------- Wireline segment $4.975 to Revenue (external) $5.075 billion 3 to 5% no change EBITDA (2007 as $1.725 to adjusted(2)) $1.8 billion (6) to (2)% no change ------------------------------------------------------------------------- Wireless segment $4.625 to Revenue (external) $4.725 billion 8 to 11% no change EBITDA (2007 as $2.075 to adjusted(2)) $2.15 billion 8 to 11% no change ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) See Section 11.1 Earnings before interest, taxes, depreciation and amortization (EBITDA) for the definition. (2) EBITDA for 2007 adjusted to exclude an incremental pre-tax charge of $168.7 million that related to the introduction of a net-cash settlement feature for share option awards granted prior to 2005. Of the total amount, $145.1 million was recorded in wireline and $23.6 million was recorded in wireless. (3) Basic EPS for 2007 adjusted to exclude an incremental after-tax charge of $0.32 per share for the introduction of a net-cash settlement feature. -------------------------------------------------------------------------

The following key assumptions were made at the time the original 2008 targets were announced in December 2007. Expectations for GDP growth and the expected statutory tax have been revised and actual or expected results to date are reported for each assumption as follows:

------------------------------------------------------------------------- Assumptions for 2008 original Actual result to-date or revised targets expectation for 2008 ------------------------------------------------------------------------- Canadian real GDP growth The Spring Outlook of the Conference estimate of 2.8% and above Board of Canada (CBOC) revised the 2008 average growth in the provinces Canadian GDP growth estimate to 2.2%. of Alberta and B.C. The recent CBOC provincial outlook continued to show above average growth in Alberta and B.C. ------------------------------------------------------------------------- Canadian dollar at or near Canadian dollar closing exchange rates parity with the U.S. dollar varied from U.S. $0.968 to U.S. $1.024 during the first three months of 2008, with an average close of about U.S. $1.00 (source: The Bank of Canada) ------------------------------------------------------------------------- Increased wireline competition Confirmed by: (i) a Western cable-TV in both business and consumer competitor reporting strong high-speed markets, particularly from Internet and telephone net additions cable-TV and VoIP companies for their quarter ended February 2008; and (ii) TELUS' network access line losses of 3.6% for the 12-month period ended March 31, 2008 ------------------------------------------------------------------------- The impact from the acquisition The transaction closed in mid-January of Emergis was assumed to begin 2008 and is expected to have a minor in March 2008 impact on TELUS' 2008 targets ------------------------------------------------------------------------- Canadian wireless industry No change market penetration gain estimate is 4.5 to five percentage points for the year ------------------------------------------------------------------------- The potential participation in TELUS Communications Company AWS spectrum auction is not partnership is a qualified bidder for reflected in capital the AWS auction in May 2008 and TELUS expenditures has provided deposits of $230.4 million in form of letters of credit to Industry Canada ------------------------------------------------------------------------- No new wireless competitive Potential competitive entrants are entrant assumed for 2008 expected to participate in the AWS auction in May 2008, however, it is not expected that entrant(s) could offer services until 2009. See Section 10.1 Regulatory ------------------------------------------------------------------------- Restructuring expenses of Assumption is unchanged approximately $50 million include the integration of Emergis ------------------------------------------------------------------------- A blended statutory income tax The blended statutory rate is expected rate of 31 to 32% to be approximately 30.5 to 31.5% ------------------------------------------------------------------------- A discount rate of 5.5% Assumptions are set at the beginning of (50 basis points higher than the year for pension accounting 2007) and expected long-term return of 7.25% for pension accounting (unchanged from 2007) ------------------------------------------------------------------------- Average shares outstanding of Average shares for the three-month approximately 320 million period ended March 31, 2008 was (down 3.5% from 331.7 million 323.7 million, or 4% lower than the in 2007). same period in 2007, consistent with the assumption for the full year ------------------------------------------------------------------------- 10. Risks and risk management

The following are updates to the risks and risk management discussion in Section 10 of TELUS' 2007 Management's discussion and analysis.

10.1 Regulatory Advanced wireless service (AWS) and other spectrum auction in the 2 GHz range

The spectrum auction, scheduled to begin May 27, 2008, includes 90 MHz of AWS spectrum in 1.7/2.1 GHz ranges, of which 40 MHz is set aside for new entrants. Another 10 MHz is being auctioned for PCS service extension and 5 MHz for a potential, small, mobile video band.

On February 29, 2008, Industry Canada released the rules for the spectrum auction in Conditions of Licence for Mandatory Roaming and Antenna Tower and Site Sharing and to Prohibit Exclusive Site Arrangements. The rules endorsed a continued facilities-based regulatory orientation and included the following: licence terms begin at the conclusion of the auction; any new entrants must build facilities in areas where they have won spectrum (no roaming on competitors' networks within their own areas); no mandatory resale of incumbents' services outside new entrants' coverage areas; a subscriber cannot roam unless he or she is already served on another radio access network; new entrants have no right to roam through incumbents' international roaming agreements; data service roaming need only be provided at a comparable quality to a new entrant's service; mandated roaming is not available to incumbents if they have licences in the service area; there are 90-day time limits to respond to tower/site sharing requests; and, where there are disputes between service providers, a binding arbitration process will apply, with arbitrators appointed from a list of retired judges and lawyers.

On March 31, 2008, Industry Canada published a list of 27 qualified bidders who have posted deposits varying in size from $80,000 to $534.2 million. TELUS Communications Company partnership is a qualified bidder and TELUS has deposited $230.4 million in the form of letters of credit with Industry Canada. There can be no assurance that all qualified bidders will participate in the auction, and not all auction participants can be successful in their bids.

While the auction will provide TELUS the opportunity to acquire additional spectrum, the availability of AWS spectrum and mandatory roaming and tower and site sharing rules may increase competitive intensity. However, the number and viability of new entrants in the market remain uncertain because of build-out costs, capital market conditions and restrictions on foreign investment. The presence of new regional or national entrants in the marketplace may negatively affect the future market share of wireless incumbents such as TELUS and may impact pricing of services.

Essential services - future regulatory framework for the supply of wholesale telecommunications services (Telecom Decision 2008-17)

In March 2008, the CRTC reduced the scope of wholesale services that will be subject to mandatory supply obligations, including a phase-out of mandatory supply obligations for fibre-based access and transport services, as well as all competitor digital network (CDN) services other than the lowest access speeds. During the phase-out period, existing wholesale services will continue to be provided to competitors at regulated rates. Carriers will also have the flexibility to negotiate wholesale service agreements for non-essential facilities that are subject to phase-out. Interconnection and public good services continue to be provided at mandated rates.

The decision changes regulation of wholesale services from a regime that obliged incumbents such as TELUS to share their network facilities with competitors, at low rates, to one that relies more on market forces. The new rules give all carriers, including TELUS, market-based incentives to continue to invest in their networks, while the transition period provides all telecommunications providers with adequate time to ensure that their service requirements can be fulfilled.

TELUS Communications Company (TCC) - Network access charge (Telecom Decision 2008-33)

In late 2007, TCC introduced a $2.95 monthly long distance network access fee for the Company's long distance subscribers who were not on a rate plan (basic toll subscribers). Subscribers could avoid the charge by subscribing free of charge to a toll restrict service (subject to a $10 termination fee), or enrolling in a TCC long distance rate plan.

TELUS Corporation

CONTACT: PRNewswire - - 05/08/2008

TELUS Reports First Quarter Results(Operating revenues increase 7% driven by wireless and data)

VANCOUVER, May 8 /PRNewswire-FirstCall/ -- TELUS Corporation today reported financial results for the first quarter of 2008, including revenue of $2.35 billion, a 6.6 per cent increase from a year ago. That performance was generated by 10 per cent growth in wireless revenue and 19 per cent growth in wireline data revenue, which was aided by two strategic acquisitions in January. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased 24 per cent to $950 million, largely due to the $173.5 million net-cash settlement feature expense recorded in the first quarter of 2007. Excluding this expense underlying EBITDA increased slightly by $12 million as ongoing growth in wireless was largely offset by a reduced EBITDA in the wireline segment.

Net income in the first quarter was $291 million and earnings per share (EPS) were $0.90, up 49 per cent and 55 per cent respectively. Adjusted to exclude the net cash settlement feature expense, net income decreased 4 per cent and EPS was unchanged, Net income and EPS this quarter also included favourable tax related adjustments of approximately $17 million or five cents per share, compared to $4 million or one cent in the first quarter of 2007. Free cash flow was up 21 per cent to $580 million this quarter, driven primarily by higher EBITDA and lower capital expenditures.

FINANCIAL HIGHLIGHTS ------------------------------------------------------------------------- C$ in millions, except per share amounts 3 months ended March 31 (unaudited) 2008 2007 % Change ------------------------------------------------------------------------- Operating revenues 2,350.6 2,205.6 6.6 EBITDA(1) 949.5 764.3 24.2 EBITDA (as adjusted)(2) 949.7 937.8 1.3 Income before income taxes and non-controlling interest 401.2 275.6 45.6 Net income(3) 291.0 194.8 49.4 Earnings per share (EPS), basic(3) 0.90 0.58 55.2 EPS (as adjusted)(3)(4) 0.90 0.90 - Cash provided by operating activities 633.5 460.6 37.5 Capital expenditures 319.7 381.9 (16.3) Free cash flow(5) 579.8 480.8 20.6 (1) Earnings before interest, taxes, depreciation and amortization (EBITDA) is defined as Operating revenues less Operations expense less Restructuring costs. See Section 11.1 of Management's discussion and analysis. (2) Excludes a charge of $0.2 million and $173.5 million to Operations expense in 2008 and 2007, respectively, for introducing a net cash settlement feature for share option awards granted prior to 2005. (3) Net income and EPS for the three month period in 2008 includes favourable tax related adjustments of $17 million or five cents per share, compared to $4 million or 1 cent for the same period in 2007. (4) Excludes $0.32 after tax charge in 2007 for introducing a net cash settlement feature for share option awards granted prior to 2005. (5) See Section 11.2 of Management's discussion and analysis.

Darren Entwistle, TELUS president and CEO said, "first quarter results were driven by strong data growth in both the wireless and wireline business segments. This growth and our cash flow enable TELUS to continue returning value to shareholders whilst investing in the long-term success of our company."

"Based on today's results, we are reaffirming TELUS' full year 2008 financial and operating targets announced last December," added Mr. Entwistle.

Robert McFarlane, TELUS executive vice-president and CFO, said, "TELUS successfully accessed the unsettled Canadian capital market in April with the issue of $500 million of 5.95% long-term notes. Placing these seven-year notes reflects our strong investment grade credit ratings and further increased the considerable strength of the TELUS balance sheet in advance of the upcoming AWS wireless spectrum auction."

------------------------------------------------------------------------- This news release contains statements about expected future events and financial and operating results of TELUS that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from that expressed in the forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In the case of annual guidance, it is the current practice of the Company to evaluate and, where it deems appropriate, provide updates. Subject to legal requirements, this practice may be changed at any time at the Company's sole discretion. Accordingly this news release is subject to the disclaimer and qualified by the assumptions (including assumptions for 2008 guidance and share purchases), qualifications and risk factors referred to in the TELUS 2007 Management's discussion and analysis, and updates in the first quarter Management's discussion and analysis - May 7, 2008 ------------------------------------------------------------------------- OPERATING HIGHLIGHTS TELUS wireless - External revenues increased by $100 million or 10% to $1.1 billion in the first quarter of 2008, when compared with the same period in 2007 - Wireless data revenue increased $51 million or 53% due to the continued adoption of full function smartphones and increased adoption of data services such as text messaging - Net subscriber additions were 88,400, representing a slight 2.3% decrease from the same quarter in 2007. Postpaid net additions were 72,400, an increase of 19%, while net prepaid loading decreased 46% to 16,000 - ARPU (average revenue per subscriber unit per month) was relatively stable at $61.88 compared to the same quarter a year ago. The fast-growing data component of $8.72, represented 14% of ARPU while the voice component continued to decline as a result of intense competition - EBITDA as adjusted of $502 million is an increase of $38 million over the first quarter of 2007, representing 8.3% growth, due to network revenue growth and lower cost of acquisition (COA) expense, partially offset by increased customer retention costs and network and other expenses to support the 10% growth in the wireless subscriber base. Costs were also incurred for the late March launch of the Koodo brand - Cost of acquisition per gross addition decreased 27% year-over-year to $319 reflecting lower advertising and promotions cost per unit, a higher proportion of new subscribers from lower cost distribution channels and lower equipment subsidies - Blended monthly subscriber churn increased to 1.53% from 1.35% a year ago due to higher prepaid churn and shifting product mix to prepaid, combined with higher deactivations associated with introduction of wireless number portability (WNP) in March 2007. Postpaid churn increased slightly - Cash flow (EBITDA as adjusted less capital expenditures) increased $85 million or 24% to $438 million in the quarter due to an increase in EBITDA and lower capital spending. TELUS wireline - External revenues increased by $45 million or 3.7% to $1.25 billion in the first quarter of 2008, when compared with the same period in 2007, as data growth more than offset the declines in local and long distance revenues - Data revenues increased by $81 million or 19% due to revenues from the two January acquisitions, enhanced data and hosting services, and increased high-speed Internet subscribers. When adjusted for the two acquisitions and a regulatory adjustment, underlying data growth was approximately 8%. - TELUS added 20,300 net high-speed Internet subscribers, a 37% decrease from a year ago reflecting strong competitive activity and market maturity - EBITDA as adjusted of $447.5 million decreased $27 million or 5.6%, due to increased costs from acquisitions, cost of sales including TELUS TV COA, initial costs for new enterprise customers and increased costs to maintain higher service levels. - Network access lines declined by 39,000 in the quarter and are down 3.6% from a year ago. This reflects continued residential line losses from ongoing competitive activity and wireless substitution, partially mitigated by an increase in business access lines - Cash flow (EBITDA as adjusted less capital expenditures) decreased $11 million or 5.4% to $192 million in the quarter due to lower EBITDA as adjusted partially offset by lower capital expenditures. Corporate Developments Government clarifies AWS spectrum rules

At end of February 2008, Industry Canada released clarifications surrounding the upcoming late May/June AWS spectrum auction, including the terms of roaming and tower sharing conditions. TELUS was encouraged by its policy endorsement of a facilities-based regulatory model including the requirement that new entrants build-out networks before being permitted to roam, that resale will not be mandated but rather left to commercial negotiations between relevant parties, and that data service roaming need only be provided at a comparable quality to a new entrant's service.

At end of March, Industry Canada published a list of 27 qualified bidders. TELUS is a qualified bidder and has deposited $230 million in the form of letters of credit. There is no assurance that all qualified bidders will bid and not all can be successful. The number and viability of new entrants in the market also remain uncertain because of build-out costs, capital market conditions and restrictions on foreign investment. Telecom investors continue to watch these auction developments closely given the potential impact on incumbents' market share and wireless service pricing.

TELUS issues $500 million in long-term debt

In April, TELUS successfully issued seven year Canadian dollar notes raising approximately $500 million. The net proceeds of the 5.95% Series CE Notes due April 15, 2015 were used for general corporate purposes and to refinance short-term financing sources. This increased available liquidity and effectively refinanced for the long-term, the short-term bank borrowings and commercial paper used to acquire Emergis in January.

TELUS continues share repurchases

During the first quarter, TELUS continued to purchase shares under its fourth Normal Course Issuer Bid (NCIB). Repurchases were 2.9 million shares for a total outlay of $122.5 million. Over the past 12 months, TELUS has repurchased 13 million shares for an outlay of $672 million, and 55.9 million shares for $2.6 billion since the first NCIB began in December 2004.

Share repurchases have resulted in the reduction of total shares outstanding by 3.9% over the last 12 months, and 10% since commencement in December 2004. TELUS believes that such purchases are in the best interest of the Company and constitute an attractive investment opportunity and desirable use of company funds that should enhance the value of the remaining shares.

Integration of acquisitions well underway

At the close of the previously announced first quarter acquisitions of Emergis and Fastvibe, TELUS immediately began implementing the post merger integration plans to ensure a seamless transition for team members and customers, while ensuring a continued focus on achieving the business goals of the transactions. Consistent with TELUS' standard process for all acquisitions, Emergis and Fastvibe team members were welcomed at events in Mississauga, Longueil, Ottawa and Toronto, and for those not present through TELUS' own videoconference service. Customers were contacted and provided with notice of the transactions, together with the strategic rationale, and sales specialist teams from TELUS and the acquired businesses met to learn about one another's products and services with a focus on cross-selling complementary solutions. Almost immediately after closing, Emergis rebranded to "Emergis, a TELUS company" and Fastvibe commenced operating under the TELUS brand.

Successfully launching value brand

In late March, TELUS began the launch of a new wireless value brand and service called Koodo Mobile with an eye-catching mass advertising program targeted to young adults. Koodo Mobile benefits from the use of TELUS' national network, its distinctive brand and innovative marketing and sales approach. The distribution roll out is focusing on mall kiosks, national retailers and self service on the web at Koodomobile.com.

The benefits of this investment include more flexibility in serving various customer segments, augmenting wireless distribution, increasing customer additions and complementing our premium TELUS brand in the marketplace. The estimated financial impact of this launch is already reflected in the 2008 wireless segment targets previously communicated.

Business Solutions TELUS makes strides in healthcare

In the quarter, Emergis, A TELUS company, completed the migration of the Ontario Ministry of Health and Long-Term Care's Health Network System to its data facilities in Thornhill, Ontario. Under a five-year, multi-million dollar agreement Emergis is responsible for the management and further development of the system, and is now processing drug claims submitted by Ontario pharmacists on behalf of clients under the Ontario Drug Benefit program.

In February, the Medical University of South Carolina (MUSC) selected Emergis' Oacis Health Data Warehouse application for its clinical researchers and administrative staff. Oacis, part of an electronic health record system, will allow MUSC's users to conduct data analyses in areas such as clinical and population research, disease surveillance and case management.

Products and Services TELUS launches Visual Voice Mail

In March, TELUS introduced Visual Voice Mail, the first service available across Canada that lets users "see what was said" by translating voicemails to emails. The service expands TELUS' suite of unified communications services that simplify communications for business clients. The enhanced voice-to-screen service offers both the popular voicemail-to-text service and a highly convenient voicemail-to-email function, which lets customers get their phone messages anywhere in the world where they can access email with a computer or smartphone.

TELUS first to bring touchscreen phones to Canada

In April, TELUS was the first Canadian carrier to introduce the next generation of cell phone interface with the LG VENUS touchscreen phone. This is the first in a series of LG touchscreen phones TELUS will bring to Canadians this year. Touchscreen user interfaces are typically reserved for high-end entertainment and business tools such as smartphones and personal digital assistants. This marks the first time Canadians can own a touchscreen phone. TELUS also introduced the MOTO Q 9c and the popular BlackBerry Curve 8330.

TELUS Secure Contracts cost-effectively curb paper waste

In April, TELUS, Recombo and Leger Marketing announced the findings of a recent poll on paper waste in Canada. The poll found that while Canadians want their employers to be greener, the average Canadian is wasting more paper now than five years ago. In fact, each day the average working Canadian prints 30 pieces of paper and wastes nearly 40 per cent of the sheets. To help combat the growing wastage of paper, TELUS launched TELUS Secure Contracts, which enables companies to securely exchange and sign contracts with an easy-to-use, web-based digital signatures service.

TELUS connects greater Manicouagan, Quebec

Schools, libraries and municipal buildings in the Manicouagan region are now connected, thanks to TELUS and its partners. The coalition has completed the deployment of high-tech communications infrastructure including a private optical fibre network covering the entire regional county municipality of Manicouagan. The schools, libraries and municipal buildings spread across 350 kilometers are now connected through a state-of-the-art private network. This project, launched in 2005, involves five owners: The Commission scolaire de l'Estuaire, the regional municipalities of Manicouagan, TELUS, the Reseau d'Informations Scientifiques du Quebec (RISQ), and the Eastern Shores School Board. A partnership agreement has been signed to foster regional development and share the approximate $5 million of costs associated with the construction, installation, and maintenance of the private network.

Communities and Community Investment TELUS creating 75 call centre jobs in Prince George

TELUS announced in April an investment of $1.3 million to double the size of its existing Prince George call centre, expanding it from 75 to 150 team members. The expansion will help TELUS continue to meet growing customer demand for services and products, in particular wireless data services. TELUS expects to begin hiring for the new positions over the summer, once renovations are well underway.

Pink is the new black! Canadians rethink breast cancer with help from TELUS

In February, TELUS launched the new pink BlackBerry Pearl 8130 smartphone. To celebrate the launch of this fashionable device from Research In Motion, TELUS also announced its involvement with Rethink Breast Cancer, and is currently contributing $25 to the organization from the sale of every pink BlackBerry Pearl 8130.

TELUS honoured for work/life balance innovations

TELUS was honoured by WorkLife BC with the 2008 Innovation Award recognizing the creative approach the company takes in providing its employees with tools to better balance their work and personal lives. TELUS was singled out for providing team members with creative and innovative ways to lead healthy balanced lives. Team members benefit from technology allowing many to work at home full or part-time, and take advantage of a long list of programs such as on-site wellness practitioners, employee and family assistance programs, and personal days off each year.

Canadian athletes get boost from TELUS

In April, TELUS awarded a $50,000 performance bonus to Canadian Snowboard Federation (CSF) athletes. The annual award, handed out to the athletes following the TELUS-sponsored Canadian Snowboard Nationals, provides performance bonuses to National Team members and other athletes entered by the CSF into major competitions. TELUS' long-term commitment with the CSF as official telecommunications provider is helping ensure the ongoing development and future success of competitive snowboarders across the country.

TELUS World Skins Game returns to B.C.'s Predator Ridge

The TELUS World Skins Game is a highlight of the Canadian summer sporting schedule, not only for Canadian golf fans but for the local community as well. TELUS partners with a charity during each year's Skins Game, this year supporting the BC Children's Hospital Foundation. The sold out event will feature golfers from five countries: Mike Weir, Fred Couples representing the United States, Greg Norman representing Australia, Colin Montgomerie representing Scotland, and Camilo Villegas representing Colombia.

Theatre TELUS - the new cultural destination in Montreal

In March, TELUS entered into an exclusive 10-year partnership with Groupe Laberge to offer a new venue for artistic expression in Montreal - Theatre TELUS. The new state-of-the-art theatre, located in the Quartier des spectacles, is a 12,000-square-foot venue that can accommodate up to 1,200 people per event. Theatre TELUS opened mid-April is a testament to TELUS' commitment to the local community including our 5,000 team members in Quebec, TELUS' customers and to the visitors who will enjoy the Quartier des spectacles.

TELUS celebrates International Women's Day

In early March, TELUS celebrated International Women's Day by honouring women in the workplace for their contributions to business and the community. TELUS team members across the country highlighted the day by organizing events such as clothing drives and speakers series to raise funds and awareness for a number of local charities. TELUS is committed to empowering women, inspiring their success and celebrating their personal and professional achievements in the workplace and in the community. TELUS also promotes diversity in the workplace through numerous work-life balance initiatives and programs including Connections: the TELUS women's network.

Rimouski gets boost from TELUS to promote region's economy

TELUS joined the Association des marchands de Rimouski and the Caisse Desjardins de Rimouski to develop a new consumer loyalty program emphasizing the importance of buying local goods to promote the community's economic health. Residents will collect Rimouski iPoints (is this correct spelling - if so italicize) coupons when they purchase products in local stores. The coupons allow them to take advantage of promotional offers including rebates on certain tourist attractions. For the occasion, TELUS will offer Rimouskois one more reason to buy locally as participants will have a chance to win a laptop with a one-year subscription to TELUS' High Speed Internet service.

TELUS webcasts Quebec hockey games

TELUS launched high quality webcasts of Quebec Junior Major Hockey League games on telus.com/qmjhl at the start of May, just in time for the President's Cup finals. The webcasts allow customers to transfer streaming video from their home computer to their television set to watch the playoffs. Developed and produced in collaboration with Rimouski-based firm PQM.net, the High Quality broadcast service uses a transmission rate of one Megabit per second, more than three times faster than normal.

Dividend declaration

The Board of Directors has declared a quarterly dividend of forty-five cents ($0.45) Canadian per share on the issued and outstanding Common shares and forty-five cents ($0.45) Canadian per share on the issued and outstanding Non-Voting shares of the Company payable on July 1, 2008 to holders of record at the close of business on June 10 2008.

This quarterly dividend represents a 20 per cent increase from the $0.375 quarterly dividend paid in 2007.

About TELUS

TELUS (TSX: T, T.A; NYSE: TU) is a leading national telecommunications company in Canada, with $9.2 billion of annual revenue and 11.2 million customer connections including 5.6 million wireless subscribers, 4.4 million wireline network access lines and 1.2 million Internet subscribers. TELUS provides a wide range of communications products and services including data, Internet protocol (IP), voice, entertainment and video. Committed to being Canada's premier corporate citizen, we give where we live. Since 2000, TELUS and our team members have contributed $113 million to charitable and not-for-profit organizations and volunteered more than 2.1 million hours of service to local communities. Eight TELUS Community Boards across Canada lead our local philanthropic initiatives. For more information about TELUS, please visit telus.com.

TELUS Corporation interim consolidated statements of income and other comprehensive income (unaudited) Three months Periods ended March 31 (millions except per share amounts) 2008 2007 OPERATING REVENUES $ 2,350.6 $ 2,205.6 ------------------------------------------------------------------------- OPERATING EXPENSES ------------------------------------------------------------------------- Operations 1,394.4 1,436.6 Restructuring costs 6.7 4.7 Depreciation 345.7 317.7 Amortization of intangible assets 76.4 49.6 ------------------------------------------------------------------------- 1,823.2 1,808.6 ------------------------------------------------------------------------- OPERATING INCOME 527.4 397.0 Other expense, net 16.8 3.8 Financing costs 109.4 117.6 ------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES AND NON CONTROLLING INTEREST 401.2 275.6 Income taxes 109.4 79.3 Non-controlling interests 0.8 1.5 ------------------------------------------------------------------------- NET INCOME AND COMMON SHARE AND NON VOTING SHARE INCOME 291.0 194.8 OTHER COMPREHENSIVE INCOME Change in unrealized fair value of derivatives designated as cash flow hedges 3.5 27.9 Foreign currency translation adjustment arising from translating financial statements of self sustaining foreign operations (1.6) 2.4 Change in unrealized fair value of available-for-sale financial assets (1.1) - ------------------------------------------------------------------------- 0.8 30.3 ------------------------------------------------------------------------- COMPREHENSIVE INCOME $ 291.8 $ 225.1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- NET INCOME PER COMMON SHARE AND NON-VOTING SHARE - Basic $ 0.90 $ 0.58 - Diluted $ 0.90 $ 0.57 DIVIDENDS DECLARED PER COMMON SHARE AND NON-VOTING SHARE $ 0.45 $ 0.375 TOTAL WEIGHTED AVERAGE COMMON SHARES AND NON-VOTING SHARES OUTSTANDING - Basic 323.7 337.1 - Diluted 324.6 340.5 TELUS Corporation interim consolidated balance sheets (unaudited) March 31, December 31, As at (millions) 2008 2007 ------------------------------------------------------------------------- ASSETS Current Assets Cash and temporary investments, net $ 49.1 $ 19.9 Short-term investments 116.0 42.4 Accounts receivable 687.9 710.9 Income and other taxes receivable 22.3 120.9 Inventories 228.6 243.3 Prepaid expenses and other 268.0 199.5 Derivative assets 4.2 3.8 ------------------------------------------------------------------------- 1,376.1 1,340.7 ------------------------------------------------------------------------- Capital Assets, Net Property, plant, equipment and other 7,094.2 7,177.3 Intangible assets subject to amortization 1,304.1 978.2 Intangible assets with indefinite lives 2,966.5 2,966.5 ------------------------------------------------------------------------- 11,364.8 11,122.0 ------------------------------------------------------------------------- Other Assets Deferred charges 1,374.6 1,318.0 Investments 30.0 38.9 Goodwill 3,541.2 3,168.0 ------------------------------------------------------------------------- 4,945.8 4,524.9 ------------------------------------------------------------------------- $17,686.7 $16,987.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable and accrued liabilities $ 1,412.4 $ 1,476.6 Income and other taxes payable 29.3 7.3 Restructuring accounts payable and accrued liabilities 31.7 34.9 Dividends payable 145.5 - Advance billings and customer deposits 634.6 631.6 Current maturities of long-term debt 7.8 5.4 Current portion of derivative liabilities 43.4 26.6 Current portion of future income taxes 479.8 503.6 ------------------------------------------------------------------------- 2,784.5 2,686.0 ------------------------------------------------------------------------- Long-Term Debt 5,187.4 4,583.5 ------------------------------------------------------------------------- Other Long-Term Liabilities 1,647.5 1,717.9 ------------------------------------------------------------------------- Future Income Taxes 1,090.5 1,048.1 ------------------------------------------------------------------------- Non-Controlling Interests 22.1 25.9 ------------------------------------------------------------------------- Shareholders' Equity 6,954.7 6,926.2 ------------------------------------------------------------------------- $17,686.7 $16,987.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TELUS Corporation interim consolidated statements of cash flows (unaudited) Three months Periods ended March 31 (millions) 2008 2007 ------------------------------------------------------------------------- OPERATING ACTIVITIES Net income $ 291.0 $ 194.8 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 422.1 367.3 Future income taxes (2.3) 78.2 Share-based compensation 6.3 138.6 Net employee defined benefit plans expense (24.9) (24.0) Employer contributions to employee defined benefit plans (27.0) (33.9) Restructuring costs, net of cash payments (3.2) (17.0) Amortization of deferred gains on sale-leaseback of buildings, amortization of deferred charges and other, net 7.2 (9.1) Net change in non-cash working capital (35.7) (234.3) ------------------------------------------------------------------------- Cash provided by operating activities 633.5 460.6 ------------------------------------------------------------------------- INVESTING ACTIVITIES Capital expenditures (319.7) (381.9) Acquisitions (686.9) - Change in non-current materials and supplies, purchase of investments and other (2.1) (10.4) ------------------------------------------------------------------------- Cash used by investing activities (1,008.7) (392.3) ------------------------------------------------------------------------- FINANCING ACTIVITIES Common Shares and Non-Voting Shares issued 0.1 0.4 Dividends to shareholders - (125.9) Purchase of Common Shares and Non-Voting Shares for cancellation (122.5) (200.7) Long-term debt issued 3,712.3 1,097.8 Redemptions and repayment of long-term debt (3,180.9) (293.5) Dividends paid by a subsidiary to non-controlling interests (4.6) - Other - (0.9) ------------------------------------------------------------------------- Cash provided by financing activities 404.4 477.2 ------------------------------------------------------------------------- CASH POSITION Increase in cash and temporary investments, net 29.2 545.5 Cash and temporary investments, net, beginning of period 19.9 (11.5) ------------------------------------------------------------------------- Cash and temporary investments, net, end of period $ 49.1 $ 534.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURE OF CASH FLOWS Interest (paid) $ (45.0) $ (23.6) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Interest received $ 1.3 $ 1.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income taxes (inclusive of Investment Tax Credits (paid) received, net $ (0.7) $ 6.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TELUS Corporation segmented information (unaudited) Three-month periods ended March 31 Wireline Wireless (millions) 2008 2007 2008 2007 ------------------------------------------------------------------------- Operating revenues External revenue $1,250.6 $1,205.6 $1,100.0 $1,000.0 Intersegment revenue 30.8 25.1 7.0 6.3 ------------------------------------------------------------------------- 1,281.4 1,230.7 1,107.0 1,006.3 ------------------------------------------------------------------------- Operating expenses Operations expense 828.0 905.4 604.2 562.6 Restructuring costs 6.5 4.4 0.2 0.3 ------------------------------------------------------------------------- 834.5 909.8 604.4 562.9 ------------------------------------------------------------------------- EBITDA(1) $ 446.9 $ 320.9 $ 502.6 $ 443.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ 255.2 $ 270.7 $ 64.5 $ 111.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA less CAPEX $ 191.7 $ 50.2 $ 438.1 $ 332.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating expenses (as adjusted)(3) Operations expense (as adjusted)(3) 827.4 752.3 604.6 542.2 Restructuring costs 6.5 4.4 0.2 0.3 ------------------------------------------------------------------------- 833.9 756.7 604.8 542.5 ------------------------------------------------------------------------- EBITDA (as adjusted)(3) $ 447.5 $ 474.0 $ 502.2 $ 463.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ 255.2 $ 270.7 $ 64.5 $ 111.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) less CAPEX $ 192.3 $ 203.3 $ 437.7 $ 352.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three-month periods ended March 31 Eliminations Consolidated (millions) 2008 2007 2008 2007 ------------------------------------------------------------------------- Operating revenues External revenue $ - $ - $2,350.6 $2,205.6 Intersegment revenue (37.8) (31.4) - - ------------------------------------------------------------------------- (37.8) (31.4) 2,350.6 2,205.6 ------------------------------------------------------------------------- Operating expenses Operations expense (37.8) (31.4) 1,394.4 1,436.6 Restructuring costs - - 6.7 4.7 ------------------------------------------------------------------------- (37.8) (31.4) 1,401.1 1,441.3 ------------------------------------------------------------------------- EBITDA(1) $ - $ - $ 949.5 $ 764.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ - $ - $ 319.7 $ 381.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA less CAPEX $ - $ - $ 629.8 $ 382.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating expenses (as adjusted)(3) Operations expense (as adjusted)(3) (37.8) (31.4) 1,394.2 1,263.1 Restructuring costs - - 6.7 4.7 ------------------------------------------------------------------------- (37.8) (31.4) 1,400.9 1,267.8 ------------------------------------------------------------------------- EBITDA (as adjusted)(3) $ - $ - $ 949.7 $ 937.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ - $ - $ 319.7 $ 381.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) less CAPEX $ - $ - $ 630.0 $ 555.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) (from above) $ 949.7 $ 937.8 Incremental charge(3) 0.2 173.5 --------------------------------------------- EBITDA (from above) 949.5 764.3 Depreciation 345.7 317.7 Amortization 76.4 49.6 --------------------------------------------- Operating income 527.4 397.0 Other expense, net 16.8 3.8 Financing costs 109.4 117.6 --------------------------------------------- Income before income taxes and non- controlling interests 401.2 275.6 Income taxes 109.4 79.3 Non-controlling interests 0.8 1.5 --------------------------------------------- Net income $ 291.0 $ 194.8 --------------------------------------------- --------------------------------------------- (1) Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") is a measure that does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers; EBITDA is defined by the Company as operating revenues less operations expense and restructuring costs. The Company has issued guidance on, and reports, EBITDA because it is a key measure used by management to evaluate performance of its business segments and is utilized in measuring compliance with certain debt covenants. (2) Total capital expenditures ("CAPEX"). (3) Substantially all of the Company's share option awards that were granted prior to January 1, 2005, and which were outstanding on January 1, 2007, were amended by adding a net-cash settlement feature; such amendment resulted in an incremental charge to operations of $0.2 (2007 - $173.5) and did not result in an immediate cash outflow. In respect of 2008 and 2007 results provided to the Company's chief operating decision maker, operations expense and EBITDA are being presented both with, and without, the impact of such amendment. Caution regarding forward-looking statements ------------------------------------------------------------------------- This document and Management's discussion and analysis contain statements about expected future events and financial and operating results of TELUS Corporation (TELUS or the Company, and where the context of the narrative permits, or requires, its subsidiaries) that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that assumptions (see below), predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise, except as required by law. In the case of annual guidance, it is the current practice of the Company to evaluate and, where it deems appropriate, provide updates (see Section 9). Subject to legal requirements, this practice may be changed at any time at the Company's sole discretion. Assumptions for 2008 guidance include: economic growth consistent with recent provincial and national estimates by the Conference Board of Canada, including revised Canadian gross domestic product (GDP) growth of 2.2% and above average growth in the provinces of Alberta and British Columbia; forecast exchange rate between the Canadian dollar and U.S. dollar at or near parity; increased wireline competition in both business and consumer markets, particularly from cable-TV and VoIP (voice over Internet protocol) companies; impact from the acquisition of Emergis in mid-January; Canadian wireless industry market penetration gain of 4.5 to 5%; potential participation in advanced wireless services (AWS) spectrum auction is not reflected in capital expenditures; no new wireless competitive entrant assumed for 2008; approximately $50 million restructuring expenses (up from $20.4 million in 2007); a blended statutory tax rate of approximately 30.5 to 31.5%; a discount rate of 5.5% (50 basis points higher than 2007) and expected long-term return of 7.25% for pension accounting (unchanged from 2007); and average shares outstanding of approximately 320 million (down from 331.7 million in 2007). Earnings per share (EPS), cash balances, net debt and common equity may be affected by purchases of up to 20 million TELUS shares over a 12-month period under the normal course issuer bid that commenced December 20, 2007. Factors that could cause actual results to differ materially include, but are not limited to: competition (including more active price competition and the possibility of new wireless competition after the 2008 spectrum auction); economic growth and fluctuations (including pension performance, funding and expenses); capital expenditure levels (including possible wireless spectrum asset purchases); financing and debt requirements (including funding share repurchases and debt financings); tax matters (including acceleration or deferral of required payments of significant amounts of cash taxes); human resource developments; business integrations and internal reorganizations (including post-acquisition integration of Emergis); technology (including reliance on systems and information technology, evolving wireline broadband and wireless next generation technology options and the possible need for prospective wireless sharing arrangements to achieve cost efficiencies and reduce deployment risks); regulatory approvals and developments (including the spectrum auction, tower sharing and roaming rules, the new media proceeding and possible changes to foreign ownership restrictions); process risks (including conversion of legacy systems and billing system integrations); health, safety and environmental developments; litigation and legal matters; business continuity events (including manmade and natural threats); any prospective acquisitions or divestitures; and other risk factors discussed herein and listed from time to time in TELUS' reports and public disclosure documents, including its annual report, annual information form, and other filings with securities commissions in Canada (on http://www.sedar.com/) and in its filings in the United States, including Form 40-F (on EDGAR at http://www.sec.gov/). For further information, see Section 10: Risks and risk management of TELUS' 2007 Management's discussion and analysis and updates in Section 10 of this document. ------------------------------------------------------------------------- Management's discussion and analysis May 7, 2008

The following is a discussion of the consolidated financial condition and results of operations of TELUS Corporation for the three-month periods ended March 31, 2008 and 2007, and should be read together with TELUS' interim Consolidated financial statements. This discussion contains forward-looking information that is qualified by reference to, and should be read together with, the Caution regarding forward-looking statements above.

TELUS' interim Consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles (GAAP), which differ in certain respects from U.S. GAAP. See Note 20 of the interim Consolidated financial statements for a summary of the principal differences between Canadian and U.S. GAAP as they relate to TELUS. The interim Consolidated financial statements and Management's discussion and analysis were reviewed by TELUS' Audit Committee and approved by TELUS' Board of Directors. All amounts are in Canadian dollars unless otherwise specified.

TELUS has issued guidance on and reports on certain non-GAAP measures that are used by management to evaluate performance of business units, segments and the Company. In addition, non-GAAP measures are used in measuring compliance with debt covenants and are used to manage the capital structure. Because non-GAAP measures do not have a standardized meaning, securities regulations require that non-GAAP measures be clearly defined and qualified, and reconciled with their nearest GAAP measure. For the reader's reference, the definition, calculation and reconciliation of consolidated non-GAAP measures are provided in Section 11: Reconciliation of non-GAAP measures and definitions.

Management's discussion and analysis contents ------------------------------------------------------------------------- Section Contents ------------------------------------------------------------------------- 1. Introduction Introduction and summary of TELUS' consolidated results for the first quarter of 2008 ------------------------------------------------------------------------- 2. Core business, vision A discussion of activities in support and strategy of TELUS' six strategic imperatives ------------------------------------------------------------------------- 3. Key performance drivers A listing of corporate priorities for 2008 ------------------------------------------------------------------------- 4. Capability to deliver A description of the factors that results affect the capability to execute strategies, manage key performance drivers and deliver results ------------------------------------------------------------------------- 5. Results from operations A detailed discussion of operating results for the first quarter of 2008 ------------------------------------------------------------------------- 6. Financial condition A discussion of significant changes in TELUS' balance sheets for the three- month period ended March 31, 2008 ------------------------------------------------------------------------- 7. Liquidity and capital A discussion of cash flow, liquidity, resources credit facilities and other disclosures ------------------------------------------------------------------------- 8. Critical accounting A description of accounting estimates estimates and accounting that are critical to determining policy developments financial results, and changes to accounting policies ------------------------------------------------------------------------- 9. Annual guidance for 2008 TELUS' confirmed annual guidance ------------------------------------------------------------------------- 10. Risks and risk management An update on certain risks and uncertainties facing TELUS and how the Company manages these risks ------------------------------------------------------------------------- 11. Reconciliation of non-GAAP A description, calculation and measures and definitions reconciliation of certain measures used by management ------------------------------------------------------------------------- 1. Introduction 1.1 Materiality for disclosures

Management determines whether or not information is material based on whether it believes a reasonable investor's decision to buy, sell or hold securities in the Company would likely be influenced or changed if the information were omitted or misstated.

1.2 Canadian telecommunications industry Key industry development

On June 30, 2007, Canada's largest telecommunications service provider BCE Inc. announced that it had entered into a definitive agreement to be acquired by a consortium led by Teachers Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, and the U.S.-based Providence Equity Partners and Madison Dearborn Partners, LLC. The BCE Board recommended that their common shareholders accept the consortium's offer at an all-cash price of $42.75 per common share or approximately $34 billion. On September 21, 2007, BCE shareholders overwhelmingly approved the acquisition. The CRTC (Canadian Radio-television and Telecommunications Commission) approved the change in control of BCE's broadcasting licences, subject to certain conditions. Industry Canada also approved the acquisition subject to certain conditions. The closing of the transaction remains subject to the outcome of Bell bondholder appeals before the Quebec Court of Appeal. BCE has indicated that it expects the transaction to close before the end of the second quarter of 2008.

Wireless developments - advanced wireless service (AWS) and other spectrum auction in the 2 GHz range

On February 16, 2007, Industry Canada released a discussion paper for the upcoming auction for advanced wireless services (AWS) spectrum in various spectrum bands. On November 28, 2007, the Minister released a policy framework on how the auction will be conducted. The major elements include a set aside for new entrants of 40 MHz of the available 90 MHz of AWS spectrum, mandated roaming, and mandated tower and site sharing requirements at commercial rates subject to binding arbitration.

On February 27, 2008, Industry Canada clarified its decision on roaming. TELUS was encouraged by Industry Canada's policy endorsement of a facilities-based regulatory model including the requirement that new entrants build-out their networks before being permitted to roam, that resale will not be mandated but rather left to commercial negotiations between relevant parties, and that data service roaming need only be provided at a comparable quality to a new entrant's service. Terms of roaming and tower and site sharing are to be based on commercial terms and subject to binding arbitration where commercial negotiations are not successful. Final conditions of licence, consistent with the above factors, were subsequently released on February 29, 2008. The auction is scheduled for May 27, 2008.

On March 31, 2008, Industry Canada published a list of 27 qualified bidders who have posted deposits varying in size from $80,000 to $534.2 million. TELUS' wholly owned partnership, TELUS Communications Company, is a qualified bidder and TELUS has deposited $230.4 million in the form of letters of credit with Industry Canada. There can be no assurance that all qualified bidders will participate in the auction, and not all auction participants can be successful in their bids. See Section 10.1 Regulatory for additional information.

1.3 Consolidated highlights

The chief executive officer, who is the chief operating decision-maker, regularly receives TELUS' reports on two bases: including and excluding an incremental pre-tax charge for introducing a net-cash settlement feature for share option awards granted prior to 2005. The highlights table below presents both views.

------------------------------------------------------------------------- Consolidated highlights ($ millions, except shares, per-share Quarters ended March 31 amounts, subscribers and ratios) 2008 2007 Change ------------------------------------------------------------------------- Consolidated statements of income ------------------------------------------------------------------------- Operating revenues 2,350.6 2,205.6 6.6 % Operating income 527.4 397.0 32.8 % Net-cash settlement feature expense 0.2 173.5 (99.9)% ---------- ---------- ---------- Operating income (as adjusted) 527.6 570.5 (7.5)% Income before income taxes 401.2 275.6 45.6 % Net-cash settlement feature expense 0.2 173.5 (99.9)% ---------- ---------- ---------- Income before income taxes (as adjusted) 401.4 449.1 (10.6)% Net income 291.0 194.8 49.4 % Net-cash settlement feature expense, after tax 0.1 107.7 (99.9)% ---------- ---------- ---------- Net income (as adjusted) 291.1 302.5 (3.8)% Earnings per share, basic ($) 0.90 0.58 55.2 % Net-cash settlement feature per share - 0.32 (100.0)% ---------- ---------- ---------- Earnings per share, basic (as adjusted) ($) 0.90 0.90 - % Earnings per share, diluted ($) 0.90 0.57 57.9 % Cash dividends declared per share ($) 0.45 0.375 20.0 % ------------------------------------------------------------------------- Consolidated statements of cash flows ------------------------------------------------------------------------- Cash provided by operating activities 633.5 460.6 37.5 % Cash used by investing activities 1,008.7 392.3 157.1 % Capital expenditures 319.7 381.9 (16.3)% Cash provided by financing activities 404.4 477.2 (15.3)% ------------------------------------------------------------------------- Subscribers and other measures ------------------------------------------------------------------------- Subscriber connections(1) (thousands) 11,208 10,800 3.8 % EBITDA(2) 949.5 764.3 24.2 % Net-cash settlement feature expense 0.2 173.5 (99.9)% ---------- ---------- ---------- EBITDA (as adjusted) 949.7 937.8 1.3 % Free cash flow(3) 579.8 480.8 20.6 % ------------------------------------------------------------------------- Debt and payout ratios(4) ------------------------------------------------------------------------- Net debt to EBITDA - excluding restructuring costs 1.8 1.7 0.1 Dividend payout ratio (%) 44 45 (1)pt ------------------------------------------------------------------------- pt; pts - percentage point(s) (1) The sum of wireless subscribers, network access lines and Internet access subscribers measured at the end of the respective periods based on information in billing and other systems. (2) EBITDA is a non-GAAP measure. See Section 11.1 Earnings before interest, taxes, depreciation and amortization (EBITDA). (3) Free cash flow is a non-GAAP measure. See Section 11.2 Free cash flow. (4) See Section 11.4 Definitions of liquidity and capital resource measures. -------------------------------------------------------------------------

Highlights for the first quarter of 2008, as discussed in Section 5: Results from operations, include the following:

- Subscriber connections increased by 408,000 in the twelve-month period ended March 31, 2008. The number of wireless subscribers grew by 10% to 5.66 million, the number of Internet subscribers grew by 5.0% to 1.19 million and the number of network access lines decreased by 3.6% to 4.36 million. - Wireless gross subscriber additions increased by 17% in the first quarter of 2008, when compared to the same period in 2007, with consistent growth for both postpaid and prepaid. In addition, average revenue per subscriber unit per month (ARPU) was stable when compared to the first quarter of 2007. - In the first quarter of 2008, TELUS recorded its highest quarterly consolidated Operating revenues. - Operating revenues increased by $145.0 million in the first quarter of 2008, when compared to the same period in 2007, due primarily to growth in wireless network revenues and wireline data revenues, which more than offset revenue declines in wireline voice local and long distance. - Operating income increased by $130.4 million in the first quarter of 2008 when compared to the same period in 2007, largely due to the $173.5 million net-cash settlement feature expense recorded in the first quarter of 2007. Excluding net-cash settlement feature expenses, operating income (as adjusted) decreased by $42.9 million primarily due to increased depreciation and amortization expenses, partly offset by improved EBITDA (as adjusted). - Income before income taxes increased by $125.6 million in the first quarter of 2008 when compared to the same period in 2007. Excluding the effect of the net-cash settlement feature, Income before income taxes decreased by $47.7 million due mainly to decreased operating income (as adjusted). - Net income and basic EPS increased by $96.2 million and 32 cents, respectively, in the first quarter of 2008 when compared to the same period in 2007. ------------------------------------------------------------------------- Net income continuity Quarters ended ($ millions) March 31 ------------------------------------------------------------------------- 2007 Net income 194.8 Changes in: Net-cash settlement feature 108 EBITDA as adjusted 8 Depreciation and amortization, excluding investment tax credits in 2007 (34) Interest expenses 6 Tax-related adjustments 13 Other (4.8) ------------------------------------------------------------------------- 2008 Net income 291.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- - The average number of shares outstanding during the first quarter of 2008 was 4% lower than the first quarter of 2007 due to repurchases under normal course issuer bid (NCIB) programs. The Company purchased 950,000 Common Shares and more than 1.9 million Non-Voting Shares for an outlay of $122.5 million during the first quarter of 2008.

Highlights for the first quarter of 2008, as discussed in Section 7: Liquidity and capital resources, include the following:

- Cash provided by operating activities increased by $172.9 million in the first quarter of 2008 when compared to the same period in 2007. The balance of proceeds from securitized accounts receivable was unchanged in 2008, while a $350 million reduction in proceeds occurred during the first quarter of 2007, for a comparative increase in cash flow of $350 million. This increase was partly offset by short-term investments in the first quarter of 2008 and higher paid interest. - Cash used by investing activities increased by $616.4 million in the first quarter of 2008 when compared to the same period in 2007, primarily due to the January 2008 acquisition of Emergis, partly offset by lower capital expenditures. - Cash provided by financing activities decreased by $72.8 million in the first quarter of 2008 when compared to the same period in 2007, due primarily to March 2007 debt issues of $1 billion being partly offset by increased amounts drawn from the 2012 credit facility and issued commercial paper, lower NCIB purchases and payment of the first quarter 2008 dividend subsequent to the end of the quarter, on April 1.

On March 3, 2008, TELUS Corporation closed a new $700 million, 364-day credit facility with a select group of Canadian banks. This new facility provides incremental liquidity to TELUS and allows the Company to continue to meet one of its financial objectives, which is to maintain $1 billion in available liquidity. The Company has not utilized this facility.

On April 9, TELUS successfully closed an offering of 5.95%, Series CE, Notes due April 15, 2015, for aggregate gross proceeds of approximately $500 million. The net proceeds of the offering are expected to be used for general corporate purposes including repayment of amounts under the 2012 credit facility, and to refinance short-term financing sources.

- Free cash flow of $579.8 million in the first quarter of 2008 increased by $99.0 million from the same period in 2007, mainly due to lower capital expenditures, improved EBITDA (as adjusted), lower paid interest and lower payments under restructuring plans. Free cash flow was supplemented in the first quarter of 2008 by financing activities to complete acquisitions totalling $686.9 million, net of acquired cash. - Following the addition of debt in January 2008 to finance the acquisition of Emergis, Net debt to EBITDA at March 31, 2008 was 1.8, up by only 0.1 from the measure at December 31, 2007, and continued to be in the long-term target policy range of 1.5 to 2.0 times. - The dividend payout ratio, based on the annualized first quarter dividend and actual earnings for the 12-month trailing period ended March 31, 2008, was 44%. The dividend payout ratio calculated to exclude the impacts of favourable tax-related adjustments from earnings for the 12-month trailing period ended March 31, 2008, was 54%. 2. Core business, vision and strategy

The following discussion is qualified in its entirety by the Caution regarding forward-looking statements at the beginning of Management's discussion and analysis. It is also qualified by Section 10: Risks and risk management of TELUS' 2007 Management's discussion and analysis, as well as updates reported in Section 10 of this document.

TELUS' core business, vision and strategy were detailed in its 2007 Management's discussion and analysis. Activities that supported the Company's six strategic imperatives during the first quarter of 2008 include the following:

Building national capabilities across data, IP, voice and wireless

In January, two strategic acquisitions were completed, as outlined below in the Partnering, acquiring and divesting imperative.

Focusing relentlessly on the growth markets of data, IP and wireless

In February, the Ville de Montreal selected TELUS to provide and manage Internet Protocol (IP) based voice and data services for the city's more than 300 administrative offices. TELUS' advanced telecommunications framework supports the city's goals of accessing a cost-effective infrastructure, while providing a secure IP backbone for new services and solutions. The total value of the 10-year contract is approximately $87 million.

Also in February, TELUS completed the rollout of wireless high-speed capability in B.C. and Alberta, using EVDO Rev A technology. TELUS' wireless high-speed service reaches about 95% of the population of B.C. and Alberta, providing typical download speeds of 450 to 800 Kbps and typical upload speeds of 300 to 400 Kbps.

In March, TELUS launched the KOODO MOBILE(TM) wireless discount brand and service to address the challenge of marketing against competitors with two or more brands. The potential benefits include more flexibility in serving various market segments, increasing customer additions, protecting revenue on the premium TELUS brand, and improving client retention programs.

Building integrated solutions that differentiate TELUS from its competitors

In March, the Company launched the TELUS Visual Voice Mail service that provides a voicemail-to-text function and, for the first time in Canada, a voicemail-to-email function. With this service, TELUS' wireless customers can access their phone messages wherever they can access email using smartphones, such as personal digital assistants (PDAs) and BlackBerry devices, or computers. The customer can respond easily to the messages or emails, either by voice or by text, at the touch of a button and optionally include an audio recording of the message as an attachment.

Partnering, acquiring and divesting to accelerate the implementation of TELUS' strategy and focus TELUS' resources on core business Fastvibe Corporation

In January, TELUS acquired privately held Fastvibe, a provider of Web-streaming solutions for business. This acquisition is expected to strengthen the Company's technology solutions portfolio, providing businesses with an environment-friendly and cost effective way to deliver information such as training, employee communications and investor information to staff and stakeholders who are dispersed geographically.

Emergis Inc.

In January, TELUS completed the acquisition of Emergis, having financed and paid $743.4 million for all of the then issued and outstanding Emergis common shares by drawing down TELUS' syndicated credit facility and utilizing available cash resources, primarily proceeds of commercial paper issuance. Emergis was de-listed from the Toronto Stock Exchange on January 21.

Emergis is a business process outsourcer that specializes in the healthcare and financial services sectors and is a leader in the automation of electronic health records. TELUS has targeted and invested in serving the healthcare and financial business sectors. Emergis' complementary expertise, applications and customer base are expected to strengthen TELUS' existing industry solutions and allow it to better compete in the growing and transforming healthcare industry. This acquisition is consistent with three of TELUS' strategic imperatives: building national capabilities; focusing relentlessly on the growth markets of data, IP and wireless; and partnering, acquiring and divesting.

Going to the market as one team under a common brand, executing a single strategy

On completion of the acquisitions of Emergis and Fastvibe, TELUS immediately began implementing the post merger integration plans to ensure a seamless transition for team members and customers, while ensuring a continued focus on achieving the business goals of the transactions. Consistent with TELUS' standard process for all acquisitions, Emergis and Fastvibe team members were welcomed at events in Mississauga, Longueil, Ottawa and Toronto, and for those not present, through TELUS' own videoconference service. Customers were contacted and provided with notice of the transactions, together with the strategic rationale, and sales specialist teams from TELUS and the acquired businesses met to learn about one another's products and services with a focus on cross-selling complimentary solutions. Almost immediately after closing, Emergis re-branded to "Emergis, a TELUS company" and Fastvibe commenced operating under the TELUS brand.

Investing in internal capabilities to build a high-performance culture and efficient operations

The Company continued to achieve higher retail service levels, as measured by CRTC quality of service measures. In particular, record high measures were reached for consumer service metrics, such as installation appointments met, repair appointments met and out-of-service trouble reports cleared within 24 hours.

3. Key performance drivers

The following is qualified in its entirety by the Caution regarding forward-looking statements at the beginning of Management's discussion and analysis. It is also qualified by Section 10: Risks and risk management of TELUS' 2007 Management's discussion and analysis, as well as updates reported in Section 10 of this document.

Management sets new corporate priorities each year to advance TELUS' strategy, focus on the near-term opportunities and challenges, and create value for shareholders.

------------------------------------------------------------------------- 2008 corporate priorities ------------------------------------------------------------------------- Drive profit from strategic services with a focus on data ------------------------------------------------------------------------- Build scale in vertical markets and leverage the Emergis acquisition ------------------------------------------------------------------------- Exact productivity gains from efficiency improvement initiatives ------------------------------------------------------------------------- Elevate the client experience and build enhanced loyalty ------------------------------------------------------------------------- Execute technology initiatives, including broadband and IT platforms ------------------------------------------------------------------------- 4. Capability to deliver results 4.1 Principal markets addressed and competitors

The principal markets addressed and competitors have not changed significantly from those described in TELUS' 2007 Management's discussion and analysis. As described in Section 10.1 Regulatory, the number of wireless competitors is expected to increase in the future, as potential new entrants bid for spectrum regionally, nationally, or both in the May 2008 AWS spectrum auction.

4.2 Operational capabilities Development of a new billing and client care system in the wireline segment

A pilot implementation for approximately 150,000 residential customers in B.C. is expected to begin in the second quarter of 2008. Additional related development and conversions are planned, including a full system conversion for more than one million B.C. residential customers later in 2008. See Section 10.2 Process risks.

Increasing ability to offer high-speed wireless data service to customers

Building on the Company's investments to expand its wireless high-speed EVDO network, such service is now available in geographic areas covering approximately 80% of the Canadian population. Wireless data revenues are increasing strongly due to increased usage and continued migration of existing subscribers to more widely available full function smartphones and EVDO-capable handsets.

4.3 Liquidity and capital resources

The following discussion is qualified in its entirety by the Caution regarding forward-looking statements at the beginning of Management's discussion and analysis. It is also qualified by Section 10: Risks and risk management of TELUS' 2007 Management's discussion and analysis, as well as updates reported in Section 10 of this document.

Capital structure financial policies (Note 3 of the Consolidated financial statements)

The Company's objectives when managing capital are: (i) to maintain a flexible capital structure which optimizes the cost of capital at acceptable risk; and (ii) to manage capital in a manner which balances the interests of equity and debt holders.

In the management of capital, the Company includes shareholders' equity (excluding accumulated Other comprehensive income), long-term debt (including any associated hedging assets or liabilities, net of amounts recognized in accumulated Other comprehensive income), cash and temporary investments and securitized accounts receivable in the definition of capital.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, purchase shares for cancellation pursuant to normal course issuer bids, issue new shares, issue new debt, issue new debt to replace existing debt with different characteristics and/or increase or decrease the amount of sales of trade receivables to an arm's-length securitization trust.

The Company monitors capital utilizing a number of measures, including: net debt to EBITDA - excluding restructuring costs; and dividend payout ratio of sustainable net earnings. For further discussion, see Section 7.4 Liquidity and capital resource measures.

Liquidity and financing -------------------------------------------------------------------- TELUS' 2008 financing plan and results to-date -------------------------------------------------------------------- Repurchase TELUS Common Shares and TELUS Non-Voting Shares under the normal course issuer bid (NCIB) In the first quarter of 2008, the Company repurchased for cancellation, 950,000 Common Shares and 1.97 million Non-Voting Shares for a total outlay of $122.5 million. See Section 7.3 Cash used by financing activities. Pay dividends The dividend declared for the first quarter of 2008 was 45 cents per share, up by 20% from 37.5 cents per share in the same period in 2007. Use proceeds from securitized receivables and bank facilities, as needed, to supplement free cash flow and meet other cash requirements At March 31, 2008, the balance of proceeds from securitized accounts receivable was $500 million, unchanged from December 31, 2007. In January 2008, the Company increased utilization of its existing $2 billion credit facility. The proceeds were used for general corporate purposes, including the purchase of Emergis. At March 31, 2008, $320.9 million was drawn on the 2012 revolving credit facility. Maintain compliance with financial objectives, policies and guidelines Maintain a minimum $1 billion in unutilized liquidity - On March 3, 2008, the Company closed a new $700 million, 364-day credit facility with a select group of Canadian banks. This new facility provides incremental liquidity to TELUS and allows the Company to continue to meet one of its financial objectives, which is to maintain $1 billion in available liquidity. The Company had unutilized credit facilities exceeding $1.3 billion at March 31, 2008, including the 364-day facility. See Section 7.5 Credit facilities. Net debt to EBITDA excluding restructuring costs ratio of 1.5 to 2.0 times - actual result of 1.8 times at March 31, 2008. Dividend payout ratio of 45 to 55% of sustainable net earnings - the ratio was 44%, based on the annualized first quarter dividend rate and actual earnings for the 12-month trailing period ended March 31, 2008. The ratio was 54% when calculated to exclude the impacts of favourable tax-related adjustments from earnings for the 12-month trailing period ended March 31, 2008. Maintain position of fully hedging foreign exchange exposure for indebtedness Maintained for the 8.00% U.S. dollar Notes due 2011, the one remaining foreign currency-denominated debt issue. Give consideration to accessing the public debt markets in 2008 to refinance short-term financing sources with long-term financing Following the end of its fiscal first quarter, on April 9 TELUS successfully closed its offering of 5.95%, Series CE, Notes due April 15, 2015, for aggregate gross proceeds of approximately $500 million. The net proceeds of the offering are expected to be used for general corporate purposes including repayment of amounts under the 2012 credit facility, and to refinance short-term financing sources. Preserve access to the capital markets at a reasonable cost by maintaining investment grade credit ratings and targeting improved credit ratings in the range of BBB+ to A-, or the equivalent, in the future At May 7, 2008, investment grade credit ratings from the four rating agencies that cover TELUS were in the desired range. TELUS' April 2008 debt issue was assigned credit ratings of: A (low) by DBRS Ltd., Baa1 by Moody's Investors Service, BBB+ by FitchRatings, and BBB+ by Standard and Poor's, all with a stable trend or outlook and all consistent with the agencies' existing ratings for TELUS debt securities. See Section 7.7 Credit ratings. -------------------------------------------------------------------- 4.4 Disclosure controls and procedures and internal control over financial reporting Changes in internal control over financial reporting

There were no changes in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

5. Results from operations 5.1 General

The Company has two reportable segments: wireline and wireless. Segmentation is based on similarities in technology, the technical expertise required to deliver the products and services, the distribution channels used and regulatory treatment. Intersegment sales are recorded at the exchange value. Segmented information is regularly reported to the Company's Chief Executive Officer, who is the chief operating decision-maker. See Note 5 of the interim Consolidated financial statements.

5.2 Quarterly results summary ------------------------------------------------------------------------- ($ in millions, except per share amounts) 2008 Q1 2007 Q4 2007 Q3 2007 Q2 ------------------------------------------------------------------------- Operating revenues 2,350.6 2,330.8 2,309.9 2,228.1 Operations expense 1,394.4 1,371.3 1,316.5 1,340.3 Restructuring and workforce reduction costs 6.7 6.1 6.4 3.2 ------------------------------------------------------------------------- EBITDA(1) 949.5 953.4 987.0 884.6 Depreciation 345.7 386.2 332.5 318.3 Amortization of intangible assets 76.4 68.1 70.1 72.5 ------------------------------------------------------------------------- Operating income 527.4 499.1 584.4 493.8 Other expense (income) 16.8 5.8 8.0 18.5 Financing costs 109.4 109.1 86.2 127.2 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 401.2 384.2 490.2 348.1 Income taxes 109.4 (18.0) 78.6 93.7 Non-controlling interests 0.8 2.1 1.7 1.3 ------------------------------------------------------------------------- Net income 291.0 400.1 409.9 253.1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income per Common Share and Non-Voting Share - basic 0.90 1.23 1.24 0.76 - diluted 0.90 1.22 1.23 0.75 Dividends declared per Common Share and Non-Voting Share 0.45 0.45 0.375 0.375 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ($ in millions, except per share amounts) 2007 Q1 2006 Q4 2006 Q3 2006 Q2 ------------------------------------------------------------------------- Operating revenues 2,205.6 2,254.6 2,210.7 2,135.2 Operations expense 1,436.6 1,362.4 1,239.7 1,201.2 Restructuring and workforce reduction costs 4.7 7.9 12.5 30.7 ------------------------------------------------------------------------- EBITDA(1) 764.3 884.3 958.5 903.3 Depreciation 317.7 353.2 325.8 335.2 Amortization of intangible assets 49.6 53.9 57.5 46.9 ------------------------------------------------------------------------- Operating income 397.0 477.2 575.2 521.2 Other expense (income) 3.8 10.1 4.0 9.6 Financing costs 117.6 133.6 116.6 127.5 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 275.6 333.5 454.6 384.1 Income taxes 79.3 91.6 128.3 15.1 Non-controlling interests 1.5 1.4 2.4 2.6 ------------------------------------------------------------------------- Net income 194.8 240.5 323.9 366.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income per Common Share and Non-Voting Share - basic 0.58 0.71 0.95 1.06 - diluted 0.57 0.70 0.94 1.05 Dividends declared per Common Share and Non-Voting Share 0.375 0.375 0.275 0.275 ------------------------------------------------------------------------- (1) EBITDA is a non-GAAP measure. See Section 11.1 Earnings before interest, taxes, depreciation and amortization (EBITDA). ------------------------------------------------------------------------- Trends

The consolidated revenue trend continues to reflect strong growth in wireless network revenues generated from an increasing subscriber base. Wireless ARPU (average revenue per subscriber unit per month) for the most recent quarter was relatively stable on a year-over-year basis. ARPU declined slightly in the previous two quarters following 18 successive quarters of year-over-year increases. The stability in ARPU resulted from strong data growth offsetting declining voice ARPU, which reflects a shifting product mix, pricing competition, and increased in-bucket, or included-minute, usage.

The trend in wireline revenues reflects growth in data revenue including new revenues from the two January 2008 acquisitions. For the 2007 and 2006 periods shown above, this growth in data revenue was fully offset by declining wireline voice local and long distance revenues due to substitution for wireless and Internet services, as well as competition from VoIP service providers, resellers and facilities-based competitors. Quarterly losses of residential network access lines continued to increase over the same periods in the previous year. Partially offsetting the losses on the residential side were gains in business network access lines, which continued to match or exceed those in the same periods in the previous year.

Historically, there is significant fourth quarter seasonality with higher wireless subscriber additions and related acquisition costs and equipment sales, resulting in lower wireless EBITDA. There is a less pronounced fourth quarter seasonal effect for wireline high-speed Internet subscriber additions and related costs.

As described in Section 1.3, quarterly Operations expenses include expenses for introducing a net-cash settlement feature for share option awards granted prior to 2005. The net-cash settlement feature expense (recovery) for the first, second, third and fourth quarters of 2007 was $173.5 million, $1.8 million, $(7.2) million and $0.6 million, respectively, and for the first quarter of 2008 was $0.2 million. The credit in the third quarter 2007 was an adjustment to the initial estimate recorded. Restructuring costs varied by quarter, depending on the progress of a number of smaller initiatives under the Company's ongoing competitive efficiency program.

The downward trend in depreciation expense ended in the second half of 2007 with a reduction in estimated useful service lives for certain circuit switching and network management assets, resulting in write-downs of approximately $20 million and $47 million, respectively, in the third and fourth quarters of 2007. The previous downward trend was interrupted by a provision of approximately $17 million in the fourth quarter of 2006 to align estimated useful lives for TELUS Quebec assets, resulting from integration of financial systems. Depreciation is expected to increase slightly for the full year of 2008 as compared to 2007, due to a planned increase in capital assets. See Caution regarding forward-looking statements.

The sequential increase in amortization of intangible assets in the first quarter of 2008 was due mainly to acquisitions. With a major new wireline billing and client care system put into service in March 2007, $18 million of additional amortization was recorded in each of the second, third and fourth quarters of 2007 and first quarter of 2008, reversing the previous downward trend in Amortization of intangible assets. In addition, amortization expenses in the second and fourth quarters of 2006 and the first quarter of 2007 were reduced by approximately $12 million, $5 million and $5 million, respectively, for investment tax credits relating to assets capitalized in prior years that are now fully amortized, following a determination of eligibility by a government tax authority.

Within Financing costs shown in the table above, interest expenses trended lower. The sequential decline in financing costs in the third quarter of 2007 was due to lower effective interest rates and debt balances plus increased interest income from tax refunds. Financing costs in the eight periods shown are net of varying amounts of interest income.

The generally upward trends in Net income and earnings per share (EPS) reflect the items noted above, as well as adjustments arising from legislated income tax changes, settlements and tax reassessments for prior years, including any related interest on reassessments. EPS has been positively impacted by decreased shares outstanding from ongoing NCIB purchases.

------------------------------------------------------------------------- Tax-related adjustments ($ in millions, except EPS amounts) 2008 Q1 2007 Q4 2007 Q3 2007 Q2 ------------------------------------------------------------------------- Approximate Net income impact 17 143 93 10 Approximate EPS impact 0.05 0.44 0.28 0.03 Approximate basic EPS excluding tax-related impacts 0.85 0.79 0.96 0.73 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Tax-related adjustments ($ in millions, except EPS amounts) 2007 Q1 2006 Q4 2006 Q3 2006 Q2 ------------------------------------------------------------------------- Approximate Net income impact 4 20 30 124 Approximate EPS impact 0.01 0.06 0.09 0.36 Approximate basic EPS excluding tax-related impacts 0.57 0.65 0.86 0.70 ------------------------------------------------------------------------- 5.3 Consolidated results from operations ------------------------------------------------------------------------- ($ in millions except EBITDA Quarters ended March 31 margin in % and employees) 2008 2007 Change ------------------------------------------------------------------------- Operating revenues 2,350.6 2,205.6 6.6 % Operations expense 1,394.4 1,436.6 (2.9)% Restructuring costs 6.7 4.7 42.6 % ------------------------------------------------------------------------- EBITDA(1) 949.5 764.3 24.2 % Depreciation 345.7 317.7 8.8 % Amortization of intangible assets 76.4 49.6 54.0 % ------------------------------------------------------------------------- Operating income 527.4 397.0 32.8 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operations expense (as adjusted)(2) 1,394.2 1,263.1 10.4 % EBITDA (as adjusted)(2) 949.7 937.8 1.3 % Operating income (as adjusted)(2) 527.6 570.5 (7.5)% EBITDA margin(3) 40.4 34.7 5.7 pts EBITDA margin (as adjusted)(3) 40.4 42.5 (2.1)pts ------------------------------------------------------------------------- (1) EBITDA is a non-GAAP measure. See Section 11.1 Earnings before interest, taxes, depreciation and amortization (EBITDA). (2) Excluding net-cash settlement feature expenses of $0.2 million and $173.5 million, respectively, in the first quarter of 2008 and 2007. (3) EBITDA or EBITDA (as adjusted) divided by Operating revenues. -------------------------------------------------------------------------

The following discussion is for the consolidated results of TELUS. Segmented discussion is provided in Section 5.4 Wireline segment results, Section 5.5 Wireless segment results and Section 7.2 Cash used by investing activities - capital expenditures.

Operating revenues

Consolidated Operating revenues increased by $145.0 million in the first quarter of 2008 when compared to the same period in 2007. Revenue and subscriber growth continued to occur in wireless operations and wireline data services. Wireline data revenue was positively impacted by two acquisitions completed in January 2008. Voice long distance revenues continued to erode, while voice local revenue showed a year-over-year decrease due to the effects of local competition.

Operations expense

Consolidated Operations expense decreased by $42.2 million in the first quarter of 2008 when compared to the same period in 2007. Operations expense adjusted to exclude the net-cash settlement feature expense increased by $131.1 million, including $75.1 million in the Wireline segment due to acquisitions, increased cost of sales, initial implementation costs for new wireline enterprise customers and increased expenditures to maintain higher wireline service levels. The increase also supported the 10% year-over-year growth in the wireless subscriber base and network revenue. TELUS' defined benefit pension plan net expense did not change significantly.

Restructuring costs

Restructuring costs increased by $2.0 million in the first quarter of 2008 when compared to the same period in 2007. An aggregate annual expense of approximately $50 million is expected for several smaller efficiency initiatives in 2008.

TELUS Corporation

CONTACT: Media relations: Shawn Hall, (604) 697-8176,
shawn.hall@telus.com; Investor relations: Robert Mitchell, (416) 279-3219,
ir@telus.com

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