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FiberNet Reports First Quarter 2008 ResultsFirst Quarter of 2008 Revenues Increase 16.5% and EBITDA Increases 41.0% Over Comparable Period in 2007

NEW YORK, May 9 /PRNewswire-FirstCall/ -- FiberNet Telecom Group, Inc. , a leading provider of complex interconnection services, today announced its results for the first quarter ended March 31, 2008.

Revenues for the first quarter of 2008 increased to $13.6 million, up 16.5% from $11.6 million for the first quarter of 2007 and consistent with $13.6 million revenues for the fourth quarter of 2007. Included in revenues for the fourth quarter of 2007 were $0.3 million in non-recurring revenues from an early termination fee collected from a customer. Excluding this fee, revenues for the first quarter of 2008 were up 2.3% from the fourth quarter of 2007.

EBITDA (as defined) for the first quarter of 2008 was $2.5 million, up 41.0% from $1.8 million for the first quarter of 2007 and consistent with $2.5 million for the fourth quarter of 2007. Included in EBITDA (as defined) for the fourth quarter of 2007 was the early termination fee and $0.1 million of bad debt expense. During the fourth quarter of 2007, FiberNet did not record any write-off of its allowance for doubtful accounts, however. Excluding these items, EBITDA (as defined) for the first quarter of 2008 was up 12.5% from the fourth quarter of 2007.

FiberNet continued to achieve consistent revenue growth in its core product offerings of transport and colocation services. For the first quarter of 2008, revenues from transport and colocation services (excluding revenues from access management services) grew by 16.7% over the first quarter of 2007. Excluding the early termination fee, revenues from transport and colocation services (excluding revenues from access management services) grew by 2.4% over the fourth quarter of 2007.

Transport services remained the most significant component of FiberNet's revenues, accounting for 76.3% of the total revenues generated in the first quarter of 2008. On-net transport revenues were 46.4%, and off-net transport revenues were 29.9% of the total revenues.

Colocation services and access management services represented 22.5% and 1.2% of total revenue generated in the first quarter, respectively. Colocation revenues were the fastest growing area for the Company in the first quarter of 2008, increasing by 29.2% from the first quarter of 2007 and by 5.5% from the fourth quarter of 2007. FiberNet's customer count also increased to 265 as of March 31, 2008, up from 244 at the end of the first quarter of 2007 and 254 at the end of the fourth quarter of 2007.

Jon A. DeLuca, President and Chief Executive Officer, stated, "We are off to a good start in 2008. In particular, we are pleased with the growth we are seeing in colocation services. This year, our expansion plans have turned to our network services. We are expanding the core capacity of our metro networks and extending our reach to three new markets. All of these initiatives should serve to build value over the long term."

Cost of services for the first quarter of 2008 was $6.9 million, compared to $5.9 million for the first quarter of 2007 and $6.9 million for the fourth quarter of 2007. These increases were due, in part, to increased off-net connectivity costs and increased occupancy costs from our colocation expansion projects.

Selling, general and administrative expenses for the first quarter of 2008 were $4.5 million, compared to $4.2 million in the first quarter of 2007 and $4.5 million in the fourth quarter of 2007. Included in selling, general and administrative expenses for the fourth quarter of 2007 is $0.1 million of bad debt expense.

The net loss applicable to common stockholders for the first quarter of 2008 was $(0.6) million, or $(0.08) per share, compared to $(2.4) million, or $(0.33) per share, for the first quarter of 2007. The net loss applicable to common stockholders for the fourth quarter of 2007 was $(0.6) million, or $(0.08) per share.

Capital expenditures for the first quarter of 2008 were $1.1 million, compared to $1.0 million in the fourth quarter of 2007 and $0.4 million in the first quarter of 2007. In the first quarter of 2008, $0.7 million of capital expenditures were made primarily for the implementation of customer specific orders and the implementation of network infrastructure to support new initiatives, and $0.4 million were invested in colocation expansion projects.

In 2008, the Company expects to invest approximately $3.5 million in capital expenditures for customer order activity, expansion of certain facilities, new product initiatives and an upgrade to certain information technology systems and key operating systems. The Company also expects to invest approximately $3.0 million to complete the two colocation expansion projects that it began last year. These include its new facility at 60 Hudson Street in New York City and its power upgrade at its facility at 165 Halsey Street in Newark, New Jersey. In 2007, the Company invested $0.9 million in these colocation projects. In addition, the Company intends to invest approximately $2.0 million for the national network expansion projects that it recently announced. These projects include capacity expansions to its metro networks in New York / New Jersey and Los Angeles, a capacity expansion to its metro Ethernet network and extending its network reach to the new markets of Chicago, San Francisco and Miami.

As of March 31, 2008, FiberNet had total assets of $69.6 million and total stockholders' equity of $39.2 million. As of May 08, 2008, the Company had approximately 7.5 million shares of common stock outstanding, or 8.2 million shares of common stock outstanding on a fully-diluted basis, assuming the exercise of all outstanding options and warrants. Of the approximately 0.7 million outstanding options and warrants, 0.1 million are out-of-the-money as of May 08, 2008.

The Company presents the financial metric EBITDA (as defined) because it is utilized in the determination of the majority of the financial covenants in its credit agreement, and the metric is calculated in accordance with its credit agreement. As of March 31, 2008, FiberNet was in full compliance with all of the financial covenants in its credit agreement.

FiberNet Teleconference:

FiberNet will hold a teleconference today, Friday, May 9, 2008, at 11:00 a.m. EDT. To participate in the teleconference please call: 800-591-6944 and enter pass code 30684076, and from outside the U.S. call 617-614-4910 and enter the pass code.

A replay of the teleconference will be available beginning Friday, May 9, 2008 at 1:00 p.m. EDT through Friday, May 23, 2008. To listen to the replay by phone, call 888-286-8010 and enter pass code 55477761, and from outside the U.S. call 617-801-6888 and enter the pass code.

About FiberNet Telecom Group, Inc.

FiberNet Telecom Group, Inc. owns and operates integrated interconnection facilities and diverse transport routes in the two gateway markets of New York/New Jersey and Los Angeles, designed to provide comprehensive broadband interconnectivity enabling the exchange of traffic over multiple networks. FiberNet's customized connectivity infrastructure provides an advanced, high bandwidth, fiber-optic solution to support the demand for network capacity and to facilitate the interconnection of multiple carriers' and customers' networks. For additional information about FiberNet, visit the company's website at http://www.ftgx.com/.

Financial Information and Forward Looking Statements:

This partial discussion of the statements of financial condition and operations of the Company should be read in conjunction with the consolidated financial statements and related notes contained in the Company's annual report on Form 10-K for the year ended December 31, 2007 as filed with the Securities and Exchange Commission on March 28, 2008.

Investors are cautioned that EBITDA (as defined) is not a financial measure under generally accepted accounting principles. EBITDA (as defined) is defined as net loss before income taxes, net interest expense, depreciation and amortization, stock related expense and other non-cash or non-recurring charges. The Company does not, nor does it suggest investors should, consider such a non-GAAP financial measure in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. EBITDA (as defined) should not be construed as an alternative to operating income or cash flows from operating activities, both of which are determined in accordance with GAAP, or as a measure of liquidity. Because it is not calculated under GAAP, FiberNet's EBITDA (as defined) may not be comparable to similarly titled measures used by other companies. EBITDA (as defined) is commonly used in the communications industry and by financial analysts, and others who follow the industry, as a measure of operating performance. The Company believes that it is appropriate to present this financial measure because certain of the financial covenants in the Company's credit agreement are based upon it.

Various remarks about the Company's future expectations, plans and prospects constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Such remarks are valid only as of today, and the Company disclaims any obligation to update this information. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Reconciliation of Non-GAAP Financial Metric: Consolidated Financial Data (in thousands) (unaudited) Three Months Ended -------------------------------------- March 31, March 31, December 31, 2008 2007 2007 ---------- ---------- ------------ Calculation of EBITDA (as defined): Net loss $ (614) $ (2,397) $ (581) Plus: Operating expenses: Stock related expense for selling, general, and administrative matters 347 227 347 Depreciation and amortization 2,439 2,296 2,411 Interest expense, net 370 531 367 Extraordinary loss on early extinguishment of debt -- 1,146 -- -------- -------- -------- EBITDA (as defined) $ 2,542 $ 1,803 $ 2,544 FIBERNET TELECOM GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except for per share amounts) Three months ended March 31, 2008 2007 Revenues $13,556 $11,634 Operating expenses: Cost of services (exclusive of items shown separately below) 6,889 5,898 Selling, general and administrative expense 4,472 4,160 Depreciation and amortization 2,439 2,296 Total operating expenses 13,800 12,354 Loss from operations (244) (720) Loss on early extinguishment of debt - (1,146) Interest income 47 63 Interest expense (417) (594) Net loss $ (614) $(2,397) Net loss per share-basic and diluted $ (0.08) $ (0.33) Weighted average common shares outstanding-basic and diluted 7,578 7,271 FIBERNET TELECOM GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 31, December 31, 2008 2007 (unaudited) ASSETS Current Assets: Cash and cash equivalents $6,729 $8,220 Accounts receivable, net of allowance of $361 4,049 3,818 Prepaid expenses 553 612 Total current assets 11,331 12,650 Property, plant and equipment, net 54,931 54,921 Other Assets: Deferred charges, net of accumulated amortization of $210 and $160 817 845 Goodwill 1,613 1,613 Other assets 867 883 Total other assets 3,297 3,341 TOTAL ASSETS $69,559 $70,912 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $5,172 $3,553 Accrued expenses 4,479 7,227 Notes payable, current portion 1,050 700 Deferred revenues, current portion 1,165 1,282 Total current liabilities 11,866 12,762 Long Term Liabilities: Notes payable 12,950 13,300 Deferred revenue, long term 3,248 3,351 Other long term liabilities 2,338 2,201 Total Long Term Liabilities 18,536 18,852 Total Liabilities 30,402 31,614 Stockholders' Equity: Common stock, $0.001 par value, 2,000,000,000 shares authorized and 7,569,178 and 7,554,309 shares issued and outstanding 8 8 Additional paid-in-capital 445,798 445,368 Deferred rent (warrants) (1,343) (1,386) Accumulated deficit (405,306) (404,692) Total stockholders' equity 39,157 39,298 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $69,559 $70,912 FIBERNET TELECOM GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) Three months ended March 31, 2008 2007 Cash flows from operating activities: Net loss $ (614) $ (2,397) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 2,439 2,296 Stock related expense 347 227 Deferred rent expense 43 43 Loss on early extinguishment of debt - 1,146 Other non-cash items 49 229 Change in assets and liabilities: Increase in accounts receivables (232) (212) Decrease in prepaid expenses 59 71 Decrease in other assets 1 22 Increase (decrease) in accounts payable 51 (965) Decrease in accrued expenses and other long-term liabilities (733) (770) Decrease in deferred revenues (220) (352) Cash provided by (used in) operating activities 1,190 (662) Cash flows from investing activities: Common stock repurchase (1,529) - Capital expenditures (1,130) (435) Cash used in investing activities (2,659) (435) Cash flows from financing activities: Proceeds from debt financings - 14,000 Proceeds from warrant exercises - 522 Repayment of debt financings - (14,160) Payment of financing costs of debt financings (22) (1,054) Cash used in financing activities (22) (692) Net decrease in cash and cash equivalents (1,491) (1,789) Cash and cash equivalents at beginning of period 8,220 6,802 Cash and cash equivalents at end of period 6,729 $5,013 Supplemental disclosures of cash flow information: Interest paid $662 $699

FiberNet Telecom Group, Inc.

CONTACT: Norma I. Salcido, Director, Marketing and Communications of
FiberNet Telecom Group, Inc., +1-212-405-6200, norma.salcido@ftgx.com

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

Preformed Line Products Announces Financial Results for the Quarter Ended March 31, 2008

MAYFIELD VILLAGE, Ohio, May 9 /PRNewswire-FirstCall/ -- Preformed Line Products Company today reported financial results for the first quarter ended March 31, 2008.

Net income for the quarter ended March 31, 2008 was $2,950,000, or $.54 per diluted share, compared to $3,152,000, or $.58 per diluted share, for the comparable period in 2007.

Net sales for the first quarter increased 14% to $64,703,000 compared to $56,531,000 in the first quarter of 2007.

Currency had a favorable impact on sales and net income for the quarter of $3.1 million and $.1 million, respectively.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "I am pleased with the progress in the integration of the two acquisitions completed in 2007. These acquisitions contributed $6.7 million in sales in this year's first quarter. Our volume in the U.S. was down primarily as a result of extraordinary sales in the first quarter of 2007 due to ice storms. I am concerned about the uncertainty surrounding the weak domestic economy and the housing market and the impact this will have on our distribution market. However, we continue to see strong performance in the transmission market as a result of the new products we have introduced in recent years. We continue to monitor the pressure on our margins as a consequence of the rising cost of raw material and are implementing price increases during the second quarter."

Founded in 1947, Preformed Line Products is an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for energy, communications and broadband network companies.

Preformed's world headquarters are in Cleveland, Ohio, and the Company operates four domestic manufacturing centers located in Rogers, Arkansas, Albuquerque, New Mexico, Albemarle, North Carolina, and Asheville, North Carolina. The Company serves its worldwide market through international operations in Australia, Brazil, Canada, China, England, Mexico, New Zealand, Poland, South Africa, Spain and Thailand.

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's and management's beliefs and expectations concerning the Company's future performance or anticipated financial results, among others. Except for historical information, the matters discussed in this release are forward-looking statements that involve risks and uncertainties which may cause results to differ materially from those set forth in those statements. Among other things, factors that could cause actual results to differ materially from those expressed in such forward-looking statements include the strength of the economy and demand for the Company's products, increases in raw material prices, the Company's ability to identify, complete and integrate acquisitions for profitable growth, and other factors described under the heading "Forward-Looking Statements" in the Company's Form 10-K filed with the SEC on April 7, 2008. The Form 10-K and the Company's other filings with the SEC can be found on the SEC's website at http://www.sec.gov/ . The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

PREFORMED LINE PRODUCTS COMPANY STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED) In thousands, except per share data Three month periods ended March 31, 2008 2007 Net sales $64,703 $56,531 Cost of products sold 44,433 38,204 GROSS PROFIT 20,270 18,327 Costs and expenses Selling 6,267 5,963 General and administrative 7,760 5,816 Research and engineering 2,234 1,946 Other operating expenses (income) - net (99) 186 Goodwill impairment - 199 16,162 14,110 Royalty income - net 319 381 OPERATING INCOME 4,427 4,598 Other income (expense) Interest income 223 305 Interest expense (139) (165) Other expense (2) (6) 82 134 INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS 4,509 4,732 Income taxes 1,526 1,580 INCOME BEFORE MINORITY INTERESTS 2,983 3,152 Minority interests 33 - NET INCOME $2,950 $3,152 Net income per share - basic $0.55 $0.59 Net income per share - diluted $0.54 $0.58 Cash dividends declared per share $0.20 $0.20 Weighted average number of shares outstanding - basic 5,382 5,360 Weighted average number of shares outstanding - diluted 5,431 5,405 PREFORMED LINE PRODUCTS COMPANY CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, December 31, Thousands of dollars, except share data 2008 2007 ASSETS Cash and cash equivalents $21,831 $23,392 Accounts receivable, less allowances of $1,374 ($1,314 in 2007) 42,368 40,482 Inventories - net 51,294 47,050 Deferred income taxes 3,555 3,209 Prepaids and other 4,279 4,542 TOTAL CURRENT ASSETS 123,327 118,675 Property and equipment - net 65,547 62,901 Patents and other intangibles - net 5,734 5,637 Goodwill 4,483 3,928 Deferred income taxes 3,622 4,022 Other assets 8,244 8,703 TOTAL ASSETS $210,957 $203,866 LIABILITIES AND SHAREHOLDERS' EQUITY Notes payable to banks $3,656 $4,076 Current portion of long-term debt 1,602 1,949 Trade accounts payable 20,848 16,083 Accrued compensation and amounts withheld from employees 7,788 7,309 Accrued expenses and other liabilities 11,043 12,932 TOTAL CURRENT LIABILITIES 44,937 42,349 Long-term debt, less current portion 3,217 3,010 Other noncurrent liabilities and deferred income taxes 8,407 7,882 Minority interests 937 904 SHAREHOLDERS' EQUITY Common shares - $2 par value, 15,000,000 shares authorized, 5,379,856 and 5,380,956 outstanding, net of 381,733 and 378,333 treasury shares at par, respectively 10,760 10,762 Paid in capital 2,822 2,720 Retained earnings 142,069 140,339 Accumulated other comprehensive loss (2,192) (4,100) TOTAL SHAREHOLDERS' EQUITY 153,459 149,721 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $210,957 $203,866

Preformed Line Products Company

CONTACT: Eric R. Graef of Preformed Line Products, +1-440-473-9249

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

Harbin Electric Reports Record Revenues and Operating Profits for the First Quarter 2008 -- Sales Grew 65% Year-Over-Year

First Quarter 2008 Financial Highlights -- Total revenues were $22.5 million, an increase of 65% compared to $13.6 million in the first quarter of 2007 -- Operating profit was $8.6 million, up 68% compared to the first quarter 2007 -- Net income was $5.4 million, a 57% increase from the first quarter of 2007 -- Diluted EPS were $0.27, compared to $0.19 for the first quarter 2007 -- Automobile micro-motors business exceeded expectations with approximately $9 million in revenues

HARBIN, China, May 9 /Xinhua-PRNewswire-FirstCall/ -- Harbin Electric, Inc., (the "Company", Nasdaq: HRBN), a market leader in customized linear motors, motor/controller automation systems, automobile specialty micro-motors, and other special motors, today reported preliminary financial results for the quarter ended March 31, 2008.

Financial Highlights for the First Quarter 2008 Q12008 Q12007 YoY% Change Revenue $22,458,185 $13,626,214 65% Gross Profit $10,759,477 $6,857,928 57% Gross Profit Margin 47.9% 50.3% Operating Income $8,635,823 $5,125,625 69% Operating Margin 38.5% 37.6% Net Income $5,353,236 $3,404,063 57% Net Profit Margin 23.8% 25.0% Diluted EPS $0.27 $0.19 41%

Mr. Tianfu Yang, Harbin Electric's Chairman and Chief Executive Officer, stated, "We are very pleased with our record-breaking quarterly results. For the past few years, we have been delivering significant year-over-year growth. This quarter, once again, we are demonstrating to investors our ability to achieve continued growth while maintaining high margins due to our strong product development capabilities and technology-focused strategy. For example, our automobile specialty micro-motors business achieved a remarkable performance in the first quarter 2008 with approximately $9 million in sales while maintaining a gross margin of over 40%. This fast-growing business accounted for 39% of our total revenues during the quarter and exceeded management expectations. We believe that these results further validate our vision and successful strategic move into the attractive and fast growing automobile specialty micro-motors segment, by leveraging our product development expertise and manufacturing capabilities."

Revenues

For the quarter ended March 31, 2008, revenues increased 65% to $22.5 million compared to $13.6 million in the first quarter of 2007. Linear motors and related integrated application systems contributed 42% to total revenues, automobile specialty micro-motors contributed 39%, and controllers, armatures, and other special motors contributed 19% compared to 68%, zero, and 32%, respectively, for the three months ended March 31, 2007.

The 65% year-over-year increase in revenues was primarily driven by increased sales of automobile specialty micro-motors segment, which contributed approximately $9 million to total revenues during the quarter.

The Company's products sold directly to customers in North America accounted for 17% of total revenues in the quarter ended March 31, 2008.

Gross Profit

Gross profit for the first quarter 2008 was $10.76 million compared to $6.86 million in the same period in 2007, a 57% year-over-year increase driven primarily by higher sales volume. The gross profit margin was 47.9% in the first quarter of 2008 compared to 50.3% in the corresponding period of last year. The slight decline in gross profit margin was mainly due to changes in the product mix attributable to the new automobile micro-motor business. By segment, the gross profit margin was 54% for linear motors and 42% for automobile specialty micro-motors. Changes in raw materials prices did not have a material impact on gross margins for the quarter.

Operating Income

The Company achieved a 68% year-over-year growth in operating profit, to $8.64 million in the three months ended March 31, 2008 from $5.13 million in the three months ended March 31, 2007. The significant growth in operating profit was primarily due to the growth in sales from the automobile micro-motors business. Operating margin was up slightly, 38.45% for the three months ended March 31, 2008 versus 37.62% for the same quarter of 2007, indicating improved operating efficiency.

Selling, general and administrative (SG&A) expenses were $2.03 million for the quarter, compared to $1.51 million for the same quarter of 2007. The year-over-year dollar increase in SG&A was associated primarily with higher shipping-and-handling costs due to volume growth. As a percentage of total sales, the Company's total SG&A expenses declined to 9.0% in the quarter from 11.1% in the same quarter last year. Going forward, the Company expects that SG&A expenses will more likely range between 10% and 12% of sales. The expected higher SG&A expenses are primarily due to activities related to compliance with Section 404 of the Sarbanes-Oxley Act of 2002 and expenses associated with the completion of the proposed acquisition of Weihai Hengda Electric Motor Co. Ltd. announced on March 28, 2008.

Income Tax

As the Company is located in a designated economic development zone and falls under the "High Science and Technology Enterprises," from July 1, 2004 through December 31, 2007, the Company was exempted from income tax. From January 1, 2008 to December 31, 2010, the Company has been approved to have its tax rate reduced to 10% and the local government has further approved an additional rebate of 2.5%. This rebate will be included in non-operating income. For the quarter ended March 31, 2008, the Company recorded an income tax of $990,617.

Net Income

Net income for the first quarter was $5.35 million compared to $3.40 million for the corresponding quarter in 2007, representing a year-over-year growth of 57%. This growth was mainly driven by increased sales from the automobile specialty micro-motors business.

Earnings per diluted share grew 41% from $0.19 in the first quarter 2007 to $0.27 in this quarter.

Looking ahead, Mr. Yang stated, "We expect our automobile specialty micro-motor business to be the key growth driver in 2008. We believe that our linear motor driven tower-type oil pump developed for Daqing Oil Field and the permanent magnetic linear servo motor designed for ITW will also contribute to the overall growth in the year. Based on these major growth drivers combined with the existing operations, we expect total revenues for 2008 to grow more than 40% over 2007."

"The construction of our Shanghai facility is ongoing. We have received some new production equipment and expect to begin their installation in the next month. A successful start-up of the Shanghai facility this year could bring some upside potential to our expected revenue growth. Due to additional work related to the start-up of the new facility, we expect less than 10% of the Shanghai capacity to be operational this year, with the possibility of reaching 40% of total capacity in 2009," Mr. Yang continued.

"We are also moving forward with the announced acquisition of Weihai Hengda Electric Motor Co. Ltd. The financial auditing process of the target company continues according to plan, and the third party evaluation agent, Houlihan Lokey Howard & Zukin, arrived on site today to begin the evaluation work. Upon completion of that work, we should be able to determine an agreed price for the acquisition and provide additional financial information. Assuming the acquisition is completed as scheduled, we expect the new company to contribute to revenue growth this year."

"We have begun the testing of the linear motor driving system for the urban mass transportation train on the 300 meter-long track we built at our Harbin facility. The preliminary testing has been very successful, and we are conducting further evaluations and modifications while waiting for all other component systems (such as electricity power supply, control, etc.) from other vendors to be ready for integration. We are optimistic that the testing of the entire train system will commence toward the end of the year, which will enable us to start production on a small scale in 2009. We take great pride in being the first Chinese manufacturer involved in producing the first domestically-made linear motor driven train."

Mr. Yang concluded, "I am extremely excited about the bright future of Harbin Electric. China is in a transition phase from low to higher value-added manufacturing and from 'Made in China' to 'Developed in China'. While the low value-added Chinese manufacturers are exiting the center stage of China's economy, the high value-added and technology-oriented manufacturers are rapidly rising and are increasing their competitiveness in the global market for industrial goods. We believe that our Company is in the right industry at the right historical moment, and in a perfect position to shine."

First Quarter 2008 Earnings Call and Webcast

The Company will host a conference call to discuss the first quarter financial results at 8:30 a.m. ET on Friday, May 9, 2008. Tianfu Yang, Chairman and Chief Executive Officer, Zedong Xu, Chief Financial Officer, and Christy Shue, Executive Vice President will attend the call. The Company plans to release its first quarter earnings before the conference call.

To participate in the conference call, please dial any of the following numbers:

USA: 1-800-603-1779 International: +1-706-643-7429 North China: 10-800-713-0755 South China: 10-800-130-0724 The conference ID for the call is 46403018.

A replay of the call will be available beginning at 9:30 a.m. ET on May 9, 2008 and will remain available through midnight on May 16th, 2008.

To access the replay, please dial any of the following numbers: USA: 1-800-642-1687 International: +1-706-645-9291 Passcode is 46403018.

This conference call will be broadcast live over the Internet. To listen to the live webcast, go to http://www.harbinelectric.com/ and click on "Harbin Electric Q1 2008 Earnings Conference Call." The replay of the webcast will be available for 30 days and will be archived on the Investor Kits page of the website after 30 days.

About Harbin Electric, Inc.:

Harbin Electric, headquartered in Harbin, China, is a market leader in linear motors, motor/controller automation systems, automobile specialty micro-motors, and other special motors. It is the first and, to our knowledge, the only Chinese company to provide product development and integrated production tailored to customer applications in this industry. The Company takes pride in its environmental and social policies. The Company believes that it provides its customers with energy-efficient products and its employees with a family-friendly work environment, based on competitive compensation and humane work schedules.

A strong focus of Harbin Electric is its emphasis on technology, innovation and creativity, based on a strong research and development ("R&D") capabilities. It recruits talent worldwide and through collaboration with top scientific institutions. Its ISO-certified manufacturing facility is equipped with state-of-the-art production lines and quality control systems to ensure product quality.

China's rapidly-expanding economy and governmental policies supporting the industry have provided a strong growth platform for the Company. To learn more about Harbin Electric, visit http://www.harbinelectric.com/ .

Safe Harbor Statement

The actual results of Harbin Electric, Inc. could differ materially from those described in this press release. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release may be found in the Company's periodic filings with the U.S. Securities and Exchange Commission, including the factors described in the section entitled "Risk Factors" in its quarterly report on Form 10-QSB for the quarter ended June 30, 2007. The Company does not undertake any obligation to update forward-looking statements contained in the press release. This press release contains forward-looking information about the Company that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and the Company's future performance, operations and products.

(Financial tables to follow) HARBIN ELECTRIC, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2008 AND DECEMBER 31, 2007 (PRELIMINARY AND UNAUDITED) A S S E T S March 31, December 31, 2008 2007 UNAUDITED CURRENT ASSETS: Cash 36,904,184 45,533,893 Accounts receivable, net of allowance for doubtful accounts of $121,071 and $116,238 as of March 31, 2008 and December 31, 2007, respectively 29,575,532 23,216,543 Inventories 2,554,312 2,570,929 Other receivables 1,149,591 326,639 Advances on inventory purchases 2,738,306 1,772,204 Total current assets 72,921,925 73,420,208 PLANT AND EQUIPMENT, net 26,838,936 23,858,035 OTHER ASSETS: Debt issue costs, net of amortization 1,986,537 2,214,717 Advances on equipment purchases 31,277,020 24,328,386 Advances on intangible assets 1,442,280 1,384,710 Deposits on acquisition 714,000 -- Intangible assets, net of accumulated amortization 5,897,800 5,899,989 Other assets 413,676 397,263 Cross currency hedge receivable 121,837 145,945 Deposit in derivative hedge 1,000,000 1,000,000 Total other assets 42,853,150 35,371,010 Total assets 142,614,011 132,649,253 L I A B I L I T I E S A N D S H A R E H O L D E R S' E Q U I T Y CURRENT LIABILITIES: Accounts payable 128,504 263,314 Other payables 221,636 1,380,119 Other payables -- related party -- 45,491 Accrued liabilities 63,024 83,099 Customer deposits 345,172 333,253 Taxes payable 1,772,402 839,299 Interest payable 253,823 1,122,000 Total current liabilities 2,784,561 4,066,575 NOTES PAYABLE, net of debt discount $15,745,236 and $16,878,269 as of March 31, 2008 and December 31, 2007, respectively 32,465,660 33,121,731 FAIR VALUE OF DERIVATIVE INSTRUMENT 15,338,258 10,844,372 Total liabilities 50,588,479 48,032,678 COMMITMENTS AND CONTINGENCIES -- -- SHAREHOLDERS' EQUITY: Common Stock, $0.00001 par value, 100,000,000 shares authorized, 18,370,456 and 18,143,156 shares issued and outstanding as of March 31, 2008 and December 31, 2007, respectively 183 181 Paid-in-capital 46,212,369 44,970,589 Retained earnings 36,643,931 32,281,312 Statutory reserves 10,005,079 9,014,462 Accumulated other comprehensive loss (836,030) (1,649,969) Total shareholders' equity 92,025,532 84,616,575 Total liabilities and shareholders' equity 142,614,011 132,649,253 HARBIN ELECTRIC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007 (PRELIMINARY AND UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2008 2007 REVENUES 22,458,185 13,626,214 COST OF SALES 11,698,708 6,768,286 GROSS PROFIT 10,759,477 6,857,928 RESEARCH AND DEVELOPMENT EXPENSE 97,695 217,840 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 2,025,959 1,514,463 INCOME FROM OPERATIONS 8,635,823 5,125,625 OTHER EXPENSE (INCOME), NET Other income, net (4,787) (2,456) Non-operating expense (income), net 13,977 (6,321) Interest expense, net 2,282,780 1,730,339 Total other expense (income), net 2,291,970 1,721,562 INCOME BEFORE PROVISION FOR INCOME TAXES 6,343,853 3,404,063 PROVISION FOR INCOME TAXES 990,617 -- NET INCOME 5,353,236 3,404,063 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment 5,307,825 704,668 Change in fair value of derivative instrument (4,493,886) -- COMPREHENSIVE INCOME 6,167,175 4,108,731 EARNINGS PER SHARE Basic Weighted average number of shares 18,209,978 16,600,451 Earning per share $0.29 $0.21 Diluted Weighted average number of shares 19,952,721 18,016,627 Earning per share $0.27 $0.19 HARBIN ELECTRIC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007 (PRELIMINARY AND UNAUDITED) 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $5,353,236 $3,404,063 Adjustments to reconcile net income to cash provided by (used in) operating activities: Depreciation 211,710 103,730 Amortization of intangible assets 242,303 22,946 Amortization of debt issuance costs 228,181 123,109 Amortization of debt discount 1,343,929 1,133,033 Gain on derivative instrument (168,214) -- Stock based compensation 456,232 246,458 Change in operating assets and liabilities Accounts receivable (5,286,259) (637,101) Inventories 120,299 (297,191) Other receivables (815,265) (176,578) Other receivables - related parties -- (6,321) Advances on inventory purchases (877,424) (692,308) Other assets -- (133,507) Accounts payable (139,993) (87,502) Other payables (1,172,757) (1,906) Other payables - Related Party (46,377) 14,882 Accrued liabilities (18,598) -- Customer deposits (1,896) 8,480 Taxes payable 879,686 (223,419) Interest payable (868,177) (1,122,000) Net cash (used in) provided by operating activities (559,384) 1,678,868 CASH FLOWS FROM INVESTING ACTIVITIES: Advances on intangible assets -- 331,350 Advances on equipment purchases (5,813,976) (12,530,558) Additions to intangible assets (697,544) (198,998) Additions to plant and equipment (2,164,933) (284,156) Deposit on acquisition (698,850) -- Net cash used in investing activities (9,375,303) (12,682,362) CASH FLOWS FINANCING ACTIVITIES: Proceeds received from conversion of warrants and options 785,548 -- Repayment of notes payable (2,000,000) -- Net cash used in financing activities (1,214,452) -- EFFECTS OF EXCHANGE RATE CHANGE IN CASH 2,519,430 657,437 DECREASE IN CASH (8,629,709) (10,346,057) CASH, beginning of period 45,533,893 67,313,919 CASH, end of period $36,904,184 $56,967,862 For investor and media inquiries, please contact: Harbin Electric, Inc. In China Tel: +86-451-8611-6757 Email: MainlandIR@Tech-full.com In the U.S. Christy Shue Executive VP, Finance & Investor Relations Tel: +1-631-312-8612 Email: cshue@HarbinElectric.com

Harbin Electric Inc.

CONTACT: In China, +86-451-8611-6757, or MainlandIR@Tech-full.com; In
the U.S. - Christy Shue, Executive VP, Finance & Investor Relations,
+1-631-312-8612, or cshue@HarbinElectric.com, both of Harbin Electric, Inc.

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

TGrid 5.0 Advances Automatic, High-Quality Meshing Tools for Increased ProductivityRelease from ANSYS Introduces Key New Technologies in Surface and Volume Meshing

SOUTHPOINTE, Pa., May 9 /PRNewswire-FirstCall/ -- ANSYS, Inc. , a global innovator of simulation software and technologies designed to optimize product development processes, today announced the release of version 5.0 of its TGrid(TM) advanced mesh generation software. TGrid technology is a specialized pre-processor for fluid flow analysis. It is used to create large unstructured tetrahedral and hex-core meshes for complex geometry. The software is utilized heavily in large-scale automotive and aerospace applications, in which advanced meshing techniques are required for the computational analysis of fluid flow. This latest version of TGrid software introduces new tools and enhanced capabilities to generate high-quality meshes more efficiently. In addition, this release exhibits a continued commitment by ANSYS to deliver best-in-class meshing technology.

"This latest release of TGrid software is a prime example of how ANSYS provides the right meshing solution for the right problem," said Brian Drew, vice president at ANSYS, Inc. "Our portfolio comprises a deep and comprehensive suite of meshing technology that supports Simulation Driven Product Development(TM). We intend to continue core technology improvements in order to reduce the meshing bottleneck, producing best-in-class tools designed to address all kinds of applications."

In today's automotive industry, front-end underhood thermal management (UTM) represents one of the most challenging meshing applications. TGrid 5.0 software addresses this by capturing best practices and automating the meshing - once a manual, time-consuming task - required for this class of problems. The surface wrapper method is newly equipped with a revolutionary fully automatic leak/hole detection and fixing algorithm; this eliminates tedious manual cleanup of the often-dirty underhood geometry. A single surface recovery technique for thermal shields is available in TGrid 5.0. Combined with shell conduction models available in FLUENT(R) software, the result is efficient and accurate UTM solutions. The entire underhood wrapper-based meshing process has been encapsulated using journal file capabilities in TGrid for overnight batch execution. Moreover, the user interface now exposes key parameters and automates specific details, such as meshing heat exchanger zones and inserting cylindrical domains for moving reference frames in the fan region. Similar techniques could be used to develop customized wrapper automation for other industry applications.

"We are observing significant productivity improvements on several fronts with TGrid 5.0," said Alexis Scotto d'Apollonia from the vehicle engineering numerical modeling department at PSA Peugeot Citroen. The company deployed TGrid software for automotive external aerodynamics, underhood thermal management and passenger thermal comfort. "Besides overall speed enhancements, we are able to use the wrapper to quickly change parts or full assemblies in engine configurations. The new prism layer technology is avoiding tedious manual surface mesh preparation and decomposition. The gain for end users will be substantial."

With this release, a new tetrahedral meshing algorithm, combining the speed of Delaunay and the quality of an advancing front, has been added to the TGrid meshing arsenal. This new technology in conjunction with an advanced initialization scheme and several quality enhancing tools leads to improved accuracy of the fluid flow analysis. In addition, enhanced prism layer operations now include fully automatic proximity handling to support highly complex geometry. Finally, a new cavity re-meshing module allows users to swiftly replace parts and components without re-meshing the full model.

"The new tetrahedral meshing in TGrid 5.0 is absolutely fantastic: It is the most reliable tetrahedral mesher that I have ever used," said Brian R. Thompson, analyst at the aerodynamics department of Raytheon Missile Systems, which has been beta testing TGrid 5.0 on aerospace applications. "The tool allows me to specify a growth rate and has improved ability to remove highly skewed sliver cells. It produces high-quality smooth tetrahedral meshes every time."

For downloadable images, visit http://www.ansys.com/newsimages. About ANSYS, Inc.

ANSYS, Inc., founded in 1970, develops and globally markets engineering simulation software and technologies widely used by engineers and designers across a broad spectrum of industries. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for fast, efficient and cost- conscious product development, from design concept to final-stage testing and validation. The Company and its global network of channel partners provide sales, support and training for customers. Headquartered in Canonsburg, Pennsylvania, U.S.A., with more than 40 strategic sales locations throughout the world, ANSYS, Inc. and its subsidiaries employ approximately 1,400 people and distribute ANSYS products through a network of channel partners in over 40 countries. Visit http://www.ansys.com/ for more information.

ANSYS, ANSYS Workbench, AUTODYN, CFX, FLUENT and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

ANSYS, Inc.

CONTACT: Media: Kelly Wall, +1-724-514-3076, kelly.wall@ansys.com, or
Investors: Annette Arribas, +1-724-514-1782, annette.arribas@ansys.com

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

Scopus to Send Letter to ShareholdersProvides Additional Details Regarding the Special Meeting

TEL AVIV, Israel, May 9 /PRNewswire-FirstCall/ -- Scopus Video Networks Ltd. , a provider of digital video networking products, today announced that it will be mailing the following letter to shareholders in connection with the Company's June 16, 2008 Special Meeting of Shareholders. The letter provides additional details regarding the Special Meeting.

The full text of the letter follows: Dear Shareholder:

You are cordially invited to attend the Special Meeting of Shareholders of Scopus Video Networks Ltd. ("we," the "Company" or "Scopus") to be held at our offices located at 10 Ha'amal Street, Park-Afek, Rosh-Ha'ayin 48092, Israel on Monday, June 16, 2008, at 4:00 p.m., local time, and thereafter as it may be adjourned from time to time (the "Meeting").

The Meeting is of particular importance. As you may know, on April 18, 2008, Optibase Ltd. ("Optibase"), a 37% shareholder of the Company, demanded that we convene, within 21 days, a shareholder meeting to (1) approve a resolution that will declassify our Board of Directors and (2) elect a slate of directors proposed by Optibase, such that, following adoption of these resolutions, our Board of Directors will be comprised by a majority of Optibase's nominees. This demand came shortly after the negotiations between Scopus and Optibase regarding a possible business combination were suspended. See under "Important Background" below.

Your Board is willing to recognize the views of some investors, including Optibase for that matter, who believe that a classified board structure may reduce the accountability of directors to shareholders because the directors on such a board do not face an annual election. However, in light of the recent negotiations between the parties, your Board is concerned by the timing of Optibase's proposals and their motives.

In light of the foregoing, your Board proposes an alternative resolution (Proposal #1 on your proxy card), whereby the Board will be declassified, but such declassification will become effective as of the next annual meeting of shareholders, which is scheduled to take place by January 2009 at the latest. Adopting this proposal will allow your Board, which is currently comprised by directors who are not affiliated with Optibase, time to consider strategic alternatives, including, if desirable, resuming negotiations of an arms length transaction with Optibase. The Board therefore recommends a vote "FOR" Proposal #1.

Your Board's unanimous view is that our proposal (Proposal #1), better serves the interests of all of our shareholders. Optibase's proposals (Proposals #2 and #3) are adequately addressed by Proposal #1 and are likely to interfere with the ability of your Board to consider strategic alternatives, including to negotiate an arms-length transaction with Optibase. The Board therefore recommends a vote "AGAINST" Proposals #2 and #3.

Important Background

Commencing September 2007, we and Optibase held preliminary discussions regarding a possible negotiated business transaction. During such discussions, we explored a few alternatives, including a full merger of Scopus and Optibase. Beginning January 2008, we engaged in preliminary negotiations with Optibase regarding a possible acquisition by Scopus of Optibase's operations through an asset purchase transaction.

During February and March 2008, these negotiations evolved and led to an extensive due diligence and the exchange of draft transaction documents, whereby we were considering to acquire Optibase's operations in consideration for ordinary shares of Scopus. The proposed transaction entailed, among others, a termination of the current classified structure of the Board and appointment of representatives of Optibase to our Board. However, in early April 2008, the negotiations strained, when, in our view, Optibase was attempting to renegotiate some of the key terms of the transaction, primarily the proposed consideration. We thereafter made a good faith attempt to propose a viable solution, which was communicated to Optibase on April 14, 2008. Optibase responded by sending us its proposed shareholder resolutions on Friday, April 18th, effectively "suspending" (using Optibase's own words) the negotiations.

During the discussions and negotiations with Optibase, your Board held numerous meetings to carefully evaluate the transaction and ensure that the interests of all shareholders are protected. While we believe that a fair transaction with Optibase could be achieved, Optibase has chosen to use its position as a principal shareholder of the Company to attempt to replace your Board. This, in our mind, will allow Optibase to impose a transaction which, in your Board's view, would have provided disproportionate benefits to Optibase to the detriment of our other shareholders. In other words, we believe that Optibase's interest is not aligned with those of our other shareholders.

For additional information, you are encouraged to read the description under the section entitled "Introduction - important Background" in the Proxy Statement.

Our Proposal (Proposal #1 in the Proxy Card)

As described above, your Board is concerned by the timing of Optibase's proposals and their motives. To that end, your Board proposes to adopt a proposal to declassify the Board, but only effective as of the next annual meeting of shareholders. Adopting this proposal will allow your Board, which is currently comprised by directors who are not affiliated with Optibase, time to consider strategic alternatives, including resuming negotiations of an arms-length transaction with Optibase. The Board therefore recommends a vote "FOR" Proposal #1.

Optibase Proposals (Proposals #2 and #3 in the Proxy Card)

In its letter of April 18, 2008, Optibase proposed to (1) amend our Articles of Association in a manner that will essentially repeal the current classified structure of our Board and (2) subject to approval of the foregoing resolution, elect Shlomo (Tom) Wyler, Alex Hilman, Yaron Simler, Orit Leitman and Tali Yaron-Eldar to our Board.

In such letter, Optibase states that it believes "that the ability to elect directors is the single most important use of the shareholder franchise. Accordingly, directors should be accountable to shareholders on an annual basis. The election of directors by classes, for three-year terms, in our opinion, minimizes accountability and precludes the full exercise of the rights of shareholders to approve or disapprove annually the performance of a director or directors. We believe that Scopus' financial performance is linked to its corporate governance policies and procedures, and the level of management accountability they impose."

With the assistance of its independent legal advisors, your Board has given Optibase's proposals and arguments significant consideration. While we believe these are all fair, yet routine, arguments (that we believe are adequately addressed by our Proposal #1), we cannot help but wonder on the timing of such proposals and their motives in light of the recent developments described above.

While Optibase states that our financial performance is linked to our corporate governance policies and procedures, it does not attempt to share with you (or us for that matter) its insight of how it intends to improve financial performance or enhance shareholder value. Actually, we believe we had a positive start to 2008, as demonstrated by our operating results for the first quarter in 2008, including reaching a first quarter record of $16.4 million in revenues and continued improvement in other business fundamentals.

As far as we know, proposals to declassify the board and/or present a proponent's nominees, tend to come with some proposed agenda or suggestions in this respect. All that we could find in this respect (in the Schedule 13D that Optibase filed with the SEC on April 18th), is that Optibase "reserves the right to continue discussions with the Issuer's board of directors, management and/or representatives with respect to a possible negotiated business transaction." If this is indeed the "plan," we defer to you, our shareholders, to determine what type of Board is more well-equipped to continue such discussions.

Moreover, if Optibase desires to allow all shareholders to register their views on the identity of the directors serving on the Board on an annual basis, it should have allowed all shareholders ample time to suggest their own candidates to the Board. By suggesting its own slate of directors at the same meeting designed to restructure the manner in which directors have been elected since we first went public in 2005, Optibase, in our view, hinders the ability of other shareholders to exercise their rights to share in the election process and, consequently, undermines the legitimacy of Optibase's own arguments.

Retaining the classified board structure for a limited time, as proposed by us in Proposal #1, would protect the Boards' independence and improve the Board's ability to consider strategic alternatives and allow the Board an opportunity to achieve a result which maximizes shareholder value. The Board therefore recommends a vote "AGAINST" Proposals #2 and #3.

How to Vote

We encourage you to read carefully the proxy statement, which discusses in detail the various matters to be voted upon at the Special Meeting. Your vote is very important! Whether or not you plan to attend the meeting, it is important that your shares be represented. Accordingly, you are kindly requested to complete, date and sign the enclosed form of proxy and return it promptly in the pre-addressed envelope provided, so as to be received not later than 48 hours before the Meeting. No postage will be required if mailed in the United States.

As evident by our own Proposal #1, this is not a fight for keeping the classified board structure. It is a contest for allowing us to execute our strategic business plan and provide the Board an opportunity to achieve a result which maximizes shareholder value. The Board urges you to send Optibase a message by voting for Proposal #1 (and against Proposals #2 and #3).

We appreciate your continuing interest in Scopus Video Networks Ltd. Very truly yours, David Mahlab Chairman of the Board of Directors About Scopus Video Networks

Scopus Video Networks develops, markets and supports digital video networking solutions that enable network operators to offer advanced video services to their subscribers. Scopus' solutions support digital television, HDTV, live event coverage and content distribution.

Scopus' comprehensive digital video networking solution offerintelligent video gateways, encoders, decoders and network management products. Scopus' solutions are designed to allow network operators to increase service revenues, improve customer retention and minimize capital and operating expenses.

Scopus' customers include satellite, cable and terrestrial operators, broadcasters and telecom service providers. Scopus' products are used by hundreds of network operators worldwide.

For more information visit: http://www.scopus.net/ FORWARD-LOOKING STATEMENTS

This press release and the letter quoted herein may include "forward-looking statements" that are not purely historical regarding our intentions, hopes, beliefs, expectations and strategies for the future. Forward-looking statements that are based on various assumptions may be identified by the use of forward-looking terminology, such as "may," "expects," "intends," "believes," "view" and similar words and phrases. Such forward-looking statements are inherently subject to known and unknown risks and uncertainties. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including those set forth in our annual report on Form 20-F. Except as required by law, Scopus does not undertake any obligation to update forward-looking statements made herein.

Company Contact: Investor Relations Contact Moshe Eisenberg Ehud Helft / Kenny Green Chief Financial Officer GK Investor Relations Tel: +972-3-900-7100 Tel: (US) +1-646-201-9246 Moshee@scopus.net info@gkir.com

Scopus Network Technologies Ltd

CONTACT: Company Contact: Moshe Eisenberg, Chief Financial Officer,
Tel: +972-3-900-7100, Moshee@scopus.net; Investor Relations Contact: Ehud
Helft / Kenny Green, GK Investor Relations, Tel: (US) +1-646-201-9246,
info@gkir.com

Xenos Reports Second Quarter and First Half Results

TORONTO, May 9 /PRNewswire-FirstCall/ -- Xenos Group Inc. (TSX:XNS), today reported net income of $247,000 in the second quarter and net income for the first six months of fiscal 2008 of $775,000 or approximately $.08 per share.

Xenos revenues for the second quarter ended March 31, 2008 rose to $3,805,000 as compared to revenues of $3,720,000 for the same quarter last year. Revenues for the six months ended March 31, 2008 were $7,954,000 as compared to $7,651,000 for the first six months of fiscal 2007.

Xenos reported a significantly improved EBITDA of $979,000 for its first half as compared to EBITDA of $460,000 for the six months ended March 31, 2007.

Total expenses were reduced to $5,717,000, from $6,530,000 in the first half of fiscal 2007. Sales and marketing expenses were reduced to $2,419,000 for the first six months of the year from $2,930,000 last year.

Comparative results and revenues for the first two quarters were impacted by the relative strength in the Canadian dollar against our major trading currencies, particularly the US dollar. The CAN$/US$ closing rate at the end of the second quarter was $0.974 compared to $0.866 at the end of the second quarter last year, an increase of 12.5%. Revenue generated in US dollars represented the majority of revenues earned in the first half of the year. Xenos did however benefit from a foreign exchange gain of $212,000 for the first six months compared to a loss of $27,000 in the same period last year.

The second quarter continued the trends of both year-over-year revenue growth (7th consecutive quarter) and improved EBITDA (6th consecutive quarter).

At the half way point in the year, the Company is substantially on target to meet its overall financial objectives for the year, and its priority software development objective, initial release of the code-named Xenos Enterprise Server ("XES"). The beta release program with select customers is planned for the fourth quarter of this fiscal year, with the public release by October 1, 2008.

"We designed XES in response to our customers' business and technical requirements for a solution currently unfulfilled in the marketplace. They wanted to rationalize how to integrate, translate, repurpose, route, archive and deliver actionable business information throughout the enterprise and beyond. By providing data and document transformation as an enterprise service, XES enables the adoption of a cost-effective enterprise information architecture tailored to meet business and green IT objectives without the constraints imposed by incompatible hardware or software platforms and disparate data and document formats," said Stuart Butts, Chairman and CEO of Xenos.

At March 31, 2008, Xenos held cash of $8,248,000 or $.82 per common share (and no significant long-term debt), compared to $7,357,000 or $.74 at September 30, 2007.

Financial Highlights - (complete statements are attached): ------------------------------------------------------------------------- Three Months Six Months ------------------------------------------------------------------------- Period Ended March 31, 2008 2007 2008 2007 (in CDN$000s except per share amounts) Sales 3,805 3,720 7,954 7,651 Gross profit 2,893 2,994 6,180 6,175 EBITDA 255 234 979 460 Net income (loss) 247 (340) 775 (324) Net income (loss) per share 0.03 (0.03) .08 (0.03) Cash & cash equivalents 8,248 7,533 Cash per Share $0.82 $0.76 Common Shares Outstanding 10,005 9,937 ------------------------------------------------------------------------- See discussion of non-GAAP financial measures below. Conference Call Notice

A conference call for shareholders, analysts and other members of the investment community has been scheduled for Friday, May 9 at 10:00 a.m. Eastern Time. Stuart Butts, Chairman, President and Chief Executive Officer, and George Kypreos, Chief Financial Officer, will discuss the financial results and provide updates on operations. To participate, please dial 416-644-3416, or 1-800-814-4862 approximately 10 minutes before the conference call.

The conference can also be heard over the Internet at the company's website. http://www.xenos.com/

A recording of the conference call will be available through May 16. Please dial 416-640-1917 or 1-877-289-8525 and enter the reservation number 21271208, followed by the number sign, to listen to the rebroadcast. The call will also be archived for 30 days on the Xenos website.

About Xenos

Xenos (TSX:XNS) high-performance software solutions streamline enterprise information supply chains. We enable our customers to process, transform, repurpose, personalize and deliver their data and documents when they need it, where they need it and how they need it. Xenos extends the value of existing IT investments, enabling organizations to increase efficiency, agility and accountability, while supporting Green IT initiatives.

By streamlining, standardizing and automating the handling of information on demand, our customers reduce costs while increasing a powerful competitive advantage-adaptability. Xenos has customers worldwide in financial services, insurance, healthcare, telecommunications, manufacturing, logistics, transportation, retail and government sectors. Xenos sells and supports its solutions directly from offices in Canada, the United States, the United Kingdom and France and through a global partner network. Xenos trades on the Toronto Stock Exchange under the trading symbol 'XNS.' For more information, visit http://www.xenos.com/

Certain statements made in this press release are forward-looking within the meaning of certain securities laws. Such forward-looking statements are based on a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or developments in the Company's business or its industry to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. The Company urges you not to place undue reliance on these estimates, opinions and projections. The Company assumes no obligation to update forward-looking statements if assumptions or these plans, estimates, opinions or projections should change.

The Company uses financial measures including, but not limited to, "EBITDA" to supplement its consolidated financial statements, which are presented in accordance with GAAP. EBITDA is not a recognized measure under GAAP and should not be construed as an alternative to net income (loss). Xenos' method of calculating EBITDA may differ from other companies and accordingly may not be comparable to measures used by other companies.

Cash per share is a non-GAAP measure and is calculated by dividing the cash and cash equivalents by the number of common shares outstanding.

(C) 2008 Xenos Group Inc. All rights reserved. Xenos Group Inc. Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended March 31 March 31 2008 2007 2008 2007 --------------------------- --------------------------- Sales $ 3,804,619 $ 3,720,036 $ 7,953,953 $ 7,651,249 Cost of sales 912,010 726,415 1,773,922 1,476,058 ------------- ------------- ------------- ------------- Gross profit 2,892,609 2,993,621 6,180,031 6,175,191 ------------- ------------- ------------- ------------- Expenses Sales and marketing 1,227,246 1,387,398 2,418,785 2,929,812 Research and development 822,080 754,283 1,601,030 1,566,871 Administration and general 566,187 584,309 1,138,999 1,158,778 Reorganization costs - 206,016 - 206,016 Amortization 221,709 291,406 493,120 580,114 Stock based compensation 21,871 34,069 42,438 60,120 Interest and bank charges 11,394 14,798 22,935 28,590 ------------- ------------- ------------- ------------- 2,870,487 3,272,279 5,717,307 6,530,301 ------------- ------------- ------------- ------------- Income (loss) before undernoted items 22,122 (278,658) 462,724 (355,110) Interest and other 68,173 48,044 141,613 79,996 Foreign exchange gain (loss) 164,610 (98,235) 211,698 (27,210) ------------- ------------- ------------- ------------- 232,783 (50,191) 353,311 52,786 ------------- ------------- ------------- ------------- Income (loss) before income taxes 254,905 (328,849) 816,035 (302,324) Provision for income taxes 7,909 11,078 41,207 21,756 ------------- ------------- ------------- ------------- Net income (loss) $ 246,996 $ (339,927) $ 774,828 $ (324,080) ------------- ------------- ------------- ------------- Net income (loss) per common share - Basic $ 0.03 $ (0.03) $ 0.08 $ (0.03) - Diluted $ 0.03 $ (0.03) $ 0.08 $ (0.03) Weighted average number of shares - Basic 9,985,992 9,936,944 - Diluted 10,093,892 9,936,944 ------------------------------------------------------------------------- Deficit, beginning of year $(37,206,488) $(36,573,188) Net income (loss) 774,828 (324,080) ------------- ------------- Deficit, end of period (36,431,660) (36,897,268) ------------- ------------- Xenos Group Inc. Consolidated Balance Sheets (Unaudited) As at March 31 September 30 2008 2007 --------------------------- ASSETS CURRENT Cash and cash equivalents $ 8,247,856 $ 7,356,808 Trade receivables 3,153,557 1,727,224 Other receivables 9,376 5,823 Prepaids 558,862 735,873 Income taxes recoverable 6,444 561 ------------- ------------- 11,976,095 9,826,289 LONG TERM Future income taxes 1,163,586 1,157,857 Capital assets 1,150,382 1,133,965 Intangibles and other assets 1,811,259 1,869,673 ------------- ------------- 4,125,227 4,161,495 ------------- ------------- TOTAL ASSETS $ 16,101,322 $ 13,987,784 ------------- ------------- LIABILITIES CURRENT Payables and accruals $ 2,483,211 $ 2,082,228 Income taxes payable 10,485 15,678 Deferred revenue 4,273,083 3,420,736 Current portion - capital lease 70,700 87,277 ------------- ------------- 6,837,479 5,605,919 LONG TERM Capital lease obligations 33,863 63,713 Deferred revenue 23,261 10,284 Deferred lease inducements 136,099 147,994 ------------- ------------- 193,223 221,991 TOTAL LIABILITIES 7,030,702 5,827,910 SHAREHOLDERS' EQUITY Capital stock 45,125,209 44,997,009 Contributed surplus 377,071 369,353 Deficit (36,431,660) (37,206,488) ------------- ------------- TOTAL SHAREHOLDERS' EQUITY 9,070,620 8,159,874 ------------- ------------- TOTAL LIABILITIES & EQUITY $ 16,101,322 $ 13,987,784 ------------- ------------- Xenos Group Inc. Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Six Months Ended March 31 March 31 2008 2007 2008 2007 --------------------------- --------------------------- Operating activities Net income (loss) $ 246,996 $ (339,927) $ 774,828 $ (324,080) Amortization 221,709 291,406 493,120 580,114 Unrealized foreign exchange (gain) loss (92,535) 38,271 (64,744) (42,922) Loss on disposal of capital assets - 46,179 - 67,837 Future income taxes (7,190) 1,268 (5,729) (8,827) Stock based compensation 21,871 34,069 42,438 60,120 Change in non-cash working capital 828,364 1,025,716 (9,539) 87,566 ------------- ------------- ------------- ------------- 1,219,215 1,096,982 1,230,374 419,808 ------------- ------------- ------------- ------------- Financing activities Capital lease payments (23,486) (21,389) (46,427) (40,587) Proceeds on issue of shares 10,650 - 93,480 - ------------- ------------- ------------- ------------- (12,836) (21,389) 47,053 (40,587) ------------- ------------- ------------- ------------- Investing activities Purchase of capital assets (166,426) (21,657) (180,984) (55,982) Development costs incurred (198,696) (37,115) (270,139) (140,859) ------------- ------------- ------------- ------------- (365,122) (58,772) (451,123) (196,841) ------------- ------------- ------------- ------------- Effect of foreign exchange rate fluctuations on cash and cash equivalents 92,535 (38,271) 64,744 42,922 ------------- ------------- ------------- ------------- Net increase in cash and cash equivalents 933,792 978,550 891,048 225,302 Cash and cash equivalents Beginning of period 7,314,064 6,554,929 7,356,808 7,308,177 ------------- ------------- ------------- ------------- End of period $ 8,247,856 $ 7,533,479 $ 8,247,856 $ 7,533,479 ------------- ------------- ------------- -------------

Xenos Group Inc.

CONTACT: Cory Pala, Investor Relations, Tel: (416) 657-2400, Fax: (416)
657-2300, E-mail: cpala@xenos.com; George Kypreos, Chief Financial Officer,
Tel: (905) 709-1020, Fax: (905) 709-1023, E-mail: gkypreos@xenos.com

Cogent Communications Reports First Quarter 2008 Results

WASHINGTON, May 9 /PRNewswire-FirstCall/ -- Cogent Communications Group, Inc. today announced net service revenue of $52.1 million for the three months ended March 31, 2008, an increase of 19.5% over $43.6 million for the three months ended March 31, 2007. On-net revenue was $42.8 million for the three months ended March 31, 2008, an increase of 29.1% over $33.2 million for the three months ended March 31, 2007. On-net service is provided to customers located in buildings that are physically connected to Cogent's network by Cogent facilities. Off-net revenue was $8.0 million for the three months ended March 31, 2008, a decrease of 5.5% from $8.5 million for the three months ended March 31, 2007. Off-net customers are located in buildings directly connected to Cogent's network using other carriers' facilities and services to provide the last mile portion of the link from the customers' premises to Cogent's network. Non-core revenue was $1.3 million for the three months ended March 31, 2008, a decrease of 35.0% from $2.0 million for the three months ended March 31, 2007. Non-core services are legacy services, which Cogent acquired and continues to support but does not actively sell.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020204/DCM032LOGO )

Gross profit, excluding equity-based compensation expense, increased 33.4% from $22.6 million for the three months ended March 31, 2007 to $30.2 million for the three months ended March 31, 2008. Gross profit margin, excluding equity-based compensation expense, increased from 51.8% for the three months ended March 31, 2007 to 57.9% for the three months ended March 31, 2008.

Earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, was $14.6 million for the three months ended March 31, 2008, an increase of 45.4%, over $10.1 million for the three months ended March 31, 2007. EBITDA, as adjusted, margin increased from 23.1% for the three months ended March 31, 2007 to 28.1% for the three months ended March 31, 2008.

Basic and diluted net loss applicable to common stock was $(0.21) per share for the three months ended March 31, 2008 compared to $(0.19) per share for the three months ended March 31, 2007. Included in the net loss of $9.5 million for the three months ended March 31, 2008, was a non-cash asset impairment charge of $1.6 million. Weighted average common shares outstanding -- basic and diluted -- were 46.3 million for the three months ended March 31, 2008 as compared to 48.7 million for the three months ended March 31, 2007.

Total customer connections were 15,596 as of March 31, 2008 compared to 12,939 as of March 31, 2007, an increase of 20.5%. On-net customer connections were 11,849 as of March 31, 2008 compared to 8,565 as of March 31, 2007, an increase of 38.3%. Off-net customer connections were 3,003 as of March 31, 2008 compared to 3,433 as of March 31, 2007, a decrease of 12.5%. Non-core customer connections were 744 as of March 31, 2008 compared to 941 as of March 31, 2007, a decrease of 20.9%.

The number of on-net buildings increased by 118 from 1,129 as of March 31, 2007 to 1,247 as of March 31, 2008.

Outlook - Second Quarter 2008 Estimates -- Cogent estimates net service revenue for the second quarter of 2008 to be over $54.5 million. -- Cogent estimates that its on-net revenues for the second quarter of 2008 will increase by over 5% from the first quarter of 2008. -- Cogent estimates EBITDA, as adjusted, for the second quarter of 2008 to be over $17.0 million. -- Cogent estimates its net loss per basic and diluted common share for the second quarter of 2008 to be between $(0.08) and $(0.12). Cogent's guidance includes an estimated $4.5 million of non-cash equity-based compensation expense and assumes approximately 46.0 million weighted average common shares outstanding. Outlook - Fiscal Year 2008 Estimates

Cogent is updating and reaffirming the following previously released fiscal year 2008 estimates:

-- Cogent estimates net service revenue for fiscal 2008 to be between $225.0 million and $235.0 million. -- Cogent estimates that its on-net revenues will increase by approximately 30% from fiscal year 2007 to fiscal year 2008. -- Cogent estimates EBITDA, as adjusted, for fiscal 2008 to be between $75.0 million and $80.0 million. -- Cogent estimates its net loss per basic and diluted common share for fiscal 2008 to be between $(0.20) and $(0.30). Cogent previously estimated its net loss per basic and diluted common share for fiscal 2008 to be between $(0.10) and $(0.20). Cogent's 2008 net loss per basic and diluted common share guidance includes $18.0 million to $19.0 million of non-cash equity-based compensation expense and assumes 46.0 million weighted average common shares outstanding. Conference Call and Web site Information

Cogent will host a conference call with financial analysts at 8:30 a.m. (ET) on May 9, 2008 to discuss Cogent's operating results for the first quarter of 2008 and Cogent's expectations for the second quarter of 2008 and fiscal year 2008. Investors and other interested parties may access a live audio webcast of the earnings call under "Events" at the Investor Relations section of Cogent's website at http://www.cogentco.com/htdocs/events.php. A replay of the web cast, together with the press release, will be available on the website following the earnings call.

About Cogent Communications

Cogent Communications is a multinational, Tier 1 facilities-based ISP. Cogent specializes in providing businesses with high speed Internet access and point-to-point transport services. Cogent's facilities-based, all-optical IP network backbone spans over 20 countries and provides IP services in over 100 markets located in North America and Europe.

Cogent Communications is headquartered at 1015 31st Street, NW, Washington, D.C. 20007. For more information, visit http://www.cogentco.com/. Cogent Communications can be reached in the United States at (202) 295-4200 or via email at info@cogentco.com.

COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES Summary of Financial and Operational Results Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 ------- ------- ------- ------- ------- Metric ($ in 000's, except share and per share data) - unaudited On-Net revenue $33,153 $35,295 $37,646 $40,511 $42,811 % Change from previous Qtr. 10.6% 6.5% 6.7% 7.6% 5.7% Off-Net revenue $8,460 $7,938 $7,757 $7,968 $7,994 % Change from previous Qtr. 0.5% -6.2% -2.3% 2.7% 0.3% Non-Core revenue (1) $2,008 $1,875 $1,566 $1,486 $1,305 % Change from previous Qtr. -5.1% -6.6% -16.5% -5.1% -12.2% Net service revenue - total $43,621 $45,108 $46,969 $49,965 $52,110 % Change from previous Qtr. 7.7% 3.4% 4.1% 6.4% 4.3% Network operations expenses (2) $21,015 $21,428 $22,710 $22,395 $21,958 % Change from previous Qtr. 3.3% 2.0% 6.0% -1.4% -2.0% Gross profit (2) $22,606 $23,680 $24,259 $27,570 $30,152 % Change from previous Qtr. 12.0% 4.8% 2.4% 13.6% 9.4% Gross profit margin (2) 51.8% 52.5% 51.6% 55.2% 57.9% Selling, general and administrative expenses (3) $12,562 $12,625 $12,512 $14,312 $15,550 % Change from previous Qtr. 0.8% 0.5% - 0.9% 14.4% 8.7% Depreciation and amortization expenses $15,907 $16,332 $16,627 $16,773 $16,296 % Change from previous Qtr. 8.0% 2.7% 1.8% 0.9% -2.8% Asset impairment $ - $ - $ - $ - $1,592 % Change from previous Qtr. -% -% -% -% 100.0% Equity-based compensation expense $1,619 $2,466 $3,061 $3,238 $5,425 % Change from previous Qtr. 58.9% 52.3% 24.1% 5.8% 67.5% Net loss $(9,404) $(9,192) $(5,423) $(7,006) $(9,540) % Change from previous Qtr. 5.7% 2.3% 41.0% -29.2% -36.2% Basic and diluted net loss per common share $(0.19) $(0.19) $(0.12) $(0.15) $(0.21) % Change from previous Qtr. 9.5% 0.0% 36.8% -25.0% -40.0% Weighted average common shares - basic and diluted 48,655,385 48,378,853 47,073,070 46,885,843 46,265,575 % Change from previous Qtr. 0.3% -0.6% -2.7% -0.4% -1.3% EBITDA, as adjusted (4) $10,057 $11,055 $11,747 $13,340 $14,618 % Change from previous Qtr. 26.3% 9.9% 6.3% 13.6% 9.6% EBITDA, as adjusted margin (4) 23.1% 24.5% 25.0% 26.7% 28.1% Cash provided by operating activities $13,627 $10,286 $11,256 $13,461 $11,492 % Change from previous Qtr. 2,862.4% -24.5% 9.4% 19.6% -14.6% Capital expenditures $7,580 $9,548 $8,977 $4,284 $9,778 % Change from previous Qtr. 111.4% 26.0% -6.0% -52.3% 128.2% Customer Connections - end of period On-Net 8,565 9,773 10,501 11,192 11,849 % Change from previous Qtr. 10.1% 14.1% 7.4% 6.6% 5.9% Off-Net 3,433 3,128 3,021 2,986 3,003 % Change from previous Qtr. -2.7% -8.9% -3.4% -1.2% 0.6% Non Core 941 885 861 804 744 % Change from previous Qtr. -6.7% -6.0% -2.7% -6.6% -7.5% Total 12,939 13,786 14,383 14,982 15,596 % Change from previous Qtr. 5.1% 6.5% 4.3% 4.2% 4.1% Other - end of period Buildings On-Net 1,129 1,159 1,189 1,217 1,247 Employees 372 394 421 451 460 (1) Consists of legacy services of companies whose assets or businesses were acquired by Cogent, including voice services (only provided in Toronto, Canada), point-to-point private line services and managed modem services. (2) Excludes equity-based compensation expense of $49, $74, $61, $65 and $85 in the three months ended March 31, 2007, June 30, 2007, September 30, 2007, December 31, 2007 and March 31, 2008, respectively. (3) Excludes equity-based compensation expense of $1,570, $2,392, $3,000, $3,173 and $5,340 in the three months ended March 31, 2007, June 30, 2007, September 30, 2007, December 31, 2007 and March 31, 2008, respectively. (4) See schedule of non-GAAP metrics below for definition and reconciliation to GAAP measures. EBITDA, as adjusted, includes net gains from the disposition of assets of $13, $82 and $16 in the three months ended March 31, 2007, December 31, 2007 and March 31, 2008, respectively. EBITDA, as adjusted, excludes gains on lease restructurings of $154 and $2,110 for the three months ended March 31, 2007 and September 30, 2007, respectively. Schedule of Non-GAAP Measures - EBITDA and EBITDA, as adjusted

EBITDA represents net (loss) income before income taxes, net interest expense, depreciation and amortization. Management believes the most directly comparable measure to EBITDA calculated in accordance with GAAP is cash flows provided by operating activities.

EBITDA, as adjusted, represents EBITDA less gains on lease restructurings. The Company has excluded these gains because they relate to its capital structure. The Company believes EBITDA, as adjusted, is a useful measure of its ability to service debt, fund capital expenditures, expand its business and make bonus determinations for its employees. EBITDA, as adjusted, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. The Company also believes that EBITDA is a frequently used measure by securities analysts, investors, and other interested parties in their evaluation of issuers.

EBITDA and EBITDA, as adjusted, are not recognized terms under generally accepted accounting principles in the United States, or GAAP, and accordingly, should not be viewed in isolation or as a substitute for the analysis of results as reported under GAAP, but rather as a supplemental measure to GAAP. For example, EBITDA is not intended to reflect the Company's free cash flow, as it does not consider certain current or future cash requirements, such as capital expenditures, contractual commitments, and changes in working capital needs, interest expenses and debt service requirements. The Company's calculations of EBITDA and EBITDA, as adjusted, may also differ from the calculation of EBITDA and EBITDA, as adjusted, by its competitors and other companies and as such, its utility as a comparative measure is limited.

COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES EBITDA and EBITDA, as adjusted, are reconciled to cash flows provided by operating activities in the table below. Q1 Q2 Q3 Q4 Q1 Q2 2007 2007 2007 2007 2008 2008 2008 ---- ---- ---- ---- ---- ---- ---- Midpoint Estimated Estimated ($ In 000's) - unaudited Cash flows provided by operating activities $13,627 $10,286 $11,256 $13,461 $11,492 $15,000 $70,000 Changes in operating assets and liabilities (4,947) (144) 590 (351) 2,439 500 4,500 Cash interest expense (income) 1,364 913 (99) 148 671 1,500 3,000 Gains (losses) on lease re- structurings and asset sales 167 - 2,110 82 16 - - ------- ------- ------- ------- ------- ------- ------- EBITDA, including gains $10,211 $11,055 $13,857 $13,340 $14,618 $17,000 $77,500 ------- ------- ------- ------- ------- ------- ------- Gains on lease re- structurings (154) - (2,110) - - - - EBITDA, as adjusted $10,057 $11,055 $11,747 $13,340 $14,618 $17,000 $77,500 ------- ------- ------- ------- ------- ------- -------

Cogent's SEC filings are available online via the Investor Relations section of http://www.cogentco.com/ or on the Securities and Exchange Commission's website at http://www.sec.gov/.

COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2007 AND MARCH 31, 2008 (IN THOUSANDS, EXCEPT SHARE DATA) December 31, March 31, 2007 2008 -------- -------- Assets (Unaudited) Current assets: Cash and cash equivalents $177,021 $154,605 Short term investments - restricted 812 812 Accounts receivable, net of allowance for doubtful accounts of $1,159 and $1,479, respectively 21,760 21,348 Prepaid expenses and other current assets 6,636 7,496 -------- -------- Total current assets 206,229 184,261 Property and equipment, net 245,420 256,285 Intangible assets, net 165 182 Deposits and other assets - $306 restricted 3,511 3,651 -------- -------- Total assets $455,325 $444,379 ======== ======== Liabilities and stockholders' equity Current liabilities: Accounts payable $12,868 $10,197 Accrued liabilities 12,891 12,506 Current maturities, capital lease obligations 7,717 7,716 -------- -------- Total current liabilities 33,476 30,419 Capital lease obligations, net of current maturities 84,857 97,053 Convertible senior notes, net of discount of $4,133 and $3,976, respectively 195,867 196,024 Other long term liabilities 2,295 2,449 -------- -------- Total liabilities 316,495 325,945 -------- -------- Commitments and contingencies: Stockholders' equity: Common stock, $0.001 par value; 75,000,000 shares authorized; 47,929,874 and 47,641,199 shares issued and outstanding, respectively 48 48 Additional paid-in capital 430,402 418,116 Stock purchase warrants 764 764 Accumulated other comprehensive income-foreign currency translation adjustment 3,600 5,030 Accumulated deficit (295,984) (305,524) -------- -------- Total stockholders' equity 138,830 118,434 -------- -------- Total liabilities and stockholders' equity $455,325 $444,379 ======== ======== COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND MARCH 31, 2008 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) Three Months Three Months Ended Ended March 31, 2007 March 31, 2008 2007 2008 -------------- -------------- (Unaudited) (Unaudited) Net service revenue $43,621 $52,110 Operating expenses: Network operations (including $49 and $85 of equity-based compensation expense, respectively, exclusive of amounts shown separately) 21,064 22,043 Selling, general, and administrative (including $1,570 and $5,340 of equity-based compensation expense, respectively) 14,132 20,890 Asset impairment - 1,592 Depreciation and amortization 15,907 16,296 -------- -------- Total operating expenses 51,103 60,821 -------- -------- Operating loss (7,482) (8,711) Interest income and other, net 791 1,480 Interest expense (2,713) (2,309) -------- -------- Net loss $(9,404) $(9,540) ======== ======== Net loss per common share: Basic and diluted net loss per common share $(0.19) $(0.21) ======== ======== Weighted-average common shares-basic and diluted 48,655,385 46,265,575 ======== ======== COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND MARCH 31, 2008 (IN THOUSANDS) Three Months Three Months Ended Ended March 31, 2007 March 31, 2008 -------------- -------------- (Unaudited) (Unaudited) Cash flows from operating activities: Net cash provided by operating activities $13,627 $11,492 -------- -------- Cash flows from investing activities: Purchases of property and equipment (7,580) (9,778) Maturities of short term investments 80 - Proceeds from dispositions of assets 14 22 -------- -------- Net cash used in investing activities (7,486) (9,756) -------- -------- Cash flows from financing activities: Purchases of common stock - (18,054) Proceeds from exercises of stock options 191 53 Repayments of capital lease obligations (791) (6,396) -------- -------- Net cash used in financing activities (600) (24,397) -------- -------- Effect of exchange rate changes on cash 90 245 -------- -------- Net increase (decrease) in cash and cash equivalents 5,631 (22,416) Cash and cash equivalents, beginning of period 42,642 177,021 -------- -------- Cash and cash equivalents, end of period $48,273 $154,605 ======== ========

Except for historical information and discussion contained herein, statements contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions. The statements in this release are based upon the current beliefs and expectations of Cogent's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences. Some of the factors and risks associated with our business are discussed in Cogent's filings with the Securities and Exchange Commission.

Cogent Communications Group, Inc.

CONTACT: Public Relations: Jeff Henriksen, +1-202-295-4388,
jhenriksen@cogentco.com; or for Investor Relations: John Chang,
+1-202-295-4212, investor.relations@cogentco.com, both of Cogent
Communications Group, Inc.

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

Featured Stocks on Today's Edition of WallSt.net's 3-Minute Press Show: OFI, GTXO, EXBX, PRPM

NEW YORK, May 9 /PRNewswire-FirstCall/ -- WallSt.net's 3-Minute Press Show is a daily video program hosted by WallSt.net reporter, Tracee Tolentino.

Shows air Monday through Friday on: http://tv.wallst.net/3-min-press/3-min-press.php.

WallSt.net's 3-Minute Press Show features in-depth interviews with public company executives on their company and most recent press releases. The show is designed to provide viewers with insight into a company's most recent press release, and its impact on the company's growth.

The following executives were interviewed on today's show: -- James Rudis, President and CEO of Overhill Farms, Inc. (http://www.overhillfarms.com/) -- Patrick Bertagna, CEO of GTX Corp. (BULLETIN BOARD: GTXO) (http://www.gtxcorp.com/) -- Robert Dillon, CEO of Exobox Technologies Corp. (Pink Sheets: EXBX) (http://exobox.com/) -- Owen Dukes, CEO of Propalms, Inc. (Pink Sheets: PRPM) (http://www.propalms.com/) About WallStreet Direct, Inc.

WallStreet Direct, Inc. a wholly-owned subsidiary of Financial Media Group, Inc., owns and operates WallSt.net (http://www.wallst.net/), a leading source of up-to-the-minute business news, comprehensive financial tools and original multimedia content for the investment community. In addition to WallSt.net, WallStreet Direct owns and operates WallStRadio (http://radio.wallst.net/) an online hub for business podcasts from well-known business news personalities and publishers; and WallSt TV (http://tv.wallst.net/), a hub for original and syndicated business and finance videos. We have received two million five hundred thousand restricted shares of EXBX from Exobox Technologies Corp. for media and advertising services. We have received nine hundred ninety five dollars from Overhill Farms, Inc. for media and advertising services. We have received two thousand five hundred dollars from a third party for media and advertising services for GTX Corp. We have received four hundred ninety five dollars from a third party for the dissemination of this press release on behalf of Propalms, Inc. To read our full disclaimer, and for a complete list of our advertisers, and advertising relationships, visit http://www.wallst.net/disclaimer/disclaimer.php.

About Overhill Farms, Inc.

Overhill Farms, Inc. develops and produces frozen food products in the United States. The company's products include entrees, plated meals, meal components, soups, and sauces, as well as poultry, meat, and fish specialties. Overhill Farms markets its products through both an internal sales force and outside food brokers to foodservice, retail, and airline customers.

About GTX Corp

GTX Corp develops miniaturized Global Positioning System (GPS) satellite tracking and location-transmitting technology devices for integration into branded licensee consumer products. The company's Personal Location Services (PLS) platform consists of a matchbook-sized, location-reporting module that utilizes GTX Corp's "always-on" Assisted-GPS tracking capabilities. The system uses cellular transmission provided by our wireless carrier partner, AT&T, to deliver real-time geographic coordinates, rendered on Google Maps, to subscribers via secure Internet connections. With more than five years in research and development, strategic partnerships, and an ongoing program of intellectual property protection, GTX Corp continues its efforts to advance the GPS technology industry and the PLS space. The company is based in Los Angeles, California. http://www.gtxcorp.com/

About Exobox Technologies Corp:

Exobox Technologies Corp., headquartered in Houston, Texas, is a network and end point security development and licensing company that owns patented and patent-pending technology it believes can address the serious and growing need in the computer market for a reliable, efficient and effective network and end point security system. Visit http://www.exobox.com/ for more information.

About Propalms, Inc.:

Propalms, Inc. is a leading global provider of application delivery solutions for Terminal Services and Virtual Desktop Infrastructures. Delivering to Enterprises of all sizes we offer reliable, scalable and affordable solutions that simply work. Our belief is that application delivery solutions should be flexible, dynamic and above all, simple to use.

Contact WallSt.net 800-4-WALLST

WallStreet Direct, Inc.; Overhill Farms, Inc.; GTX Corp.; Exobox

CONTACT: WallSt.net, 1-800-4-WALLST

Perfect World to Launch 'Overlord of the Continent' Expansion Pack for 'Chi Bi' on May 22

BEIJING, May 9 /Xinhua-PRNewswire/ -- Perfect World Co., Ltd. (''Perfect World'' or the ''Company''), a leading online game developer and operator in China, today announced that it will launch the ''Overlord of the Continent'' expansion pack for ''Chi Bi,'' the Company's first 3D massively multiplayer online role playing game (MMORPG) based on Chinese history, on May 22, 2008.

Since the launch of ''Chi Bi'' in the first quarter of 2008, the game has received a lot of attention from online game players in China. The expansion pack will introduce wand and claw under the ''18 Legendary Weapons System,'' as well as the complete ''Battle of the Three Kingdoms System.'' Under the ''Battle of the Three Kingdoms System,'' the entire map is divided into 39 territories, which will be represented by 39 cities controlled by the kingdoms of Wei, Shu and Wu respectively. The original map of the ''Battle of the Three Kingdoms System'' presents the territories held by each of the three kingdoms before the battles start. It will be remapped according to the results of the battles.

As another core element of the expansion pack, the completely new weapons of wand and claw will play significant roles in the future development of the game. The claw, as an assassination weapon, features super fast attack speed, as well as lurker's attack, shadow's sneak attack, and dodging. The wand, a completely new weapon with magic power, features super attack power by conjuring fire and thunder, excellent control, a strong magic shield, and strong fighting endurance. The introduction of new weapons is expected to bring online game players brand new experiences.

''The new expansion pack 'Overlord of the Continent' for 'Chi Bi' is another important update since the game's open beta testing,'' commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. ''In addition to the introduction of new weapons, the expansion pack also includes the highly anticipated 'Battle of the Three Kingdoms System.' The introduction of other unique features including war technology, strategic planning, recall of ancient martial soul, and city construction, will also enhance the charm of 'Chi Bi.' I believe that the launch of the new expansion pack will bring more fun to online game players.''

About Perfect World Co., Ltd. ( http://www.pwrd.com/ )

Perfect World Co., Ltd. is a leading online game developer and operator in China. Perfect World primarily develops three-dimensional (''3D'') online games based on the proprietary Angelica 3D game engine and game development platform. The Company's strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games that are designed to cater to changing customer preferences and market trends in China. The Company's current portfolio of self-developed 3D online games includes 3D massively multiplayer online role playing games (''MMORPGs''): ''Perfect World,'' ''Legend of Martial Arts,'' ''Perfect World II,'' ''Zhu Xian,'' and ''Chi Bi;'' and a 3D casual game: ''Hot Dance Party.'' While most revenues are generated in China, the Company's games have been licensed to leading game operators in more than ten countries and regions. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

This press release contains forward-looking statements. These statements constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as ''will,'' ''expects,'' ''future,'' ''plans,'' ''believes'' and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, our limited operating history, our ability to protect our intellectual property rights, our ability to respond to competitive pressure, and changes of the regulatory environment in China. Further information regarding these and other risks is included in Perfect World's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1. Perfect World does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

For further information, please contact Perfect World Co., Ltd. Vivien Wang Investor Relations Officer Tel: +86-10-5885-1813 Fax: +86-10-5885-6899 Email: ir@pwrd.com http://www.pwrd.com/ Christensen Investor Relations Peter Homstad Tel: +1-480-614-3026 Fax: +1-480-614-3033 Email: phomstad@christensenir.com Jung Chang Tel: +852-2117-0861 Fax: +852-2117-0869 Email: jchang@christensenir.com

Perfect World Co., Ltd.

CONTACT: Vivien Wang, Investor Relations Officer of Perfect World Co.,
Ltd., +86-10-5885-1813, or fax, +86-10-5885-6899, or ir@pwrd.com; or Peter
Homstad, +1-480-614-3026, or fax, +1-480-614-3033, or
phomstad@christensenir.com, or Jung Chang, +852-2117-0861, or fax,
+852-2117-0869, or jchang@christensenir.com

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

Orbitz Worldwide Expands Hotel Presence in Dubai Through Agreement With Emirates Hotels & Resorts

CHICAGO, May 9 /PRNewswire-FirstCall/ -- Orbitz Worldwide , a leading global online travel company, today announced it has reached a distribution agreement with Emirates Hotels & Resorts, the premier hospitality management division of Dubai-based Emirates Airline. The agreement paves the way for inventory of Harbour Hotel & Residence -- the division's first city-based hotel in Dubai -- to be made available through a portfolio of Orbitz Worldwide online travel brands, including Orbitz (http://www.orbitz.com/), CheapTickets (http://www.cheaptickets.com/), ebookers.com (http://www.ebookers.com/) and HotelClub (http://www.hotelclub.com/).

(Logo: http://www.newscom.com/cgi-bin/prnh/20070813/AQM125LOGO)

"Many of our customers who travel to Dubai, whether on business or pleasure or even traveling with family, are seeking an opulent hotel experience when visiting this magnificent city," said Peggy Bianco, Vice President of global hotel supplier relations, Orbitz Worldwide. "The Emirates brand is synonymous with luxury. We're pleased to add it as a distribution partner and proud to offer the Harbour Hotel & Residence to our Orbitz Worldwide customers."

Located at the gateway to Dubai Marina, The Harbour Hotel & Residence is a 52-story skyline centerpiece featuring 261 luxury suites. The units are comprised of studios, one-, two- and three-bedroom suites and six penthouses. Each is equipped with luxury fittings, as well as separate lounge and dining areas.

The hotel opened in November 2007 and offers a myriad of dining options, including a New York style deli, coffee bar and bakery called Counter Culture, the Mediterranean-style restaurant -- Azur -- focusing on organic, farm-to- fork menus and the international, slightly avant-garde restaurant -- The Observatory -- that will soon open on the penthouse floor.

The Harbour Hotel & Residence also features a deluxe, full-service spa, gymnasium, outdoor pool and other amenities. The Timeless Spa, Emirates Hotels & Resorts' signature spa brand, provides relaxation massage beauty treatments developed by specialists and complemented by an extensive range of treatments and products from globally-renowned Sodashi and Babor.

"The Harbour Hotel & Residence fulfils our customer promise of always providing the best possible location, with innovative, guest-focused services," noted Bruno Hivon, General Manager, The Harbour Hotel & Residence. "In partnering with Orbitz Worldwide, we are expanding our global reach, and allowing more business and leisure travelers to experience this unique five- star property and the great city of Dubai."

Dubai continues to be one of the fastest-growing cities in the world as a tourism and business travel destination. Dubai Tourism estimates that its number of hotels will increase 29 percent by 2016, and says tourism revenues have grown more than 500 percent in the last 10 years.

About Orbitz Worldwide

Orbitz Worldwide is a leading global online travel company that uses innovative technology to enable leisure and business travelers to research, plan and book a broad range of travel products. Orbitz Worldwide owns and operates a portfolio of consumer brands that includes Orbitz (http://www.orbitz.com/), CheapTickets (http://www.cheaptickets.com/), ebookers (http://www.ebookers.com/), HotelClub (http://www.hotelclub.com/), RatesToGo (http://www.ratestogo.com/), the Away Network (http://www.away.com/) and corporate travel brand Orbitz for Business (http://www.orbitzforbusiness.com/). For more information on how your company can partner with Orbitz Worldwide, visit http://corp.orbitz.com/.

About Emirates Hotels & Resorts

Launched in 2006, Emirates Hotels & Resorts currently comprises a growing portfolio of award-winning luxury conservation-based resorts, five-star city hotels and fully-serviced luxury apartment hotels.

Al Maha Desert Resort & Spa, recognized internationally for its contribution to conservation, is among the Conde Nast Traveller's Top 20-Hotel List and the only Dubai hotel recognized in this category. The success of Al Maha is being used as the basis for designs and operations in subsequent conservation-focused properties: the Wolgan Valley Resort & Spa scheduled to open in late 2009 in Australia's Blue Mountains, and the Cap Ternay Resort & Spa currently in its detailed design phase and scheduled to open in 2010.

Green Lakes Serviced Apartments, the division's venture into the luxury serviced apartments market, and its second city-based property in Dubai opened doors on 1st May 2008.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20070813/AQM125LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Orbitz Worldwide

CONTACT: Brian Hoyt of Orbitz Worldwide, +1-312-894-6890,
bhoyt@orbitz.com

Web site: http://www.orbitz.com/
http://www.cheaptickets.com/
http://www.ebookers.com/
http://www.hotelclub.com/
http://www.ratestogo.com/
http://www.away.com/

GateHouse Media Announces First Quarter 2008 ResultsFirst Quarter 2008 Highlights- Total reported revenues reached $168.9 million, an increase of 78.4% over the prior year.- As Adjusted Revenues increased to $170.9 million, or 77.0% over the prior year.- Same store As Adjusted Revenues continued to outperform the industry, declining 4.2%.- As Adjusted EBITDA increased 93.9% over the prior year to $30.1 million.- Same store As Adjusted EBITDA also continued to outperform the industry, increasing 1.4%.- Sold non-strategic properties for $9.4 million.Recent Developments- Paid first quarter dividend of $0.20 per share on April 15, 2008.- Identified non-strategic properties, including real estate, for potential sale of approximately $35 million.

FAIRPORT, N.Y., May 9 /PRNewswire-FirstCall/ -- GateHouse Media, Inc. (the "Company" or "GateHouse Media") today reported financial results for the quarter ended March 31, 2008.

The Company reported total revenues of $168.9 million in the quarter, an increase of 78.4% over the prior year. As Adjusted Revenues increased to $170.9 million, or 77.0% over the prior year. On a same store basis, As Adjusted Revenues declined 4.2% in the quarter, outpacing newspaper peers which averaged a double-digit decline.

Operating income declined less than $1.0 million for the first quarter to $1.2 million. As Adjusted EBITDA nearly doubled over the prior year to $30.1 million and on a same store basis increased 1.4%, significantly outperforming industry peers. Excluding corporate costs, As Adjusted EBITDA increased 2.9% on a same store basis.

GateHouse Media's management utilizes As Adjusted Revenues and As Adjusted EBITDA to evaluate the Company's performance, cash flows and liquidity because these metrics exclude non-cash items such as depreciation and amortization, non-cash compensation expense and one-time costs associated with integrating acquisitions and realizing synergy cost savings. GateHouse Media also uses As Adjusted EBITDA, excluding corporate costs, to assess the performance of its core local businesses.

Michael E. Reed, GateHouse Media's Chief Executive Officer, commented, "While the first quarter operating environment remained very challenging, our business strategy remains sound and continues to yield performance significantly better than the newspaper industry at large and positions us very well for growth with an economic recovery. Our solid, steady performance against the current economic headwinds is a result of our focus on operating strong local media franchises in smaller markets combined with our acquisition strategy of identifying attractively valued assets.

"First quarter As Adjusted Revenues on a same store basis were down 4.2%, considerably better than our peers which in most cases had double-digit declines. Our 2007 acquisitions continue to perform very well and we are realizing the full amounts of the synergy and cost saving opportunities we targeted at the time of acquisition. This has been a major contributor to our first quarter same store As Adjusted EBITDA growth of 1.4%. It is important to point out that our business is seasonal and our first quarter is historically the lowest of the year given the post holiday lull.

"Revenue declines were primarily driven by classifieds, particularly help wanted, real estate and auto, which are tied more to the economy. The volume of transactions that occur in those categories is a major factor in driving their classified ad spend; as transaction levels recover, ad spend will increase. We are very pleased with our online business with revenues increasing 28.4% on a same store basis as we continue to benefit from our strong local positions and our online product offerings. Circulation revenues also remained strong in the first quarter, increasing 1.5% on a same store basis.

"Longer term, I am confident we will see a turnaround in advertising spend. Conversations with advertisers support our belief that the majority of the slowdown in ad spend is cyclical in nature and that it will return when economic conditions improve. In the meantime, we will continue to execute on our small local market strategy and position the company for future growth."

First Quarter 2008

As Adjusted Revenues for the quarter were $170.9 million, a decline of 4.2% on a same store basis. Local advertising revenues continued to perform well given the current economic environment declining only 2.6% on a same store basis. Classified revenues continue to be the primary driver of revenue declines with a 12.8% decline on a same store basis. The classified advertising weakness was seen in the categories of help wanted, real estate and auto. Online revenues were strong with same store growth in this category up 28.4%. Circulation revenues in the quarter increased by 1.5%, driven by price increases offset by small volume declines. Commercial printing and other revenues decreased 10.5% in the quarter.

Although same store revenues were down, As Adjusted EBITDA of $30.1 million represented an increase of 1.4% compared to the prior year on a same store basis. The increase was driven by the realization of synergies from prior year acquisitions and careful expense management.

Non-cash compensation expense for Restricted Stock Grants (RSGs) in the first quarter was $1.1 million. One-time costs incurred or accrued in the quarter were $8.7 million. These were charges related primarily to integration of the Company's acquisitions in order to realize permanent expense reductions, and to reduce future capital expenditure needs, as well as staff reductions taken in order to reduce the cost basis in light of the current revenue environment. Charges included severance, benefits, equipment transportation costs and legal fees.

Levered Free Cash Flow for the quarter was $3.0 million compared with $3.1 million for the same quarter in 2007. Cash flow has historically been lightest in the first quarter due to the seasonality of the business.

Dividend

The Company's Board of Directors declared a first quarter cash dividend of $0.20 per share on its common stock for the quarter ending March 31, 2008, which was paid on April 15, 2008.

Earnings Call

The Company has scheduled a conference call to discuss the financial results on May 9, 2008 at 10:00 a.m. Eastern Time. The conference call can be accessed by dialing (877) 675-4749 (from within the U.S.) or (719) 325-4915 (from outside of the U.S.) ten minutes prior to the scheduled start and referencing the "GateHouse Media First Quarter Earnings Call."

A webcast of the conference call will be available to the public on a listen-only basis at http://www.gatehousemedia.com/. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available for three months following the call.

For those who cannot listen to the live call, a replay will be available until 11:59 p.m. Eastern Time on May 23, 2008 by dialing (888) 203-1112 (from within the U.S.) or (719) 457-0820 (from outside of the U.S.) please reference access code "344-8803." A copy of this earnings release and quarterly financial supplement will be posted on the Investors section of the GateHouse Media website.

Non-GAAP Financial Measures

A non-GAAP financial measure is generally defined as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable GAAP measure. GateHouse Media defines and uses Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow, non-GAAP financial measures, as set forth below. The Company strongly urges stockholders and other interested persons not to rely on any single financial measure to evaluate its business. In addition, because Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow are not measures of financial performance under GAAP and are susceptible to varying calculations, these non-GAAP measures, as presented in this press release, may differ from and may not be comparable to similarly titled measures used by other companies.

Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow

The Company defines Adjusted EBITDA as net income (loss) before interest, income tax expense (benefit), depreciation and amortization and other non-recurring or non-cash items. The Company defines As Adjusted EBITDA as Adjusted EBITDA before other non-cash items such as non-cash compensation and non-recurring integration and reorganization costs. The Company defines As Adjusted Revenues as total revenues plus revenues of discontinued operations while adjusting for the purchase accounting impact on revenues of the SureWest acquisition. The Company defines Levered Free Cash Flow as As Adjusted EBITDA less capital expenditures, cash taxes and interest expense.

Management's Use of Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow

Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow are not measurements of financial performance under GAAP and should not be considered in isolation or as alternatives to income from operations, net income (loss), cash flow from continuing operating activities or any other measure of performance or liquidity derived in accordance with GAAP. GateHouse Media's management believes these non-GAAP measures, as defined above, are useful to investors for the following reasons:

-- Evaluating performance and identifying trends in day-to-day performance because the items excluded have little or no significance on its day-to-day operations; -- Providing assessments of controllable expenses that afford management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance; and -- Indicators for management to determine if adjustments to current spending decisions are needed.

Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow provide GateHouse Media with measures of financial performance, independent of items that are beyond the control of management in the short-term, such as depreciation and amortization, taxation and interest expense associated with its capital structure. These metrics measure GateHouse Media's financial performance based on operational factors that management can impact in the short-term, namely the cost structure or expenses of the organization. Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow are some of the metrics used by senior management and the Board of Directors to review the financial performance of the business on a monthly basis. In addition, GateHouse Media's management utilizes these metrics to evaluate the Company's performance, along with other criteria, to determine the funds available for paying the quarterly dividend.

GATEHOUSE MEDIA, INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations (In thousands, except share and per share data) Three months Three months ended ended March 31, March 31, 2008 2007 Revenues: Advertising $122,349 $71,072 Circulation 36,264 17,203 Commercial printing and other 10,335 6,453 Total revenues 168,948 94,728 Operating costs and expenses: Operating costs 97,521 52,355 Selling, general, and administrative 48,864 30,599 Depreciation and amortization 18,763 8,802 Integration and reorganization costs 2,612 838 Impairment of long-lived assets - 119 (Gain) loss on sale of assets (6) 13 Operating income 1,194 2,002 Interest expense 24,416 10,217 Amortization of deferred financing costs 583 223 Unrealized loss on derivative instrument 719 383 Other (income) expense 13 (205) Loss from continuing operations before income taxes (24,537) (8,616) Income tax expense (benefit) 2,471 (2,486) Loss from continuing operations (27,008) (6,130) Income (loss) from discontinued operations, net of income taxes (1,781)(a) 51 Net loss $(28,789) $(6,079) Loss per share: Basic and diluted: Loss from continuing operations $(0.47) $(0.16) Loss from discontinued operations, net of income taxes (0.03) - Net loss $(0.50) $(0.16) Dividends declared per share $0.20 $0.37 Basic weighted average shares outstanding 56,968,521 38,097,167 Diluted weighted average shares outstanding 56,968,521 38,097,167 (a) Included in income from discontinued operations, net of taxes are total revenues of $1,909 for the three months ended March 31, 2008 primarily from Yankton, SD and Winter Haven, FL. GATEHOUSE MEDIA, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except share data) March 31, December 31, 2008 2007 (unaudited) Assets Current assets: Cash and cash equivalents $10,622 $12,096 Accounts receivable, net of allowance for doubtful accounts of $4,933 and $3,874 at March 31, 2008 and December 31, 2007, respectively 74,633 85,474 Inventory 10,255 9,046 Prepaid expenses 4,514 4,514 Deferred income taxes 3,890 3,890 Other current assets 4,868 4,208 Assets held for sale 91 1,540 Total current assets 108,873 120,768 Property, plant, and equipment, net of accumulated depreciation of $37,330 and $30,597 at March 31, 2008 and December 31, 2007, respectively 217,283 210,209 Goodwill 698,886 701,852 Intangible assets, net of accumulated amortization of $69,930 and $58,111 at March 31, 2008 and December 31, 2007, respectively 811,906 808,794 Deferred financing costs, net 8,318 8,416 Other assets 1,683 1,692 Long-term assets held for sale 15,925 23,264 Total assets $1,862,874 $1,874,995 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term liabilities $1,284 $1,047 Short-term note payable 10,000 10,000 Short-term debt 20,291 - Accounts payable 10,987 13,190 Accrued expenses 41,890 40,672 Accrued interest 9,377 9,947 Deferred revenue 32,761 29,840 Dividend payable 11,605 23,126 Liabilities held for sale 40 623 Total current liabilities 138,235 128,445 Long-term liabilities: Long-term debt 1,216,500 1,206,000 Long-term liabilities, less current portion 5,352 3,809 Deferred income taxes 27,792 25,327 Derivative instruments 89,145 44,101 Pension and other postretirement benefit obligations 15,576 13,325 Total liabilities 1,492,600 1,421,007 Stockholders' equity: Preferred stock, $0.01 par value, 50,000,000 shares authorized at March 31, 2008; none issued and outstanding at March 31, 2008 and December 31, 2007 - - Common stock, $0.01 par value, 150,000,000 shares authorized at March 31, 2008; 58,131,136 and 57,947,073 shares issued, and 58,071,742 and 57,891,295 outstanding at March 31, 2008 and December 31, 2007, respectively 568 568 Additional paid-in capital 823,104 822,025 Accumulated other comprehensive loss (94,361) (49,962) Accumulated deficit (358,801) (318,407) Treasury stock, at cost, 59,394 and 55,778 shares at March 31, 2008 and December 31, 2007, respectively (236) (236) Total stockholders' equity 370,274 453,988 Total liabilities and stockholders' equity $1,862,874 $1,874,995 GATEHOUSE MEDIA, INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Cash Flows (In thousands) Three months Three months ended ended March 31, 2008 March 31, 2007 Cash flows from operating activities: Net loss $(28,789) $(6,079) Income (loss) from discontinued operations, net of income taxes (1,781) 51 Net loss from continuing operations (27,008) (6,130) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 18,763 8,802 Amortization of deferred financing costs 583 223 Unrealized loss on derivative instrument 719 383 Non-cash compensation expense 1,079 1,107 Deferred income taxes 2,437 (3,649) (Gain) loss on sale of assets (6) 13 Pension and other postretirement benefit obligations 395 - Non-cash interest expense 309 - Impairment of long-lived assets - 119 Unrecognized pension and other postretirement benefit - obligations actuarial loss - 314 Changes in assets and liabilities, net of acquisitions: Accounts receivable, net 11,082 2,452 Inventory (1,217) 265 Prepaid expenses 67 342 Other assets (651) (179) Accounts payable (2,401) (1,140) Accrued expenses 1,698 74 Accrued interest (570) 1,975 Deferred revenue 2,991 304 Long-term liabilities (557) (186) Net cash provided by operating activities 7,713 5,089 Cash flows from investing activities: Purchases of property, plant, and equipment (2,621) (2,185) Proceeds from sale of publications and other assets 9,406 180 Acquisition of The Copley Press, Inc. newspapers, net of cash acquired (5) - Other acquisitions, net of cash acquired (22,846) (206,046) Net cash used in investing activities (16,066) (208,051) Cash flows from financing activities: Payment of debt issuance costs - (3,032) Borrowings under term loans 19,505 690,000 Repayments of term loans - (558,000) Net borrowings under revolving credit facility 10,500 - Payment of offering costs - (357) Payment of dividends (23,126) (9,394) Net cash provided by financing activities 6,879 119,217 Net decrease in cash and cash equivalents (1,474) (83,745) Cash and cash equivalents at beginning of period 12,096 90,302 Cash and cash equivalents at end of period $10,622 $6,557 GATEHOUSE MEDIA, INC. AND SUBSIDIARIES As Adjusted EBITDA (In thousands) Three months Three months ended ended March 31, 2008 March 31, 2007 Loss from continuing operations $(27,008) $(6,130) Income tax expense (benefit) 2,471 (2,486) Unrealized loss on derivative instrument (1) 719 383 Amortization of deferred financing costs 583 223 Interest expense 24,416 10,217 Impairment of long-lived assets - 119 Depreciation and amortization 18,763 8,802 Adjusted EBITDA from continuing operations 19,944 11,128 Non-cash compensation and other expense 6,965 2,153 Non-cash portion of postretirement benefits expense 558 314 Integration and reorganization costs 2,612 838 (Gain) loss on sale of assets (6) 13 Impact of SureWest Directories purchase accounting - 1,015 Income from discontinued operations 10 51 As Adjusted EBITDA 30,083 15,512 Net capital expenditures (2,621) (2,185) Interest expense (24,416) (10,217) Levered Free Cash Flow $3,046 $3,110 (1) Non-cash loss on derivative instruments is related to interest rate swap agreements which are financing related and are excluded from Adjusted EBITDA. GATEHOUSE MEDIA, INC. AND SUBSIDIARIES As Adjusted Revenues (In thousands) Three months Three months ended ended March 31, 2008 March 31, 2007 Total revenues from continuing $168,948 $94,728 operations Revenues from discontinued operations 1,909 257 Total income statement revenues 170,857 94,985 Impact of SureWest Directories purchase accounting - 1,567 As Adjusted Revenues $170,857 $96,552 About GateHouse Media, Inc.

GateHouse Media, Inc., headquartered in Fairport, New York, is one of the largest publishers of locally based print and online media in the United States as measured by its 98 daily publications. GateHouse Media currently serves local audiences of more than 10 million per week across 21 states through hundreds of community publications and local websites. GateHouse Media is traded on the New York Stock Exchange under the symbol "GHS."

For more information regarding GateHouse Media and to be added to our email distribution list, please visit http://www.gatehousemedia.com/.

Forward-Looking Statements

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to various risks and uncertainties, including without limitation, statements relating to progress made by the Company in its integration efforts, growth in revenues and cash flow, on-line revenues and potential acquisition opportunities. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "would," "project," "predict," "continue" or other similar words or expressions. Forward looking statements are based on certain assumptions or estimates, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Although the Company believes that the expectations reflected in such forward looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. Factors which could have a material adverse effect on the Company's operations and future prospects or which could cause events or circumstances to differ from the forward-looking statements include, but are not limited to, the Company's ability to close on a timely basis upon announced or contemplated transactions, unexpected liabilities arising from any transaction or that the Company will not receive the expected benefits from the transaction, the Company's limited operating history on a combined basis, the Company's ability to generate sufficient cash flow to cover required interest, long-term obligations and dividends, the effect of the Company's indebtedness and long-term obligations on its liquidity, the Company's ability to effectively manage its growth, unforeseen costs associated with the acquisition of new properties, the Company's ability to find suitably priced acquisitions, the Company's ability to integrate acquired assets and businesses, any increases in the price or reduction in the availability of newsprint, seasonal and other fluctuations affecting the Company's revenues and operating results, any declines in circulation, the Company's ability to obtain additional capital on terms acceptable to it, the Company's vulnerability to economic downturns, regulatory changes or acts of nature in certain geographic areas, increases in competition for skilled personnel, departure of key officers, increases in market interest rates, the cost and difficulty of complying with increasing and evolving regulation, and other risks detailed from time to time in the Company's SEC reports, including but not limited to its most recent Annual Report on Form 10-K filed with the SEC under Commission File Number 001-33091. When considering forward- looking statements, readers should keep in mind the risk factors and other cautionary statements in such SEC filings. Readers are also cautioned not to place undue reliance on any of these forward-looking statements, which reflect management's views as of the date of this press release and/or the associated earnings conference call. The factors discussed above and the other factors noted in the Company's SEC filings could cause actual results to differ significantly from those contained in any forward-looking statement. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements and expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

GateHouse Media, Inc.

CONTACT: Mark Maring, Investor Relations, GateHouse Media, Inc.,
+1-585-598-6874

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

Presstek Announces First Quarter 2008 Net ProfitIncreased Gross Margins; Reduced Operating Expenses

HUDSON, N.H., May 9 /PRNewswire-FirstCall/ -- Presstek, Inc. today reported a net income from continuing operations in the first quarter of 2008 of $0.2 million, or $0.01 per share, versus a net loss from continuing operations of ($0.9) million, or ($.03) per share, in the first quarter of 2007. First quarter 2008 results include pre-tax restructuring and other charges of $0.6 million related to the company's Business Improvement Plan ("BIP"). First quarter 2007 operating results included pre-tax restructuring and other charges of $0.3 million.

On April 3, 2008, the company announced it expected revenue in the first quarter of 2008 to be as much as 20% below prior year levels, driven by reduced European revenues due to the disruption in the company's European operations related to the company's recently completed business reviews, U.S. economic weakness, and customer anticipation of a major industry convention in Germany in May 2008. As expected, first quarter revenue decreased $12.7 million or 19.5% to $52.4 million due to the above-mentioned issues.

"Despite a 19.5% revenue decline versus last year's first quarter, the company reported gross profit only slightly below first quarter 2007 levels and positive earnings versus a loss in the same period a year ago," commented Presstek President and Chief Executive Officer Jeff Jacobson. "In addition, we were pleased to see a 38% increase in DI plate sales in the quarter, and service margins of approximately 26%. Earnings before interest, taxes, depreciation and amortization ("EBITDA") adjusted for special charges was $3.4 million in the first quarter, and debt net of cash at March 29, 2008 was $22.1 million, a 40% improvement over last year at the same time. First quarter results demonstrate that our Business Improvement Plan has been successful in enhancing profitability. We continue to expect that revenue in the second quarter of 2008 will exceed first quarter levels, and gross profit and operating expenses will continue to reflect the ongoing positive impact of our Business Improvement Plan."

Consolidated gross margin in the first quarter of 2008 was 34.5% versus 28.4% a year ago. Gross margin improvements were driven by the positive impact of the company's BIP. In addition, the company's higher margin consumables and service annuity businesses represented a greater proportion of total sales in the quarter which had a positive impact on gross margin. First quarter 2008 operating expenses declined $1.5 million to $17.3 million in the quarter versus $18.8 million in 2007. Excluding restructuring and other charges, operating expenses declined 9.8% year over year.

Lasertel's external sales were $1.6 million, slightly below year ago levels largely due to the timing of orders. Lasertel recorded an operating loss in the first quarter of $1.0 million.

The company also announced it has reached an agreement to sell its Lasertel property in Tucson, Arizona. The company expects this transaction to close during the third quarter of 2008.

The company also announced that its Annual Meeting of Stockholders will be held on Wednesday, June 11, 2008, commencing at 1:30 P.M. local time, at the Waldorf Astoria, 301 Park Avenue, New York, New York.

"As I complete my first year as President and Chief Executive Officer of Presstek," Mr. Jacobson concluded, "I recognize that there's still a great deal of work ahead of us, but I am also pleased with the substantial progress we have made. Our business reviews are complete; our BIP is executing well; and debt net of cash has significantly improved. Our leadership team is excited at the prospect of driving long-term revenue growth, leveraging our improving operating structure and delivering increased profitability."

Information Regarding Non-GAAP Measures

In the first quarter of 2008, in addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the company provides non-GAAP financial measures, including debt net of cash, which is defined as debt minus cash, and other GAAP measures adjusted for certain charges, which the company believes are useful to help investors better understand its past financial performance and prospects for the future. A full reconciliation of GAAP to non-GAAP measures is provided in the financial tables below. Supplemental financial information has been provided with this release to provide additional details on the company's performance.

Conference Call and Webcast

Management will discuss Presstek's first quarter 2008 results in a conference call today at 8:30 a.m. (ET). Conference call information is below:

CONFERENCE CALL ACCESS Domestic Dial In: (866) 711-8198 International Dial In: (617) 597-5327 Passcode: 80852180

In addition, for those unable to participate at the time of the call, a rebroadcast will be available following the call from Friday, May 9, 2008 at 10:30 AM Eastern Daylight Time until Friday, May 16, 2008 Eastern Daylight Time at midnight.

REBROADCAST ACCESS Domestic Dial In: 888-286-8010 International Dial In: 617-801-6888 Passcode: 10583571

An archived web cast of this conference call will also be available on the "Investor Events Calendar" page of the company's web site, at http://www.presstek.com/investors/calendar.html.

About Presstek

Presstek, Inc. is the leading manufacturer and marketer of high tech digital imaging solutions to the graphic arts and laser imaging markets. Presstek's patented DI(R), CTP and plate products provide a streamlined workflow in a chemistry-free environment, thereby reducing printing cycle time and lowering production costs. Presstek solutions are designed to make it easier for printers to cost effectively meet increasing customer demand for high-quality, shorter print runs and faster turnaround while providing improved profit margins. Presstek subsidiary, Lasertel, Inc., manufactures semiconductor laser diodes for Presstek's and external customers' applications. For more information visit http://www.presstek.com/, or call 603-595- 7000 or email: info@presstek.com.

DI is a registered trademark of Presstek, Inc.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this News Release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding expected revenue, gross margins, operating income (loss), EBITDA, the continuation of progress at reducing costs and expenses, customer demand, the results of the company's Business Improvement Plan, the sale of property, and the ability of the company to achieve its stated objectives. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, market acceptance of and demand for the company's products and resulting revenue, the results and impact of the company's internal reviews, the ability of the company to meet its stated financial and operational objectives, the company's dependency on its strategic partners (both manufacturing and distribution), the results of the pending investigation of the Company by the Securities and Exchange Commission, the satisfaction of conditions to the sale of the company's Arizona property, and other risks and uncertainties detailed in the company's 2007 Annual Report on Form 10-K and the company's other reports on file with the Securities and Exchange Commission. The words "looking forward," "looking ahead," "believe(s)," "should," "may," "expect(s)," "anticipate(s)," "project(s)," "likely," "opportunity," and similar expressions, among others, identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The company undertakes no obligation to update any forward-looking statements contained in this news release.

Contacts: Investor Relations Trade Relations Kathleen Makrakis Betty LaBaugh Director of Investor Relations Public Relations Manager 203-485-7534, ext. 1432 603-594-8585, ext. 3441 kmakrakis@presstek.com blabaugh@presstek.com PRESSTEK, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per-share data) (Unaudited) Three months ended March 29, March 31, 2008 2007 Revenue Product $43,027 $55,236 Service and parts 9,404 9,916 Total revenue 52,431 65,152 Cost of revenue Product 27,394 38,946 Service and parts 6,926 7,698 Total cost of revenue 34,320 46,644 Gross profit 18,111 18,508 Operating expenses Research and development 1,552 1,634 Sales, marketing and customer support 7,600 9,864 General and administrative 7,143 6,254 Amortization of intangible assets 351 707 Restructuring and other charges 635 335 Total operating expenses 17,281 18,794 Income (loss) from operations 830 (286) Interest and other expense, net (718) (897) Income (loss) before income taxes 112 (1,183) Provision (benefit) for income taxes (79) (317) Income (loss) from continuing operations 191 (866) Gain (loss) from discontinued operations, net of tax $27 (112) Net income (loss) $218 $(978) Earnings (loss) per share - basic Income (loss) from continuing operations $0.01 $(0.03) Gain (loss) from discontinued operations $0.00 (0.00) $0.01 $(0.03) Earnings (loss) per share - diluted Income (loss) from continuing operations $0.01 $(0.03) Gain (loss) from discontinued operations $0.00 (0.00) $0.01 $(0.03) Weighted average shares outstanding Weighted average shares outstanding - basic 36,568 35,663 Dilutive effect of options 8 - Weighed average shares outstanding - diluted 36,576 35,663 PRESSTEK, INC. CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) March 29, December 29, 2008 2007 ASSETS Current assets Cash and cash equivalents $6,642 $13,249 Accounts receivable, net 37,885 42,879 Inventories, net 52,508 49,084 Assets of discontinued operations 12 15 Deferred income taxes 6,740 6,740 Other current assets 5,375 4,666 Total current assets 109,162 116,633 Property, plant and equipment, net 36,527 38,023 Goodwill 19,891 19,891 Intangible assets, net 5,993 6,287 Deferred income taxes 11,199 11,124 Other noncurrent assets 555 869 Total assets $183,327 $192,827 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt and capital lease obligation $7,025 $7,035 Line of credit 15,000 20,000 Accounts payable 17,655 18,603 Accrued expenses 22,961 23,713 Deferred revenue 5,775 7,196 Liabilities of discontinued operations 686 888 Total current liabilities 69,102 77,435 Long-term debt and capital lease obligation, less current portion 6,750 8,500 Total liabilities 75,852 85,935 Commitments and contingencies Stockholders' equity Preferred stock - - Common stock 366 366 Additional paid-in capital 116,410 115,884 Accumulated other comprehensive income 871 1,032 Retained earnings (accumulated deficit) (10,172) (10,390) Total stockholders' equity 107,475 106,892 Total liabilities and stockholders' equity $183,327 $192,827 PRESSTEK, INC. CONTINUING OPERATIONS SUPPLEMENTAL FINANCIAL INFORMATION $000's (Unaudited) Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Key Units Presstek DI Presses (Excludes QMDI) 44 51 37 44 29 Presstek CtP Platesetters (Excludes DPM) 44 47 47 46 46 Revenue - Growth Portfolio Presstek DI Presses (Excludes QMDI) 15,215 18,873 13,071 15,380 9,736 DI Kits 870 462 125 0 0 DI Plates 3,996 4,306 4,567 5,138 5,500 Total DI Revenue 20,081 23,641 17,763 20,518 15,236 Presstek CtP Platesetters (Excludes DPM) 3,415 3,753 2,962 2,989 2,793 Chemistry Free CtP Plates 4,953 4,914 5,034 4,613 4,522 Total CtP Revenue 8,368 8,667 7,996 7,602 7,315 Service Transfer (913) (1,253) (1,105) (1,438) (865) Service Revenue 1,983 2,368 2,184 3,394 2,727 Lasertel Revenue 1,689 2,186 1,951 2,445 1,637 Total Revenue - Growth Portfolio (B) 31,209 35,608 28,789 32,521 26,050 Revenue - Traditional Portfolio QMDI Platform 5,243 5,750 5,121 4,678 4,063 Polyester CtP Platform 5,477 5,529 4,961 4,785 4,485 Other DI Plates 2,263 2,571 2,541 2,536 1,664 Conventional/Other 13,276 12,039 11,109 10,782 9,567 Total Product Revenue - Traditional 26,259 25,889 23,732 22,781 19,779 Service Transfer (249) (246) (219) (277) (75) Service Revenue - Traditional 7,933 7,500 7,310 6,303 6,677 Total Revenue - Traditional Portfolio (B) 33,943 33,143 30,823 28,807 26,381 Total Revenue (B) 65,152 68,751 59,612 61,328 52,431 Product Revenue Components % Growth 47.9% 51.8% 48.3% 53.0% 49.7% Traditional 52.1% 48.2% 51.7% 47.0% 50.3% Geographic Revenues (Origination) (B) North America 46,133 51,454 46,789 45,891 41,404 Europe 19,019 17,296 12,823 15,437 11,027 Consolidated 65,152 68,751 59,612 61,328 52,431 Gross Margin Presstek Equipment 13.0% 8.5% -0.3% 11.6% 15.1% Consumables 41.8% 46.2% 45.7% 47.7% 49.4% Service 22.4% 11.1% 14.7% 27.2% 26.3% Lasertel 17.6% 30.3% -16.9% -3.3% -17.7% Consolidated 28.4% 27.1% 24.8% 30.7% 34.5% Operating Expense (Excluding Special Charges) $18,459 $22,290 $20,722 $21,235 $16,646 Profitability Net income (loss) $(978) $(4,830) $(3,616) $(2,780) $218 Add back: Net (income) loss from discontinued operations $112 $(24) $(10) $(24) $(27) Net income (loss) from continuing operations $(866) $(4,854) $(3,626) $(2,804) $191 Add back: Interest 754 842 757 824 615 Other (income) expense 143 151 (171) (876) 102 Tax charge (benefit) (317) (626) (3,324) (751) (79) Incremental charges 1,020 4,917 6,286 3,637 - Other charges (credits) 335 793 398 1,187 635 Operating income (loss) from continuing operations 1,069 1,223 320 1,217 1,464 Add back: Depreciation and amortization 2,437 2,425 2,369 2,136 2,023 Other income (expense) (143) (151) 171 876 (102) EBITDA From Continuing Operations (A) $3,363 $3,497 $2,860 $4,229 $3,385 Cash Earnings From Continuing Operations Net income from continuing operations (866) (4,854) (3,626) (2,804) 191 Add back: Other charges (credits) 335 793 398 1,187 635 Depreciation and amortization 2,437 2,425 2,369 2,136 2,023 Non cash portion of equity compensation (2006 forward 123R related) 306 2,491 650 542 442 Non cash portion of taxes (254) (1,408) (2,767) (1,758) (75) Cash Earnings From Continuing Operations (A) 1,958 (553) (2,976) (697) 3,216 Working Capital Current assets (excluding net assets of discontinued operations) $122,727 $123,465 $114,843 $116,618 $109,150 Current liabilities Short-term debt 29,000 28,000 28,000 27,000 22,000 All other current liabilities 48,067 49,354 45,602 49,512 46,391 Current liabilities 77,067 77,354 73,602 76,512 68,391 Working capital 45,660 46,111 41,241 40,106 40,759 Add back short-term debt 29,000 28,000 28,000 27,000 22,000 Working capital, excluding short-term debt (A) $74,660 $74,111 $69,241 $67,106 $62,759 Debt net of cash (A) Calculation of total debt: Current portion of long-term debt $7,000 $7,000 $7,000 $7,000 $7,000 Line of credit 22,000 21,000 21,000 20,000 15,000 Long-term debt, net of current portion 13,750 12,000 10,250 8,500 6,750 Total debt 42,750 40,000 38,250 35,500 28,750 Cash 5,711 7,319 8,253 13,249 6,642 Debt net of cash $37,039 $32,681 $29,997 $22,251 $22,108 Days Sales Outstanding 73 68 70 58 67 Days Inventory Outstanding 69 69 78 74 88 Capital Expenditures $1,330 $748 $455 $513 $353 Employees 813 792 770 712 709 (A) EBITDA [earnings before interest, taxes, depreciation, amortization and restructuring and merger-related charges (credits)]; Working capital, excluding short-term debt; Debt net of cash; and Cash earning from continuing operations are not measures of performance under accounting principles generally accepted in the United States of America ("GAAP") and should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Presstek's management believes that EBITDA provides meaningful supplemental information regarding Presstek's current financial performance and prospects for the future. Presstek's management believes that Cash earnings from continuing operations provides meaningful supplemental information regarding Presstek's current financial performance and prospects for the future. Presstek's management believes that Working capital, excluding short term debt, provides meaningful supplemental information regarding Presstek's ability to meet its current liability obligations. Presstek's management believes that Debt net of cash provides meaningful information on Presstek's debt relative to its cash position. Presstek believes that both management and investors benefit from referring to these non-GAAP measures in assessing the performance of Presstek's ongoing operations and liquidity, and when planning and forecasting future periods. These non-GAAP measures also facilitate management's internal comparisons to Presstek's historical operating results and liquidity. Our presentations of these measures, however, may not be comparable to similarly titled measures used by other companies. Reconciliations of these measures to GAAP are included in the tables above. (B) Q3 2007 results reflect $1.5 million decrease in revenue due to the correction of certain revenue transactions. **Certain amounts may be subject to reclassification to conform to current presentation.

Presstek, Inc.

CONTACT: Investor Relations, Kathleen Makrakis, Director of Investor
Relations, +1-203-485-7534, ext. 1432, kmakrakis@presstek.com; or Trade
Relations, Betty LaBaugh, Public Relations Manager, +1-603-594-8585, ext.
3441, blabaugh@presstek.com, both of Presstek, Inc.

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

Le moteur de corrélation de contenu blinkx transforme les lecteurs en spectateurs, ce qui permet d'améliorer les recettes que tirent les éditeurs de leurs actifs

SAN FRANCISCO, Californie, May 9 /PRNewswire/ --

- Les sociétés médiatiques qui ont un grand public lisant principalement des articles écrits sur leurs sites peuvent désormais orienter automatiquement ce public vers du contenu télévisuel ou audiovisuel, générateur de recettes plus importantes

blinkx, le moteur de recherche vidéo le plus grand et le plus avancé au monde, a annoncé aujourd'hui la disponibilité du moteur de corrélation de contenu blinkx, une extension de la plate-forme médiatique avancée de blinkx. Le moteur de corrélation de contenu blinkx utilise la technologie brevetée de blinkx et permettra aux sociétés médiatiques, qui attirent d'ores-et-déjà des publics d'internautes parmi les plus vastes et les plus rentables, de rechercher automatiquement dans les actifs textuels et audiovisuels, sur chaque page de leurs sites Web, transformant de manière transparente les lecteurs en spectateurs et ce, afin d'en tirer des recettes bien plus importantes.

La prolifération du haut débit a créé un marché porteur et en hausse pour les éditeurs qui possèdent et produisent des actifs vidéo. Les tarifs moyens du coÃ»t pour mille (CPM) de la publicité vidéo en ligne sont souvent d'un ordre de grandeur plus élevé que des publicités équivalentes par bannière textuelle. Cet effet est des plus prononcés lorsque l'éditeur de contenu est une marque populaire et réputée. Par conséquent, de nombreux éditeurs propriétaires de marques importantes édifiées sur du contenu textuel hors ligne et en ligne produisent de plus en plus de vidéos en ligne afin de tirer des revenus publicitaires nouveaux et en plus forte croissance. Ces quatre dernières années, parmi les marques qui ont adopté cette approche, on trouve The Wall Street Journal, The Financial Times, Forbes Magazine, BusinessWeek Magazine et bien d'autres.

La production de vidéos en ligne n'est cependant que la première étape. Les publics existants qui lisent à l'heure actuelle avant tout des articles textuels doivent Ãªtre convertis au visionnement de contenus vidéo, d'oÃ¹ l'idée de transformer les lecteurs en spectateurs. Comme ce public passe actuellement la majorité de son temps à lire des articles textuels, placer du contenu vidéo très pertinent au sein des articles textuels constitue une stratégie essentielle pour progressivement convertir ce lectorat au visionnement de vidéos. Les clients AMP existants de blinkx ont d'ores-et-déjà adopté le moteur de corrélation de contenu.

La technologie de blinkx utilise une reconnaissance vocale et une analyse visuelle de pointe pour analyser et traiter automatiquement le contenu vidéo du Web. Les résultats obtenus sont plus précis et plus fiables que la technologie standard de recherche par mots-clés se basant sur les métadonnées. Le moteur de reconnaissance de concept (CoRE) de blinkx applique ensuite un processus breveté d'appariement de formes aux informations extraites afin de reconnaître les idées, les concepts et les thèmes de la vidéo. C'est cette compréhension automatique que fournit CoRE qui permet au moteur de corrélation de contenu de rechercher automatiquement des actifs textuels et audiovisuels pertinents.

<< La technologie de blinkx nous a permis de générer des recommandations dynamiques à l'attention des utilisateurs, d'optimiser le classement de la recherche et d'augmenter notre visibilité >>, a expliqué Ari Brandt, directeur général de Portfolio.com.

<< Grâce à la plate-forme médiatique avancée de blinkx, nous avons trouvé une solution qui résout de nombreux problèmes rencontrés lors de la présentation de contenus vidéo sur notre site Web >>, a ajouté Albert Aimers, PDG de WallSt.net.

<< Nous avons accru la valeur que nous pouvons dériver de nos actifs vidéo et nous comptons améliorer considérablement notre marque et l'expérience de nos utilisateurs en ligne. >>

<< De nombreuses sociétés médiatiques possèdent une mine d'or d'actifs vidéo mais ont du mal à générer un vaste public pour ce contenu. Tel est le cas parce qu'une grande partie des contenus sur Internet est encore prise au piège de la forme textuelle, sachant que les utilisateurs qui peuvent devenir d'avides spectateurs de vidéos ne sont toujours pas conscients de la richesse audiovisuelle qu'offrent leurs sites textuels préférés >>, a expliqué Suranga Chandratillake, PDG et fondateur de blinkx.

<< Le moteur de corrélation de contenu blinkx utilise notre capacité à comprendre conceptuellement le sens véritable d'un contenu télévisuel ou vidéo et apparie ces actifs à des articles textuels pertinents. Le processus est entièrement automatique, il peut donc Ãªtre déployé sur d'énormes sites Web contenant des milliers d'articles et générant des millions de pages affichées. Il accroît immédiatement la taille du public vidéo de ces sites et permet d'atteindre une croissance exponentielle des vidéos affichées et, par conséquent, des recettes issues de la publicité vidéo. >>

Pour plus de renseignements sur le moteur de corrélation de contenu blinkx et la plate-forme médiatique avancée, veuillez consulter http://www.blinkx.com/corporate/advancedMediaPlatform.

En tant que pionnier de la technologie de recherche vidéo, blinkx s'est taillé la réputation d'Ãªtre la meilleure façon de rechercher de nouvelles formes de contenu en ligne comme la vidéo. Avec plus de 220 partenaires et 18 millions d'heures de contenus vidéo et audio répertoriés, notamment les meilleurs moments de la télé, des clips d'actualité, de courts documentaires, des vidéo-clips, des blogs vidéo et bien plus, et à l'utilisation d'une technologie de reconnaissance vocale et visuelle de pointe, blinkx est capable de fournir des résultats plus précis et plus fiables que les recherches par mots clés standard se basant sur les métadonnées.

Ã€ propos de Conde Nast Portfolio.com

Portfolio.com est l'homologue en ligne de Condé Nast Portfolio, le nouveau magazine économique lancé en avril 2007. Le site présente les informations économiques majeures du jour accompagnées d'analyses de bloggeurs et de journalistes sur divers thèmes économiques allant des fonds de couverture à la politique, en passant par Hollywood, ainsi que du contenu rédactionnel et photographique issu du magazine.

Ã€ propos de WallSt.net

WallSt.net (http://www.wallst.net) est propriété de son exploitant WallStreet Direct, Inc., une filiale à 100 % de Financial Media Group, Inc. (OTCBB : FNGP ; http://www.financialmediagroupinc.com). Le site Web est un important fournisseur d'actualités économiques, d'interviews avec des personnalités, de contenu multimédia et d'outils de recherche du jour. Financial Media Group, Inc. est également propriétaire de my.wallst.net, un réseau social financier pour investisseurs, et de Financial Filings Corp. (http://www.financialfilings.com), un fournisseur de solutions de conformité pour les entreprises cotées en bourse. Outre WallSt.net, WallStreet Direct, Inc. est propriétaire et exploitant de WallStRadio (http://www.wallstradio.com), un site Web offrant des podcasts sur des thèmes économiques et financiers, et de WallSt TV (tv.wallst.net), un centre audiovisuel de programmation vidéo économique et financière.

Ã€ propos de blinkx

blinkx plc (LSE AIM: BLNX) est le moteur de recherche vidéo le plus grand et le plus avancé au monde. Ã€ ce jour, blinkx a répertorié plus de 18 millions d'heures d'audio, de vidéos, de contenu viral et télévisuel, tous disponibles sur demande et entièrement consultables. Les fondateurs de blinkx ont entrepris de résoudre un énorme défi, à mesure de l'explosion sur le Web des contenus télévisuels et générés par les internautes, les technologies de recherche par mots clés ne font qu'érafler la surface. Les technologies de recherche brevetées de blinkx écoutent et voient mÃªme le Web, aidant ainsi les internautes à obtenir des résultats de recherche exhaustifs et précis qui ne sont pas disponibles ailleurs. De plus, blinkx anime la recherche vidéo pour nombre des sites les plus fréquentés au monde. blinkx est basée à San Francisco et à Londres. Pour en savoir plus, consultez http://www.blinkx.com.

Contacts de presse : 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

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

Wal-Mart Launches Online Resource Guide to Save More, Even Beyond the StoreRetailer's 'Save More' Site to Click with Budget Conscious Shoppers on Solutions to Help Consumers Spend Wisely and Save in Tough Times

BENTONVILLE, Ark., May 9 /PRNewswire-FirstCall/ -- Wal-Mart launches today a new on-line platform for customers hungry for ideas to stretch their dollars during tough times. The site, located at http://www.walmart.com/savemore, will feature tips and advice from Ellie Kay -- America's Family Financial Expert(R) and best-selling author of 11 books including her most recent release, A Tip A Day With Ellie Kay.

With 20 years of financial experience, Ellie has appeared on numerous television and radio talk shows speaking about practical ways in which women, families and children can better understand how to save and spend their money. Her advice will serve as a resource for budget-conscious shoppers looking for tips and tools as they face a summer of rising costs for gas, food and other necessities.

In addition, Wal-Mart merchants and everyday shoppers will have the ability to contribute content to the site by offering their own ideas on how to spend wisely and save more money. Over the last six months, nearly half of Americans say they have tried to become more practical in their purchases and more budget conscious.*

"Millions of Americans are currently facing tough times, and it's important people know there are simple solutions to save money, and ways to spend their dollars thoughtfully," said Ellie Kay. "I'm pleased to share what I have learned from experience, so we can help families evaluate their spending and make smart, lasting decisions."

Located at http://www.walmart.com/savemore, the site's features include: -- Ellie Kay's Money Saving Tips: A mother of seven, Kay provides practical pointers anyone can use for savings big and small. -- How's Your Spending Style Quiz: An interactive quiz for people who want to know where they rate as far as saving and spending, along with counsel from Ellie Kay on factors to consider when trying to save even more. -- Weekly Columns: Timely columns from Ellie Kay whose first column is "Seven Steps to Survive and Thrive in Tough Economic Times." Columns will be updated every few days. -- Consumer Insights: Wal-Mart's senior merchants provide customer perspective and Wal-Mart plans for helping customers save in the checkout lanes. -- Share YOUR Ideas: The site allows for consumers to present their ideas for how they've learned to save money and spend wisely, with top ideas shared on the site.

Building on the added advice columns and tips, http://www.walmart.com/savemore will host podcasts and an interactive on-line chat for customers to ask Ellie Kay questions later this spring.

Savings In Stores Continue

Expected to save Wal-Mart customers millions annually, the retailer earlier this week announced phase three of its $4 Prescription Program, which now covers a 90-day prescription for $10, additional women's health medications, and 1,000 over-the-counter (OTC) medicines at $4 and below. The 90-day option gives more choices to customers and physicians who may in the past have been limited to mail order prescriptions.

Wal-Mart continues to enhance savings across the store and on-line including cashing economic stimulus checks for free and Rollbacks on prices, starting with everyday grocery items like juices, coffee, cereal, and pizza. Internal Wal-Mart research shows its prices on frequently purchased items can be up to 25 percent lower than competitors. With over six in 10 Americans expecting their stimulus checks to cover their family needs,* it's a price gap that will deliver real value in the weeks ahead.

Wal-Mart will continue to announce more Rollbacks in upcoming days, adding up the savings on more items across the store. Consumers can see more of Wal-Mart's featured savings in stores and on-line by visiting http://www.walmart.com/savemore or http://www.walmart.com/ throughout spring and summer

* Based on data compiled in April 2008 by BIGResearch, on behalf of Wal-Mart. About Ellie Kay

As an author, speaker and media spokesperson, Ellie Kay has 20 years experience helping families around the world gain control of their money. Her diverse approach to writing and speaking includes everything from leading women in fun-filled "Girl's Night Out" programs, to providing upbeat financial advice and giving military families around the world practical skills to handle their unique financial challenges. She has written several books including, A Mom's Guide to Family Finances, and the recently released, A Tip a Day with Ellie Kay.

About Wal-Mart Stores, Inc.

Wal-Mart Stores, Inc. operates Wal-Mart discount stores, Supercenters, Neighborhood Markets and Sam's Club locations in the United States. The company operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom. Wal-Mart serves more than 176 million customers weekly in 14 markets. The company's securities are listed on the New York Stock Exchange under the symbol WMT. For more information: http://www.walmartfacts.com.

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CONTACT: Melissa O'Brien of Wal-Mart Stores, Inc., 1-800-331-0085

Web site: http://www.walmart.com/savemore
http://www.walmartstores.com/

VanceInfo Reports Higher Results for the First Quarter 2008

BEIJING, May 9 /Xinhua-PRNewswire/ -- VanceInfo Technologies Inc. , an IT service provider and one of the leading offshore software development companies in China, today reported its unaudited financial results for the first quarter ended March 31, 2008.

First Quarter 2008 Financial and Operating Highlights -- Net revenues in the first quarter of 2008 increased 96.5% to US$20.5 million from the first quarter of 2007. -- Gross profit margin in the first quarter was 38.0%, compared to 37.8% in the same period in 2007. -- Net income for the first quarter of 2008 increased 138.3% to US$3.1 million from the first quarter of 2007. The net margin for the first quarter of 2008 increased to 14.9% from 12.3% in the first quarter of 2007. Non-GAAP net income, which excludes share-based compensation expense, was $3.4 million, up 126.0% from $1.5 million a year ago. -- Employees totaled 4,002, including 3,488 billable professionals, as of March 31, 2008.

"Success at winning new business, ability to execute well for our clients, enhanced domain knowledge and effectiveness in managing our high growth rate have resulted in our very good operating and financial performance in the first quarter," said Mr. Chris Chen, Chairman and Chief Executive Officer of VanceInfo. He continued, "The Chinese economy continues to grow at a healthy pace and has enabled us to increase our near-shore services with multinational companies doing business in China. Meanwhile, our expanded sales efforts in the United States have generated strong potential for additional growth. Considering all the relevant factors, I continue to believe that 2008 will be an outstanding year for VanceInfo."

First Quarter 2008 Financial Results

Due to the seasonal nature of its business, the company presents financial analysis on a year-over-year basis between the first quarter of 2008 and the first quarter of 2007 as in the following paragraphs.

Net Revenues

Net revenues were $20.5 million in the first quarter of 2008, up 96.5% from $10.4 million in the first quarter of 2007. The increase in net revenues was primarily due to winning new customers, expanding our work with current clients, and the addition of clients from our acquisitions in 2007.

Net Revenues by Service Lines

Net revenues from research & development services grew 79.3% during the first quarter of 2008 from the first quarter of 2007 and accounted for the majority of the company's revenues. Net revenues from application development & maintenance had the strongest growth in the first quarter, up 260.6% from the first quarter of last year. The continued strength in these two service lines compensated the overall seasonal weakness during the first quarter.

Three Months Ended Three Months Ended March 31, 2008 March 31, 2007 (in US$ thousands, except percentages) Research & development services $12,020 58.6% $6,705 64.3% Globalization & localization 901 4.4% 865 8.3% Enterprise solutions 2,352 11.5% 735 7.0% Application development & maintenance 3,725 18.2% 1,033 9.9% Quality assurance & testing 1,504 7.3% 1,097 10.5% Total net revenues $20,502 100.0% $10,435 100.0% Net Revenues by Geographic Markets

Based on the location of our clients' headquarters, the United States continued to be the company's largest geographic market, accounting for $12.6 million or 61.5% of net revenues in the first quarter of 2008, followed by 12.8% from clients headquartered in Europe, 12.8% in China and 12.7% in Japan.

Measuring the company's revenues by geographic markets based on the location of the contract signing entities, rather than the location of the clients' headquarters, China accounted for 68.2% of net revenues in the first quarter 2008, while the United States accounted for 18.3% and Japan accounted for 9.0% in the same period. This supplemental geographic analysis provides an additional measure for assessing the company's geographic participation and highlights the company's involvement in the expanding Chinese market. Accordingly, during the first quarter, the company experienced limited effect from the U.S. economic slowdown, and for the same reason, only 20.8% of the company's net revenues in the first quarter of 2008 were subject to any effect from the U.S. dollar depreciation.

Largest Clients

The total revenues from the company's two largest clients, Microsoft and IBM, accounted for 31.4% of the company's net revenues in the first quarter of 2008, compared to 46.4% in the first quarter of 2007. Similarly, revenues from the top five clients totaled 51.1% of net revenues in the quarter, compared to 65.7% in the first quarter of 2007.

Gross Profit and Gross Profit Margin

Gross profit in the first quarter of 2008 was $7.8 million, an increase of 97.5% from $3.9 million in the first quarter of 2007. Gross profit margin was 38.0% in the first quarter of 2008, up slightly from 37.8% in the first quarter of 2007, as the company continued to optimize its service mix with higher average billing rates while effectively managing employee costs.

Operating Expenses

Sales and marketing expenses were $1.0 million in the first quarter 2008, up 244.4% from $0.3 million in the first quarter of 2007. The increase was due to the hiring of several experienced sales professionals in the United States in the second half of 2007. General and administrative expenses were $4.3 million in the first quarter of 2008, up 85.7% from $2.3 million a year ago. The increase was consistent with the company's growth as well as higher administrative costs associated with being a public company.

Operating Income and Operating Profit Margin

Operating income in the first quarter of 2008 was $2.6 million, up 97.5% from $1.3 million in the first quarter 2007. Operating profit margin was 12.7% in the first quarter of 2008, compared with 12.6% in the first quarter of 2007.

Provision for income taxes

The provision for income taxes was $0.6 million in the first quarter of 2008, compared to $0.1 million in the first quarter of 2007. The provision was higher than expected due to uncertainties in implementing the new Chinese Enterprise Income Tax Regulation that became effective in 2008. The provision in the first quarter of 2008 assumes that the company's main operating entity would not receive the renewal of its High and New Technology Enterprise status under the new regulation in current year and, therefore, cannot enjoy the preferential tax rates in 2008.

Net Income and EPS

Net income in the first quarter of 2008 was $3.1 million, up 138.3% from $1.3 million in the first quarter of 2007. The net margin was 14.9% in the first quarter of 2008, a significant increase over the 12.3% net margin achieved in the first quarter of 2007. Non-GAAP net income, which excludes share-based compensation expense, was $3.4 million, up 126.0% from $1.5 million a year ago. Non-GAAP net margin was 16.6%, compared to 14.4% in the prior year period. The increase in net income was primarily due to higher operating income, higher interest income and foreign exchange gains, partly offset by the higher provision for income taxes.

Diluted earnings per share ("EPS") were $0.08 in the first quarter, compared to $0.02 in the first quarter 2007. Non-GAAP diluted EPS, which excludes share-based compensation expense, was $0.08 in the first quarter, compared to $0.05 in the first quarter 2007, assuming conversion of the preferred shares for the prior year period.

The non-GAAP measures are described below and reconciled to the corresponding GAAP measures in the section below titled "About Non-GAAP Financial Measures."

Recent Developments Increased Equity Ownership in Shanghai Solutions

On April 10, 2008, VanceInfo signed a definitive agreement to acquire an additional 10% of Shanghai Solutions, a 75% owned subsidiary of the company, from NEC System Technologies Ltd. ("NECST"), a subsidiary of NEC Corporation. In connection with the transaction, NECST will receive $0.1 million in cash and 58,348 ordinary shares of VanceInfo Technologies Inc., which will be subject to a staggered lockup period of up to three years. The transaction will further strengthen the relationship between VanceInfo and NECST, which is one of the company's top 10 customers.

Opening of New Delivery Center

During the first quarter of 2008, the company opened a new delivery center in Chengdu, a city in southwest China. The opening of the new office is part of the company's strategy to further expand into select second-tier cities in China to utilize the local engineering talents with relatively lower costs in the regions.

Acquisition of Professional Team in Support of Huawei

On April 30, 2008, the company acquired a team of engineers from Shenzhen Createam Software Development Co., Ltd. ("Createam"), a small Shenzhen-based supplier to Huawei Technologies. Approximately 80 experienced IT professionals joined the company in connection with the transaction, which enhanced VanceInfo's workforce in Shenzhen, where Huawei is headquartered. The move provides the opportunity to further strengthen VanceInfo's relationship with Huawei, which is consolidating service providers in an effort to achieve higher efficiency and service quality. The acquisition consideration is not material to VanceInfo.

Huawei Technologies is a leader in the next generation telecommunications networks. VanceInfo provides software development and testing services to Huawei in business software, mobile terminals, wireless systems and IT services. In March 2008, Huawei Software ranked VanceInfo as its Number One vendor for R&D services.

Enhancement in Management Structure

David Chen, previously Chief Operating Officer of VanceInfo, was appointed President of the company effective March 7, 2008. He is also a member of the newly formed CEO Office, along with CEO Chris Chen and CFO Sidney Huang.

During the first quarter 2008, the company established a Corporate Planning Department that reports directly to the CEO Office and helps drive the implementation of the company's strategic initiatives.

Outlook for the Second Quarter and Full Year 2008

VanceInfo expects to generate net revenues between US$22 million and US$23 million in the second quarter of 2008, representing a 47% to 54% increase from the second quarter of 2007. Second quarter diluted EPS is expected to be approximately US$0.08 on a GAAP basis and US$0.09 on a non-GAAP basis, which excludes share-based compensation, based on 40.5 million total ADS-equivalent average shares outstanding. Strong fundamental outlook is partially offset by lower interest income and higher potential income tax provisions.

Based on the company's current understanding of the new Chinese Enterprise Income Tax Regulation, the company estimates its effective tax rate for 2008 at this time to be between 8% and 16%. There are currently divergent views on how the new regulation will be implemented. The company's ultimate applicable tax rate will depend on many factors, including whether its main operating entity will receive a renewal of its High and New Technology Enterprise status under the new regulation and whether any of the proposed preferential tax rules for software enterprises are materialized.

For the full year 2008, the company maintains the guidance that it provided in its fourth quarter 2007 earnings release and expects:

-- Net revenues to be between US$92 million and US$96 million, representing a 47% to 53% increase from 2007. -- Diluted EPS to be between US$0.34 and US$0.38 on a GAAP basis, and non-GAAP diluted EPS excluding share-based compensation to be between US$0.37 and US$0.41, based on 40.6 million total ADS-equivalent average shares outstanding. -- Total headcount by the end of 2008 to be between 4,800 and 5,000. Conference Call

VanceInfo will host a conference call and live webcast to discuss the quarter's results and outlook at 8:30 a.m. Eastern Standard Time (8:30 p.m. Beijing/Hong Kong time) on May 9, 2008. Please dial-in five to ten minutes prior to the call to register and receive further instructions.

The dial-in details for the live conference call are: -- U.S. Toll Free Number: +1 866-800-8649 -- International dial-in number: +1 617-614-2703 -- Hong Kong dial-in number: +852 3002-1672 Passcode: VanceInfo

The conference call will be available live by webcast on the Investors section of VanceInfo Technologies website at http://ir.vanceinfo.com/ . The archive replay will be available on VanceInfo's website shortly after the call.

A dial-in replay of the conference call will be available until 12:00 p.m. EST, May 16, 2008 at +1 888-286-8010 or +1 617-801-6888; Passcode: 68101204.

About VanceInfo

VanceInfo Technologies Inc. is an IT service provider and one of the leading offshore software development companies in China. VanceInfo ranked among the top three Chinese offshore software development service providers for the North American and European markets as measured by 2006 revenues, according to International Data Corporation. VanceInfo's comprehensive range of IT services includes research & development services, enterprise solutions, application development & maintenance, quality assurance & testing, and globalization & localization. VanceInfo provides these services primarily to corporations headquartered in the United States, Europe, Japan, and China, targeting high-growth industries such as technology, telecommunications, financial services, manufacturing, retail, and distribution.

Safe Harbor

This news release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, should, expects, anticipates, future, intends, plans, believes, estimates, and similar statements. Among other things, the management's quotations and "Outlook for the Second Quarter and Full Year 2008" contain forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Potential risks and uncertainties include, but are not limited to, the company's dependence on a limited number of clients for a significant portion of its revenues, the overall economic growth in its principal geographic markets, the quality and portfolio of its services lines and industry expertise, and the availability of a large talent pool in China and supply of qualified professionals, as well as the PRC government's investment in infrastructure construction and adoption of various incentives in the IT service industry. Further information regarding these and other risks is included in VanceInfo's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1. All information provided in this news release and in the attachments is as of May 9, 2008, and VanceInfo does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement VanceInfo's consolidated financial results presented in accordance with GAAP, VanceInfo uses the following measures defined as non- GAAP financial measures by the SEC: net income excluding share-based compensation expenses, and diluted EPS excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to comparable GAAP measures" set forth at the end of this release.

VanceInfo believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain expenses and expenditures that may not be indicative of its operating performance from a cash perspective. The company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the company's performance and when planning and forecasting future periods. A limitation of using non-GAAP net income excluding share-based compensation expenses, and diluted EPS excluding share-based compensation expenses is that these non-GAAP measures exclude the share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are comparable to non-GAAP financial measures.

VanceInfo Technologies Inc. Condensed Consolidated Balance Sheets (Unaudited) (In US dollars in thousands) March 31 December 31 2008 2007 Assets Current assets Cash and cash equivalents $76,836 $78,206 Accounts receivable 27,608 24,708 Other current assets 5,953 5,879 Total current assets 110,397 108,793 Property and equipment, net 9,157 7,999 Goodwill and other intangible assets 14,669 11,701 Other long-term assets 1,079 583 Total assets $135,302 $129,076 Liabilities, minority interest, and shareholders' equity Current liabilities $18,310 $17,114 Other liabilities 1,159 954 Total liabilities 19,469 18,068 Minority interest 606 630 Shareholders' equity (a) 115,227 110,378 Total liabilities, minority interest, and shareholders' equity $135,302 $129,076 (a) As of March 31, 2008, there were 37,198,907 ordinary shares issued and outstanding. VanceInfo Technologies Inc. Condensed Consolidated Statements of Operations (Unaudited) (In US dollars in thousands, except per share data) Three months ended March 31, 2008 2007 Net revenues $20,502 $10,435 Cost of revenues (1) 12,718 6,493 Gross Profit 7,784 3,942 Selling and marketing expenses (1) 978 284 General and administrative expenses (1) 4,343 2,339 Other operating income 144 1 Income from operations 2,607 1,320 Interest Income 667 210 Interest expenses 23 -- Foreign currency exchange gains (losses) 376 (73) Change in fair value of warrants -- 41 Income before income taxes and minority interest 3,627 1,416 Provision for income taxes 591 107 Income before minority interest 3,036 1,309 Minority Interest 24 (25) Net Income $3,060 $1,284 Earnings per share Basic - ordinary share $0.08 $0.02 Basic - Series A convertible redeemable preferred share N/A 0.06 Basic - Series B-1 convertible redeemable preferred share N/A 0.06 Basic - Series B-2 convertible redeemable preferred share N/A 0.08 Diluted - ordinary share 0.08 0.02 Weighted average shares outstanding Basic - ordinary share 37,199 8,802 Basic - Series A convertible redeemable preferred share -- 7,175 Basic - Series B-1 convertible redeemable preferred share -- 2,990 Basic - Series B-2 convertible redeemable preferred share -- 6,380 Diluted - ordinary share 40,188 9,669 (1) Depreciation and amortization expenses totaled $0.8 million and $0.4 million for the three months ended March 31, 2008 and 2007, respectively. VANCEINFO TECHNOLOGIES INC. Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Measures (In US dollars in thousands, except per share data and percentages) Three Months Ended March 31, Three Months Ended March 31, 2008 2007 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Net income $3,060 $346 (a) $3,406 $1,284 $223 (b) $1,507 Net margin 14.9% 1.7% (a) 16.6% 12.3% 2.1% (b) 14.4% Average shares (c) 40,188 -- 40,188 9,669 18,141 27,810 Diluted EPS $0.08 -- (d) $0.08 $0.02 $0.03 (d) $0.05 Notes: (a) Adjustment to exclude share-based compensation of $346 from operations of which $58 was reported in cost of revenues, $45 was reported in selling and marketing expenses and $243 was reported in general and administrative expenses in the unaudited condensed consolidated statements of operations. (b) Adjustment to exclude share-based compensation of $223 from operations of which $18 was reported in cost of revenues, $10 was reported in selling and marketing expenses and $195 was reported in general and administrative expenses in our unaudited condensed consolidated statements of operations. (c) Represent weighted average number of ordinary and dilutive shares outstanding (d) Non-GAAP diluted EPS is computed by dividing Non-GAAP net income by the weighted average number of ordinary and dilutive shares outstanding for the respective periods plus the number of ordinary shares resulting from the assumed conversion of the Series A, B-1, B-2 and B-3 convertible redeemable preferred shares as of the beginning of the prior year period. For further information, please contact: Melissa Ning Director, Investor Relations VanceInfo Technologies Inc. Tel: +86-10-8282-5330 Email: ir@vanceinfo.com Tip Fleming Christensen Tel: +852-2117-0861 Email: tfleming@ChristensenIR.com Peter Homstaad Christensen Tel: +1-480-614-3000 Email: cgus@ChristensenIR.com

VanceInfo Technologies Inc.

CONTACT: Melissa Ning, Director, Investor Relations of VanceInfo
Technologies Inc., +86-10-8282-5330, or ir@vanceinfo.com; Tip Fleming of
Christensen, +852-2117-0861, or tfleming@ChristensenIR.com; Peter Homstaad of
Christensen, +1-480-614-3000, or cgus@ChristensenIR.com

Web Site: http://ir.vanceinfo.com/

Microsoft Named Preferred Technology Partner in 'City of the Future' ProjectSongdo, a new Korean city currently under construction, will offer ubiquitous technology for citizens, government, education.

JAKARTA, Indonesia, May 9 /PRNewswire-FirstCall/ -- Microsoft Corp. will play a key role in creating a ubiquitous computing environment for future citizens and businesses of Songdo International Business District (IBD). The city of the future is currently under construction in Incheon just 40 miles southwest of Seoul, South Korea. Songdo will be the first "new" city in the world designed and planned as an international business district. Microsoft has signed a memorandum of understanding (MOU) with Gale International, the developer responsible for the $35 billion (U.S.) project, to collaborate to deliver technology and infrastructure and create a cutting-edge, digitally connected and environmentally sustainable city for the benefit of citizens, businesses and government.

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"Designing an entirely new city from the ground up provides a unique opportunity to create an ideal technological infrastructure in which access to digital capabilities and experiences is an inherent part of the living and working environment across people's lives," said Bill Gates, chairman of Microsoft, in a keynote address at the Government Leaders Forum-Asia in Jakarta, Indonesia. "Microsoft is pleased to join with Gale International, which is working closely with the governments of Korea and Incheon and the Incheon Free Economic Zone Authority to help turn this exciting vision into reality."

Microsoft, Gale International and the Korean government are working to identify the technological requirements of this state-of-the-art project. Plans include providing a common interface to connecting to government services via Windows Mobile and the Microsoft Citizen Service Platform, as well as the implementation of technologies that empower this LEED-Neighborhood Development certified city and the use of tools such as the upcoming Microsoft Surface combined with Virtual Earth to provide greater access via kiosks to information on the city as an international gateway to residents and visitors.

"I am very glad to have Microsoft as one of the major technology partners for the ubiquitous connectivity of Songdo IBD, a part of the Incheon Free Economic Zone," said Heon-Seok Lee, commissioner of the Free Economic Zone Authority. "I am confident that Microsoft's technologies will successfully make Songdo IBD a cutting-edge technology-enabled city, which will accelerate Incheon Free Economic Zone's city development and investment promotion."

The MOU announced today is a comprehensive expansion of an existing collaboration between the various parties focused on the Educational Excellence in Technology Initiative to link students, parents, educators, academic institutions, local industry and government partners in a shared vision of how students and workers can reach their potential through technology skills training in a global context. Specifically, the original agreement outlines the integration of the Microsoft Digital Literacy Curriculum and Microsoft IT Academy into the Songdo International School, which will be Asia's most modern private preparatory school. It will be available there both in the school curriculum and in after-hours adult education for local citizens.

"I am glad to be able to extend and enhance our alliance with Microsoft, which further deepens and broadens our collaborative efforts with the world's leading IT company," said Stanley C. Gale, chairman and partner of Gale International. "I am very confident that Microsoft will help Songdo IBD set an example for other cities around the world."

Songdo IBD, the "Gateway to Northeast Asia," is the first new city in the world designed and planned as an international business district. This 100 million-square-foot, master-planned metropolis located within the Incheon Free Economic Zone will be connected to the Incheon International Airport, one of the world's busiest, by a new 7.4-mile bridge and linked by subway to Seoul. It is estimated that when complete in 2015, Songdo IBD will be home to 65,000 people and that 300,000 will work there.

Songdo IBD will offer every conceivable amenity, including a world-class hospital, an international preparatory school, museums and the Jack Nicklaus Golf Club Korea. Songdo IBD will be 40 percent green space, featuring a 100-acre Central Park. It is being designed and constructed to ensure long-term environmental sustainability, thus minimizing the city's carbon footprint. Songdo IBD was recently named a "green urbanism" pilot project by the U.S. Green Building Council. More information can be found at http://www.songdo.com/.

About Gale International

Gale International is a premier international real estate investment and development company with headquarters in New York and offices in Boston; Irvine, California; Seoul and Songdo, South Korea.

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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PRN Photo Desk, photodesk@prnewswire.com Microsoft Corp.

CONTACT: Mary Lou DiNardo, Gale International, International and U.S.
Queries, +1-212-909-0340, mldinardo@tkprpublic.com; or Hyewon Chang, Gale
International, Domestic ROK Queries, +82 2 6260-3353,
hwchang@galeintlkorea.com; or Rapid Response Team of Waggener Edstrom
Worldwide, +1-503-443-7070, rrt@waggeneredstrom.com, for Microsoft Corp.

Web site: http://www.microsoft.com/
http://www.songdo.com/

Microsoft Expands Commitment to Accessibility and High-Quality Education Across Asia Pacific RegionBill Gates announces new partnerships that broaden the impact of technology at the local level.

JAKARTA, Indonesia, May 9 /PRNewswire-FirstCall/ -- Today, in his keynote address at the Government Leaders Forum-Asia (GLF Asia) in Jakarta, Microsoft Corp. Chairman Bill Gates announced several new programs, partnerships and offerings that strengthen Microsoft's commitment to and investment in delivering accessible technology and transforming education for citizens across the Asia Pacific region and around the world.

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The announcements include new education tools for people with special needs; the extension of an important skills development and certification program available through Internet cafes (iCafes) in the Philippines; the further progress of Microsoft's flagship K-12 education program Partners in Learning, which has now achieved a milestone number of 100 million students reached worldwide; and the expansion of Microsoft Innovation Centers in Indonesia with Pelita Harapan University.

"At the heart of our efforts is the belief that technology can provide capabilities that are key to creating new jobs and generating sustainable economic growth, including access to a quality education and the knowledge and infrastructure to foster local innovation," Gates said. "We want to do everything we can to equip people with PCs, the Internet, productivity software, e-mail and other tools of the digital information revolution so that they can be full participants in the global knowledge economy."

Broadening Access to Technology

Microsoft believes information technology can have a significant impact on people's lives and is committed to working with public and private sector organizations to seek solutions to expand access to technology. Demonstrating this commitment, Microsoft today announced it will be teaming up with the Oscar-winning New Zealand-based animation studio Weta Workshop and Australian software developer Northern Territory Institute for Community Education and Development (NTICED) to help the estimated 10 percent of the world's population living with special needs acquire skills and knowledge through the use of technology. Initially, the collaboration will make resources and tools based on its Partners in Learning Curriculum available to students and educators through an interactive Web site that will deliver audio, written text, images and video through rich animation-based content.

"Animation has the capacity to unlock the power of education for children," said J. Easterby Wood, partnering director of NTICED. "This new collaboration will enhance the ability for students with learning difficulties around the world to discover, experience and learn for life."

"Weta Workshop is very excited about collaborating with Microsoft to help address assistive learning in communities all over the world," said Richard Taylor, director of Weta Workshop. "By creating a rich set of tools and resources, we hope to give educators and students an experience that will accelerate their advancement and meet their unique needs."

Commitment to Lifelong Learning

Microsoft believes learning is a lifelong endeavor. In today's knowledge-based economy, computer literacy has become a vital workplace skill -- a skill that millions of people worldwide still lack. Today, to help address this important need, Microsoft announced an agreement with Philippines-based iCafe operator Netopia to launch an innovative pilot program that brings new learning and training opportunities to people through Netopia's 169 iCafes. This program will provide access to software such as the 2007 Microsoft Office system in addition to digital literacy courses and free certifications through the Microsoft IT Academy Learning Portal to help citizens gain the skills and education necessary to build or advance their careers.

"We are thrilled to be working with Microsoft to bring e-learning technology to our iCafe customers throughout the Philippines," said George H. Tan, CEO of Netopia. "Our mission is to provide affordable access to information and communication to people without computers and the Internet. Now, with the digital literacy courses and certification from Microsoft, we are expanding our services and enabling new opportunities."

Collaboration With Universities to Foster Local Economic Growth

Microsoft Innovation Centers are at the forefront of building local software economies through partnerships with universities around the world. Innovation Centers provide access to world-class resources for software developers, IT professionals, students, academic researchers and entrepreneurs. Today, Microsoft announced it will collaborate with Pelita Harapan University in Jakarta to open a new Innovation Center in Indonesia. There are currently four Innovation Centers operating in Indonesia in partnership with leading universities across the country. This expansion marks the second largest investment in the program in Asia Pacific, after China.

First established in 2006, a network of 110 Innovation Centers now serve 100 communities in 60 countries around the world, including more than 30 across 13 countries in Asia Pacific. Microsoft Innovation Centers focus on three core programs for the benefit of local students, entrepreneurs and other technology industry players:

-- Skills and Intellectual Capital offers software development courses, business skills and market development training, and employment programs for students. -- Industry Partnerships fosters the creation and development of industry clusters, software quality certification, and hands-on technology labs. -- Innovation includes supporting the Microsoft Imagine Cup, the world's largest student software development competition.

Imagine Cup participation is an important aspect of the Microsoft Innovation Center program. An outstanding example is the Bandung Institute of Technology (ITB) Innovation Center, which the past three years has fielded the winning team that has represented Indonesia at the worldwide Imagine Cup finals.

"Promoting innovation amongst our student population helps ensure that Indonesia increases its ability to be competitive in the global information economy," said Dr. Djoko Santoso, rector of Bandung Institute of Technology. "The Imagine Cup provides an opportunity for our students to test their programming skills against the best and the brightest students in the world, and to develop software that maps to real issues facing society today."

This year, ITB's winning entry, Team Butterfly, showed how technology can help promote environmental sustainability by creating a reporting tool that allows anybody to report environmental abuse to alert government officials and the public. The team will take this solution to the worldwide finals in Paris in July. More than 42,000 students from across the Asia Pacific region have registered for the Imagine Cup 2008.

More information on Microsoft Innovation Centers can be found at http://www.microsoft.com/mscorp/innovation/centers.

Partners in Learning Milestone

Microsoft achieved an important milestone in its efforts to transform education across Asia Pacific and around the world, reaching more than 100 million students globally through its flagship K-12 education initiative, Partners in Learning. Earlier this year, Microsoft announced a recommitment of $235.5 million (U.S.) to Partners in Learning that will bring the company's total 10-year investment to nearly $500 million, and is estimated to enable the program to significantly expand its impact by reaching many more students and teachers around the world in the next five years.

One such example is Korea's Ubiquitous Learning, or "U-Learning," project, developed in conjunction with the Korean Ministry of Education, Science and Technology. Students use technology such as Tablet PCs and mobile devices to access, share and present content and digital textbooks in subjects such as math, Korean, English, society, music and science.

The initial pilot program started in nine schools and has since expanded to 20, and the government aims to fully digitize all curriculum by 2020.

Together, these products, programs and partnerships connect a global community of governments, partners and educators in an effort to improve access to affordable technologies, create new lifelong learning and skills training opportunities, and support educational innovations that are relevant to local communities in Asia and around the world.

Microsoft's vision for education in the 21st century is driven by the shared belief that the use of technology in education will help remove limitations, foster innovation and enable everyone to achieve their fullest potential.

More information on Microsoft Partners in Learning can be found at http://www.microsoft.com/education/PartnersinLearning.mspx.

About Unlimited Potential

Microsoft, through its Unlimited Potential vision, is committed to making technology more affordable, relevant and accessible for the 5 billion people around the world who do not yet enjoy its benefits. The company aims to do so by helping to transform education and foster a culture of innovation, and through these means enable better jobs and opportunities. By working with governments, intergovernmental organizations, nongovernmental organizations and industry partners, Microsoft hopes to reach its first major milestone -- to reach the next 1 billion people who are not yet realizing the benefits of technology -- by 2015.

More information can be found at http://www.microsoft.com/unlimitedpotential/default.mspx.

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Microsoft Corp.

CONTACT: Rapid Response Team of Waggener Edstrom Worldwide,
+1-503-443-7070, rrt@waggeneredstrom.com, for Microsoft Corp.

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

ASE Inc. and ASE Test Announce Anticipated Effective Date of Proposed 'Going Private' Acquisition of ASE Test by ASE Inc.

TAIPEI, Taiwan, May 9 /Xinhua-PRNewswire-FirstCall/ -- Advanced Semiconductor Engineering, Inc. (NYSE: ASX, TAIEX: 2311, ''ASE Inc.'') and its majority-owned subsidiary ASE Test Limited (Nasdaq: ASTSF, TAIEX: 9101, "ASE Test'') today announced May 30, 2008 as the anticipated effective date of the proposed ''going private'' acquisition by ASE Inc. of the outstanding ordinary shares of ASE Test that ASE Inc. does not directly or indirectly own by way of a scheme of arrangement under Singapore law (the ''Scheme'').

ASE Inc. and ASE Test announced on May 6, 2008 that the Scheme was approved by the requisite majority of unaffiliated shareholders of ASE Test at the May 6, 2008 meeting of shareholders of ASE Test convened by the order of the High Court of Singapore (the ''Court''). ASE Test applied on May 7, 2008 to the Court to sanction the Scheme, and a Court hearing to sanction the Scheme is scheduled to take place on May 22, 2008. The Scheme will only become effective when the order of the Court sanctioning the Scheme is lodged with the Accounting and Corporate Regulatory Authority of Singapore (the ''ACRA'').

ASE Inc. and ASE Test currently anticipate that the Scheme will become effective on May 30, 2008, pending the receipt of the order of the Court sanctioning the Scheme, the lodging of such order with the ACRA and the satisfaction of other customary closing conditions. The books closure date for determining the entitlements of shareholders of ASE Test under the Scheme is expected to be the same date as the effective date of the Scheme.

About ASE Inc.

ASE Inc. is one of the world's largest independent provider of integrated circuit (''IC'') packaging services and, together with its majority owned subsidiary ASE Test Limited, the world's largest independent provider of IC testing services, including front-end engineering test, wafer probe and final test services. ASE Inc. currently has approximately more than 200 international customers. With advanced technological capabilities and a global presence spanning Taiwan, Korea, Japan, Singapore, Malaysia and the United States, ASE Inc. has established a reputation for reliable, high quality products and services. For more information, visit our website at http://www.aseglobal.com/ .

The common shares of ASE Inc. are listed on the Taiwan Stock Exchange under the symbol ''2311''. The American Depository Receipts of ASE Inc. are listed on the New York Stock Exchange under the symbol ''ASX''.

The directors of ASE Inc. (including any director who may have delegated detailed supervision of this press release) have taken all reasonable care to ensure that the facts stated and opinions expressed in this press release (other than those relating to ASE Test) are fair or accurate and that no material facts have been omitted from this press release and they jointly and severally accept responsibility accordingly. Where any information has been extracted from published or publicly available sources or obtained from ASE Test, the sole responsibility of the directors of ASE Inc. has been to ensure, through reasonable enquiries, that such information is accurately extracted from such sources or, as the case may be, reflected or reproduced in this press release.

About ASE Test

ASE Test is one of the world's largest independent providers of semiconductor testing services. It provides customers with a complete range of semiconductor testing services, including front-end engineering test, wafer probe, final test and other test-related services.

The ordinary shares of ASE Test are quoted for trading on The NASDAQ Global Market under the symbol ''ASTSF''. ASE Test's Taiwan Depository Shares, which represent its ordinary shares, are listed for trading on the Taiwan Stock Exchange under the symbol ''9101''.

The directors of ASE Test (including any director who may have delegated detailed supervision of this press release) have taken all reasonable care to ensure that the facts stated and opinions expressed in this press release are fair or accurate and that no material facts have been omitted from this press release and they jointly and severally accept responsibility accordingly. Where any information has been extracted from published or publicly available sources, the sole responsibility of the directors of ASE Test has been to ensure, through reasonable enquiries, that such information is accurately extracted from such sources or, as the case may be, reflected or reproduced in this press release.

Forward-Looking Statements

All statements other than statements of historical facts included in this press release are or may be forward-looking statements. Forward-looking statements include, but are not limited to, those using words such as "seek", "expect", "anticipate", "estimate", "believe", "intend", "project", "plan", "strategy", "forecast" and similar expressions or future or conditional verbs such as "will", "would", "should", "could", "may" and "might". These statements reflect ASE Inc.'s or ASE Test's (as the case may be) current expectations, beliefs, hopes, intentions or strategies regarding the future and assumptions in light of currently available information. Such forward-looking statements are not guarantees of future performance or events and involve known and unknown risks and uncertainties. Accordingly, actual results may differ materially from those described in such forward-looking statements. Shareholders and investors should not place undue reliance on such forward-looking statements, and ASE Inc. and ASE Test undertake no obligation to update publicly or revise any forward-looking statements.

For further information please contact: ASE Inc. Freddie Liu (Vice President) Tel: +8862 8780-5489 Email: freddie_liu@aseglobal.com ASE Test Ken Hsiang (CFO) Tel: +1-510-687-2475 Email: ken_hsiang@aseglobal.com MacKenzie Partners (UK) Limited (Proxy Solicitation Agent) Michael Diaz Tel: +44-207-170-4155

Advanced Semiconductor Engineering, Inc.; ASE Test Limited

CONTACT: Freddie Liu (Vice President) of ASE Inc., +8862 8780-5489, or
freddie_liu@aseglobal.com; or Ken Hsiang (CFO) of ASE Test, +1-510-687-2475,
or ken_hsiang@aseglobal.com; or Michael Diaz of MacKenzie Partners (UK)
Limited (Proxy Solicitation Agent), +44-207-170-4155, for ASE

Telecom Argentina S.A. Announces Consolidated First Quarter Results for Fiscal Year 2008 ("1Q08")*

BUENOS AIRES, Argentina, May 9 /PRNewswire-FirstCall/ --

-- Telecom Argentina Group continues to improve its business, confirming the growth trend evidenced in previous periods. During 1Q08 Net Revenues grew 21% when compared to same period of the previous year (1Q07), amounting to P$2,480 million. Major revenue increase came from the Cellular business with an expansion of 27% and from Internet businesses with a growth of 33%, both with respect to 1Q07. -- The cellular subscribers increased by 18%, reaching 12.6 million, while broadband subscribers grew 60% totaling 841,000, meanwhile fixed lines in service increased by 3% to 4.2 million. -- Operating Profit before Depreciation and Amortization ("OPBDA") reached P$879 million (+28% vs. 1Q07), equivalent to 35% of Net Revenues, mainly fueled by the cellular telephony growth. On the contrary, fixed telephony profitability continues to weaken due to frozen tariffs and the inflation effect on the general cost structure. -- Net Income reached P$272 million (+101% vs. 1Q07). -- Investments totaled P$248 million during 1Q08 (+78% vs. 1Q07), where P$144 million were allocated to fixed telephony (+121% vs. 1Q07). -- Net Financial Debt (before NPV effect) declined to P$1,666 million (-P$1,556 million vs. March 2007). The Net Financial Debt to OPBDA ratio declined from 1.2x as of the end of March 2007, to 0.5x as of the end March 2008. * Non-Financial data audited As of March-31 % 2008 2007 change change Consolidated Net Revenues (in MM P$) 2480 2058 422 21% Voice, Data & Internet 863 786 77 10% Cellular 1617 1272 345 27% Operating Profit before D&A (in MM P$) 879 688 191 28% Operating Profit (in MM P$) 534 358 176 49% Net Income (in MM P$) 272 135 137 101% Shareholder's equity (in MM P$) 3328 2261 1,067 47% Net Financial Debt - Before NPV effect (in MM P$) 1666 3222 -1,556 -48% Net Financial Debt - Book value (in MM P$) 1619 3090 -1,471 -48% CAPEX (in MM P$) 248 139 109 78% Lines in service (Fixed lines-in thousands) 4224 4117 107 3% Cellular customers (in thousands) 12575 10639 1,936 18% Personal (Argentina) 10882 9310 1,572 17% Nucleo (Paraguay) 1693 1329 364 27% ADSL customers (in thousands) 841 526 315 60% Fixed line traffic (in MM minutes, Internet & Public Telephony not incl.) 3894 3998 -104 -3% Incoming/Outgoing cellular voice traffic in Arg.(in MM minutes) 2710 2224 486 22% Average Revenue per user (ARPU) Fixed Telephony/voice (in P$) 38 38 - 0% Average Revenue per user (ARPU) Cellular Telephony Arg. (in P$) 40 37 3 8%

Telecom Argentina (BASE: TECO2, NYSE: TEO), one of Argentina's leading telecommunications groups, announced today a Net Income of P$272 million for the three-month period ended March 31, 2008.

During 1Q08, Consolidated Net Revenues increased 21% (+P$422 million vs. 1Q07) to P$2,480 million, mainly fueled by the cellular and broadband businesses.

Moreover, OPBDA increased by 28% (+P$191 million) to P$879 million (35% of Consolidated Net Revenues). This level of operating profits before depreciation and amortization is the consequence of the improvement in revenues, together with a better efficiency in costs despite increasing inflationary pressure.

Company Activities Consolidated Net Revenues

The evolution in Consolidated Net Revenues by reportable segment was as follows:

Voice, Data Transmission & Internet

Revenues generated by these services amounted to P$863 million, +10% vs. 1Q07.

Voice

Total Revenues for this service reached P$651 million (+4% vs. 1Q07). The results of this line of business are affected by frozen tariffs of regulated services.

During this three-month period, Telecom continued with the implementation of the fixed line renewal process, started last year with the launch of innovative terminals and value-added services, which before were available only for cellular telephony such as fixed SMS services and video call.

Moreover, during this period Telecom continued with the deployment of the next generation technology (NGN) in its fixed telephony network that will allow the offering of convergent state-of-the-art services.

Monthly Charges and Supplementary Services increased by P$14 million or 8%, to P$196 million, as a consequence of a higher number of lines in service (+3%), reaching 4.2 million of lines.

Revenues generated by traffic (Local Measured Service, Domestic Long Distance and International Telephony) totaled P$293 million, (-2% vs. 1Q07) mainly because a slight decrease in traffic volume and higher discounts granted to the customers.

Interconnection revenues amounted to P$94 million (+8%), mainly as a consequence of traffic originated in cellular lines but transported by and terminated in the Company's fixed-line network.

Public Telephony & Other

Other revenues, including public telephony reached P$68 million (+19% vs. 1Q07). This amount was affected by an increase in billing and collection fees and voice, data and internet handset sales despite a decrease in Public Telephony revenues (-$6 million).

Internet and Data Transmission

Total revenues coming from Internet services reached P$158 million (+33% vs. 1Q07), mainly due to the substantial expansion of broadband service, driven by a better network coverage, commercial promotions, and innovation of the service portfolio.

Telecom's broadband subscribers reached 841,000 as of March 2008(+60% vs. March07). Therefore, lines with this type of connections represent approximately 20% of Telecom's fixed-lines in service.

Revenues generated by Data transmission amounted to P$54 million, (+32% vs. 1Q07). Related to the corporate market, during this period Telecom continued enhancing its positioning as integrated provider of communication solutions, focused on technology innovation in order to offer the most innovative services to both government sector and corporate clients.

Telecom provides tailor-made and converging systems that integrate voice & data services -for both fixed and cellular services- together with internet services, web, multimedia, and specially ICT solutions (Information and communication technology) and datacenter services.

Cellular Telephony

The Cellular Telephony continues with its expansion, increasing its participation in the Group's total revenues (65% vs. 62% in 1Q07). During the first three-months of 2008 this business generated revenues of P$1,617 million (+27% vs. 1Q07). Total subscribers reached 12.6 million.

Telecom Personal in Argentina

As of the three-month period ended March 31, 2008, Personal's subscribers reached 10.9 million in Argentina (+1.6 million or +17% vs. 1Q07). Approximately 66% of the overall subscriber base is prepaid and 34% is postpaid.

Total voice traffic increased by 22% vs. 1Q07 while outgoing SMS traffic increased from an average of 762 million messages in 1Q07 to an average of 990 million (+30%) in 1Q08. Because of this enhancement in traffic and the use of value-added services, the Average Monthly Revenue per User ("ARPU") increased by P$40 in 1Q08, compared to P$37 in 1Q07.

Revenues totaled P$1,510 million (+P$330 million or +28% vs. 1Q07). Service revenues increased by P$305 million or 29% vs. 1Q07, reaching P$1,361 million; furthermore, value added services totaled P$392 million (+P$128 million or 48% vs. 1Q07), which means 26% of Revenues. In addition handset sales grew by P$25 million (+20%) compared to 1Q07, reaching P$149 million.

During 1Q08, Personal enhanced its commercial offer, launching the "Tu Familia Personal" plan (Your Personal Family plan). It allows to make free, unlimited communications, both calls or SMS to a group of three telephone numbers of the Company, previously selected by the client.

Due to the summer season, Personal developed a plan for the expansion of the 3G/3.5G network in main Argentine tourist cities.

Personal also continued reinforcing its strategy related to music downloads, as a platform for increasing the use of innovative value-added services, such as full MP3.

Moreover, the Company is successfully reaching the conclusion of the migration process of the network technology from TDMA to GSM technology.

Nucleo

Personal's controlled subsidiary that operates in Paraguay, generated revenues equivalent to P$107 million during 1Q08 (+16% vs. 1Q07).

By the end of March 2008, the subscriber base reached approximately 1.7 million, +27% vs. 1Q07. Prepaid and Postpaid customers represented 90% and 10%, respectively.

During first quarter of 2008, Nucleo launched third generation services (3G) in Paraguay.

Consolidated Operating Costs

The Cost of Services Provided, Administrative Expenses and Selling Expenses totaled P$1,946 million in 1Q08, which represents an increase of P$246 million or +14% vs. 1Q07. Notwithstanding, in relative terms such

increase is less than revenue growth due to an improvement in efficiency and a better distribution of costs.

The cost breakdown is as follows: -- Salaries and Social Security Contributions: P$270 million (+26%), affected by increases in salaries and personnel (+258 employees vs. 1Q07). -- Taxes: P$199 million (+24%), in line with the general evolution of revenues. -- Agents and Prepaid Card Commissions: P$173 million (-2%), mainly due to reduction in commissions paid to commercial agents. -- Advertising: P$73 million (+20%) to support the commercial activity in the cellular telephony and internet. -- Cost of handsets sold: totaled P$201 million similar levels as that registered in 1Q07. -- TLRD and Roaming: P$219 million (+24%) due to increased traffic among cellular operators. -- Depreciation of Fixed and Intangible Assets: P$345 million (+5% vs. 1Q07). Fixed-line telephony totaled P$192 million (-9%) and Cellular telephony $153 million (+28%). Consolidated Financial and Holding Results

Financial and Holding Results resulted in a loss of P$60 million, (-P$72 million vs. 1Q07). Such improvement was due to a reduction in net interests and a lower impact of foreign currency exchange looser generated by liabilities.

Consolidated Net Financial Debt

As of March 31, 2008, Net Financial Debt (Loans before the effect of NPV valuation, minus Cash, Cash Equivalents and Other credits from derivative Investments) amounted to P$1,666 million, a reduction of P$1,556 million as compared to March 2007. A substantial generation of operating cash flow allowed for the decrease in indebtedness.

Dividends of Telecom Personal

As of the end of March 2008, Personal paid a cash dividend distribution of P$220 million.

Consolidated Capital Expenditures

During 1Q08, the Company invested P$248 million (excluding material), in fixed and intangibles assets. Such amount was allocated to the Voice, Data and Internet businesses (P$144 million) and to the cellular business (P$104 million).

Main Capex projects are related to the expansion of broadband services and to the upgrade of the network for next generation services (NGN), the improvement of the network (capacity, coverage and 3G), and the launch of new and innovative value-added services.

Recent Relevant Matters

On April 15, 2008 Telecom Argentina made, along with the interest payments of its financial debt, a principal prepayment of Notes, in the amount of US$ 260 million; such funds came from excess cash determined as of December 31, 2007 and a voluntary prepayment, that includes the amount of dividends received from Telecom Personal.

-- At the Shareholders' Meeting held on April 29, 2008 and the Board of Directors Meeting on the same date, the members of the Board of Directors, independent auditors, and members of the Audit Committee were named for the 20th fiscal year.

Telecom is the parent company of a leading telecommunications group in Argentina, where it offers directly or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, data transmission and Internet services, among other services. Additionally, through a controlled subsidiary, the Telecom Group offers cellular services in Paraguay. The Company commenced operations on November 8, 1990, upon the Argentine government's transfer of the telecommunications system in the northern region of Argentina.

Nortel Inversora S.A. ("Nortel"), which acquired the majority of the Company from the Argentine government, holds 54.74% of Telecom's common stock. Nortel is a holding company where the common stock (approximately 68% of capital stock) is owned by Sofora Telecomunicaciones S.A. Additionally, Nortel capital stock is comprised of preferred shares that are held by minority shareholders.

As of March 31, 2008, Telecom had 984,380,978 shares outstanding. (*) Employee Stock Ownership Program For more information, please contact the Investor Relations Department: Pedro Insussarry Solange Barthe Dennin Evangelina Sanchez Ruth Fuhrmann 54-11-4968-3743 54-11-4968-3752 54-11-4968-3718 54-11-4968-4448 Voice Mail: 54-11-4968-3628 Fax: 54-11-4313-5842 E-mail: relinver@ta.telecom.com.ar For information about Telecom Group services, visit: http://www.telecom.com.ar/ http://www.personal.com.ar/ http://www.personal.com.py/ http://www.arnet.com.ar/ Disclaimer

This document may contain statements that could constitute forward-looking statements, including, but not limited to, the Company's expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; the effects of its debt restructuring process; the impact of emergency laws enacted by the Argentine Government; and the impact of rate changes and competition on the Company's future financial performance. Forward-looking statements may be identified by words such as "believes," "expects," "anticipates," "projects," "intends," "should," "seeks," "estimates," "future" or other similar expressions. Forward-looking statements involve risks and uncertainties that could significantly affect the Company's expected results. The risks and uncertainties include, but are not limited to, the impact of emergency laws enacted by the Argentine government that have resulted in the repeal of Argentina's Convertibility law, devaluation of the peso, various changes in restrictions on the ability to exchange pesos into foreign currencies, and currency transfer policy generally, the "pesification" of tariffs charged for public services, the elimination of indexes to adjust rates charged for public services and the Executive branch announcement to renegotiate the terms of the concessions granted to public service providers, including Telecom. Due to extensive changes in laws and economic and business conditions in Argentina, it is difficult to predict the impact of these changes on the Company's financial condition. Other factors may include, but are not limited to, the evolution of the economy in Argentina, growing inflationary pressure and evolution in consumer spending and the outcome of certain legal proceedings. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. The Company undertakes no obligation to release publicly the results of any revisions to forward-looking statements which may be made to reflect events and circumstances after the date of this press release, including, without limitation, changes in the Company's business or to reflect the occurrence of unanticipated events. Readers are encouraged to consult the Company's Annual Report on Form 20-F, as well as periodic filings made on Form 6-K, which are filed with or furnished to the United States Securities and Exchange Commission for further information concerning risks and uncertainties faced by Telecom.

Telecom Argentina S.A.

CONTACT: Pedro Insussarry, +54-11-4968-3743, or Solange Barthe Dennin,
+54-11-4968-3752, both of Telecom Argentina

Web site: http://www.telecom.com.ar/
http://www.personal.com.ar/
http://www.personal.com.py/
http://www.arnet.com.ar/

/C O R R E C T I O N -- Aware, Inc./In the news release "Aware, Inc. Reports First Quarter 2008 Financial Results" issued earlier today by Aware, Inc. over PR Newswire, the sixth paragraph was omitted from the release as incorrectly transmitted by PR Newswire. The complete, corrected release follows:Aware, Inc. Reports First Quarter 2008 Financial Results

BEDFORD, Mass., May 8 /PRNewswire-FirstCall/ -- Aware, Inc. , a leading supplier of broadband technology and biometrics software, today reported financial results for its first quarter ended March 31, 2008.

Revenues for the first quarter of 2008 were $5.9 million, an increase of 1% compared to $5.8 million in the same quarter last year.

The Company reports its net income and basic and diluted net income per share in accordance with U.S. generally accepted accounting principles (GAAP), and additionally, on a non-GAAP basis. Non-GAAP net income, where applicable, excludes the effect of stock-based compensation expense. The company uses the non-GAAP information internally to evaluate its operating performance and believes these non-GAAP measures are useful to investors as they provide additional insight into the underlying operating results. However, non-GAAP measures are not stated in accordance with, should not be considered in isolation from, and are not a substitute for, GAAP measures. A reconciliation of GAAP to non-GAAP results has been provided in the attached financial tables.

The GAAP net loss for the first quarter of 2008 was $1.3 million, or $0.05 per diluted share, which included $0.3 million of stock-based compensation charges in accordance with the provisions of FAS 123(R). This compared to a GAAP net loss of $0.1 million, or $0.00 per diluted share, for the same period a year ago.

The Non-GAAP net loss for the first quarter of 2008, excluding the effect of stock-based compensation, was $1.0 million, or $0.04 per diluted share.

Michael Tzannes, Aware's chief executive officer, said, "We are pleased with the progress in our biometrics software and DSL test and diagnostics product lines this quarter. Favorable trends in both of these markets have driven demand for our products and our business performance. While we are not pleased with our overall financial performance, we are focused on improving the outlook for our licensing product line by expanding into new communications applications that leverage our DSL technology assets and diversify our customer base."

Note: Aware's conference call will be broadcast live over the Internet today, May 8, 2008 at 5:00 p.m. Eastern Time. To listen to the call, please go to http://www.aware.com/ir. The conference call may also be heard by calling 617-213-4852 and referencing the confirmation number 86740432. A replay of the call will be archived on our website after the call.

About Aware

Aware is a leading technology supplier for the telecommunications industries. For more than ten years, Aware has pioneered innovations at telecommunications standards-setting organizations and continues to develop and market DSL silicon intellectual property and test and diagnostics products. Its StratiPHY(tm) IP product line supports DSL standards, including ADSL2+ and VDSL2, and has been broadly licensed to leading semiconductor companies. Telecom equipment vendors and phone companies use Aware's DSL test and diagnostics modules and Dr. DSL(R) software to help provision DSL circuits globally. Aware is also a veteran of the biometrics industry, providing biometric and imaging software components used in government systems worldwide since 1992. Aware's interoperable, standard-compliant, field-proven imaging products are used in a number of applications, from border management to criminal justice to medical imaging. Aware is a publicly held company based in Bedford, Massachusetts. http://www.aware.com/.

Safe Harbor Warning

Portions of this release contain forward-looking statements regarding future events and are subject to risks and uncertainties, such as estimates or projections of future revenue and earnings and the growth of the DSL and biometrics markets. Aware wishes to caution you that there are factors that could cause actual results to differ materially from the results indicated by such statements. The DSL factors include, but are not limited to: we have a unique business model, our quarterly results are difficult to predict, our DSL licensing and DSL test and diagnostic businesses depend upon a limited number of customers, we derive a significant amount of revenue from a small number of customers, we depend on equipment companies to incorporate our technology into their products, we face intense competition from other DSL vendors, DSL technology competes with other technologies for broadband access, our business could be harmed if our test and diagnostic hardware and software products have quality problems, we depend on a single source contract manufacturer for the manufacture of our DSL hardware products, our manufacturing systems may not be adequate for our DSL test and diagnostics hardware products, we depend on single source suppliers for components in our DSL hardware products, and our business is subject to rapid technological change. The biometric factors include, but are not limited to: market acceptance of our biometric products, changes in contracting practices of government or law enforcement agencies, announcements or introductions of new products by our competitors, delays, failures or problems in our biometric products, delays in the adoption of new industry biometric standards, and competitive pressures resulting in lower software product revenues. We refer you to the documents Aware files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2007 and other reports and filings made with the Securities and Exchange Commission.

Aware, StratiPHY, and Dr. DSL are trademarks or registered trademarks of Aware, Inc.

AWARE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited) Three Months Ended March 31, 2008 2007 Revenue: Product sales $3,924 $3,465 Contract revenue 1,521 1,834 Royalties 431 501 Total revenue 5,876 5,800 Costs and expenses: Cost of product sales (1) 824 495 Cost of contract revenue (1) 1,018 1,352 Research and development (1) 3,528 2,557 Selling and marketing (1) 969 873 General and administrative (1) 1,193 1,116 Total costs and expenses 7,532 6,393 Net loss from operations (1,656) (593) Interest income 383 505 Net loss before provision for income taxes (1,273) (88) Provision for income taxes (9) (10) Net loss ($1,282) ($98) Net loss per share - basic ($0.05) $0.00 Net loss per share - diluted ($0.05) $0.00 Weighted average shares - basic 23,880,358 23,656,931 Weighted average shares - diluted 23,880,358 23,656,931 (1) Effective January 1, 2006 the Company adopted Statement of Financial Accounting Standard No. 123 (Revised), "Share-Based Payment" (FAS 123(R)). The amounts in the tables above include stock-based compensation as follows (in thousands): Three Months Ended March 31, 2008 2007 Cost of product sales $3 $2 Cost of contract revenue 34 36 Research and development 167 85 Sales and marketing 31 21 General and administrative 90 91 Total stock-based compensation costs $325 $235 AWARE, INC. Non-GAAP Financial Measures and Reconciliation (In thousands, except per share data) (unaudited) Three Months Ended March 31, 2008 2007 GAAP net loss ($1,282) ($98) Stock-based compensation 325 235 Non-GAAP net income (loss) ($957) $137 Three Months Ended March 31, 2008 2007 GAAP diluted net loss per share ($0.05) ($0.00) Stock-based compensation per share 0.01 0.01 Non-GAAP diluted net income (loss) per share ($0.04) $0.01 AWARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) March 31, December 31, 2008 2007 ASSETS Cash and investments $40,304 $38,549 Accounts receivable, net 5,044 7,661 Inventories, net 1,513 1,424 Property and equipment, net 7,879 7,872 Other assets, net 850 877 Total assets $55,590 $56,383 LIABILITIES AND STOCKHOLDERS' EQUITY Total current liabilities $2,823 $2,817 Long-term deferred revenue 330 330 Total stockholders' equity 52,437 53,236 Total liabilities and stockholders' equity $55,590 $56,383

Aware, Inc.

CONTACT: Rick Moberg of Aware, Inc., +1-781-276-4000

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

Company News On-Call: http://www.prnewswire.com/comp/107679.html