Companies news

Five of the Nation's Largest Retailers Take Top Honors in APEX Analytix Recovery Audit Benchmarking Survey- Best Buy, Food Lion, Safeway, Wal-Mart and Winn-Dixie recognized for best-in-class performance

GREENSBORO, N.C., July 29 /PRNewswire/ -- APEX Analytix, a leading provider of services and software for performance improvement, error prevention and fraud detection in accounts payable, today announced that five of the nation's largest retailers have taken top honors in the company's Top Gun Retail Recovery Audit Best Practices Benchmarking Survey.

A recovery audit involves a thorough review of accounts payable disbursements to recover overpayments and protect a company's hard-earned profits. Participants in the APEX Analytix recovery audit benchmarking survey with the highest-ranking scores were:

-- Recovery Audit Approach & Methodology: Safeway Inc. . -- Claim Processing Procedures and Workflow: Winn-Dixie Stores Inc. . -- Key Productivity and Efficiency Metrics: Food Lion LLC, a subsidiary of the Delhaize Group . -- Technology Use: Best Buy Company Inc. . -- Overall Best in Class Winner, All Categories: Wal-Mart Stores Inc. .

"These five retailers are the best of the best," said Michael Lustig, CEO of APEX Analytix. "They share a commitment to continuous improvement that can help them operate more efficiently, reduce costs, protect revenues and achieve an important competitive advantage in the marketplace."

The awards were announced during the recent APEX Analytix Top Gun Retail conference attended by accounts payable and recovery audit leaders representing retailers from across the nation.

Launched in March 2006, the APEX Analytix recovery audit benchmarking survey for retailers helps companies determine how their operations rank against those of their peers. They can identify emerging best practices and plot a path towards best-in-class performance. Each participating organization receives a confidential report with personalized rankings by category.

To date 32 retailers have participated in the Top Gun Recovery Audit survey. Among them are some of the best-managed retail organizations in the world -- many of whom are early adopters of financial best practices.

Participation is free of charge and is typically limited to retailers with revenues of $2 billion or more. Current participants have a median of $14.6 billion in merchandise disbursements each year.

About APEX Analytix

APEX Analytix is an innovative audit recovery firm serving more than a third of the Fortune 100. The company has transformed the audit recovery industry with FirstStrike(TM), a highly functional family of standards-based software that detects and prevents both errors and fraud and improves performance across the procure-to-pay process. To date FirstStrike(TM) has saved businesses more than $1.5 billion in overpayments and is the most widely used software of its type. For more information, call 800.284.4522 or visit http://www.apexanalytix.com/ .

PRESS CONTACT: Linda Edgerton Linda Edgerton Communications 336.286.9211 ledgerton@triadbiz.rr.com

APEX Analytix

CONTACT: Linda Edgerton, +1-336-286-9211, ledgerton@triadbiz.rr.com, for
APEX Analytix

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

AT&T Launches 3G Wireless Broadband Service in SavannahNation's Fastest 3G Network Allows for Advanced Mobile Services

SAVANNAH, Ga., July 29 /PRNewswire-FirstCall/ -- Watch video on the go. Surf the wireless Internet at lightning speed. Share live video during a wireless call. These are just a few of the things you can do with AT&T's third-generation (3G) wireless service, now available in Savannah. Today, AT&T Inc. announced the launch of the company's 3G wireless network in Savannah, offering consumers and businesses broadband-like speed and access to the latest interactive voice, video and data applications. AT&T operates the nation's fastest 3G network, according to data compiled by leading independent wireless research firms.

AT&T's 3G network opens the door to a new era of mobile services, devices and feature-rich audio and video content, including the simultaneous sharing of voice and live video. This rapidly expanding network, combined with an ever-expanding lineup of 3G devices -- from the Samsung a737 to the iPhone 3G -- gives AT&T customers in Savannah the best in mobile communications.

"The city of Savannah is experiencing impressive growth, and we are growing our local network to meet this increased demand for high-quality wireless service," said Brenda Kittila, vice president and general manager, AT&T Georgia Wireless Operations. "Our goal is to ensure that AT&T customers in Savannah have the very best wireless experience possible -- which includes unmatched coverage and quality of service. AT&T 3G delivers exceptional quality and speed when customers are on the move. They can view videos from their favorite shows, play games, download music, check the stock market or just read and write e-mail as if they were at home or in the office."

Many of AT&T's 3G devices support AT&T Video Share(SM), a first-of-its-kind service in the U.S. that enables users to share live video while carrying on a voice call -- providing a new way to share personal moments and key events beyond the capabilities of voice, text and photos.

AT&T's 3G customers can also view razor-sharp video clips through CV, an on-demand streaming video service that offers a comprehensive library of mobile video content from CNN, FOX News, ABC Mobile, CBS Mobile, NBC, ESPN, The Weather Channel, MTV, VH1, Comedy Central, "American Idol," HBO Mobile and more.

"At AT&T, our mission is to connect people where they live and work and do it better than anyone else," said Sylvia Anderson, president, AT&T Georgia. "The expansion of 3G service in Savannah is another great example of AT&T's commitment to deliver the most advanced communications capabilities to our customers in the Savannah community. This launch is the result of AT&T's continued investment in expanding wireless coverage across Georgia."

AT&T plans to invest nearly $125 million in the Georgia network in 2008 to expand wireless coverage, bringing the company's three-year planned network investment in Georgia for wireless and wired services to nearly $1.5 billion. With the addition of Savannah, the AT&T 3G network is now available in 300 U.S. major metropolitan areas. The company will deliver 3G service to nearly 350 leading U.S. markets by the end of 2008. For the launch of AT&T's 3G wireless network in Savannah, the company enhanced the technology at 65 existing cell sites across the Savannah area and plans more than 25 new cells sites in the Savannah area in 2009.

The 3G network in Savannah will launch with HSUPA technology. This year's HSUPA deployment in all 3G markets completed the transition of the AT&T 3G network to High Speed Packet Access (HSPA) standards, marking the only full transition by any wireless provider in the United States to this latest generation of wireless broadband capabilities. The AT&T 3G network now delivers LaptopConnect users typical downlink speeds ranging between 700 kilobits per second (Kbps) and 1.7 megabits per second (Mbps), and faster uplink speeds ranging between 500 Kbps and 1.2 Mbps. The faster uplink speeds allow users to quickly send large files and take full advantage of the latest Internet and business applications.

The company's wireless network is based on GSM (Global System for Mobile Communications) technologies, the most open and widely used wireless network platform in the world, supporting 88 percent of the people worldwide who use wireless devices. In addition to the company's constant 3G expansion in the U.S., only AT&T can offer 3G data roaming in more than 60 countries, including Japan and South Korea, as well as voice calling in more than 200 countries. Nearly all devices in AT&T's current portfolio are "world phones" that can be used around the world.

For the complete array of AT&T offerings, visit http://www.att.com/ About AT&T

AT&T Inc. is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of its three-screen integration strategy, AT&T is expanding its TV entertainment offerings. In 2008, AT&T again ranked No. 1 on Fortune magazine's World's Most Admired Telecommunications Company list and No. 1 on America's Most Admired Telecommunications Company list. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com/.

Cautionary Language Concerning Forward-Looking Statements

Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.

Note: This AT&T news release and other announcements are available as part of an RSS feed at http://www.att.com/rss. For more information, please review this announcement in the AT&T newsroom at http://www.att.com/newsroom.

AT&T Inc.

CONTACT: Drew Giblin of AT&T Inc., +1-404-927-2993, mobile,
+1-404-536-0323, dgiblin@attnews.us

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

Captaris Announces Release Date and Conference Call Time for Second Quarter 2008 Financial Results

BELLEVUE, Wash., July 29 /PRNewswire-FirstCall/ -- Captaris, Inc. , a leading provider of software products that automate document-centric processes, today announced that it will report financial results for the 2008 second quarter before regular market trading on Friday, August 8th, 2008. The Company will host a conference call and webcast the same day to discuss financial results and other corporate events starting at 7:30 a.m. PT (10:30 a.m. ET).

What: Captaris 2008 Second Quarter Financial Results Conference Call When: Friday, August 8th at 7:30 a.m. PT (10:30 a.m. ET) Web Cast: A live and archived web cast of the conference call can be accessed from the Investor Relations section of the Captaris website at http://www.captaris.com/ Dial In: To access the live conference call, dial (800) 218-0713 and give the company name "Captaris." Replay: An audio replay of the conference call can be accessed at (800) 405-2236. The replay will be available starting two hours after the call and remain in effect until Friday, August 15th at 11:59 PT. The required pass code is 11117557#. About Captaris, Inc.

Captaris, Inc. is a leading provider of software products that automate document-centric business processes. Captaris specializes in document capture, recognition, routing, workflow and delivery. Captaris integrated solutions provide interoperability with leading line of business applications and technology platforms. Captaris products include RightFax, Captaris Workflow, Alchemy, FaxPress, DOKuStar, RecoStar, and Single Click Entry which are distributed through a global network of leading technology partners. Captaris customers include the entire Fortune 100 and the majority of Global 2000 companies. Headquartered in Bellevue, Washington, Captaris was founded in 1982 and is publicly traded on the NASDAQ Global Market under the symbol CAPA. http://www.captaris.com/.

(C)2008 All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language in any form by any means without the written permission of Captaris. The following are registered trademarks and trademarks of Captaris Inc. and its subsidiaries: Captaris, the Captaris logo, Alchemy(R), Captaris Workflow(TM), RightDocs(TM), RightFax(R), RightFlow(TM) and RightStar(TM) in the US and/or other jurisdictions. FaxPress(TM) is a registered trademark of Castelle. RecoStar, DOKuStar, DOKuStar Capture Suite, Single Click Entry, and Invoice CENTER are registered trademarks and trademarks of Captaris Document Technologies GmbH. All other brand names and trademarks are the property of their respective owners.

Captaris, Inc.

CONTACT: Investor Relations, Erika Simms, Treasury Analyst of Captaris,
Inc., +1-425-638-4048, InvestorRelations@Captaris.com

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

Actel Strengthens TCA Market Position With Acquisition of Pigeon Point SystemsStrategic Move Augments Actel's Leadership Position in System and Power Management Solutions

MOUNTAIN VIEW, Calif., July 29 /PRNewswire-FirstCall/ -- Actel Corporation today announced that it has acquired Pigeon Point Systems, a privately-held supplier of telecommunications computing architecture (TCA) management components. By acquiring the leading provider of TCA management components, Actel now offers a comprehensive solution for proprietary and standards-based system management implementations in the industrial, military, telecommunications, and medical markets. The acquisition is not expected to have a material effect on Actel's financial condition or results of operations. Terms of the acquisition were not disclosed.

Defined by the PCI Industrial Computer Manufacturers Group (PICMG(R)), the industry-standard TCA specifications cover the AdvancedTCA(R), Advanced Mezzanine Card (AdvancedMC(TM)) and the MicroTCA(TM) frameworks. According to industry estimates from market research firm VDC, the opportunity for the overall standards-based TCA system market is expected to be roughly $1.8 billion by 2009.

Earlier this year, Actel and Pigeon Point announced a partnership to develop and market solutions based on the Actel Fusion(R) mixed-signal FPGAs to speed the design of AdvancedTCA blade and AdvancedMC carrier blade management controllers. The two companies' combined portfolio of reference designs, development kits, easy-to-use development environments and expert design services gives designers the capability to address system and power management issues throughout the design process.

"Pigeon Point is the de facto standard in the TCA arena," said John East, president and CEO of Actel. "As TCA experiences rapid deployment across the increasingly power-sensitive telecommunications, military and industrial markets, the merger of their market and technology leadership with Actel's innovative power and system management solutions gives us a tremendous opportunity to capture a significant portion of the TCA system market."

"Through mutual customer engagements, we've seen how the Actel Fusion FPGA offers TCA designers compelling benefits in implementing the critical system functions that affect TCA system and power management," said Mark Overgaard, president of Pigeon Point. "Actel's innovative mixed-signal Fusion FPGA, together with Pigeon Point's firmware and reference designs, will serve the complete range of customer applications -- from simple system management to higher performance TCA applications."

Pigeon Point Systems has more than 140 customers around the world, including many of the top global communications OEMs. Their product portfolio consists of world-class management components for modular platforms based on the AdvancedTCA, AdvancedMC and MicroTCA architectures. In addition to extending this portfolio with products based on the Actel Fusion mixed-signal FPGAs, Pigeon Point will continue to offer and enhance its existing market-leading solutions. The company will be a wholly owned subsidiary of Actel and will continue to operate out of its Scotts Valley, Calif. headquarters. More information can be found at http://www.pigeonpoint.com/ and http://www.actel.com/.

About Actel

Attacking power consumption at both the chip and the system levels, Actel Corporation's innovative FPGAs and programmable system chip solutions enable power-efficient design. The company is traded on the NASDAQ National Market under the symbol ACTL and is headquartered at 2061 Stierlin Court, Mountain View, Calif., 94043-4655. For more information about Actel, visit http://www.actel.com/.

The Actel name, logo, and Actel Fusion are trademarks of Actel Corporation. PICMG and AdvancedTCA are registered trademarks of the PCI Industrial Computer Manufacturers Group. AdvancedMC and MicroTCA are trademarks of PICMG. All other trademarks and service marks are the property of their respective owners.

Actel Corporation

CONTACT: Anna del Rosario of Actel Corporation, +1-650-318-4331; or
media, Diane Orr of Orr & Company, +1-408-358-1617, diane@orr-co.com, for
Actel Corporation

Web site: http://www.actel.com/
http://www.pigeonpoint.com/

JPMorgan Chase Selects Oracle(R) Enterprise Content Management Software to Streamline Document Capture Process Worldwide

REDWOOD SHORES, Calif., July 29 /PRNewswire-FirstCall/ -- -- JPMorgan Chase, a leading global financial services firm, will implement Oracle(R) Distributed Document Capture across its global enterprise to facilitate the electronic capture and management of a broad range of critical business documents including loan applications, financial statements, invoices and checks.

-- Oracle Distributed Document Capture provides scalability, easy administration, support for multiple input devices, and a user-friendly, Web-based interface.

-- JPMorgan Chase expects to benefit from faster document cycle times, improved regulatory compliance and records management, more automated business processes, and better access to information.

-- Oracle Distributed Document Capture initially will be rolled out to more than 750 U.S. users at JPMorgan Chase. By the end of 2009, more than 3,000 employees across the U.S., Europe, Africa and Asia are expected to be using the software.

Supporting Quote

-- "Oracle Distributed Document Capture is designed to help us increase efficiency and gain tighter control over records for compliance requirements," said Trevor Salt, Manager of Distributed Document Capture for JPMorgan Chase & Co.

Supporting Resources Analyst Reports

Independent Analyst Reports on Oracle Enterprise Content Management http://www.oracle.com/corporate/analyst/reports/infrastructure/index.html#ocs

Podcast Streamline Paper-Intensive Business Processes with Oracle Document Capture http://tinyurl.com/3tbz2d Related Press Releases

Oracle Expands Enterprise Content Management Portfolio with Launch of Oracle Universal Online Archive

http://tinyurl.com/4varq2 Oracle Strengthens Content Security, Enhances Content Management Platform http://tinyurl.com/6mmd9o Related Articles InfoWorld 2008 Technology of the Year Awards http://www.infoworld.com/archives/t.jsp?N=s&V=94327 Controlling the Content Evolution http://www.oracle.com/technology/oramag/oracle/07-nov/o67content.html Oracle Expert Blogs Billy Cripe - Oracle Fusion ECM http://blogs.oracle.com/fusionecm/ Related Resources Download Oracle Software http://www.oracle.com/technology/software/index.html Terms, conditions and restrictions apply. About Oracle Content Management

Oracle content management software is a unified enterprise content management platform that enables customers to leverage industry-leading document management, Web content management, digital asset management, and records management functionality to build their business applications. Building a strategic enterprise content management infrastructure for content and applications helps customers to reduce costs, easily share content across the enterprise, minimize risk, automate expensive, time-intensive and manual processes, and consolidate multiple Web sites onto a single platform. For more information about Oracle content management software, visit http://www.oracle.com/goto/contentmanagement.

About JPMorgan Chase

JPMorgan Chase & Co. is a leading global financial services firm with assets of $1.6 trillion, as of March 31, 2008, and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at http://www.jpmorganchase.com/.

About Oracle

Oracle is the world's largest enterprise software company. For more information about Oracle, please visit our Web site at http://www.oracle.com/.

Trademarks

Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020718/ORCLLOGO)

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020718/ORCLLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Oracle

CONTACT: Greg Lunsford of Oracle, +1-650-506-6523,
greg.lunsford@oracle.com; or Simon Jones of Blanc & Otus, +1-415-856-5155,
sjones@blancandotus.com, for Oracle

Web site: http://www.oracle.com/
http://www.jpmorganchase.com/

Regal Beloit Reports Record Sales and Earnings for the Second Quarter of 2008

BELOIT, Wis., July 29 /PRNewswire-FirstCall/ -- Regal Beloit Corporation today reported financial results for the second quarter ended June 28, 2008. Record quarterly performance was driven by strong market demand for generators, industrial motors and high efficiency motors coupled with strong operational execution and productivity improvements. Performance was achieved in spite of continued weakness in the residential HVAC market and unprecedented inflation in raw material costs.

Net sales increased 31.9% to $606.3 million from $459.8 million in the second quarter of 2007. Included in reported sales are $131.8 million of sales from the four acquisitions completed late in 2007 and the Hwada acquisition completed during the second quarter of 2008. Electrical segment sales increased 36.3%, including the impact of the acquisitions. Exclusive of the recently acquired businesses, global generator sales increased 40.2% and commercial and industrial motors sales in North America increased 4.6%, offsetting a 3.6% decline in residential HVAC motor sales. Mechanical segment sales increased 0.6% from the prior year period. Sales of high efficiency-energy saving products increased 9.2% to 12.9% of sales. Sales outside of the United States were 27.0% of total sales for the quarter, up from 22.8% in the year ago period.

The gross profit margin for the second quarter of 2008 was 21.6% as compared to the 22.6% reported in the second quarter of 2007. The decline in gross margin was primarily attributed to the acquired businesses which currently have a lower average gross margin of 17.7%. In addition, the legacy businesses were negatively impacted by raw material and other inflation. Net of the impact of product price increases, these cost increases totaled $8.5 million, which is within the Company's previously announced guidance of $7.0 to $9.0 million. This difference was largely offset by the impact of productivity and Lean Six Sigma project results. Income from operations was $67.5 million or 11.1% of sales as compared to $60.1 million or 13.1% of sales reported for the second quarter of 2007. Income from operations for the second quarter of 2008 for the four businesses acquired in 2007 was 9.7% of net sales. Hwada results for the two months included in the quarterly results were essentially neutral to earnings as a result of inventory related and other purchase accounting impacts. Net income in the second quarter of 2008 was $38.1 million as compared to $36.3 million reported in the second quarter of 2007. Diluted earnings per share increased 7.5% to $1.14 as compared to $1.06 for the second quarter of 2007.

Cash flow from operations was strong at $81.4 million, reflecting, in part, the continued emphasis on working capital management. Productivity and new product oriented capital spending was $14.5 million for the quarter as compared to $5.7 million for the comparative period in 2007. During the quarter, the Company closed a $165.0 million five-year term loan with a syndicate of banks. The proceeds from the term loan were used to pay off outstanding loans under the Company's revolving credit facility. At June 28, 2008, the Company had unused capacity of approximately $500.0 million under its revolving credit facility.

"We are quite pleased to once again report record results for the second quarter. We attribute our strong performance to our focus on innovation, diversifying our end markets, adding value-enhancing businesses and expanding our footprint in high growth regions around the world. Significant market opportunities are developing as the cost of energy continues to reach new heights, environmental consciousness gains widespread adoption and new energy efficiency legislation comes into effect. Our ability to supply substantial solutions to address these market opportunities will be a significant catalyst for our Company's growth for years to come," commented Henry W. Knueppel, Chairman and CEO.

Knueppel added, "The headwinds and tailwinds in the third quarter are expected to be similar to those faced so far this year. With this in mind, we remain confident in our ability to execute our operational and productivity programs, manage these temporary challenges and deliver record results. As such, we believe earnings per share to be in the range of $1.06 to $1.13 for the third quarter, including a one-time estimated tax benefit of $.07 per share."

Regal Beloit will be holding a conference call to discuss second quarter financial results at 1:30 PM CDT today. Interested parties should call 866-394-7807 (domestic) or 706-634-1728 (international), conference ID 57222578. A replay of the call will be available through August 8 at 800-642-1687 (domestic) or 706-645-9291 (international), access code 57222578.

About REGAL BELOIT CORPORATION:

Regal Beloit Corporation is a leading manufacturer and marketer of branded mechanical and electrical motion control and power generation products serving markets throughout the world. Regal Beloit is headquartered in Beloit, Wisconsin, and has manufacturing, sales, and service facilities throughout the United States, Canada, Mexico, Europe and Asia.

CAUTIONARY STATEMENT

This Quarterly Report contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our management's judgment regarding future events. In many cases, you can identify forward-looking statements by terminology such as "may," "will," "plan," "expect," "anticipate," "estimate," "believe," or "continue" or the negative of these terms or other similar words. Actual results and events could differ materially and adversely from those contained in the forward-looking statements due to a number of factors, including:

-- economic changes in global markets where we do business, such as currency exchange rates, inflation rates, interest rates, recession, foreign government policies and other external factors that we cannot control; -- unanticipated fluctuations in commodity prices and raw material costs; -- cyclical downturns affecting the global market for capital goods; -- unexpected issues and costs arising from the integration of acquired companies and businesses; -- marketplace acceptance of new and existing products including the loss of, or a decline in business from, any significant customers; -- the impact of capital market transactions that we may effect; -- the availability and effectiveness of our information technology systems; -- unanticipated costs associated with litigation matters; -- actions taken by our competitors; -- difficulties in staffing and managing foreign operations; and -- other risks and uncertainties including but not limited to those described in Item 1A-Risk Factors of the Company's Annual Report on Form 10-K filed on February 27, 2008 and from time to time in our reports filed with U.S. Securities and Exchange Commission.

All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the applicable cautionary statements. The forward-looking statements included in this news release are made only as of their respective dates, and we undertake no obligation to update these statements to reflect subsequent events or circumstances. See also Item 1A - Risk Factors in the Company's Annual Report on Form 10-K filed on February 27, 2008.

STATEMENTS OF INCOME In Thousands of Dollars (Unaudited) Three Months Ended Six Months Ended June 28, June 30, June 28, June 30, 2008 2007 2008 2007 Net Sales $606,316 $459,795 $1,142,659 $878,441 Cost of Sales 475,139 355,919 889,383 677,338 Gross Profit 131,177 103,876 253,276 201,103 Operating Expenses 63,683 43,821 128,170 93,717 Income From Operations 67,494 60,055 125,106 107,386 Interest Expense 7,127 4,425 14,346 9,491 Interest Income 531 241 915 330 Income Before Taxes & Minority Interest 60,898 55,871 111,675 98,225 Provision For Income Taxes 21,553 18,973 39,565 33,663 Income Before Minority Interest 39,345 36,898 72,110 64,562 Minority Interest in Income, Net of Tax 1,269 645 1,867 1,496 Net Income $38,076 $36,253 $70,243 $63,066 Earnings Per Share of Common Stock: Basic $1.21 $1.15 $2.24 $2.02 Assuming Dilution $1.14 $1.06 $2.11 $1.86 Cash Dividends Declared $0.16 $0.15 $0.31 $0.29 Weighted Average Number of Shares Outstanding: Basic 31,305,715 31,546,970 31,311,296 31,180,641 Assuming Dilution 33,525,725 34,177,529 33,321,379 33,862,524 CONDENSED BALANCE SHEETS In Thousands of Dollars (Unaudited) June 28, December 29, ASSETS 2008 2007 Current Assets: Cash and Cash Equivalents $87,710 $42,574 Receivables and Other Current Assets 470,014 367,717 Inventories 308,462 318,200 Total Current Assets 866,186 728,491 Net Property, Plant and Equipment 376,145 339,343 Other Noncurrent Assets 775,986 794,413 Total Assets $2,018,317 $1,862,247 LIABILITIES AND SHAREHOLDERS' INVESTMENT Accounts Payable $242,339 $183,215 Other Current Liabilities 152,201 128,705 Long-Term Debt 541,131 558,918 Deferred Income Taxes 80,643 75,055 Other Noncurrent Liabilities 63,894 47,783 Minority Interest in Consolidated Subsidiaries 13,151 10,542 Shareholders' Investment 924,958 858,029 Total Liabilities and Shareholders' Investment $2,018,317 $1,862,247 SEGMENT INFORMATION In Thousands of Dollars (Unaudited) Mechanical Segment Three Months Ending Six Months Ending June 28, June 30, June 28, June 30, 2008 2007 2008 2007 Net Sales $57,420 $57,064 $112,534 $111,658 Income from Operations $7,980 $9,793 $16,046 $16,674 (Unaudited) Electrical Segment Three Months Ending Six Months Ending June 28, June 30, June 28, June 30, 2008 2007 2008 2007 Net Sales $548,896 $402,731 $1,030,125 $766,783 Income from Operations $59,514 $50,262 $109,060 $90,712 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS In Thousands of Dollars (Unaudited) Six Months Ended June 28, 2008 June 30, 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $70,243 $63,066 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 30,211 20,367 Minority interest 1,867 1,496 Excess tax benefit from stock-based compensation (1,333) (6,590) Loss on sale of assets, net 70 51 Stock-based compensation expense 1,961 1,871 Change in assets and liabilities, net 13,266 19,849 Net cash provided by operating activities 116,285 100,110 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property, plant and equipment (28,134) (17,863) Business acquisitions, net of cash acquired (15,805) (2,425) Sale of property, plant and equipment 1,149 - Net cash used in investing activities (42,790) (20,288) CASH FLOWS FROM FINANCING ACTIVITIES: Net (repayments) proceeds from short-term borrowing (92) 8,200 Payments of long-term debt (233) (278) Net repayments under revolving credit facility (182,700) (31,600) Net repayments of commercial paper borrowings - (39,350) Net proceeds from long-term borrowings 165,000 - Dividends paid to shareholders (9,392) (8,709) Purchases of treasury stock (4,191) - Proceeds from the exercise of stock options 1,739 1,403 Excess tax benefits from stock-based compensation 1,333 6,590 Distributions to minority partners - (106) Financing feeds paid (418) (551) Net cash used in financing activities (28,954) (64,401) EFFECT OF EXCHANGE RATES ON CASH 595 1,195 Net increase in cash and cash equivalents 45,136 16,616 Cash and cash equivalents at beginning of period 42,574 36,520 Cash and cash equivalents at end of period $87,710 $53,136

Regal Beloit Corporation

CONTACT: David A. Barta, Vice President, Chief Financial Officer of
Regal Beloit Corporation, +1-608-361-7405

Web site: http://www.regal-beloit.com/

SI International Reports Financial Results for Second Quarter FY08Revenue of $142.8 million; Net Income of $3.8 million; Diluted EPS of $0.29; Full Year Guidance Revised

RESTON, Va., July 29 /PRNewswire-FirstCall/ -- SI International, Inc. , an information technology and network solutions (IT) company, today announced financial results for its second quarter ended June 28, 2008. Revenue for the second quarter of fiscal year 2008 (FY08) increased 20 percent as compared to the second quarter of the prior year. The Company's results were driven by growth in high-priority Federal government assignments primarily with civilian agencies and the acquisition of LOGTEC, Inc. at the beginning of June 2007.

Second Quarter FY08 Financial Results

Revenue for the second quarter of FY08 was $142.8 million, an increase of 20 percent over second quarter FY07 revenue of $118.8 million. Federal government contract revenue represented 99 percent of second quarter FY08 total revenue.

Income from operations for the second quarter of FY08 was $8.1 million. Operating margin for the second quarter of FY08 was 5.7 percent. Net income for the second quarter of FY08 was $3.8 million or $0.29 per diluted share. Days Sales Outstanding (DSO) were 71 days at the end of the second quarter FY08.

Backlog as of June 28, 2008 was approximately $1.57 billion. Funded backlog was $182 million. Business highlights for the quarter include:

-- Three new Enterprise Program Management contracts with the National Security Agency. The total ceiling value over a 5-year period is $131 million with potential ceiling expansion of an additional $200 million.

-- A new Indian Health Services Contract valued at $11 million over a 3- year period.

-- Two prime Census Bureau contract orders valued at $14 million over a 3- year period.

First Half FY08 Financial Results

For the first half of FY08 ended June 28, 2008, revenue was $277.2 million, compared to $232.5 million for the first half of FY07. Income from operations for the first half of FY08 was $15.6 million as compared to operating income of $19.0 million reported a year earlier. Operating margin for the first half of FY08 was 5.6 percent as compared to 8.2 percent in the first half of FY07. Net income for the first six months of FY08 was $7.3 million as compared to $9.8 million reported a year earlier.

As of June 28, 2008, SI International had a solid balance sheet with $14.4 million in cash, $101.8 million in debt, and $266.6 million of stockholders' equity.

"Despite challenging market conditions, we accomplished several important objectives that will provide SI International with future growth. We won a large and very strategic contract with an intelligence agency. We expanded our pipeline of opportunities to a record level. Our organic growth rate for the quarter returned to the double digits at 12 percent with our civilian organic growth rate at 28 percent," said Brad Antle, SI International's President and CEO.

Business Outlook

Based on SI International's current backlog and management's estimate as to future tasking and contract awards, the Company issued the following guidance ranges for the third and fourth quarters FY08 and revised guidance for full year 2008. Guidance was revised to reflect greater than expected start-up costs associated with the Enterprise Program Management contracts and a significant reduction in volume with the Patent and Trademark Office contract.

Q3 2008 Q4 2008 Full Year 2008 Revenue $147 - $153 $147 - $152 $570 - $580 million million million Net Income $3.9 - $4.3 $4.2 - $4.8 $15.4 - $16.4 million million million Diluted Earnings Per Share $0.30 - $0.33 $0.33 - $0.38 $1.18 - $1.26 Diluted Share Equivalents 13.0 million 12.8 million 13.1 million

"We are pleased that our revenue performance in the back half of this year will be strong and will position us well for 2009" said Antle. "At the same time, we have some profit issues that have led us to reduce earnings for the second half of the year. We have a plan to resolve these issues in 2008."

Conference Call

SI International has scheduled a conference call to discuss its results and business outlook for 10 AM EDT, today, July 29, 2008. Participating in the conference call will be SI International's President and CEO, Brad Antle, Executive Vice President and CFO, Ted Dunn, and Executive Vice President and Chief Marketing Officer, Leslee Belluchie. A question and answer session will be included to further discuss the results and the Company's future performance expectations. Interested parties should contact Alan Hill at 703- 234-6854 for dial-in information.

The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of SI International's web site, http://www.si-intl.com/. A replay of the webcast will be available on the SI International web site beginning two hours after the conclusion of the conference call. In addition, a replay of the conference is available by telephone beginning on Tuesday, July 29, 2008 at 12:00 PM ET through Tuesday, August 5, 2008 at 5:00 PM ET by calling 888-286-8010 and entering the conference passcode 57371365.

About SI International: SI International, a member of the Russell 2000 and S&P SmallCap 600 indices, is a provider of information technology and network solutions (IT) primarily to the Federal government. The Company combines technology and industry expertise to provide a full spectrum of state-of-the- practice solutions and services, from design and development to documentation and operations, to assist clients in achieving their missions. SI International is ranked as the 42nd largest Federal Prime IT Contractor by Washington Technology and has approximately 4,500 employees. More information about SI International can be found at http://www.si-intl.com/.

The above-referenced statements may contain forward-looking statements that are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals, financial information or reporting, and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward- looking statements may involve a number of risks and uncertainties, which are described in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties include: changes in Federal government (or other applicable) procurement laws, regulations, policies and budgets; risks relating to contract performance; changes in the competitive environment (including as a result of bid protests); and the important factors discussed in the Risk Factors section of the annual report on Form 10-K filed by the Company with the Securities and Exchange Commission and available directly from the Commission at http://www.sec.gov/. The actual results may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

SI International, Inc. and Subsidiaries Consolidated Statements of Operations (amounts in thousands except per share data; unaudited) Three Months Ended Six Months Ended --------------------- -------------------- June 28, June 30, June 28, June 30, 2008 2007 2008 2007 --------- --------- --------- --------- Revenue $142,832 $118,794 $277,189 $232,494 Operating costs and expenses: Cost of services 94,476 73,733 182,738 144,625 Selling, general and administrative 38,126 33,648 74,573 65,716 Depreciation and amortization 1,041 822 2,135 1,616 Amortization of intangible assets 1,075 769 2,190 1,517 --------- --------- --------- --------- Total operating expenses 134,718 108,972 261,636 213,474 --------- --------- --------- --------- Income from operations 8,114 9,822 15,553 19,020 Interest expense, net 1,637 1,572 3,358 2,969 --------- --------- --------- --------- Income before provision for income taxes 6,477 8,250 12,195 16,051 Provision for income taxes 2,652 3,226 4,939 6,293 --------- --------- --------- --------- Net income $3,825 $5,024 $7,256 $9,758 ========= ========= ========= ========= Earnings per common share: Basic net income per common share $0.29 $0.39 $0.55 $0.75 ========= ========= ========= ========= Diluted net income per common share $0.29 $0.38 $0.55 $0.74 ========= ========= ========= ========= Basic weighted-average shares outstanding 13,089 13,011 13,094 12,994 ========= ========= ========= ========= Diluted weighted-average shares outstanding 13,313 13,302 13,313 13,276 ========= ========= ========= ========= EBITDA (1) $10,718 $11,726 $19,964 $22,669 Notes: (1) EBITDA is defined as GAAP net income plus interest expense net, income taxes, depreciation and amortization, stock compensation, and amortization of intangible assets. EBITDA as calculated by us may be calculated differently than EBITDA for other companies. We have provided EBITDA because we believe it is a commonly used measure of financial performance in comparable companies and is provided to help investors evaluate companies on a consistent basis, as well as to enhance an understanding of our operating results. EBITDA should not be construed as either an alternative to net income as an indicator of our operating performance or as an alternative to cash flows as a measure of liquidity. Reconciliation of Net Income to EBITDA is as follows: Three Months Ended Six Months Ended ---------------------------------------- June 28, June 30, June 28, June 30, 2008 2007 2008 2007 ---------------------------------------- Net income $3,825 $5,024 $7,256 $9,758 Interest expense, net 1,637 1,572 3,358 2,969 Provision for income taxes 2,652 3,226 4,939 6,293 Depreciation and amortization 1,041 822 2,135 1,616 Stock compensation 488 313 876 516 Amortization of intangible assets 1,075 769 2,190 1,517 ======================================== EBITDA $10,718 $11,726 $19,964 $22,669 SI International, Inc. Revenue Segmentation Data (amounts in thousands; unaudited) Three Months ended ----------------------------------------------------- June 28, 2008 June 30, 2007 Growth ------------- ------------- ------ $ % $ % $ % Core Federal government 141,737 99.2 % 116,954 98.5 % 24,783 21.2 % Commercial and other 1,095 0.8 % 1,840 1.5 % (745)(40.5)% ----------------------------------------------------- Total revenue 142,832 100.0 % 118,794 100.0 % 24,038 20.2 % Prime contracts 122,313 85.6 % 93,194 78.5 % 29,119 31.2 % Subcontract 20,519 14.4 % 25,600 21.5 % (5,081)(19.8)% ----------------------------------------------------- Total revenue 142,832 100.0 % 118,794 100.0 % 24,038 20.2 % Cost reimbursable 39,932 28.0 % 34,561 29.1 % 5,371 15.5 % Time and materials 49,250 34.5 % 41,254 34.7 % 7,996 19.4 % Fixed price 53,650 37.5 % 42,979 36.2 % 10,671 24.8 % ----------------------------------------------------- Total revenue 142,832 100.0 % 118,794 100.0 % 24,038 20.2 % Department of Defense 60,759 42.5 % 53,569 45.1 % 7,190 13.4 % Federal civilian agencies 80,978 56.7 % 63,385 53.4 % 17,593 27.8 % Commercial entities 1,095 0.8 % 1,840 1.5 % (745)(40.5)% ----------------------------------------------------- Total revenue 142,832 100.0 % 118,794 100.0 % 24,038 20.2 % Major contracts: C4I2TSR 18,934 13.3 % 19,504 16.4 % (570) (2.9)% All Other 123,898 86.7 % 99,290 83.6 % 24,608 24.8 % ----------------------------------------------------- Total revenue 142,832 100.0 % 118,794 100.0 % 24,038 20.2 % SI International, Inc. and Subsidiaries Consolidated Balance Sheets (amounts in thousands, except share data; unaudited) June 28, December 29, 2008 2007 --------- ------------ Assets Current assets: Cash and cash equivalents $14,433 $13,129 Accounts receivable, net 111,333 117,098 Other current assets 13,023 12,511 --------- --------- Total current assets 138,789 142,738 Property and equipment, net 14,686 15,080 Intangible assets, net 24,392 26,583 Other assets 11,613 11,572 Goodwill 265,474 265,474 --------- --------- Total assets $454,954 $461,447 ========= ========= Liabilities and stockholders' equity Current liabilities: Current portion of long-term debt $-- $1,004 Note payable - line of credit -- 20,000 Accounts payable 20,286 26,000 Accrued expenses and other current liabilities 41,801 35,172 --------- --------- Total current liabilities 62,087 82,176 --------- --------- Long-term debt, net of current portion 101,750 93,261 Deferred income tax, net 14,160 14,241 Other long-term liabilities 10,374 11,066 Stockholders' equity: Common stock-$0.01 par value per share; 50,000,000 shares authorized; 13,110,542 and 13,087,164 shares issued and outstanding as of June 28, 2008 and December 29, 2007, respectively 131 131 Additional paid-in capital 189,641 188,308 Accumulated other comprehensive loss (1,271) (1,094) Treasury stock - 109,264 shares held at June 28, 2008 (2,532) -- Retained earnings 80,614 73,358 --------- --------- Total stockholders' equity 266,583 260,703 --------- --------- Total liabilities and stockholders' equity $454,954 $461,447 ========= ========= SI International, Inc. and Subsidiaries Consolidated Statements of Cash Flows (amounts in thousands; unaudited) Six Months Ended -------------------- June 28, June 30, 2008 2007 -------------------- Cash flows from operating activities: Net income $ 7,256 $ 9,758 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,135 1,616 Amortization of intangible assets 2,190 1,517 Stock-based compensation 876 516 Loss on disposal of fixed assets ---- 39 Amortization of deferred financing costs 260 467 Changes in operating assets and liabilities, net of effect of acquisitions: Accounts receivable, net 5,765 590 Other current assets (472) (635) Other assets 594 (5,173) Accounts payable and accrued expenses 175 621 Other long-term liabilities (152) 1,536 -------------------- Net cash provided by operating activities 18,627 10,852 Cash flows from investing activities: Purchase of property and equipment (1,741) (3,770) Proceeds from sale of marketable securities ---- 43,250 Purchase of marketable securities ---- (43,250) Former owner payable ---- (6,000) Cash paid for business acquisitions, net of cash assumed ---- (60,162) -------------------- Net cash used in investing activities (1,741) (69,932) Cash flows from financing activities: Borrowings under line of credit 56,750 25,000 Repayments under line of credit (35,000) ---- Proceeds from exercise of stock options 361 912 Income tax benefit for stock option exercises 97 142 Proceeds from long-term debt 60,000 25,000 Repayments of long-term debt (94,265) (377) Repurchase of common stock (2,532) ---- Payments of debt issuance costs (935) (108) Repayments of capital lease obligations (58) (54) -------------------- Net cash (used in) provided by financing activities (15,582) 50,515 -------------------- Net change in cash and cash equivalents 1,304 (8,565) Cash and cash equivalents, beginning of period 13,129 19,457 -------------------- Cash and cash equivalents, end of period $ 14,433 $ 10,892 ==================== Supplemental disclosures of cash flow information: Cash payments for interest $ 3,090 $ 2,875 Cash payments for income taxes $ 4,853 $ 6,427 Contact: Alan Hill SI International, Inc. 703-234-6854 alan.hill@si-intl.com

SI International, Inc.

CONTACT: Alan Hill of SI International, Inc., +1-703-234-6854,
alan.hill@si-intl.com

Web site: http://www.si-intl.com/

Rogers Reports Second Quarter 2008 Financial and Operating ResultsConsolidated Revenue Grows 11% to $2.8 Billion, Adjusted Operating Profit Increases 17% to $1.1 Billion, and Net Income Increases to $301 Million;Wireless Maintains Strong Postpaid Net Subscriber Additions, with ARPU up 4% and Churn Down to 1.06%;Cable Drives Continued Growth in Net Additions of Revenue Generating Units and Margin Expansion Continues

TORONTO, July 29 /PRNewswire-FirstCall/ -- Rogers Communications Inc. today announced its consolidated financial and operating results for the three and six months ended June 30, 2008.

Financial highlights are as follows: ------------------------------------------------------------------------- Three months ended Six months ended (In millions of June 30, June 30, dollars, except ------------------------------------------------- per share amounts) 2008 2007 % Chg 2008 2007 % Chg ------------------------------------------------------------------------- Operating revenue $ 2,803 $ 2,527 11 $ 5,412 $ 4,825 12 Operating profit(1) 996 431 131 2,091 1,229 70 Net income (loss) 301 (56) n/m 645 114 n/m Net income (loss) per share: Basic $ 0.47 $ (0.09) n/m $ 1.01 $ 0.18 n/m Diluted 0.47 (0.09) n/m 1.01 0.18 n/m As adjusted:(2) Operating profit(1) $ 1,089 $ 930 17 $ 2,067 $ 1,744 19 Net income 364 299 22 631 485 30 Net income per share: Basic $ 0.57 $ 0.47 21 $ 0.99 $ 0.76 30 Diluted 0.57 0.47 21 0.99 0.75 32 ------------------------------------------------------------------------- (1) Operating profit should not be considered as a substitute or alternative for operating income or net income, in each case determined in accordance with Canadian generally accepted accounting principles ("GAAP"). See the section entitled "Reconciliation of Net Income to Operating Profit and Adjusted Operating Profit for the Period" for a reconciliation of operating profit and adjusted operating profit to operating income and net income under Canadian GAAP and the section entitled "Key Performance Indicators and Non- GAAP Measures". (2) For details on the determination of the 'as adjusted' amounts, which are non-GAAP measures, see the sections entitled "Supplementary Information" and "Key Performance Indicators and Non-GAAP Measures". The 'as adjusted' amounts presented above are reviewed regularly by management and our Board of Directors in assessing our performance and in making decisions regarding the ongoing operations of the business and the ability to generate cash flows. The 'as adjusted' amounts exclude (i) the impact of a one-time non-cash charge related to the introduction of a cash settlement feature for employee stock options; (ii) stock-based compensation (recovery) expense; (iii) integration and restructuring expenses; (iv) an adjustment for Canadian Radio-television and Telecommunications Commission ("CRTC") Part II fees related to prior periods resulting from a recent Federal Court of Appeal decision; and (v) in respect of net income and net income per share, loss on repayment of long-term debt and the related income tax impact of the above amounts. Highlights of the second quarter of 2008 include the following: - Generated continued double-digit growth in quarterly revenue and adjusted operating profit of 11% and 17%, respectively, while net income increased to $301 million (or to $364 million on an adjusted basis), and adjusted operating profit less interest expense and PP&E additions rose 20% to $475 million. - Wireless subscriber postpaid net additions were 92,000, while postpaid subscriber monthly churn was reduced to 1.06% from 1.15% in the second quarter of 2007. Wireless postpaid monthly ARPU (average revenue per user) increased 4% year-over-year to $75.48 driven in part by the 34% growth in data revenue to $224 million, representing 15.5% of network revenue. - Cable ended the quarter with 745,000 residential voice-over-cable telephony subscriber lines, reflecting net additions of 41,000 lines for the quarter, of which approximately 13,000 were migrations from the circuit-switched platform. This brings the total penetration of cable telephony customers to 32% of basic cable subscribers up from 22% at June 30, 2007. - Cable's Internet subscriber base grew by 13,000, in the seasonally slow quarter, to 1.5 million, and digital cable households increased by 23,000 to reach 1.4 million. During the quarter, Cable increased the download speeds for its Internet access services, and also implemented monthly usage allowances and monitoring tools, while usage-based billing on a per gigabyte basis for very heavy usage customers was phased in. - High-definition TV ("HD") subscribers at Cable were up 59% from June 30, 2007 to June 30, 2008, from 287,000 to 455,000, while the number of quarterly purchases of Rogers on Demand product from the second quarter 2007 to the second quarter 2008 increased by approximately 20%. - Wireless announced that it would launch the highly anticipated Apple iPhone 3G in Canada on July 11, 2008 under both its Rogers Wireless and Fido brands with a wide variety of service plans available for voice and data combined. - Canada's Advanced Wireless Services ("AWS") wireless spectrum auction ended on July 21, 2008 following 39 days and 331 rounds of bidding with bids totalling $4.25 billion. Wireless acquired 20 MHz of spectrum across all 13 provinces/territories with winning bids that totalled approximately $1.0 billion representing approximately $1.67 per MHZ pop. - Wireless announced the launch of its Fido UNO and Rogers Home Calling Zone plans that allow customers to make unlimited calls within their home using their wireless phone via a home WiFi broadband connection. This converged service utilizes technology known as Unlicensed Mobile Access ("UMA") and provides Rogers customers the convenience of having one phone, one number, one address book and one voicemail which they can use inside and outside of their home. - Cable announced that its agreement to acquire Aurora Cable TV Limited ("Aurora Cable") had been approved by the CRTC and the transaction was completed on June 12, 2008. Aurora Cable passes approximately 26,000 homes and provides cable television, Internet and telephony services in the Town of Aurora and the community of Oak Ridges, in Richmond Hill, Ontario. - Cable and Media recorded charges of approximately $30 million and $7 million, respectively, for CRTC Part II fees relating to the period from September 1, 2006 to March 31, 2008 ($25 million and $6 million for the period September 1, 2006 to December 31, 2007 for Cable and Media, respectively) as a result of an unfavourable Federal Appeal court ruling. Rogers will continue to record these fees on a prospective basis, including $5 million and $2 million recorded in the second quarter of 2008, for Cable and Media, respectively. An application for leave to appeal has been filed with the Supreme Court of Canada although there is no assurance that the court will overturn this decision.

"The results for the second quarter reflect a good balance of continued healthy subscriber growth, double-digit revenue and operating profit growth, with continued margin expansion," said Ted Rogers, President and CEO of Rogers Communications Inc. "While the competitive landscapes in which our businesses operate are constantly evolving, our unique combination of leading networks, powerful brand and distribution, and leadership in service and bundling capabilities positions Rogers uniquely for continued growth and success well into the future."

MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008

This management's discussion and analysis ("MD&A"), which is current as of July 28, 2008, should be read in conjunction with our Second Quarter 2008 Interim Unaudited Consolidated Financial Statements and Notes thereto, our 2007 Annual MD&A and our 2007 Annual Audited Consolidated Financial Statements and Notes thereto. The financial information presented herein has been prepared on the basis of Canadian generally accepted accounting principles ("GAAP") for interim financial statements and is expressed in Canadian dollars. Please refer to Note 26 to our 2007 Annual Audited Consolidated Financial Statements for a summary of the differences between Canadian GAAP and United States ("U.S.") GAAP for the year ended December 31, 2007.

In this MD&A, the terms "we", "us", "our", "Rogers" and "the Company" refer to Rogers Communications Inc. and our subsidiaries, which are reported in the following segments:

- "Wireless", which refers to our wireless communications operations, including Rogers Wireless Partnership ("RWP") and Fido Solutions Inc.; - "Cable" (formerly "Cable and Telecom"), which refers to our wholly- owned cable television subsidiaries, including Rogers Cable Communications Inc. ("RCCI"); and - "Media", which refers to our wholly-owned subsidiary Rogers Media Inc. and its subsidiaries, including Rogers Broadcasting, which owns a group of 53 radio stations, the Citytv television network, the Rogers Sportsnet television network, The Shopping Channel, the OMNI television stations, channel m TV, a multicultural television station acquired on April 30, 2008, and Canadian specialty channels including Biography and G4TechTV; Rogers Publishing, which publishes approximately 70 magazines and trade journals; and Rogers Sports Entertainment, which owns the Toronto Blue Jays Baseball Club ("Blue Jays") and the Rogers Centre. Media also holds ownership interests in entities involved in specialty television content, television production and broadcast sales.

"RCI" refers to the legal entity Rogers Communications Inc., excluding our subsidiaries.

Throughout this MD&A, percentage changes are calculated using numbers rounded to which they appear.

SUMMARIZED CONSOLIDATED FINANCIAL RESULTS ------------------------------------------------------------------------- Three months ended Six months ended (In millions of June 30, June 30, dollars, except ------------------------------------------------- per share amounts) 2008 2007 % Chg 2008 2007 % Chg ------------------------------------------------------------------------- Operating revenue Wireless $ 1,522 $ 1,364 12 $ 2,953 $ 2,595 14 Cable Cable Operations 718 646 11 1,413 1,266 12 RBS 130 146 (11) 263 291 (10) Rogers Retail 92 93 (1) 192 184 4 Corporate items and eliminations (2) (4) (50) (5) (5) - ------------------------------------------------- 938 881 6 1,863 1,736 7 Media 409 348 18 716 614 17 Corporate items and eliminations (66) (66) - (120) (120) - ------------------------------------------------- Total 2,803 2,527 11 5,412 4,825 12 ------------------------------------------------- ------------------------------------------------- Adjusted operating profit (loss)(1) Wireless 769 664 16 1,474 1,245 18 Cable Cable Operations 293 243 21 571 477 20 RBS 16 4 n/m 33 (3) n/m Rogers Retail (5) (4) 25 (2) (3) (33) ------------------------------------------------- 304 243 25 602 471 28 Media 52 45 16 53 64 (17) Corporate items and eliminations (36) (22) 64 (62) (36) 72 ------------------------------------------------- Adjusted operating profit(1) 1,089 930 17 2,067 1,744 19 Stock option plan amendment(2) - (452) n/m - (452) n/m Stock-based compensation recovery (expense)(2) (53) (32) 66 63 (47) n/m Integration and restructuring expenses(3) (3) (15) (80) (8) (16) (50) Adjustment for CRTC Part II fees decision(4) (37) - n/m (31) - n/m ------------------------------------------------- Operating profit(1) 996 431 131 2,091 1,229 70 Other income and expense, net(5) 695 487 43 1,446 1,115 30 ------------------------------------------------- Net income (loss) $ 301 $ (56) n/m $ 645 $ 114 n/m ------------------------------------------------- ------------------------------------------------- Net income (loss) per share: Basic $ 0.47 $ (0.09) n/m $ 1.01 $ 0.18 n/m Diluted 0.47 (0.09) n/m 1.01 0.18 n/m As adjusted:(1) Net income $ 364 $ 299 22 $ 631 $ 485 30 Net income per share: Basic $ 0.57 $ 0.47 21 $ 0.99 $ 0.76 30 Diluted 0.57 0.47 21 0.99 0.75 32 Additions to property, plant and equipment ("PP&E")(1) Wireless $ 251 $ 174 44 $ 414 $ 406 2 Cable Cable Operations 185 163 13 306 288 6 RBS 10 17 (41) 14 40 (65) Rogers Retail 4 4 - 7 7 - ------------------------------------------------- 199 184 8 327 335 (2) Media 17 11 55 38 18 111 Corporate 14 12 17 23 16 44 ------------------------------------------------- Total $ 481 $ 381 26 $ 802 $ 775 3 ------------------------------------------------- ------------------------------------------------------------------------- (1) As defined. See the sections entitled "Supplementary Information" and "Key Performance Indicators and Non-GAAP Measures". (2) See the section entitled "Stock-based Compensation". (3) Costs incurred relate to the integration of Call-Net Enterprises Inc. ("Call-Net") and Futureway Communications Inc. ("Futureway"), the restructuring of Rogers Business Solutions ("RBS") and the closure of certain Rogers Retail stores. (4) Relates to an adjustment for CRTC Part II fees related to prior periods resulting from a recent Federal Court of Appeal decision. See the section entitled "Government Regulation and Regulatory Developments" for further details. (5) See the section entitled "Reconciliation of Net Income to Operating Profit and Adjusted Operating Profit for the Period". n/m: not meaningful.

For discussions of the results of operations of each of these segments, refer to the respective segment sections of this MD&A.

Reconciliation of Net Income to Operating Profit and Adjusted Operating Profit for the Period

The items listed below represent the consolidated income and expense amounts that are required to reconcile net income as defined under Canadian GAAP to the non-GAAP measures operating profit and adjusted operating profit for the period. See the "Supplementary Information" section for a full reconciliation to adjusted operating profit, adjusted net income, and adjusted net income per share. For details of these amounts on a segment-by-segment basis and for an understanding of intersegment eliminations on consolidation, the following section should be read in conjunction with Note 2 to the Unaudited Interim Consolidated Financial Statements entitled "Segmented Information".

------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, ------------------------------------------------- (In millions of dollars) 2008 2007 % Chg 2008 2007 % Chg ------------------------------------------------------------------------- Net income (loss) $ 301 $ (56) n/m $ 645 $ 114 n/m Income tax expense (recovery) 153 (87) n/m 323 (1) n/m Other income, net (5) (3) 67 (13) (4) n/m Change in the fair value of derivative instruments (5) 22 n/m (1) 26 n/m Loss on repayment of long-term debt - 47 (100) - 47 (100) Foreign exchange loss (gain) (1) (42) (98) 6 (52) n/m Interest on long-term debt 133 152 (13) 271 301 (10) ------------------------------------------------- ------------------------------------------------- Operating income 576 33 n/m 1,231 431 186 Depreciation and amortization 420 398 6 860 798 8 ------------------------------------------------- Operating profit 996 431 131 2,091 1,229 70 Stock option plan amendment - 452 (100) - 452 (100) Stock-based compensation (recovery) expense 53 32 66 (63) 47 n/m Integration and restructuring expenses 3 15 (80) 8 16 (50) Adjustment for CRTC Part II fees decision 37 - n/m 31 - n/m ------------------------------------------------------------------------- ------------------------------------------------------------------------- Adjusted operating profit $ 1,089 $ 930 17 $ 2,067 $ 1,744 19 ------------------------------------------------------------------------- Net Income (Loss) and Net Income (Loss) Per Share

We recorded net income of $301 million for the three months ended JuneÂ 30, 2008, or basic and diluted earnings per share of $0.47, compared to net loss of $56 million, or basic and diluted loss per share of $0.09, in the corresponding period in 2007. For the six months ended June 30, 2008, we recorded net income of $645 million, or basic and diluted earnings per share of $1.01, compared to net income of $114 million, or basic and diluted earnings per share of $0.18, in the corresponding period of 2007.

Income Tax Expense

Due to our non-capital loss carryforwards, our income tax expense for the three and six months ended June 30, 2008 and 2007, substantially represents non-cash income taxes. As illustrated in the table below, our effective income tax rates for the three and six months ended June 30, 2008 were 33.7% and 33.4%, respectively. The effective income tax rates for the three and six months ended June 30, 2007 were 60.8% and (0.9%), respectively. The effective income tax rates differed from the 2007 statutory income tax rate of 35.8% primarily due to the $25 million future income tax recovery recorded with respect to the Videotron Ltee termination payment to reverse a charge recorded by us in 2006 (see Note 7 of our 2007 Annual Audited Consolidated Financial Statements). In addition, in 2007 we recorded a future income tax recovery associated with the reclassification of contributed surplus upon the introduction of a cash settlement feature for employee stock options.

------------------------------------------------------------------------- Three months ended Six months ended ----------------------------------------- June 30, June 30, June 30, June 30, (In millions of dollars) 2008 2007 2008 2007 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Statutory income tax rate 32.7% 35.8% 32.7% 35.8% ------------------------------------------------------------------------- Income (loss) before income taxes $ 454 $ (143) $ 968 $ 113 Income tax expense (recovery) at statutory income tax rate on income before income taxes $ 148 $ (51) $ 316 $ 40 Increase (decrease) in income taxes resulting from: Stock-based compensation 2 (24) 3 (19) Videotron Ltee termination payment - (25) - (25) Change in the valuation allowance for future income taxes 2 - 3 - Other items 1 13 1 3 ---------------------------------------- Income tax expense (recovery) $ 153 $ (87) $ 323 $ (1) ------------------------------------------------------------------------- Effective income tax rate 33.7% 60.8% 33.4% (0.9%) -------------------------------------------------------------------------

In the third quarter of 2008, we anticipate that we will record the benefit of an income tax credit of approximately $70 million arising from the harmonization of the Ontario provincial income tax system with the Canadian federal income tax system. The resulting income tax credit will be available to reduce future Ontario income taxes over the next five years.

Foreign Exchange Loss (Gain)

During the three months ended June 30, 2008, the Canadian dollar strengthened by 0.9 cents versus the U.S. dollar resulting in a foreign exchange gain of $1 million. During the six months ended June 30, 2008, the Canadian dollar weakened by 3.1 cents versus the U.S. dollar. This resulted in a foreign exchange loss of $6 million. During the corresponding periods of 2007, the Canadian dollar strengthened by 9.0 cents and 10.2 cents, respectively, versus the U.S. dollar. This resulted in foreign exchange gains of $42 million and $52 million, respectively, during the three and six months ended June 30, 2007 primarily related to our U.S. dollar-denominated long-term debt not hedged for accounting purposes.

Interest on Long-Term Debt

The year-over-year decreases in interest expense are primarily due to the $501 million decrease in long-term debt at June 30, 2008 compared to June 30, 2007, including the impact of cross-currency interest rate exchange agreements.

This decrease in debt was the result of the $500 million decrease in bank debt at June 30, 2008 compared to June 30, 2007. In addition, the prior year interest expense included interest on several debt issues repaid during the 2007 period, including the February 2007 repayment at maturity of Cable's $450 million 7.60% Senior Notes due 2007, the May 2007 redemption of Wireless' US$550 million Floating Rate Senior Notes due 2010, and the June 2007 redemption of Wireless' US$155 million 9.75% Senior Debentures due 2016.

Operating Income

The year-over-year increases in operating income reflect the impact of a one-time charge of $452 million recorded in the second quarter of 2007 related to the introduction of a cash settlement feature for employee stock options, combined with the growth in revenue of $276 million and $587 million, exceeding the growth in operating expenses, excluding the one-time charge of $452 million, of $185 million and $239 million, in the three and six months ended June 30, 2008, respectively. See the section entitled "Segment Review" for a detailed discussion of respective segment results.

Depreciation and Amortization Expense

The increase in depreciation and amortization expense for the three and six months ended June 30, 2008, compared to the corresponding periods of the prior year, reflects an increase in depreciation on PP&E expenditures.

Stock-based Compensation

On May 28, 2007, our stock option plans were amended to attach cash settled share appreciation rights ("SARs") to all new and previously granted options. As a result, all outstanding stock options were classified as liabilities and are now carried at their intrinsic value, as adjusted for vesting, measured as the difference between the current stock price and the option exercise price. The intrinsic value of the liability is now marked to market each period and is amortized to expense over the period in which the related services are rendered, which is usually the graded vesting period, or, as applicable, over the period to the date an employee is eligible to retire, whichever is shorter.

A summary of stock-based compensation (recovery) expense is as follows: ------------------------------------------------------------ Stock-based Compensation Expense (Recovery) Included in Operating, General and Administrative Expenses ------------- One-time ---------------------------------------------- Non-cash Three months ended Six months ended Charge Upon June 30, June 30, (In millions Adoption ---------------------------------------------- of dollars) in Q2 2007 2008 2007 2008 2007 ------------------------------------------------------------------------- Wireless $ 46 $ 8 $ 4 $ (2) $ 7 Cable 113 11 7 (22) 10 Media 84 9 4 (11) 6 Corporate 209 25 17 (28) 24 ------------------------------------------------------------ $ 452 $ 53 $ 32 $ (63) $ 47 -------------------------------------------------------------------------

At June 30, 2008, we have a liability of $366 million related to stock-based compensation recorded at its intrinsic value, including stock options, restricted share units and deferred share units. In the three and six months ended June 30, 2008, $39 million and $60 million, respectively, was paid to option holders upon exercise of options using the SAR feature, including stock options and restricted share units.

Adjusted Operating Profit

Wireless, Cable and Media all contributed to the increase in adjusted operating profit for the three months ended June 30, 2008 compared to the three months ended June 30, 2007. For the six months ended June 30, 2008, Wireless and Cable contributed to the increase in adjusted operating profit, offset by a decrease in Media's adjusted operating profit, compared to the six months ended June 30, 2007. Refer to the individual segment discussions for details of the respective increases in adjusted operating profit.

For the three months ended June 30, 2008, adjusted operating profit increased to $1,089 million, from $930 million in the corresponding period of the prior year. Adjusted operating profit for the three months ended June 30, 2008 and 2007, respectively, excludes: (i) stock-based compensation expense of $53 million and $32 million; (ii) the impact of a one-time non-cash charge upon adoption of $452 million resulting from the introduction of a cash settlement feature for employee stock options in the three months ended June 30, 2007; (iii) integration and restructuring expenses of $3 million and $15 million; and (iv) an adjustment of CRTC Part II fees related to prior periods resulting from a recent Federal Court of Appeal decision of $37 million for the three months ended June 30, 2008.

For the six months ended June 30, 2008, adjusted operating profit increased to $2,067 million, from $1,744 million in the corresponding period of the prior year. Adjusted operating profit for the six months ended June 30, 2008 and 2007, respectively, excludes: (i) stock-based compensation (recovery) expense of $(63) million and $47 million; (ii) the impact of a one-time non-cash charge upon adoption of $452 million resulting from the introduction of a cash settlement feature for employee stock options in the six months ended June 30, 2007; (iii) integration and restructuring expenses of $8 million and $16 million; and (iv) an adjustment of CRTC Part II fees related to prior periods resulting from a recent Federal Court of Appeal decision of $31Â million for the six months ended June 30, 2008.

For details on the determination of adjusted operating profit, which is a non-GAAP measure, see the sections entitled "Supplementary Information" and "Key Performance Indicators and Non-GAAP Measures".

SEGMENT REVIEW WIRELESS -------- Summarized Wireless Financial Results ------------------------------------------------------------------------- Three months ended Six months ended (In millions of June 30, June 30, dollars, except ------------------------------------------------- margin) 2008 2007 % Chg 2008 2007 % Chg ------------------------------------------------------------------------- Operating revenue Postpaid $ 1,371 $ 1,207 14 $ 2,665 $ 2,311 15 Prepaid 71 67 6 137 128 7 One-way messaging 3 3 - 6 7 (14) ------------------------------------------------- Network revenue 1,445 1,277 13 2,808 2,446 15 Equipment sales 77 87 (11) 145 149 (3) ------------------------------------------------- Total operating revenue 1,522 1,364 12 2,953 2,595 14 ------------------------------------------------- Operating expenses before the undernoted Cost of equipment sales 156 173 (10) 301 317 (5) Sales and marketing expenses 151 146 3 291 286 2 Operating, general and administrative expenses 446 381 17 887 747 19 ------------------------------------------------- 753 700 8 1,479 1,350 10 ------------------------------------------------- Adjusted operating profit(1)(2) 769 664 16 1,474 1,245 18 Stock option plan amendment(3) - (46) n/m - (46) n/m Stock-based compensation recovery (expense)(3) (8) (4) 100 2 (7) n/m ------------------------------------------------- Operating profit(1) $ 761 $ 614 24 $ 1,476 $ 1,192 24 ------------------------------------------------- ------------------------------------------------- Adjusted operating profit margin as % of network revenue(1) 53.2% 52.0% 52.5% 50.9% Additions to PP&E(1) $ 251 $ 174 44 $ 414 $ 406 2 ------------------------------------------------------------------------- (1) As defined. See the sections entitled "Key Performance Indicators and Non-GAAP Measures" and "Supplementary Information". (2) Adjusted operating profit includes a loss of $3 million and $9 million, and $8 million and $15 million, for the three and six months ended June 30, 2007 and 2008, respectively, related to the Inukshuk wireless broadband initiative. (3) See the section entitled "Stock-based Compensation". Summarized Wireless Subscriber Results ------------------------------------------------------------------------- Three months ended Six months ended (Subscriber statistics June 30, June 30, in thousands, except ------------------------------------------------- ARPU, churn and usage) 2008 2007 Chg 2008 2007 Chg ------------------------------------------------------------------------- Postpaid Gross additions 283 322 (39) 576 608 (32) Net additions 92 133 (41) 188 228 (40) Adjustment to postpaid subscriber base(1) - (65) 65 - (65) 65 Total postpaid retail subscribers 6,102 5,561 541 Average monthly revenue per user ("ARPU")(2) $ 75.48 $ 72.65 $ 2.83 $ 73.95 $ 70.18 $ 3.77 Average monthly usage (minutes) 604 576 28 588 555 33 Monthly churn 1.06% 1.15% (0.09%) 1.08% 1.16% (0.08%) Prepaid Gross additions 149 156 (7) 282 300 (18) Net additions (losses) 8 5 3 (21) (3) (18) Adjustment to prepaid subscriber base(1) - (26) 26 - (26) 26 Total prepaid retail subscribers 1,403 1,351 52 ARPU(2) $ 16.86 $ 16.36 $ 0.50 $ 16.27 $ 15.58 $ 0.69 Monthly churn 3.39% 3.68% (0.29%) 3.60% 3.69% (0.09%) ------------------------------------------------------------------------- (1) During the second quarter of 2007, Wireless decommissioned its Time Division Multiple Access ("TDMA") and analog networks and simultaneously revised certain aspects of its subscriber reporting for data-only subscribers. The deactivation of the remaining TDMA subscribers and the change in subscriber reporting resulted in the removal of approximately 65,000 subscribers from Wireless' postpaid subscriber base and the removal of approximately 26,000 subscribers from Wireless' prepaid subscriber base. These adjustments are not included in the determination of postpaid or prepaid monthly churn. (2) As defined. See the section entitled "Key Performance Indicators and Non-GAAP Measures". As calculated in the "Supplementary Information" section. Wireless Network Revenue

The increase in network revenue for the three and six months ended June 30, 2008, respectively, compared to the corresponding periods of the prior year, was driven principally by the continued growth of Wireless' postpaid subscriber base and improvements in postpaid ARPU. The year-over-year increase in postpaid ARPU reflects the impact of higher wireless data revenue, as well as increased usage of long-distance and greater penetration of calling features.

Prepaid revenue increased as a result of both improved ARPU and the year-over-year growth in the subscriber base. The year-over-year improvement in prepaid ARPU is the result of both increased data usage and greater average minutes of voice usage resulting from more appealing prepaid offerings aimed at higher ARPU customers.

Wireless' success in the continued reduction in postpaid churn reflects targeted customer retention activities and continued enhancements in network coverage and quality.

The year-over-year reduction in the number of postpaid subscriber net additions reflects the unusually strong second quarter of 2007 during which wireless number portability ("WNP") became effective, increased competitive activity in the market and what we believe may have been a modest slowdown in overall wireless purchasing activity during the second quarter of 2008.

For the three and six months ended June 30, 2008, wireless data revenue increased by 34% and 40%, respectively, over the corresponding periods of 2007, to $224 million and $431 million, respectively. This increase in data revenue reflects the continued growth of text and multimedia messaging services, wireless Internet access, BlackBerry and other PDA devices, downloadable ring tones, music and games, and other wireless data services. For the three and six months ended June 30, 2008, data revenue represented approximately 15.5% and 15.3%, respectively, of total network revenue, compared to 13% in each of the corresponding periods of 2007.

Wireless Equipment Sales

The year-over-year decrease in revenue from equipment sales, including activation fees and net of equipment subsidies, reflects the lower volume of gross additions in the three and six months ended June 30, 2008 compared to the corresponding periods of the prior year.

Wireless Operating Expenses ------------------------------------------------------------------------- Three months ended Six months ended (In millions of dollars, June 30, June 30, except per subscriber ------------------------------------------------- statistics) 2008 2007 % Chg 2008 2007 % Chg ------------------------------------------------------------------------- Operating expenses Cost of equipment sales $ 156 $ 173 (10) $ 301 $ 317 (5) Sales and marketing expenses 151 146 3 291 286 2 Operating, general and administrative expenses 446 381 17 887 747 19 ------------------------------------------------- Operating expenses before the undernoted 753 700 8 1,479 1,350 10 Stock option plan amendment(1) - 46 n/m - 46 n/m Stock-based compensation (recovery) expense(1) 8 4 100 (2) 7 n/m ------------------------------------------------- Total operating expenses $ 761 $ 750 1 $ 1,477 $ 1,403 5 ------------------------------------------------- ------------------------------------------------- Average monthly operating expense per subscriber before sales and marketing expenses(2) $ 21.38 $ 20.28 5 $ 21.44 $ 20.24 6 Sales and marketing costs per gross subscriber addition(2) $ 439 $ 385 14 $ 425 $ 386 10 ------------------------------------------------------------------------- (1) See the section entitled "Stock-based Compensation". (2) As defined. See the section entitled "Key Performance Indicator and Non-GAAP Measures" section. As calculated in the "Supplementary Information" section. Average monthly operating expense per subscriber before sales and marketing expenses excludes stock-based compensation (recovery) expense.

Cost of equipment sales decreased for the three and six months ended June 30, 2008, compared to the corresponding periods of the prior year. This is primarily the result of the lower gross additions and corresponding level of handset subsidies.

The modest increase in sales and marketing expenses for the three and six months ended June 30, 2008 compared with the corresponding periods of the prior year, is primarily related to marketing efforts targeted at acquiring higher ARPU customers on longer term contracts.

During the second quarter, Wireless launched its Fido UNO and Rogers Home Calling Zone plans which allow customers to make unlimited calls within their home using their wireless phone via a home WiFi broadband connection. This converged service utilizes technology known as Unlicensed Mobile Access and provides Rogers' customers the convenience of having one phone, one number, one address book and one voicemail which they can use inside and outside of their home.

The year-over-year increases in operating, general and administrative expenses in the three and six months ended June 30, 2008, compared to the corresponding periods of 2007, were partially driven by growth in the Wireless subscriber base. In addition, there were higher costs to support increased usage of data and roaming services, as well as increases in customer care, credit and collection, and information technology costs as a result of the complexity of supporting more sophisticated services and devices. These costs were partially offset by savings related to operating and scale efficiencies across various functions.

Total retention spending, including subsidies on handset upgrades, was $96 million and $189 million, respectively, in the three and six months ended June 30, 2008, compared to $92 million and $191 million, respectively, in the corresponding periods of the prior year. Growth in the subscriber base has increased retention spending slightly in the three months ended June 30, 2008, compared to the corresponding period of the prior year. In the six months ended June 30, 2007, additional retention spending was incurred due to the transition of customers to Wireless' more advanced Global System for Mobile Communications ("GSM") network and devices from our older generation Time Division Multiple Access ("TDMA") network, which was decommissioned in May 2007, and the retention efforts surrounding the introduction of WNP in March 2007.

Wireless Adjusted Operating Profit

The strong year-over-year growth in adjusted operating profit was the result of the significant growth in network revenue. As a result, Wireless' adjusted operating profit margin on network revenue (which excludes equipment sales revenue) increased to 53.2% and 52.5%, respectively, for the three and six months ended June 30, 2008, compared to 52.0% and 50.9% in the corresponding periods of 2007, respectively.

Recent Developments

We have entered into a contract with Apple Canada Inc. to sell the iPhone 3G handsets throughout Canada. Pursuant to the agreement, we have a commitment to purchase a specified number of handsets, resulting in a minimum commitment of $150 million. We have agreed to subsidize the retail price of these handsets during the term of the agreement.

On June 9, 2008, Wireless announced that it would launch the Apple iPhone 3G in Canada. The launch took place on July 11, 2008, under both of our Rogers Wireless and Fido brands. A wide variety of service plans are available for voice and data combined, with all price plans requiring three year term contracts.

The iPhone 3G handsets are currently priced at $199 and $299 for the 8MB and 16MB models, respectively, which reflects significant handset subsidies that Wireless incurs for each unit sold. Depending on, among other things, the volume of iPhones that Wireless sells, it is likely that Wireless' cost of acquisition ("COA") per subscriber in the second half of 2008 will increase from the first two quarters of 2008. However, as it is anticipated that iPhone subscribers will generally subscribe to both voice and data service plans, the ARPU per iPhone 3G subscriber is also expected to be higher than Wireless' average postpaid ARPU that is generated from the majority of its other devices. As such, Wireless' ARPU levels are expected to be positively impacted over the term of the iPhone 3G subscriber contracts. See the sections entitled "Caution Regarding Forward-Looking Statements, Risks and Assumptions" and "2008 Guidance" below.

Wireless participated in the AWS spectrum auction in Canada which commenced on May 27, 2008 and concluded on July 21, 2008. In addition to the 90 MHz of AWS spectrum being auctioned, 10 MHz of 1900 PCS and 5 MHz of 1670 MHz were available through the auction process. As at July 21, 2008, Wireless' committed expenditure is $1.0 billion. Wireless is required to submit payment in full by September 3, 2008. Only when Industry Canada has received full payment and has reviewed and approved the required documentation pertaining to Canadian ownership and other matters, will the licences be granted.

Wireless Additions to Property, Plant and Equipment Wireless additions to PP&E are classified into the following categories: ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, ------------------------------------------------- (In millions of dollars) 2008 2007 % Chg 2008 2007 % Chg ------------------------------------------------------------------------- Additions to PP&E HSPA ("High-Speed Packet Access") $ 120 $ 74 62 $ 182 $ 223 (18) Network - capacity 52 42 24 93 83 12 Network - other 51 25 104 88 41 115 Information and technology and other 28 30 (7) 50 51 (2) Inukshuk - 3 (100) 1 8 (88) ------------------------------------------------- Total additions to PP&E $ 251 $ 174 44 $ 414 $ 406 2 -------------------------------------------------------------------------

Additions to Wireless PP&E reflect spending on network capacity, such as radio channel additions and network enhancing features. Additions to PP&E associated with the deployment of HSPA were mainly for the continued roll-out to markets across Canada and the upgrade to faster network throughput speeds. Other network-related PP&E additions included national site build activities, additional spending on test and monitoring equipment, network sectorization work, operating support system activities, investments in network reliability and renewal initiatives, and new product platforms. Information and technology and other initiatives include billing and back office system upgrades, and other facilities and equipment spending.

CABLE ----- Summarized Cable Financial Results ------------------------------------------------------------------------- Three months ended Six months ended (In millions of June 30, June 30, dollars, except ------------------------------------------------- margin) 2008(1) 2007(2) % Chg 2008(1) 2007(2) % Chg ------------------------------------------------------------------------- Operating revenue Cable Operations(3) $ 718 $ 646 11 $ 1,413 $ 1,266 12 RBS 130 146 (11) 263 291 (10) Rogers Retail 92 93 (1) 192 184 4 Intercompany eliminations (2) (4) (50) (5) (5) - ------------------------------------------------- Total operating revenue 938 881 6 1,863 1,736 7 ------------------------------------------------- Operating profit (loss) before the undernoted Cable Operations(3) 293 243 21 571 477 20 RBS 16 4 n/m 33 (3) n/m Rogers Retail (5) (4) 25 (2) (3) (33) ------------------------------------------------- Adjusted operating profit(4) 304 243 25 602 471 28 Stock option plan amendment(5) - (113) (100) - (113) (100) Stock-based compensation recovery (expense)(5) (11) (7) 57 22 (10) n/m Integration and restructuring expenses(6) (3) (15) (80) (8) (16) (50) Adjustment for CRTC Part II fees decision(7) (30) - n/m (25) - n/m ------------------------------------------------- Operating profit(4) $ 260 $ 108 141 $ 591 $ 332 78 ------------------------------------------------- ------------------------------------------------- Adjusted operating profit (loss) margin(4) Cable Operations(3) 40.8% 37.6% 40.4% 37.7% RBS 12.3% 2.7% 12.5% (1.0%) Rogers Retail (5.4%) (4.3%) (1.0%) (1.6%) Additions to PP&E(4) Cable Operations(3) $ 185 $ 163 13 $ 306 $ 288 6 RBS 10 17 (41) 14 40 (65) Rogers Retail 4 4 - 7 7 - ------------------------------------------------- Total additions to PP&E $ 199 $ 184 8 $ 327 $ 335 (2) ------------------------------------------------------------------------- (1) The operating results of Aurora Cable are included in Cable's results of operations from the date of acquisition on June 12, 2008. (2) The operating results of Futureway are included in Cable's results of operations from the date of acquisition on June 22, 2007. (3) Cable Operations segment includes Core Cable services, Internet services and Rogers Home Phone services. (4) As defined. See the sections entitled "Key Performance Indicators and Non-GAAP Measures" and "Supplementary Information". (5) See the section entitled "Stock-based Compensation". (6) Costs incurred relate to the integration of Call-Net and Futureway, the restructuring of RBS and the closure of certain Rogers Retail stores. (7) Relates to an adjustment for CRTC Part II fees related to prior periods resulting from a recent Federal Court of Appeal decision. See the section entitled "Government Regulation and Regulatory Developments" for further details.

The following segment discussions provide a detailed discussion of the Cable operating results.

CABLE OPERATIONS Summarized Financial Results ------------------------------------------------------------------------- Three months ended Six months ended (In millions of June 30, June 30, dollars, except ------------------------------------------------- margin) 2008 2007 % Chg 2008 2007 % Chg ------------------------------------------------------------------------- Operating revenue Core Cable $ 417 $ 384 9 $ 820 $ 757 8 Internet 171 152 13 337 295 14 Rogers Home Phone 130 110 18 256 214 20 ------------------------------------------------- Total Cable Operations operating revenue 718 646 11 1,413 1,266 12 ------------------------------------------------- Operating expenses before the undernoted Sales and marketing expenses 64 61 5 128 122 5 Operating, general and administrative expenses 361 342 6 714 667 7 ------------------------------------------------- 425 403 5 842 789 7 ------------------------------------------------- Adjusted operating profit(1) 293 243 21 571 477 20 Stock option plan amendment(2) - (106) (100) - (106) (100) Stock-based compensation recovery (expense)(2) (10) (7) 43 21 (10) n/m Integration and restructuring expenses(3) (1) (3) n/m (1) (4) n/m Adjustment for CRTC Part II fees decision(4) (30) - n/m (25) - n/m ------------------------------------------------- Operating profit(1) $ 252 $ 127 98 $ 566 $ 357 59 ------------------------------------------------- ------------------------------------------------- Adjusted operating profit margin(1) 40.8% 37.6% 40.4% 37.7% ------------------------------------------------------------------------- (1) As defined. See the sections entitled "Key Performance Indicators and Non-GAAP Measures" and "Supplementary Information". (2) See the section entitled "Stock-based Compensation". (3) Costs incurred relate to the integration of Call-Net and Futureway. (4) Relates to an adjustment for CRTC Part II fees related to prior periods resulting from a recent Federal Court of Appeal decision. See the section entitled "Government Regulation and Regulatory Developments" for further details. Summarized Subscriber Results ------------------------------------------------------------------------- Three months ended Six months ended (Subscriber statistics June 30, June 30, in thousands, ------------------------------------------------- except ARPU) 2008 2007(1) Chg 2008 2007(1) Chg ------------------------------------------------------------------------- Cable homes passed 3,648 3,515 133 Basic Cable Net losses(2) (13) (12) (1) (13) (11) (2) Total Basic Cable subscribers(3) 2,298 2,266 32 Core Cable ARPU(4) $ 60.73 $ 56.34 $ 4.39 $ 59.62 $ 55.45 $ 4.17 High-speed Internet Net additions 13 21 (8) 54 63 (9) Total Internet subscribers (residential)(3)(5) 1,534 1,364 170 Internet ARPU(4) $ 37.41 $ 36.87 $ 0.54 $ 37.19 $ 36.33 $ 0.86 Digital Cable Terminals, net additions 54 61 (7) 157 181 (24) Total terminals in service(3) 2,036 1,678 358 Households, net additions 23 34 (11) 72 103 (31) Total households(3) 1,431 1,237 194 Cable telephony subscriber lines Net additions and migrations(6)(7) 41 69 (28) 87 143 (56) Total Cable telephony subscriber lines(3) 745 509 236 Circuit-switched subscriber lines Net losses and migrations(6)(7) (22) (10) (12) (36) (27) (9) Total circuit-switched subscriber lines 298 344 (46) Revenue Generating Units ("RGUs")(8) Net additions 42 102 (60) 164 271 (107) Total RGUs 6,306 5,720 586 ------------------------------------------------------------------------- (1) Certain of the comparative figures have been reclassified to conform to the current year presentation. (2) Basic cable net losses for the six months ended June 30, 2008 reflect the impact of the conversion of a large municipal housing authority's cable TV arrangement with Rogers from a bulk to an individual tenant pay basis, which had the impact of reducing basic cable subscribers by approximately 5,000. (3) Included in total subscribers at June 30, 2008 are approximately 16,000 basic cable subscribers, 11,000 high-speed Internet subscribers, 8,000 terminals in service, 6,000 digital cable households and 2,000 cable telephony subscriber lines, representing 35,000 RGUs, acquired from Aurora Cable. These subscribers are not included in net additions for the three and six months ended June 30, 2008. (4) As defined. See the sections entitled "Key Performance Indicators and Non-GAAP Measures" and "Supplementary Information". (5) During the first quarter of 2008, a change in subscriber reporting resulted in the reclassification of approximately 4,000 high-speed Internet subscribers from RBS' broadband data circuits to Cable Operations' high-speed Internet subscriber base. These subscribers are not included in net additions for the six months ended June 30, 2008. (6) Included in total subscribers at June 30, 2007 are approximately 3,000 high-speed Internet subscribers and 21,000 circuit-switched telephony subscriber lines, representing 24,000 RGUs, acquired from Futureway. These subscribers are not included in net additions for the three and six months ended June 30, 2007. (7) Includes approximately 13,000 and 16,000 migrations from circuit- switched to cable telephony for the three and six months ended June 30, 2008, respectively, and includes approximately 14,000 and 32,000 migrations from circuit-switched to cable telephony for the three and six months ended June 30, 2007, respectively. (8) RGUs are comprised of basic cable subscribers, digital cable households, residential high-speed Internet subscribers and Rogers Home Phone subscribers. Core Cable Revenue

Within Cable Operations, the increase in Core Cable revenue for the three and six months ended June 30, 2008, compared to the corresponding periods of the prior year, reflects the growing penetration of our digital cable product offerings, including increased HDTV adoption and increasing usage of the On-Demand platform, combined with the year-over-year increase in the number of basic cable customers. In addition, the impact of the rate increases introduced in March 2008 and March 2007 contributed to the growth in revenue of both our digital and basic cable services.

From a subscriber perspective, the second quarter of each year is historically a seasonally slow period during which colleges and universities break for the summer and Cable experiences a relatively high number of seasonal disconnects as a result. Many of these subscribers will in turn reactivate their services during the third quarter coincident with the start of the new academic year. As Cable's penetration of digital cable, Internet and Home Phone continue to increase, the impact of seasonal disconnections increases as well and this effect contributed to the year-over-year decline in the number of net RGU additions at Cable this quarter.

Basic cable net losses for the three months ended June 30, 2008 reflect the normal seasonality, while the net losses for the six months ended June 30, 2008 were also negatively impacted by the conversion of a large municipal housing authority's cable TV arrangement with Rogers from a bulk to an individual tenant pay basis, which had the impact of reducing basic cable subscribers by approximately 5,000.

The digital cable subscriber base grew by 16% from June 30, 2007 to June 30, 2008. Digital penetration now represents 62% of basic cable households. Strong demand for HD and personal video recorder ("PVR") digital set-top box equipment and pay-per-use purchases, combined with the success of multi-product marketing campaigns, which package cable television, high-speed Internet and Rogers Home Phone services, contributed to the growth in the digital subscriber base of 23,000 and 72,000 households, respectively, in the three and six months ended June 30, 2008. HD subscribers at Cable were up 59% from June 30, 2007 to June 30, 2008, from 287,000 to 455,000.

Internet (Residential) Revenue

The increase in Internet revenues of 13% and 14% for the three and six months ended June 30, 2008 respectively, from the corresponding periods in 2007, primarily reflects the 12% year-over-year increase in the number of Internet subscribers combined with price increases to our Internet offerings.

While the three months ended June 30, 2008 were impacted to a greater extent than 2007 by seasonal disconnects, Internet penetration continued to increase and now stands at approximately 67% of basic cable households and 42% of homes passed with approximately 1.5 million total Internet customers.

Rogers Home Phone Revenue

The revenue growth of Rogers Home Phone was 18% and 20% for the three and six months ended June 30, 2008, respectively, due to an increased customer base from 853,000 at June 30, 2007 to 1,043,000 at June 30, 2008. Cable continues to focus on growing cable telephony while de-emphasizing circuit-switched phone lines. Cable telephony service lines experienced growth of 41,000 and 87,000 for the three and six months ended June 30, 2008, respectively. The net addition of service lines is lower than the comparable 2007 three and six month periods due to an increased competitive response by the Telco incumbents and fewer migrations from the circuit-switched to the cable telephony platform. Circuit-switched services incurred greater net line losses to date in 2008, compared to the corresponding periods of 2007, as Cable has chosen to reduce sales and marketing activity on this product. The cable telephony subscriber base grew 46% from June 30, 2007 to June 30, 2008. For the six months ended June 30, 2008, cable telephony subscribers represented 32% of basic cable subscribers and 22% of the homes passed in which cable telephony is available, compared to 22% and 16% respectively, for the six months ended June 30, 2007.

Cable Operations Operating Expenses

The increase in Cable's operating expenses for the three and six months ended June 30, 2008 compared to the corresponding periods of 2007 were primarily driven by the timing of promotional activities and the increases in digital cable, Internet and Rogers Home Phone subscriber bases, resulting in higher costs associated with programming content, customer care, technical service and network operations. Partially offsetting these increases was a reduction in costs associated with Cable's Internet product resulting from a renegotiated agreement with Yahoo! which became effective January 1, 2008, and overall cost efficiencies across various functions. The cost efficiency gains are due to achieving operational scale and improving the customer experience resulting in lower related costs.

Cable Operations Adjusted Operating Profit

The year-over-year growth in adjusted operating profit was primarily the result of growth in revenue and subscribers, combined with the reduced costs associated with Internet services. As a result, Cable Operations adjusted operating profit margins increased to 40.8% and 40.4%, respectively, for the three and six months ended June 30, 2008, compared to 37.6% and 37.7% in the respective corresponding periods in 2007.

Cable Operations' base of circuit-switched local telephony customers, which was acquired in July 2005 through the acquisition of Call-Net, is generally less capital intensive than its on-net cable telephony business but also generates lower margins. As a result, the inclusion of the circuit-switched local telephony business, which includes approximately 298,000 customers which have not been migrated to our cable network telephony platform, with Cable Operations' telephony business, has a dilutive impact on operating profit margins.

ROGERS BUSINESS SOLUTIONS Summarized Financial Results ------------------------------------------------------------------------- Three months ended Six months ended (In millions of June 30, June 30, dollars, except ------------------------------------------------- margin) 2008 2007 % Chg 2008 2007 % Chg ------------------------------------------------------------------------- RBS operating revenue $ 130 $ 146 (11) $ 263 $ 291 (10) ------------------------------------------------- Operating expenses before the undernoted Sales and marketing expenses 6 19 (68) 13 40 (68) Operating, general and administrative expenses 108 123 (12) 217 254 (15) ------------------------------------------------- 114 142 (20) 230 294 (22) ------------------------------------------------- Adjusted operating profit (loss)(1) 16 4 n/m 33 (3) n/m Stock option plan amendment(2) - (2) (100) - (2) (100) Stock-based compensation recovery(2) - - n/m 1 - n/m Integration and restructuring expenses(3) (2) (12) (83) (3) (12) (75) ------------------------------------------------- Operating profit (loss)(1) $ 14 $ (10) n/m $ 31 $ (17) n/m ------------------------------------------------- ------------------------------------------------- Adjusted operating profit (loss) margin(1) 12.3% 2.7% 12.5% (1.0%) ------------------------------------------------------------------------- (1) As defined. See the sections entitled "Key Performance Indicators and Non-GAAP Measures" and "Supplementary Information". (2) See the section entitled "Stock-based Compensation". (3) Costs incurred relate to the integration of Call-Net and the restructuring of Rogers Business Solutions. Summarized Subscriber Results ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, (Subscriber statistics ------------------------------------------------- in thousands) 2008 2007 Chg 2008 2007 Chg ------------------------------------------------------------------------- Local line equivalents(1)(2) Net additions (losses) (6) 7 (13) (22) 10 (32) Total local line equivalents 215 229 (14) Broadband data circuits(3) Net additions (losses) (1) 1 (2) (2) 1 (3) Total broadband data circuits 30 33 (3) ------------------------------------------------------------------------- (1) Local line equivalents include individual voice lines plus Primary Rate Interfaces ("PRIs") at a factor of 23 voice lines each. (2) Included in total subscribers at June 30, 2007 are approximately 14,000 local line equivalents and 1,000 broadband data circuits acquired from Futureway. These subscribers are not included in net additions for the three and six months ended June 30, 2007. (3) Broadband data circuits are those customer locations accessed by data networking technologies including DOCSIS, DSL, E10/100/1000, OC 3/12 and DS 1/3. RBS Revenue

The decrease in RBS revenues reflects a decline in lower margin resale and long-distance businesses, with a shift in focus to increasing the strength of profitable relationships and leveraging revenue opportunities over Cable's existing network. RBS continues to refocus on retaining its existing medium-enterprise and carrier customer base, but late in 2007 it suspended aggressive sales and marketing initiatives related to acquiring new medium and large business customers. RBS continues to evaluate areas of profitable business within the medium and large enterprise segments, while Core Cable focuses on continuing to grow Rogers' penetration of Internet and telephony services into the small business and small office home office markets within Cable's territory. For the three and six months ended June 30, 2008, RBS long-distance revenue declined $12 million and $26 million, respectively, and data revenue declined $4 million and $5 million, respectively.

RBS Operating Expenses

Carrier charges, included in operating, general and administrative expenses, decreased by $8 million and $21 million for the three and six months ended June 30, 2008, respectively, due to the decrease in revenue and focus on on-net services. Carrier charges still represented approximately 55% and 54% of revenue in the three and six months ended June 30, 2008, compared to 55% and 57% of revenue in the corresponding periods of 2007.

The decreases in other operating, general and administrative expenses for the three and six months ended June 30, 2008, $20 million and $43 million, respectively, are primarily related to lower sales, marketing and information technology costs compared to the corresponding periods of the prior year. The reduction in sales and marketing expenses for the three and six months ended June 30, 2008, compared to the corresponding periods of the prior year, reflects streamlining initiatives, including headcount reductions, associated with the refocusing of RBS' business.

RBS Adjusted Operating Profit

The changes described above resulted in RBS adjusted operating profit of $16 million and $33 million for the three and six months ended June 30, 2008, compared to an adjusted operating profit (loss) of $4 million and $(3) million in the corresponding periods of 2007.

ROGERS RETAIL Summarized Financial Results ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, ------------------------------------------------- (In millions of dollars) 2008 2007 % Chg 2008 2007 % Chg ------------------------------------------------------------------------- Rogers Retail operating revenue $ 92 $ 93 (1) $ 192 $ 184 4 ------------------------------------------------- Operating expenses 97 97 - 194 187 4 ------------------------------------------------- Adjusted operating loss(1) (5) (4) 25 (2) (3) (33) Stock option plan amendment(2) - (5) (100) - (5) (100) Stock-based compensation expense(2) (1) - n/m - - n/m Integration and restructuring expenses(3) - - n/m (4) - n/m ------------------------------------------------- Operating loss(1) $ (6) $ (9) (33) $ (6) $ (8) (25) ------------------------------------------------- ------------------------------------------------- Adjusted operating loss margin(1) (5.4%) (4.3%) (1.0%) (1.6%) ------------------------------------------------------------------------- (1) As defined. See the sections entitled "Key Performance Indicators and Non-GAAP Measures" and "Supplementary Information". (2) See the section entitled "Stock-based Compensation". (3) Costs related to the closure of certain Rogers Retail stores. Rogers Retail Revenue

The increase in Rogers Retail revenue of $8 million for the six months ended June 30, 2008, compared to the corresponding period of 2007, was the result of increased sales of wireless products and services, partially offset by the continued decline in video rentals.

Rogers Retail Adjusted Operating Profit

Adjusted operating profit at Rogers Retail was relatively unchanged for the three and six months ended June 30, 2008, compared to the corresponding periods of the prior year, and reflects the trends noted above.

CABLE ADDITIONS TO PP&E

The Cable Operations segment categorizes its PP&E expenditures according to a standardized set of reporting categories that were developed and agreed to by the U.S. cable television industry and which facilitate comparisons of additions to PP&E between different cable companies. Under these industry definitions, Cable Operations additions to PP&E are classified into the following five categories:

- Customer premises equipment ("CPE"), which includes the equipment for digital set-top terminals, Internet modems and the associated installation costs; - Scalable infrastructure, which includes non-CPE costs to meet business growth and to provide service enhancements, including many of the costs to-date of the cable telephony initiative; - Line extensions, which includes network costs to enter new service areas; - Upgrades and rebuild, which includes the costs to modify or replace existing coaxial cable, fibre-optic equipment and network electronics; and - Support capital, which includes the costs associated with the purchase, replacement or enhancement of non-network assets. Summarized Cable PP&E Additions ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, ------------------------------------------------- (In millions of dollars) 2008 2007 % Chg 2008 2007 % Chg ------------------------------------------------------------------------- Additions to PP&E Customer premises equipment $ 53 $ 69 (23) $ 99 $ 135 (27) Scalable infrastructure 75 36 108 110 58 90 Line extensions 12 15 (20) 21 28 (25) Upgrades and rebuild 5 15 (67) 8 19 (58) Support capital 40 28 43 68 48 42 ------------------------------------------------- Total Cable Operations 185 163 13 306 288 6 RBS 10 17 (41) 14 40 (65) Rogers Retail 4 4 - 7 7 - ------------------------------------------------- $ 199 $ 184 8 $ 327 $ 335 (2) -------------------------------------------------------------------------

The increase in Cable Operations PP&E additions for the quarter ended June 30, 2008, is primarily attributable to a larger subscriber base and increased demand for data products. This resulted in increased spending on scalable infrastructure, as well as increased support capital. Spending on CPE has decreased in the three and six months ended June 30, 2008, compared to the corresponding periods of the prior year, due to the continued drawdown of inventory levels.

The reduction in RBS PP&E additions for the three and six months ended June 30, 2008, compared to the corresponding periods of the prior year, reflects the refocusing of RBS's business as discussed above.

Rogers Retail PP&E additions are attributable to improvements made to certain retail stores.

MEDIA ----- Summarized Media Financial Results ------------------------------------------------------------------------- Three months ended Six months ended (In millions of June 30, June 30, dollars, except ------------------------------------------------- margin) 2008(1)(2) 2007 % Chg 2008(1)(2) 2007 % Chg ------------------------------------------------------------------------- Operating revenue $ 409 $ 348 18 $ 716 $ 614 17 ------------------------------------------------- Operating expenses before the undernoted 357 303 18 663 550 21 ------------------------------------------------- Adjusted operating profit(3) 52 45 16 53 64 (17) Stock option plan amendment(4) - (84) (100) - (84) (100) Stock-based compensation recovery (expense)(4) (9) (4) 125 11 (6) n/m Adjustment for CRTC Part II fees decision(5) (7) - n/m (6) - n/m ------------------------------------------------- Operating profit (loss)(3) $ 36 $ (43) n/m $ 58 $ (26) n/m ------------------------------------------------- ------------------------------------------------- Adjusted operating profit margin(3) 12.7% 12.9% 7.4% 10.4% Additions to property, plant and equipment(3) $ 17 $ 11 55 $ 38 $ 18 111 ------------------------------------------------------------------------- (1) The operating results of Citytv are included in Media's results of operations from the date of acquisition on October 31, 2007. (2) The operating results of channel m are included in Media's results of operations from the date of acquisition on April 30, 2008. (3) As defined. See the section entitled "Key Performance Indicators and Non-GAAP Measures". (4) See the section entitled "Stock-based Compensation". (5) Relates to an adjustment for CRTC Part II fees related to prior periods resulting from a recent Federal Court of Appeal decision. See the section entitled "Government Regulation and Regulatory Developments" for further details. Media Revenue

The increase in Media revenue for the three and six months ended June 30, 2008, over the corresponding periods in 2007, primarily reflects the acquisition of Citytv. This acquisition closed on October 31, 2007 and contributed $46 million and $80 million, respectively, to revenue in the three and six months ended June 30, 2008, or approximately 75% and 78%, respectively, of the revenue increases. In addition, Media's OMNI Television, Radio and Sportsnet businesses each experienced organic revenue growth compared to the three and six months ended June 30, 2007. These increases were partially offset by softer advertising revenue at Publishing, modestly lower sales of fine jewelry and home goods at The Shopping Channel, and the variation in timing of revenue-sharing payments from Major League Baseball at Sports Entertainment.

Media Operating Expenses

The increase in Media operating expenses for the three and six months ended June 30, 2008, compared to the corresponding periods in 2007, primarily reflects the addition of $41 million and $77 million, respectively, of operating costs relating to the acquired Citytv business, the $9 million charge for terminating the concession agreement at Rogers Centre during the first quarter of 2008, as well as the buyout of certain player and coaching contracts during the second quarter of 2008.

Media Adjusted Operating Profit

The increase in Media's adjusted operating profit for the three months ended June 30, 2008, compared to the corresponding period of 2007, primarily reflects the addition of the Citytv business resulting in the contribution of $5 million to adjusted operating profit. The decrease in Media's adjusted operating profit for the six months ended June 30, 2008, compared to the corresponding period of the prior year, primarily reflects a contract termination fee for concession services at Rogers Centre, buyouts of player and coaching contracts, foreign exchange on U.S. dollar revenues, programming cost increases at Sportsnet, and revenue softness at Publishing and The Shopping Channel.

Media Additions to PP&E

The majority of Media's PP&E additions in the three and six months ended June 30, 2008, reflect building improvements related to the relocation of Rogers Sportsnet production facilities, the continued investment in a new television production facility and the acquisition of certain assets as part of the termination of a concession services agreement at Rogers Centre.

CONSOLIDATED LIQUIDITY AND CAPITAL RESOURCES Operations Three Months Ended June 30, 2008

For the three months ended June 30, 2008, cash generated from operations before changes in non-cash operating items, which is calculated by removing the effect of all non-cash items from net income, increased to $952 million from $786 million in the corresponding period of 2007. The $166 million increase is primarily the result of a $159 million increase in adjusted operating profit and a $19 million decrease in interest expense.

Taking into account the changes in non-cash working capital items for the three months ended June 30, 2008, cash generated from operations was $878Â million, compared to $589 million in the corresponding period of 2007. The cash generated from operations of $878 million, together with the receipt of $2 million from the issuance of Class B Non-Voting shares under the exercise of employee stock options, resulted in total net funds of approximately $880 million generated or raised in the three months ended June 30, 2008.

Net funds used during the three months ended June 30, 2008 totalled approximately $858 million, the details of which include the following:

- additions to PP&E of $453 million, including $28 million of related changes in non-cash working capital; - net repayments under our bank credit facility aggregating $35 million; - the payment of quarterly dividends of $160 million on our Class A Voting and Class B Non-Voting shares; - the purchase for cancellation of 1,000,000 Class B Non-Voting shares for an aggregate purchase price of $39.9 million; - additions to program rights of $42 million; and - acquisitions and other net investments aggregating $128 million, including the acquisition of Aurora Cable and channel m.

Taking into account the cash deficiency of $67 million at the beginning of the period and the fund uses described above, the cash deficiency at June 30, 2008 was $45 million.

Six Months Ended June 30, 2008

For the six months ended June 30, 2008, cash generated from operations before changes in non-cash operating items, which is calculated by removing the effect of all non-cash items from net income, increased to $1,821 million from $1,469 million in the corresponding period of 2007. The $352 million increase is primarily the result of a $323 million increase in adjusted operating profit and a $30 million decrease in interest expense.

Taking into account the changes in non-cash working capital items for the six months ended June 30, 2008, cash generated from operations was $1,577Â million, compared to $1,004 million in the corresponding period of 2007. The cash generated from operations of $1,577 million together with the receipt of $2 million from the issuance of Class B Non-Voting shares under the exercise of employee stock options resulted in total net funds of approximately $1,579 generated or raised in the six months ended June 30, 2008.

Net funds used during the six months ended June 30, 2008 totalled approximately $1,563 million, the details of which include the following:

- additions to PP&E of $856 million, including $54 million of related changes in non-cash working capital; - net repayments under our bank credit facility aggregating $200 million; - the payment of quarterly dividends of $240 million on our Class A Voting and Class B Non-Voting shares; - the purchase for cancellation of 1,000,000 Class B Non-Voting shares for an aggregate purchase price of $39.9 million; - additions to program rights of $78 million; and - acquisitions and other net investments aggregating $149 million, including the acquisition of Aurora Cable, channel m and CIKZ-FM Kitchener.

Taking into account the cash deficiency of $61 million at the beginning of the period and the fund uses described above, the cash deficiency at June 30, 2008 was $45 million.

Financing

Our long-term debt instruments are described in Note 15 to the 2007 Annual Audited Consolidated Financial Statements and Note 5 to the Unaudited Interim Consolidated Financial Statements for the three and six months ended June 30, 2008.

Three Months Ended June 30, 2008

As mentioned above, during the three months ended June 30, 2008, an aggregate $35 million net repayment was made under our bank credit facility.

Six Months Ended June 30, 2008

As mentioned above, during the six months ended June 30, 2008, an aggregate $200 million net repayment was made under our bank credit facility.

Normal Course Issuer Bid

In January 2008, RCI filed a normal course issuer bid ("NCIB") which authorizes us to repurchase up to the lesser of 15,000,000 of our Class B Non-Voting shares and that number of Class B Non-Voting shares that can be purchased under the NCIB for an aggregate purchase price of $300 million. On May 21, 2008, RCI repurchased for cancellation 1,000,000 of its Class B Non-Voting shares pursuant to a private agreement between RCI and an arm's-length third party seller for an aggregate purchase price of $39.9 million. The purchase was made under an issuer bid exemption order issued by the Ontario Securities Commission and will be included in calculating the number of Class B Non-Voting shares that RCI may purchase pursuant to the NCIB.

Wireless Spectrum Auction Letters of Credit and Payment for Auctioned Spectrum

In order to participate in the auction of wireless spectrum licences which commenced May 27, 2008, we arranged for the issuance of standby letters of credit aggregating $534 million pursuant to the terms and conditions of the auction. These letters of credit will be cancelled upon payment in full of $1.0 billion on September 3, 2008 for spectrum licences in the recent auction. Payment will be funded with drawdowns under RCI's $2.4 billion bank credit facility. See the section entitled "Recent Developments" in the Wireless segment review for further discussion.

Additional Revolving Credit Facility

In order to ensure that we have sufficient liquidity following payment for the wireless spectrum auction, in July 2008, RCI entered into a credit agreement with Canadian financial institutions for an unsecured revolving credit facility of up to $500 million available until maturity 364 days following the closing date.

Credit Ratings Upgrades

In June 2008, Fitch Ratings upgraded each of the following: the issuer default rating for RCI to BBB (from BBB-); the rating for RCI's senior unsecured debt to BBB (from BBB-); and the rating for RCI's senior subordinated debt to BBB- (from BB+). All of these ratings have a Stable outlook (from Positive prior to this upgrade).

In June 2008, Moody's Investors Service revised RCI's ratings outlook to Positive (from Stable) while affirming its Baa3 rating on RCI's senior unsecured debt and Ba1 on RCI's senior subordinated debt.

In June 2008, Standard & Poor's Ratings Services revised RCI's ratings outlook to Positive (from Stable) while affirming its BBB- corporate credit rating, BBB- rating on RCI's senior unsecured debt and BB+ on RCI's senior subordinated debt.

Interest Rate and Foreign Exchange Management Economic Hedge Analysis

For the purposes of our discussion on the hedged portion of long-term debt, we have used non-GAAP measures in that we include all cross-currency interest rate exchange agreements (whether or not they qualify as hedges for accounting purposes) since all such agreements are used for risk-management purposes only and are designated as a hedge of specific debt instruments for economic purposes. As a result, the Canadian dollar equivalent of U.S. dollar-denominated long-term debt reflects the contracted foreign exchange rate for all of our cross-currency interest rate exchange agreements regardless of qualifications for accounting purposes as a hedge.

During the three and six months ended June 30, 2008, there was no change in our U.S. dollar-denominated debt or in our cross-currency interest rate exchange agreements. On June 30, 2008 all of our U.S. dollar-denominated debt was hedged on an economic basis and on an accounting basis.

Consolidated Hedged Position ------------------------------------------------------------------------- (In millions of dollars, except percentages) June 30, 2008 December 31, 2007 ------------------------------------------------------------------------- U.S. dollar-denominated long-term debt US $ 4,190 US $ 4,190 Hedged with cross-currency interest rate exchange agreements US $ 4,190 US $ 4,190 Hedged exchange rate Cdn $ 1.3313 Cdn $ 1.3313 Percent hedged 100.0%(1) 100.0% ------------------------------------------------------------------------- Amount of long-term debt(2) at fixed rates: Total long-term debt Cdn $ 7,254 Cdn $ 7,454 Total long-term debt at fixed rates Cdn $ 6,214 Cdn $ 6,214 Percent of long-term debt fixed 85.7% 83.4% ------------------------------------------------------------------------- Weighted average interest rate on long-term debt 7.35% 7.53% ------------------------------------------------------------------------- (1) Pursuant to the requirements for hedge accounting under Canadian Institute of Chartered Accountants ("CICA") Handbook Section 3865, Hedges, on June 30, 2008, RCI accounted for 100% of its cross- currency interest rate exchange agreements as hedges against designated U.S. dollar-denominated debt. (2) Long-term debt includes the effect of the cross-currency interest rate exchange agreements. Composition of Fair Market Value Liability for Derivative Instruments ------------------------------------------------------------------------- (In millions of dollars) June 30, 2008 December 31, 2007 ------------------------------------------------------------------------- Foreign exchange related $ 1,571 $ 1,719 Interest related 172 85 --------------------------------------- Total carrying value $ 1,743 $ 1,804 ------------------------------------------------------------------------- Outstanding Share Data

Set out below is our outstanding share data as at June 30, 2008. For additional information, refer to Note 19 to our 2007 Annual Audited Consolidated Financial Statements and Note 4 to the Unaudited Interim Consolidated Financial Statements for the three and six months ended June 30, 2008.

------------------------------------------------------------------------- June 30, 2008 ------------------------------------------------------------------------- Common Shares(1) Class A Voting 112,462,014 Class B Non-Voting 526,249,809 ------------------------------------------------------------------------- Options to purchase Class B Non-Voting shares Outstanding options 16,132,223 Outstanding options exercisable 11,287,296 ------------------------------------------------------------------------- (1) Holders of our Class B Non-Voting shares are entitled to receive notice of and to attend meetings of our shareholders, but, except as required by law or as stipulated by stock exchanges, are not entitled to vote at such meetings. If an offer is made to purchase outstanding Class A Voting shares, there is no requirement under applicable law or RCI's constating documents that an offer be made for the outstanding Class B Non-Voting shares and there is no other protection available to shareholders under RCI's constating documents. If an offer is made to purchase both Class A Voting shares and Class B Non-Voting shares, the offer for the Class A Voting shares may be made on different terms than the offer to the holders of Class B Non-Voting shares. Dividends and Other Payments on Equity Securities

On November 1, 2007, we declared a quarterly dividend of $0.125 per share on each of the outstanding Class A Voting and Class B Non-Voting shares. This quarterly dividend totalling $80 million was paid on January 2, 2008 to shareholders of record on December 12, 2007.

On January 7, 2008, our Board of Directors approved an increase in the annual dividend from $0.50 to $1.00 per Class A Voting and Class B Non-Voting share effective with the next quarterly dividend. The new annual dividend of $1.00 per share is paid in quarterly amounts of $0.25 per each outstanding Class A Voting and Class B Non-Voting share. Such quarterly dividends are only payable as and when declared by our Board of Directors and there is no entitlement to any dividend prior thereto.

On February 21, 2008, we declared a quarterly dividend at the increased quarterly rate of $0.25 per share on each of the outstanding Class A Voting shares and Class B Non-Voting shares. This quarterly dividend totalling $160Â million was paid on April 1, 2008 to shareholders of record on March 6, 2008.

On April 29, 2008, we declared a quarterly dividend at the increased quarterly rate of $0.25 per share on each of the outstanding Class A Voting shares and Class B Non-Voting shares. This quarterly dividend totalling $160Â million was paid on July 2, 2008 to shareholders of record on May 13, 2008.

COMMITMENTS AND CONTRACTUAL OBLIGATIONS

Our material obligations under firm contractual arrangements, including commitments for future payments under long-term debt arrangements, capital lease obligations and operating lease arrangements, are summarized in our 2007 Annual MD&A, and are further discussed in Notes 15, 23 and 24 of our 2007 Annual Audited Consolidated Financial Statements. There have been no significant changes to these material contractual obligations since December 31, 2007, except as follows:

- We have entered into an agreement with a supplier to purchase handsets in the amount of approximately $150 million. See the section entitled "Recent Developments" in the Wireless segment review for further discussion; - We have committed to purchase certain wireless spectrum as part of the AWS spectrum auction. See the section entitled "Recent Developments" in the Wireless segment review for further discussion; - The Blue Jays signed two players to multi-year contracts totalling $80 million, ranging from four to six years; - The Buffalo Bills will play a series of eight games over a five-year period at the Rogers Centre in Toronto, beginning in August 2008, resulting in a commitment of $78 million of payments scheduled from 2008 through 2012; and - Changes to our bank credit facility balance previously discussed in the "Consolidated Liquidity and Capital Resources" section. GOVERNMENT REGULATION AND REGULATORY DEVELOPMENTS

The significant government regulations which impact our operations are summarized in our 2007 Annual MD&A. The significant changes to those regulations since December 31, 2007, are as follows:

AWS Spectrum Auction

On February 27, 2008, Industry Canada issued Responses to Questions for Clarification on the AWS Policy and Licencing Frameworks, which answered questions about the AWS spectrum auction and about tower sharing and roaming obligations of licencees. This was followed on February 29, 2008 by conditions of licence which will impose those obligations on wireless carriers. The documents clarified that roaming must provide connectivity for digital voice and data services regardless of the spectrum band or underlying technology used. The policy does not require a host network carrier to provide a roamer with a service which that carrier does not provide to its own subscribers, nor to provide a roamer a service, or level of service, which the roamer's network carrier does not provide. The policy also does not require seamless communications hand-off between home and host networks.

Commercial Radio Copyright Tariffs

On February 22, 2008, the Copyright Board reaffirmed the rates it set in 2005 for fees payable to the Society of Composers, Authors and Music Publishers of Canada ("SOCAN") and Neighbouring Rights Collective of Canada ("NRCC") for use of music from 2003 to 2007, in February 2008. In its reaffirmation of the SOCAN-NRCC decision the Copyright Board also granted the Canadian Association of Broadcasters' request for a consolidated tariff proceeding, which would set an overall valuation for the use of music by commercial radio, which would then be divided amongst the collectives.

The federal government has introduced amendments to the Canadian copyright legislation in the House of Commons. The Bill will require Internet service providers ("ISPs") to use a "notice and notice" regime whereby notices would be sent to the ISPs alleging copyright infringement. The ISP would then forward these notices to its customers. This is similar to the procedure currently used by us and therefore would not impose any new costs. The copyright legislation would also legalize forms of copying currently used by Cable's customers, but in its current form would not permit cable operators to use network PVR technology.

Canadian Television Fund ("CTF")

On June 5, 2008, the CRTC reported to the government (Canadian Heritage) on proposed changes to the CTF. It recommended separating private and public funding into two streams and creating two separate boards of directors. The CRTC denied proposals by some cable operators to opt-out of paying contributions. The report did not propose increases in the contributions currently paid by broadcasting distribution undertakings ("BDU") such as Cable.

Essential Facilities

On June 22, 2008, the Federal Court of Appeal denied the leave to appeal application from Bell Canada et al which sought to appeal the CRTC's essential facilities decision. Bell Canada and other parties have also applied to the CRTC with review and vary applications seeking to reverse some limited aspects of the essential facilities decision. Rogers has generally opposed these review and vary applications.

Restrictions on Non-Canadian Ownership and Control

On June 26, 2008, the Competition Policy Review Panel issued its report. While this panel and its report have no force of law, the report recommended that non-Canadians be permitted to start new telecommunications carriers in Canada and purchase existing carriers which have less than 10 percent of the Canadian telecommunications market. The report further recommends that after five years, there should be no foreign ownership rules for all telecommunications carriers and BDU's (cable and direct-to-home operators). Similar recommendations have been made as a result of previous studies over the past several years which did not result in any changes by government, and there is no indication when, or if, the government will act on any of the recommendations of this most recent report.

Part II Fees

The CRTC collects two different types of fees from broadcast licencees which are known as Part I and Part II fees. In 2003 and 2004, lawsuits were commenced in the Federal Court alleging that the Part II licence fees are taxes rather than fees and that the regulations authorizing them are unlawful. On December 14, 2006, the Federal Court ruled that the CRTC did not have the jurisdiction to charge Part II fees. Both the Crown and the applicants appealed this case to the Federal Court of Appeal. On April 28, 2008, the Federal Court of Appeal overturned the Federal Court and ruled that Part II fees are valid regulatory charges. As a result, during the three months ended June 30, 2008, Cable and Media recorded charges of approximately $30 million and $7 million, respectively, for CRTC Part II fees covering the period September 1, 2006 to March 31, 2008 ($25 million and $6 million for the period September 1, 2006 to December 31, 2007 for Cable and Media, respectively). In addition, we recorded $5 million and $2 million in the second quarter of 2008, for Cable and Media, respectively, which is included in operating, general and administrative expenses. We will continue to record these fees on a prospective basis. An application for leave to appeal has been filed with the Supreme Court of Canada although there is no assurance that the Court will hear the appeal or overturn this decision.

New Media Proceeding

The CRTC has commenced a major proceeding dealing with what it refers to as new media. They are reviewing any existing new media exemption order which exempts all broadcasting content on the Internet from regulation. They are also considering ways in which Canadian new media content could be subsidized. We expect some parties to argue in the proceeding that ISPs, such as Cable, should pay contributions to a fund to subsidize Canadian new media content.

Proposed Legislation

Bill C-555, An Act to Provide Clarity and Fairness in the Provision of Telecommunications Services in Canada, has received its first reading in the House of Commons. Bill C-555 is a private members bill and not government legislation. If passed, the bill would require the Minister of Industry to amend the licence conditions of PCS and cellular spectrum licences to prohibit carriers from charging additional fees or charges that are not part of the subscriber's monthly fee or monthly rate plan. The bill would also require the CRTC to inquire into, and make a report on, a wide range of issues including billing, cell phone locking, information regarding network speeds and limitations, network management practices and the Commissioner for Complaints for Telecommunications Services.

The Office de la Protection du Consommateur in Quebec is proposing to introduce amendments to the Consumer Protection Act that would affect sequential performance contracts provided remotely, including wireless, wireline and Internet service contracts. If passed, the amendments would limit the term of such contracts to two years, impose a limit on the early cancellation fees that can be charged to customers, prohibit the setting of an expiry date on prepaid phone cards, regulate the content and the form of such contracts as well as the termination and renewal rights of the consumers. The amendments also propose to institute a right of action to consumer protection associations to apply for discontinuance of practices or contractual clauses that contravene the Consumer Protection Act.

UPDATES TO RISKS AND UNCERTAINTIES

Our significant risks and uncertainties are summarized in our 2007 Annual MD&A, which was current as of February 20, 2008. The significant changes to those risks and uncertainties since that date are as follows:

Proposed Class Action (911 Fees)

On June 25, 2008, a proceeding was commenced in Saskatchewan under that Province's Class Actions Act against providers of wireless communications services in Canada. The proceeding involves allegations of, among other things, breach of contract, misrepresentation and false advertising in relation to the 911 fee charged by us and the other wireless communication providers in Canada. The Plaintiffs are seeking unquantified damages and restitution. The Plantiffs intend to seek an order certifying the proceeding as a national class action in Saskatchewan. Any potential liability is not yet determinable.

There is no Guarantee that Wireless' Service Revenue Will Exceed Increased Handset Subsidies

Wireless' business model, as is generally the case for other North American wireless carriers, is substantially based on subsidizing the cost of the handset to the customer to reduce the barrier to entry, while in return requiring a term commitment from the customer. For certain handsets, Wireless will commit with the supplier to a minimum subsidy. Wireless' business could be materially adversely affected if by virtue of law or regulation or negative customer behaviour, Wireless was unable to require term commitments or early cancellation fees from its customers or did not receive the service revenues that it anticipated from the customer commitment.

The AWS Spectrum Auction Could Increase Competition

Industry Canada's auction for AWS spectrum concluded on July 21, 2008. Each of the three large incumbent wireless operators, Rogers, Bell Canada and TELUS, acquired spectrum licences of varying sizes and in varying markets across Canada. Rogers acquired 20MHz of spectrum across the country while, MTS Allstream Inc., and Saskatchewan Telecommunications Holding Corporation acquired spectrum in Manitoba and Saskatchewan, respectively.

Through the auction and as described below, five new entrants acquired substantial regional holdings of AWS spectrum, and several much smaller companies acquired small amounts of spectrum in generally isolated locations. These new entrants could provide Wireless with substantial competition in the regions in which they have acquired licences. These new entrants may also partner with one another or our other competitors providing competition to Wireless in more than one region or on a national scale.

Three existing cable companies acquired spectrum, substantially in the regions where they already offer cable television, internet and telephone service. This acquisition of spectrum provides them with the potential ability to offer more comprehensive bundles of communications services including wireless services than they currently offer over their own facilities. Bragg Communications Inc., operating under the name Eastlink, is the dominant cable provider in the provinces of Nova Scotia and PEI and has additional cable operations across the country in various small towns across Canada. Eastlink acquired spectrum in each of its cable markets. Quebecor Media Inc., operating under the name Videotron Ltd. ("Videotron"), is the largest cable provider in Quebec. Videotron was the only potential new entrant to acquire spectrum in the province of Quebec and also acquired spectrum in Eastern Ontario and in Toronto. Shaw Communications Inc., which is the dominant cable provider in Western Canada and parts of northern Ontario, acquired spectrum cable markets in B.C., Alberta, Manitoba, Saskatchewan and in Sault Ste. Marie and Thunder Bay in Ontario.

Globalive Communications Corp. ("Globalive"), a privately-held company, is the parent company of Yak Communications Canada Corp. which is a resale-based long distance service provider in Canada. Globalive is heading a consortium with participation from Weather Investments SPA, controlled by Egypt's Naguib Sawiris (or its subsidiary, Orascom Telecom Holding S.A.E.) and Novator Partners, founded by Iceland's Bjorgolfur Thor Bjorgolfsson). The Globalive consortium acquired spectrum across Canada and the Northern Territories with the exception of Quebec.

Finally, Data & Audio-Visual Enterprises Wireless Inc. ("DAVE"), a new, privately-held company established by Canadian and U.S. investors, acquired spectrum in Eastern Ontario, Southern Ontario, and Victoria, Vancouver, Edmonton, Red Deer, and Calgary.

Currently, no single potential entrant has acquired spectrum sufficient to become a national licencee as defined by industry Canada to qualify for mandated roaming on a national basis for 10 years.

KEY PERFORMANCE INDICATORS AND NON-GAAP MEASURES

We measure the success of our strategies using a number of key performance indicators that are defined and discussed in our 2007 Annual MD&A. These key performance indicators are not measurements under Canadian or U.S. GAAP, but we believe they allow us to appropriately measure our performance against our operating strategy as well as against the results of our peers and competitors. They include:

- Network revenue and ARPU; - Subscriber counts and subscriber churn; - Operating expenses and average monthly operating expense per wireless subscriber; - Sales and marketing costs (or cost of acquisition) per subscriber; - Operating profit; - Adjusted operating profit; - Adjusted operating profit margin; and - Additions to PP&E.

See the "Supplementary Information" section for calculations of these Non-GAAP measures.

RELATED PARTY ARRANGEMENTS

We have entered into certain transactions with companies, the partners or senior officers of which are or have been Directors of our Company and/or its subsidiary companies. During the three and six months ended June 30, 2008 and 2007, total amounts paid to these related parties, directly or indirectly, are as follows:

Fees charged to our controlling shareholder for the personal use of corporate aircraft and for other administrative services are subject to formal agreements approved by the Audit Committee. For the six months ended June 30, 2008 and 2007, the fees charged to our controlling shareholder for personal use of the aircraft and other administrative services were approximately $0.5Â million and $0.5 million, respectively.

These transactions are recorded at the exchange amount, being the amount agreed to by the related parties.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

In our 2007 Annual Audited Consolidated Financial Statements and Notes thereto, as well as in our 2007 Annual MD&A, we have identified the accounting policies and estimates that are critical to the understanding of our business operations and our results of operations. For the six months ended June 30, 2008, there are no changes to the critical accounting policies and estimates of Wireless, Cable and Media from those found in our 2007 Annual MD&A.

NEW ACCOUNTING STANDARDS Capital Disclosures

Effective January 1, 2008, we adopted the new recommendations of the Canadian Institute of Chartered Accountants ("CICA") Handbook Section 1535, Capital Disclosures ("CICA 1535"). CICA 1535 requires that an entity disclose information that enables users of its financial statements to evaluate an entity's objectives, policies and processes for managing capital, including disclosures of any externally imposed capital requirements and the consequences for non-compliance. These new disclosures are included in Note 9 to the Unaudited Interim Consolidated Financial Statements for the three and six months ended June 30, 2008 and 2007.

Financial Instruments

Effective January 1, 2008, we adopted the new recommendations of CICA Handbook Section 3862, Financial Instruments - Disclosures ("CICA 3862"), and Handbook Section 3863, Financial Instruments - Presentation ("CICA 3863").

CICA 3862 requires entities to provide disclosures in their financial statements that enables users to evaluate the significance of financial instruments on the entity's financial position and its performance and the nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the balance sheet date, and how the entity manages those risks.

CICA 3863 establish standards for presentation of financial instruments and non-financial derivatives. It deals with the classification of financial instruments, from the perspective of the issuer, between liabilities and equities, the classification of related interest, dividends, gains and losses, and circumstances in which financial assets and financial liabilities are offset.

The adoption of these standards did not have any impact on the classification and measurement of our financial instruments. The new disclosures pursuant to these new Handbook Sections are included in Note 10 to the Unaudited Interim Consolidated Financial Statements for the three and six months ended June 30, 2008 and 2007.

Recent Accounting Pronouncements International Financial Reporting Standards ("IFRS")

In 2006, the Canadian Accounting Standards Board ("AcSB") published a new strategic plan that will significantly affect financial reporting requirements for Canadian companies. The AcSB strategic plan outlines the convergence of Canadian GAAP with IFRS over an expected five year transitional period.

In February 2008, the AcSB confirmed that IFRS will be mandatory in Canada for profit-oriented publicly accountable entities for fiscal periods beginning on or after January 1, 2011. Our first IFRS financial statements will be for the year ending December 31, 2011 and will include the comparative period for 2010. Starting in the first quarter of 2011, we will provide unaudited consolidated financial information in accordance with IFRS including comparative figures for 2010.

We are evaluating accounting policy differences between Canadian GAAP and IFRS based on management's current understanding of these standards. However, the financial reporting impact of the transition to IFRS has not yet been determined.

SEASONALITY

Our operating results are subject to seasonal fluctuations that materially impact quarter-to-quarter operating results, and thus one quarter's operating results are not necessarily indicative of a subsequent quarter's operating results.

Each of Wireless, Cable and Media has unique seasonal aspects to their businesses. For specific discussions of the seasonal trends affecting the Wireless, Cable and Media segments, please refer to our 2007 Annual MD&A.

2008 GUIDANCE

At this point in the year we have no specific revisions to the 2008 annual financial and operating guidance ranges which we provided on January 7, 2008. However, we note that Wireless' launch of the iPhone 3G on July 11, 2008 as discussed above is expected to cause COA to increase in the second half of 2008 and be greater than contemplated in our original 2008 guidance thus impacting Wireless' operating profit in the same period. However, Wireless' adjusted operating profit for the first two quarters of 2008 has and continues to trend stronger than originally anticipated in our 2008 guidance, and as such, we currently expect these two trends will for the most part offset each other for the full year 2008 in respect of Wireless' adjusted operating profit results. See the section entitled "Caution Regarding Forward-Looking Statements, Risks and Assumptions" below.

SUPPLEMENTARY INFORMATION Calculations of Wireless Non-GAAP Measures --------------------------------------------------- --------------------- (In millions of dollars, Three months ended Six months ended subscribers in thousands, June 30, June 30, except ARPU figures and --------------------- --------------------- operating profit margin) 2008 2007 2008 2007 --------------------------------------------------- --------------------- Postpaid ARPU (monthly) Postpaid (voice and data) revenue $ 1,371 $ 1,207 $ 2,665 $ 2,311 Divided by: average postpaid wireless voice and data subscribers 6,055 5,538 6,006 5,488 Divided by: 3 months for the quarter and 6 months for year-to-date 3 3 6 6 --------------------- --------------------- $ 75.48 $ 72.65 $ 73.95 $ 70.18 --------------------------------------------------- --------------------- Prepaid ARPU (monthly) Prepaid (voice and data) revenue $ 71 $ 67 $ 137 $ 128 Divided by: average prepaid subscribers 1,404 1,365 1,403 1,369 Divided by: 3 months for the quarter and 6 months for year-to-date 3 3 6 6 --------------------- --------------------- $ 16.86 $ 16.36 $ 16.27 $ 15.58 --------------------------------------------------- --------------------- Cost of acquisition per gross addition Total sales and marketing expenses $ 151 $ 146 $ 291 $ 286 Equipment margin loss (acquisition related) 40 39 75 66 --------------------- --------------------- $ 191 $ 185 $ 366 $ 352 --------------------- --------------------- --------------------- --------------------- Divided by: total gross wireless additions (postpaid, prepaid and one-way messaging) 435 481 862 913 --------------------- --------------------- $ 439 $ 385 $ 425 $ 386 --------------------------------------------------- --------------------- Operating expense per average subscriber (monthly) Operating, general and administrative expenses $ 446 $ 381 $ 887 $ 747 Equipment margin loss (retention related) 39 47 81 102 --------------------- --------------------- $ 485 $ 428 $ 968 $ 849 --------------------- --------------------- --------------------- --------------------- Divided by: average total wireless subscribers 7,562 7,034 7,524 6,992 Divided by: 3 months for the quarter and 6 months for year-to-date 3 3 6 6 --------------------- --------------------- $ 21.38 $ 20.28 $ 21.44 $ 20.24 --------------------------------------------------- --------------------- Equipment margin loss Equipment sales $ 77 $ 87 $ 145 $ 149 Cost of equipment sales (156) (173) (301) (317) --------------------- --------------------- $ (79) $ (86) $ (156) $ (168) --------------------- --------------------- --------------------- --------------------- Acquisition related $ (40) $ (39) $ (75) $ (66) Retention related (39) (47) (81) (102) --------------------- --------------------- $ (79) $ (86) $ (156) $ (168) --------------------- --------------------- --------------------- --------------------- --------------------------------------------------- --------------------- Adjusted operating profit margin Adjusted operating profit $ 769 $ 664 $ 1,474 $ 1,245 Divided by network revenue 1,445 1,277 2,808 2,446 --------------------- --------------------- Adjusted operating profit margin 53.2% 52.0% 52.5% 50.9% --------------------------------------------------- --------------------- SUPPLEMENTARY INFORMATION Calculations of Cable Non-GAAP Measures --------------------------------------------------- --------------------- (In millions of dollars, Three months ended Six months ended subscribers in thousands, June 30, June 30, except ARPU figures and --------------------- --------------------- operating profit margin) 2008 2007 2008 2007 --------------------------------------------------- --------------------- Core Cable ARPU Core Cable revenue $ 417 $ 384 $ 820 $ 757 Divided by: average basic cable subscribers 2,289 2,272 2,292 2,275 Divided by: 3 months for the quarter and 6 months for year-to-date 3 3 6 6 --------------------- --------------------- $ 60.73 $ 56.34 $ 59.62 $ 55.45 --------------------------------------------------- --------------------- Internet ARPU Internet revenue $ 171 $ 152 $ 337 $ 295 Divided by: average Internet (residential) subscribers 1,524 1,374 1,510 1,353 Divided by: 3 months for the quarter and 6 months for year-to-date 3 3 6 6 --------------------- --------------------- $ 37.41 $ 36.87 $ 37.19 $ 36.33 --------------------------------------------------- --------------------- Cable Operations adjusted operating profit margin: Adjusted operating profit $ 293 $ 243 $ 571 $ 477 Divided by revenue 718 646 1,413 1,266 --------------------- --------------------- Cable Operations adjusted operating profit margin 40.8% 37.6% 40.4% 37.7% --------------------------------------------------- --------------------- RBS adjusted operating profit (loss) margin: Adjusted operating profit (loss) $ 16 $ 4 $ 33 $ (3) Divided by revenue 130 146 263 291 --------------------- --------------------- RBS adjusted operating profit (loss) margin 12.3% 2.7% 12.5% (1.0%) --------------------------------------------------- --------------------- SUPPLEMENTARY INFORMATION Calculation of Adjusted Operating Profit, Net Income and Earnings Per Share --------------------------------------------------- --------------------- Three months ended Six months ended (In millions of dollars, June 30, June 30, number of shares --------------------- --------------------- outstanding in millions 2008 2007 2008 2007 --------------------------------------------------- --------------------- Operating profit $ 996 $ 431 $ 2,091 $ 1,229 Add (deduct): Stock option plan amendment - 452 - 452 Stock-based compensation (recovery) expense 53 32 (63) 47 Adjustment for CRTC Part II fees decision 37 - 31 - Integration and restructuring expenses - Cable 3 15 8 16 --------------------- --------------------- Adjusted operating profit $ 1,089 $ 930 $ 2,067 $ 1,744 --------------------- --------------------- --------------------- --------------------- Net income (loss) $ 301 $ (56) $ 645 $ 114 Add (deduct): Stock option plan amendment - 452 - 452 Stock-based compensation (recovery) expense 53 32 (63) 47 Adjustment for CRTC Part II fees decision 37 - 31 - Integration and restructuring expenses - Cable 3 15 8 16 Loss on repayment of long-term debt - 47 - 47 Income tax impact (30) (191) 10 (191) --------------------- --------------------- Adjusted net income $ 364 $ 299 $ 631 $ 485 --------------------- --------------------- --------------------- --------------------- Basic earnings per share: Adjusted net income $ 364 $ 299 $ 631 $ 485 Divided by: weighted average number of shares outstanding 639 639 639 638 --------------------- --------------------- Adjusted basic earnings per share $ 0.57 $ 0.47 $ 0.99 $ 0.76 --------------------- --------------------- --------------------- --------------------- Diluted earnings per share: Adjusted net income $ 364 $ 299 $ 631 $ 485 Divided by: diluted weighted average number of shares outstanding 639 639 639 646 --------------------- --------------------- Adjusted diluted earnings per share $ 0.57 $ 0.47 $ 0.99 $ 0.75 --------------------------------------------------- --------------------- SUPPLEMENTARY INFORMATION Rogers Communications Inc. 2008 2007 ------------------------------ --------------------- -------------------- (In millions of dollars, except per share amounts) Q1 Q2 Q1 Q2 ------------------------------ --------------------- -------------------- Income Statement Operating revenue Wireless $ 1,431 $ 1,522 $ 1,231 $ 1,364 Cable 925 938 855 881 Media 307 409 266 348 Corporate and eliminations (54) (66) (54) (66) ------------------------------ --------------------- -------------------- 2,609 2,803 2,298 2,527 ------------------------------ --------------------- -------------------- Operating profit before the undernoted Wireless 705 769 581 664 Cable 303 304 228 243 Media 2 52 19 45 Corporate and eliminations (26) (36) (14) (22) ------------------------------ --------------------- -------------------- 984 1,089 814 930 Stock option plan amendment(1) - - - (452) Stock-based compensation recovery (expense)(1) 116 (53) (15) (32) Integration and restructuring expenses(2) (5) (3) (1) (15) Adjustment for CRTC Part II fees decision(3) - (37) - - Contract renegotiation fee(4) - - - - ------------------------------ --------------------- -------------------- Operating profit(5) 1,095 996 798 431 Depreciation and amortization 440 420 400 398 ------------------------------ --------------------- -------------------- Operating income 655 576 398 33 Interest on long-term debt (138) (133) (149) (152) Other income (expense) (3) 11 7 (24) Income tax reduction (expense) (170) (153) (86) 87 ------------------------------ --------------------- -------------------- Net income (loss) for the period $ 344 $ 301 $ 170 $ (56) ------------------------------ --------------------- -------------------- ------------------------------ --------------------- -------------------- Net income (loss) per share: Basic $ 0.54 $ 0.47 $ 0.27 $ (0.09) Diluted $ 0.54 $ 0.47 $ 0.26 $ (0.09) Additions to PP&E(5) $ 321 $ 481 $ 394 $ 381 ------------------------------ --------------------- -------------------- 2007 2006 ------------------------------ --------------------- -------------------- (In millions of dollars, except per share amounts) Q3 Q4 Q1 Q2 ------------------------------ --------------------- -------------------- Income Statement Operating revenue Wireless $ 1,442 $ 1,466 $ 1,005 $ 1,094 Cable 899 923 772 787 Media 339 364 240 334 Corporate and eliminations (69) (66) (33) (36) ------------------------------ --------------------- -------------------- 2,611 2,687 1,984 2,179 ------------------------------ --------------------- -------------------- Operating profit before the undernoted Wireless 686 658 412 490 Cable 265 265 222 237 Media 46 63 14 53 Corporate and eliminations (13) (29) (30) (24) ------------------------------ --------------------- -------------------- 984 957 618 756 Stock option plan amendment(1) - - - - Stock-based compensation recovery (expense)(1) (11) (4) (13) (10) Integration and restructuring expenses(2) (5) (17) (11) (2) Adjustment for CRTC Part II fees decision(3) 18 - - - Contract renegotiation fee(4) - (52) - - ------------------------------ --------------------- -------------------- Operating profit(5) 986 884 594 744 Depreciation and amortization 397 408 386 395 ------------------------------ --------------------- -------------------- Operating income 589 476 208 349 Interest on long-term debt (140) (138) (161) (155) Other income (expense) (14) - 1 17 Income tax reduction (expense) (166) (84) (35) 68 ------------------------------ --------------------- -------------------- Net income (loss) for the period $ 269 $ 254 $ 13 $ 279 ------------------------------ --------------------- -------------------- ------------------------------ --------------------- -------------------- Net income (loss) per share: Basic $ 0.42 $ 0.40 $ 0.02 $ 0.44 Diluted $ 0.42 $ 0.40 $ 0.02 $ 0.44 Additions to PP&E(5) $ 397 $ 624 $ 340 $ 403 ------------------------------ --------------------- -------------------- (1) See section entitled "Stock-based Compensation". (2) Costs incurred relate to the integration of Fido, Call-Net, the restructuring of Rogers Business Solutions, and the closure of certain Rogers Retail stores. (3) In the third quarter of 2007, an accrual for CRTC Part II fees was reversed, resulting from a notice received from the CRTC that Part II fees due in November 2007 would not be collected. In the second quarter of 2008, Part II fees related to prior periods were accrued due to a Federal Court of Appeal decision which stated that the fees were a valid regulatory charge. See the section entitled "Government Regulation and Regulatory Developments" for further details. (4) One-time charge resulting from the renegotiation of an Internet- related services agreement with Yahoo!. (5) As defined. See the section entitled "Key Performance Indicators and Non-GAAP Measures". SUPPLEMENTARY INFORMATION Rogers Communications Inc. Adjusted Quarterly Summary(1) 2008 2007 ------------------------------ --------------------- -------------------- (In millions of dollars, except per share amounts) Q1 Q2 Q1 Q2 ------------------------------ --------------------- -------------------- Income Statement Operating revenue Wireless $ 1,431 $ 1,522 $ 1,231 $ 1,364 Cable 925 938 855 881 Media 307 409 266 348 Corporate and eliminations (54) (66) (54) (66) ------------------------------ --------------------- -------------------- 2,609 2,803 2,298 2,527 ------------------------------ --------------------- -------------------- Adjusted operating profit(2) Wireless 705 769 581 664 Cable 303 304 228 243 Media 2 52 19 45 Corporate and eliminations (26) (36) (14) (22) ------------------------------ --------------------- -------------------- 984 1,089 814 930 Depreciation and amortization 440 420 400 398 ------------------------------ --------------------- -------------------- Adjusted operating income 544 669 414 532 Interest on long-term debt (138) (133) (149) (152) Other income (expense) (3) 11 7 23 Income tax reduction (expense) (133) (183) (86) (104) ------------------------------ --------------------- -------------------- Adjusted net income for the period $ 270 $ 364 $ 186 $ 299 ------------------------------ --------------------- -------------------- ------------------------------ --------------------- -------------------- Adjusted net income per share: Basic $ 0.42 $ 0.57 $ 0.29 $ 0.47 Diluted $ 0.42 $ 0.57 $ 0.29 $ 0.47 Additions to PP&E(2) $ 321 $ 481 $ 394 $ 381 ------------------------------ --------------------- -------------------- 2007 2006 ------------------------------ --------------------- -------------------- (In millions of dollars, except per share amounts) Q3 Q4 Q1 Q2 ------------------------------ --------------------- -------------------- Income Statement Operating revenue Wireless $ 1,442 $ 1,466 $ 1,005 $ 1,094 Cable 899 923 772 787 Media 339 364 240 334 Corporate and eliminations (69) (66) (33) (36) ------------------------------ --------------------- -------------------- 2,611 2,687 1,984 2,179 ------------------------------ --------------------- -------------------- Adjusted operating profit(2) Wireless 686 658 412 490 Cable 265 265 222 237 Media 46 63 14 53 Corporate and eliminations (13) (29) (30) (24) ------------------------------ --------------------- -------------------- 984 957 618 756 Depreciation and amortization 397 408 386 395 ------------------------------ --------------------- -------------------- Adjusted operating income 587 549 232 361 Interest on long-term debt (140) (138) (161) (155) Other income (expense) (14) - 1 17 Income tax reduction (expense) (165) (109) (39) 67 ------------------------------ --------------------- -------------------- Adjusted net income for the period $ 268 $ 302 $ 33 $ 290 ------------------------------ --------------------- -------------------- ------------------------------ --------------------- -------------------- Adjusted net income per share: Basic $ 0.42 $ 0.47 $ 0.05 $ 0.46 Diluted $ 0.41 $ 0.47 $ 0.05 $ 0.45 Additions to PP&E(2) $ 397 $ 624 $ 340 $ 403 ------------------------------ --------------------- -------------------- (1) This quarterly summary has been adjusted to exclude the impact of the adoption of a cash settlement feature for employee stock options, stock-based compensation (recovery) expense, integration and restructuring expenses, adjustments to CRTC Part II fees related to prior periods, a one-time charge related to the renegotiation of an Internet-related services agreement, losses on repayment of long-term debt and the income tax impact related to the above items. See the section entitled "Key Performance Indicators and Non-GAAP Measures". (2) As defined. See the section entitled "Key Performance Indicators and Non-GAAP Measures". Rogers Communications Inc. Unaudited Interim Consolidated Statements of Income (In millions of dollars, except per share amounts) ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, 2008 2007 2008 2007 ------------------------------------------------------------------------- Operating revenue $ 2,803 $ 2,527 $ 5,412 $ 4,825 Operating expenses: Cost of sales 225 250 453 468 Sales and marketing 311 317 610 622 Operating, general and administrative 1,268 1,062 2,250 2,038 Stock option plan amendment - 452 - 452 Integration and restructuring 3 15 8 16 Depreciation and amortization 420 398 860 798 ------------------------------------------------------------------------- Operating income 576 33 1,231 431 Interest on long-term debt (133) (152) (271) (301) ------------------------------------------------------------------------- 443 (119) 960 130 Foreign exchange gain (loss) 1 42 (6) 52 Loss on repayment of long-term debt - (47) - (47) Change in fair value of derivative instruments 5 (22) 1 (26) Other income, net 5 3 13 4 ------------------------------------------------------------------------- Income (loss) before income taxes 454 (143) 968 113 ------------------------------------------------------------------------- Income tax expense (recovery): Current (1) - 1 - Future 154 (87) 322 (1) ----------------------------------------------------------------------- 153 (87) 323 (1) ------------------------------------------------------------------------- Net income (loss) for the period $ 301 $ (56) $ 645 $ 114 ------------------------------------------------------------------------- Net income (loss) per share: Basic $ 0.47 $ (0.09) $ 1.01 $ 0.18 Diluted 0.47 (0.09) 1.01 0.18 ------------------------------------------------------------------------- Rogers Communications Inc. Unaudited Interim Consolidated Balance Sheets (In millions of dollars) ------------------------------------------------------------------------- June 30, December 31, 2008 2007 ------------------------------------------------------------------------- Assets Current assets: Accounts receivable $ 1,194 $ 1,245 Other current assets 375 304 Future income tax assets 457 594 ------------------------------------------------------------------------- 2,026 2,143 Property, plant and equipment 7,423 7,289 Goodwill 3,139 3,027 Intangible assets 1,981 2,086 Investments 377 485 Deferred charges 107 111 Other long-term assets 190 184 ------------------------------------------------------------------------- $ 15,243 $ 15,325 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities: Bank advances, arising from outstanding cheques $ 45 $ 61 Accounts payable and accrued liabilities 1,998 2,260 Current portion of long-term debt 1 1 Current portion of derivative instruments 173 195 Unearned revenue 248 225 ------------------------------------------------------------------------- 2,465 2,742 Long-term debt 5,958 6,032 Derivative instruments 1,570 1,609 Other long-term liabilities 204 214 Future income tax liabilities 271 104 ------------------------------------------------------------------------- 10,468 10,701 Shareholders' equity 4,775 4,624 ------------------------------------------------------------------------- $ 15,243 $ 15,325 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Rogers Communications Inc. Unaudited Interim Consolidated Statements of Shareholders' Equity (In millions of dollars) Six months ended June 30, 2008 ------------------------------------------------------------------------- Class A Voting Class B Non-Voting shares shares ---------------------- ---------------------- Number Number Amount of shares Amount of shares ------------------------------------------------------------------------- (000s) (000s) Balances, January 1, 2008 $ 72 112,462 $ 471 527,005 Net income for the period - - - - Shares issued on exercise of stock options - - 11 245 Dividends declared - - - - Repurchase of Class B Non-Voting shares - - (1) (1,000) Other comprehensive loss - - - - ------------------------------------------------------------------------- Balances, June 30, 2008 $ 72 112,462 $ 481 526,250 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Accumulated other compre- Total hensive share- Contributed Retained income holders' surplus earnings (loss) equity ------------------------------------------------------------------------- Balances, January 1, 2008 $ 3,689 $ 342 $ 50 $ 4,624 Net income for the period - 645 - 645 Shares issued on exercise of stock options - - - 11 Dividends declared - (320) - (320) Repurchase of Class B Non-Voting shares (38) (1) - (40) Other comprehensive loss - - (145) (145) ------------------------------------------------------------------------- Balances, June 30, 2008 $ 3,651 $ 666 $ (95) $ 4,775 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Six months ended June 30, 2007 ------------------------------------------------------------------------- Class A Voting Class B Non-Voting shares shares ---------------------- ---------------------- Number Number Amount of shares Amount of shares ------------------------------------------------------------------------- (000s) (000s) Balances, January 1, 2007 $ 72 112,468 $ 425 523,232 Net income for the period - - - - Class A Voting shares converted to Class B Non-Voting shares - (6) - 6 Stock option plan amendment - - - - Shares issued on exercise of stock options - - 34 3,494 Stock-based compensation - - - - Dividends declared - - - - Other comprehensive income - - - - ------------------------------------------------------------------------- Balances, June 30, 2007 $ 72 112,462 $ 459 526,732 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Accumulated other compre- Total hensive share- Contributed income holders' surplus Deficit (loss) equity ------------------------------------------------------------------------- Balances, January 1, 2007 $ 3,736 $ (30) $ (214) $ 3,989 Net income for the period - 114 - 114 Class A Voting shares converted to Class B Non-Voting shares - - - - Stock option plan amendment (50) - - (50) Shares issued on exercise of stock options (9) - - 25 Stock-based compensation 12 - - 12 Dividends declared - (105) - (105) Other comprehensive income - - 194 194 ------------------------------------------------------------------------- Balances, June 30, 2007 $ 3,689 $ (21) $ (20) $ 4,179 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Rogers Communications Inc. Unaudited Interim Consolidated Statements of Comprehensive Income (In millions of dollars) ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, 2008 2007 2008 2007 ------------------------------------------------------------------------- Net income (loss) for the period $ 301 $ (56) $ 645 $ 114 Other comprehensive income (loss): Change in fair value of available-for-sale investments: Increase (decrease) in fair value 6 34 (105) 124 Change in fair value of cash flow hedging derivative instruments: Increase in fair value of liability (159) (338) (8) (359) Reclassification to net income of foreign exchange loss (gain) 39 375 (128) 427 Reclassification to net income of accrued interest 35 28 70 48 --------------------------------------------------------------------- (79) 99 (171) 240 Related income taxes 40 (28) 26 (46) ----------------------------------------------------------------------- (39) 71 (145) 194 ------------------------------------------------------------------------- Total comprehensive income $ 262 $ 15 $ 500 $ 308 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Rogers Communications Inc. Unaudited Interim Consolidated Statements of Cash Flows (In millions of dollars) ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, 2008 2007 2008 2007 ------------------------------------------------------------------------- Cash provided by (used in): Operating activities: Net income (loss) for the period $ 301 $ (56) $ 645 $ 114 Adjustments to reconcile net income (loss) for the period to cash flows from operating activities: Depreciation and amortization 420 398 860 798 Program rights and Rogers Retail rental amortization 37 21 72 40 Future income taxes 154 (87) 322 (1) Unrealized foreign exchange gain - (38) - (46) Change in fair value of derivative instruments (5) 22 (1) 26 Loss on repayment of long-term debt - 47 - 47 Stock option plan amendment - 452 - 452 Stock-based compensation expense (recovery) 53 32 (63) 47 Amortization of fair value increment on long-term debt (2) (2) (3) (4) Other (6) (3) (11) (4) ----------------------------------------------------------------------- 952 786 1,821 1,469 Change in non-cash operating working capital items (74) (197) (244) (465) ----------------------------------------------------------------------- 878 589 1,577 1,004 ------------------------------------------------------------------------- Investing activities: Additions to property, plant and equipment ("PP&E") (481) (381) (802) (775) Change in non-cash working capital items related to PP&E 28 (26) (54) (114) Acquisitions, net of cash and cash equivalents acquired (124) (86) (147) (129) Additions to program rights (42) (9) (78) (23) Other (4) (11) (2) (5) ----------------------------------------------------------------------- (623) (513) (1,083) (1,046) ------------------------------------------------------------------------- Financing activities: Issuance of long-term debt 530 2,678 780 3,446 Repayment of long-term debt (565) (2,595) (980) (3,292) Premium on repayment of long-term debt - (59) - (59) Financing costs incurred - (4) - (4) Payment on settlement of cross-currency interest rate exchange agreements and forward contracts - (873) - (873) Proceeds on settlement of cross-currency interest rate exchange agreements and forward contracts - 838 - 838 Repurchase of Class B Non-Voting shares (40) - (40) - Issuance of capital stock on exercise of stock options 2 11 2 25 Dividends paid on Class A Voting and Class B Non-Voting shares (160) (26) (240) (51) ----------------------------------------------------------------------- (233) (30) (478) 30 ------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents 22 46 16 (12) Cash deficiency, beginning of period (67) (77) (61) (19) ------------------------------------------------------------------------- Cash deficiency, end of period $ (45) $ (31) $ (45) $ (31) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Supplemental cash flow information: Income taxes paid $ - $ - $ - $ 1 Interest paid 169 194 273 321 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The change in non-cash operating working capital items is as follows: Decrease (increase) in accounts receivable $ (58) $ (220) $ 60 $ (73) Decrease (increase) in other assets (26) 1 (116) (116) Increase (decrease) in accounts payable and accrued liabilities 17 45 (208) (276) Increase (decrease) in unearned revenue (7) (23) 20 - ------------------------------------------------------------------------- $ (74) $ (197) $ (244) $ (465) ------------------------------------------------------------------------- -------------------------------------------------------------------------

Cash and cash equivalents (deficiency) are defined as cash and short-term deposits which have an original maturity of less than 90 days, less bank advances.

The preceding MD&A and financial statements should be read in conjunction with the first quarter 2008 Notes to the Unaudited Interim Consolidated Financial Statements that can be found at http://www.rogers.com/ and on SEDAR at http://www.sedar.com/ or on EDGAR at http://www.sec.gov/.

Caution Regarding Forward-Looking Statements, Risks and Assumptions

This MD&A includes forward-looking statements and assumptions concerning our business, its operations and its financial performance and condition approved by management on the date of this MD&A. These forward-looking statements and assumptions include, but are not limited to, statements with respect to our objectives and strategies to achieve those objectives, statements with respect to our beliefs, plans, expectations, anticipations, estimates or intentions, including guidance and forecasts relating to revenue, adjusted operating profit, PP&E expenditures, free cash flow, expected growth in subscribers and the services to which they subscribe, the cost of acquiring subscribers and the deployment of new services and all other statements that are not historical facts. Such forward-looking statements are based on current objectives, strategies, expectations and assumptions that we believe to be reasonable at the time, including but not limited to, general economic and industry growth rates, currency exchange rates, product pricing levels and competitive intensity, subscriber growth and usage rates, changes in government regulation, technology deployment, device availability, the timing of new product launches, content and equipment costs, the integration of acquisitions, and industry structure and stability.

Except as otherwise indicated, this MD&A and our forward looking statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be considered or announced or may occur after the date of the financial information contained herein.

We caution that all forward-looking information, including any statement regarding our current intentions, is inherently subject to change and uncertain and that actual results may differ materially from the assumptions, estimates or expectations reflected in the forward-looking information. A number of factors could cause actual results to differ materially from those in the forward-looking statements or could cause our current objectives and strategies to change, including but not limited to economic conditions, technological change, the integration of acquisitions, unanticipated changes in content or equipment costs, changing conditions in the entertainment, information and communications industries, regulatory changes, litigation and tax matters, the level of competitive intensity and the emergence of new opportunities, many of which are beyond our control and current expectation or knowledge. Therefore, should one or more of these risks materialize, should our objectives or strategies change, or should any other factors underlying the forward-looking statements prove incorrect, actual results and our plans may vary significantly from what we currently foresee. Accordingly, we warn investors to exercise caution when considering any such forward-looking information herein and that it would be unreasonable to rely on such statements as creating any legal rights regarding our future results or plans. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any forward-looking statements or assumptions whether as a result of new information, future events or otherwise, except as required by law.

Before making any investment decisions and for a detailed discussion of the risks, uncertainties and environment associated with our business, fully review the sections of this MD&A entitled "Updates to Risks and Uncertainties" and "Government Regulation and Regulatory Developments", and also the sections entitled "Risks and Uncertainties Affecting our Businesses" and "Government Regulation and Regulatory Developments" in our 2007 Annual MD&A.

Additional Information

Additional information relating to our company and business, including our 2007 Annual Report and 2007 Annual Information Form, may be found on SEDAR at http://www.sedar.com/ or on EDGAR at http://www.sec.gov/.

About the Company

We are a diversified Canadian communications and media company. We are engaged in wireless voice and data communications services through Wireless, Canada's largest wireless provider and the operator of the country's only national GSM/HSPA based network. Through Cable we are one of Canada's largest providers of cable television services as well as high-speed Internet access and telephony services. Through Media, we are engaged in radio and television broadcasting, televised shopping, magazines and trade publications, and sports entertainment. We are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange .

For further information about the Rogers group of companies, please visit http://www.rogers.com/.

Quarterly Investment Community Conference Call

As previously announced by press release, a live Webcast of our quarterly results conference call with the investment community will be broadcast via the Internet at http://www.rogers.com/webcast beginning at 9:30 a.m. ET today, JulyÂ 29, 2008. A rebroadcast of this call will be available on the Webcast Archive page of the Investor Relations section of http://www.rogers.com/ for a period of at least two weeks following the conference call.

Rogers Communications Inc.

CONTACT: Investment Community Contacts: Bruce M. Mann, (416) 935-3532,
bruce.mann@rci.rogers.com; Dan Coombes, (416) 935-3550,
dan.coombes@rci.rogers.com; Media Contacts: Corporate and Media - Jan Innes,
(416) 935-3525, jan.innes@rci.rogers.com; Wireless - Elizabeth Hamilton, (416)
935-8710, elizabeth.hamilton@rci.rogers.com; Cable - Nancy Cottenden, (416)
935-4726, nancy.cottenden@rci.rogers.com

Telanetix Adds SAVVIS Communications as Telepresence Client- SAVVIS to utilize Telanetix for Intercontinental Connection -

BELLEVUE, Wash., July 29 /PRNewswire-FirstCall/ -- Telanetix, Inc. (OTC BB: TNXI), a leading IP solutions provider offering telepresence and VoIP services to business markets, today announced an agreement to supply leading IT infrastructure provider, SAVVIS, with its Digital Presence telepresence platform. SAVVIS, with an annual revenue of approximately $800 million, maintains its IT Platform across North America, Europe, and Asia, with particular focus on the financial services industry.

The agreement is SAVVIS' first installation of Digital Presence, connecting SAVVIS' St. Louis headquarters to its London location. Telanetix launched its UK distribution in early 2008. SAVVIS has designed with Telanetix the high bandwidth network services required to obtain the full value of the Telanetix Telepresence system.

"We've been very impressed with the feature set that Digital Presence has offered our company," said Ron Dobes, SAVVIS Vice President and General Manager of Network Products and Services. "By working with Telanetix, we've created an environment where our teams in St. Louis will be able to work more seamlessly with our London team, using our familiar everyday tools and workflow. This not only leads to increased productivity, but also a decrease in monies otherwise spent coordinating those efforts beforehand."

"SAVVIS' selection of Digital Presence is another example of the enterprise business segment deploying our technology," noted Doug Johnson, President and CEO of Telanetix. "A multisite enterprise such as SAVVIS clearly depends on the interoffice productivity that our telepresence offering can provide. The SAVVIS decision represents another validation of the value of our solution in this growing portion of the business communications marketplace."

Telanetix offers its telepresence service to businesses in a variety of customizable formats, all of which deliver a superior value. For further information, contact Jeff Salzwedel with Salzwedel Financial Services at (503) 722-7300, jeff@sfcinc.com.

About SAVVIS

SAVVIS, Inc. is a global leader in IT infrastructure services for enterprise applications. With an IT services platform spanning North America, Europe, and Asia, SAVVIS leads the industry in delivering secure, reliable, and scalable hosting, network, and application services. These solutions enable customers to focus on their core business while SAVVIS ensures the quality of their IT systems and operations. SAVVIS' strategic approach combines virtualization technology, a global network and multiple data centers, and automated management and provisioning systems. For more information about SAVVIS, visit http://www.savvis.net/.

About Telanetix, Inc.

Telanetix is a leading communications solutions provider offering telepresence and voice over IP (VoIP) services to all business market segments. Telanetix solutions meet the real-world communications demands of its customers with an industry-leading value proposition. The company's telepresence offering, called Digital Presence(TM), creates fully immersive and interactive meeting environments that incorporate voice, video and data from multiple locations into a single environment. The company's Voice offerings, marketing under the "AccessLine" brand, give companies flexible calling solutions, a simpler installation experience, and a greater range of support options than traditional telecom providers. Additional information may be found at the Telanetix corporate website, http://www.telanetix.com/

Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified based on current expectations. Such risks and uncertainties include, without limitation, the risks and uncertainties set forth from time to time in reports filed by the company with the Securities and Exchange Commission. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The companies undertake no obligation to publicly release statements made to reflect events or circumstances after the date hereof.

Telanetix, Inc.

CONTACT: Company, Kent Hellebust of Telanetix, Inc., +1-206-515-9160,
khellebust@telanetix.com; Investor Relations, Jeff Salzwedel of Salzwedel
Financial Communications, Inc., +1-503-722-7300, jeff@sfcinc.com, for
Telanetix, Inc.; or Media, Todd Barrish of Dukas PR, +1-212-704-7385,
todd@dukaspr.com, for Telanetix, Inc.

Web site: http://www.telanetix.com/
http://www.savvis.net/

Global Focus on Secure Integrated Solutions Continues to Pay Off for Verizon BusinessStrategic Services Fuel Growth as Company Enhances Capabilities and Expands Network Reach

BASKING RIDGE, N.J., July 29 /PRNewswire/ -- Verizon Business during second-quarter 2008 continued to successfully execute its global strategy of partnering with large-business and government customers to help them do business better and more securely.

The company generated total second-quarter revenues of $5.3 billion, or growth of 0.9 percent compared with last year's second quarter. This is Verizon Business' seventh consecutive quarter of year-over-year pro-forma revenue growth (non-GAAP, calculated as if Verizon and MCI had merged on Jan 1, 2005 and excluding the revenues of the wireline segment's non-strategic local exchange and related business assets in Maine, New Hampshire and Vermont, spun off on March 31, 2008). Global enterprise revenue, representing retail sales, increased 1.7 percent to $4.0 billion, compared with the year-ago quarter.

Sales of strategic services -- such as IP (Internet protocol) and managed services, including security, as well as Ethernet and optical services -- continued to fuel growth. These services generated nearly $1.5 billion in revenue, up 18.7 percent from second-quarter 2007.

"We continue to see very strong demand for the technologies and services that are fueling the ongoing global IP transformation," said John Killian, president of Verizon Business. "Our combination of capabilities and expertise in providing multinationals with integrated IP and IT solutions is unmatched, and these results show that our customers are getting the message."

Capabilities, Reach Expanded During Quarter

Verizon Business continued during the quarter to introduce new capabilities that support its integrated global solutions strategy.

Moving strategically to address the growing demand from large corporations for high-tech services geared to improving business performance, Verizon Business announced that it is delivering a standardized set of more than 50 professional-service capabilities in 30 countries around the globe. The services -- delivered through 2,700 specially trained and experienced consultants - are focused on five key practice areas: Security Services, IT Services, Network Integration and Engineering, IP Communications, and Contact Center Services.

The company also unveiled significant enhancements to its suite of unified communications (UC) offerings that help multinational companies to collaborate better and improve their business processes, while cutting travel costs. These enhancements included expansion of the company's voice-over-IP (VoIP) portfolio to four additional European countries; international expansion of the company's Integrated Communications Package (ICP) UC offering; integration of ICP with Verizon Conferencing; and deployment of the newest Microsoft Office Live Meeting platform for Verizon Net Conferencing. Additionally, the company rolled out a new software-based version of its PBX Mobile Extension offering that transfers the capabilities of an office phone to a mobile device.

Managed security services also continued to be a key area of focus during the quarter. Verizon Business announced significant enhancements to its Security Management Program, security monitoring and management services for Fortinet's FortiGate unified threat management platform, and additional managed security services aimed at preventing data breaches.

Underscoring the company's leadership in the global security services marketplace, Verizon Business released a first-of-its-kind report spanning four years and more than 500 forensic investigations. The "2008 Data Breach Investigations Report," conducted by Verizon Business Security Solutions investigative experts, found that nearly nine in 10 corporate data breaches could have been prevented had reasonable security measures been in place.

The company also provided additional options for extending Ethernet local area networks (LANs) to new locations, announcing enhanced optical capabilities that enable customers with campus environments to connect directly to associated sites easily and cost effectively with the ease and resiliency of synchronous optical network (SONET) technology.

Verizon Business also continued its efforts to make it even easier to do business with the company by unveiling the Verizon Enterprise Center, a single online customer portal where customers can view and manage all their wired and wireless communications.

Network Leadership and Global Expansion

Verizon Business continued to both enhance its global IP network, which serves as the critical platform for the company's secure communications and IT solutions, and expand its reach into high-growth, global markets.

Global network enhancements included:

-- Joining the Europe India Gateway submarine cable consortium, which will build a 9,000-mile high-speed submarine cable network from the United Kingdom to India.

-- Turning up 1,940 route-miles of Ultra Long Haul network in Europe -- connecting London, Amsterdam, Frankfurt, Paris and Brussels -- and turning up 804 additional route-miles in the U.S.

-- Deploying new multiplexer technology in nine additional U.S. markets, enabling remote configuration and provisioning of bandwidth.

-- Installing additional MPLS-based (multiprotocol label switching) switches in 22 additional global business centers.

The company also unveiled plans to open an office in Dubai to further strengthen its Middle East operations, and it received approval to directly deliver advanced communications services in Mexico.

Additionally, Verizon Business announced an alliance with Swisscom, Switzerland's leading telecommunications provider, which will enable enhanced global service and support capabilities for Swiss multinational companies and companies with operations in the Swiss market. Buhler, the global technology partner for the food, chemical processing and die casting industries, became the first customer for the new strategic alliance. Verizon Business and Swisscom will be the single source of all Buhler's global communications services. The company will use Verizon Business' global IP network for its global communications, seamlessly integrated with Swisscom's national network.

Verizon Business Industry Recognition

Industry experts and partners alike recognized the depth and breadth of Verizon Business' global capabilities during the quarter. The recognition included:

-- Analyst firm Gartner Inc. placed Verizon Business in the Leaders Quadrant in two reports: "Magic Quadrant for Managed and Professional Network Service Providers, North America, 2008" and "Magic Quadrant for U.S. Network Service Providers, 1H08," evaluating Verizon Business' completeness of vision and abilities to execute in these areas.(i)

-- Forrester Research recognized the company as a leading provider of European wide-area-network (WAN) services in an April 2008 report, "Forrester Wave(TM): European WAN Services, Q2 2008."

-- Nemertes Research bestowed a number of its PilotHouse awards on Verizon Business during the quarter - including seven of eight awards in its Ethernet category and an MPLS award for Private IP Performance Monitoring and Reporting.

-- Several partners honored Verizon Business during the quarter. Recognition included the 2007 Nortel Partner Advantage Innovation Award, a Cisco 2007 Partner Provider of the Year award and the Juniper Networks 2007 Americas Managed Services J-Partner of the Year Award.

-- For the third consecutive year, the Metro Ethernet Forum named Verizon Business Carrier Ethernet Service Provider of the Year, Best in Business, North America.

-- BSI Management Systems recognized Verizon Business as a leading provider of business continuity management services.

New Business Momentum Continues

Verizon Business continued to both solidify and extend its relationships with existing large businesses and government agencies around the world while adding new business.

Multinational corporations including Liz Claiborne Inc., Milliman Inc., Parsons Brinckerhoff, Standard Register and Western Union completed new agreements during the quarter for a wide range of advanced communications, IT and professional services.

Verizon Business also signed new contracts with several U.S. government agencies, including a 10-year, $678.5 million agreement under the Networx Universal program to deploy and manage a global IP network for the U.S. Department of Homeland Security.

Specific customer applications included:

-- Liz Claiborne Inc., a leading fashion brand and retailer, selected Verizon Business to connect its operations in 25 countries globally. Verizon Business has begun deployment of a fully managed Verizon Private IP solution to support the company's global communications needs, enabling it to enhance network management and achieve significant global cost efficiencies.

-- Milliman Inc., a global consulting organization, completed a new agreement for Managed Private IP to connect its business locations worldwide. Milliman will use Private IP as its platform for global communications and collaboration, including telepresence.

-- Parsons Brinckerhoff, a global infrastructure consulting, engineering and construction management organization, completed an agreement during the quarter for Private IP, managed network and security services, and customer premises equipment.

-- Standard Register, a leading document services provider, is deploying Managed IP PBX to increase collaboration and improve communications. The resulting unified communications (UC) infrastructure will integrate various networks, systems, media, devices and applications.

-- Western Union, a leading provider of global money-transfer services, signed a contract with Verizon Business for enhanced call routing, a network-based Interactive Voice Response (IVR) service that provides automated-attendant treatment and routing for inbound calls.

About the Magic Quadrant

The Magic Quadrants are copyrighted 2008 by Gartner, Inc. and are reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Verizon Business

Verizon Business, a unit of Verizon Communications , operates the world's most connected public IP network and uses its industry-leading global-network capabilities to offer large-business and government customers an unmatched combination of security, reliability and speed. The company integrates advanced IP communications and information technology (IT) products and services to deliver leading enterprise solutions including managed services, security, mobility, collaboration and professional services. These solutions power innovation and enable the company's customers to do business better. For more information, visit http://www.verizonbusiness.com/.

VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches and biographies, media contacts, high-quality video and images, and other information are available at Verizon's News Center on the World Wide Web at http://www.verizon.com/news. To receive news releases by e-mail, visit the News Center and register for customized automatic delivery of Verizon news releases.

-- See http://www.verizon.com/investor for reconciliations to generally accepted accounting principles (GAAP) for the non-GAAP financial measures included in this announcement.

(i) Gartner Research "Magic Quadrant for Managed and Professional Network Service Providers, North America," May 14, 2008. Authors Eric Goodness, Christine Tenneson, Ted Chamberlin, Daniel O'Connell; ID Number: G00155721.

Gartner Research "Magic Quadrant for U.S. Network Service Providers, 1H08," April 2, 2008. Authors Ted Chamberlin, Robert F. Mason, Jay E. Pultz; ID Number: G00155890.

Verizon Business

CONTACT: Jack Hoey, +1-908-559-4760, john.p.hoey@verizon.com, or Peter
Lucht, +1-617-535-5533, peter.lucht@verizon.com

Web Site: http://www.verizon.com/investor
http://www.verizon.com/news
http://www.verizonbusiness.com/

Company News On-Call: http://www.prnewswire.com/comp/094251.html

Perfect World Signs New Licensing Agreements with Games-Masters.com to License 'Perfect World II' in Europe

BEIJING, July 29 /Xinhua-PRNewswire/ -- Perfect World Co., Ltd. ("Perfect World" or the "Company"), a leading online game developer and operator in China, today announced that the company has signed new licensing agreements on July 24, 2008 with Games-Masters.com Ltd. ("Games- Masters.com"), a game operator in the United Kingdom, to license "Perfect World II" in around forty European countries.

"Perfect World II" is a 3D massive multiplayer online role playing game ("MMORPG") launched by Perfect World in 2006. The game has been well-received by many online game players with its excellent graphic design and innovative systems. Prior to signing the agreements, "Perfect World II" not only had been receiving positive feedback in the China's online game market, but also had been licensed to more than ten countries and regions. "Perfect World II" has the most licensed countries and regions among the games under the Company's product portfolio. Under the terms of the agreements, "Perfect World II" will be introduced and operated under multiple languages including English, French, German, Spanish, and Turkish in around forty European countries through Games-Masters.com.

"Our goal is to obtain a leading position in the European MMORPG market," commented Mr. Howard Lee, Chief Executive Officer of Games-Masters.com. "We believe the agreements with Perfect World to license 'Perfect World II' marks an important step toward achieving this goal. We also believe 'Perfect World II' will be a success in Europe."

"'Perfect World II' has been well-received by many online game players since being launched and operated in overseas markets," added Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. "The licensing agreements with Games-Masters.com will further extend the global reach of our product. We will closely work with Games-Masters.com to adjust the game's content according to European online game players' preferences in order to provide them with an enjoyable and fun experience brought by the domestically developed 3D MMORPG."

About Games-Masters.com Ltd.

Founded in 2005, Games-masters.com Ltd. ("Games-Masters.com") is one of the leading European online game publishers and best known for its successful MMORPG title, "Cabal Online," an online game with increasing subscribers in Europe. Games-Masters.com is incorporated in Sheffield, South Yorkshire, United Kingdom and has offices in Spain and Turkey. Games-Masters.com is a part of the holding company Games Masters International Limited. With professional business people and games industry management experts from both Europe and the Far East, Games-Masters.com plans to publish games in several genres such as Fantasy, Sports, Real Time Strategies and even Casual games. Games-Masters.com's goal is to become the leading player in the MMORPG market in Europe and continue to expand further into other game genres.

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 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 a number of countries and regions in Asia, Europe and South America. 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 annual report on Form 20-F. 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: Perfect World Co., Ltd. - Vivien Wang, Investor Relations
Officer, +86-10-5885-1813, or fax, +86-10-5885-6899, or ir@pwrd.com;
Christensen Investor Relations - Peter Homstad, +1-480-614-3026, or fax, +1-
480-614-3033, or phomstad@christensenir.com; Jung Chang, +852-2117-0861, or
fax, +852-2117-0869, or jchang@christensenir.com

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

EarthLink Announces Second Quarter ResultsContinues to Deliver Strong Results on Improved Cost Structure, Raises Guidance on Full Year Income from Continuing Operations, Free Cash Flow and Adjusted EBITDA

ATLANTA, July 29 /PRNewswire-FirstCall/ -- EarthLink, Inc. today announced financial results for its second quarter ended June 30, 2008. Highlights for the quarter include:

-- Income from continuing operations of $57.7 million, or $0.51 per share -- Net income of $53.3 million, or $0.48 per share -- Adjusted EBITDA (a non-GAAP measure) of $80.5 million -- Free cash flow (a non-GAAP measure) of $78.5 million -- Increased full year Adjusted EBITDA (a non-GAAP measure) guidance to $275 million - $290 million

"With our focus on customers' full internet access lifecycle, the strength of the EarthLink brand and our aggressive cost management, we delivered better than expected results across the board," said EarthLink's chairman and chief executive officer Rolla P. Huff. "We are seeing favorable trends in many areas of the business including better than expected passive subscriber additions, lower customer churn from a more tenured customer base and significantly reduced operational costs. As a result, we are once again raising guidance for the full year."

"As our revised guidance also indicates, while we expect to see continued improvements in the business, we do not expect them to be at the magnitude of the prior quarters. We have successfully implemented the vast majority of the larger scale cost reduction initiatives in the restructuring activities initiated last August to optimize our business."

Financial and Operating Results Revenue

Total company revenues were $245.6 million, a 21.2 percent decrease compared to the second quarter 2007. This result was consistent with management's expectations, strategy and prior public comments that the company focus would be on loyalty and retention of its tenured Internet access subscribers. While this focus on higher value, but fewer subscribers resulted in a decline in revenues, these tenured users also demonstrated significantly lower support cost profiles as compared to newer subscribers. This contributed to the company generating significantly better operating margins and free cash flow (a non-GAAP measure), as noted below.

Profitability and Other Financial Measures

EarthLink continues to focus its business on a more profitable and tenured customer base. This allowed the company to realize a significant decrease in sales and marketing, as well as back office support expenses. EarthLink's sales and marketing expenses were reduced to $25.8 million in the quarter, versus $75.8 million in the second quarter of 2007. Also contributing to the year-over-year expense decrease were benefits realized from our 2007 restructuring activities.

Operations and customer service expense decreased 43.8 percent to $33.6 million compared to the second quarter of 2007. With the strategic focus on more tenured subscribers, EarthLink also benefited from lower bad debt and billing expense. This contributed to a decline in general and administrative expense to $23.8 million for the quarter, down 19.2 percent compared to the second quarter of 2007.

EarthLink reported $57.7 million, or $0.51 per share, in income from continuing operations in the second quarter of 2008, compared to a loss of $(7.0) million, or $(0.06) per share, in the second quarter of 2007. The significant improvement compared to the second quarter of 2007 was due to the revised strategy and focus noted above as well as $40.1 million in equity losses related to Helio that were recognized in the prior year quarter.

EarthLink generated Adjusted EBITDA (a non-GAAP measure, see definition in "Non-GAAP Measures" below) of $80.5 million for the second quarter of 2008, compared to $43.8 million in the second quarter of 2007. This increase was the result of the significant improvement in income from continuing operations noted above.

Net income was $53.3 million, or $0.48 per share, for the second quarter of 2008, compared to a net loss of $(16.3) million, or $(0.13) per share, for the second quarter of 2007. The company's second quarter 2008 results include a loss of ($4.4) million from discontinued operations for the municipal Wi-Fi assets, compared to a loss of $(9.3) million during the second quarter of 2007.

Balance Sheet and Cash Flow

Free cash flow (a non-GAAP measure, see definition in "Non-GAAP Measures" below) was $78.5 million during the second quarter of 2008 compared to $29.6 million during the second quarter of 2007. This improvement reflects the significant increase in Adjusted EBITDA in the second quarter 2008, coupled with a $12.2 million decrease in capital expenditures and subscriber acquisitions in the quarter compared to the prior year quarter.

EarthLink ended the second quarter with $441.6 million in cash and marketable securities, an increase of $121.6 million from March 31, 2008.

Non-GAAP Measures

Adjusted EBITDA is defined as income (loss) from continuing operations before interest income (expense) and other, net, income taxes, depreciation and amortization, stock-based compensation expense under SFAS No. 123( R ), net losses of equity affiliate, gain (loss) on investments in other companies, net, and facility exit, restructuring and other costs.

Free cash flow is defined as income from continuing operations before interest income (expense) and other, net, income taxes, facility exit, restructuring and other costs, stock-based compensation expense under SFAS No. 123( R ), net losses of equity affiliate, gain (loss) on investments in other companies, net, and depreciation and amortization, less cash used for purchases of property and equipment and purchases of subscriber bases.

Adjusted EBITDA and free cash flow are non-GAAP financial performance measures. They should not be considered in isolation or as an alternative to measures determined in accordance with U.S. generally accepted accounting principles. Please refer to the Consolidated Financial Highlights for a reconciliation of these non-GAAP financial performance measures to the most comparable measures reported in accordance with U.S. generally accepted accounting principles and Footnote 3 of the Consolidated Financial Highlights for a discussion of the presentation, comparability and use of such financial performance measures.

Business Outlook

These statements are forward-looking, and actual results may differ materially. See comments under "Cautionary Information Regarding Forward-Looking Statements" below. EarthLink undertakes no obligation to update these statements.

For the full year 2008, management is increasing its previously issued guidance. During the first six months of 2008, EarthLink's reputation for world-class customer service contributed to higher than expected passive subscriber additions and better than expected improvements in average monthly customer churn. Additionally, efforts to improve the company's cost structure have surpassed original expectations. As a result of these favorable developments but recognizing that the magnitude of cost improvements will be lower in the remainder of 2008, management now expects to generate income from continuing operations of $180 million to $195 million, Adjusted EBITDA of $275 million to $290 million, and free cash flow of $250 million to $270 million for the full year 2008.

Conference Call for Analysts and Investors

Investors in the U.S. and Canada interested in participating in the conference call on July 29, 2008 at 8:30 a.m. Eastern Daylight Time (EDT) may dial 1-800-706-0730 and reference the EarthLink call. Other international investors may dial 1-706-634-5173 and also reference the EarthLink call. EarthLink recommends dialing into the call approximately 10 minutes prior to the scheduled start time.

A replay will be available beginning at 10:30 a.m. EDT on July 29, 2008 through midnight on August 5, 2008 by dialing 1-800-642-1687. International callers should dial 1-706-645-9291. The replay confirmation code is 54998017.

The Webcast of this call will be archived on EarthLink's site at: http://ir.earthlink.net/events.cfm

About EarthLink

"EarthLink. We revolve around you(TM)." As the nation's next generation Internet service provider, Atlanta-based EarthLink has earned an award-winning reputation for outstanding customer service and its suite of online products and services. EarthLink offers what every user should expect from their Internet experience: high-quality connectivity, minimal online intrusions and customizable features. Whether it's dial-up, high-speed, voice, web hosting, or "EarthLink Extras" like home networking or security, EarthLink connects people to the power and possibilities of the Internet. Learn more about EarthLink by calling (800) EARTHLINK or visiting EarthLink's Web site at http://www.earthlink.net/.

Cautionary Information Regarding Forward-Looking Statements

This press release includes "forward-looking" statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described. Although we believe that the expectations expressed in these forward-looking statements are reasonable, we cannot promise that our expectations will turn out to be correct. Our actual results could be materially different from and worse than our expectations. We disclaim any obligation to update any forward-looking statements contained herein, except as may be required pursuant to applicable law. With respect to forward-looking statements in this press release, the company seeks the protections afforded by the Private Securities Litigation Reform Act of 1995. These risks include, without limitation, (1) that changes to our business strategy may reduce our revenues and profitability; (2) that the continued decline of our consumer access services revenues could adversely affect our profitability; (3) that prices for certain of our consumer access services have been decreasing, which could adversely affect our revenues and profitability; (4) that we might not realize the benefits we are seeking from the corporate restructuring plan announced in August 2007 and our corporate restructuring plan might have a negative effect on our efforts to maintain our subscribers and our relationships with our business partners; (5) that as a result of our continuing review of our business, we may have to undertake further restructuring plans that would require additional charges including incurring facility exit and restructuring charges; (6) that we face significant competition which could reduce our market share and reduce our profitability; (7) that we may be unsuccessful in making and integrating acquisitions and investments into our business, which could result in operating difficulties, losses and other adverse consequences; (8) that we may not be able to successfully manage the costs associated with delivering our broadband services, which could adversely affect our results of operations; (9) that companies may not provide access to us on a wholesale basis or on reasonable terms or prices, which could cause our operating results to suffer; (10) that if we do not continue to innovate and provide products and services that are useful to subscribers, we may not remain competitive, and our revenues and operating results could suffer; (11) that our commercial and alliance arrangements may be terminated or may not be as beneficial as anticipated, which could adversely affect our ability to retain or increase our subscriber base; (12) that our business may suffer if third parties used for technical and customer support and certain billing services are unable to provide these services, cannot expand to meet our needs or terminate their relationships with us; (13) that service interruptions or impediments could harm our business; (14) that government regulations could adversely affect our business or force us to change our business practices; (15) that we may not be able to protect our proprietary technologies; (16) that we may be accused of infringing upon the intellectual property rights of third parties, which is costly to defend and could limit our ability to use certain technologies in the future; (17) that we could face substantial liabilities if we are unable to successfully defend against legal actions; (18) that our business depends on the continued development of effective business support systems, processes and personnel; (19) that we may be unable to hire and retain sufficient qualified personnel, and the loss of any of our key executive officers could adversely affect us; (20) that our VoIP business exposes us to certain risks that could cause us to lose customers, expose us to significant liability or otherwise harm our business; (21) that the use of our net operating losses and certain other tax attributes could be limited in the future; (22) that our stock price has been volatile historically and may continue to be volatile; (23) that our indebtedness could adversely affect our financial health and limit our ability to react to changes in our industry; (24) that the convertible notes hedge and warrant transactions may affect the value of our common stock; and (25) that provisions of our second restated certificate of incorporation, amended and restated bylaws and other elements of our capital structure could limit our share price and delay a change of management. These risks and uncertainties, as well as other risks and uncertainties that could cause our actual results to differ significantly from management's expectations, are not intended to represent a complete list of all risks and uncertainties inherent in our business, and should be read in conjunction with the more detailed cautionary statements and risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2007.

EARTHLINK, INC. Unaudited Condensed Consolidated Statements Of Operations (in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2007 2008 2007 2008 Revenues: Access and service $278,719 $220,041 $568,474 $454,890 Value-added services 33,147 25,562 67,539 53,787 Total revenues 311,866 245,603 636,013 508,677 Operating costs and expenses: Service and equipment costs 108,599 91,917 218,390 188,709 Sales incentives 5,110 571 9,714 1,330 Total cost of revenues 113,709 92,488 228,104 190,039 Sales and marketing 75,800 25,806 175,069 56,722 Operations and customer support 59,892 33,642 119,964 72,866 General and administrative 29,431 23,768 72,692 48,694 Amortization of intangible assets 3,542 3,987 7,038 8,000 Facility exit, restructuring and other costs (1) - 2,061 - 3,091 Total operating costs and expenses 282,374 181,752 602,867 379,412 Income from operations 29,492 63,851 33,146 129,265 Net losses of equity affiliate (40,054) - (69,400) - Gain on investments in other companies, net 210 1,325 210 1,325 Interest income (expense) and other, net 3,597 (760) 7,100 856 Income (loss) from continuing operations before income taxes (6,755) 64,416 (28,944) 131,446 Income tax provision (226) (6,725) (395) (15,999) Income (loss) from continuing operations (6,981) 57,691 (29,339) 115,447 Loss from discontinued operations (2) (9,309) (4,365) (16,913) (7,757) Net income (loss) $(16,290) $53,326 $(46,252) $107,690 Basic net income (loss) per share Continuing operations $(0.06) $0.52 $(0.24) $1.05 Discontinued operations (0.08) (0.04) (0.14) (0.07) Basic net income (loss) per share $(0.13) $0.48 $(0.38) $0.98 Basic weighted average common shares outstanding 123,257 110,033 123,159 109,762 Diluted net income (loss) per share Continuing operations $(0.06) $0.51 $(0.24) $1.04 Discontinued operations (0.08) (0.04) (0.14) (0.07) Diluted net income (loss) per share $(0.13) $0.48 $(0.38) $0.97 Diluted weighted average common shares outstanding 123,257 112,256 123,159 111,277 EARTHLINK, INC. Reconciliation of Income (Loss) from Continuing Operations to Adjusted EBITDA (3) (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2007 2008 2007 2008 Income (loss) from continuing operations $(6,981) $57,691 $(29,339) $115,447 Provision for income taxes 226 6,725 395 15,999 Depreciation and amortization 11,397 9,989 23,486 20,470 Stock-based compensation expense 2,898 4,569 10,778 9,722 Net losses of equity affiliate 40,054 - 69,400 - Gain on investments in other companies, net (210) (1,325) (210) (1,325) Interest income (expense) and other, net (3,597) 760 (7,100) (856) Facility exit, restructuring and other costs (1) - 2,061 - 3,091 Adjusted EBITDA (3) $43,787 $80,470 $67,410 $162,548 Depreciation - cost of revenues $3,577 $2,859 $7,309 $5,891 Depreciation - other 4,278 3,143 9,139 6,579 Amortization of intangible assets 3,542 3,987 7,038 8,000 Depreciation and amortization $11,397 $9,989 $23,486 $20,470 EARTHLINK, INC. Reconciliation of Income (Loss) From Continuing Operations to Free Cash Flow (3) (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2007 2008 2007 2008 Income (loss) from continuing operations $(6,981) $57,691 $(29,339) $115,447 Provision for income taxes 226 6,725 395 15,999 Depreciation and amortization 11,397 9,989 23,486 20,470 Stock-based compensation expense 2,898 4,569 10,778 9,722 Net losses of equity affiliate 40,054 - 69,400 - Gain on investments in other companies, net (210) (1,325) (210) (1,325) Interest income (expense) and other, net (3,597) 760 (7,100) (856) Facility exit, restructuring and other costs (1) - 2,061 - 3,091 Purchases of property and equipment (13,104) (1,980) (26,828) (2,258) Purchases of subscriber bases (1,084) (10) (2,949) (127) Free cash flow (3) $29,599 $78,480 $37,633 $160,163 EARTHLINK, INC. Reconciliation of Guidance Provided in Non-GAAP Measures (3) (in millions) Year Ending December 31, 2008 Income from continuing operations $180 - $195 Depreciation 24 Amortization of intangible assets 17 Stock-based compensation expense 18 Income tax provision 30 Facility exit, restructuring and other costs (1) 8 Interest income and other, net (2) Adjusted EBITDA (3) $275 - $290 Year Ending December 31, 2008 Income from continuing operations $180 - $195 Depreciation 24 Amortization of intangible assets 17 Stock-based compensation expense 18 Income tax provision 30 Facility exit, restructuring and other costs (1) 8 Interest income and other, net (2) Purchases of property and equipment (20) - (25) Free cash flow (3) $250 - $270 EARTHLINK, INC. Supplemental Financial Data and Key Operating Metrics June 30, Dec. 31, March 31, June 30, 2007 2007 2008 2008 Balance Sheet Data (in thousands) Cash and marketable securities $383,367 $288,595 $320,023 $441,589 Long-term debt 258,750 258,750 258,750 258,750 Stockholders' equity 418,209 261,473 313,426 371,077 Employee Data Number of employees at end of period (4) 2,034 983 922 857 June 30, Dec. 31, March 31, June 30, 2007 2007 2008 2008 Subscriber Data (5) Consumer services Narrowband access subscribers 3,039,000 2,624,000 2,368,000 2,130,000 Broadband access subscribers (6) 1,091,000 1,059,000 1,026,000 988,000 Total consumer subscribers 4,130,000 3,683,000 3,394,000 3,118,000 Business services Narrowband access subscribers 31,000 27,000 25,000 24,000 Broadband access subscribers 70,000 66,000 65,000 63,000 Web hosting accounts 106,000 100,000 97,000 94,000 Total business subscribers 207,000 193,000 187,000 181,000 Total subscribers at end of period 4,337,000 3,876,000 3,581,000 3,299,000 Three Months Ended Six Months Ended June 30, June 30, 2007 2008 2007 2008 Subscriber Activity Subscribers at beginning of period 5,269,000 3,581,000 5,313,000 3,876,000 Gross organic subscriber additions 467,000 162,000 1,135,000 415,000 Acquired subscribers 34,000 - 34,000 - Adjustment (7) (753,000) - (753,000) - Churn (680,000) (444,000) (1,392,000) (992,000) Subscribers at end of period 4,337,000 3,299,000 4,337,000 3,299,000 Churn Rate (8) 4.9% 4.3% 4.7% 4.6% Consumer Data Average subscribers (9) 4,401,000 3,250,000 4,699,000 3,394,000 ARPU (10) $19.98 $20.64 $19.16 $20.50 Churn rate (8) 5.0% 4.4% 4.8% 4.7% Business Data Average subscribers (9) 211,000 184,000 214,000 187,000 ARPU (10) $76.04 $80.37 $74.67 $81.14 Churn rate (8) 2.7% 2.5% 2.7% 2.6% EARTHLINK, INC. Supplemental Schedule of Segment Information (11) (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2007 2008 2007 2008 Consumer Services Revenues Access and service $231,392 $176,280 $474,192 $365,251 Value-added services 32,386 24,917 65,979 52,290 Total revenues 263,778 201,197 540,171 417,541 Cost of revenues 84,276 67,331 168,629 138,503 Gross margin 179,502 133,866 371,542 279,038 Segment operating expenses 133,742 53,692 293,074 114,693 Segment income from operations $45,760 $80,174 $78,468 $164,345 Business Services Revenues Access and service $47,327 $43,761 $94,282 $89,639 Value-added services 761 645 1,560 1,497 Total revenues 48,088 44,406 95,842 91,136 Cost of revenues 29,433 25,157 59,475 51,536 Gross margin 18,655 19,249 36,367 39,600 Segment operating expenses 16,118 11,957 32,787 26,827 Segment income from operations $2,537 $7,292 $3,580 $12,773 Consolidated Revenues Access and service $278,719 $220,041 $568,474 $454,890 Value-added services 33,147 25,562 67,539 53,787 Total revenues 311,866 245,603 636,013 508,677 Cost of revenues 113,709 92,488 228,104 190,039 Gross margin 198,157 153,115 407,909 318,638 Direct segment operating expenses 149,860 65,649 325,861 141,520 Segment income from operations 48,297 87,466 82,048 177,118 Stock-based compensation expense 2,897 4,569 10,778 9,722 Amortization of intangible assets 3,542 3,987 7,038 8,000 Facility exit, restructuring and other costs (1) - 2,061 - 3,091 Other operating expenses 12,366 12,998 31,086 27,040 Income from operations $29,492 $63,851 $33,146 $129,265 EARTHLINK, INC. Footnotes to Consolidated Financial Highlights 1. Facility exit, restructuring and other costs consisted of the following for the periods presented: Three Months Ended Six Months Ended June 30, June 30, 2007 2008 2007 2008 (in thousands) Facility exit and restructuring costs for the 2007 Plan $- $2,169 $- $3,262 Facility exit and restructuring costs for Legacy Plans - (108) - (171) $- $2,061 $- $3,091

In August 2007, EarthLink adopted a restructuring plan (the "2007 Plan") to reduce costs and improve the efficiency of the Company's operations. The Plan was the result of a comprehensive review of operations within and across the Company's functions and businesses. Under the Plan, the Company reduced its workforce by approximately 900 employees, closed office facilities in Orlando, Florida; Knoxville, Tennessee; Harrisburg, Pennsylvania and San Francisco, California and is consolidating its office facilities in Atlanta, Georgia and Pasadena, California. The Plan was primarily implemented during the later half of 2007 and is expected to be completed during 2008. As a result of the 2007 Plan, EarthLink recorded $2.3 million and $3.3 million of facility exit and restructuring costs during the three and six months ended June 30, 2008, respectively.

2. The Company has reflected its municipal wireless broadband results of operations as discontinued operations for all periods presented. The following is summarized results of operations related to the Company's discontinued operations for the periods presented: Three Months Ended Six Months Ended June 30, June 30, 2007 2008 2007 2008 (in thousands) Revenues $338 $551 $597 $1,288 Operating costs and expenses (9,647) (1,513) (17,510) (3,693) Impairment and other costs - (4,004) - (5,953) Income tax benefit - 601 - 601 Loss from discontinued operations $(9,309) $(4,365) $(16,913) $(7,757)

3. Adjusted EBITDA is defined as income (loss) from continuing operations before interest income (expense) and other, net, income taxes, depreciation and amortization, stock-based compensation under SFAS No. 123( R ), net losses of equity affiliate, gain (loss) on investments in other companies, net, and facility exit, restructuring and other costs. Free cash flow is defined as income (loss) from continuing operations before interest income (expense) and other, net, income taxes, depreciation and amortization, stock-based compensation under SFAS No. 123( R ), net losses of equity affiliate, gain (loss) on investments in other companies, net, and facility exit, restructuring and other costs, less cash used for purchases of property and equipment and purchases of subscriber bases.

Adjusted EBITDA and free cash flow are non-GAAP measures and are not determined in accordance with U.S. generally accepted accounting principles. These financial performance measures are not indicative of cash provided or used by operating activities and may differ from comparable information provided by other companies, and they should not be considered in isolation, as an alternative to, or more meaningful than measures of financial performance determined in accordance with U.S. generally accepted accounting principles. These financial performance measures are commonly used in the industry and are presented because EarthLink believes they provide relevant and useful information to investors. EarthLink utilizes these financial performance measures to assess its ability to meet future capital expenditures and working capital requirements, to incur indebtedness if necessary, and to fund continued growth. EarthLink also uses these financial performance measures to evaluate the performance of its business, for budget planning purposes and as factors in its employee compensation programs.

4. Represents full-time equivalents.

5. Subscriber counts do not include nonpaying customers. Customers receiving service under promotional programs that include periods of free service at inception are not included in subscriber counts until they become paying customers.

6. Paying customers who subscribe to EarthLink DSL and Home Phone service are counted as both a broadband subscriber and a voice subscriber.

7. In April 2007, EarthLink's wholesale contract with Embarq expired. As a result, EarthLink removed 753,000 EarthLink supported Embarq customers from its broadband subscriber counts effective April 2007.

8. Churn rate is used to measure the rate at which subscribers discontinue service on a voluntary or involuntary basis. Churn rate is computed by dividing the average monthly number of subscribers that discontinued service during the period by the average subscribers for the period.

9. Average subscribers for the three month periods is calculated by averaging the ending monthly subscribers or accounts for the four months preceding and including the end of the quarterly period. Average subscribers for the six month periods is calculated by averaging the ending monthly subscribers or accounts for the seven months preceding and including the end of the period.

10. ARPU represents the average monthly revenue per user (subscriber). ARPU is computed by dividing average monthly revenue for the period by the average number of subscribers for the period. Average monthly revenue used to calculate ARPU includes recurring service revenue as well as nonrecurring revenues associated with equipment and other one-time charges associated with initiating or discontinuing services.

11. EarthLink's business segments are strategic business units that are managed based upon differences in customers, services and marketing channels. EarthLink's Consumer Services segment is a provider of integrated communications services and related value-added services to individual customers. These services include dial-up Internet access, high-speed Internet access and voice service, among others. EarthLink's Business Services segment is a provider of integrated communications services and related value-added services to businesses and communications carriers. These services include managed data networks, dedicated Internet access and web hosting, among others.

EarthLink evaluates performance of its operating segments based on segment income from operations. Segment income from operations includes revenues from external customers, related cost of revenues and operating expenses directly attributable to the segment, which include expenses over which segment managers have direct discretionary control, such as advertising and marketing programs, customer support expenses, site operations expenses, product development expenses, certain technology and facilities expenses, billing operation and provisions for doubtful accounts. Segment income from operations excludes other income and expense items and certain expenses that segment managers do not have discretionary control over. Costs excluded from segment income from operations include various corporate expenses (consisting of certain costs such as corporate management, human resources, finance and legal), amortization of intangible assets, stock-based compensation expense under SFAS No. 123( R ) and facility exit and restructuring costs, as they are not evaluated in the measurement of segment performance.

EarthLink, Inc.

CONTACT: Media, Michele Sadwick, +1-404-748-7255, +1-404-769-8421
(mobile), sadwick@corp.earthlink.net, or Investors, Michael Gallentine,
+1-404-748-7153, +1-404-395-5155 (mobile), gallentineml@corp.earthlink.net

Web site: http://www.earthlink.net/
http://ir.earthlink.net/events.cfm

Collaboration Takes Center Stage as Market Embraces SharePointCaptaris Points to Document Capture and Automation as Key Drivers for Collaboration and Business Process Management

BELLVUE, Wash., July 29 /PRNewswire-FirstCall/ -- There is movement afoot -- a groundswell of office workers are now sharing, collaborating and streamlining everyday business interactions. Their platform of choice is Microsoft SharePoint, which today has logged in over 17,000 user companies and exceeded $1 billion in sales. Put another way, more than 100 million users are tapping the benefits of a collaborative work environment.

In an age of social networking where the keyboard and the mouse are the gateway to information, sharing and connecting, it is no wonder that SharePoint has been embraced with such fervor. Work can be organized and processed efficiently and co-workers, managers and other stakeholders have access to what they need when they need it.

The only thing missing from this virtual world of optimum productivity comes from the brick and mortar world: paper. Paper documents remain a mainstay from department to department in businesses around the globe.

Captaris, Inc. , an innovative software company focused on document automation, believes SharePoint is the ideal platform for collaboration and views it as a springboard to widespread adoption of document capture solutions. According to Paul Yantus, executive vice president of marketing and product development for Captaris, "Now that we have this incredible platform in SharePoint, all we need to do is automate paper to be part of this interactive world. That's where Captaris comes in. We specialize in capturing paper documents and converting them into electronic data that can be searched, sorted, shared and accessed. In fact, nearly every company in the Fortune 2000 uses our Right Suite products, our ubiquitous software that captures and delivers paper documents in a shared electronic environment."

Historically, document automation has either been the domain of large, complex enterprise applications or simply a replacement to the file cabinet where documents are captured electronically and stored. Captaris envisions documents as a central component to collaboration and sees the SharePoint platform in the same light as Microsoft, who calls it a business productivity server. With SharePoint, Microsoft is providing the infrastructure and Captaris is providing the document capture, routing, distribution, retrieval and process management.

The synergy between Microsoft and Captaris sets the stage for a new level of collaboration. According to Yantus, "Collaboration is the foundation for process management, which we believe is the ultimate goal. When workgroups can gain operational efficiencies by streamlining business processes, then huge gains can result in both productivity and quality."

Business Process Management is all about aligning an organization to meet objectives by improving processes so that the business is effective and efficient. It is often said that behind every piece of paper is a process. Captaris' solutions enable paper documents to be part of the process by automating them within SharePoint to become shared, accessed and processed.

The trend for document capture is shifting from centralized to decentralized capture where departments are driving the application. This is an area where SharePoint has gained traction as it offers IT managers the ability to standardize technology, yet deploy it one department at a time.

While SharePoint is an open environment and many third-party software developers are designing connectors that bridge the gap between SharePoint and other systems -- the biggest benefit comes when all applications are operating within the SharePoint platform for seamless information management. This is an approach that Captaris supports as it is the only way to truly achieve an environment of collaboration.

Yantus commented that together Captaris and Microsoft foster and enable process management through collaboration -- and that often process management evolves naturally once users are on the system and can see how easy (and beneficial) it is to automate business processes. "You might say it is an organic process where workgroups adapt to the tools they have and begin to optimize their tasks."

About Captaris

Captaris, Inc. is a leading provider of software products that automate document-centric business processes. Captaris specializes in document capture, recognition, routing, workflow and delivery. Captaris integrated solutions provide interoperability with leading line of business applications and technology platforms. Captaris products include RightFax, Captaris Workflow, Alchemy, FaxPress, DOKuStar, RecoStar, Single Click Entry and IDStar which are distributed through a global network of leading technology partners. Captaris customers include the entire Fortune 100 and the majority of Global 2000 companies. Headquartered in Bellevue, Washington, Captaris was founded in 1982 and is publicly traded on the NASDAQ Global Market under the symbol CAPA. http://www.captaris.com/.

(C)2008 All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language in any form by any means without the written permission of Captaris. The following are registered trademarks and trademarks of Captaris, Inc. and its subsidiaries: Captaris, the Captaris logo, Alchemy(R), Captaris Workflow(TM), RightDocs(TM), RightFax(R), RightFlow(TM) and RightStar(TM) in the US and/or other jurisdictions. FaxPress(TM) is a registered trademark of Castelle. RecoStar, DOKuStar, DOKuStar Capture Suite, Single Click Entry, and Invoice CENTER are registered trademarks and trademarks of Captaris Document Technologies GmbH. All other brand names and trademarks are the property of their respective owners.

Captaris, Inc.

CONTACT: Bob Menzies of Lages & Associates Inc., +1-949-453-8080,
bob@lages.com, for Captaris, Inc.

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

Orbitz for Business Unveils Top Markets Experiencing Increases, Decreases in Business Traveler SpendingLeading Online Travel Company Announces Deal with ExpenseWire in Continued Effort to Help Customers Manage Spend in Tightening Economy

CHICAGO, July 29 /PRNewswire-FirstCall/ -- Record costs for jet fuel and a soft economy have forced many airlines, business travelers and corporate travel programs to explore and implement aggressive cost-cutting measures in 2008. With industry data showing continued increases for both average domestic airfare and the average daily rate for hotels, Orbitz for Business (http://www.orbitzforbusiness.com/) today unveiled a ranking of the top business travel markets in which these costs have demonstrated price fluctuations, including increases and decreases in business traveler spending.

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

Orbitz for Business, a leading online corporate travel company serving more than one million business travelers, used year-to-date client bookings to determine this newest trend in traveler spending. For example, based on Orbitz for Business transactions, the market that has seen the greatest percentage increase dollar-wise in average airfare is Columbus, Ohio; while Salt Lake City, Utah, tops the list of cities on a percentage basis that have seen their average airfare decrease in 2008.

Top 10 Business Travel Markets Where Average Cost For Air Travel Has Increased or Decreased* Increased Decreased 1. Columbus, OH 1. Salt Lake City, UT 2. Toronto, Canada 2. Los Angeles, Calif. 3. New York City (all airports) 3. London, England 4. Houston, Texas 4. San Antonio, Texas 5. Newark, N.J. 5. St. Louis, MO 6. Minneapolis, Minn. 6. Atlanta, GA. 7. Indianapolis, Ind. 7. Fort Lauderdale, Fla. 8. Detroit, Mich. 8. Seattle, Wash. 9. Richmond, Va. 9. San Jose, Calif. 10. Cleveland, OH 10. Portland, Ore. * Based on percentage increases and decreases for 2008 Orbitz for Business bookings that included a minimum of 1,000 air transactions per market

The U.S. Bureau of Transportation Statistics shows the average domestic airfare increased 4.5 percent through the first quarter of 2008. Additionally, Consumer Price Index data lists the average domestic airfare increasing an additional 4.5 percent in June alone, its largest monthly increase since March 2000. In contrast, the average air transaction among Orbitz for Business' customers has increased less than two percent (1.55%) thus far (through July 23) in 2008 over the same time period last year.

Average Daily Rates -- Hotel

According to Smith Travel Research, a leading provider of data and information in the hospitality industry, the average daily rate for hotels in the U.S. is up five percent in 2008. But while some may be paying more for lodging, Orbitz for Business hotel bookings also reflect percentage decreases in spending (measured by average daily rate) in a number of top markets, including New York City, Boston, San Francisco and Dallas.

Top 10 Business Travel Markets Where Average Daily Hotel Rate Spending Has Increased or Decreased* Increased Decreased 1. Pittsburgh, Pa. 1. Dallas, Texas 2. Sacramento, Calif. 2. Las Vegas, Nev. 3. Toronto, Canada 3. San Diego, Calif. 4. Charlotte, N.C. 4. Phoenix, Ariz. 5. Minneapolis, Minn. 5. New Orleans, La. 6. St. Louis, MO. 6. Cleveland, OH 7. Orlando, Fla. 7. Baltimore, MD. 8. Tampa, Fla. 8. San Francisco, Calif. 9. Columbus, OH 9. New York City 10. Washington, D.C. 10. Boston, Mass. * Based on percentage increases and decreases for 2008 Orbitz for Business bookings that included a minimum of 1,000 hotel room nights per market

A recent Orbitz for Business and Business Traveler Magazine survey found that more than two-thirds (68%) of travelers say they are now staying at less-expensive/lower star-rated hotels as a means to save money.

"It's interesting that in some key markets where customers are spending more on airfare their hotel spend is down, with New York City serving as a prime example," said Dean Sivley, COO and senior vice president, Orbitz for Business. "Some spending increases are inevitable in our current travel climate, however we've been very proactive in integrating cost saving products and initiatives to help our customers best manage their travel programs."

Orbitz for Business Announces Agreement with ExpenseWire

Orbitz for Business also announced today an agreement with ExpenseWire(R), a Rearden Commerce company, to provide its leading expense management solution to Orbitz for Business customers. ExpenseWire and Orbitz for Business will be providing seamless integration from Orbitz for Business travel bookings, giving customers valuable benefits including:

-- Credit Card Integration -- users can set up personal and corporate cards to move transactions directly from credit cards to expense reports.

-- Integrated Travel Itineraries -- integration allows expense reports to be created automatically based on trips and itineraries.

By pre-populating expense reports with trip and credit card information, the ExpenseWire solution will provide companies greater control of travel and entertainment expenses. ExpenseWire is the latest tool that will be integrated by Orbitz for Business, and is designed to reduce costs and help customers manage an optimally efficient travel program.

"The automatic matching of booked travel rates with those being charged through credit cards and expense reporting is a tremendous time-saver and benefit for our customers, further ensuring accuracy and control," Sivley said. "ExpenseWire is a tool, along with a number of other offerings we've launched this year, that's helping many of our customers achieve record-high adoption levels and increased cost savings in a challenging economic environment."

In 2008 alone, Orbitz for Business has implemented an array of products, tools and resources to help corporate travel programs best manage spending, while continuing to conduct business travel. In addition to ExpenseWire, Orbitz for Business recently launched the following:

-- Southwest Airlines content -- the addition of another leading low-cost carrier, offering service to 64 cities in 32 states. Orbitz for Business is one of the only online companies that provides managed corporate customers the ability to load Southwest's Rapid Rewards accounts into their corporate traveler profiles. Southwest Airlines is currently available to Orbitz for Business -- advanced policy customers only, and planned to be available for all Orbitz for Business customers in Q3 2008.

-- Online Meetings Management and Event Planning -- gives customers desktop control over meeting and event planning; delivers cost savings, seamless travel booking functionality and more.

-- Real-time Reporting -- gives travel administrators greater cost control through data reporting and tracking, and the latest dashboard technology to improve travel spend. Offers customers data consolidation, payment card data and access to advanced business intelligence.

The first quarter of 2008 was Orbitz for Business' best ever in terms of new business sold, and followed the fourth quarter of 2007, in which the company doubled its new business from the previous year.

"This is a time when I believe more and more companies are recognizing the true value of a managed corporate travel program and a strategic partner like Orbitz for Business," Sivley said.

About Orbitz for Business

Orbitz for Business (http://www.orbitzforbusiness.com/) is the corporate travel brand of Orbitz Worldwide. Launched in 2002, Orbitz for Business was one of the first full-service managed business travel programs offered by an online agency. Orbitz for Business includes a portfolio of business travel products for small to large companies. Its products include self-managed services for small business, managed travel services with fulfillment and service support and international capabilities.

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 ExpenseWire

The ExpenseWire(R) application sets a new bar for expense management. It simplifies and automates the process of filing, reviewing, approving and reimbursing employee expense reports online. It provides organizations the business insight and process control they require to reduce costs and strategically manage expenses. ExpenseWire's on-demand solution can be deployed quickly and integrates easily with travel booking tools and other third party applications. ExpenseWire(R) is a brand of Rearden Commerce, Inc. (http://www.reardencommerce.com/). To learn more about how ExpenseWire delivers on the promise of expense automation, visit http://www.expensewire.com/.

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

CONTACT: Jim Cohn of Orbitz Worldwide, +1-312-260-8413,
Jim.cohn@orbitz.com; or Nancy Bjorson of Brodeur Partners, +1-202-775-2648,
nbjorson@brodeur.com, for Orbitz for Business

Web site: http://www.orbitzforbusiness.com/
http://www.orbitz.com/
http://www.reardencommerce.com/

CGI expands Q3 2008 Net earnings from continuing operations by 28% fueled by growth in revenue and bookingsStock Market Symbols GIB.A (TSX) GIB (NYSE)Q3 2008 year-over-year highlights from continuing operations:- Revenue of $950.5 million, up 6.5% on a constant currency basis; - Earnings before taxes of $106.0 million, up 10.1%; - Net earnings of $81.7 million, up 27.7%; - Net earnings margin of 8.6%, up from 7.0%; - Diluted EPS of 25 cents, up 31.6%; - Cash generated from operating activities in Q3 2008 of $106.3 million; - Investments of $109.3 million in share repurchases and net debt reduction; - Bookings of $1.01 billion, up 25%.Note to Reader: Q3 F2008 MD&A, financial statements and accompanying notes may each be found at www.cgi.com and have been filed with both Sedar in Canada and Edgar in the U.S.

MONTREAL, July 29 /PRNewswire-FirstCall/ -- CGI Group Inc. (TSX: GIB.A; NYSE: GIB) reported fiscal 2008 third quarter revenue today of $950.5 million which excludes $19.8 million of revenue from discontinued operations. Year-over-year revenue growth on a constant currency basis was 6.5%. Relative to the same year ago period, foreign exchange fluctuations negatively impacted the Company's revenue by $23.3 million, or 2.5% of revenue.

Earnings before taxes from continuing operations were $106.0 million or 11.2% of revenue representing an improvement of 10.1% compared with $96.3 million in the third quarter of 2007.

Net earnings from continuing operations in Q3 2008 were $81.7 million or 8.6% of revenue compared with $64.0 million or 7.0% of revenue in the same quarter last year. This represents a 27.7% year-over-year increase.

Diluted earnings per share from continuing operations in the third quarter were 25 cents. This compares with 19 cents in the same period last year.

Net earnings from continuing operations in Q3 included $10.8 million which was previously provisioned for income taxes and is no longer required. Excluding this, the net earnings margin from continuing operations was 7.5% and diluted EPS from continuing operations was 22 cents per share.

The Company generated $106.3 million in cash from its continuing operating activities, or 11.2% of revenue.

------------------------------------------------------------------------- In millions of Canadian dollars except when noted Nine Nine Figures presented are from months months continuing operations ended ended Q3 Q3 June 30, June 30, F2008 F2007 2008 2007 ------------------------------------------------------------------------- Revenue $ 950.5 $ 914.0 $ 2,777 $ 2,730 ------------------------------------------------------------------------- Adjusted EBIT $ 111.0 $ 103.8 $ 324.8 $ 304.5 Margin 11.7% 11.4% 11.7% 11.2% ------------------------------------------------------------------------- Earnings before taxes (EBT) $ 106.0 $ 96.3 $ 306.2 $ 253.6 Margin 11.2% 10.5% 11.0% 9.3% ------------------------------------------------------------------------- Net earnings $ 81.7 $ 64.0 $ 222.7 $ 169.6 Margin 8.6% 7.0% 8.0% 6.8% ------------------------------------------------------------------------- Earnings per share (diluted) - in $ $ 0.25 $ 0.19 $ 0.68 $ 0.55 ------------------------------------------------------------------------- Weighted average number of outstanding shares (diluted) 320,745,197 335,529,373 325,850,193 333,414,858 ------------------------------------------------------------------------- Interest on long-term debt $ 6.4 $ 9.4 $ 20.9 $ 33.5 ------------------------------------------------------------------------- Net debt to capitalization ratio 15.6% 17.7% 15.6% 17.7% ------------------------------------------------------------------------- Days of sales outstanding (DSO) 48 42 48 42 ------------------------------------------------------------------------- Bookings $ 1,005 $ 807 $ 3,216 $ 2,435 -------------------------------------------------------------------------

During the quarter, the Company booked $1.01 billion in new contract wins, extensions and renewals, resulting in a book-to-bill of 104% in the quarter. After nine months of fiscal 2008, the Company has reached booking levels of more than $3.2 billion, equivalent to the total bookings realized in fiscal 2007. Backlog at the end of Q3 stood at $12.03 billion or 3.1 times annual revenue.

"Our focus on fundamentals and on the execution of our profitable growth business plan continues to yield positive results for all stakeholders," said Michael E. Roach, President and Chief Executive Officer. "We are in pursuit of numerous opportunities in our targeted geographies and verticals which will contribute to profitable growth and the global expansion of CGI."

The Company continues to enhance its financial flexibility by investing in its Build and Buy profitable growth strategy, share buy backs and debt reduction. As part of its Normal Course Issuer Bid, the Company repurchased for cancellation 9.0 million subordinate class A shares during the third quarter for a total investment of $97.8 million. After nine months, more than 16.7 million shares have been repurchased and cancelled representing an investment of $181.6 million.

In addition, long-term debt decreased by $11.5 million during the quarter. At the end of June 2008, net debt was reduced to $369.9 million, improving the Company's net debt to capitalization ratio to 15.6%.

Subsequent Event

On July 21, 2008, the Company announced the divestiture of a Canadian business process unit providing claims adjustment and risk management services to the Canadian property and casualty (P&C) insurance industry. With approximately $70 million in annual revenue, the transaction is expected to close in early August 2008.

This business unit had been reclassified as discontinued operations, and the Company's results include a net impairment of $3.0 million taken during the quarter, bringing diluted EPS on a GAAP-basis to 24 cents. The results of this operation have been removed from both the Q3-2008 results as well as CGI's historical figures in order to accurately reflect the comparative performance of our continuing operations.

Third Quarter F2008 Results Conference Call

Management will host a conference call to discuss results at 8:00 a.m. Eastern time this morning. Participants may access the call by dialing 1-866-225-0198 or on the Web at http://www.cgi.com/. Supporting slides for the call will also be available. For those unable to participate on the live call, a podcast and copy of the slides will be archived for download at http://www.cgi.com/.

About CGI

Founded in 1976, CGI Group Inc. is one of the largest independent information technology and business process services firms in the world. CGI and its affiliated companies employ approximately 27,000 professionals in over 100 offices across 16 countries. CGI provides end-to-end IT and business process services to clients worldwide from offices in Canada, the United States, Europe, Asia Pacific as well as from centers of excellence in North America, Europe and India. CGI's annual revenue run rate stands at $3.8 billion and at June 30th, 2008, CGI's order backlog was $12.03 billion. CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the S&P/TSX Composite Index as well as the S&P/TSX Capped Information Technology and MidCap Indices. Website: http://www.cgi.com/.

Use of Non-GAAP Financial Information

CGI reports its financial results in accordance with GAAP. However, management believes that certain non-GAAP measures provide useful information to investors regarding the Company's financial condition and results of operations as they provide additional measures of its performance. Explanations as well as a reconciliation of these non-GAAP measures with GAAP financial statements are provided in the MD&A which is posted on CGI's website, and filed with SEDAR and EDGAR.

Forward-Looking Statements

All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and are "forward-looking information" within the meaning of sections 138.3 and following of the Ontario Securities Act. These statements and this information represent CGI's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements or forward-looking information. These factors include and are not restricted to the timing and size of new contracts, acquisitions and other corporate developments; the ability to attract and retain qualified members; market competition in the rapidly-evolving IT industry; general economic and business conditions, foreign exchange and other risks identified in the MD&A, in CGI's Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at http://www.sec.gov/), the Company's Annual Information Form filed with the Canadian securities authorities (filed on SEDAR at http://www.sedar.com/), as well as assumptions regarding the foregoing. The words "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan," and similar expressions and variations thereof, identify certain of such forward-looking statements or forward-looking information, which speak only as of the date on which they are made. In particular, statements relating to future performance are forward-looking statements and forward-looking information. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information. You will find more information about the risks that could cause our actual results to significantly differ from our current expectations in the Risks and Uncertainties section.

CGI GROUP INC.

CONTACT: Lorne Gorber, Vice-President, Global Communications and Investor
Relations, (514) 841-3355

Teltronics, Inc. Collaborates With GE Security to Help Improve Communication and Security for Educational FacilitiesTeltronics Cerato(R) IP voice communications platform offers productivity enhancing features, applications and a clear and cost-effective migration path to Voice over Internet Telephony (VoIP) for GE Security's StarCall(TM) intercommunication & timekeeping solution

SARASOTA, Fla., July 29 /PRNewswire-FirstCall/ -- Teltronics, Inc. (BULLETIN BOARD: TELT) , a leading supplier of voice and data communication solutions and services, today announces it was selected by GE Security, Inc., a business of GE Enterprises Solutions , to provide StarCall iPLUS, a powerful IP-based, SIP-compliant multimedia platform and the next generation of its StarCall intercommunication and timekeeping solution.

GE Security will private label the Teltronics Cerato IP system to give customers a fully integrated, Linux-based solution created to protect customers' communications investment, reduce communications costs and improve productivity through advanced applications. GE Security plans to distribute the new offering, StarCall iPLUS, through its sound and communications partners.

Teltronics' Ewen Cameron states, "This relationship not only provides an extra level of comfort in support of on-site safety for educational institutions but increases productivity and efficiency -- saving time and money. We believe that Teltronics' four decades of communications industry experience and the strength and reliability found in our Cerato voice communications solutions provide GE Security's StarCall iPLUS a new level of sophistication and convenience to accommodate the required needs in a school setting."

"Collaboration with Teltronics has resulted in our StarCall iPLUS offering -- the best-in-class solution for improving communications within educational facilities," declares Steve Hein, general manager, fire and life safety products, GE Security. "Teltronics' industry knowledge and commitment to working with us has resulted in a solid, non-proprietary application that is fully integrated with our StarCall product."

The StarCall iPLUS empowers communications and security processes at educational institutions with a package of cost-effective features designed to maximize efficiency, including robust intercom and paging, reliable timekeeping control, flexible program source distribution, powerful event processing, intuitive software tools and a fully integrated mass communication system. With an additional suite of productivity-enhancing offerings such as in-class phones, unified messaging, absence reporting, emergency reporting, call routing control, homework hotline, mass recall and mass notification, StarCall iPLUS enhances the learning experience and fosters a collaborative school environment for school staff, parents and students.

About Teltronics:

Teltronics, Inc. is a leading, global provider of innovative communications solutions that enable our customers to increase revenues, decrease costs and improve productivity. The Company designs, develops and manufactures electronic equipment and applications software systems that enhance the performance of communications networks. Teltronics develops VoIP and digital voice communications platforms and software and contact center solutions for small-to-large size businesses and government facilities. Teltronics is also recognized as a leading provider of network management solutions enabling enterprises and service providers to effectively monitor and maintain voice and data networks. All products are manufactured in an ISO 9001:2000 certified factory and the Company serves as a contract manufacturing partner to customers nationwide. Further information regarding Teltronics is available at the web site, http://www.teltronics.com/ .

About GE's Security Business

GE Security, Inc., a wholly owned indirect subsidiary of the General Electric Company , is a leading supplier of security and life safety technologies, with operations in more than 35 countries and $1.8 billion in annual sales. GE Security offers one of the industry's broadest product portfolios, including access control, explosives and narcotics detection, fire detection, intrusion, key management and video surveillance. GE Security's products are used to protect people and property across a wide range of industries, including aviation, banking and finance, education, government and military, healthcare, law enforcement, residential, retail, stadiums and event venues, and transportation.

GE Security was honored with Frost & Sullivan's 2008 North American Video Surveillance Solutions Company of the Year Award for its industry leading video portfolio and integration strategy vision and execution. For more information about GE Security, please visit http://www.gesecurity.com/ .

GE Security, making the world safer.

A number of statements contained in this press release are forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as we "believe," "anticipate," "expect," or words of similar import. Similarly, statements that describe our future plans, objectives, strategies or goals are also forward-looking statements. These forward-looking statements involve a number of risks and uncertainties that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited to, the timely development and market acceptance of products and technologies, competitive market conditions, payment of the consideration under our acquisition agreements, successful integration of acquisitions and the failure to realize the expected benefits of such acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses, the ability to make payments under our outstanding indebtedness, the ability to pay dividends on our preferred stock, risks relating to foreign currency translations, and other factors described in the Company's filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Teltronics, Inc.

CONTACT: Ewen R. Cameron, President & CEO of Teltronics, Inc.,
+1-941-753-5000, ecameron@teltronics.com

Web site: http://www.teltronics.com/
http://www.gesecurity.com/

Autodesk Vice President Finance Sue Pirri to Present at Pacific Crest Technology Leadership Forum

SAN RAFAEL, Calif., July 29 /PRNewswire-FirstCall/ --

WHAT: Autodesk, Inc. today announced that Sue Pirri, vice president finance, will present at the Pacific Crest Technology Leadership Forum in Vail, Colorado WHEN: Monday, August 4 at 11:30 a.m. Mountain Time DETAILS: A live webcast and audio archive will be available on http://www.autodesk.com/investors. CONTACT: For more information, please call Autodesk Investor Relations at 415-507-6705. About Autodesk

Autodesk, Inc. is the world leader in 2D and 3D design software for the manufacturing, building and construction, and media and entertainment markets. Since its introduction of AutoCAD software in 1982, Autodesk has developed the broadest portfolio of state-of-the-art digital prototyping solutions to help customers experience their ideas before they are real. Fortune 1000 companies rely on Autodesk for the tools to visualize, simulate and analyze real-world performance early in the design process to save time and money, enhance quality and foster innovation. For additional information about Autodesk, visit http://www.autodesk.com/.

Note: Autodesk is a registered trademark of Autodesk, Inc., in the US and/or other countries. All other brand names, product names or trademarks belong to their respective holders.

Investors: David Gennarelli, david.gennarelli@autodesk.com, 415-507-6033 Katie Blanchard, katherine.blanchard@autodesk.com, 415-507-6034 Press: Pam Pollace, pam.pollace@autodesk.com, 415-547-2441 Colleen Rubart, colleen.rubart@autodesk.com, 415-547-2368

Autodesk, Inc.

CONTACT: investors, David Gennarelli, david.gennarelli@autodesk.com,
+1-415-507-6033, or Katie Blanchard, katherine.blanchard@autodesk.com,
+1-415-507-6034, or press, Pam Pollace, pam.pollace@autodesk.com,
+1-415-547-2441, or Colleen Rubart, colleen.rubart@autodesk.com,
+1-415-547-2368, all of Autodesk, Inc.

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

Simply Wireless Deploys SMS Messaging Campaigns and Mobile Internet Sites to Drive Customer Acquisition and RetentionWireless retailer to use 2ergo's Via and Swift mobile technology products to power mobile marketing initiatives

ARLINGTON, Va., July 29 /PRNewswire/ -- Simply Wireless (http://www.simplywireless.com/), one of the nation's leading wireless retailers, today announced an agreement with 2ergo (http://www.2ergo.com/), a leading mobile marketing products company, to create integrated SMS campaigns and mobile Internet sites that will help the company communicate with new and existing customers and ultimately contribute to the retailer's acquisition and retention efforts. This is the first time that Simply Wireless will be using text messaging and mobile Internet sites as a marketing tool.

Simply Wireless is licensing two of 2ergo's professional-grade, self-service products to assist in the creation of its mobile marketing initiatives. Via allows the company to quickly set up targeted SMS campaigns, while Swift gives Simply Wireless the ability to easily create mobile Web pages in support of its marketing initiatives. Both products provide extensive tracking and reporting capabilities. By using 2ergo's mobile products, Simply Wireless will be able to engage its existing customer base to upsell products and services, as well as connect with new consumers in a cost-effective and impactful way.

"As a leading provider of mobile products and a company that is dedicated to customer service, it only made sense that we deploy an innovative mobile platform as a marketing tool," said Steven Qureshi, co-CEO of Simply Wireless. "Text messaging and mobile Internet sites are becoming increasingly popular, and we see this means of communication as a way to quickly and easily reach out to our base of loyal customers. With the help of 2ergo technology, we will improve acquisition and retention, reduce churn and increase the lifetime value of our customers."

Specific campaigns will include opt-in SMS reminder alerts within a month of a customer's contract renewal date and targeted promotions for a new device or plan. The SMS messages will provide a link to a mobile Internet site for more information, details on the nearest Simply Wireless retail outlet for purchase or a phone number to reach customer service.

In addition to reaching out to its existing opt-in customer base, Simply Wireless also plans to grow a new base of potential customers by advertising the short code, SIMPLY, through traditional media such as newspapers, magazines and in-store banners. Consumers will be prompted to text in the keyword to sign up for promotions and coupons from Simply Wireless.

"We're thrilled to have Simply Wireless on board and are excited about the innovative campaigns being created with our products to drive the lifetime value of its customer base," said Guy Vidra, managing director of 2ergo Americas. "Taking that innovation one step further, Simply Wireless is using marketing co-op money from a Tier 1 U.S. carrier to help offset the costs of these campaigns. This is the first indirect wireless retailer client for 2ergo, and we are looking forward to collective and continued success."

About Simply Wireless

Founded in 1997, Simply Wireless is a leading national provider of wireless technology for consumers and businesses offering Alltel, Cellular One, Sprint, Suncom and T-Mobile as carrier choices. Trained experts offer customers the best, most up-to-date and understandable council on wireless phones, applications, accessories and service plans. Simply Wireless has a presence in over 100 retail stores, online via various affiliate sites, on the Home Shopping Network and via an indirect sales force. For more information, visit http://www.simplywireless.com/.

About 2ergo Americas Inc. (formerly Proteus)

2ergo Americas is a veteran provider of mobile marketing products and solutions with carrier connectivity around the globe. From SMS messaging campaigns to mobile Internet sites to entertainment content storefronts, 2ergo Americas develops products to help companies create innovative marketing programs, connect with consumers, drive additional revenue and build their brands. Clients include such major media brands as FOX, HBO, Disney, NBC Universal, National Geographic and Scripps Networks, as well as large corporations such as AT&T, MasterCard and Motorola. Based in Arlington, VA, with offices in New York, Buenos Aires, Mexico City and Bogota, 2ergo Americas is a wholly owned subsidiary of U.K.-based 2ergo Group (AIM: RGO). For more information, visit http://www.2ergo.com/.

MEDIA CONTACT Michael Volpatt 415-994-8864

2ergo Americas Inc.

CONTACT: Michael Volpatt, +1-415-994-8864, for 2ergo Americas Inc.

Web site: http://www.2ergo.com/
http://www.simplywireless.com/

Powell Industries Announces Fiscal 2008 Third Quarter Earnings Release and Conference Call Schedule

HOUSTON, July 29 /PRNewswire-FirstCall/ -- Powell Industries, Inc. , a leading manufacturer of equipment and systems for the control, distribution and management of electrical and other dynamic processes, today announced that it plans to release fiscal 2008 third quarter results on Wednesday, August 6, 2008 at 6:00 a.m. eastern time. In conjunction with the release, Powell Industries has scheduled a conference call, which will be broadcast live over the Internet, for Wednesday, August 6, 2008 at 11:00 a.m. eastern time.

What: Powell Industries Third Quarter Earnings Conference Call When: Wednesday, August 6, 2008 - 11:00 a.m. eastern time /10:00 a.m. central time How: Live via phone by dialing 303-262-2142 and asking for the Powell Industries call at least 10 minutes prior to the start time, or live over the Internet by logging on to the web at the address below Where: http://www.powellind.com/

A telephonic replay of the conference call will be available through August 13, 2008 and may be accessed by calling 303-590-3000 using passcode 11117714#. A web cast archive will also be available at http://www.powellind.com/ shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at DRG&E at 713-529-6600 or email dmw@drg-e.com.

Powell Industries, Inc., headquartered in Houston, designs, manufactures and packages systems and equipment for the control, distribution and management of electrical energy and other dynamic processes. Powell provides products and services to large industrial customers such as utilities, oil and gas producers, refineries, petrochemical plants, pulp and paper producers, mining operations, commuter railways and other vehicular transportation facilities. For more information, please visit http://www.powellind.com/.

Contacts: Don R. Madison, CFO Powell Industries, Inc. 713-947-4422 Ken Dennard / ksdennard@drg-e.com Karen Roan / kcroan@drg-e.com DRG&E / 713-529-6600

Powell Industries, Inc.

CONTACT: Don R. Madison, CFO of Powell Industries, Inc.,
+1-713-947-4422; or Ken Dennard, ksdennard@drg-e.com, or Karen Roan,
kcroan@drg-e.com, both of DRG&E, +1-713-529-6600, for Powell Industries, Inc.

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

NeXplore Search Tops One Million Unique Visitors in May and JuneNeXplore Marketing Strategies Drive Visitors to New Search Engine

FRISCO, Texas, July 29 /PRNewswire-FirstCall/ -- NeXplore Corporation (Pink Sheets: NXPC) today announced that NeXplore Search had more than one million unique visitors in both May and June according to web-analytics company Compete.com. With its public beta launch released in January of this year, NeXplore Search is an innovative Web 2.0 search destination optimized for a superior end-user experience, rich-media display and social network integration.

Additional significant growth achievements for NeXplore Search during May, June and July of 2008, according to data provided by Alexa.com, include a reach increase of 1,298% to 0.00414% over the prior three-month period; and a traffic ranking increase of 389,679 over the prior three-month period for a current three-month traffic rank average of 46,661. Alexa.com defines reach as the percentage of all Internet users who visit a given website. Traffic rank, as computed by Alexa.com, is based on a value derived from a website's reach and number of page views averaged over a period of time.

NeXplore Corporation executives credit an aggressive marketing campaign focused on reaching sports fans, along with a selection of integrated viral marketing, Internet advertising and other strategies, for driving the popularity of NeXplore Search.

Anchoring NeXplore's marketing strategy targeting sports enthusiasts is the company's ongoing partnership with Arena Media Networks ("AMN") whereby a series of 45-second video ads showcasing signature features of NeXplore Search ran throughout the 2007 baseball season and the 2008 NBA and NHL seasons on hundreds of AMN's 50-inch digital plasma displays strategically located in high-traffic areas of marquee baseball stadiums, basketball venues and hockey arenas across the country.

Scott Grizzle, chief marketing officer for NeXplore Corporation, said, "We've focused much of our initial marketing strategy on enticing sports fans, particularly those who attend professional sporting events, to try out NeXplore Search. We believe -- and marketing research bears this out -- that these individuals tend to be early adopters of technology, very socially active and highly influential among their peers. These characteristics are spot-on for a viral campaign designed to drive adoption of a new Web-based product. In addition to targeting sports fans, we have made a significant investment in an aggressive Internet advertising campaign through various publisher networks. We are very pleased with the steep growth in NeXplore Search users over such a short period of time."

Also in line with its strategy of driving awareness and adoption of NeXplore Search among fans of professional sports, NeXplore Corporation recently signed former Dallas Cowboys great Darren Woodson and acclaimed center for the Detroit Red Wings Pavel Datsyuk as company's spokesmen. Woodson and Datsyuk actively serve as spokespersons for NeXplore Search and assist with various business development activities.

Said Edward Mandel, chief executive officer for NeXplore Corporation, "We are very pleased but not at all surprised by the traction NeXplore Search is gaining among Internet users. Concurrent with our sports-fan marketing strategy, we've launched a revenue-sharing program for partnering with select high-traffic Web destinations and organizations that embed NeXplore Search into their Web properties; and we've acquired ClickCaster.com, a very popular website that provides tools for fast-and-easy audio and video podcast creation, publishing and management."

Mandel added, "What we're seeing now in terms of user adoption of NeXplore Search is very encouraging, but truth be told, we've only just begun. We've dedicated quite a bit of time and resources to building and refining NeXplore Search, and we're now seeing this effort bear fruit. Moving forward, we will continue to add new features that enhance and further differentiate the NeXplore Search experience, including integrating social networking components. We will continue to execute creative viral marketing campaigns and aggressive public relations strategies in support of our firmly established business and revenue growth goals."

About NeXplore Corporation

NeXplore Corporation (Pink Sheets: NXPC) improves the online experience by providing Web tools and destinations that empower people to drive and define a World Wide Web perfectly suited for their unique needs, interests and online pursuits. For advertisers, NeXplore offers a full array of search, display and interactive advertising products to reach and engage targeted consumers. For more information about NeXplore, visit http://www.nexplorecorporation.com/.

Forward-Looking Statements: A number of statements contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include, but are not limited to: our ability to commercialize a proprietary product, our ability to generate product sales and operating profits, potential vulnerability of technology obsolescence, potential competitive products by better capitalized companies, potential difficulty in managing growth, dependence on key personnel, and other risks which will be described in future company Securities and Exchange Commission filings.

Investor Contact: Media Contact: Scott Grizzle Rory Doherty (214) 432-0637 (214) 459-6321 sgrizzle@NeXplore.com rdoherty@NeXplore.com

NeXplore

CONTACT: Investors, Scott Grizzle, +1-214-432-0637,
sgrizzle@NeXplore.com, or Media, Rory Doherty, +1-214-459-6321,
rdoherty@NeXplore.com, both of NeXplore

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

Netlist Sets Date for 2008 Second Quarter and Six-Month Results Release and Conference Call

IRVINE, Calif., July 29 /PRNewswire-FirstCall/ -- Netlist, Inc. announced today that it will report its financial results for the second quarter and six months ended June 28, 2008, at 4:05 p.m. Eastern Time on Thursday, August 7, and will host a conference call at 5:00 p.m. Eastern Time that same day.

Conference Call Toll free dial-in number: 1-866-394-5650 International dial-in number: 1-706-679-2542 * Conference ID: 57922060 Webcast

A live webcast and archived replay of the call can be accessed in the Events page of the Investor Relations section of Netlist's website at http://www.netlist.com/. The online archive will be available for two weeks.

About Netlist, Inc.

Netlist designs and manufactures high-performance memory subsystems for the server and high-performance computing and communications markets. The Company's memory subsystems are developed for applications in which high-speed, high-capacity memory, functionality, small form factor, and heat dissipation are key requirements. These applications include tower-servers, rack-mounted servers, blade servers, high-performance computing clusters, engineering workstations, and telecommunication equipment. Netlist maintains its headquarters in Irvine, California with manufacturing facilities in Irvine and in Suzhou, China.

Contact: Allen & Caron Inc Jill Bertotti jill@allencaron.com (949) 474-4300

Netlist, Inc.

CONTACT: Jill Bertotti of Allen & Caron Inc., +1-949-474-4300,
jill@allencaron.com, for Netlist, Inc.

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

Ness Technologies Announces Record Second Quarter 2008 Financial ResultsOperating Income Rises 107% and Net Income Rises 94% Year-Over-Year, to GAAP $0.21 Per Diluted Share, on a 36% Increase in Revenues, With Strong Operating Cash Flows

HACKENSACK, New Jersey, July 29 /PRNewswire-FirstCall/ -- Ness Technologies, Inc. , a global provider of IT services and solutions, today announced financial results for the quarter ended June 30, 2008.

Second Quarter 2008 Highlights: - Revenues were an all-time record $170.6 million, up 36% year-over-year. - Operating income was an all-time record $11.2 million, up 107% year-over-year. - Net income was $8.1 million, up 94% year-over-year. - GAAP diluted net earnings per share was $0.21, compared to $0.11 in the second quarter of 2007. - Non-GAAP diluted net earnings per share was $0.25, compared to $0.13 in the second quarter of 2007 (1). - Operating cash flows for the quarter were a second quarter record $13.0 million. - Backlog as of June 30, 2008 was a record $799 million, up 23% compared to $650 million as of June 30, 2007.

"We had a great quarter, executing well on our strategy and setting several new records, in what is normally a seasonally weak quarter for Ness," said Sachi Gerlitz, president and chief executive officer of Ness Technologies. "Our Ness Europe and Ness Israel operations continued to perform well, while our Software Product Labs business improved markedly from first quarter. In this quarter, we also see the benefit from our increased focus on high-margin business around the world. With continued backlog growth and a strong sales pipeline, we remain optimistic about the future.

"Second quarter did have some macroeconomic challenges, particularly in terms of currency headwinds; despite this, we did well - through good performance and efficient operations," said Ofer Segev, executive vice president and chief financial officer. "We are particularly pleased about our record second quarter cash flows from operations. Our balance sheet and liquidity are strong, and we feel good about the future."

Guidance

For the full year 2008, Ness reiterates its guidance of GAAP diluted net earnings per share in the range of $1.00 to $1.05, and increases its revenue guidance to the range of $670 million to $695 million.

The recently announced sale to SAP AG of the company's Israeli SAP sales and distribution division did not negatively impact guidance, as Ness anticipates that the future reduction in revenue and earnings will be offset by other factors, including stronger than expected revenue growth. These factors, as well as foreign exchange effects, account for the increase in revenue guidance.

In addition, Ness expects to recognize a gain of $0.18 to $0.23 per diluted share in the third quarter, upon the closing of the sale of its Israeli SAP sales and distribution division.

Conference Call Details

Sachi Gerlitz, president and chief executive officer of Ness Technologies, and Ofer Segev, executive vice president and chief financial officer, will also conduct a conference call to discuss the second quarter 2008 results. The call, which will be simultaneously webcast, will begin at 8:30 AM Eastern Time / 5:30 AM Pacific Time on Tuesday, July 29, 2008.

To access the Ness Technologies second quarter 2008 earnings conference call, participants in North America should dial 1-800-399-0427 and international participants should dial +1-706-643-1624. A live audio webcast of the conference call will be available on the investor relations page of the Ness Technologies corporate web site at http://investor.ness.com/. Please visit the web site at least 15 minutes early to register for the teleconference webcast and download any necessary audio software. A replay of the call will be available on the web site approximately two hours after the conference call is completed.

About Ness Technologies

Ness Technologies is a global provider of end-to-end IT services and solutions designed to help clients improve competitiveness and efficiency. The Ness portfolio of solutions and services consists of software product development, including both offshore and near-shore outsourcing; system integration, application development and consulting; and software distribution. With over 7,800 employees, Ness maintains operations in 18 countries, and partners with numerous software and hardware vendors worldwide. For more information about Ness Technologies, visit http://www.ness.com/.

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Ness uses various non-GAAP measures of net income and earnings per share, including adjustments from results based on GAAP to exclude non-cash stock-based compensation expenses in accordance with SFAS 123R and amortization of intangible assets, net of taxes. Ness' management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Ness' on-going core operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.

Forward Looking Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often are preceded by words such as "believes," "expects," "may," "anticipates," "plans," "intends," "assumes," "will" or similar expressions. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Ness' actual results could differ materially from those anticipated in these forward looking statements as a result of various factors. Some of the factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the "Risk Factors" described in Ness' Annual Report of Form 10-K filed with the Securities and Exchange Commission on March 17, 2008. Ness is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of such changes, new information, subsequent events or otherwise.

NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME U.S. dollars in thousands (except per share data) Three months Six months ended ended June 30, June 30, 2007 2008 2007 2008 (Unaudited) (Unaudited) Revenues...................... ..$ 125,762 $ 170,586 $ 251,540 $ 330,318 Cost of revenues..................... . ... 89,677 117,995 179,353 232,385 Gross profit..............................36,085 52,591 72,187 97,933 Selling and marketing............................9,293 14,538 18,765 27,746 General and administrative..................... 21,367 26,817 41,281 48,922 Total operating expenses.......................... 30,660 41,355 60,046 76,668 Operating income........................... 5,425 11,236 12,141 21,265 Financial income (expenses), net............................ (74) (1,032) 315 (2,448) Other expense, net....................................(62) - (56) - Income before taxes on income............................ 5,289 10,204 12,400 18,817 Taxes on income............................ 1,126 2,114 2,522 3,833 Net income........................... $ 4,163 $ 8,090 $ 9,878 $ 14,984 Basic net earnings per share.............................. $ 0.11 $ 0.21 $ 0.25 $ 0.38 Diluted net earnings per share.............................. $ 0.11 $ 0.21 $ 0.25 $ 0.38 Weighted average number of shares (in thousands) used in computing basic net earnings per share...............................39,041 39,214 38,957 39,208 Weighted average number of shares (in thousands) used in computing diluted net earnings per share...............................39,314 39,426 39,325 39,462 NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES RECONCILIATION OF SUPPLEMENTAL FINANCIAL INFORMATION U.S. dollars in thousands (except per share data) Three months Six months ended ended June 30, June 30, 2007 2008 2007 2008 (Unaudited) (Unaudited) GAAP net income............................$ 4,163 $ 8,090 $ 9,878 $ 14,984 Stock-based compensation..................... 228 648 604 1,539 Amortization of intangible assets........................... 900 1,487 1,770 2,957 Taxes on stock-based compensation and amortization of intangible assets........................... (192) (486) (360) (962) Non-GAAP net income............................$ 5,099 $ 9,739 $ 11,892 $ 18,518 GAAP diluted net earnings per share.................. $ 0.11 $ 0.21 $ 0.25 $ 0.38 Stock-based compensation.................... 0.01 0.02 0.01 0.04 Amortization of intangible assets........................ 0.02 0.04 0.05 0.07 Taxes on stock-based compensation and amortization of intangible assets............................ (0.00) (0.01) (0.01) (0.02) Non-GAAP diluted net earnings per share............................ .$ 0.13 $ 0.25 $ 0.30 $ 0.47 Weighted average number of shares (in thousands) used in computing non-GAAP diluted net earnings per share... 39,314 39,426 39,325 39,462 NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME U.S. dollars in thousands Three months Six months ended ended June 30, June 30, Segment Data: 2007 2008 2007 2008 (Unaudited) (Unaudited) Revenues: Ness North America..........................$ 26,313 $ 30,595 $ 52,414 $ 57,662 Technologies & Systems Group (TSG)............................. 13,212 14,277 27,365 30,815 Ness Europe 24,350 44,930 47,224 85,090 Ness Israel 49,169 52,034 99,769 103,336 Other 12,718 28,750 24,768 53,415 $ 125,762 $ 170,586 $ 251,540 $ 330,318 Operating Income (Loss): Ness North America $ 2,126 $ 2,021 $ 4,129 $ 3,116 Technologies & Systems Group (TSG)............................ 1,404 894 3,774 3,109 Ness Europe 1,737 4,491 3,188 8,974 Ness Israel 2,557 4,962 5,646 9,656 Other 815 2,184 1,408 1,972 Unallocated Expenses (3,214) (3,316) (6,004) (5,562) $ 5,425 $ 11,236 $ 12,141 $ 21,265 Geographic Data: Revenues: Israel.........................$ 63,307 $ 59,979 $ 123,940 $ 120,502 North America 29,368 45,006 63,756 86,920 Europe 27,407 58,368 52,708 108,599 Asia Pacific 5,680 7,233 11,136 14,297 $ 125,762 $ 170,586 $ 251,540 $ 330,318 NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Six months ended June 30, 2007 2008 (Unaudited) Cash flows from operating activities: Net income.................................. $ 9,878 $ 14,984 Adjustments required to reconcile net income to net cash provided by (used in) operating activities: Stock-based compensation-related expenses............................... 604 1,539 Currency fluctuation of long-term debt................................. 24 5 Depreciation and amortization..................... 5,853 8,426 Arbitration settlement............................... - (9,452) Loss on sale of property and equipment............................... 101 6 Excess tax benefits related to exercise of options................................... (308) - Decrease in trade receivables, net...................................... 1,153 4,364 Increase in unbilled receivables......................... (7,930) (3,372) Increase in other accounts receivable and prepaid expenses............................ (9,188) (971) Increase in work-in-progress.................... (883) (2,094) Decrease (increase) in long-term prepaid expenses............................ (771) 159 Deferred income taxes, net...................................... 454 3,674 Increase (decrease) in trade payables....................... (7,072) 268 Increase in advances from customers and deferred revenues............................. 2,625 8,374 Increase in other long-term liabilities.......................... - 341 Increase (decrease) in other accounts payable and accrued expenses.............................. 10 (9,611) Decrease in accrued severance pay, net................................ (500) (1,748) Net cash provided by (used in) operating activities..................... (5,950) 14,892 Cash flows from investing activities: Net cash paid for acquisition of a consolidated subsidiary.................. (2,495) - Proceeds from sale of cost investment......................... 1,866 - Additional payments in connection with acquisitions of subsidiaries in prior periods.................. (10,241) (5,973) Proceeds from maturity of short-term bank deposits............................... 1,036 2,655 Proceeds from sale of property and equipment.......................... 222 102 Purchase of property and equipment and capitalization of software developed for internal use.. (4,980) (6,539) Net cash used in investing activities........................ (14,592) (9,755) Cash flows from financing activities: Exercise of options............................... 2,273 165 Dividend to former shareholder of an acquired subsidiary............................ - (10,048) Excess tax benefits related to exercise of options........................... 308 - Short-term bank loans and credit, net................................... 3,979 4,523 Proceeds from long-term debt...................................... - 25,090 Principal payments of long-term debt.................................... (2,069) (1,972) Net cash provided by financing activities............................... 4,491 17,758 Effect of exchange rate changes on cash and cash equivalents............................. 2,100 (1,525) Increase (decrease) in cash and cash equivalents............................ (13,951) 21,370 Cash and cash equivalents at the beginning of the period............................. 46,675 43,097 Cash and cash equivalents at the end of the period................................ $ 32,724 $ 64,467 NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands December June 30, 31, 2007 2008 (Unaudited) CURRENT ASSETS: Cash and cash equivalents......................... $ 43,097 $ 64,467 Restricted cash.............................. 602 - Short-term bank deposits........................... 2,361 206 Trade receivables, net of allowance for doubtful accounts.................... 182,281 196,527 Unbilled receivables....................... 37,634 45,281 Other accounts receivable and prepaid expenses........................ 31,249 33,105 Work in progress.......................... 2,563 5,065 Total current assets............................... 299,787 344,651 LONG-TERM ASSETS: Long-term prepaid expenses and other assets............................. 8,014 8,230 Investments at cost................................. 564 655 Unbilled receivables......................... 8,919 11,860 Deferred income taxes, net ................................. 7,806 12,949 Severance pay fund.................................. 49,731 56,573 Property and equipment, net.................................. 34,072 37,442 Intangible assets, net................................. 17,011 15,147 Goodwill............................. 263,444 284,643 Total long-term assets.............................. 389,561 427,499 Total assets................ $ 689,348 $ 772,150 CURRENT LIABILITIES: Short-term bank credit............................... $ 2,819 $ 8,026 Current maturities of long-term debt................................ 1,662 3,084 Trade payables............................. 54,536 60,757 Advances from customers and deferred revenues............................ 27,297 40,378 Other accounts payable and accrued expenses............................. 120,113 108,255 Total current liabilities.......................... 206,427 220,500 LONG-TERM LIABILITIES: Long-term debt, net of current maturities.......................... 47,191 72,024 Other long-term liabilities .................................... 4,864 5,808 Deferred income taxes............................. 2,228 1,855 Accrued severance pay................................... 57,465 63,377 Total long-term liabilities.......................... 111,748 143,064 Total stockholders' equity............................. 371,173 408,586 Total liabilities and stockholders' equity........................ $ 689,348 $ 772,150 ---------------------------------

(1) See "Use of Non-GAAP Financial Information" below for more information regarding Ness' use of non-GAAP financial measures.

Ness Technologies media contact: David Kanaan USA: +1-888-244-4919 Intl: +972-3-540-8188 Email: media.int@ness.com Ness Technologies investor contact: Drew Wright USA: +1-201-488-3262 Email: investor@ness.com

Ness Technologies Inc

CONTACT: Ness Technologies media contact: David Kanaan, USA:
+1-888-244-4919, Intl: +972-3-540-8188, Email: media.int@ness.com; Ness
Technologies investor contact: Drew Wright, USA: +1-201-488-3262, Email:
investor@ness.com

VODone Appointed Sole New Media Partner by BIMC to Develop the Olympics Live Channel & Explore Internet Advertising Income Streams

HONG KONG, July 29 /Xinhua-PRNewswire/ -- VODone Limited ("VODone" or the "Company") (SEHK code: 82.HK), a leading tele-media service provider in China(1), announced today that it has been appointed as the sole authorized new media by the Beijing International Media Centre ("BIMC"). The other four partners include Lenovo, Sohu, Aigo and China Mobile. VODone sells media to advertisers as well as providing lease services to international media, aided by a comprehensive internet broadcasting media system, top-class facilities and key technical support. This cooperation symbolizes its leading position in China's internet online broadcasting industry and highlights the Company's efforts to enhance its international image, together bringing revenue to the Group.

Jointly organized with BIMC, VODone's Olympic News Live Channel is on the set: contents include BIMC news express, live broadcasting of games, event highlights, professional commentaries, interviews with athletes and programs on their preparations. In particular, the Olympic media show exclusively produced by VODone provides opportunities for well-known international journalists to participate in China's online live video broadcasts. This allows the international media to be known by, and have interaction with, Chinese internet users. This also lets he international media and China have a chance to understand each other more. he new contents are expected to stimulate a hit rate by 200% per day. In addition, the broadcast, animation and text platforms are expected to broaden the income source of VODone and attract more advertisers. The number of advertisers and advertising income during the Olympic period is expected to record an 8-digit growth.

Dr. Zhang Lijun, Chairman of VODone Limited stated, "The Olympics is an international event; the BIMC provides services to more than 10,000 journalists from all over the world. As one of the official partners, VODone seizes this opportunity to promote the brands and products of its advertisers, while also increasing its reputation internationally as well as consolidating its leading market position."

Online broadcast advertising has developed rapidly. According to a report conducted by international marketing information company iResearch, the click rate of advertising contents on VODone's website has soared by 63%. VODone BUS has a total of 14 million internet users and its daily page view reached 120 million, which has surpassed other well-known websites and has become the fastest and most effective way in reaching China's huge Internet population.

Dr. Zhang Lijun said, "In terms of cost, interaction, and customer diversity, Chinese online video advertising is superior to television, outdoor electronic exhibition, and television advertisements in directly reaching the targeted audience. VODone has formed the largest online video advertising broadcasting union, providing 160 million Internet users with online video contents and advertising services. In order to lead the China's online video advertising market to move forward and reach another peak, VODone will unceasingly upgrade the services of VODone BUS."

Note (1): VODone Telemedia Co. Ltd., a strategic partner of VODone Limited (0082.HK), is the first and leading online video media group in China. It is also the only enterprise in the PRC to own a complete set of licenses to operate video broadcasting on the Internet. VODone Telemedia has contracted the technical and promotional services to VODone Group, for 50 years. For more information, please contact: JOVIAN Financial Communications Ltd Angel Y Y Yeung / Jacqueline Fong Tel: +852-2581-0168 Fax: +852-2854-2012 Email jacqueline.fong@joviancomm.com

VODone Limited

CONTACT: JOVIAN Financial Communications Ltd, Angel Y Y Yeung

Missouri News Media Invited to Visit Circuit City Stores for Tax Holiday

RICHMOND, Va., July 29 /PRNewswire-FirstCall/ -- August sales tax holidays in Missouri have been popular in the past, but this year the tax break could be an even bigger benefit to families struggling with high energy costs in the midst of their important back to school shopping.

All 12 Circuit City Stores in Missouri will participate in the tax holiday August 1 - 3, and local newsrooms are invited to contact Circuit City to prepare news accounts.

During the tax holiday, computers and accessories priced up to $3,500.00 will be sold tax free.

More details at: http://dor.mo.gov/tax/business/sales/taxholiday/consumers.htm

Circuit City can offer friendly, knowledgeable store personnel, back to school shopping tips and great visuals. Writers and editors can contact their local stores directly, or arrange a store visit by contacting the Circuit City media relations department:

Jennifer Sills 804 486 4817 Jennifer_sills@circuitcity.com Jim Babb 804 486 4003 Jim_babb@circuitcity.com About Circuit City Stores, Inc.

Circuit City Stores, Inc. is a leading specialty retailer of consumer electronics and related services. The domestic segment operates through 694 Superstores and 9 outlet locations in 158 U.S. markets. The international segment operates through approximately 800 retail stores and dealer outlets in Canada. Circuit City also operates Web sites at http://www.circuitcity.com/, http://www.thesource.ca/ and http://www.firedog.com/.

(Logo: http://www.newscom.com/cgi-bin/prnh/20010709/CCLOGO )

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010709/CCLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Circuit City Stores, Inc.

CONTACT: Jennifer Sills, +1-804-486-4817,
Jennifer_sills@circuitcity.com, or Jim Babb, +1-804-486-4003,
Jim_babb@circuitcity.com, both of Circuit City Stores, Inc.

Web site: http://www.circuitcity.com/
http://dor.mo.gov/tax/business/sales/taxholiday/consumers.htm
http://www.thesource.ca/
http://www.firedog.com/

Southeast News Media Invited to Visit Circuit City Stores for Tax Holiday

RICHMOND, Va., July 29 /PRNewswire-FirstCall/ -- August sales tax holidays across much of the Southeast have been popular in the past, but this year the tax breaks could be an even bigger benefit to families struggling with high energy costs in the midst of their important back to school shopping.

Circuit City Stores in Alabama, Georgia, Louisiana, North Carolina, South Carolina, Tennessee and Virginia will participate in the tax holidays, and newsrooms in these states are invited to contact Circuit City to prepare news accounts.

Jennifer Sills 804 486 4817 Jennifer_sills@circuitcity.com Jim Babb 804 486 4003 Jim_babb@circuitcity.com

Please note there are significant differences between the sales tax holiday plans devised by the various states. For full details, please visit the appropriate state government Web site.

Tax Holiday Dates: Georgia 7/31/08 - 8/3/08 Alabama 8/1/08 - 8/3/08 Louisiana 8/1/08 - 8/2/08 North Carolina 8/1/08 - 8/3/08 South Carolina 8/1/08 - 8/3/08 Tennessee 8/1/08 - 8/3/08 Virginia 8/1/08 - 8/3/08

Special note about Virginia's tax holiday: state law allows retailers to absorb sales taxes even for items not specifically exempt from taxation. Circuit City will absorb sales taxes for ALL merchandise in its Virginia stores during the holiday from August 1-3.

About Circuit City Stores, Inc.

(Logo: http://www.newscom.com/cgi-bin/prnh/20010709/CCLOGO )

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010709/CCLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Circuit City Stores, Inc.

CONTACT: Jennifer Sills, +1-804-486-4817,
Jennifer_sills@circuitcity.com, or Jim Babb, +1-804-486-4003,
Jim_babb@circuitcity.com, both of Circuit City Stores, Inc.

Web site: http://www.circuitcity.com/
http://www.thesource.ca/
http://www.firedog.com/

Focus Media to Announce Second Quarter 2008 Financial Results on August 17, 2008

SHANGHAI, China, July 29 /Xinhua-PRNewswire/ -- Focus Media Holding Limited , China's leading multi-platform digital media company, announced today that it will report its financial results for the second quarter ended June 30, 2008 on August 17, 2008 (U.S. Eastern Time). The Company will host a conference call to discuss the second quarter 2008 results at 9:00 p.m. U.S. Eastern Time on August 17, 2008 (6:00 p.m. U.S. Pacific Time on August 17, 2008 and 9:00 a.m. Beijing/Hong Kong Time on August 18, 2008). The dial-in details for the live conference call are set forth below: U.S. Toll Free Number +1-866-270-6057, Hong Kong dial-in number +852-3002-1672, International dial-in number +1-617-213-8891; Pass code: 41966091.

A replay of the call will be available from August 18, 2008 until August 25, 2008 (US Eastern Time). The dial-in details for the replay are set forth below: U.S. Toll Free Number +1-888-286-8010, International dial-in number +1- 617-801-6888; Pass code 74725216. Additionally, a live and archived web cast of this call will be available on the Focus Media web site at http://ir.focusmedia.cn/ .

SAFE HARBOR: FORWARD-LOOKING STATEMENTS

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as ''will,'' ''expects,'' ''anticipates,'' ''future,'' ''intends,'' ''plans,'' ''believes,'' ''estimates'' and similar statements. Focus Media may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Focus Media's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in Focus Media's filings with the U.S. Securities and Exchange Commission, including its registration statements on Form F-1, F-3, F-6 and 20-F, in each case as amended. Focus Media does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

ABOUT FOCUS MEDIA HOLDING LIMITED

Focus Media Holding Limited is China's leading multi-platform digital media company, operating the largest out-of-home advertising network in China using audiovisual digital displays, based on the number of locations and number of flat-panel television displays in our network, and is also a leading provider of mobile handset advertising and Internet marketing solutions in China. Through Focus Media's multi-platform digital advertising network, the company reaches urban consumers at strategic locations and point-of-interests over a number of media formats, including audiovisual television displays in buildings and stores, advertising poster frames and other new and innovative media, such as outdoor light-emitting diode or LED digital billboard, mobile handset advertising networks and Internet advertising platforms. As of March 31, 2008, Focus Media's digital out-of-home advertising network had approximately 119,200 LCD display in its commercial location network, approximately 61,400 LCD displays in its in-store network and 246,900 advertising in-elevator poster frames, installed in over 90 cities throughout China, and approximately 200 outdoor LED billboard displays in Shanghai. For more information about Focus Media, please visit our website at http://ir.focusmedia.cn/ .

Focus Media Holding Limited

CONTACT: Investor and Media contact, Jie Chen of Focus Media,
+86-21-3212-4661 x6607, or ir@focusmedia.cn

Web Site: http://ir.focusmedia.cn/

CTC Media Reports Second Quarter 2008 Financial Results- Consolidated Revenue Increases 54.1% to $172.8 Million -- OIBDA(1) of $73.4 Million -- Net Income of $48.8 Million, $0.31 Earnings Per Share -

MOSCOW, July 29 /PRNewswire-FirstCall/ -- CTC Media, Inc. , a leading television broadcaster in Russia, today reported financial results for the three- and six-month periods ended June 30, 2008.

US$ 000's, except per share data Three months ended Six months ended June 30, June 30, 2007 2008 Change 2007 2008 Change Total operating revenues $112,147 $172,770 54.1% $216,268 $309,516 43.1% Total operating expenses(2) (66,853) (102,735) 53.7% (132,458) (186,449) 40.8% OIBDA 51,422 73,440 42.8% 95,710 128,676 34.4% Net income $30,692 $48,816 59.1% $58,815 $90,529 53.9% Earnings per share $0.19 $0.31 63.2% $0.37 $0.57 54.1%

(1) OIBDA is defined as operating income before depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights). OIBDA is a non-GAAP financial measure. Please refer to Attachment A for a reconciliation of OIBDA to net income.

(2) Starting from the second quarter of 2008, CTC Media changed its previous programming rights amortization policy for Russian-produced series with twenty or more episodes. The company's previous policy was to amortize 60% after the first run, 30% after the second run and 10% after the third run when the license provides for three or more runs. After introduction of the new programming rights amortization policy, series with twenty or more episodes are amortized 75% after the first run and 25% after the second run, which is reflective of the company's anticipated programming schedule. The effect of the change in amortization policy amounted to an additional $5.7 million of amortization of programming rights in the three months ended June 30, 2008.

Financial Highlights

-- Consolidated revenues increased 54% to $172.8 million in the second quarter and 43% to $309.5 million in the first six months of 2008

-- OIBDA increased 43% to $73.4 million in the second quarter and increased 34% to $128.7 million in the first six months of 2008

-- Net income increased 59% to $48.8 million in the second quarter and increased 54% to $90.5 million in the first six months of 2008

-- $0.31 and $0.57 fully diluted earnings per share for the three- and six-month periods ended June 30, 2008

Corporate Highlights

-- Closed syndicated loan facility for $135 million and used proceeds to repay the remaining debt to MTG associated with the DTV acquisition

-- Anton Kudryashov appointed Chief Executive Officer effective August 4, 2008

-- Vladimir Kartashkov appointed General Director of DTV

Alexander Rodnyansky, Chief Executive Officer and President, stated, "It is with great pleasure that we announce the results of the second quarter - results which demonstrate that our company continues to build on its foundation of success. In the past six years, CTC Media has grown from a private company, operating a single free-to-air channel, to a diversified vertically integrated public media holding with five channels in three countries and in-house production capabilities. We are proud of these achievements, and we are even more proud that the growth of CTC Media has continued. In fact, in the second quarter, we grew faster than the overall Russian advertising market. These results speak to the ability of our management teams to outperform the market and deliver outstanding financial results."

"Our results for the quarter include the financial and operating performance of all recently acquired businesses and reflect the successful execution of our growth strategy in Russia and the CIS. In the second quarter, our flagship CTC channel once again proved its ability to connect with Russian viewers in the highly competitive environment of the Russian television market. CTC increased its target demographic audience share which was effectively monetized in the quarter. As we approach the fall season, we expect to benefit from CTC's competitive programming schedule which is anchored by our established formats and brands. The season's premiers will include new and proven formats, with more than 25% of CTC's fall programming line up being produced in-house through our production companies. We have high expectations for the sequels of sitcoms and series, such as My Fair Nanny, The Cadets, Ranetki and Daddy's Girls, which have garnered high ratings with CTC's target demographic."

Target Audience Shares for the Three Months and Six Months Ended June 30, 2007, and June 30, 2008

Average Audience Shares, % Q2 2007 Q2 2008 6M 2007 6M 2008 CTC Network - target demographic (all aged 6-54) 11.2 11.6 11.3 11.5 Domashny Network - target demographic (females aged 25-60) 2.4 2.7 2.3 2.8 DTV Network - target demographic (all aged 18+) 1.9 1.7 1.9 1.8 Channel 31 - target demographic (all aged 6-54)(1) N/A 13.3 N/A 10.3 Recent Acquisitions

CTC Media acquired its interest in the Channel 31 Group on February 29, 2008 and acquired the DTV Group on April 16, 2008. As a result, total operating results for the three and six months ended June 30, 2008 include the operations of the Channel 31 Group for four months and the operations of the DTV Group for three months. Total operating results for the three and six months ended June 30, 2008 also include the operations of two Russian production companies, Costafilm and Soho Media, acquired in April 2008.

Results for the Three Months Ended June 30, 2008 US$ million Organic Non-Organic Total CTC Results(2) Results(3) Media Group Revenues 156.8 16.0 172.8 OIBDA 70.2 3.2 73.4 OIBDA margin 44.8% 20.4% 42.5% Net Income 48.3 0.5 48.8

(1) Audience share data for 2007 N/A due to absence of portable people meter measurements in Kazakhstan prior to July 2007

(2) Organic results include combined results of operations of CTC Network, Domashny Network, CTC Television Station Group, Domashny Television Station Group and Corporate Office

(3) Non-organic results include results of operations of recent acquisitions: Production Group (Soho Media and Costafilm production companies), DTV Group and CIS Group (Channel 31 Group)

CTC Media's total operating revenues for the three months ended June 30, 2008 increased 54.1% to $172.8 million from $112.1 million for the three months ended June 30, 2007. The increase in revenues reflects the continued growth of the Russian television advertising market and higher advertising rates, as well as the impact of acquisitions, primarily of the DTV Group in the second quarter of 2008 and several regional stations acquired in the third and fourth quarters of 2007. Increases in the price of television advertising were driven in part by a decrease in the amount of advertising permitted to be broadcast under Russian law effective January 1, 2008. The company estimates that the appreciation of the Russian ruble against the US dollar resulted in an approximate 9.5% increase in total operating revenues when comparing the three-month periods.

CTC Media's organic operating revenues, which include combined operating revenues of CTC Network, Domashny Network, CTC Television Station Group and Domashny Television Station Group, increased 39.8% to $156.8 million in the second quarter 2008 from $112.1 million in the second quarter of 2007.

CTC Media's non-organic revenues, which include combined operating revenues from the DTV Group, the CIS Group, and its Soho Media and Costafilm production companies, was $16.0 million in the second quarter of 2008. Out of these revenues, the DTV Group contributed $14.1 million and the Channel 31 Group contributed $1.7 million. Revenues generated by the production companies were eliminated in consolidation.

Consolidated total operating expenses in the second quarter of 2008 increased 53.7% and amounted to $102.7 million compared to $66.9 million in the second quarter of 2007. The main drivers were:

Direct operating expenses in the quarter increased from $4.6 million to $8.6 million primarily due to the acquisition of the DTV Group ($2.1 million) and increased transmission and maintenance costs at our Domashny and CTC owned-and-operated stations.

Selling, general and administrative expenses in the quarter increased from $17.0 million to $24.5 million primarily due to annual increases in salaries and benefits and increases in headcount, as well as the acquisitions of the DTV Group ($1.9 million), its interest in the Channel 31 Group ($1.4 million) and two production companies, Costafilm and Soho Media ($1.6 million).

Amortization of programming rights expense in the quarter increased 64.4% from $37.6 million to $61.8 million. The increase was primarily driven by:

-- higher programming costs at CTC and Domashny (particularly for foreign movies and Russian-produced series and shows);

-- the acquisition of the DTV Group ($4.1 million) and an interest in the Channel 31 Group ($1.3 million);

-- increased impairment charges ($4.0 million in the second quarter of 2008 up from $1.1 million in the same period last year), primarily due to the relative underperformance of a Russian-produced series, Heartbreakers, launched in the second quarter of 2008;

-- the change in programming rights amortization rates for Russian- produced series with twenty or more episodes.

Starting from the second quarter of 2008, CTC Media has changed its previous programming rights amortization policy for Russian-produced series with twenty or more episodes. The company's previous policy was to amortize 60% after the first run, 30% after the second run and 10% after the third run when the license provides for three or more runs. After introduction of the new programming rights amortization policy, series with twenty or more episodes are amortized 75% after the first run and 25% after the second run, which is reflective of the company's anticipated programming schedule. The effect of the change in amortization policy amounted to an additional $5.7 million of amortization of programming rights expense in the three months ended June 30, 2008, or 15.1% of the related expense increase in the quarter.

Amortization of sublicensing rights expense increased from $1.5 million to $4.4 million when comparing the three months ended June 30, 2007 and 2008, principally due to an increase in sales of Russian series in Ukraine.

Depreciation and amortization expense decreased from $6.1 million to $3.4 million when comparing the three months ended June 30, 2007 and 2008, principally due to a change in the way in which the company accounts for its broadcasting licenses. As of January 1, 2008, CTC Media no longer amortizes broadcasting licenses over a 5-year useful life but treats them as intangible assets with an indefinite life and tests them annually for impairment.

Consolidated OIBDA increased 42.8% to $73.4 million for the second quarter of 2008 compared to $51.4 million in the second quarter of 2007. The consolidated OIBDA margin for the quarter was 42.5% compared to 45.9% in the corresponding quarter of 2007. Organic OIBDA for the three months ended June 30, 2008 was $70.2 million (up 36.5% from the same period last year), corresponding to a 44.8% organic OIBDA margin.

Consolidated net income increased 59.1% to $48.8 million for the three months ended June 30, 2008 from $30.7 million for the three months ended June 30, 2007. Organic net income for the quarter was $48.3 million, up 57.4% from the same period last year.

Fully diluted income per share was $0.31 for the three months ended June 30, 2008, compared to $0.19 for the three months ended June 30, 2007.

Results for the Six Months Ended June 30, 2008 US$ million Organic Non-Organic Total CTC Results Results Media Group Revenues 292.9 16.6 309.5 OIBDA 125.6 3.1 128.7 OIBDA margin 42.9% 18.7% 41.6% Net Income 90.3 0.2 90.5

CTC Media's total operating revenues for the six months ended June 30, 2008 increased 43.1% to $309.5 million from $216.3 million for the six months ended June 30, 2007. The increase in revenues reflects the continued growth of the Russian television advertising market resulting in higher advertising rates, and the impact of acquisitions, primarily of the DTV Group acquired in the second quarter of 2008, and several regional stations acquired in the third and fourth quarters of 2007. The company estimates that the appreciation of the Russian ruble against the US dollar resulted in an approximate 9.1% increase in total operating revenues when comparing the six-month periods.

CTC Media's organic operating revenues, which include the combined operating revenues of CTC Network, Domashny Network, CTC Television Station Group and Domashny Television Station Group, increased 35.4% to $292.9 million in the first six months of 2008 from $216.3 million in the first six months of 2007.

CTC Media's non-organic revenues, which include the combined operating revenues from the DTV Group, the CIS Group, and its Soho Media and Costafilm production companies, were $16.6 million in the first six months of 2008. Out of these revenues, the DTV Group contributed $14.1 million, and the Channel 31 Group contributed $2.4 million. Revenues generated by the production companies were eliminated in consolidation.

Consolidated total operating expenses for the six months ended June 30, 2008 increased 40.7% to $186.4 million from $132.54 million for the six months ended June 30, 2007. In absolute terms, total operating expenses went up primarily due to increased direct operating expenses mainly associated with transmission and maintenance; increased selling, general and administrative expenses primarily associated with the DTV Group and the CIS Group; and increased programming rights amortization expense, which was driven by higher programming costs, introduction of a new, more accelerated programming rights amortization policy for certain types of Russian-produced series starting in the second quarter of 2008, and increased impairment charges.

Impairment charges increased from $1.8 million to $9.1 million when comparing the six months ended June 30, 2007 and 2008. The increase in impairment charges was mainly due to the relative underperformance of two Russian series launched in the first quarter of 2008 and one Russian series launched in the second quarter of 2008.

Increase in total operating expenses was partially offset by a decrease in depreciation and amortization expense from $11.9 million in the first six months of 2007 to $5.6 million in the first six months of 2008, principally caused by a change in the way in which the company accounts for its broadcasting licenses starting January 1, 2008.

Consolidated OIBDA increased 34.4% to $128.7 million for the first six months of 2008 compared to $95.7 million for first six months of 2007. The consolidated OIBDA margin for the six month period was 41.6% compared to 44.3% in the same period last year. Organic OIBDA for the six months ended June 30, 2008, was $125.6 million (up 31.2% from the same period last year), corresponding to a 42.9% organic OIBDA margin.

Consolidated net income increased 53.9% to $90.5 million for the six months ended June 30, 2008 from $58.8 for the six months ended June 30, 2007. Organic net income for the quarter was $90.3 million, up 53.5% from the same period last year.

Fully diluted income per share was $0.57 for the six months ended June 30, 2008, compared to $0.37 for the six months ended June 30, 2007.

Guidance

For the full year ending December 31, 2008, the company currently expects to generate consolidated total operating revenues in the range of $650 to $700 million, with a consolidated OIBDA margin in the range of 42-46%. This updated guidance range includes expected revenues and OIBDA contribution from its CIS operations in Kazakhstan and Uzbekistan, the DTV Group and its production companies, all of which were acquired or launched earlier this year.

Organic Guidance

For the full year ending December 31, 2008, the company reconfirms its guidance for organic total operating revenues in the range of $600 to $650 million, with an organic OIBDA margin in the range of 45-48%. This guidance range does not include expected revenues and OIBDA contribution from its CIS operations in Kazakhstan and Uzbekistan, the DTV Group and its production companies.

Conference Call

The company will also host a conference call to discuss its second quarter 2008 financial results today, Tuesday, July 29, at 9:00 a.m. ET, (5:00 p.m. Moscow time, 2:00 p.m. London Time). To access the conference call, please dial +1 973 582 2741 (international) or 8108 002 531 1012 (Russia) and reference pass code 55184319. A live webcast of the conference call will also be available on the investor relations portion of the company's corporate web site, located at http://www.ctcmedia.ru/investors. A replay of the conference call will be available through Tuesday, August 5, 2008, at midnight ET. The replay can be accessed by dialing +1 706 645 9291 or +1 800 642 1687. The passcode for the replay is 55184319. The webcast will also be archived on the company's web site for two weeks.

About CTC Media, Inc.

CTC Media is a leading independent media company in Russia. It owns and operates the CTC television network, whose signal is carried by more than 350 affiliate stations, including 21 owned-and-operated stations; the Domashny television network, whose signal is carried by over 230 affiliate stations, including 13 owned-and-operated stations; and the DTV television network, whose signal is carried by a number of affiliate stations, including 3 owned- and-operated stations. CTC Media owns two TV content production companies: COSTAFILM and SOHO MEDIA, and operates Channel 31 in Kazakhstan and a TV company in Uzbekistan. The company's common stock is traded on The NASDAQ Global Select Market under the symbol: "CTCM". For more information on CTC Media, please visit: http://www.ctcmedia.ru/.

Contacts: CTC Media, Inc. Katya Ostrova (investors) + 7 495 783 3650 ir@ctcmedia.ru Ivan Philippov (media) + 7 495 785 6333 Brainerd Communicators, Inc. Jenna Focarino (media) Michael Smargiassi (investors) +1 212 986 6667

Certain statements in this press release that are not based on historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which include, among other things, guidance on the company's projected total operating revenues and OIBDA margin for the year ending December 31, 2008 on a consolidated and organic operations basis, expectations regarding the performance of our fall 2008 programming season at its networks and the company's ability to deliver operating results that outperform the growth in the market generally, reflect the company's current expectations concerning future results and events. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CTC Media to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CTC Media to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The potential risks and uncertainties that could cause actual future results to differ from those expressed by forward-looking statements include, among others, the company's ability to deliver audience share, particularly in primetime, to its advertisers; changes in the size of the Russian television advertising market; free-to-air television remaining a significant advertising forum in Russia; the company's reliance on a single television advertising sales house for substantially all of its revenues; and restrictions on foreign involvement in the Russian television business. These and other risks are described in the "Risk Factors" section of CTC Media's quarterly report on Form 10-Q filed with the SEC on April 30, 2008. Other unknown or unpredictable factors could have material adverse effects on CTC Media's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur. You are cautioned not to place undue reliance on these forward-looking statements. CTC Media does not undertake any obligation to publicly update or revise any forward- looking statements because of new information, future events or otherwise.

(See attached financial statements) Attachment A SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION

OIBDA is defined as operating income before depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights). The company believes that this metric is an appropriate and useful measure for evaluating the core current operating performance of its business. This metric is used by management to further its understanding of the company's operating performance in the ordinary, ongoing and customary course of operations. The company also believes that it provides investors and equity analysts with a useful basis for analyzing operating performance against historical data and the results of comparable companies.

The most directly comparable GAAP measure to the non-GAAP measure of OIBDA is net income. Unlike net income, OIBDA excludes depreciation and amortization, other than amortization of programming rights and sublicensing rights. The purchase of programming rights is the company's most significant expenditure that enables it to generate revenues and OIBDA includes the impact of the amortization of these rights. Expenditures for capital items such as property, plant and equipment have a materially less significant impact on the company's ability to generate revenues. For this reason, the company excludes the related depreciation expense for these items from OIBDA. Moreover, a significant portion of its intangible assets were acquired in business acquisitions. The amortization of intangible assets is therefore also excluded from OIBDA.

OIBDA also excludes other components of net income that the company does not consider to be indicators of its core operating performance. Accordingly, it excludes from core operating performance certain items over which it does not have substantial managerial influence and that are not reflective of ordinary, ongoing and customary course activities. Such non-core items include foreign currency gains and losses, interest income and expense, gains on the sale of businesses, other non-operating gains and losses, equity in the income of investee companies that the company does not control, income tax expense, and income attributable to minority interest shareholders.

Because OIBDA is not a GAAP measurement of financial performance, there are material limitations in its usefulness on a stand-alone basis, including the lack of comparability to the GAAP financial results of other companies. It should be considered in addition to, and not as a substitute for, net income. The items excluded from OIBDA are significant components in assessing our overall financial performance.

The following table presents a reconciliation of the company's consolidated OIBDA to consolidated net income for the three- and six-month periods to June 30, 2007 and 2008:

Three months ended Six months ended June 30, June 30, 2007 2008 2007 2008 (in thousands and unaudited) OIBDA $51,422 $73,440 $95,710 $128,676 Depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights) (6,128) (3,405) (11,900) (5,609) Operating income 45,294 70,035 83,810 123,067 Foreign currency gains (losses) (115) 1,528 (88) 2,206 Interest income 2,545 1,175 4,629 4,967 Interest expense (2) (2,253) (2) (2,259) Gains on sale of businesses 747 - 747 - Other non-operating (losses) income, net 858 (184) 879 (99) Equity in income of investee companies 682 452 1,193 745 Income before income tax and minority interest 50,009 70,753 91,168 128,627 Income tax expense (17,787) (21,140) (29,932) (36,230) Income attributable to minority interest (1,530) (797) (2,421) (1,868) Net income $30,692 $48,816 $58,815 $90,529

In this press release, the company provides guidance on the company's consolidated OIBDA for the year ending December 31, 2008. The following table presents a reconciliation of the company's projected consolidated OIBDA, based on the mid-point of the provided range, to projected operating income for the year ending December 31, 2008. To further reconcile operating income to net income, foreign currency gains (losses), interest income, interest expense, gains (losses) on the sale of businesses, other non-operating gains (losses), equity in income of investee companies, income tax expense and income attributable to minority interest would need to be added and/or subtracted, as appropriate, from operating income. The company does not provide a quantitative reconciliation of projected consolidated OIBDA to projected consolidated net income because it believes that such a reconciliation is not available without unreasonable efforts.

Year ending December 31, 2008 (projected) (in thousands) OIBDA $ 286,875 Depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights) 12,457 Operating income $ 274,418 SEGMENT FINANCIAL INFORMATION (in thousands of US dollars and unaudited) Three Months Ended June 30, 2007 Domashny CTC Domashny CTC Station Station CIS Network Network Group Group Group Operating revenue 75,633 9,001 23,755 4,207 - Operating income/ (loss) 39,000 78 16,044 (2,549) - Identifiable assets 363,730 35,047 75,305 60,612 - Capital expenditures (153) (81) (490) (548) - Depreciation and amortization (246) (154) (1,772) (3,428) - Amortization of programming rights (30,291) (6,296) (1,133) 1 - Amortization of sublicensing rights (1,462) - - - - Three Months Ended June 30, 2007 DTV Eliminations Production DTV Station and Consolidated Group Network Group other results Operating revenue - - - (449) 112,147 Operating income/ (loss) - - - (7,279) 45,294 Identifiable assets - - - 33,223 567,917 Capital expenditures - - - (11) (1,283) Depreciation and amortization - - - (527) (6,127) Amortization of programming rights - - - 69 (37,650) Amortization of sublicensing rights - - - - (1,462) Three Months Ended June 30, 2008 Domashny CTC Domashny CTC Station Station CIS Network Network Group Group Group Operating revenue 113,290 16,211 26,908 4,641 1,722 Operating income/ (loss) 53,621 3,200 18,894 94 (1,505) Identifiable assets 697,283 46,031 124,438 66,582 158,491 Capital expenditures (80) (20) (2,038) (957) 0 Depreciation and amortization (265) (173) (529) (658) (222) Amortization of programming rights (47,077) (9,566) (1,620) (7) (1,271) Amortization of sublicensing rights (6,884) - - - - Three Months Ended June 30, 2008 DTV Eliminations Production DTV Station and Consolidated Group Network Group other results Operating revenue 14,830 12,220 1,857 (18,910) 172,769 Operating income/ (loss) 663 5,873 (878) (9,927) 70,035 Identifiable assets 19,841 275,565 234,086 (466,114) 1,156,202 Capital expenditures - 0 (2) (26) (3,124) Depreciation and amortization (38) (27) (961) (531) (3,404) Amortization of programming rights - (4,081) (8) 1,832 (61,798) Amortization of sublicensing rights - - - 2,456 (4,428) SEGMENT FINANCIAL INFORMATION (Continued) (in thousands of US dollars and unaudited) Six Months Ended June 30, 2007 Domashny CTC Domashny CTC Station Station CIS Network Network Group Group Group Operating revenue 152,246 17,533 40,058 7,405 - Operating income/ (loss) 78,403 508 23,661 (5,050) - Identifiable assets 363,730 35,047 75,305 60,612 - Capital expenditures (325) (105) (1,179) (976) - Depreciation and amortization (506) (305) (3,304) (6,733) - Amortization of programming rights (58,210) (11,604) (2,303) - - Amortization of sublicensing rights (5,865) - - - - Six Months Ended June 30, 2007 DTV Eliminations Production DTV Station and Consolidated Group Network Group other results Operating revenue - - - (974) 216,268 Operating income/ (loss) - - - (13,711) 83,811 Identifiable assets - - - 33,223 567,917 Capital expenditures - - - (150) (2,735) Depreciation and amortization - - - (1,051) (11,899) Amortization of programming rights - - - 115 (72,002) Amortization of sublicensing rights - - - - (5,865) Six Months Ended June 30, 2008 Domashny CTC Domashny CTC Station Station CIS Network Network Group Group Group Operating revenue 211,319 31,678 46,923 8,090 2,372 Operating income/ (loss) 99,157 7,734 29,527 37 (1,873) Identifiable assets 697,283 46,031 124,438 66,582 158,491 Capital expenditures (848) (77) (3,947) (1,812) - Depreciation and amortization (509) (345) (1,030) (1,283) (353) Amortization of programming rights (92,134) (17,390) (3,027) (13) (1,560) Amortization of sublicensing rights (8,107) - - - - Six Months Ended June 30, 2008 DTV Eliminations Production DTV Station and Consolidated Group Network Group other results Operating revenue 14,830 12,220 1,857 (19,773) 309,516 Operating income/ (loss) 663 5,873 (878) (17,173) 123,067 Identifiable assets 19,841 275,565 234,086 (466,114) 1,156,202 Capital expenditures - 0 (2) (97) (6,783) Depreciation and amortization (38) (27) (961) (1,062) (5,608) Amortization of programming rights - (4,081) (8) 1,991 (116,222) Amortization of sublicensing rights - - - 2,456 (5,651) CTC MEDIA, INC, AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands of US dollars, except share and per share data) Three months ended Six months ended June 30, June 30, 2007 2008 2007 2008 REVENUES: Advertising $108,274 $165,720 $205,925 $300,776 Sublicensing 3,188 6,374 9,018 7,452 Other revenue 685 676 1,325 1,288 Total operating revenues 112,147 172,770 216,268 309,516 EXPENSES: Direct operating expenses (exclusive of amortization of programming rights and sublicensing rights, shown below, exclusive of depreciation and amortization of $5,414 and $2,615 for the three months and $10,500 and $4,033 for the six months ended June 30, 2007 and 2008, respectively; and inclusive of stock- based compensation of $213 and $213 for the three months and $239 and $426 for six months ended June 30, 2007 and 2008, respectively) (4,563) (8,626) (8,898) (15,152) Selling, general and administrative (exclusive of depreciation and amortization of $714 and $790 for the three months and $1,400 and $1,576 for the six months ended June 30, 2007 and 2008 respectively; inclusive of stock- based compensation of $3,252 and $3,146 for the three months and $6,297 and $6,292 for the six months ended June 30, 2007 and 2008, respectively) (17,051) (24,477) (33,793) (43,815) Amortization of programming rights (37,649) (61,799) (72,002) (116,222) Amortization of sublicensing rights (1,462) (4,428) (5,865) (5,651) Depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights) (6,128) (3,405) (11,900) (5,609) Total operating expenses (66,853) (102,735) (132,458) (186,449) OPERATING INCOME 45,294 70,035 83,810 123,067 FOREIGN CURRENCY GAINS (LOSSES) (115) 1,528 (88) 2,206 INTEREST INCOME 2,545 1,175 4,629 4,967 INTEREST EXPENSE (2) (2,253) (2) (2,259) GAINS ON SALE OF BUSINESSES 747 - 747 - OTHER NON-OPERATING INCOME (LOSSES), net 858 (184) 879 (99) EQUITY IN INCOME OF INVESTEE COMPANIES 682 452 1,193 745 Income before income tax and minority interest 50,009 70,753 91,168 128,627 INCOME TAX EXPENSE (17,787) (21,140) (29,932) (36,230) INCOME ATTRIBUTABLE TO MINORITY INTEREST (1,530) (797) (2,421) (1,868) NET INCOME $ 30,692 $ 48,816 $ 58,815 $ 90,529 Foreign currency translation adjustment 2,349 5,493 6,263 29,006 COMPREHENSIVE INCOME $ 33,041 $ 54,309 $ 65,078 $119,535 Net income attributable to common stockholders $ 30,692 $ 48,816 $ 58,815 $ 90,529 Net income per share attributable to common stockholders - basic $0.20 $0.32 $0.39 $0.60 Net income per share attributable to common stockholders - diluted $0.19 $0.31 $0.37 $0.57 Weighted average common shares outstanding - basic 151,565,124 152,150,644 151,547,155 152,137,810 Weighted average common shares outstanding - diluted 158,333,143 159,111,955 157,939,836 159,168,909 CTC MEDIA, INC, AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands of US dollars) Six months ended June, 30 2007 2008 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $58,815 $90,529 Adjustments to reconcile net income to net cash provided by operating activities: Deferred tax benefit (3,980) (9,224) Depreciation and amortization 11,900 5,609 Amortization of programming rights 72,002 116,222 Amortization of sublicensing rights 5,865 5,651 Stock based compensation expense 6,536 6,718 Gain on disposal of property and equipment (748) - Gain on sale of businesses (747) - Equity in income of unconsolidated investees (1,193) (745) Income attributable to minority interest 2,421 1,868 Foreign currency (gains) losses 88 (2,206) Changes in operating assets and liabilities: Trade accounts receivable (3,988) (15,933) Prepayments 981 4,328 Other assets (215) (5,831) Accounts payable and accrued liabilities 2,961 1,917 Deferred revenue 3,780 (4,936) Other liabilities (3,049) 10,228 Dividends received from equity investees 1,227 985 Acquisition of programming and sublicensing rights (73,549) (138,311) Net cash provided by operating activities 79,107 66,869 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions of property and equipment (2,531) (1,856) Acquisitions of intangibles (204) (4,927) Acquisitions of businesses, net of cash acquired (14,572) (313,001) Proceeds from sale of businesses, net of cash disposed 751 - Proceeds from sale of property and equipment 1,990 - Other 3 (515) Net cash used in investing activities (14,563) (320,299) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from exercise of stock options 1,114 1,811 (Increase) decrease in restricted cash (40) (10) Dividends paid to minority interest (2,392) (3,574) Net cash provided by (used in) financing activities (1,318) (1,773) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 2,279 10,602 Net increase (decrease) in cash and cash equivalents 65,505 (244,601) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 176,542 307,073 CASH AND CASH EQUIVALENTS AT END OF PERIOD $242,047 $62,472 CTC MEDIA, INC, AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands of US dollars, except share and per share data) December 31, June 30, 2007 2008 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 307,073 $62,472 Trade accounts receivable, net of allowance for doubtful accounts (December 31, 2007 - $435; June 30, 2008 - $717) 11,690 32,163 Taxes reclaimable 4,843 12,743 Prepayments 35,128 41,409 Programming rights, net 63,023 78,619 Deferred tax assets 12,938 17,453 Other current assets 3,342 9,164 TOTAL CURRENT ASSETS 438,037 254,023 RESTRICTED CASH 180 190 PROPERTY AND EQUIPMENT, net 24,768 28,480 INTANGIBLE ASSETS, net: Broadcasting Licenses 74,254 372,746 Cable Network Connection 77 27,471 Trade names 6,828 32,090 Network affiliation agreements 1,333 4,935 Other intangible assets 724 1,173 Net intangible assets 83,216 438,415 GOODWILL 78,674 343,940 PROGRAMMING RIGHTS, net 36,161 47,743 SUBLICENSING RIGHTS, net 2,591 3,240 INVESTMENTS IN AND ADVANCES TO INVESTEES 6,557 6,521 PREPAYMENTS 12,026 5,973 DEFERRED TAX ASSET 11,326 17,158 OTHER NON-CURRENT ASSETS 1,144 10,519 TOTAL ASSETS $ 694,680 $1,156,202 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable 25,846 42,794 Accrued liabilities 4,653 31,178 Taxes payable 14,507 25,336 Short-term loans and interest accrued - 87,977 Deferred revenue 11,866 11,777 Deferred tax liability 1,350 1,872 TOTAL CURRENT LIABILITIES 58,222 200,934 LONG-TERM LOANS 224 67,500 DEFERRED TAX LIABILITY 21,160 103,912 MINORITY INTEREST 3,182 45,183 COMMITMENTS AND CONTINGENCIES (Note 10) - - STOCKHOLDERS' EQUITY: Common stock; $0.01 par value; shares authorized 175,772,173; shares issued and outstanding December 31, 2007 - 152,124,096, June 30, 2008 - 152,155,213) 1,521 1,522 Additional paid-in capital 348,752 355,997 Retained earnings 209,867 300,396 Accumulated other comprehensive income 51,752 80,758 TOTAL STOCKHOLDERS' EQUITY 611,892 738,673 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 694,680 $1,156,202

CTC Media, Inc.

CONTACT: CTC Media, Inc., Katya Ostrova (investors), + 7 495 783 3650,
ir@ctcmedia.ru, or Ivan Philippov (media), + 7 495 785 6333; or Jenna Focarino
(media) or Michael Smargiassi (investors), both of Brainerd Communicators,
Inc., +1-212-986-6667

Web site: http://www.ctcmedia.ru/

Bezeq Announces Second Quarter and First Half 2008 Earnings Release, Conference Call and Webcast Schedule

TEL AVIV, Israel, July 29 /PRNewswire-FirstCall/ -- Bezeq The Israel Telecommunication Corp., Limited , Israel's leading telecommunications provider, will release its financial results for the three and six month periods ending June 30, 2008 on Thursday, August 21, 2008. The financial results will be released over the news wire and will also be posted to the Bezeq corporate website.

Bezeq will conduct a conference call hosted by Mr. Shlomo Rodav, Bezeq Chairman and Mr. Alan Gelman, Bezeq Chief Financial Officer and Deputy CEO, on Thursday, August 21, 2008, at 4:00 PM Israel Time / 9:00 AM Eastern Time. Participants are invited to join the live conference call by dialing:

International Phone Number: +972-3-918-0609 Israel Phone Number: 03-918-0609

A live webcast of the conference call will be available on the investor relations section of the Bezeq corporate website at http://www.bezeq.co.il/. Please visit the website at least 15 minutes early to register for the webcast and download any necessary audio software.

A webcast replay will be made available on the investor relations section of the Bezeq corporate website. An automated telephone replay will also be available approximately two hours after the completion of the live call through Thursday, August 28, 2008. Participants are invited to listen to the conference call replay by dialing:

International Phone Number: +972-3-925-5937 Israel Phone Number: 03-925-5937 About Bezeq The Israel Telecommunication Corp.

Bezeq is Israel's largest telecommunications service provider. Established in 1984, the company has led Israel into the new era of communications, based on the most advanced technologies and services. Bezeq and its subsidiaries offer the full range of telecommunication services including domestic, international and cellular phone services; Internet, ADSL, and other data communications; leased lines, and corporate networks. For more information about Bezeq please visit the corporate website at http://www.bezeq.co.il/.

Investor Relations Contact: Mr. Naftali Sternlicht Bezeq Phone: +972-2-539-5441 E-Mail: ir@bezeq.co.il Media Relations Contact: Mr. Guy Hadass Bezeq Phone: +972-3-626-2600 E-Mail: guy@bezeq.co.il

Bezeq

CONTACT: Investor Relations Contact: Mr. Naftali Sternlicht, Bezeq,
Phone: +972-2-539-5441, E-Mail: ir@bezeq.co.il; Media Relations Contact: Mr.
Guy Hadass, Bezeq, Phone: +972-3-626-2600, E-Mail: guy@bezeq.co.il

comScore Releases Top U.K. Web Rankings for June 2008

LONDON, July 29 /PRNewswire/ --

- Big Brother Gossip Spurs Traffic to Entertainment News Sites

- Acquisition of Bebo Propels AOL to U.K.'s 6th Ranked Property

comScore, Inc. (Nasdaq: SCOR), a leader in measuring the digital world, today released its June rankings of the largest and fastest-growing Internet properties and site categories in the U.K. based on data from the comScore World Metrix audience measurement service.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080115/COMSCORELOGO)

June saw modest increases in the entertainment news, retail fragrances/cosmetics, retail jewelry/luxury goods/accessories, and careers services and development site categories. Channel4 was the fastest growing site in June, up 32 percent to 4.7 million unique visitors, driven by interest in this season's Big Brother. AOL's acquisition of Bebo.com propelled it to the number 6 ranking in the U.K. with 17.1 million visitors.

Top Gaining Site Categories for June 2008 Top 10 Gaining Site Categories by Number of U.K. Unique Visitors June 2008 vs. May 2008 Total U.K., Age 15+ - Home and Work Locations* Source: comScore World Metrix Total Unique Visitors (000) Property May-2008 Jun-2008 %Change Total Internet : Total Audience 34,489 34,860 1% Entertainment - News 10,167 10,570 4% Retail - Fragrances/Cosmetics 3,344 3,432 3% Retail - Jewelry/Luxury Goods/Accessories 2,281 2,327 2% Career Services and Development 10,197 10,334 1% Search/Navigation 32,057 32,257 1% Conversational Media 27,547 27,660 0% Retail - Movies 6,963 6,984 0% Portals 32,380 32,421 0% Newspapers 14,731 14,741 0% Photos 17,636 17,635 0% * Excludes traffic from public computers such as Internet cafes or access from mobile phones or PDAs.

Top Gaining Properties for June 2008 Top 10 Gaining Properties by Number of U.K. Unique Visitors* June 2008 vs. May 2008 Total U.K., Age 15+ - Home and Work Locations** Source: comScore World Metrix Total Unique Visitors (000) Property May-2008 Jun-2008 %Change Total Internet : Total Audience 34,489 34,860 1% Channel4 3,544 4,664 32% John Lewis Partnership 2,119 2,416 14% Guardian Media Group 3,793 4,305 14% First Choice Holidays PLC 3,939 4,246 8% 365 Media Group 2,299 2,462 7% Facebook.com 15,195 16,132 6% Virgin Media 4,910 5,159 5% Reed Business Information 2,317 2,430 5% Jobcentreplus.gov.uk 2,729 2,845 4% Groupe Lagardere 2,353 2,452 4% * Ranking based on the top 100 U.K. properties in June 2008, excludes growth occurring from reallocation of site traffic, such as the inclusion of Bebo.com beneath the AOL LLC property. ** Excludes traffic from public computers such as Internet cafes or access from mobile phones or PDAs.

Top 25 Properties for June 2008 Top 25 Properties by Number of U.K. Unique Visitors* June 2008 vs. May 2008 Total U.K., Age 15+ - Home and Work Locations** Source: comScore World Metrix Total Unique Jun-08 May-08 Visitors (000) Rank Rank Property Jun-08 N/A N/A Total Internet : Total Audience 34,860 1 1 Google Sites 30,614 2 2 Microsoft Sites 28,212 3 3 eBay 21,093 4 4 Yahoo! Sites 20,801 5 5 BBC Sites 18,496 6 12 AOL LLC*** 17,080 7 6 Facebook.com 16,132 8 8 Wikipedia Sites 12,995 9 7 Ask Network 12,781 10 10 Amazon Sites 10,838 11 11 Fox Interactive Media 10,501 12 15 DMGT 9,856 13 14 Apple Inc. 9,738 14 13 Lycos Europe Sites 9,528 15 16 CNET Networks 8,386 16 17 Tesco Stores 7,185 17 18 Home Retail Group 6,901 18 20 Yellow Book Network 6,657 19 19 Sky Sites 6,518 20 22 News International 6,048 21 23 Expedia Inc 5,947 22 21 Moneysupermarket.com Financial Group 5,884 23 41 Gorilla Nation 5,433 24 24 Viacom Digital 5,416 25 27 Orange Sites 5,325 * Ranking based on the top 100 U.K. properties in June 2008. ** Excludes traffic from public computers such as Internet cafes or access from mobile phones or PDAs. *** Beginning with June 2008 comScore data, the AOL LLC property now includes Bebo.com

About comScore

comScore, Inc. (Nasdaq: SCOR) is a global leader in measuring the digital world. For more information, please visit http://www.comscore.com/boilerplate

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

comScore, Inc.

Jamie Gavin of comScore, Inc., +44-(0)-207-099-1775, worldpress@comscore.com ; Photo: http://www.newscom.com/cgi-bin/prnh/20080115/COMSCORELOGO, AP Archive: http://photoarchive.ap.org, PRN Photo Desk, photodesk@prnewswire.com

ClickSoftware Extends Major Contract for Mobile Workforce Management in Germany

BURLINGTON, Massachusetts, July 29 /PRNewswire-FirstCall/ -- - A Multi-Million Dollar Contract to Purchase ClickSchedule Licenses Reaffirming Commitment to ClickSoftware Products

ClickSoftware Technologies Ltd., (NasdaqCM: CKSW) the leading provider of mobile workforce management and service optimization solutions, today announced that is has signed a major contract with T-Home, the residential broadband service subsidiary of Deutsche Telekom AG, for licenses to continue to use its ClickSchedule product. The contract will be used to automate the scheduling and route optimization for more than 25,000 field resources, one of the largest single-company workforces in the world.

"We are delighted to continue to work with ClickSoftware," said Mr. Georg Bickert, Vice President IT-Projects Fulfillment Assurance, T-Home. "Over the past few years, the ClickSchedule solution has allowed us to allocate work to our mobile workforce more effectively and therefore supported us both in improving customer service and realizing operating efficiencies."

T-Home's schedule management challenges are immense. Tens of thousands of calls from its 80 million subscribers in Germany go to its call center every day. More than 25,000 technicians work in two groups across the country. One group focuses on service installation, maintenance and repair, while the other group focuses on the network infrastructure: lines, utility poles, switches, etc. Countless variables affect job scheduling.

The software automates scheduling by considering myriad variables such as technician skill, location, proximity to other jobs, etc. as well as real-time events in the field like unscheduled emergencies or jobs that take longer than expected. Factoring such information enables ClickSchedule to send the right technician to the right job, ensuring efficient work completion and increasing customer satisfaction.

T-Home uses ClickSchedule's street-level routing (SLR) capabilities to provide technicians the most efficient route to take between jobs, enabling more "wrench" time as opposed to time on the road.

"Successful telecommunications providers must deliver customer service that subscribers can count on," said ClickSoftware Chief Operating Officer Hannan Carmeli. "There aren't many companies around the world which face the challenge of managing such a vast mobile workforce, and there aren't many solution providers which can rise to the task of supporting such. T-Home and ClickSoftware teamed up and have proved that no undertaking is too big for the two companies."

T-Home is also using ClickSchedule to optimize scheduling for long-term infrastructure projects to ensure the right amount of technicians will be on hand to complete the tasks. This type of planning helps T-Home maximize efficiency and reduce costs of delaying crucial projects or hiring outside contractors.

"Having worked together for more than 5 years, the existing contract between T-Home and ClickSoftware was nearing its end. The new contract for repeat license orders reflects the desire of both sides to continue their long term relationship," added Carmeli.

About ClickSoftware

ClickSoftware is the leading provider of mobile workforce management and service optimization solutions that create business value for service operations through higher levels of productivity, customer satisfaction and cost effectiveness. Combining educational, implementation and support services with best practices and its industry-leading solutions, ClickSoftware drives service decision making across all levels of the organization. From proactive customer demand forecasting and capacity planning to real-time decision making, incorporating scheduling, mobility and location-based services, ClickSoftware helps service organizations get the most out of their resources. With over 100 customers across a variety of industries and geographies, and strong partnerships with leading platform and system integration partners - ClickSoftware is uniquely positioned to deliver superb business performance to any organization.

The company is headquartered in Burlington, Mass. and Israel, with offices in Europe, and Asia Pacific. For more information about ClickSoftware, please call +1-781-272-5903 or +1-888-438-3308, or visit http://www.clicksoftware.com/.

This press release contains express or implied 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. These forward-looking statements include, but are not limited to, those statements regarding future results of operations, visibility into future periods, growth and rates of growth, and expectations regarding future closing of contracts, receipt of orders, recognition of revenues and deferred revenues. Such "forward-looking statements" involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from those projected. Achievement of these results by ClickSoftware may be affected by many factors, including, but not limited to, risks and uncertainties regarding the general economic outlook, the length of or changes in ClickSoftware's sales cycle, ClickSoftware's ability to close sales to potential customers in a timely manner and maintain or strengthen relationships with strategic partners, the timing of revenue recognition, foreign currency exchange rate fluctuations, and ClickSoftware's ability to maintain or increase its sales pipeline. The forward-looking statements contained in this press release are subject to other risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in ClickSoftware's annual report on Form 20F for the year ended December 31, 2007 and in subsequent filings with the Securities and Exchange Commission. Clicksoftware is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Contacts: Joanna Giannotti Adam J. Rosen ClickSoftware, Inc. +1-646-536-3865 +1-781-272-5903 x2235 arosen@rkequity.com joanna.giannotti@clicksoftware.com

ClickSoftware Technologies Ltd

CONTACT: Contacts: Joanna Giannotti, ClickSoftware, Inc.,
+1-781-272-5903 x2235, joanna.giannotti@clicksoftware.com; Adam J. Rosen,
+1-646-536-3865, arosen@rkequity.com

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