CIO Seminar Hosted by China VoIP & Digital Telecom Inc. Subsidiary Yinquan Technology Achieves Great Success

JINAN, Shandong, China, July 31 /Xinhua-PRNewswire-FirstCall/ -- Shandong Enterprises CIO Net Communications and Virtualization Technology Seminar, hosted by Jinan Yinquan Technology, a wholly-owned subsidiary of China VoIP & Digital Telecom Inc. (BULLETIN BOARD: CVDT) , and the co-sponsor, ComputerWorld Magazine, took place successfully on Saturday, July 26, 2008.

The seminar had three main sections. First, Yinquan's General Manager Wang Qinghua introduced the newly developed IBCC (International Business Communication Center) platform to the audience. The audience of CIOs from different industries showed great interest in IBCC and provided valuable feedback and suggestions. Second, the CIO from Geely Group, Zhang Zhengzhu, shared with attendees details of its successful implementation of VoIP and its overall progress in developing an enterprise IT information system (Geely's entire VoIP system is provided by Jinan Yinquan Technology). Mr. Zhang analyzed the economic efficiency achieved by Geely after applying Yinquan's VoIP system. When talking about Yinquan's products and service, he stated, "Yinquan's VoIP system is trustworthy!" In the last part of the seminar Qi Dawei, the Technical Director of Beijing PowerUnique Technologies Co., Ltd. (BPUT), a wholly-owned subsidiary of CVDT, introduced BPUT's virtualization technology and its application.

Mr. Li Kunwu, CEO and Chairman of CVDT commented that he believed the seminar fully showcased Yinquan's unique technology and the value it provides to a business. "CVDT's subsidiaries will continue to work hard to exceed customers' expectations and bring more value-added products and services to the market."

More information can be found at http://www.chinavoip-telecom.com/ . Safe Harbor Statement

Certain of the statements made in the press release constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as 'believe,' 'expect,' 'may,' 'will,' 'should,' 'project,' 'plan,' 'seek,' 'intend,' or 'anticipate' or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

For more information, please contact: Yinquan Investor Contacts: Michelle Wong Tel: +86-531-8702-7114 Email: michellewong@yinquan.cn Great Wall Research LLC John Armstrong Tel: +1-203-536-1928 Email: jarmstrong@greatwallresearch.com

China VOIP and Digital Telecom, Inc.

CONTACT: Yinquan Investor Contact, Michelle Wong, +86-531-8702-7114, or
michellewong@yinquan.cn; or John Armstrong of Great Wall Research LLC for
China VOIP and Digital Telecom, Inc., +1-203-536-1928, or
jarmstrong@greatwallresearch.com

Web site: http://www.chinavoip-telecom.com/

China VoIP & Digital Telecom Inc. Successfully Establishes Internet Data Center

JINAN, Shandong, China, July 31 /Xinhua-PRNewswire-FirstCall/ -- Jinan Yinquan Technology Co., Ltd., the wholly owned subsidiary of China VoIP & Digital Telecom Inc. (BULLETIN BOARD: CVDT) , today announced that it has successfully established an Internet Data Center (IDC).

Yinquan's IDC, built using virtualization technology, reaches the telecom level. The data center can provide virtualized server hosting, leasing and other value-added services to enterprises as well as government users. Yinquan's recently launched International Business Communication Center (IBCC) platform was also built on this IDC.

IDC is planning to offer relevant services in early August. By leasing Yinquan's IDC, companies and governments can create various applications without having to set up data centers, purchase costly servers and storage equipment, or rent expensive telecom routers. In addition, the ongoing expense of data backups are avoided as well as the high costs associated with maintaining a staff of network engineers.

More information can be found at http://www.chinavoip-telecom.com/ . Safe Harbor Statement

Certain of the statements made in the press release constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as 'believe,' 'expect,' 'may,' 'will,' 'should,' 'project,' 'plan,' 'seek,' 'intend,' or 'anticipate' or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

For more information, please contact: Yinquan Investor Contacts: Michelle Wong Tel: +86-531-8702-7114 Email: michellewong@yinquan.cn Great Wall Research LLC John Armstrong Tel: +1-203-536-1928 Email: jarmstrong@greatwallresearch.com

China VOIP and Digital Telecom, Inc.

CONTACT: Yinquan Investor Contact, Michelle Wong, +86-531-8702-7114, or
michellewong@yinquan.cn; or John Armstrong of Great Wall Research LLC for
China VOIP and Digital Telecom, Inc., +1-203-536-1928, or
jarmstrong@greatwallresearch.com

Web site: http://www.chinavoip-telecom.com/

Alliance Distributors Holding Inc. Reports 2008 Second Quarter Financial Results

NEW YORK, July 31 /PRNewswire-FirstCall/ -- Alliance Distributors Holding Inc. (Pink Sheets: ADTR), a distributor of interactive video games and gaming products, today announced its financial results for the second quarter ended June 30, 2008.

Net sales for the quarter increased 64% to $20.5 million from $12.5 million in the second quarter of 2007. Net income was $253,000 in the second quarter of 2008, compared to a net loss of $892,000 in the second quarter of 2007.

For the six months ended June 30, 2008, net sales increased 51% to $43.4 million, compared to $28.8 million for the same period in 2007. Net income was $285,000 for the six months ended June 30, 2008 compared to a net loss of $1.5 million for the comparable period in 2007.

Jay Gelman, Chairman and Chief Executive Officer, said "We are pleased with our continued growth especially during this period of general economic uncertainty. We achieved profitability in the most challenging part of the year in the video game industry, and have now delivered positive earnings in three consecutive quarters."

About Alliance Distributors Holding Inc.

Alliance Distributors Holding Inc. (http://www.alliancedistributors.com/), which does business as Alliance Distributors, is a full-service wholesale videogame distributor, specializing in gaming products and accessories for all key manufacturers and 3rd party publishers. Alliance Distributors offers support on: PS3, PSP, PS2, X-Box 360, Wii, DS and GBA SP, peripherals and software titles.

Safe Harbor

Certain statements contained in this press release contain forward-looking statements including without limitation, statements concerning our operations, economic performance, and financial condition. The words "estimate," "believe," "expect," and "anticipate" and other similar expressions generally identify forward-looking statements, which speak only as of their dates.

Investors are cautioned that all forward-looking statements, which are based largely on our current expectations, involve risks and uncertainty. Actual results, events and circumstances (including future performance, results and trends) could differ materially from those set forth in such statements due to various factors, risks and uncertainties, including without limitation, risks associated with technological change, competitive factors and general economic conditions, changes in marketing and distribution strategies by manufacturers, continued shortages of new platform systems, difficulty in integrating and deriving synergies from acquisitions, potential undiscovered liabilities of companies that we acquire, changes in our business or growth strategy, the emergence of new or growing competitors, various other competitive and technological factors. There can be no assurance that the results referred to in the forward-looking statements contained in this release will occur. The Company has no duty and undertakes no obligation to update any forward-looking information, whether as a result of new information, future developments or otherwise.

ALLIANCE DISTRIBUTORS HOLDING INC. STATEMENTS OF OPERATIONS THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007 (In thousands, except per share amounts) (Unaudited) Three Months Six Months 2008 2007 2008 2007 NET SALES $20,544 $12,499 $43,361 $28,772 COST OF GOODS SOLD 18,447 11,516 39,441 26,209 GROSS PROFIT 2,097 983 3,920 2,563 OPERATING COSTS AND EXPENSES: Selling and administrative expenses 1,691 1,697 3,294 3,622 INCOME (LOSS) FROM OPERATIONS 406 (714) 626 (1,059) Interest expense 133 178 321 426 INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES 273 (892) 305 (1,485) Provision for income taxes 20 - 20 - NET INCOME (LOSS) $253 $(892) $285 $(1,485) Net income (loss) per share - basic and diluted $- $(0.02) $0.01 $(0.03) Weighted average common shares outstanding - Basic 53,883 49,000 53,648 48,861 Diluted 54,525 49,000 54,216 48,861 ALLIANCE DISTRIBUTORS HOLDING INC. CONDENSED BALANCE SHEET JUNE 30, 2008 (Unaudited; in thousands) ASSETS CURRENT ASSETS: Cash and equivalents $358 Accounts receivable-net 4,923 Inventory 6,593 Due from vendors 264 Prepaid expenses and other current assets 122 Deferred income taxes 121 Total current assets 12,381 PROPERTY AND EQUIPMENT - NET 546 DEFERRED INCOME TAXES 97 OTHER ASSETS 57 TOTAL $13,081 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable - bank $5,550 Accounts payable 4,916 Current portion of long term obligations 3 Accrued expenses and other current liabilities 169 Total current liabilities 10,638 DEFERRED LEASE OBLIGATIONS 52 STOCKHOLDERS' EQUITY 2,391 TOTAL $13,081 COMMON SHARES OUTSTANDING 53,883

Alliance Distributors Holding Inc.

CONTACT: Steve Gelman - VP of Marketing and Communications, Alliance
Distributors Holding Inc., +1-718-536-2248, steve@alliancedis.com

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

Manuvis Enhances Shop Floor Integration, Launches New Interface to Significantly Boost Productivity with Interactive Dashboards and Reporting ToolsVersatile, Built-in Connectivity Tools and New User Interface Help Manufacturers Track, Analyze, and Reduce Process Variation and Increase Efficiency Faster

CLEVELAND, July 31 /PRNewswire/ -- Manuvis Corporation, a leader in innovative, event-driven, realtime enterprise manufacturing intelligence application software, announced today the immediate availability of its new suite of standard integration tools, an intuitive drag-and-drop charting engine/user interface, and interactive reporting tools embedded within its FactoryMRI application to increase user productivity and improve decision making. The software allows manufacturers in complex, discrete, and process industries to realize key benefits, including: reduced total cost of ownership, significant improvements in understanding sources of process variation, and the ability to display a broader assortment of enterprise-wide information on one output screen.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080731/CLW095LOGO )

Manuvis' primary method for acquiring operating data allows machine operators to interact with the FactoryMRI software application to assign specific down time reasons, for example, when a machine stops producing. Customers will now have another option for capturing PLC output when operator interaction with the FactoryMRI application may not be required. Manufacturers who previously were unable to store their PLC data for future retrieval may now continually archive this data for subsequent analysis or reporting.

Faster operational decision-making, increased productivity, and reduced complexities associated with data acquisition result from the interactive dashboard and reporting tools. Instead of single-use charts, users may "drag and drop" performance variables they wish to chart into a template. Variables such as cycle times, quality test, fault codes, efficiency, job counts, and many others may be displayed singly or grouped on to a single line chart, for example, to be viewed or printed in real-time or retrieved from historical records.

"Our new connectivity and dashboard tools have enabled one of our Tier 1 automotive customers to identify savings of over 3,700 labor hours/year at one work station within a highly-automated work cell," said David Scott, President/CEO for Manuvis. "Our customer attributes these savings from being able to identify and prevent a series of specific machine fault codes that were occurring, but could not be isolated. Until FactoryMRI's new connectivity was in place they had no way of identifying the source of their downtime due to the complexities and speed associated with this machine."

About Manuvis

Manuvis is a leader in delivering innovative, real-time enterprise manufacturing intelligence software solutions that help manufacturing firms lower operating costs, improve customer service, and increase profitability. Manuvis' FactoryMRI application is a comprehensive software solution that fully integrates the enterprise with the shop floor, providing real-time, performance information, and allowing manufacturers to better leverage previous investment in ERP.

FactoryMRI has been designed and developed by a team of experienced manufacturing executives who needed a method to improve manufacturing data collection and information availability. FactoryMRI's service oriented architecture was built with and operates on Progress Software's OpenEdge(R) business application platform. For more information on how to increase your company's profitability please visit http://www.manuvis.com/ or +1-440-686-1525. FactoryMRI is a registered trademark of Manuvis Corporation.

About Progress Software Corporation

Progress Software Corporation provides application infrastructure software for the development, deployment, integration and management of business applications. Our goal is to maximize the benefits of information technology while minimizing its complexity and total cost of ownership. Progress can be reached at http://www.progress.com/ or +1-781-280-4000.

Progress and OpenEdge are trademarks or registered trademarks of Progress Software Corporation. Any other trademarks or service marks contained herein are the property of their respective owners.

Photo: http://www.newscom.com/cgi-bin/prnh/20080731/CLW095LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Manuvis Corporation

CONTACT: Chuck Keberdle of Manuvis Corporation, +1-440-686-1525,
ckeberdle@manuvis.com; or Brian Bloom of Liggett-Stashower, Inc.,
+1-216-373-8307, bbloom@liggett.com, for Manuvis

Web site: http://www.manuvis.com/
http://www.progress.com/

NVIDIA Recognizes University of Utah as a Cuda Center of ExcellenceUniversity of Utah is the Latest in a Growing List of Exceptional Schools Demonstrating Pioneering Work in Parallel Computing

SANTA CLARA, Calif. and SALT LAKE CITY, July 31 /PRNewswire-FirstCall/ -- NVIDIA Corporation, the worldwide leader in visual computing technologies, and the University of Utah today announced that the university has been recognized as a CUDA Center of Excellence, a milestone that marks the beginning of a significant partnership between the two organizations.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020613/NVDALOGO)

NVIDIA(R) CUDA(TM) technology is an award-winning C-compiler and software development kit (SDK) for developing computing applications on GPUs. Its inclusion in the University of Utah's curriculum is a clear indicator of the ground-swell that parallel computing using a many-core architecture is having on the high-performance computing industry. The University of Utah is also the second school to be recognized as a CUDA Center of Excellence along with the University of Illinois at Urbana-Champaign. Over 50 other schools and universities now include CUDA technology as part of their Computer Science curriculum or in their research.

Distinguished members of the University of Utah's faculty and alumni have been behind a remarkable fraction of the graphics innovations made in the last 40 years, as well as pioneering companies such as Adobe, Evans & Sutherland, Pixar and Silicon Graphics. Together, NVIDIA and the University of Utah will continue this industry-changing work and deliver technologies that harness the processing power of the GPU (graphics processing units) and the award-winning CUDA programming environment.

"Often before a great discovery there is the creation of a new tool or a tool that is used in a different way than before," said Chris Johnson, director of the Scientific Computing and Imaging (SCI) Institute at the University of Utah. "GPUs and the algorithms and software that they use are today's tools and with them we are entering a golden age, where scientific computing is going to truly change the way we do science and medicine."

As a CUDA Center of Excellence, the University of Utah will be using CUDA technology extensively across three faculties:

-- Scientific Computing and Imaging (SCI) Institute -- The SCI Institute has established itself as an internationally recognized leader in visualization, scientific computing, and image analysis. The overarching research objective of the SCI Institute is to create new scientific computing techniques, tools, and systems that enable solutions to important problems in biomedicine, science, and engineering. For more information: http://www.sci.utah.edu/. -- The School of Computing (until 2000 the Department of Computer Science). -- The School of Computing has a long history of distinguished faculty and alumni who have made substantial contributions to research and industry. For more information: http://www.cs.utah.edu/school/history. The CUDA Center will play a key role in the School's new Digital Media Initiative linking Computing with Fine Art and Film and funded by the USTAR Initiative -- Center for the Simulation of Accidental Fires and Explosions (CSAFE) -- As one of the Department of Energy's five Advanced Simulation and Computing (ASC) centers, Utah runs detailed simulations of high energy devices and hydro-carbon fires, designed to increase the safety of dangerous material transportation and storage.

"The synergy of graphics combined with computational horsepower provided by NVIDIA GPUs and the CUDA programming environment provides incredible opportunities in science, industry and commerce," stated Dr. Steven Parker, adjunct professor of computer science at the University of Utah and principal research scientist at NVIDIA.

"The worlds of scientific computing and computer graphics owe a great deal to the University of Utah and those who have passed through its halls," said David Kirk, chief scientist at NVIDIA. "CUDA technology has the potential to truly transform industries, as we have already seen in fields such as medicine, geophysics and finance. With a school of Utah's caliber incorporating it into their curriculum and across many of its research facilities, I am personally very excited to see what advances can be made."

The CUDA Center of Excellence at the University of Utah will be using GPU technology to make significant advances in a number of scientific applications, including seismic data processing and visualization, MRI and diffusion tensor image reconstruction, cardiac electrical wave propagation simulation, combustion and fluid dynamics simulation, and several projects in large-scale scientific visualization.

For more information on NVIDIA CUDA, visit CUDA Zone at http://www.nvidia.com/cuda

About University of Utah

With a rich 151-year history, the University of Utah's mission of teaching, research and service lives through its people and purposes. From its beautiful campus in the foothills of the Wasatch Mountains in Salt Lake City, the university reaches out to its diverse student body from all 29 Utah counties, all 50 states and 102 countries with top-rated academic departments, competitive athletics, wide-ranging cultural offerings, and innovative medical programs. In 2005 the University established the office of Technology Venture Development to accelerate the entrepreneurial spirit at the University. Since then, 61 companies have been launched from University technologies.

About NVIDIA

NVIDIA is the world leader in visual computing technologies and the inventor of the GPU, a high-performance processor which generates breathtaking, interactive graphics on workstations, personal computers, game consoles, and mobile devices. NVIDIA serves the entertainment and consumer market with its GeForce(R) products, the professional design and visualization market with its Quadro(R) products, and the high-performance computing market with its Tesla(TM) products. NVIDIA is headquartered in Santa Clara, California, and has offices throughout Asia, Europe, and the Americas. NVIDIA's inaugural NVISION 08 conference will be held August 25-27, 2008 in San Jose, California. For more information, visit http://www.nvidia.com/ and http://www.nvision2008.com/.

Certain statements in this press release including, but not limited to, statements as to: the CUDA Center of Excellence Program; the benefits of the relationship between NVIDIA and the University of Utah; the performance, impact and benefits of CUDA technology; and the impact of parallel computing on the high performance computing industry are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: our reliance on third parties to manufacture, assemble and test our products; software defects; industry adoption of a different software process for parallel computing; changing industry standards; development of faster or more efficient GPU or CPU technology; the impact of technological development and competition; changing customer preferences or demands as well as other factors detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission including its Form 10-Q for the period ended April 27, 2008. Copies of reports filed with the SEC are posted on our website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

Copyright (C) 2008 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, Quadro, Tesla, and CUDA are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries. Other company and product names may be trademarks of the respective companies with which they are associated.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020613/NVDALOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com NVIDIA Corporation

CONTACT: Andrew Humber of NVIDIA Corporation, +1-408-486-8138,
ahumber@nvidia.com

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

Expedia, Inc. Reports Second Quarter 2008 ResultsTripAdvisor Media Network Expands Reach, Eclipses $250MM in Annual Revenues

BELLEVUE, Wash., July 31 /PRNewswire-FirstCall/ -- Expedia, Inc. today announced financial results for its second quarter ended June 30, 2008.

"Expedia extended its global leadership position in travel with its sixth consecutive quarter of double digit revenue growth," said Barry Diller, Expedia, Inc.'s Chairman and Senior Executive. "Despite an uncertain economic environment we intend to aggressively expand our worldwide reach, as evidenced by our acquisition of Virtual Tourist, a leading community of user-generated travel content, and our intended acquisition of Venere, a European agency lodging site."

"Against a backdrop of unprecedented oil prices and airline industry capacity reductions, Expedia employees continued to execute in the second quarter, delivering solid growth in bookings, revenue and OIBA," said Dara Khosrowshahi, Expedia, Inc.'s CEO and President. "With our advertising and media businesses and international sites now delivering over 40 percent of revenue, Expedia has meaningfully diversified its growth drivers, and established a strong foundation for long-term growth in free cash flow and shareholder value."

Financial Summary & Operating Metrics (figures in MM's, except per share amounts) 3 Months 3 Months Y/Y Metric Ended 6.30.08 Ended 6.30.07 Growth ------ -------------- -------------- ---------- Transactions 13.0 11.8 10% Gross bookings $5,933.4 $5,128.0 16% Revenue 795.0 689.9 15% Revenue margin 13.40% 13.45% (5 bps) Gross profit 626.2 546.3 15% Operating income before amortization* ("OIBA") 204.1 187.1 9% Operating income 170.5 153.6 11% Adjusted net income * 120.8 114.9 5% Net income 96.1 96.1 0% Adjusted EPS * $0.40 $0.35 14% Diluted EPS $0.33 $0.30 10% Net cash provided by operating activities 307.3 384.6 (20%) Free cash flow * 269.7 363.9 (26%) * "Operating income before amortization," "Adjusted net income," "Adjusted EPS," and "Free cash flow" are non-GAAP measures as defined by the Securities and Exchange Commission (the "SEC"). Please see "Definitions of Non-GAAP Measures" and "Tabular Reconciliations for Non-GAAP Measures" on pages 15-18 herein for an explanation of non-GAAP measures used throughout this release. Effective Q108 we amended the definition of Adjusted net income and Adjusted EPS. Discussion of Results Gross Bookings & Revenue

Gross bookings increased 16% for the second quarter of 2008 compared with the second quarter of 2007. North America bookings increased 10%, Europe bookings increased 30% (19% excluding the net benefit from foreign exchange) and Other bookings (primarily Egencia(TM) and our Asia Pacific operations) increased 31%.

Revenue increased 15% for the second quarter, primarily driven by increased worldwide merchant hotel revenue and advertising and media revenue. North America revenue increased 10%, Europe revenue increased 28% (17% excluding foreign exchange) and Other revenue increased 36%.

Worldwide merchant hotel revenue increased 10% for the second quarter due to a 13% increase in room nights stayed, including rooms delivered as a component of packages, partially offset by a 2% decrease in revenue per room night. Revenue per night decreased due to a decline in hotel margins, partially offset by a 1% increase in average daily rates.

Worldwide air revenue increased 14% for the second quarter due to a 9% increase in revenue per air ticket and a 4% increase in air tickets sold.

Worldwide revenue from products and services other than merchant hotel and air (including advertising and media, car rentals, destination services, agency hotel and cruises) increased 31% for the second quarter due primarily to increased revenue from advertising and media and car rentals. Package revenue increased 4% from growth in international package gross bookings.

Revenue as a percentage of gross bookings ("revenue margin") was 13.40% for the second quarter, a decrease of 5 basis points. North America revenue margin decreased 2 basis points to 13.55%, Europe revenue margin decreased 26 basis points to 15.23%, and Other revenue margin increased 31 basis points to 8.70%. The second quarter decrease in European revenue margins was primarily due to lower revenue from more competitive hotel pricing. Worldwide and North America revenue margins were relatively flat as an increased mix of advertising and media revenue largely offset the impact of more competitive hotel pricing.

Second quarter revenue growth and revenue margins were negatively impacted by higher revenues from the Easter holiday falling in the first quarter in 2008 compared with the second quarter in 2007.

Profitability

Gross profit for the second quarter of 2008 was $626 million, an increase of 15% compared with the second quarter of 2007 due to increased revenue.

OIBA for the second quarter increased 9% to $204 million, driven primarily by higher revenue. OIBA as a percentage of revenue decreased 145 basis points to 25.67%, primarily reflecting higher growth in technology and content and sales and marketing expenses excluding stock-based compensation as a percentage of revenue. Operating income increased 11% to $171 million primarily due to the same factors driving OIBA growth, as well as lower amortization and stock-based compensation as a percentage of revenue.

Adjusted net income for the second quarter increased $6 million compared to the prior year period driven by higher OIBA, partially offset by higher net interest expense. Net income was flat due to an increase in operating income being offset by a gain related to federal excise tax refunds in the prior year period and higher net interest expense. Second quarter adjusted EPS and diluted EPS were $0.40 and $0.33, respectively. These measures increased 14% and 10% respectively primarily due to lower average share counts primarily resulting from shares repurchased in August 2007.

Cash Flows & Working Capital

For the six months ended June 30, 2008, net cash provided by operating activities was $871 million and free cash flow was $800 million. Both measures include $630 million from net changes in operating assets and liabilities, primarily driven by our merchant hotel business. Free cash flow for the period decreased $83 million from the prior year period primarily due to decreased net changes in operating assets and liabilities (including faster invoice and payment processing for hotel suppliers), higher cash taxes and increased capital expenditures, offsetting increased OIBA.

Recent Highlights Global Presence -- Gross bookings from Expedia, Inc.'s international businesses were $1.88 billion in the second quarter, accounting for 32% of worldwide bookings, up from 28% in the prior year period. Revenue from international businesses was $269 million in the second quarter, or 34% of worldwide revenue, up from 30% in the prior year period. -- Expedia expanded its global footprint with an agreement to purchase Venere(TM) SpA, a leading European online travel provider, which will expand Expedia's European, Middle Eastern and African lodging footprint by over 10,000 properties, and offer hotel supplier partners an agency model booking option. -- hotels.com launched its 42nd point of sale -- http://japan.hotels.com/ -- in Japan, the world's second largest travel market. Brand Portfolio -- The TripAdvisor(R) Media Network continued its expansion with the acquisition of VirtualTourist(R), a leader in user-generated travel content, and its affiliate OneTime(R), a leader in travel booking comparison. With these acquisitions the TripAdvisor(R) Media Network now attracts nearly 32 million unique monthly visitors according to comScore Media Metrix (May 2008). -- Expedia.com(R) and hotels.com(R) came to the aid of gas pump-weary travelers by offering a free $50 Gas Money Prepaid Mastercard(R), for hotel stays of three or more nights booked this summer. -- TripAdvisor(R) expanded its social media footprint with the launch of three leading travel applications (Cities I've Visited(TM), Local Picks(TM) and TravelerIQ(TM)) on MySpace, the world's most popular social network. In addition, lastminute.com announced an agreement to feature branded TripAdvisor hotel reviews throughout its website. -- Expedia(R) Corporate Travel launched its own distinct brand, Egencia(TM), recognizing the growth and scale of a business that has reached over $100 million in trailing twelve months revenue. Egencia also announced the acquisition of Synergi Global Travel Management, a Canadian travel management company, as well as the launch of several site features including hotel reviews, TripAdvisor City Guides and SeatGuru(R) flight seating content. Content & Innovation -- QuickConnect(TM), Expedia's hotel connectivity solution for independent hotels and small to medium-sized hotel chains, has been adopted by over 1,000 hotels in more than 35 countries, facilitating an expansion of hotel inventory and rates on Expedia's worldwide points of sale. -- hotels.com unveiled its welcomerewards(TM) program, enabling travelers to earn one free hotel night stay for every ten nights booked through hotels.com, with no blackout dates or hotel restrictions. -- hotels.com and TripAdvisor both launched applications for Apple's new iPhone, enabling access to hotels.com content and booking capabilities and TripAdvisor's Local Picks(TM) restaurant finder. -- Hotwire(R) launched Trip Watcher, its latest cost-and time-saving travel planning tool. Trip Watcher tracks travelers' specific trip itineraries over a 60-day range, finding the lowest available prices on hotels, airfares and car rentals and offering money saving options such as date flexibility and neighboring airports. -- Expedia.com unveiled its 2nd annual Expedia Insiders' Select(R) list of the world's best hotels (http://www.expedia.com/insidersselect). With Insiders' Select global travelers discover the best hotels among Expedia's nearly 80,000 properties based on Traveler Opinions(R) postings, value ratings and Expedia's experts. Partner Services Group ("PSG") -- Expedia continued to grow its European hotel base, adding 1,700 merchant hotel properties during the second quarter, including long- term, strategic agreements with Barcelo Hotels & Resorts and Sol Melia Hotels & Resorts, making these properties' inventory available on Expedia(R) and hotels.com worldwide points of sale. -- Expedia's worldwide merchant hotel portfolio grew 23% to exceed 42,000 properties, including over 24,000 hotels in the Americas, nearly 16,000 in Europe, the Middle East & Africa, and over 2,000 in the APAC region. -- Expedia reached a multi-year agreement with Budget Rent A Car System, Inc., adding Budget's fleet inventory to the Expedia Preferred Rental Car Program on the company's U.S. websites. Expedia also signed a long-term agreement with Jumeirah Hotels, a leading operator of luxury hotels in Dubai. EXPEDIA, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (Unaudited) Three months ended Six months ended June 30, June 30, -------------------------------------------- 2008 2007 2008 2007 ---------- --------- ---------- ----------- Revenue $795,048 $689,923 $1,482,865 $1,240,434 Cost of revenue (1) 168,874 143,646 320,817 264,944 ---------- --------- ---------- ----------- Gross profit 626,174 546,277 1,162,048 975,490 Operating expenses: Selling and marketing (1) 299,550 255,905 586,672 478,173 General and administrative (1) 84,679 75,733 173,080 151,896 Technology and content (1) 52,744 41,511 105,046 83,763 Amortization of intangible assets 18,660 19,503 36,711 40,699 ---------- --------- ---------- ----------- Operating income 170,541 153,625 260,539 220,959 Other income (expense): Interest income 9,073 10,552 17,188 17,821 Interest expense (13,342) (9,902) (29,042) (21,078) Other, net (5,098) 5,936 (8,771) 441 ---------- --------- ---------- ----------- Total other income (expense), net (9,367) 6,586 (20,625) (2,816) ---------- --------- ---------- ----------- Income before income taxes and minority interest 161,174 160,211 239,914 218,143 Provision for income taxes (65,944) (64,076) (94,916) (87,688) Minority interest in loss of consolidated subsidiaries, net 859 1 2,397 457 ---------- --------- ---------- ----------- Net income $96,089 $96,136 $147,395 $130,912 ========== ========= ========== =========== Net earnings per share available to common stockholders: Basic $0.34 $0.32 $0.52 $0.43 Diluted 0.33 0.30 0.50 0.41 Shares used in computing earnings per share: Basic 285,986 303,035 285,547 305,426 Diluted 293,999 320,196 294,010 321,966 --------- (1) Includes stock-based compensation as follows: Cost of revenue $569 $646 $1,244 $1,529 Selling and marketing 2,836 2,804 6,575 6,039 General and administrative 8,018 7,004 16,968 14,673 Technology and content 3,431 3,518 7,873 7,591 ---------- --------- ---------- ----------- Total stock-based compensation $14,854 $13,972 $32,660 $29,832 ========== ========= ========== =========== EXPEDIA, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) June 30, December 31, 2008 2007 -------------- ------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $1,027,553 $617,386 Restricted cash and cash equivalents 26,937 16,655 Accounts receivable, net of allowance of $8,135 and $6,081 398,500 268,008 Prepaid merchant bookings 129,681 66,778 Prepaid expenses and other current assets 100,688 76,828 -------------- ------------- Total current assets 1,683,359 1,045,655 Property and equipment, net 208,864 179,490 Long-term investments and other assets 112,674 93,182 Intangible assets, net 980,214 970,757 Goodwill 6,136,371 6,006,338 -------------- ------------- TOTAL ASSETS $9,121,482 $8,295,422 ============== ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable, merchant $830,576 $704,044 Accounts payable, other 185,629 148,233 Deferred merchant bookings 1,217,467 609,117 Deferred revenue 19,009 11,957 Income taxes payable 41,729 - Accrued expenses and other current liabilities 284,861 301,001 -------------- ------------- Total current liabilities 2,579,271 1,774,352 Long-term debt 894,296 500,000 Credit facility - 585,000 Deferred income taxes, net 361,772 351,168 Other long-term liabilities 216,800 204,886 Minority interest 59,315 61,935 Commitments and contingencies Stockholders' equity: Preferred stock $.001 par value - - Authorized shares: 100,000 Series A shares issued and outstanding: 1 and 1 Common stock $.001 par value 339 337 Authorized shares: 1,600,000 Shares issued: 338,961 and 337,057 Shares outstanding: 260,901 and 259,489 Class B common stock $.001 par value 26 26 Authorized shares: 400,000 Shares issued and outstanding: 25,600 and 25,600 Additional paid-in capital 5,950,983 5,902,582 Treasury stock - Common stock, at cost (1,730,091) (1,718,833) Shares: 78,060 and 77,568 Retained earnings 749,599 602,204 Accumulated other comprehensive income 39,172 31,765 -------------- ------------- Total stockholders' equity 5,010,028 4,818,081 -------------- ------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $9,121,482 $8,295,422 ============== ============= EXPEDIA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) Six months ended June 30, ------------------------------- 2008 2007 -------------- ------------- Operating activities: Net income $147,395 $130,912 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment, including internal-use software and website development 35,364 28,050 Amortization of intangible assets and stock- based compensation 69,371 70,531 Deferred income taxes (9,082) 722 (Gain) loss on derivative instruments, net (4,580) 4,544 Equity in loss of unconsolidated affiliates 1,916 3,554 Minority interest in loss of consolidated subsidiaries, net (2,397) (457) Foreign exchange (gain) loss on cash and cash equivalents, net 2,314 (4,686) Other 1,147 2,913 Changes in operating assets and liabilities, net of effects from acquisitions: Accounts receivable (118,404) (93,517) Prepaid merchant bookings and prepaid expenses (90,067) (70,854) Accounts payable, merchant 124,336 178,076 Accounts payable, other, accrued expenses and other current liabilities 98,432 118,734 Deferred merchant bookings 608,288 551,691 Deferred revenue 7,021 2,400 -------------- ------------- Net cash provided by operating activities 871,054 922,613 -------------- ------------- Investing activities: Capital expenditures, including internal-use software and website development (70,733) (38,974) Acquisitions, net of cash acquired (178,313) (59,622) Increase in long-term investments and deposits (11,106) (29,594) Proceeds from sale of business to a related party 1,624 - Net cash used in investing activities (258,528) (128,190) -------------- ------------- Financing activities: Credit facility borrowings 90,000 150,000 Credit facility repayments (675,000) (150,000) Proceeds from issuance of long-term debt, net of issuance costs 393,818 - Changes in restricted cash and cash equivalents (11,838) (11,614) Proceeds from exercise of equity awards 3,709 34,885 Excess tax benefit on equity awards 1,551 1,608 Treasury stock activity (11,215) (668,018) Other, net - 393 -------------- ------------- Net cash used in financing activities (208,975) (642,746) Effect of exchange rate changes on cash and cash equivalents 6,616 6,453 -------------- ------------- Net increase in cash and cash equivalents 410,167 158,130 Cash and cash equivalents at beginning of period 617,386 853,274 -------------- ------------- Cash and cash equivalents at end of period $1,027,553 $1,011,404 ============== ============= Supplemental cash flow information Cash paid for interest $28,990 $19,775 Income tax payments, net 48,657 5,888 Income Statement Notes Gross Bookings / Revenue -- Expedia, Inc. makes travel products and services available on a merchant and agency basis. Merchant transactions, which primarily relate to hotel bookings, typically produce a higher level of net revenue per transaction and are generally recognized when the customer uses the travel product or service. Agency revenues are generally recognized at the time the reservation is booked and primarily relate to air transactions. -- Merchant bookings accounted for 43% of total gross bookings in the second quarter compared to 42% in the prior year period due to growth in our merchant air business. Cost of Revenue -- Cost of revenue primarily consists of: (1) costs of our call and data centers, including telesales expense; (2) credit card merchant fees; (3) fees paid to fulfillment vendors for processing airline tickets and related customer services; (4) costs paid to suppliers for certain destination inventory; and (5) reserves and related payments to airlines for tickets purchased with fraudulent credit cards. -- Cost of revenue was 21.2% of revenue for the second quarter of 2008 compared to 20.8% in the prior year period. Excluding stock-based compensation, cost of revenue was 21.2% of revenue for the second quarter of 2008 compared to 20.7% in the prior year period. Cost of revenue increased as a percentage of revenue due primarily to increased expenses in our call and telesales centers, as well as due to our gas rebate promotion. -- Cost of revenue includes depreciation expense of $4 million for the second quarters of 2008 and 2007. Operating Expenses (non-GAAP)

(Stock-based compensation expense has been excluded from all calculations and discussions below)

-- Operating expenses in millions and as a percentage of revenue for the second quarter of 2008 and 2007 were as follows (some numbers may not add due to rounding): Operating Expenses As a % of Revenue ------------------- ------------------- Three months Three months ended ended June 30, June 30, ------------- ------------- Change in 2008 2007 Growth 2008 2007 bps ------- ------- ------ ------ ------- ----- Selling and marketing $296.7 $253.1 17% 37.3% 36.7% 63 General and administrative 76.7 68.7 12% 9.6% 10.0% (32) Technology and content 49.3 38.0 30% 6.2% 5.5% 70 ------- ------- ------ ------ ------- ----- Total operating expenses $422.7 $359.8 17% 53.2% 52.2% 101 Operating expenses include $14 million of depreciation expense for the second quarter of 2008, and $10 million for the comparable prior year period. The increase primarily relates to higher technology and content depreciation expense related to capitalized software. Selling and Marketing (non-GAAP) o Selling and marketing expense primarily relates to traffic generation costs from search engines, brand advertising (primarily television), online advertising and our private label and affiliate programs. o Approximately 23% and 20% of selling and marketing expense in the second quarters of 2008 and 2007 relate to indirect expenses, including personnel-related costs in PSG, the TripAdvisor Media Network and Europe. o The 17% increase in selling and marketing expense in the second quarter was primarily due to increased direct spend at our continental European sites and Hotwire(R), including CarRentals.com(TM). In addition, we increased personnel costs at PSG, TripAdvisor and our European businesses. o We expect selling and marketing expense to increase as a percentage of revenue in 2008 compared to 2007 as we invest in our higher growth and earlier stage international businesses, expand our various sales teams, invest in our global advertising and media businesses and experience continued keyword inflation. General and Administrative (non-GAAP) o General and administrative expense consists primarily of personnel-related costs for support functions that include our executive leadership, finance, legal, tax, technology and human resources functions, as well as fees for professional services that typically relate to legal, tax or accounting engagements. o The 12% increase in general and administrative expense in the second quarter was primarily to support the overall growth of our businesses, including costs related to our information technology efforts and our European businesses. o We expect general and administrative expense to decrease as a percentage of revenue in 2008 compared to 2007. Technology and Content (non-GAAP) o Technology and content expense includes product development expenses principally related to payroll and related expenses, professional fees, licensing costs and software development cost amortization. o The 30% increase in technology and content expense in the second quarter was due to increased personnel costs related to our North America businesses, primarily in our worldwide product development organization and TripAdvisor, as well as an increase in software development cost amortization. o Given historical and ongoing investments in our various initiatives, we expect technology and content expense to increase as a percentage of revenue in 2008 compared to 2007. Stock-Based Compensation Expense -- Stock-based compensation expense relates primarily to expense for restricted stock units ("RSUs") and stock options. Since February 2003 we have awarded RSUs as our primary form of employee stock- based compensation, and these awards generally vest over five years. -- Second quarter stock-based compensation expense was $15 million, consisting of $12 million in expense related to RSUs, and $3 million in stock option expense. -- Second quarter stock-based compensation expense increased $1 million compared to the prior year period due to increased expense related to RSU awards. -- Assuming, among other things, no meaningful modification of existing awards, incremental grants or adjustments to forfeiture estimates, we expect annual stock-based compensation expense will be less than $70 million in 2008. Other, Net -- The $5 million Other, net loss primarily relates to a $4 million foreign exchange loss and $1 million in losses from our equity-method investments. The prior year period Other, net gain was $6 million, primarily related to a $12 million gain related to federal excise tax, partially offset by a $3 million loss on our Ask Notes and $2 million in losses from our equity-method investments. -- $3 million of the $4 million foreign exchange loss in the second quarter of 2008 related to losses from eLong's U.S. dollar cash position and appreciation in the Chinese Renminbi. This loss is excluded from our calculations of Adjusted Net Income and Adjusted EPS. Income Taxes -- The effective tax rates on GAAP pre-tax income were 40.9% for the second quarter of 2008 and 40.0% in the prior year period. The increase in the effective rate was primarily due to higher interest accruals related to uncertain tax positions, partially offset by a lower non-deductible loss on derivatives in the second quarter of 2008 as compared to the prior year period. The effective tax rate was higher than the 35% federal statutory rate primarily due to state income taxes and interest accruals related to uncertain tax positions. -- The effective tax rates on pre-tax adjusted income were 38.9% for the second quarter of 2008 and 38.4% in the prior year period. The effective tax rate for the second quarter of 2008 was higher than the 35% federal statutory rate primarily due to state income taxes and interest accruals related to uncertain tax positions. -- Cash paid for income taxes in the first half of 2008 was $49 million, an increase of $43 million from the prior year primarily due to the impact of new federal regulations regarding the calculation of estimated tax payments. We anticipate lower stock- based compensation related tax deductions in 2008 than in 2007, and therefore expect cash tax payments for full year 2008 will increase significantly compared with 2007. Foreign Exchange -- As Expedia's reporting currency is the U.S. dollar ("USD"), reported financial results are affected by the strength or weakness of the USD in comparison to the currencies of the international markets in which we operate. Management believes investors may find it useful to assess growth rates both with and without the impact of foreign exchange. -- The estimated impact on worldwide and Europe growth rates from foreign exchange in the second quarter 2008 was as follows (some numbers may not add due to rounding): Worldwide Europe ------------------------------ ---------------------------- Impact Impact Y/Y on Y/Y Y/Y on Y/Y growth growth growth growth rates rates rates rates excluding from excluding from Three Y/Y foreign foreign Y/Y foreign foreign months ended growth exchange exchange growth exchange exchange June 30, 2008 rates movements movements rates movements movements -------- ---------- --------- ------- --------- --------- Gross Bookings 15.7% 12.4% 3.3% 30.2% 18.9% 11.3% Revenue 15.2% 11.6% 3.6% 28.1% 17.4% 10.7% -- The positive impact of foreign exchange on our cash balances denominated in foreign currency was $7 million in the first six months of 2008 and $6 million in the prior year period. Both amounts are included in "effect of exchange rate changes on cash and cash equivalents" on our statements of cash flows. These increases arise from an appreciation in foreign currencies compared with the USD. Acquisitions -- The impact of acquisitions on the growth of gross bookings, revenue and OIBA in the second quarter is as follows (some numbers may not add due to rounding): Worldwide ------------------------------------------- Y/Y growth Impact on rates Y/Y Growth Three months ended Y/Y growth excluding rates from June 30, 2008 rates acquisitions acquisitions --------- ------------ ------------- Gross Bookings 15.7% 15.1% 0.6% Revenue 15.2% 14.2% 1.0% OIBA 9.1% 7.6% 1.5% -- During the first half of 2008 we paid cash totaling $178 million for acquisitions, including a $93 million earnout payment related to a prior year acquisition. -- Expedia acquired Virtual Tourist on June 30, 2008, and recorded the purchase price in 'Accrued expenses and other current liabilities' on our balance sheet. The purchase price was paid in cash in early July. In July we entered into an agreement to acquire Venere.com, subject to regulatory approval. We are holding Euro cash balances to economically hedge the purchase price, and expect to incur a foreign exchange gain or loss in the third quarter to reflect fluctuation in the Euro\USD exchange rate between the agreement date and the close date. Adjusted Net Income & Adjusted EPS -- During the first quarter of 2008, we began to exclude foreign exchange gains or losses on USD cash balances held by eLong from adjusted net income and adjusted EPS, as we expect to use the cash to settle foreseeable USD obligations and commitments. Losses were $3 million ($2 million or $0.01 per share net of minority interest), and $2 million ($1 million or $0.00 per share net of minority interest) for the quarters ended June 30, 2008 and 2007, respectively. Balance Sheet Notes Cash, Cash Equivalents and Restricted Cash -- Cash, cash equivalents and restricted cash totaled $1.05 billion at June 30, 2008. This amount includes $27 million in restricted cash and cash equivalents primarily related to merchant air transactions, and $156 million of cash at eLong, whose results are consolidated in our financial statements due to our controlling voting and economic ownership position. -- The $420 million increase in cash, cash equivalents and restricted cash for the six months ended June 30, 2008 principally relates to $630 million in net benefit from changes in operating assets and liabilities and $330 million in OIBA, partially offset by $191 million in net debt repayments, $189 million in acquisitions, long- term investments and deposits, $78 million in cash payments related to taxes and interest expense and $71 million of capital expenditures. Accounts Receivable -- Accounts receivable include receivables from credit card agencies, corporate clients and advertising partners as well as receivables related to agency transactions including those due from airlines and GDS partners. -- Accounts receivable increased $130 million from December 31, 2007 primarily due to a seasonal ramp in our merchant business and the associated credit card receivables, as well as growth in our advertising and media and corporate travel businesses. Prepaid Merchant Booking, Prepaid Expenses and Other Current Assets -- Prepaid merchant bookings primarily relate to our merchant air business and reflect prepayments to our airline partners for their portion of the gross booking, prior to the travelers' dates of travel. The $63 million increase in prepaid merchant bookings from December 31, 2007 is due to a seasonal increase in our merchant air business. -- Prepaid expenses and other current assets are primarily composed of prepaid marketing, prepaid credit card merchant fees, prepaid license and maintenance agreements, and prepaid insurance. Prepaid expenses and other current assets increased $24 million primarily due to increased prepaid credit card merchant fees from growth in our merchant hotel business, and other prepaid expenses, including prepaid marketing. Long-Term Investments and Other Assets -- Long-term investments and other assets include transportation equipment, collateral deposits related to our cross-currency swap agreements, equity investments, and capitalized debt issuance costs. -- The $19 million increase in long-term investments and other assets from December 31, 2007 includes a $10 million increase in amounts held related to our cross-currency swaps and $2 million of issuance costs related to our unregistered 8.5% Senior Notes due 2016 ("8.5% Notes"), which we issued in June 2008. Goodwill and Intangible Assets, Net -- Goodwill and intangible assets, net primarily relates to the acquisitions of hotels.com, Expedia.com, and Hotwire.com(R). -- $868 million of intangible assets, net relates to intangible assets with indefinite lives, which are not amortized, principally related to acquired trade names and trademarks. -- $112 million of intangible assets, net relates to intangible assets with definite lives, which are generally amortized over a period of two to ten years. The majority of this amortization is not deductible for tax purposes. -- Amortization expense related to definite lived intangibles was $19 million for the second quarter 2008 compared with $20 million for the prior year period. This decrease was primarily due to completed amortization of certain technology intangible assets. Assuming no impairments or additional acquisitions, we expect amortization expense for definite lived intangibles of $27 million for the remainder of 2008 and $29 million in 2009. Accounts Payable, Other -- Accounts payable, other primarily consists of payables and accrued expenses related to the day-to-day operations of our business. -- Accounts payable, other increased $37 million from December 31, 2007 primarily due to an increase in accrued marketing expenses to support our various businesses. Deferred Merchant Bookings and Accounts Payable, Merchant -- Deferred merchant bookings consist of amounts received from travelers who have not yet traveled and the balances generally mirror the seasonality pattern of our gross bookings. The payment to suppliers related to these bookings is generally made within two weeks after booking for air travel and, for all other merchant bookings, after the customer's use of services and subsequent billing from the supplier, which billing is reflected as accounts payable, merchant on our balance sheet. Therefore, especially for merchant hotel, there has historically been a significant period of time from the receipt of cash from our travelers to supplier payment. -- As long as the merchant hotel business continues to grow and our business model does not meaningfully change, we expect that changes in working capital related to this business will continue to be a positive contributor to operating and free cash flow. If this business declines or if the model changes significantly, it would negatively affect our working capital. -- Due to various factors, including technology and process initiatives, we paid hotels sooner in the first half of 2008 than in the comparable period of 2007, resulting in an incremental reduction to our overall working capital benefits year over year. We will continue to invest in such initiatives in the second half of 2008. -- For the six months ended June 30, 2008, the change in deferred merchant booking and accounts payable, merchant contributed $733 million to net cash provided by operating activities, primarily related to growth in our merchant hotel business. Accrued Expenses and Other Current Liabilities -- Accrued expenses and other current liabilities principally relate to accruals for cost of service related to our call center and internet services, accruals for service, bonus, salary and wage liabilities, a reserve related to the potential settlement of occupancy tax issues, and accrued interest related to our various debt instruments. -- Accrued expenses and other current liabilities decreased $16 million from December 31, 2007 primarily due to an earn-out payment related to a prior-year acquisition, the payout of annual bonuses in the first quarter and settlement of the Ask Derivative liability. These amounts were partially offset by an accrued liability related to the purchase price for Virtual Tourist, current year bonus accruals and other accrued expenses. Ask Derivative Liability -- In connection with IAC/InterActiveCorp's acquisition of Ask, we issued 4.3 million shares of Expedia, Inc. common stock into an escrow account, which shares (or cash in equal value) were due to holders of Ask convertible notes upon conversion. These shares have been included in diluted shares from the date of our spin-off from IAC. -- During the second quarter the remaining Ask Notes were converted for 0.5 million shares of Expedia common stock. There are no Ask Notes outstanding, and our obligation to satisfy demands for any conversions has ceased. -- For the second quarter we recorded a loss of $400,000 related to the Ask Notes due to the increase in our share price at the conversion date compared to the end of the first quarter 2008. This loss is recorded in other, net on our consolidated statements of income and is excluded from both our OIBA and adjusted net income calculations. Borrowings -- Expedia, Inc. maintains a $1 billion unsecured revolving credit facility, which expires in August 2010. -- As of June 30, 2008, we had no borrowings outstanding under our credit facility, reflecting our repayment of the outstanding balance of $330 million with the proceeds of our 8.5% Notes. -- Outstanding borrowings under the facility bear interest based on our financial leverage, which based on our June 30, 2008 financials equates to a base rate plus 62.5 basis points. At our discretion we can choose a base rate equal to (1) the greater of the Prime Rate or the Federal Funds Rate plus 50 basis points or (2) various LIBOR durations. -- As of June 30, 2008 we were in compliance with the leverage and net worth covenants under the credit facility. Outstanding letters of credit as of that date were $65 million, reducing total borrowing capacity under the facility to $935 million. -- Long-term debt relates to $500 million in registered 7.456% Senior Notes due 2018 (the "7.456% Notes") and $400 million in 8.5% Notes. The 7.456% Notes are repayable in whole or in part on August 15, 2013 at the option of the note holders, and we may redeem the 7.456% Notes at any time at our option subject to a Treasury + 37.5bps make-whole premium. The 8.5% Notes are non-callable until July 2012, but at any time may be redeemed at our option subject to a Treasury + 50bps make-whole premium. After July, 2012 we may redeem the 8.5% Notes at redemption prices ranging from 104.25% to 100% of the principal. -- Annual interest expense related to our 7.456% Notes is $37 million, paid semi-annually on February 15 and August 15 of each year. Annual interest expense related to our 8.5% Notes is $34 million, paid semi-annually on January 1 and July 1, beginning with January 1, 2009. Accrued interest related to these notes was $15 million at June 30, 2008 and is classified as accrued expenses and other current liabilities on our balance sheet. Other Long-Term Liabilities -- Other long-term liabilities include $177 million in uncertain tax positions recorded under FIN 48. This amount increased $5 million compared to $172 million at December 31, 2007 primarily due to accrued interest. -- Other long-term liabilities also includes $31 million of derivative liabilities, primarily related to cross-currency swaps, which increased $10 million from December 31, 2007 primarily due to increased swap interest rates and the weakening of the USD compared with the Euro. Minority Interest -- Minority interest primarily relates to the minority ownership position in eLong, an entity in which we own a 57% interest (51% fully-diluted) and results for which are consolidated for all periods presented. -- During the first quarter of 2008 eLong approved a $20 million share repurchase program. As of May 23, 2008 eLong had repurchased $2.6 million worth of shares, primarily through open market repurchases. Purchase Obligations and Contractual Commitments -- At June 30, 2008 we have agreements with certain vendors under which we have future minimum obligations of $19 million for the remainder of 2008 and $11 million in 2009. These minimum obligations for software, loyalty, telecom, marketing agreements and other support services are less than our projected use for those periods, and we expect payment to be more than the minimum obligations based on our actual use. -- In conjunction with our investment in a travel company, we have entered into a commitment to provide a $10 million revolving operating line of credit and a credit facility for up to $20 million. $1 million was drawn on the line of credit and no amounts were drawn on the credit facility as of June 30, 2008. -- We have entered into a lease for new headquarters office space located in Bellevue, Washington for which we began recognizing rent expense in April 2008 in addition to rent expense on our present location. The ten-year term and cash payments related to this lease are expected to begin in November 2008. -- Our estimated future minimum rental payments under operating leases with non-cancelable lease terms that expire after June 30, 2008 are $17 million for the remainder of 2008, $38 million for 2009, $36 million for 2010, $35 million for 2011, $34 million for 2012, and $128 million for 2013 and thereafter. Common Stock -- In August 2006 our Board of Directors authorized the repurchase of up to 20 million common shares. There is no fixed termination date for the authorization, and as of the date of this release we have not repurchased any shares under this authorization. Class B Common Stock -- There are approximately 26 million shares of Expedia Class B common stock outstanding, all of which are owned by Liberty Media Corporation and its subsidiaries ("Liberty"). Class B shares are entitled to ten votes per share when voting on matters with the holders of Expedia common and preferred stock. -- Through the common stock our Chairman and Senior Executive, Barry Diller, owns directly, as well as the common stock and Class B stock for which he has been assigned an irrevocable proxy from Liberty, Mr. Diller had a controlling 60% voting interest in Expedia, Inc. as of July 21, 2008. Warrants -- As of June 30, 2008 we had 58.5 million warrants outstanding, which, if exercised in full, would entitle holders to acquire 34.6 million common shares of Expedia, Inc. for an aggregate purchase price of approximately $773 million (representing an average of approximately $22 per Expedia, Inc. common share). -- 32.2 million of these warrants are privately held and expire in 2012, and 26.0 million warrants are publicly-traded and expire in February 2009. There are 0.3 million other warrants outstanding. Stock-Based Awards -- At June 30, 2008 we had 18.6 million stock-based awards outstanding, consisting of 9.4 million RSUs and stock options to purchase 9.3 million common shares with a $25.35 weighted average exercise price and weighted average remaining life of 4.3 years. -- During the first half of 2008 we granted 3.4 million RSUs, primarily related to our annual RSU grant for employees occurring in the first quarter of each year. Net of cancellations, expirations and forfeitures occurring during the first half of 2008, RSUs and options increased by 2.6 million. Basic, Fully Diluted and Adjusted Diluted Shares -- Weighted average basic, fully diluted and adjusted diluted share counts for the three months ended June 30, 2008 are as follows (in 000's; some numbers may not add due to rounding): 3 Months Ended 3 Months Ended Shares 6.30.08 6.30.07 -------- ----------- ----------- Basic shares 285,986 303,035 Options 1,270 8,909 Warrants 5,457 6,084 Derivative liabilities 300 501 RSUs 986 1,666 ----------- ----------- Fully diluted shares 293,999 320,196 Additional RSUs, Adjusted Income method 8,382 7,087 ----------- ----------- Adjusted diluted shares 302,380 327,283 =========== =========== -- The decrease in basic, fully diluted and adjusted diluted shares for the second quarter of 2008 as compared to the prior year period primarily relates to the completion of our tender offer for 25.0 million shares in August 2007. -- The maximum possible dilution from various warrant issuances is 34.6 million shares, including 18.4 million shares related to warrants expiring in the first quarter of 2009. As of June 30, 2008, in-the-money warrants expiring in the first quarter of 2009 represented the right to purchase 11.1 million shares, which is significantly higher than the 5.5 million shares represented by warrants above primarily due to offsetting repurchases assumed under the treasury method for diluted share calculations. Expedia, Inc. Trended Operational Metrics (All figures in millions, except per share amounts) -- The following metrics are intended as a supplement to the financial statements found in this press release and in our filings with the SEC. In the event of discrepancies between amounts in these tables and our historical financial statements, readers should rely on our filings with the SEC and financial statements in our most recent earnings release. -- We intend to periodically review and refine the definition, methodology and appropriateness of each of our supplemental metrics. As a result, these metrics are subject to removal and/or change, and such changes could be material. -- "Expedia Worldwide" gross bookings constitute bookings from all Expedia-branded properties, including our international sites and worldwide Egencia businesses, as well as affiliates. "hotels.com Worldwide" gross bookings constitute bookings from all hotels.com- branded properties, including our international sites and affiliates. "Other" gross bookings constitute bookings from Hotwire(R), eLong, and all brands other than Expedia Worldwide and hotels.com Worldwide. -- These metrics do not include adjustments for one-time items, acquisitions, foreign exchange or other adjustments. -- Some numbers may not add due to rounding. 2006 ----------------------------------- Q1 Q2 Q3 Q4 -------- -------- -------- ------- Number of Transactions 10.4 10.4 10.3 8.8 Gross Bookings by Segment North America $3,522 $3,445 $3,104 $2,666 Europe 711 674 724 613 Other 347 368 365 344 -------- -------- -------- ------- Total $4,580 $4,487 $4,193 $3,623 Gross Bookings by Brand Expedia Worldwide Sites $3,631 $3,537 $3,300 $2,920 hotels.com Worldwide Sites 582 621 600 456 Other 367 330 293 246 -------- -------- -------- ------- Total $4,580 $4,487 $4,193 $3,623 Gross Bookings by Agency/Merchant Agency $2,650 $2,675 $2,429 $2,213 Merchant 1,930 1,812 1,763 1,410 -------- -------- -------- ------- Total $4,580 $4,487 $4,193 $3,623 Revenue by Segment North America $382 $456 $450 $379 Europe 85 112 134 121 Other 27 30 30 32 -------- -------- -------- ------- Total $494 $598 $614 $531 Packages Revenue $114 $131 $125 $107 TripAdvisor Media Network Revenue $26 $27 $27 $25 TripAdvisor Media Network OIBA 14 16 15 16 Advertising and Media Revenue (Net) 21 22 25 27 OIBA by Segment North America $147 $212 $204 $172 Europe 15 40 48 55 Other (74) (68) (72) (81) -------- -------- -------- ------- Total $89 $184 $180 $146 Worldwide Merchant Hotel Room Nights 8.0 10.0 10.9 8.6 Room Night Growth 7% 13% 11% 7% ADR Growth 3% 7% 4% 8% Revenue per Night Growth -4% 4% 3% 7% Revenue Growth 3% 17% 14% 15% Worldwide Air (Merchant & Agency) Tickets Sold Growth 2% -4% -7% 1% Airfare Growth 9% 13% 11% 3% Revenue per Ticket Growth -9% -10% -17% -14% Revenue Growth -7% -13% -23% -14% 2007 ----------------------------------- Q1 Q2 Q3 Q4 -------- -------- -------- ------- Number of Transactions 10.9 11.8 11.9 10.5 Gross Bookings by Segment North America $3,559 $3,723 $3,519 $3,136 Europe 940 939 1,074 919 Other 425 466 465 466 -------- -------- -------- ------- Total $4,924 $5,128 $5,058 $4,522 Gross Bookings by Brand Expedia Worldwide Sites $3,947 $4,034 $3,887 $3,547 hotels.com Worldwide Sites 612 696 730 579 Other 365 399 441 396 -------- -------- -------- ------- Total $4,924 $5,128 $5,058 $4,522 Gross Bookings by Agency/Merchant Agency $2,850 $2,959 $2,808 $2,659 Merchant 2,075 2,169 2,249 1,862 -------- -------- -------- ------- Total $4,924 $5,128 $5,058 $4,522 Revenue by Segment North America $406 $505 $534 $452 Europe 110 145 183 169 Other 34 39 42 45 -------- -------- -------- ------- Total $551 $690 $760 $665 Packages Revenue $111 $132 $140 $128 TripAdvisor Media Network Revenue $43 $51 $58 $50 TripAdvisor Media Network OIBA 27 29 27 22 Advertising and Media Revenue (Net) 37 44 51 51 OIBA by Segment North America $164 $227 $239 $192 Europe 26 43 68 71 Other (85) (83) (94) (97) -------- -------- -------- ------- Total $104 $187 $213 $165 Worldwide Merchant Hotel Room Nights 8.3 11.0 12.7 10.2 Room Night Growth 3% 10% 16% 18% ADR Growth 9% 6% 6% 7% Revenue per Night Growth 13% 4% 5% 4% Revenue Growth 17% 14% 22% 23% Worldwide Air (Merchant & Agency) Tickets Sold Growth 5% 14% 15% 15% Airfare Growth 1% -3% 2% 9% Revenue per Ticket Growth -20% -18% -5% -2% Revenue Growth -16% -7% 9% 13% 2008 ------------------ Y/Y Q1 Q2 Growth -------- -------- ------ Number of Transactions 12.6 13.0 10% Gross Bookings by Segment North America $4,087 $4,099 10% Europe 1,257 1,223 30% Other 559 611 31% -------- -------- ------ Total $5,902 $5,933 16% Gross Bookings by Brand Expedia Worldwide Sites $4,631 $4,552 13% hotels.com Worldwide Sites 745 806 16% Other 527 576 45% -------- -------- ------ Total $5,902 $5,933 16% Gross Bookings by Agency/Merchant Agency $3,301 $3,357 13% Merchant 2,602 2,576 19% -------- -------- ------ Total $5,902 $5,933 16% Revenue by Segment North America $494 $556 10% Europe 146 186 28% Other 47 53 36% -------- -------- ------ Total $688 $795 15% Packages Revenue $125 $137 4% TripAdvisor Media Network Revenue $72 $79 54% TripAdvisor Media Network OIBA 35 45 56% Advertising and Media Revenue (Net) 64 74 68% OIBA by Segment North America $195 $248 9% Europe 30 58 36% Other (100) (102) -23% -------- -------- ------ Total $126 $204 9% Worldwide Merchant Hotel Room Nights 10.2 12.5 13% Room Night Growth 23% 13% 13% ADR Growth 3% 1% 1% Revenue per Night Growth -1% -2% -2% Revenue Growth 22% 10% 10% Worldwide Air (Merchant & Agency) Tickets Sold Growth 11% 4% 4% Airfare Growth 8% 12% 12% Revenue per Ticket Growth 6% 9% 9% Revenue Growth 18% 14% 14% Notes & Definitions:

Number of Transactions -- Quantity of purchases reported as booked, net of cancellations. Packages purchased using our packages wizard, which by definition include a merchant hotel, are recorded as a single transaction.

Gross Bookings -- Total retail value of transactions booked for both agency and merchant transactions, recorded at the time of booking. Bookings include the total price due for travel, including taxes, fees and other charges, and are generally reduced for cancellations and refunds.

North America -- Reflects results for travel products and services provided to customers in the United States, Canada, Mexico and Latin America, as well as results from TripAdvisor Media Network.

Europe -- Reflects results for travel products and services provided through localized Expedia websites in Austria, Belgium, Denmark, France, Germany, Ireland, Italy, the Netherlands, Norway, Spain, Sweden and the United Kingdom and localized versions of hotels.com in various European countries.

Other -- Includes Egencia, Asia Pacific and unallocated corporate functions and expenses.

TripAdvisor Media Network -- Revenue and OIBA before inter-company eliminations include Expedia, Inc. expenditures on TripAdvisor sites, recorded at market-comparable rates.

Merchant Hotel Room Nights -- Worldwide merchant hotel nights, net of cancellations. With the exception of Hotwire, which records room nights upon booking, nights are reported as stayed. This metric includes nights stayed on both a package and stand-alone basis.

Definitions of Non-GAAP Measures

Expedia, Inc. reports Operating Income Before Amortization, Adjusted Net Income, Adjusted EPS, Free Cash Flow and non-GAAP operating expense (non-GAAP selling and marketing, non-GAAP general and administrative and non-GAAP technology and content), all of which are supplemental measures to GAAP and are defined by the SEC as non-GAAP financial measures. These measures are among the primary metrics by which management evaluates the performance of the business, on which internal budgets are based and by which management is compensated. Management believes that investors should have access to the same set of tools that management uses to analyze our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP. We endeavor to compensate for the limitation of the non-GAAP measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP measures.

Operating Income Before Amortization ("OIBA") is defined as operating income plus: (1) stock-based compensation expense, (2) amortization of intangible assets and goodwill and/or intangible asset impairment, if applicable and (3) certain one-time items, if applicable. OIBA represents the combined operating results of Expedia, Inc.'s businesses, taking into account depreciation (including internal-use software and website development), which we believe is an ongoing cost of doing business, but excluding the effects of other non-cash expenses that may not be indicative of our core business operations. Management believes this performance measure is useful to investors because it corresponds more closely to the cash operating income generated from our core operations by excluding significant non-cash operating expenses such as stock-based compensation, and because it provides greater insight into management decision making at Expedia, Inc. as OIBA is our primary internal metric for evaluating the performance of our businesses. OIBA has certain limitations in that it does not take into account the impact of certain expenses to Expedia, Inc.'s statements of income, including stock- based compensation, acquisition-related accounting and certain one-time items, if applicable. Due to the high variability and difficulty in predicting certain items that affect net income, such as tax rates, stock price and interest rates, Expedia, Inc. is unable to provide a reconciliation to net income on a forward-looking basis without unreasonable efforts.

Adjusted Net Income generally captures all items on the statements of income that have been, or ultimately will be, settled in cash and is defined as net income available to stockholders plus net of tax (1) stock-based compensation expense, (2) amortization of intangible assets, including as part of equity-method investments, and goodwill and/or intangible impairment, if applicable, (3) one-time items, (4) mark to market gains and losses on derivative liabilities, (5) currency gains or losses on U.S. dollar denominated cash equivalents held by eLong, (6) discontinued operations and (7) the minority interest impact of the aforementioned adjustment items. We believe Adjusted Net Income is useful to investors because it represents Expedia, Inc.'s combined results, taking into account depreciation, which management believes is an ongoing cost of doing business, but excluding the impact of other non-cash expenses and items not directly tied to the core operations of our businesses.

Adjusted EPS is defined as Adjusted Net Income divided by weighted fully diluted shares outstanding for Adjusted EPS purposes. We include dilution from options and warrants per the treasury stock method and include all shares relating to RSUs in shares outstanding for Adjusted EPS. This differs from the GAAP method for including RSUs, which treats them on a treasury method basis. Shares outstanding for Adjusted EPS purposes are therefore higher than shares outstanding for GAAP EPS purposes. We believe Adjusted EPS is useful to investors because it represents, on a per share basis, Expedia's consolidated results, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other items which are not allocated to the operating businesses such as interest expense, taxes, foreign exchange gains or losses, and minority interest, but excluding the effects of non-cash expenses not directly tied to the core operations of our businesses. Adjusted Net Income and Adjusted EPS have similar limitations as OIBA. In addition, Adjusted Net Income does not include all items that affect our net income and net income per share for the period. Therefore, we think it is important to evaluate these measures along with our consolidated statements of income.

Free Cash Flow is defined as net cash flow provided by operating activities less capital expenditures. Management believes Free Cash Flow is useful to investors because it represents the operating cash flow that our operating businesses generate, less capital expenditures but before taking into account other cash movements that are not directly tied to the core operations of our businesses, such as financing activities, foreign exchange or certain investing activities. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, it is important to evaluate Free Cash Flow along with the consolidated statements of cash flows.

Non-GAAP cost of revenue, selling and marketing, general and administrative and technology and content expenses excluding stock-based compensation exclude stock-based compensation related to expenses for stock options, restricted stock units and other equity compensation under FAS 123(R). Expedia, Inc. excludes stock-based compensation expenses from these measures primarily because they are non-cash expenses that we do not believe are necessarily reflective of our ongoing cash operating expenses and cash operating income. In addition, due to historical accounting charges and credits related to our spin-off from IAC, changes in forfeiture estimates and other events, stock-based compensation has been highly variable in some historical quarters, impairing year-on-year and quarter-to-quarter comparability. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting FAS 123(R), management believes that providing non-GAAP financial measures that exclude stock-based compensation allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies, as well as providing management with an important tool for financial operational decision making and for evaluating our own recurring core business operating results over different periods of time. There are certain limitations in using financial measures that do not take into account stock-based compensation, including the fact that stock- based compensation is a recurring expense and a valued part of employees' compensation. Therefore it is important to evaluate both our GAAP and non-GAAP measures. See the Note to the Consolidated Statements of Income for stock- based compensation by line item.

Tabular Reconciliations for Non-GAAP Measures Operating Income Before Amortization Three months ended Six months ended June 30, June 30, ------------------- ------------------ 2008 2007 2008 2007 --------- --------- --------- --------- (in thousands) OIBA $204,055 $187,100 $329,910 $291,490 Amortization of intangible assets (18,660) (19,503) (36,711) (40,699) Stock-based compensation (14,854) (13,972) (32,660) (29,832) --------- --------- --------- --------- Operating income 170,541 153,625 260,539 220,959 Interest income (expense), net (4,269) 650 (11,854) (3,257) Other, net (5,098) 5,936 (8,771) 441 Provision for income taxes (65,944) (64,076) (94,916) (87,688) Minority interest in loss of consolidated subsidiaries, net 859 1 2,397 457 --------- --------- --------- --------- Net income $96,089 $96,136 $147,395 $130,912 ========= ========= ========= ========= Adjusted Net Income & Adjusted EPS Three months ended Six months ended June 30, June 30, ------------------- ------------------ 2008 2007 2008 2007 ------------------- ------------------ (in thousands, except per share data) Net income $96,089 $96,136 $147,395 $130,912 Amortization of intangible assets 18,660 19,503 36,711 40,699 Stock-based compensation 14,854 13,972 32,660 29,832 Foreign currency loss on U.S. dollar cash balances held by eLong 2,693 2,007 7,968 3,170 Federal excise tax refunds - (12,058) - (12,058) (Gain) loss on derivative instruments, net 400 3,153 (4,580) 4,544 Amortization of intangible assets as part of equity method investments 610 551 1,260 551 Minority interest (1,262) (1,072) (3,463) (1,789) Provision for income taxes (11,202) (7,329) (26,110) (21,415) --------- --------- --------- --------- Adjusted net income $120,842 $114,863 $191,841 $174,446 ========= ========= ========= ========= GAAP diluted weighted average shares outstanding 293,999 320,196 294,010 321,966 Additional restricted stock units 8,382 7,087 7,791 6,526 --------- --------- --------- --------- Adjusted weighted average shares outstanding 302,380 327,283 301,801 328,492 ========= ========= ========= ========= Diluted earnings per share $0.33 $0.30 $0.50 $0.41 ========= ========= ========= ========= Adjusted earnings per share $0.40 $0.35 $0.64 $0.53 ========= ========= ========= ========= Free Cash Flow Three months ended Six months ended June 30, June 30, ------------------- ------------------ 2008 2007 2008 2007 --------- --------- --------- --------- (in thousands) Net cash provided by operating activities $307,275 $384,557 $871,054 $922,613 Less: capital expenditures (37,545) (20,642) (70,733) (38,974) --------- --------- --------- --------- Free cash flow $269,730 $363,915 $800,321 $883,639 --------- --------- --------- ---------

Non-GAAP cost of revenue, selling and marketing, general and administrative and technology and content expenses excluding stock-based compensation

Three months ended Six months ended June 30, June 30, ------------------- ------------------ 2008 2007 2008 2007 --------- --------- --------- --------- (in thousands) Cost of revenue $168,874 $143,646 $320,817 $264,944 Less: stock-based compensation (569) (646) (1,244) (1,529) --------- --------- --------- --------- Cost of revenue excluding stock- based compensation $168,305 $143,000 $319,573 $263,415 Selling and marketing expense $299,550 $255,905 $586,672 $478,173 Less: stock-based compensation (2,836) (2,804) (6,575) (6,039) --------- --------- --------- --------- Selling and marketing expense excluding stock-based compensation $296,714 $253,101 $580,097 $472,134 General and administrative expense $84,679 $75,733 $173,080 $151,896 Less: stock-based compensation (8,018) (7,004) (16,968) (14,673) --------- --------- --------- --------- General and administrative expense excluding stock-based compensation $76,661 $68,729 $156,112 $137,223 Technology and content expense $52,744 $41,511 $105,046 $83,763 Less: stock-based compensation (3,431) (3,518) (7,873) (7,591) --------- --------- --------- --------- Technology and content expense excluding stock-based compensation $49,313 $37,993 $97,173 $76,172 Conference Call

Expedia, Inc. will audiocast a conference call to discuss second quarter 2008 financial results and certain forward-looking information on Thursday, July 31, 2008 at 8:00 a.m. Pacific Time (PT). The audiocast will be open to the public and available via http://www.expediainc.com/ir. Expedia, Inc. expects to maintain access to the audiocast on the IR website for approximately three months subsequent to the initial broadcast.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance. These forward-looking statements are based on management's expectations as of July 31, 2008 and assumptions which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. The use of words such as "intends" and "expects" among others, generally identify forward-looking statements. However, these words are not the exclusive means of identifying such statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements and may include statements relating to future revenues, expenses, margins, profitability, net income, earnings per share and other measures of results of operation and the prospects for future growth of Expedia, Inc.'s business.

Actual results and the timing and outcome of events may differ materially from those expressed or implied in the forward-looking statements for a variety of reasons, including, among others: changes in Expedia, Inc.'s relationships and contractual agreements with travel suppliers or GDS partners; adverse changes in senior management; the rate of growth of online travel; our inability to recognize the benefits of our investment in technologies; changes in the competitive environment, the e-commerce industry and broadband access and our ability to respond to such changes; declines or disruptions in the travel industry (including those caused by decreased consumer and business spending, adverse weather, bankruptcies, health risks, war, terrorism and/or general economic downturns); the rate of online migration in the various geographies and markets in which Expedia, Inc. operates, including Eastern Europe and Asia; fluctuations in foreign exchange rates; changing laws, rules and regulations and legal uncertainties relating to our business; Expedia, Inc.'s ability to expand successfully in international markets; possible charges resulting from, among other events, platform migration; failure to realize cost efficiencies; the successful completion of any future corporate transactions or acquisitions; and the integration of current and acquired businesses; and other risks detailed in Expedia, Inc.'s public filings with the SEC, including Expedia, Inc.'s annual report on Form 10-K for the year ended December 31, 2007.

Except as required by law, Expedia, Inc. undertakes no obligation to update any forward-looking or other statements included in this press release, whether as a result of new information, future events or otherwise.

About Expedia, Inc.

Expedia, Inc. is the world's leading online travel company, empowering business and leisure travelers with the tools and information they need to easily research, plan, book and experience travel. Expedia, Inc. also provides in-destination concierge service and activity desks for travelers. The Expedia, Inc. portfolio of brands includes: Expedia.com(R), hotels.com(R), Hotwire(R), Egencia(TM) (formerly Expedia Corporate Travel), TripAdvisor(R), Expedia Local Expert(TM), Classic Vacations(R) and eLong(TM). Expedia, Inc.'s companies operate more than 60 global points of sale in more than 40 countries, with sites in North America, South America, Latin America, Europe, Middle East, Africa and Asia Pacific. Expedia, Inc. is a component of the S&P 500 index. For more information, visit http://www.expediainc.com/ .

Expedia, Expedia.com and Egencia are trademarks of Expedia, Inc. Classic Vacations is a trademark of Classic Vacations, LLC. hotels.com is a trademark of hotels.com, L.P., a subsidiary of hotels.com. Hotwire is a trademark of Hotwire, Inc. TripAdvisor is a trademark of TripAdvisor, LLC. Other logos or product and company names mentioned herein may be the property of their respective owners.

(C) 2008 Expedia, Inc. All rights reserved. CST: 2029030-40

Expedia, Inc.

CONTACT: Investor Relations, +1-425-679-3555, ir@expedia.com, or
Communications, +1-425-679-4317, press@expedia.com, both of Expedia, Inc.

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

BT Results - First Quarter to June 30, 2008 - Key Points

LONDON, July 31 /PRNewswire-FirstCall/ --

-- Revenue of 5,177 million pounds, up 3 per cent -- EBITDA before specific items(1) and leaver costs of 1,433 million pounds, up 1 per cent -- Operating profit before specific items(1) and leaver costs of 742 million pounds, up 4 per cent -- Profit before taxation, specific items(1) and leaver costs of 613 million pounds, down 7 per cent -- Earnings per share before specific items(1) and leaver costs of 6.1 pence, up 2 per cent -- Free cash outflow of 734 million pounds -- 13.0 million broadband end users(2) of which BT's retail share was 35 per cent, with 31 per cent of net additions in the quarter

The income statement, cash flow statement and balance sheet from which this information is extracted are set out on pages 17 to 22.(*)

[NOTE: FULL TEXT OF ANNOUNCEMENT IS AVAILABLE FROM BT PUBLIC RELATIONS]. Chief Executive's statement

Ian Livingston, Chief Executive of BT , commenting on the first quarter results, said:

"BT has continued to grow revenue, EBITDA(3) and earnings per share(3) in the first quarter.

BT Global Services has increased revenue by 13 per cent with strong growth of 33 per cent outside the UK. We achieved total contract wins of 8.2 billion pounds over the last twelve months, and the pipeline of new business remains strong.

BT Retail performed well with revenue growth of 3 per cent and double digit profit growth. BT Wholesale has won managed network solutions contracts of 1.2 billion pounds over the last twelve months.

We are committed to delivering long term shareholder value and will continue to invest in the future growth of our business. We have announced plans to invest 1.5 billion pounds to make fibre-based, super-fast broadband available to as many as 10 million homes in the UK by 2012, dependent upon an appropriate regulatory environment.

Our full year guidance remains unchanged -- we continue to expect to deliver growth in revenue, EBITDA(3), earnings per share(3) and dividends per share in this financial year."

(1) Specific items are significant one off or unusual items as defined in note 4 on pages 26 to 27.

(2) DSL and LLU connections. (3) Before specific items and leaver costs. RESULTS FOR THE FIRST QUARTER ENDED JUNE 30, 2008 First quarter Year ended Better March 31 2008 2007 (worse) 2008 pounds m pounds m % pounds m Revenue 5,177 5,033 3 20,704 EBITDA - before specific items and leaver costs 1,433 1,425 1 5,911 - before specific items 1,360 1,417 (4) 5,784 Operating profit - before specific items and leaver costs 742 716 4 3,022 - before specific items 669 708 (6) 2,895 - after specific items 642 658 (2) 2,356 Profit before taxation - before specific items and leaver costs 613 658 (7) 2,633 - before specific items 540 650 (17) 2,506 - after specific items 513 600 (15) 1,976 Earnings per share - before specific items and leaver costs 6.1p 6.0p 2 25.0p - before specific items 5.4p 5.9p (8) 23.9p - after specific items 5.1p 7.4p (31) 21.5p Capital expenditure 802 903 11 3,339 Free cash flow (734) (152)(1) - 1,503(1) Net debt 10,581 8,631 (23) 9,460

(1) Includes tax receipts of 504 million pounds and payment of pension deficiency contributions of 320 million pounds.

The commentary focuses on the results before specific items and leaver costs. This is consistent with the way that financial performance is measured by management and we believe allows a meaningful analysis to be made of the trading results of the group. Specific items are defined in note 4 on pages 26 to 27.

The income statement, cash flow statement and balance sheet are provided on pages 17 to 22. A reconciliation of EBITDA before specific items and leaver costs to group operating profit is provided on page 31. A definition and reconciliation of free cash flow and net debt are provided on pages 28 to 30.

GROUP RESULTS First quarter ended June 30, 2008

Revenue was 3 per cent higher at 5,177 million pounds in the quarter with continued growth in managed solutions and broadband and convergence revenue. EBITDA before specific items and leaver costs increased by 1 per cent year on year. Earnings per share before specific items and leaver costs increased by 2 per cent to 6.1 pence.

Our BT Global Services business achieved contract wins of 1.9 billion pounds in the first quarter, with 8.2 billion pounds achieved over the last twelve months.

We had 13.0 million wholesale broadband connections (DSL and LLU) at June 30, 2008, including 4.8 million local loop unbundled lines. This represents an increase of 1.8 million wholesale broadband connections year on year. There were 338,000 net additional broadband connections in the quarter. Our retail share of those net additions was 103,000, being 31 per cent, and we remain the UK's number one retail broadband provider with a customer base of 4.5 million at June 30, 2008, which represents a market share of 35 per cent.

Our BT Wholesale managed network solutions business achieved contract wins of 490 million pounds in the first quarter, with 1.2 billion pounds achieved over the last twelve months.

Revenue

Revenue was 3 per cent higher than last year, including a 93 million pounds favourable exchange rate movement. Managed solutions revenue grew by 21 per cent to 1,408 million pounds, and broadband and convergence revenue increased by 4 per cent to 640 million pounds. Managed solutions includes revenue from our networked IT services, managed network solutions and MPLS. Broadband and convergence revenue includes revenue from broadband, LLU, mobility and convergence solutions. The growth in managed solutions was mainly due to 17 per cent growth in networked IT services and 36 per cent growth in MPLS revenue. This revenue growth in the quarter was partially offset by a 6 per cent decline in revenue from calls and lines to 1,647 million pounds, together with a 7 per cent decline in revenue from transit, conveyance, interconnect circuits, WLR, global carrier and other wholesale products to 827 million pounds.

Revenue from our Major corporate customer segment increased by 12 per cent to 1,961 million pounds, reflecting the increased take up of our networked IT services, the impact of foreign exchange and recent acquisitions by BT Global Services.

Revenue from our Business customer segment (comprising smaller and medium sized UK businesses) grew by 5 per cent to 661 million pounds, continuing the recent trend. This reflects both organic growth in the UK as well as the contribution from our acquisitions of Lynx and Basilica last year.

Revenue from our Consumer customer segment of 1,228 million pounds was broadly flat year on year, with the impact of call package price reductions and a decline in calls revenue being offset by growth in broadband revenue. The 12 month rolling average revenue per consumer household increased by 4 pounds in the quarter to 278 pounds, reflecting the increasing number of customers taking multiple services from BT. Increased broadband revenue and the growth of value added propositions per household, have more than offset the lower call package prices in the quarter.

Wholesale (UK and global carrier) customer revenue decreased by 7 per cent to 1,320 million pounds as a result of the impact of volume and price reductions on DSL broadband and the decrease in low margin transit revenue and conveyance volumes, which was partially offset by growth in managed network solutions revenue, migrations to local loop unbundling (LLU) arrangements, and growth in global carrier revenue of 19 per cent.

Operating results

Group operating costs before specific items and leaver costs increased by 3 per cent to 4,525 million pounds, partly due to exchange rate movements. Staff costs before leaver costs increased by 5 per cent to 1,370 million pounds, largely due to acquisitions made in the past year, with the impact of pay inflation being largely offset by efficiency savings. Leaver costs before specific items were 73 million pounds in the quarter (8 million pounds last year), mainly due to the earlier timing of leaver programmes this year. Payments to other telecommunication operators decreased by 2 per cent to 1,037 million pounds, with the growth in BT Global Services being more than offset by the decline in transit volumes and prices. Other operating costs before specific items of 1,585 million pounds increased by 6 per cent, reflecting increased costs of sales due to growth in the networked IT services business, as well as the impact of acquisitions and higher energy and fuel costs, and have been partially offset by cost efficiency savings. Efficiency savings were 145 million pounds in the quarter and we have increased our full year target by 100 million pounds to achieve total savings of about 800 million pounds in the year. Depreciation and amortisation decreased by 3 per cent year on year to 691 million pounds, largely as the result of some legacy assets becoming fully depreciated. Other operating income before specific items increased by 23 million pounds to 90 million pounds in the quarter, which included some up front benefits from the transformation of our operational cost base through global sourcing and process improvement, together with income from the sale of scrap materials and cable recoveries.

Group operating profit before specific items and leaver costs increased by 4 per cent to 742 million pounds. Group operating profit margin before specific items and leaver costs increased to 14.3 per cent compared with 14.2 per cent last year, the sixth consecutive quarter of year on year margin expansion.

Earnings

Net finance expense before specific items was 130 million pounds, an increase of 75 million pounds against last year. The increase in net finance expense primarily reflects the higher average net debt, due mainly to the share buyback programme, together with a reduction in finance income associated with our defined benefit pension scheme to 78 million pounds (105 million pounds last year).

The effective tax rate on the profit before specific items was 22.8 per cent (24.8 per cent last year) compared with the UK statutory rate of 28 per cent (30 per cent last year), reflecting the continued focus on tax efficiency within the group.

Profit before taxation, specific items and leaver costs of 613 million pounds decreased by 7 per cent.

Earnings per share before specific items and leaver costs increased by 2 per cent to 6.1 pence. This is based on average shares in issue of 7,731 million (8,216 million last year) with the reduction due to the shares repurchased under the buyback programme.

Specific items

Specific items are defined in note 4 on pages 26 to 27. Specific items were a net charge before tax of 27 million pounds (50 million pounds last year) and a net charge after tax of 19 million pounds (119 million pounds credit last year). Specific items before tax wholly relate to restructuring costs (49 million pounds last year) incurred on our transformation and reorganisation activities in the quarter which mainly comprised manager leaver costs and transformation programme costs. Last year specific tax items included a 154 million pounds tax credit relating to the re-measurement of deferred tax balances for the change in the UK statutory corporation tax rate to 28 per cent.

Earnings per share after specific items was 5.1 pence in the quarter (7.4 pence last year).

Cash flow and net debt

Net cash inflow from our operating activities in the first quarter decreased to 387 million pounds compared with 848 million pounds last year. This was reflected in free cash flow which was an outflow of 734 million pounds compared with an outflow of 152 million pounds last year. The higher free cash outflow is primarily the result of a higher working capital outflow of 962 million pounds (691 million pounds last year), which is expected to largely reverse in the second half of the year. In addition there was a higher net cash outflow in respect of net interest paid of 285 million pounds (182 million pounds last year) as a result of the timing of interest coupon dates on new debt raised in the last year and a one off interest receipt from HMRC last year. In addition, last year free cash flow benefited from the receipt of 504 million pounds from the settlement of open tax years up to and including 2004/5 agreed with HMRC, offset by pension deficiency contributions of 320 million pounds, both of which are non recurring in the current financial year.

Net cash outflow for the purchase of property, plant and equipment and software was marginally up at 836 million pounds (819 million pounds last year). The net cash outflow on acquisition of subsidiaries in the quarter was 94 million pounds (164 million pounds last year) and related principally to the acquisition of Wire One Holdings Inc, a video conferencing company based in the US. During the quarter we raised new long term borrowings of 794 million pounds at an average annualised interest rate of 7.7 per cent. We repurchased 118 million shares (113 million last year) for a total consideration of 257 million pounds (365 million pounds last year), resulting in a net cash outflow of 271 million pounds (382 million pounds last year). As announced earlier this month, the share buyback programme is being suspended with effect from July 31, 2008 as a result of our strategic investment in fibre deployment.

Net debt was 10,581 million pounds at June 30, 2008 compared with 8,631 million pounds at June 30, 2007 and 9,460 million pounds at March 31, 2008. Free cash flow and net debt are defined and reconciled in notes 7 and 8 on pages 28 to 30.

Pensions

The BT Pension Scheme IAS 19 valuation deficit at June 30, 2008 was 0.6 billion pounds, net of tax (0.8 billion pounds gross of tax), compared with a surplus of 1.4 billion pounds at June 30, 2007 (2.0 billion pounds gross of tax). The BT Pension Scheme had assets of 36.8 billion pounds at June 30, 2008 (39.5 billion pounds at June 30, 2007).

Next Generation Access

As part of our wider strategy of delivering next generation broadband services nationwide, we recently announced plans to invest 1.5 billion pounds to make fibre-based, super-fast broadband available to as many as 10 million homes in the UK by 2012. A supportive and enduring regulatory environment is essential if this investment is to take place. Therefore we will be discussing with Ofcom the conditions that would be necessary to enable this programme to progress. These include removing current barriers to investment and making sure that anyone who chooses to invest in fibre can earn a fair rate of return for their shareholders.

BT plans to invest around 1.5 billion pounds in total in the programme, of which around 1 billion pounds is incremental to BT's existing capital expenditure plans. We expect the initial investment in the programme will result in around 100 million pounds of incremental capital expenditure in each of the 2008/9 and 2009/10 financial years, taking the total expected capital expenditure in those years to around 3.2 billion pounds and 3.1 billion pounds, respectively. The remaining 800 million pounds incremental spend will be spread over the following three financial years.

Given the strategic priority of this investment, the board is suspending the current share buyback programme with effect from July 31, 2008. As of this date, we have returned in excess of 1.8 billion pounds of the planned 2.5 billion pounds buyback programme.

21st Century Network

The rollout of our 21st Century Network (21CN) continued during the quarter in line with the deployment approach outlined in the fourth quarter, with a focus on the implementation of new services ahead of replicating legacy services.

We introduced next generation broadband to the wholesale market on April 30, 2008 from 21CN enabled exchanges, supporting an addressable market of some one million UK homes. Availability of the service will rise progressively during the rest of this financial year to reach an addressable market of 10 million homes by April 2009.

BT also launched 21CN Ethernet during the fourth quarter, available from over 100 nodes across the UK. This footprint will rise progressively to over 600 nodes by April 2009, providing BT with the widest national Ethernet footprint in the UK.

The national infrastructure rebuild of metro and core sites in the UK is now complete. For the remainder of this year, the focus will be on the completion of the necessary UK transmission infrastructure.

On July 29, 2008 we announced the acquisition of Ribbit Corporation, a software development company based in the U.S., for $105 million. The acquisition supports our transformational strategy and will accelerate the evolution of our industry-leading 21CN software development kits by providing an established, easy-to-use network based platform that allows third party developers to create new and innovative voice-enabled applications and services.

Outlook

We expect to see continued strong revenue growth in BT Global Services but EBITDA margins may fall slightly in 2008/9 in part due to currency movements. However, we remain committed to achieving the 15 per cent EBITDA margin target and are creating the foundations this year for future margin expansion. In BT Retail we expect to see solid EBITDA growth this year. In BT Wholesale we expect the trends in the second and third quarters to be similar to those seen in the first quarter, but improving in the last quarter of the year. We expect a stable performance in Openreach for the year.

For the year, we expect the group to continue to deliver revenue growth as we continue our transformation from a fixed-line business into a software-driven communications services company. We remain focused on driving efficiencies across the group and have increased our gross cost savings target from 700 million pounds to some 800 million pounds, which will contribute towards growth in EBITDA before specific items and leaver costs. We expect to continue to increase our earnings per share before specific items and leaver costs, despite the year on year reduction in net finance income associated with the pension scheme.

As a result of our additional investment in a fibre-based next generation access network, we expect capital expenditure to be about 100 million pounds higher than our previous targets in each of the 2008/9 and 2009/10 financial years, taking the total expected capital expenditure in those years to around 3.2 billion pounds and 3.1 billion pounds, respectively. The remaining incremental spend of 800 million pounds will be spread over the following three financial years. As announced on July 15, 2008 with our investment in Next Generation Access, free cash flow in 2008/9 will reflect the 100 million pounds incremental capital expenditure and is expected to out turn at around 1.4 billion pounds.

We remain committed to delivering value for shareholders and expect to increase dividends per share in 2008/9.

BT's final dividend of 10.4 pence per share will be paid on September 15, 2008 to shareholders on the register on August 22, 2008. The ex-dividend date is August 20, 2008.

The second quarter results for 2008/9 are expected to be announced on November 13, 2008.

Forward-looking statements -- caution advised

Certain statements in this results release are forward-looking and are made in reliance on the safe harbour provisions of the US Private Securities Litigation Reform Act of 1995. These statements include, without limitation, those concerning: expectations of continued growth in revenue, EBITDA, earnings per share and dividends per share; growth in Global Services' revenue, and EBITDA margin expansion; BT Retail EBITDA growth and improving trends in BT Wholesale; continued growth in the broadband market; further gross cost savings; expectations regarding capital expenditure, and levels of free cash flow; planned investment in fibre-based super-fast broadband; investment in, and the delivery and benefits of, BT's 21st Century Network and growth of the 21CN Ethernet footprint; and the scope and delivery of next generation services and applications.

Although BT believes that the expectations reflected in these forward- looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

Factors that could cause differences between actual results and those implied by the forward-looking statements include, but are not limited to: material adverse changes in economic conditions in the markets served by BT; future regulatory actions and conditions in BT's operating areas, including competition from others; selection by BT and its lines of business of the appropriate trading and marketing models for its products and services; fluctuations in foreign currency exchange rates and interest rates; technological innovations, including the cost of developing new products, networks and solutions and the need to increase expenditures for improving the quality of service; prolonged adverse weather conditions resulting in a material increase in overtime, staff or other costs; developments in the convergence of technologies; the anticipated benefits and advantages of new technologies, products and services not being realised; and general financial market conditions affecting BT's performance and ability to raise finance. BT undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

BT

CONTACT: Diane Noe of BT, +1-703-622-3143, or diane.noe@bt.com

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

Stoneridge Reports Second-Quarter 2008 Results- Net Sales and Income Increase Year-over-Year- Second-Quarter 2008 Net Income per Diluted Share Increases to $0.20, up 82% from 2007- Company Reaffirms Full-Year 2008 Earnings Outlook of $0.75 to $0.85 Per Diluted Share

WARREN, Ohio, July 31 /PRNewswire-FirstCall/ -- Stoneridge, Inc. today announced net sales of $213.2 million and net income of $4.7 million, or $0.20 per diluted share, for the second quarter ended June 30, 2008.

Net sales increased $29.4 million, or 16.0 percent, to $213.2 million, compared with $183.8 million for the second quarter of 2007. The increase in net sales was primarily attributable to new electronics program sales in North America, improvement in the Company's European electronics business and the impact of foreign currency translation. The effect of foreign currency translation increased second-quarter net sales by approximately $4.4 million compared with the same period in 2007. The sales increase was partially offset by continuing weakness in the North American passenger car and light truck markets.

Net income for the second quarter was $4.7 million, or $0.20 per diluted share, compared with net income of $2.7 million, or $0.11 per diluted share, in the second quarter of 2007. The increase in net income was due primarily to strong electronics sales in North America and increased joint venture earnings. Partially offsetting these favorable impacts were $3.7 million in pre-tax expenses related to the Company's previously announced restructuring initiatives and $0.3 million of pre-tax expenses related to the repurchase and retirement of $6.0 million in par value of the Company's bonds.

"We continued our improved performance in the second quarter in the face of deteriorating conditions in our North American light vehicle markets," said John C. Corey, president and chief executive officer. "This improved performance includes benefits resulting from our end-market strategy and we will continue pursuing diversity in our customers, business segments and geographic regions."

For the six months ended June 30, 2008, net sales were $416.3 million, an increase of 12.9 percent compared with $368.8 million for the six months ended June 30, 2007. Net income for the 2008 six-month period was $11.2 million, or $0.47 per diluted share, compared with $7.6 million, or $0.32 per diluted share, in the comparable 2007 period.

Net cash provided by operating activities for the six months ended June 30, 2008 was $12.6 million, compared with net cash provided of $4.0 million for the six months ended June 30, 2007. The increase of $8.6 million in cash provided by operating activities was primarily due to favorable accounts payable variances relative to the previous year.

Outlook

"Based upon our first-half performance and the current industry forecasts, we are maintaining our previously issued guidance for full-year 2008 earnings of $0.75 to $0.85 per diluted share," Corey said. "While I am encouraged by the progress we have made, the significant changes in the North American light truck and SUV market will impact our performance going forward. These market changes will continue to challenge our team and we have already begun adjusting to the new market realities."

Conference Call on the Web

A live Internet broadcast of Stoneridge's conference call regarding 2008 second-quarter results can be accessed at 11 a.m. Eastern time on Thursday July 31, 2008, at http://www.stoneridge.com/, which will also offer a webcast replay.

About Stoneridge, Inc.

Stoneridge, Inc., headquartered in Warren, Ohio, is an independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the automotive, medium- and heavy-duty truck, agricultural and off-highway vehicle markets. Net sales in 2007 were approximately $727 million. Additional information about Stoneridge can be found at http://www.stoneridge.com/.

Forward-Looking Statements

Statements in this release that are not historical fact are forward- looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied in this release. Things that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the loss of a major customer; a significant change in automotive, medium- and heavy-duty truck or agricultural and off-highway vehicle production; a significant change in general economic conditions in any of the various countries in which the Company operates; labor disruptions at the Company's facilities or at any of the Company's significant customers or suppliers; the ability of the Company's suppliers to supply the Company with parts and components at competitive prices on a timely basis; customer acceptance of new products; and the failure to achieve successful integration of any acquired company or business. In addition, this release contains time-sensitive information that reflects management's best analysis only as of the date of this release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in the Company's periodic filings with the Securities and Exchange Commission.

STONERIDGE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Net Sales $213,229 $183,802 $416,299 $368,830 Costs and Expenses: Cost of goods sold 163,875 144,920 315,128 287,101 Selling, general and administrative 36,731 33,598 73,021 66,730 (Gain) loss on sale of property, plant and equipment, net 153 (1,653) 145 (1,688) Restructuring charges 1,713 31 3,135 72 Operating Income 10,757 6,906 24,870 16,615 Interest expense, net 4,880 5,619 10,252 11,103 Equity in earnings of investees (3,016) (2,298) (6,835) (4,418) Loss on early extinguishment of debt 271 - 770 - Other expense (income), net (124) 224 278 512 Income Before Income Taxes 8,746 3,361 20,405 9,418 Provision for income taxes 4,062 666 9,174 1,853 Net Income $4,684 $2,695 $11,231 $7,565 Basic net income per share $0.20 $0.12 $0.48 $0.33 Basic weighted average shares outstanding 23,286 23,114 23,327 23,052 Diluted net income per share $0.20 $0.11 $0.47 $0.32 Diluted weighted average shares outstanding 23,690 23,702 23,722 23,603 STONERIDGE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, December 31, 2008 2007 ASSETS (Unaudited) (Audited) Current Assets: Cash and cash equivalents $81,342 $95,924 Accounts receivable, less reserves of $5,587 and $4,736, respectively 142,472 122,288 Inventories, net 70,175 57,392 Prepaid expenses and other 17,365 15,926 Deferred income taxes 9,963 9,829 Total current assets 321,317 301,359 Long-Term Assets: Property, plant and equipment, net 90,611 92,752 Other Assets: Goodwill 65,730 65,176 Investments and other, net 47,962 39,454 Deferred income taxes 20,774 29,028 Total long-term assets 225,077 226,410 Total Assets $546,394 $527,769 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $76,809 $69,373 Accrued expenses and other 56,104 47,198 Total current liabilities 132,913 116,571 Long-Term Liabilities: Long-term debt 183,000 200,000 Deferred income taxes 2,909 2,665 Other liabilities 2,168 2,344 Total long-term liabilities 188,077 205,009 Shareholders' Equity: Preferred Shares, without par value, authorized 5,000 shares, none issued - - Common Shares, without par value, authorized 60,000 shares, issued 24,755 and 24,601 shares and outstanding 24,660 and 24,209 shares, respectively, with no stated value - - Additional paid-in capital 156,467 154,173 Common Shares held in treasury, 95 and 373 shares, respectively, at cost (129) (383) Retained earnings 49,603 38,372 Accumulated other comprehensive income 19,463 14,027 Total shareholders' equity 225,404 206,189 Total Liabilities and Shareholders' Equity $546,394 $527,769 STONERIDGE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended June 30, 2008 2007 OPERATING ACTIVITIES: Net cash provided by (used for) operating activities $12,574 $4,019 INVESTING ACTIVITIES: Capital expenditures (11,641) (10,814) Proceeds from sale of property, plant and equipment 307 4,951 Business acquisitions and other (980) - Net cash used for investing activities (12,314) (5,863) FINANCING ACTIVITIES: Repayments of long-term debt (17,000) - Share-based compensation activity, net 1,162 1,796 Premiums related to early extinguishment of debt (553) - Net cash (used for) provided by financing activities (16,391) 1,796 Effect of exchange rate changes on cash and cash equivalents 1,549 232 Net change in cash and cash equivalents (14,582) 184 Cash and cash equivalents at beginning of period 95,924 65,882 Cash and cash equivalents at end of period $81,342 $66,066

Stoneridge, Inc.

CONTACT: Kenneth A. Kure, Corporate Treasurer and Director of Finance of
Stoneridge, Inc., +1-330-856-2443

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

InfoLogix Launches Strategic Mobility Assessment Service for HospitalsProvides Healthcare Organizations with the Most Cost-Effective 2-3 Year Plan for Achieving and Supporting Mobility Throughout Their Entire Facility

HATBORO, Pa., July 31 /PRNewswire-FirstCall/ -- InfoLogix, Inc. , a leading technology provider of enterprise mobility and advanced wireless asset tracking solutions for the healthcare and commercial industries, announced today that it has launched a new Strategic Mobility Assessment Service for hospitals that enables them to plan, build and support a complete future-state mobility infrastructure.

(Logo: http://www.newscom.com/cgi-bin/prnh/20071101/NETH165LOGO )

One of the major challenges of healthcare organizations today is the proliferation of wireless device initiatives that are addressed on a project- by-project basis, including multiple handheld and mobile devices, pagers, VoIP location tracking, and wireless medical equipment. To solve this increasingly complex situation, InfoLogix's Strategic Mobility Assessment Service takes a holistic view of the people, processes and technology across the organization, resulting in a 2-3 year strategic plan for mobility that improves patient care, safety, and financial results.

"After performing thousands of site assessments for our clients, we have discovered that the demands of users and IT infrastructure are often not in alignment with the adoption of wireless technology at healthcare organizations," says David Gulian, president and CEO of InfoLogix. "The Strategic Mobility Assessment Service enables hospitals to leverage their investments in HIS systems to deliver better care through wireless technology, following a 2-3 year strategic plan that's fully scalable to meet future demands."

The Strategic Mobility Assessment Service is designed around providing healthcare organizations with an independent roadmap of their mobility infrastructure, and how to support both current and long-term needs. Key business questions that the assessment enables healthcare organizations to answer include:

-- What platform do I pick? -- Who can support our needs? -- What are the security issues? -- What is the most cost effective strategy? -- How do I improve patient safety and satisfaction, and -- Can I improve productivity?

With over 200 strategic mobility experts, InfoLogix's team includes certified wireless network engineers, healthcare practitioners and consultants who have deployed mobility solutions for over 1,500 healthcare and 800 commercial organizations, including more than 100,000 mobile devices in the field.

More information about the Strategic Mobility Assessment Service is available by visiting http://www.infologix.com/ or contacting InfoLogix at 215-604- 0691.

About InfoLogix, Inc.

InfoLogix is a leading provider of enterprise mobility and advanced wireless asset tracking solutions for the healthcare and commercial industries. InfoLogix uses the industry's most advanced technologies to increase the efficiency, accuracy, and transparency of complex business and clinical processes. With 19 issued patents, InfoLogix provides mobile managed solutions, on-demand software applications, mobile infrastructure products, and strategic consulting services to over 2,000 clients in North America including Kraft Foods, Merck and Company, General Electric, Kaiser Permanente, MultiCare Health System and Stanford School of Medicine. InfoLogix is a publicly-traded company . For more information, visit http://www.infologix.com/

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20071101/NETH165LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com InfoLogix, Inc.

CONTACT: Jason Fradin, Vice President of Marketing of InfoLogix, Inc.,
+1-215-604-0691 x1194

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

SBK08 Superbike World Championship Videogame Reaches USA

LOS ANGELES, July 31 /PRNewswire-FirstCall/ -- Conspiracy Entertainment Corporation (BULLETIN BOARD: CPYE) , a developer, publisher and marketer of interactive entertainment software in North America and Western Europe, announced today that it has entered into a publishing agreement with Black Bean, headquartered in Varese, Italy, to bring the videogame SBK(R)08 Superbike World Championship to North America. SBK(R)08 is scheduled for release this fall across several major gaming platforms. Additional versions of the game are planned to follow in the spring of 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20060905/LATU010LOG

The Hannspree FIM Superbike World Championship, organized and promoted by FGSport since the 1980s in all its technical, organizational and promotional aspects, today represents one of the three "global products" of world motor sport and a heritage of undisputed value for motorbike fans. The race season attracts over 1 million attendees and 2 billion TV contacts through coverage on 95 television stations in 173 countries.

As well as featuring the official teams, riders and tracks of the current WSBK Championship, SBK08 has multiple difficulty settings and tuning options that will appeal to superbike fans and gamers alike.

The fast-paced, action packed arcade mode allows casual gamers and racing fans to jump straight in and challenge the WSBK official teams and riders in a range of weather conditions and on some of the most famous tracks around the world including Phillip Island (Australia), Monza (Italy), Silverstone (UK) and for the first time in the series Miller Motorsports Park (Salt Lake City, USA).

For the bike enthusiast, SBK08 offers unparalleled realism in the modelling and the handling of the bikes including detailed tuning and set-up options for every aspect of the bike (including suspension, gears, tires and braking). These will need to be optimized as the player progresses through each race weekend and as the conditions change from race to race throughout the championship.

David Pain, General Manager of Black Bean commented, "We're really excited to be bringing SBK08 to the US market with Conspiracy Entertainment at a time when the race series is becoming more widely known in North America. It is a truly great game for bike fans and for racing gamers in general looking for a new challenge."

Marco Husges, Executive Vice President of Conspiracy Entertainment Corporation, added, "It is good to be working with Black Bean and we are confident that we can build this franchise successfully in North America to mirror what has already been achieved in Europe."

As World Superbike came to the US in 2008, some riders even used pre-release code to practice the Miller track. Regis Laconi of the Kawasaki PSG-1 team commented, "I don't know the circuit so I'm waiting to be there and get as much information as possible ... I played with the SBK Xbox 360 videogame from Black Bean and it helped. Now I can say I know where the bends are."

Keith Tanaka, CFO of Conspiracy Entertainment, said, "Conspiracy is very pleased to bring new business to the Company from overseas. Our partnership with Black Bean provides us the opportunity to take a wildly successful international release and establish a US market from the very beginning. As we roll-out multiple versions of the game on today's top-selling platforms, we anticipate SBK08 to be a strong revenue generator for us beginning in the third quarter of 2008 and well into 2009."

For more details, visit http://www.sbkthegame.com/. About Lago/Black Bean

Lago S.r.l. is a world class publisher of entertainment software. Under its Black Bean label, the company publishes a range of high quality videogames across all major formats. Lago is headquartered in Varese (Milan) and is part of the acclaimed Leader Group, which has over 20 years of experience in the entertainment software sector. For more information, go to http://www.blackbeangames.com/. Lago, Black Bean and their respective logos are property and trademarks of Lago S.r.l.

About FGSport

FG Sport organizes and runs the Superbike World Championship since 1987. SBK was watched by more than 2 billion contacts worldwide last year, with 95 televisions that gave live coverage in 173 different countries, 3,400 hours of live coverage with a media value of $770 million, more than 1,000,000 attendees during races, and over 5 million contacts on its official website http://www.worldsbk.com/.

About Conspiracy Entertainment Corporation

Conspiracy Entertainment Corporation is a developer, publisher and marketer of entertainment software in North America and Western Europe. The Company develops and licenses properties from several sources, including global entertainment and media companies, and publishes software for DVD media, wireless devices, personal computers and video game consoles, including those manufactured by Nintendo, Sony Computer Entertainment, Inc., and Microsoft Corporation. Conspiracy Entertainment was founded in 1997 and is based in Santa Monica, CA. For more information, visit http://conspiracygames.com/.

Press Contacts For Conspiracy Entertainment Media: Calico Media Ted Brockwood ted@calico-media.com 503-342-8067 Investor Relations: Rick McCaffrey 781-444-6100 x625 rick@otcfn.com http://www.otcfn.com/cpye Black Bean Alberto Belli International PR +39 335 7181610 a.belli@pulsarsrl.com

Conspiracy Entertainment Corporation

CONTACT: Press, Ted Brockwood of Calico Media, +1-503-342-8067,
ted@calico-media.com, Investor Relations, Rick McCaffrey, +1-781-444-6100,
Ext. 625, rick@otcfn.com; both for Conspiracy Entertainment Corporation;
Alberto Belli of International PR for Black Bean, +39 335 7181610,
a.belli@pulsarsrl.com

Web site: http://www.conspiracygames.com/
http://www.sbkthegame.com/
http://www.worldsbk.com/
http://conspiracygames.com/

Dawson Geophysical Reports Record Third Quarter and Nine Months Results

MIDLAND, Texas, July 31 /PRNewswire-FirstCall/ -- Dawson Geophysical Company today reported revenues of $84,568,000 for the quarter ending June 30, 2008, the Company's third fiscal quarter of 2008, compared to $68,637,000 for the same quarter in fiscal 2007, an increase of 23 percent. Revenue growth in the quarter was primarily the result of the addition of a new seismic data acquisition crew in September 2007, the replacement of an I/O MRX recording system with an ARAM ARIES recording system on an existing crew in April 2008, the redeployment of the I/O MRX recording system on a new crew in May 2008, increased channel count, and productivity on existing crews.

Net income for the third quarter of fiscal 2008 was $9,707,000, compared to $7,561,000 in the same quarter of fiscal 2007, an increase of 28 percent. Earnings per share for the third quarter of fiscal 2008 were $1.27 per share, compared to $0.99 per share in the same quarter of fiscal 2007. EBITDA for the third quarter of fiscal 2008 was $22,397,000 compared to $17,700,000 in the same quarter of fiscal 2007, an increase of 26.5 percent. Included in the third quarter results is a 35 percent increase in depreciation charges from the prior year period reflecting the Company's continued capital investment and growth.

The Company's third quarter results reflect continued brisk domestic exploration activities by the Company's clients, particularly those clients seeking natural gas reserves. Revenues in the third quarter of fiscal 2008 continued to include high third-party charges related to the use of helicopter support services, specialized survey technologies, and dynamite energy sources. The sustained level of these charges is driven by the Company's continued operations in areas with limited access in the Appalachian Basin, Arkansas, Val Verde Basin of Texas, and in Eastern Oklahoma. The Company is reimbursed for these expenses by its clients.

Stephen Jumper, President and CEO of Dawson Geophysical Company said, "Increased demand for higher subsurface resolution and lower finding and development costs by our clients fueled record third quarter and nine months results. This success further led to the fielding of an additional crew, our sixteenth, in May 2008 by redeploying an existing I/O MRX recording system. This crew has a smaller channel count and is initially committed to large scale 2D and smaller 3D seismic projects in the Appalachian Basin."

During the quarter, the Company took delivery of seven ION vibrator energy source units ordered in the second quarter. The Company now operates in excess of 115,000 channels and 143 vibrator energy source units.

Nine Months Results

For the nine months ended June 30, 2008, revenues were $240,530,000, compared to $182,226,000 for the same period in 2007, an increase of 32 percent. Net income for the first nine months of fiscal 2008 increased 40 percent to $25,703,000, compared to $18,364,000 for the first nine months of fiscal 2007. Earnings per share for the first nine months of fiscal 2008 were $3.35 as compared to $2.42 for the first nine months of fiscal 2007, an increase of 38 percent. EBITDA was $59,595,000 in the first nine months of fiscal 2008 versus $43,329,000 during the same period of fiscal 2007, an increase of 37.5 percent.

Demand for the Company's services continues at a high level. Although the Company's clients may cancel their service contracts on short notice, the Company's order book remains strong, reflecting commitments to operate at full capacity on all crews through the end of calendar 2008 and on a number of crews well into calendar 2009. Operations are currently active on projects in West Texas, South Texas, East Texas, the Barnett Shale of the Ft. Worth Basin, the Fayetteville Shale in Arkansas, the Rocky Mountains, New Mexico, Oklahoma, Louisiana, California, and the Appalachian Basin.

Mr. Jumper said, "Our strong performance and continued ability to deliver value for our clients is a reflection of the strength of our people, the depth of our geophysical resources, and our success in helping clients understand the geological complexities of their E&P assets. Our clients' desire for higher resolution subsurface images with improved efficiency and channel count growth will continue to drive our earnings and revenues as they did in the third fiscal quarter and nine month period."

About Dawson Geophysical Company

Dawson Geophysical Company is the leading provider of U.S. onshore seismic data acquisition services as measured by the number of active data acquisition crews. Founded in 1952, Dawson acquires and processes 2D, 3D, and multi-component seismic data solely for its clients, ranging from major oil and gas companies to independent oil and gas operators as well as providers of multi-client data libraries.

Forward Looking Statement

This press release contains information about the Company's EBITDA, a non-GAAP financial measure. The Company defines EBITDA as net income plus interest expense, income taxes, depreciation and amortization expense. The Company uses EBITDA as a supplemental financial measure to assess:

-- the financial performance of its assets without regard to financing methods, capital structures, taxes or historical cost basis;

-- its liquidity and operating performance over time in relation to other companies that own similar assets and that the Company believes calculate EBITDA in a similar manner; and

-- the ability of the Company's assets to generate cash sufficient for the Company to pay potential interest costs.

The Company also understands that such data are used by investors to assess the Company's performance. However, the term EBITDA is not defined under generally accepted accounting principles and EBITDA is not a measure of operating income, operating performance or liquidity presented in accordance with generally accepted accounting principles. When assessing the Company's operating performance or liquidity, investors and others should not consider this data in isolation or as a substitute for net income, cash flow from operating activities or other cash flow data calculated in accordance with generally accepted accounting principles. In addition, the Company's EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA in the same manner as the Company. Further, the results presented by EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, depreciation and amortization. A reconciliation of the Company's EBITDA to its net income is presented in the table following the text of this press release.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, Dawson Geophysical Company cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may materially affect the Company's actual results of operations. These risks include, but are not limited to, dependence upon energy industry spending, the volatility of oil and gas prices, high fixed cost of operations, weather interruptions, the ability to obtain land access rights of way, industry competition, the ability to manage growth, and the availability of capital resources. A discussion of these and other factors, including risks and uncertainties, is set forth in the Company's Form 10-K for the fiscal year ended September 30, 2007. Dawson Geophysical Company disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

DAWSON GEOPHYSICAL COMPANY STATEMENTS OF OPERATIONS Three Months Ended June 30, Nine Months Ended June 30, 2008 2007 2008 2007 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Operating revenues $84,568,000 $68,637,000 $240,530,000 $182,226,000 Operating costs: Operating expenses 60,457,000 49,825,000 176,111,000 135,157,000 General and administrative 1,649,000 1,532,000 5,192,000 4,585,000 Depreciation 6,317,000 4,685,000 17,722,000 12,853,000 68,423,000 56,042,000 199,025,000 152,595,000 Income from operations 16,145,000 12,595,000 41,505,000 29,631,000 Other income (expense): Interest income 76,000 190,000 410,000 616,000 Interest expense (116,000) - (316,000) - Other (141,000) 230,000 (42,000) 229,000 Income before income tax 15,964,000 13,015,000 41,557,000 30,476,000 Income tax expense: Current (4,981,000) (4,502,000) (13,631,000) (9,567,000) Deferred (1,276,000) (952,000) (2,223,000) (2,545,000) (6,257,000) (5,454,000) (15,854,000) (12,112,000) Net income $9,707,000 $7,561,000 $25,703,000 $18,364,000 Net income per common share $1.27 $0.99 $3.35 $2.42 Net income per common share- assuming dilution $1.26 $0.98 $3.33 $2.40 Weighted average equivalent common shares outstanding 7,668,651 7,622,755 7,665,253 7,589,022 Weighted average equivalent common shares outstanding- assuming dilution 7,733,076 7,695,371 7,727,205 7,660,053 DAWSON GEOPHYSICAL COMPANY BALANCE SHEETS June 30, September 30, 2008 2007 (Unaudited) ASSETS Current assets: Cash and cash equivalents $12,834,000 $14,875,000 Accounts receivable, net of allowance for doubtful accounts of $216,000 and $176,000 in 2008 and 2007 respectively 74,784,000 56,707,000 Prepaid expenses and other assets 1,103,000 815,000 Current deferred tax asset 697,000 693,000 Total current assets 89,418,000 73,090,000 Property, plant and equipment 245,597,000 207,427,000 Less accumulated depreciation (96,806,000) (84,655,000) Net property, plant and equipment 148,791,000 122,772,000 $238,209,000 $195,862,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $14,807,000 $12,816,000 Accrued liabilities: Payroll costs and other taxes 1,612,000 2,325,000 Other 13,804,000 14,263,000 Deferred revenue 645,000 2,922,000 Line of credit 20,000,000 5,000,000 Total current liabilities 50,868,000 37,326,000 Deferred tax liability 11,609,000 9,381,000 Stockholders' equity: Preferred stock-par value $1.00 per share; 5,000,000 shares authorized, none outstanding - - Common stock-par value $.33 1/3 per share; 50,000,000 shares authorized, 7,764,494 and 7,658,494 shares issued and outstanding in each period 2,588,000 2,553,000 Additional paid-in capital 86,137,000 85,090,000 Retained earnings 87,007,000 61,512,000 Total stockholders' equity 175,732,000 149,155,000 $238,209,000 $195,862,000 Reconciliation of EBITDA to Net Income Three Months Ended Nine Months Ended June 30, June 30, 2008 2007 2008 2007 Net Income $9,707,000 $7,561,000 $25,703,000 $18,364,000 Depreciation 6,317,000 4,685,000 17,722,000 12,853,000 Interest expense 116,000 - 316,000 - Income tax expense 6,257,000 5,454,000 15,854,000 12,112,000 EBITDA $22,397,000 $17,700,000 $59,595,000 $43,329,000 Reconciliation of EBITDA to Net Cash Provided by Operating Activities Nine Months Ended June 30, 2008 2007 Net cash provided by operating activities $30,605,000 $30,502,000 Changes in working capital items and other 29,818,000 12,718,000 Non-cash adjustments to income (828,000) 109,000 EBITDA $59,595,000 $43,329,000

Dawson Geophysical Company

CONTACT: L. Decker Dawson, Chairman, Stephen C. Jumper, CEO and
President, or Christina W. Hagan, Chief Financial Officer, all of Dawson
Geophysical Company, 1-800-332-9766

Web site: http://www.dawson3d.com/

Direct Technology Innovations Lauds MedeFile Solution as 'Breakthrough' in Personal Medical Records ManagementNational Transaction Technology Leader to Gift MedeFile-Light to National Customer Base

CEDAR KNOLLS, N.J., July 31 /PRNewswire-FirstCall/ -- MedeFile International, Inc. (BULLETIN BOARD: MDFI) , a company applying advanced technologies to deliver effective medical records management solutions to consumers and their families, today announced that it has teamed with Direct Technology Innovations (DTI), a leading transaction technology company serving the electronic payments industry, to introduce DTI's national customer base to MedeFile's solution for securely, conveniently and cost effectively collecting, archiving and managing a person's actual medical and dental records on an innovative web-enabled and portable platform.

According to Edward Slominski, President and CEO of DTI, "As a recognized national leader in transaction technology, it is our belief that there is no more important personal transaction than what takes place between a patient and his or her doctor. MedeFile's innovative approach to managing the health records of the typical American healthcare consumer is truly a breakthrough. The MedeFile solution has the power to save thousands of man hours and millions of dollars overnight. Moreover, it is cost effective and simple to use for both the user and the healthcare provider - not to mention that it is also a 'green' paper-free product."

Founded in 2001, DTI is a nationally accredited transaction technology company providing independent distributors with a variety of credit card processing platforms which save time, streamline accounting operations and help materially increase revenues. DTI is recognized for its high standards, quality solutions and innovative merchant services and products, including its Swipe N' Go(R) Program, Click to Go(R) Online Ordering Program and HWeb Mobile Ticketing Solutions(R). Its collaborative approach to enhancing the way business people view their business has led to DTI's dominance of the Quick Service Restaurant and the Tours and Transportation industries. Headquartered in Fort Lauderdale, Florida, DTI's client base ranges from Fortune 500 branded outlets to local neighborhood merchants.

"We are very proud to begin offering the MedeFile-Light subscription as a gift to each of the thousands of DTI customers who rely on our company for cutting edge transaction solutions," added Slominski. "Based on my personal and professional experience as the former owner of a high tech medical company and as founder of one of the first for profit Home Care agencies in the United States, I can not emphasize strongly enough that MedeFile is a product every American healthcare consumer needs."

About MedeFile International, Inc.

MedeFile has developed a patent-pending, proprietary system for gathering and digitizing actual medical and dental records so that individuals can benefit from on-demand access to their comprehensive health records and vital documents. MedeFile's primary product is the MedeFile system, a highly secure system for collecting and maintaining medical records. The MedeFile system is designed to gather all of its members' actual medical records and create an on-demand resource that is accessible 24 hours a day, seven days a week.

Representing an advanced, yet easy-to-use, approach to portable, electronic medical records management, MedeFile combines state-of-the-art technology and the Internet to make medical data instantly accessible to each MedeFile subscriber and his or her authorized healthcare providers from anywhere in the world. In addition to accessing one's medical records through MedeFile's secure Internet portal found at http://www.medefile.com/, members can carry their entire medical history and emergency information wherever they go on a unique device called a MedeDrive - a proprietary USB drive designed to be carried on a keychain. The MedeDrive plugs into any USB port of a Windows-based PC; and because MedeDrive automatically loads its own viewer, users do not require any special programs or software to view data. MedeMobile provides on-the-go subscribers with the ability to enjoy even greater flexibility and access to their personal health information wherever and whenever they need it. MedeMinder is an electronic "reminder service" that utilizes email (and concierge phone service if desired) to assist its subscribers in remembering scheduled doctor appointments, expiration dates on prescriptions and/or time-sensitive treatment protocols.

For more information about MedeFile and its annual subscription-based programs, please visit http://www.medefile.com/.

Safe Harbor Statement Under the Private Securities Litigation Act of 1995

With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of MedeFile could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to respond to the evolving technological landscape, inability to finance the Company's operations or expansion, inability to hire and retain qualified personnel, competitive pressure, changes in the general economic climate, including rising interest rates, and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, and such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors associated with our Company, review our SEC filings.

FOR MORE MEDEFILE INFORMATION, PLEASE CONTACT: Investors/Stockbrokers/Institutions/Media Elite Financial Communications Group, LLC/Elite Media Group Dodi Handy, President and CEO 407-585-1080 or via email at mdfi@efcg.net

MedeFile International, Inc.

CONTACT: Investors-Stockbrokers-Institutions-Media, Dodi Handy,
President and CEO, Elite Financial Communications Group, LLC-Elite Media
Group, +1-407-585-1080, mdfi@efcg.net, for MedeFile International, Inc.

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

PGP Corporation Joins RSA Secured(R) Partner Program

MENLO PARK, Calif., July 31 /PRNewswire/ -- PGP Corporation, a global leader in enterprise data protection, today announced that it has joined the RSA Secured(R) Partner Program to certify interoperability between PGP(R) Whole Disk Encryption and the RSA SecurID(R) SID800 hardware authenticator developed by RSA(R), The Security Division of EMC . To prevent data breaches and address regulatory compliance, organizations are deploying strong authentication to uniquely validate the identity of users. This certification enables organizations that have deployed both RSA SecurID technology and award-winning PGP Whole Disk Encryption to gain further leverage in their investment and enforce two-factor authentication policies alongside enhanced data protection for data on laptops, desktops, and removable media.

"Through the RSA Secured Partner program, joint customers will have confidence in knowing that they have the combined benefit and security of our market-leading encryption technology used in conjunction with RSA SecurID two- factor authentication technology," noted Steven Schoenfeld, vice president of products and strategy, PGP Corporation. "Together with RSA, we are helping enterprises across the globe secure their critical business data wherever it lives or goes."

PGP Whole Disk Encryption provides comprehensive, non-stop disk encryption, enabling quick, cost-effective protection for data on PCs, laptops, and removable media. The encrypted data is continuously safeguarded from unauthorized access, providing strong security for intellectual property, customer and partner data, and corporate brand equity. PGP Whole Disk Encryption is now technically interoperable with the RSA SecurID SID800 hardware authenticator to control access to systems at pre-boot authentication, preventing unauthorized use even before the operating system boots or resumes.

"It is more critical than ever for companies to increase the security and integrity of their valuable information. In order to help our joint customers better protect their information, we are pleased to be working with PGP Corporation to achieve interoperability between RSA SecurID technology and PGP Whole Disk Encryption," said D.J. Long, senior director, Corporate Development at RSA, The Security Division of EMC. "Our organizations are committed to help mitigate risk to sensitive information throughout its lifecycle to ensure that it is always an asset - and not a liability - in order to allow organizations to accelerate their business objectives."

About the RSA Secured Partner Program:

The RSA Secured Partner Program is one of the largest alliance programs of its type, bringing over a dozen years of experience and hundreds of complementary solutions together. RSA SecurID(R), RSA(R) Access Manager, RSA(R) Digital Certificate Manager, RSA(R) Federated Identity Manager and RSA(R) Key Manager certification programs bring added assurance to customers that the solutions they are deploying are certified as interoperable with industry leading products, helping them achieve faster time to deployment and lower overall cost of ownership. The RSA Secured Partner Program reflects RSA's commitment to providing standards-based interoperability and mutual vendor support to customers using its identity assurance and access management solutions. For more information, please visit http://www.rsa.com/.

About PGP Corporation

PGP Corporation is a global leader in email and data encryption software for enterprise data protection. Based on a unified key management and policy infrastructure, the PGP(R) Encryption Platform offers the broadest set of integrated applications for enterprise data security. PGP(R) platform-enabled applications allow organizations to meet current needs and expand as security requirements evolve for email, laptops, desktops, instant messaging, smartphones, network storage, file transfers, automated processes, and backups.

PGP(R) solutions are used by more than 80,000 enterprises, businesses, and governments worldwide, including 95 percent of the Fortune(R) 100, 75 percent of the Fortune(R) Global 100, 87 percent of the German DAX index, and 51 percent of the U.K. FTSE 100 Index. As a result, PGP Corporation has earned a global reputation for innovative, standards-based, and trusted solutions. PGP solutions help protect confidential information, secure customer data, achieve regulatory and audit compliance, and safeguard companies' brands and reputations. Contact PGP Corporation at http://www.pgp.com/ or +1 650 319 9000.

Media & analyst contact for PGP Corporation: North America: Tom Rice Merritt Group +1 703 856 2218 rice@merrittgrp.com U.K.: Jacqui Depares / Richard Scarlett Johnson King +44 (0) 20 7401 7968 pgpteam@johnsonking.co.uk Germany: Ingrid Daschner Johnson King +49 (0) 89 8940 8511 ingridd@johnsonking.de Japan: Koichi Nishida, Kyosuke Wakairo Powered Communications Inc. +81 3 5211 7940 pgp@powered-communications.com Legal Notice Regarding Forward-Looking Statements

Some of the statements in this press release are forward-looking, including statements regarding the availability, plans, delivery, goals, development, expected features, expected benefits and competitive position of PGP products implementing or leveraging the PGP technologies. All references made to product feature enhancements, improvements in Platform support or additional functionality are subject to change at PGP Corporation's sole discretion. All future descriptions of PGP technology and products are subject to availability only if PGP Corporation decides to build them and when PGP Corporation decides to make them commercially available. Actual results could differ materially from those expressed in any forward-looking statements. Risks and uncertainties that PGP Corporation faces that could cause results to differ materially include risks associated with any unforeseen technical difficulties or software errors related to the final development and launch of any of PGP Corporation's products; any technological, regulatory, or standards changes in the security, encryption and authentications market which could make PGP Corporation's products less competitive or require feature changes in these products; any slowdown in the adoption by businesses of encryption suites, secure email, Internet technologies or related standard. The forward- looking statements contained in this release are made as of the date hereof, and PGP Corporation does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements.

PGP and the PGP logo are registered trademarks of PGP Corporation. Product and brand names used in the document may be trademarks or registered trademarks of their respective owners. RSA, Secured and SecurID are registered trademarks or trademarks of RSA Security Inc. in the U.S. and/or other countries. EMC is a registered trademark of EMC Corporation. Any such trademarks or registered trademarks are the sole property of their respective owners.

PGP Corporation

CONTACT: North America, Tom Rice of Merritt Group, +1-703-856-2218,
rice@merrittgrp.com; U.K., Jacqui Depares or Richard Scarlett, both of Johnson
King, +44 (0) 20 7401 7968, pgpteam@johnsonking.co.uk; Germany, Ingrid
Daschner of Johnson King, +49 (0) 89 8940 8511, ingridd@johnsonking.de; Japan,
Koichi Nishida, or Kyosuke Wakairo, both of Powered Communications Inc., +81 3
5211 7940, pgp@powered-communications.com

Web site: http://www.pgp.com/
http://www.rsa.com/

Brocade Showcases Storage Networking Solutions at the Next Generation Data Center Conference

SAN JOSE, Calif., July 31 /PRNewswire-FirstCall/ -- Brocade(R) , will offer several informative demonstrations and presentations highlighting its storage networking solutions at the Next Generation Data Center Conference (NGDC) during LinuxWorld 2008. The conference runs from Aug. 4 to 7, 2008 at the Moscone Center in San Francisco, California.

Brocade will host a booth (#526) in the Moscone Center - North Hall for the duration of the conference. Participate in two or more demonstrations at the Brocade booth for the chance to enter into a daily drawing for a Nintendo Wii with Wii Fit. Demonstrations taking place in the booth during NGDC include:

-- Virtualization: Brocade will demonstrate its latest 8 Gbit/sec Host Bus Adapter (HBA) technology which delivers end-to-end server-to-storage solutions driving storage connectivity efficiency.

-- DCX Power Consumption: Learn how Brocade is greening the data center with the Brocade DCX backbone that requires 1/3 of the power and cooling compared to the competition. The adapters offer new Quality of Service (QoS), data mobility and data encryption features that help ensure faster and more secure communications between virtual servers and storage.

-- Data Center Fabric: See how the Brocade Data Center Fabric (DCF) delivers the end-to-end infrastructure that enables the promise of virtualization. Brocade DCF enables infrastructure consolidation, protection, virtualization and unified management.

Brocade representatives will also participate in the following speaking sessions during the conference:

-- Tuesday, Aug. 5 at 11:30 a.m. PDT -- Jose Carreon, Director of Brocade Security Technologies, will host a one-hour session at LinuxWorld in the security track titled "What IT Auditors Should Know about Storage Area Network (SAN) Security".

-- Tuesday, Aug. 5 at 10:40 a.m. PDT -- John Oram, Brocade Global Architect, will give a 15 minute snapshot on the show floor in the NGDC theater discussing "The Next Generation Data Center -- Driving Storage Connectivity Efficiency".

-- Wednesday, Aug. 6 at 10:20 a.m. PDT -- John Oram, Brocade Global Architect, will give a 15 minute overview on the show floor in the NGDC theater discussing "The Next Generation Data Center -- Data Center Fabric".

For more information on the conference, please visit http://www.ngdcexpo.com/.

About Brocade

Brocade is a leading provider of data center networking solutions that help organizations connect, share, and manage their information in the most efficient manner. Organizations that use Brocade products and services are better able to optimize their IT infrastructures and ensure compliant data management. For more information, visit the Brocade Web site at http://www.brocade.com/ or contact the company at info@brocade.com.

Brocade, Fabric OS, File Lifecycle Manager, MyView, and StorageX are registered trademarks and the Brocade B-wing symbol, DCX, and SAN Health are trademarks of Brocade Communications Systems, Inc., in the United States and/or in other countries. All other brands, products, or service names are or may be trademarks or service marks of, and are used to identify, products or services of their respective owners.

Brocade

CONTACT: Media, Elizabeth Walther, +1-408-333-6293, walther@brocade.com,
or Investors, Alex Lenke, +1-408-333-6758, alenke@brocade.com, both of
Brocade; or Ian Yellin of Ogilvy PR, +1-415-677-2714, ian.yellin@ogilvypr.com,
for Brocade

Web site: http://www.brocade.com/
http://www.ngdcexpo.com/

SI International Wins $19 Million U.S. Army Defense Ammunition Center Contract

RESTON, Va., July 31 /PRNewswire-FirstCall/ -- SI International, Inc. , an information technology and network solutions (IT) company, announced today that it has been awarded a contract to support the U.S. Army Defense Ammunition Center (DAC) located in McAlester, Oklahoma. SI International will provide knowledge management, training development, and electronic performance system integration and support. The contract was awarded under the Millennia Lite Functional Area 2 GSA contract vehicle, and has a one-year base period with four one-year option periods. The contract value is approximately $19 million if all option years are exercised.

The DAC provides ammunition training, explosives safety instruction and logistics support to Department of Defense military and civilian organizations and personnel. SI International, in support of DAC, has designed a Knowledge Management Strategic Plan, created Web-Based training development processes and courses, established Professional Development Institutes for DAC instructors, created a DAC Community of Excellence, developed a long term Training Plan, implemented a Learning Management System/Learning Content Management System (LMS/LCMS), and delivered Help Desk support services.

"This win demonstrates our continued commitment to provide a wide range of knowledge management and blended learning solutions to the Federal Government," said Cathie McMahon, SI International's Senior Vice President of Learning. "We are excited to have this opportunity to continue our partnership with DAC to support the Ammunition Community."

The SI International team includes SumTotal Systems, Inc., Oklahoma State University, Training & Consulting, Inc., LMI Government Consulting, and Executive Development Associates, Inc.

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 44th 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, earnings guidance, estimated future stock option expenses and exercises, future share repurchases 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 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: differences between authorized amounts and amounts received by the Company under government contracts; government customers' failure to exercise options under contracts; changes in federal government (or other applicable) procurement laws, regulations, policies and budgets; the Company's ability to attract and retain qualified personnel; 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.

Contact: Alan Hill VP, Corp. Communications 703-234-6854 alan.hill@si-intl.com

SI International, Inc.

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

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

CenturyTel Reports Second Quarter 2008 Earnings

MONROE, La., July 31 /PRNewswire-FirstCall/ -- CenturyTel, Inc. announces operating results for second quarter 2008.

* Operating revenues, excluding nonrecurring items, increased 2.8% to $657.1 million compared to $639.1 million in second quarter 2007. Reported under GAAP, operating revenues decreased 4.6% to $658.1 million, primarily due to a nonrecurring $49 million favorable access dispute settlement in second quarter 2007. * Operating cash flow (as defined in the attached financial schedules), excluding nonrecurring items, rose 2.3% to $318.3 million from $311.2 million in second quarter 2007. * Net income, excluding nonrecurring items, increased 16.2% to $91.2 million from $78.4 million in second quarter 2007. Net income, reported under GAAP, was $92.2 million compared to $112.3 million in second quarter 2007. * Diluted earnings per share, excluding nonrecurring items, rose 24.3% to $.87 in second quarter 2008 compared to $.70 in second quarter 2007, while GAAP diluted earnings per share was $.88 in second quarter 2008 compared to $1.00 in second quarter 2007. * Free cash flow (as defined in the attached financial schedules), excluding nonrecurring items, rose to $162.5 million in second quarter 2008 compared to $154.8 million in second quarter 2007. Second Quarter Highlights (Excluding nonrecurring items reflected in the attached financial schedules) (In thousands, except per Quarter Quarter share amounts and subscriber Ended Ended data) 6/30/08 6/30/07 % Change Operating Revenues $657,073 $639,122 2.8% Operating Cash Flow (1) $318,266 $311,226 2.3% Net Income $91,162 $78,434 16.2% Diluted Earnings Per Share .87 .70 24.3% Average Diluted Shares Outstanding $104,273 $113,721 (8.3)% Capital Expenditures $59,659 $57,976 2.9% Access Lines 2,077,000 2,205,000 (5.8)% High-Speed Internet Customers 607,000 500,000 21.4% (1) Operating Cash Flow is a non-GAAP financial measure. A reconciliation of this item to comparable GAAP measures is included in the attached financial schedules. "CenturyTel achieved solid second quarter results as operating revenues and diluted earnings per share exceeded our expectations for the quarter," Glen F. Post, III, chairman and chief executive officer, said. "We generated free cash flow of more than $162 million for the quarter, a nearly 5% increase over second quarter 2007. Our strong cash flows enable us to return significant cash to shareholders through our recently announced dividend increase and the acceleration of our current share repurchase program."

Operating revenues, excluding nonrecurring items, increased 2.8% to $657.1 million in second quarter 2008 compared to $639.1 million in second quarter 2007. Revenue increases of approximately $41 million were driven primarily by revenues contributed by the Madison River properties acquired April 30, 2007 and growth in high-speed Internet customers, along with selected price increases and favorable network access dispute settlements. These increases more than offset revenue declines of approximately $23 million primarily attributable to lower access revenues, lower universal service fund receipts and access line losses.

Operating expenses, excluding nonrecurring items, increased 1.6% to $469.8 million from $462.2 million in second quarter 2007, primarily due to operating costs associated with the Madison River properties, growth in high- speed Internet customers and increased marketing expenses. These increases were partially offset by reduced personnel related costs and lower depreciation expense.

"We completed the integration of the Madison River properties in late June and expect to reach our $17 million annual synergy run rate target by the end of the third quarter," Post said. "We expect these synergies, along with continued broadband growth and cost containment efforts, to enable CenturyTel to continue to generate solid cash flows in the months ahead."

Operating cash flow, excluding nonrecurring items, for second quarter 2008 increased 2.3% to $318.3 million from $311.2 million in second quarter 2007. CenturyTel achieved an operating cash flow margin of 48.4% during the quarter versus 48.7% in second quarter 2007.

Net income, excluding nonrecurring items, was $91.2 million, a 16.2% increase over the $78.4 million in second quarter 2007. Diluted earnings per share, excluding nonrecurring items, increased 24.3% to $.87 in second quarter 2008 compared to $.70 in second quarter 2007, primarily due to increased operating income, lower interest expense, a lower effective tax rate for 2008 and the reduction in diluted shares outstanding as a result of share repurchases.

For the first six months of 2008, operating revenues, excluding nonrecurring items, were $1.31 billion compared to $1.24 billion in 2007, a 5.3% increase. Operating cash flow, excluding nonrecurring items, was $637.4 million for 2008, a 5.0% increase over the $607.1 million a year ago. Net income, excluding nonrecurring items, increased 13.5% to $177.3 million from $156.3 million in 2007, while diluted earnings per share, excluding nonrecurring items, increased 21.7% to $1.68 from $1.38 in 2007.

Under generally accepted accounting principles (GAAP), net income for second quarter 2008 was $92.2 million compared to $112.3 million for second quarter 2007. Diluted earnings per share was $.88 in second quarter 2008 compared to $1.00 in second quarter 2007. Second quarter 2008 results include a net $1.3 million after-tax charge related to the freeze of our supplemental executive pension plan and a net $2.3 million benefit related to the resolution of certain income tax audit issues. Second quarter 2007 results include a $30.2 million after-tax positive revenue settlement related to the resolution of network access disputes and a $3.6 million after-tax benefit related to the amended satellite television agreement with EchoStar.

For the first six months of 2008, under GAAP, the Company reported net income of $180.9 million, or $1.71 per diluted share, compared to net income of $190.1 million, or $1.67 per diluted share, for the six months ended June 30, 2007. See the accompanying financial schedules for detail of the Company's nonrecurring items for the years 2008 and 2007.

For third quarter 2008, CenturyTel expects total revenues of $640 to $650 million and diluted earnings per share of $.79 to $.83. This decrease in revenues and diluted earnings per share compared to second quarter 2008 is primarily due to approximately $6 million in favorable revenue adjustments recognized in the second quarter, including the network access dispute settlements management discussed during the Company's first quarter earnings call, that are not expected to reoccur in the third quarter.

For the full year 2008, diluted earnings per share is expected to be in the range of $3.20 to $3.30, an increase over the $3.05 to $3.20 range previously provided. This increase in 2008 diluted earnings per share guidance is primarily due to the better than anticipated results during second quarter 2008 and share repurchases since April 30.

These outlook figures for second quarter and full year 2008 exclude nonrecurring items, any share repurchases settled after July 31, 2008, and any future mergers, acquisitions, divestitures, or other similar business transactions.

"We are pleased with the operational performance and continued share buybacks that are driving an increase in our full year 2008 outlook," said Post. "We continue to evaluate deployment and technology alternatives for our 700 MHz spectrum and are currently leaning toward the same type of LTE-based deployment that has been discussed by the larger carriers. We do not foresee material 700 MHz related effects on our capital or operating budgets in either 2008 or 2009 since LTE-based network elements and end-user devices are not expected to be commercially available until early 2010 or later."

Reconciliation to GAAP. This release includes certain non-GAAP financial measures, including but not limited to operating cash flow, free cash flow and adjustments to GAAP measures to exclude the effect of nonrecurring items. In addition to providing key metrics for management to evaluate the Company's performance, we believe these measurements assist investors in their understanding of period-to-period operating performance and in identifying historical and prospective trends. Reconciliations of non-GAAP financial measures to the most comparable GAAP measures are included in the attached financial schedules. Reconciliation of additional non-GAAP financial measures that may be discussed during the earnings call described below will be available in the Investor Relations portion of the Company's Web site at http://www.centurytel.com/. Investors are urged to consider these non-GAAP measures in addition to, and not in substitution for, measures prepared in accordance with GAAP.

Investor Call. As previously announced, CenturyTel's management will host a conference call at 10:30 a.m. Central Time today. Interested parties can access the call by dialing 866.206.5917. The call will be accessible for replay through August 6, 2008, by calling 888.258.7854 and entering the conference ID number 1253493. Investors can also listen to CenturyTel's earnings conference call and replay by accessing the Investor Relations portion of the Company's Web site at http://www.centurytel.com/ through August 20, 2008.

In addition to historical information, this release includes certain forward-looking statements, estimates and projections that are based on current expectations only, and are subject to a number of risks, uncertainties and assumptions, many of which are beyond the control of the Company. Actual events and results may differ materially from those anticipated, estimated or projected if one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect. Factors that could affect actual results include but are not limited to: the timing, success and overall effects of competition from a wide variety of competitive providers; the risks inherent in rapid technological change; the effects of ongoing changes in the regulation of the communications industry; the Company's ability to effectively adjust to changes in the communications industry; the Company's ability to effectively manage its expansion opportunities, including successfully integrating newly-acquired properties into the Company's operations and retaining and hiring key personnel; possible changes in the demand for, or pricing of, the Company's products and services; the Company's continued access to credit markets on favorable terms; the Company's ability to successfully introduce new product or service offerings on a timely and cost-effective basis; the Company's ability to collect its receivables from financially troubled communications companies; the Company's ability to pay a $2.80 per share common dividend annually, which may be affected by changes in its cash requirements, capital spending plans, cash flow or financial position; the Company's ability to successfully negotiate collective bargaining agreements on reasonable terms without work stoppages; the effect of adverse weather; other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission (the "SEC"); and the effects of more general factors such as changes in interest rates, in tax rates, in accounting policies or practices, in operating, medical or administrative costs, in general market, labor or economic conditions, or in legislation, regulation or public policy. These and other uncertainties related to the Company's business and plans are described in greater detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2007, as updated and supplemented by the Company's subsequent SEC reports. You should be aware that new factors may emerge from time to time and it is not possible for management to identify all such factors, nor can it predict the impact of each such factor on the business or the extent to which any one or more factors may cause actual results to differ from those reflected in any forward-looking statements. You are further cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The information contained in this release is as of July 31, 2008. The Company undertakes no obligation to update any of its forward- looking statements for any reason.

CenturyTel is a leading provider of communications, high-speed Internet and entertainment services in small-to-mid-size cities through our broadband and fiber transport networks. Included in the S&P 500 Index, CenturyTel delivers advanced communications with a personal touch to customers in 25 states. Visit us at http://www.centurytel.com/.

CenturyTel, Inc. CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED JUNE 30, 2008 AND 2007 (UNAUDITED) Three months ended June 30, 2008 As adjusted Less excluding non- non- In thousands, except per share As recurring recurring amounts reported items items OPERATING REVENUES Voice $219,901 219,901 Network access 207,904 1,012 (1) 206,892 Data 131,060 21 (1) 131,039 Fiber transport and CLEC 43,166 43,166 Other 56,075 56,075 658,106 1,033 657,073 OPERATING EXPENSES Cost of services and products 239,626 239,626 Selling, general and administrative 106,836 7,655 (1) 99,181 Depreciation and amortization 130,954 130,954 477,416 7,655 469,761 OPERATING INCOME 180,690 (6,622) 187,312 OTHER INCOME (EXPENSE) Interest expense (49,166) (49,166) Other income (expense) 12,907 5,425 (2) 7,482 Income tax expense (52,264) 2,202 (3) (54,466) NET INCOME $92,167 1,005 91,162 BASIC EARNINGS PER SHARE $0.89 0.01 0.88 DILUTED EARNINGS PER SHARE $0.88 0.01 0.87 AVERAGE SHARES OUTSTANDING Basic 103,644 103,644 Diluted 104,273 104,273 DIVIDENDS PER COMMON SHARE $0.0675 0.0675 Three months ended June 30, 2007 As Increase adjusted (decrease) Less excluding Increase excluding non- non- (decrease) non- In thousands, except per As recurring recurring as recurring share amounts reported items items reported items OPERATING REVENUES Voice 222,677 222,677 (1.2%) (1.2%) Network access 266,202 48,987 (4) 217,215 (21.9%) (4.8%) Data 108,206 108,206 21.1% 21.1% Fiber transport and CLEC 40,714 13 (4) 40,701 6.0% 6.1% Other 52,192 1,869 (5) 50,323 7.4% 11.4% 689,991 50,869 639,122 (4.6%) 2.8% OPERATING EXPENSES Cost of services and products 226,388 (4,052)(5) 230,440 5.8% 4.0% Selling, general and administrative 97,456 97,456 9.6% 1.8% Depreciation and amortization 134,311 134,311 (2.5%) (2.5%) 458,155 (4,052) 462,207 4.2% 1.6% OPERATING INCOME 231,836 54,921 176,915 (22.1%) 5.9% OTHER INCOME (EXPENSE) Interest expense (57,667) (57,667) (14.7%) (14.7%) Other income (expense) 8,080 8,080 59.7% (7.4%) Income tax expense (69,984) (21,090)(6) (48,894) (25.3%) 11.4% NET INCOME 112,265 33,831 78,434 (17.9%) 16.2% BASIC EARNINGS PER SHARE 1.03 0.31 0.72 (13.6%) 22.2% DILUTED EARNINGS PER SHARE 1.00 0.30 0.70 (12.0%) 24.3% AVERAGE SHARES OUTSTANDING Basic 108,405 108,405 (4.4%) (4.4%) Diluted 113,721 113,721 (8.3%) (8.3%) DIVIDENDS PER COMMON SHARE 0.0650 0.0650 3.8% 3.8% NONRECURRING ITEMS (1) - Curtailment loss related to freezing Supplemental Executive Retirement Plan, including revenue impact. (2) - Gain upon liquidation of Supplemental Executive Retirement Plan trust assets ($4.5 million) and interest income recorded upon the resolution of certain income tax audit issues ($919,000). (3) - Includes $448,000 net income tax benefit related to items (1) and (2) and $1.8 million income tax benefit recorded upon resolution of certain income tax audit issues. (4) - Revenue recorded upon settlement of a dispute with a carrier. (5) - Reimbursement of amounts upon a change in our satellite television arrangement. (6) - Tax effects of items (4) and (5). CenturyTel, Inc. CONSOLIDATED STATEMENTS OF INCOME SIX MONTHS ENDED JUNE 30, 2008 AND 2007 (UNAUDITED) Six months ended June 30, 2008 As adjusted Less excluding non- non- In thousands, except per share As recurring recurring amounts reported items items OPERATING REVENUES Voice $440,381 440,381 Network access 416,602 1,012 (1) 415,590 Data 257,832 21 (1) 257,811 Fiber transport and CLEC 82,799 82,799 Other 109,106 109,106 1,306,720 1,033 1,305,687 OPERATING EXPENSES Cost of services and products 477,438 477,438 Selling, general and administrative 198,461 7,655 (1) 190,806 Depreciation and amortization 266,638 266,638 942,537 7,655 934,882 OPERATING INCOME 364,183 (6,622) 370,805 OTHER INCOME (EXPENSE) Interest expense (99,288) (99,288) Other income (expense) 21,324 9,561 (2) 11,763 Income tax expense (105,292) 655 (3) (105,947) NET INCOME $180,927 3,594 177,333 BASIC EARNINGS PER SHARE $1.72 0.03 1.69 DILUTED EARNINGS PER SHARE $1.71 0.03 1.68 AVERAGE SHARES OUTSTANDING Basic 104,893 104,893 Diluted 105,635 105,635 DIVIDENDS PER COMMON SHARE $0.1350 0.1350 Six months ended June 30, 2007 As Increase adjusted (decrease) Less excluding Increase excluding non- non- (decrease) non- In thousands, except per As recurring recurring as recurring share amounts reported items items reported items OPERATING REVENUES Voice 434,573 434,573 1.3% 1.3% Network access 477,601 48,987 (4) 428,614 (12.8%) (3.0%) Data 204,070 204,070 26.3% 26.3% Fiber transport and CLEC 79,040 13 (4) 79,027 4.8% 4.8% Other 95,562 1,869 (5) 93,693 14.2% 16.5% 1,290,846 50,869 1,239,977 1.2% 5.3% OPERATING EXPENSES Cost of services and products 439,919 (4,052)(5) 443,971 8.5% 7.5% Selling, general and administrative 188,913 188,913 5.1% 1.0% Depreciation and amortization 262,095 262,095 1.7% 1.7% 890,927 (4,052) 894,979 5.8% 4.5% OPERATING INCOME 399,919 54,921 344,998 (8.9%) 7.5% OTHER INCOME (EXPENSE) Interest expense (104,628) (104,628) (5.1%) (5.1%) Other income (expense) 13,370 13,370 59.5% (12.0%) Income tax expense (118,526) (21,090)(6) (97,436) (11.2%) 8.7% NET INCOME 190,135 33,831 156,304 (4.8%) 13.5% BASIC EARNINGS PER SHARE 1.73 0.31 1.42 (0.6%) 19.0% DILUTED EARNINGS PER SHARE 1.67 0.29 1.38 2.4% 21.7% AVERAGE SHARES OUTSTANDING Basic 109,718 109,718 (4.4%) (4.4%) Diluted 115,015 115,015 (8.2%) (8.2%) DIVIDENDS PER COMMON SHARE 0.130 0.130 3.8% 3.8% NONRECURRING ITEMS (1) - Curtailment loss related to freezing Supplemental Executive Retirement Plan, including revenue impact. (2) - Gain on the sale of a nonoperating investment ($4.1 million), gain upon liquidation of Supplemental Executive Retirement Plan trust assets ($4.5 million), and interest income recorded upon the resolution of certain income tax audit issues ($919,000). (3) - Includes $1.1 million net income tax expense related to items (1) and (2) and $1.8 million income tax benefit recorded upon resolution of certain income tax audit issues. (4) - Revenue recorded upon settlement of a dispute with a carrier. (5) - Reimbursement of amounts upon a change in our satellite television arrangement. (6) - Tax effects of items (4) and (5). CenturyTel, Inc. CONSOLIDATED BALANCE SHEETS JUNE 30, 2008 AND DECEMBER 31, 2007 (UNAUDITED) June 30, Dec. 31, 2008 2007 (in thousands) ASSETS CURRENT ASSETS Cash and cash equivalents $63,900 34,402 Other current assets 267,416 257,997 Total current assets 331,316 292,399 NET PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment 8,751,414 8,666,106 Accumulated depreciation (5,783,574) (5,557,730) Net property, plant and equipment 2,967,840 3,108,376 GOODWILL AND OTHER ASSETS Goodwill 4,010,027 4,010,916 Other 858,881 772,862 Total goodwill and other assets 4,868,908 4,783,778 TOTAL ASSETS $8,168,064 8,184,553 LIABILITIES AND EQUITY CURRENT LIABILITIES Current maturities of long-term debt $45,344 279,898 Other current liabilities 444,774 456,637 Total current liabilities 490,118 736,535 LONG-TERM DEBT 3,016,243 2,734,357 DEFERRED CREDITS AND OTHER LIABILITIES 1,286,666 1,304,456 STOCKHOLDERS' EQUITY 3,375,037 3,409,205 TOTAL LIABILITIES AND EQUITY $8,168,064 8,184,553 CenturyTel, Inc. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) Three months ended Three months ended June 30, 2008 June 30, 2007 As As adjusted adjusted Less excluding Less excluding non- non- non- non- In thousands As recurring recurring As recurring recurring reported items items reported items items Operating cash flow and cash flow margin Operating income $180,690 (6,622)(1) 187,312 231,836 54,921 (3) 176,915 Add: Depreciation and amortization 130,954 130,954 134,311 134,311 Operating cash flow $311,644 (6,622) 318,266 366,147 54,921 311,226 Revenues $658,106 1,033 (1) 657,073 689,991 50,869 (3) 639,122 Operating income margin (operating income divided by revenues) 27.5% 28.5% 33.6% 27.7% Operating cash flow margin (operating cash flow divided by revenues) 47.4% 48.4% 53.1% 48.7% Free cash flow (prior to debt service requirements and dividends) Net income $92,167 1,005 (2) 91,162 112,265 33,831 (3) 78,434 Add: Depreciation and amortization 130,954 130,954 134,311 134,311 Less: Capital expenditures (59,659) (59,659) (57,976) (57,976) Free cash flow $163,462 1,005 162,457 188,600 33,831 154,769 Free cash flow $163,462 188,600 Gain on liquidation of marketable securities (4,506) - Deferred income taxes 5,068 16,634 Changes in current assets and current liabilities (44,749) 36,943 Decrease in other noncurrent assets 3,043 2,621 Decrease in other noncurrent liabilities (2,689) (11,266) Retirement benefits 12,728 9,011 Excess tax benefits from share-based compensation (55) (3,280) Other, net 4,816 2,076 Add: Capital expenditures 59,659 57,976 Net cash provided by operating activities $196,777 299,315 NONRECURRING ITEMS (1) - Curtailment loss related to freezing Supplemental Executive Retirement Plan, including revenue impact. (2) - Includes after-tax impact of gain upon liquidation of Supplemental Executive Retirement Plan trust assets ($2.8 million) and net benefit due to the resolution of certain income tax audit issues ($2.3 million), net of the after-tax impact of Item (1) ($4.1 million). (3) - Includes $49.0 million revenue recorded upon settlement of a dispute with a carrier and $5.9 million reimbursement of amounts (of which $1.9 million increased revenues) upon a change in our satellite television arrangement (presented on both a pre-tax and after-tax basis). CenturyTel, Inc. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) Six months ended June 30, 2008 As adjusted Less excluding non- non- In thousands As recurring recurring reported items items Operating cash flow and cash flow margin Operating income $364,183 (6,622)(1) 370,805 Add: Depreciation and amortization 266,638 266,638 Operating cash flow $630,821 (6,622) 637,443 Revenues $1,306,720 1,033 (1) 1,305,687 Operating income margin (operating income divided by revenues) 27.9% 28.4% Operating cash flow margin (operating cash flow divided by revenues) 48.3% 48.8% Free cash flow (prior to debt service requirements and dividends) Net income $180,927 3,594 (2) 177,333 Add: Depreciation and amortization 266,638 266,638 Less: Capital expenditures (114,398) (114,398) Free cash flow $333,167 3,594 329,573 Free cash flow $333,167 Gain on asset dispositions and liquidation of marketable securities (8,641) Deferred income taxes 13,425 Changes in current assets and current liabilities (57,026) Decrease in other noncurrent assets 2,254 Decrease in other noncurrent liabilities (5,479) Retirement benefits 18,202 Excess tax benefits from share- based compensation (74) Other, net 16,761 Add: Capital expenditures 114,398 Net cash provided by operating activities $426,987 Six months ended June 30, 2007 As adjusted Less excluding non- non- In thousands As recurring recurring reported items items Operating cash flow and cash flow margin Operating income 399,919 54,921 (3) 344,998 Add: Depreciation and amortization 262,095 262,095 Operating cash flow 662,014 54,921 607,093 Revenues 1,290,846 50,869 (3) 1,239,977 Operating income margin (operating income divided by revenues) 31.0% 27.8% Operating cash flow margin (operating cash flow divided by revenues) 51.3% 49.0% Free cash flow (prior to debt service requirements and dividends) Net income 190,135 33,831 (3) 156,304 Add: Depreciation and amortization 262,095 262,095 Less: Capital expenditures (106,856) (106,856) Free cash flow 345,374 33,831 311,543 Free cash flow 345,374 Gain on asset dispositions and liquidation of marketable securities - Deferred income taxes 30,005 Changes in current assets and current liabilities 70,835 Decrease in other noncurrent assets 3,653 Decrease in other noncurrent liabilities (11,667) Retirement benefits 14,647 Excess tax benefits from share- based compensation (6,312) Other, net 4,634 Add: Capital expenditures 106,856 Net cash provided by operating activities 558,025 NONRECURRING ITEMS (1) - Curtailment loss related to freezing Supplemental Executive Retirement Plan, including revenue impact. (2) - Includes (i) after-tax impact of gain upon liquidation of Supplemental Executive Retirement Plan trust assets ($2.8 million), (ii) after-tax impact of gain on sale of nonoperating investment ($2.6 million), and (iii) net benefit due to the resolution of certain income tax audit issues ($2.3 million), all partially offset by the after-tax impact of Item (1) ($4.1 million). (3) - Includes $49.0 million revenue recorded upon settlement of a dispute with a carrier and $5.9 million reimbursement of amounts (of which $1.9 million increased revenues) upon a change in our satellite television arrangement (presented on both a pre-tax and after-tax basis).

CenturyTel, Inc.

CONTACT: Tony Davis of CenturyTel, Inc., +1-318-388-9525,
tony.davis@centurytel.com

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

ACS Signs Five-Year, $100 Million Deal to Provide Technology Services to UMass Memorial Health Care, Inc.

DALLAS, July 31 /PRNewswire-FirstCall/ -- Affiliated Computer Services, Inc. today announced a five year contract, totaling $100 million, with UMass Memorial Health Care, Inc., a Worcester, Massachusetts-based hospital system, to provide extensive information systems services. The contract will extend an existing six-year business relationship.

Under the terms of the agreement, ACS will provide a cost-effective method of expanding UMass Memorial's IT systems through planned deployment of servers and data storage based on the hospital system's specific IT infrastructure needs. ACS will provide networking, data systems, data center hosting, desktop, help desk, telecommunications, disaster recovery, and resource planning services.

"This new agreement will enable UMass Memorial to continue our successful relationship with ACS to tackle upcoming challenges, including growing demands for storage, high availability computing, clinical information systems and the increasing service levels the technology requires," said George Brenckle, senior vice president and chief information officer, UMass Memorial Health Care, Inc. "We are confident our extended partnership with ACS will elicit continued success and help reposition our hospital system for future growth."

Through it subsidiary unit, ACS Healthcare Solutions, the company has a legacy in healthcare information technology and clinical transformation by providing a full array of services to healthcare delivery systems to help them operate more efficiently and effectively, including world-class healthcare transformational outsourcing services.

"UMass Memorial is demonstrating its leadership by taking proactive steps to anticipate and increase its capabilities through an expanded information services infrastructure," said Charles Bracken, managing director, ACS Healthcare Solutions. "Our deep healthcare knowledge and expertise, gained over nearly 25 years, combined with our integrated, healthcare-specific services and tools, will help us deepen our relationship with UMass Memorial and this facility's patients."

About ACS

ACS, a global FORTUNE 500 company with 63,000 people supporting client operations reaching more than 100 countries, provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company's Class A common stock trades on the New York Stock Exchange under the symbol "ACS." Learn more about ACS at http://www.acs-inc.com/.

About University of Massachusetts Memorial Health Care, Inc.

UMass Memorial Health Care, Inc. is the largest health care system in Central and Western Massachusetts, and the clinical partner of the University of Massachusetts Medical School. UMass Memorial Health Care, Inc. includes UMass Memorial Medical Center and four community hospitals.

The system also includes a long-term nursing facility, home health and hospice program, behavioral health programs, and community-based physician practices. Approximately 1,500 physicians are members of the medical staff, with 13,000 employees, including 3,000 registered nurses. In total, the hospitals have 1,093 beds. In 2006, 58,762 inpatients were treated and more than one million outpatient visits were counted. 5,346 babies were delivered and the emergency departments handled 233,500 visits.

The statements in this news release that do not directly relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties, many of which are outside the Company's control. As such, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the Company's prior filings with the Securities and Exchange Commission, including our most recent filing. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise.

Affiliated Computer Services, Inc.

CONTACT: Investors, Jon Puckett, Vice President, Investor Relations,
+1-214-841-8281, jon.puckett@acs-inc.com, or Media, Chris Gilligan, Manager,
Corporate Communications, +1-859-389-2412, chris.gilligan@acs-inc.com, both of
Affiliated Computer Services, Inc.

Web site: http://www.acs-inc.com/

Oracle Buys Global Knowledge SoftwareStrengthens Oracle's end-user training solutions to provide just-in-time, web- based training support across the enterprise

REDWOOD SHORES, Calif., July 31 /PRNewswire-FirstCall/ -- -- Oracle today announced that it has agreed to acquire Global Knowledge Software LLC (GKS), a division of Global Knowledge, Inc.

-- GKS is a leading provider of self-service training automation software.

-- GKS products improve end-user competency using enterprise applications through simulated transactional training and testing, as well as auto- generated step-by-step instructions.

-- GKS is a longtime Oracle partner. GKS's Personal Navigator product is resold as a core component of Oracle's User Productivity Kit (UPK) offering, currently deployed at more than 2,000 Oracle customers.

-- GKS products are complementary to Oracle Tutor, Oracle's role based process documentation and training software.

-- The combination of GKS products, Oracle Tutor, and Oracle's learning management software iLearning and eLearning, is expected to provide customers a comprehensive, end-to-end enterprise solution for creating and deploying business process documentation, interactive system training, and just-in-time embedded support for all applications across their enterprise.

-- Oracle intends to form a global sales unit to expand the focus on non- Oracle applications utilizing GKS products, extending Oracle's software training offering across the enterprise.

-- The transaction is expected to close in the third calendar quarter of 2008. Until the deal closes, each company will continue to operate independently. Financial details of the transaction were not disclosed.

Supporting Quotes

-- "Our customers are looking for a consistent, cost effective training solution across the enterprise to speed software adoption by end-users," said Ed Abbo, Senior Vice President of Oracle Application Development. "With this acquisition, customers will have access to a single technology for end-user training and process documentation that spans applications across their enterprise."

-- "With the advent of self-service applications and limited time and budgets for classroom-based training, organizations need to provide more efficient training on relevant job role processes and applications," said Kevin C. Riley, President of Global Knowledge Software LLC. "We are excited that Oracle is adding GKS's training software to Oracle's product family."

-- "The combination with Oracle is the culmination of a successful, long- standing relationship," said Joseph W. Cece, CEO of Global Knowledge, Inc.

Supporting Resources -- Oracle-Global Knowledge Software information page - http://www.oracle.com/gks/index.html -- Customer Letter - http://www.oracle.com/gks/customer-letter.html -- Partner Letter - http://www.oracle.com/gks/partner-letter.html -- General Presentation - http://www.oracle.com/gks/gks-general-presentation.pdf -- FAQ - http://www.oracle.com/gks/gks-faq.pdf -- Oracle Tutor and UPK website - http://tinyurl.com/ycl3n4 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/.

Trademark

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

CONTACT: Susie Penner, +1-650-506-1973, susanne.penner@oracle.com, or Roy
Lobo, +1-650-506-4073, roy.lobo@oracle.com, both of Oracle Investor Relations

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

Financial Institutions Must Accelerate Watch List Management Processes, Says Norkom TechnologiesWhitepaper Outlines Strategies to Improve Monitoring of Watch Lists of Suspects and Politically Exposed Persons (PEPs)

BOSTON, July 31 /PRNewswire-FirstCall/ -- Recent research conducted by Norkom Technologies reveals that, while the costs associated with watch list management continue to rise, most financial services organizations are struggling to meet their regulatory obligations and are ill-prepared to monitor suspected terrorist activity in times of crisis.

This was evidenced when, after a foiled terrorist attack in 2006, the UK government asked institutions to search their global operations for 17 named suspects. For most, the process took over three weeks. Yet, despite these apparent failings, the cost and time associated with watch list management continues to rise. 38% of organizations have seen time associated with watch list management rise within the last 12 months. Over one-third say that it accounts for more than 20% of investigatory time, representing an annual business cost of US$1 million.

According to Edward Doyle, Norkom's Sanction and PEP Compliance Manager and author of the whitepaper, "If it takes organizations so long to conduct an enterprise-wide name check at the behest of their government at a time of national emergency, it seems safe to assume that they complete the task no less speedily during the course of daily business".

Other findings include: - Fewer than half (45%) of institutions surveyed in The Endless Watch: Battle Strategies for the Counter Terrorist Financing Frontline are able to search for a person's name across all of their business lines, databases and geographical boundaries - One third (31%) still rely on manual processes in such searches, even though some of the institutions have more than ten million active customer accounts and process more than a million transactions each day - Encouragingly, however, 79% of institutions have recognized the seriousness of the problem and have centralized all anti-money-laundering responsibilities under a single reporting line - 27% have taken the more decisive step of centralizing their intelligence gathering by implementing a single technology capable of consolidating information from various detection systems.

Doyle maintains that the approach to the problem must be a risk-based one, in which the degree of scrutiny devoted to the ongoing monitoring of accounts and transaction matches up to the degree of risk. Norkom's whitepaper, 'The Endless Watch: Battle strategies for the counter terrorist financing frontline', outlines a six-pronged approach for boosting the effectiveness of anti-money laundering processes:

1) Centralize data 2) Manage variation 3) Transliterate and translate 4) Link multiple data points 5) Monitor transactions in real-time 6) Manage across geographies.

Concludes Doyle, "Our whitepaper attempts to point a way forward by weighing up the value of new approaches in the unglamorous but strategically vital frontline in the war against terrorist financing."

Copies of Norkom's whitepaper, 'The Endless Watch: Battle strategies for the counter terrorist financing frontline' are available free-of-charge on http://www.norkom.com/.

Notes to Editors About Norkom Technologies

Established in 1998, Norkom Technologies (AIM: NORK.L, IEX: NORK.IE) enables financial organisations to take intelligent action, control defences, and evolve strategies against fraud, money laundering, and other types of financial crime. By combining a unique investigative technology platform with deep domain expertise, Norkom has established a solid track record of reducing financial losses, protecting users' reputations, improving operational efficiencies, and lowering the cost of information technology.

Norkom serves clients in over 100 countries, including HSBC, Credit Agricole, DnB NOR, Erste, Fortis, Rabobank, Standard Chartered Bank, Swedbank, Washington Mutual.

For further information, please contact:

Fiona McLoughlin, Marketing Manager, Norkom Technologies, +353-1-8739612, fiona.mcloughlin@norkom.com

Norkom Technologies

CONTACT: For further information, please contact: Fiona McLoughlin,
Marketing Manager, Norkom Technologies, +353-1-8739612,
fiona.mcloughlin@norkom.com

RiT Technologies Reports Results for Q2 2008Q2 Revenues Up 45% to $5.9M; H1 Revenues Up 12% to $10.7M$4.0M PIPE Transaction In Process of Closing

TEL AVIV, Israel, July 31 /PRNewswire-FirstCall/ -- RiT Technologies , the world-leading provider of intelligent infrastructure solutions, today announced financial results for the second quarter and six months ended June 30, 2008.

Financial Results

Revenues for the second quarter of 2008 were $5.9 million, a 45% increase compared with $4.1 million for the second quarter of 2007 and a 24% increase compared with the previous quarter of 2008. Net loss for the quarter was $0.5 million, or $0.03 per share (basic and diluted) a decrease of 73% compared with $1.8 million, or $0.12 per share (basic and diluted), in the second quarter of 2007. The Company's expenses for the quarter included the impact of the continued decline in the shekel/dollar exchange rate.

Revenues for the first half of 2008 were $10.7 million, an increase of 12% compared with $9.6 million for the first six months of 2007. Net loss for the period was $1.6 million, or $0.11 per basic and diluted share, a reduction of 38% compared with a net loss of $2.6 million, or $0.18 per basic and diluted share, for the first six months of 2007.

Changes in Principal Shareholders and Management

On June 12, 2008, the Company announced that STINS COMAN had completed the acquisition of 41.9% of RiT's outstanding share capital, thereby becoming its controlling shareholder. After the acquisition, Messrs. Yehuda Zisapel and Meir Barel resigned from the Board of Directors of the Company, and Messrs. Sergey Anisimov and Boris Granovsky joined the Board of Directors. Mr. Sergey Anisimov, President and Founder of STINS COMAN since 1992, was appointed Chairman of RiT's Board of Directors, replacing Yehuda Zisapel who had served as RiT's Chairman since 1989.

In addition, the Company announced the appointment of Mr. Avi Kovarsky, formerly RiT's Senior VP Sales and an employee of RiT since 1997, as President and CEO, replacing Mr. Doron Zinger on July 1, 2008.

Comments of Management

"The second quarter was a transformational period during which the Company changed ownership, management and strategy," commented Mr. Avi Kovarsky. "We are encouraged by the quarter's significant revenue growth and by our growing pipeline of potential sales for the second half of the year and 2009, which includes opportunities for both the Carrier and Enterprise side of the business. This reflects the growing success of our sales and marketing activities, together with our focus on the fast-growing regions of Russia, Eastern Europe and CIS countries. Further, we have recently announced that we are in the process of closing a $4.0 million private placement of ordinary shares (PIPE investment) (subject to shareholder approval), a milestone transaction which will further increase our ability to do business and to execute our work plan."

Mr. Kovarsky continued, "During the quarter and immediately after, we recorded several initial Carrier orders from new customers that are due for delivery in the third quarter. These sales, together with a number of high-quality Enterprise and Carrier deals that are now in an advanced stage of negotiation, are evidence of a reawakening and strengthening of our business.

"Going forward, our key strategic goals are clear: to take better advantage of the relationships we have built with the world's leading network infrastructure integrators, and to leverage the presence of our partners in high-potential vertical markets."

Mr. Kovarsky concluded, "Taken as a whole, we feel well positioned, and are determined to return RiT to profitability as soon as possible. We believe we will be able to deliver a much stronger second half for 2008 and to continue expanding the Company's momentum in 2009."

Conference Call Details

The Company will host a conference call to discuss these results today, Thursday, July 31st, at:

10:00 a.m. Eastern Daylight Time 9:00 a.m. Central Daylight Time 8:00 a.m. Mountain Daylight Time 7:00 a.m. Pacific Daylight Time 17:00 Israel Time

To participate, please call one of the following teleconferencing numbers approximately 5-10 minutes prior to the scheduled start of the call:

U.S. (toll free) - 1-888-407-2553 International - +972-3-918-0650

To participate in the webcast of the call, please log-in about 5-10 minutes prior to the start of the call as follows: http://www.videonewswire.com/event.asp?id=50395

For those unable to participate, the teleconference will be archived for replay for 14 days at the same url address, beginning 12 o'clock noon (EDT) the day of the call. Note: Participants in the webcast may submit questions to be addressed in the conference call in advance by email to: simonag@rit.co.il, by phone: +972-3-766-4249 or fax: +972-3-647-4115.

About RiT Technologies

RiT is a leading provider of intelligent solutions for infrastructure management, asset management and network utilization. RiT Enterprise solutions address datacenters, communication rooms and workspace environments, ensuring maximum utilization, reliability, decreased downtime, physical security, automated deployment, asset tracking, and troubleshooting. RiT Carrier solutions provide carriers with the full array of network mapping, testing and bandwidth qualification capabilities needed for access network installation and service provisioning. RiT's field-tested solutions are delivering value in thousands of installations for top-tier enterprises and operators throughout the world.

For more information, please visit our website: http://www.rittech.com/

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate", "forecast", "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described under the heading "Risk Factors" in our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 20-F, which may be revised or supplemented in subsequent reports filed with the SEC. These factors include, but are not limited to, the following: our ability to raise additional financing, if required; the continued development of market trends in directions that benefit our sales; our ability to maintain and grow our revenues; our dependence upon independent distributors, representatives and strategic partners; our ability to develop new products and enhance our existing products; the availability of third-party components used in our products; the economic condition of our customers; the impact of government regulation; and the economic and political situation in Israel. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

RiT TECHNOLOGIES LTD. CONSOLIDATED BALANCE SHEETS (U.S GAAP) (U.S dollars in thousands) June 30, December 31, 2008 2007 (Unaudited) (Audited) Assets Current Assets Cash, cash equivalents and short term investments 3,560 3,850 Trade receivables, net 4,366 4,536 Other current assets 449 370 Inventories 3,677 3,684 Total Current Assets 12,052 12,440 Long­term Investment 1,940 1,713 Property and Equipment Cost 3,445 3,376 Less - accumulated depreciation 2,878 2,734 567 642 Total Assets 14,559 14,795 Liabilities and Shareholders' Equity Current Liabilities Short-term loan from principal shareholder 2,000 - Trade payables 3,273 3,838 Other payables and accrued expenses 1,998 2,459 Total Current Liabilities 7,271 6,297 Long-term Liability Liability in respect of employees' severance benefits 2,406 2,178 Total Liabilities 9,677 8,475 Shareholders' Equity Share capital 389 389 Treasury stock (27) (27) Additional paid-in capital 32,734 32,580 Accumulated deficit (28,214) (26,622) Total Shareholders' Equity 4,882 6,320 Total Liabilities and Shareholders' Equity 14,559 14,795 RiT TECHNOLOGIES LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (U.S dollars in thousands, except for per share data) For the three months For the six months ended ended June 30, June 30, 2008 2007 2008 2007 (unaudited) (unaudited) Sales 5,943 4,102 10,735 9,602 Cost of sales 3,206 2,239 5,942 5,269 Gross profit 2,737 1,863 4,793 4,333 Operating costs and expenses: Research and development: Research and 936 1,199 1,938 2,272 development, gross Less - 104 49 104 110 royalty-bearing participation Research and 832 1,150 1,834 2,162 development, net Sales and 1,537 1,914 3,175 3,699 marketing General and 887 591 1,456 1,095 administrative Total operating 3,256 3,655 6,465 6,956 expenses Operating loss (519) (1,792) (1,672) (2,623) Financial income, 30 10 80 53 net Net loss (489) (1,782) (1,592) (2,570) Net loss per (0.03) (0.12) (0.11) (0.18) ordinary share (basic and diluted) Weighted average 14,681,574 14,670,643 14,681,574 14,658,918 number of ordinary shares, used to compute net loss per ordinary share (basic and diluted) Company contact: Simona Green VP Finance +972-3-766-4249 simonag@rit.co.il

RiT Technologies Ltd

CONTACT: Company contact: Simona Green, VP Finance, +972-3-766-4249,
simonag@rit.co.il

Global Tier-1 Mobile Operator Deploys Allot Service Gateway OmegaAllot Solutions Implemented by More Than 10 Mobile Operators, Strengthening its Leadership in the Mobile Market

BOSTON, Massachusetts, July 31 /PRNewswire-FirstCall/ -- Allot Communications Ltd. , a leader in IP service optimization and revenue generation solutions based on deep packet inspection (DPI), today announced the deployment of its industry-leading Service Gateway Omega by a global Tier 1 operator, which currently services more than 20 million subscribers. This customer joins mobile operators worldwide that use Allot solutions for gaining network intelligence to optimize subscriber Quality of Experience and create new, value-added services.

The operator selected Allot SG-Omega for its superior application identification and advanced subscriber behavior analysis. This network intelligence is vital to performing per-application policy provisioning towards optimizing the utilization of network resources and the resulting Quality of Experience. The mobile operator also benefits from the platform's proven performance and ability to scale in terms of number of subscribers and bandwidth.

"The increasing adoption of Allot solutions by mobile operators worldwide is a direct outcome of the exploding growth of data bandwidth and services over mobile networks and their emergence as an additional platform to deliver broadband services," commented Allot CEO and president, Rami Hadar. "The Service Gateway, equipped with Subscriber Management and Quota Management capabilities, facilitates the shift towards offering tiered and Value Added services."

About Allot Communications

Allot Communications is a leading provider of intelligent IP service optimization solutions. Designed for carriers, service providers and enterprises, Allot solutions apply deep packet inspection (DPI) technology to transform broadband pipes into smart networks. This creates the visibility and control vital to manage applications, services and subscribers, guarantee quality of service (QoS), contain operating costs and maximize revenue. Allot believes in listening to customers and provides them access to its global network of visionaries, innovators and support engineers. For more information, please visit http://www.allot.com/.

Contact: Albie Jarvis Senior Vice President Porter Novelli Tel: +1-617-897-8200 albie.jarvis@porternovelli.com Jonathon Gordon Director of Marketing Allot Communications Tel: +972-9-762-8423 jgordon@allot.com Jay Kalish Executive Director IR Allot Communications Tel: +972-9-7619365 jkalish@allot.com

Allot Communications Ltd.

CONTACT: Contact: Albie Jarvis, Senior Vice President, Porter Novelli,
Tel: +1-617-897-8200, albie.jarvis@porternovelli.com; Jonathon Gordon,
Director of Marketing, Allot Communications, Tel: +972-9-762-8423,
jgordon@allot.com; Jay Kalish, Executive Director IR, Allot Communications,
Tel: +972-9-7619365, jkalish@allot.com

Argyle Security, Inc. Announces Date for Second Quarter 2008 Earnings Release and Conference Call

SAN ANTONIO, July 31 /PRNewswire-FirstCall/ -- Argyle Security, Inc. (BULLETIN BOARD: ARGL) , ("Argyle") a service and solutions provider in the physical electronic security industry, today announced that it will release financial results for the second quarter ended June 30, 2008 before the market opens on Thursday, August 14, 2008. The Argyle management team will host an investor conference call at 10:00 a.m. ET on August 14, 2008 to discuss its results.

Interested parties should call 888-713-4213 (domestic) or 617-213-4865 (international) at least 5 minutes before the scheduled start time; the passcode is 89962604. You may also access this call via the Internet at:

http://www.argylesecurity.com/

For those who are unavailable to listen to the live broadcast, a replay will be available through August 28, 2008 and can be accessed by dialing 888-286-8010 (domestic), and 617-801-6888 (international). The pass code is 84546898.

About Argyle Security, Inc.

Formed in 2005 and headquartered in San Antonio, TX, Argyle Security's goal is to become a leading global provider of services and solutions in the physical electronic security industry through an integrated buildup strategy. Argyle's channel focus is Video Surveillance, Access Control, Perimeter Protection, Intrusion Protection, Fire Detection and Threat Analysis, serving selected commercial, governmental and residential markets.

In July 2007, Argyle acquired ISI Security Group. In February 2008, Argyle formed Argyle Security USA, which encompasses the former ISI Security Group's operations in both the corrections and commercial sectors, plus the PDI, Com-Tec and FireQuest acquisitions. Argyle Security, Inc. currently has two reporting segments: Argyle Corrections Group and Argyle Commercial Security.

Argyle Corrections is the controlling entity for ISI, PDI, Com-Tec and MCS. Argyle Corrections Group is one of the nation's largest providers of detention equipment products and service solutions, as well as turnkey, electronic security systems. These systems include unique engineering competencies and proprietary software products. Argyle Commercial Security focuses on the commercial security sector and provides turnkey, electronic security systems to the commercial market. Currently, MCS-Commercial Fire & Security is the only member in the Argyle Commercial Security group.

Please visit http://www.argylesecurity.com/ or http://www.argylesecurityusa.com/ for additional information on Argyle Security and Argyle Security USA.

Company Contacts: Investor Relations: Bob Marbut, Chairman & Co-CEO Amy Glynn, CFA Roni Chaimovski, Vice-Chairman & Co-CEO Cameron Associates Don Neville, CFO Phone: (212) 554-5464 Argyle Security, Inc. amy@cameronassoc.com Phone: (212) 245-2700 (NY) Phone: (210) 828-1700 (TX) Phone: 001-972-545-212-911 (Tel Aviv) Media Relations: Deanne Eagle Cameron Associates Phone: (212) 554-5463 deanne@cameronassoc.com

Argyle Security, Inc.

CONTACT: Bob Marbut, Chairman & Co-CEO, Roni Chaimovski, Vice-Chairman &
Co-CEO, or Don Neville, CFO, all of Argyle Security, Inc., +1-212-245-2700 NY,
+1-210-828-1700 TX, +001-972-545-212-911 Tel Aviv; Investor Relations: Amy
Glynn, CFA, +1-212-554-5464, amy@cameronassoc.com, or Media Relations: Deanne
Eagle, +1-212-554-5463, deanne@cameronassoc.com, both of Cameron Associates
for Argyle Security

Web site: http://www.argylesecurity.com/
http://www.argylesecurityusa.com/

MicroStrategy Enhances Integration with SAP BI to Deliver Faster Time-to-Value for Business Intelligence Applications

MCLEAN, Va., July 31 /PRNewswire-FirstCall/ -- MicroStrategy(R) Incorporated , a leading worldwide provider of business intelligence (BI) software, today announced that its latest release of MicroStrategy 8(TM) software provides deeper integration with SAP BI to help organizations achieve even faster time-to-value for their BI applications. The latest MicroStrategy software release was made generally available on July 18, 2008.

With this new release, MicroStrategy customers can further leverage their existing SAP investments with improved capabilities to design, publish, administer, and maintain their SAP reports. MicroStrategy now offers enhanced reuse of SAP BI objects that accelerate SAP report development, enabling higher-quality development in less time. MicroStrategy is committed to the continued enhancement of its SAP integration and has recently renewed its SAP(R) Certified Integration certification.

Additionally, MicroStrategy dashboards and reports can combine SAP BI data with non-SAP data to provide comprehensive corporate performance insight across all data assets. MicroStrategy generates optimized MDX syntax that is fully certified with SAP BI using SAP's high performance BAPI interfaces. MicroStrategy uses the multidimensional models implicit in SAP InfoCubes and QueryCubes, allowing users to seamlessly analyze, investigate, and drill anywhere into SAP BI for more data, without prior programming or prior design of drill paths.

"MicroStrategy customers can now apply the full analytical power of the MicroStrategy 8 BI platform to the SAP BI pre-packaged business content," said Sanju Bansal, COO of MicroStrategy. "Since MicroStrategy reuses the information already contained in SAP BI, report development time is accelerated for our customers, providing enhanced time-to-value."

About MicroStrategy

Founded in 1989, MicroStrategy is a global leader in business intelligence (BI) technology. MicroStrategy provides integrated reporting, analysis, and monitoring software that helps leading organizations worldwide make better business decisions every day. Companies choose MicroStrategy for its advanced technical capabilities, sophisticated analytics, and superior data and user scalability. More information about MicroStrategy is available at http://www.microstrategy.com/.

MicroStrategy, MicroStrategy 8, and MicroStrategy Business Intelligence Platform are either trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.

Contact: Wende Cover MicroStrategy Incorporated (703) 770-1646 wcover@microstrategy.com

MicroStrategy

CONTACT: Wende Cover of MicroStrategy Incorporated, +1-703-770-1646,
wcover@microstrategy.com

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

MicroStrategy Mobile Enhancements Offer Broad Range of New Features for Superior User Experience

MCLEAN, Va., July 31 /PRNewswire-FirstCall/ -- MicroStrategy(R) Incorporated , a leading worldwide provider of business intelligence (BI) software, today announced that its latest release of MicroStrategy 8(TM) software offers enhancements to MicroStrategy Mobile(TM). MicroStrategy Mobile allows mobile workers to access BI reports and dashboards directly on their BlackBerry(R) smartphones.

With MicroStrategy Mobile, business users receive the same reports and dashboards on their BlackBerry smartphone as they receive on their desktop, without the need for reformatting or retrofitting existing reports. Designed for all levels of users, MicroStrategy Mobile displays reports with easy-to-view and easy-to-navigate interactivity, enabling users to review, analyze, and interact with important data at their convenience.

The latest MicroStrategy 8 release on July 18, 2008 offers a broad range of user-friendly features to MicroStrategy Mobile. MicroStrategy Mobile users can access a host of new data views for dashboards and reports on their BlackBerry smartphones. Users can reformat reports and save the formatting changes to share with other mobile users. In addition, reports can be displayed incrementally on the BlackBerry, which gives users greater speed in viewing exceptionally large reports.

"The migration from an email-based system to MicroStrategy Mobile was fast and seamless because we did not need to change any reports," said Len Nicolas, COO and CTO at Nygard International. "The ROI was immediate in terms of gaining productive time since the reports are always available."

"In today's fast-paced business environment, mobile BI is vital," said Sanju Bansal, COO of MicroStrategy. "MicroStrategy Mobile embodies the vision we had for BI many years ago, namely the ability for every person to have answers to their most pressing business questions whenever and wherever they are."

About MicroStrategy

Founded in 1989, MicroStrategy is a global leader in business intelligence (BI) technology. MicroStrategy provides integrated reporting, analysis, and monitoring software that helps leading organizations worldwide make better business decisions every day. Companies choose MicroStrategy for its advanced technical capabilities, sophisticated analytics, and superior data and user scalability. More information about MicroStrategy is available at http://www.microstrategy.com/.

MicroStrategy, MicroStrategy 8, and MicroStrategy Mobile are either trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.

Contact: Wende Cover MicroStrategy Incorporated (703) 770-1646 wcover@microstrategy.com

MicroStrategy

CONTACT: Wende Cover of MicroStrategy Incorporated, +1-703-770-1646,
wcover@microstrategy.com

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

The Brink's Company Reports Higher Second-Quarter Earnings

RICHMOND, Va., July 31 /PRNewswire-FirstCall/ -- The Brink's Company , a global leader in security-related services, reported second-quarter income from continuing operations of $49 million or $1.04 per share, up from $33 million or 70 cents per share in last year's second quarter. The company reported higher results at both of its operating units -- Brink's, Incorporated ("Brink's") and Brink's Home Security ("BHS"). Earnings were also helped by a lower effective tax rate.

Second-quarter revenue was $932 million, up 20% (11% on a constant currency basis) from $779 million in the second quarter of 2007. Operating profit rose 26% (20% on a constant currency basis) to $75 million, up from $59 million last year, due mainly to profit growth in Brink's Latin American and European operations, which more than offset lower profits in Brink's North America. Profits at BHS improved due to higher average monitoring rates and continued growth in the subscriber base. BHS is expected to be spun off as an independent publicly traded company in the fourth quarter.

Michael T. Dan, chairman, president and chief executive officer of The Brink's Company, said: "We are pleased with second-quarter results. Despite economic headwinds, the diversity of our global operations enabled us to deliver solid earnings growth. Revenues were up in all regions, even after excluding the effect of changes in currency exchange rates. Profit growth at Brink's, Incorporated was driven by our international operations. Results were especially strong in Latin America, where profits were boosted by the currency conversion project in Venezuela and improved operating performance in Brazil and Chile. Results in Europe also improved. The positive impact from international operations was partially offset by disappointing results in North America, where we are facing higher costs in a challenging economic environment. The year-to-date operating profit margin at Brink's was 8.5%. Our full-year goal, which is to deliver organic revenue growth in the high single-digit percentage range with an operating margin of approximately 9%, has become more challenging but remains achievable. The global diversity of our operations, our investments in technology and value-added services, and successful execution of our cost reduction efforts should drive sustainable revenue and profit growth. However, if the current weakness in the U.S. economy persists or spreads further into global markets, improving margins will become a greater challenge."

"Brink's Home Security once again achieved solid growth in revenue, operating profit, monthly recurring revenue and subscribers. Despite the weak housing market, we continue to expect BHS to deliver 10% or better annual growth in revenue and operating profit while growing the subscriber base in the high single-digit percentage range. We remain on track and expect to complete the spin-off of BHS in the fourth quarter of this year."

Business Unit Performance: Second-Quarter 2008 Versus 2007 Brink's, Incorporated ("Brink's")

Brink's, the company's secure transportation and cash management unit, had second-quarter revenue of $798 million, up 21% (11% on a constant currency basis) from $659 million in the year-ago quarter. Operating profit rose 23% (14% on a constant currency basis) to $53 million, up from $43 million last year. The operating profit margin was 6.6% versus 6.5% last year. The increase in operating profit was due primarily to solid growth in international operations.

Capital expenditures during the quarter totaled $39 million, bringing year-to-date expenditures to $70 million. Full-year capital spending at Brink's is expected to be between $165 million and $175 million.

Brink's International

Second-quarter revenue from international operations was $563 million, up 28% (14% on a constant currency basis) from $440 million in 2007, reflecting increases in all regions. Operating profit rose 48% (36% on a constant currency basis) to $42 million, up from $28 million last year, due primarily to higher profits in Latin American and European operations. The operating profit margin for international operations was 7.4%, up from 6.4% in last year's second quarter.

EMEA (Europe, Middle East, Africa): Second-quarter revenue for EMEA was $352 million, up 23% (6% on a constant currency basis) from $287 million in 2007. Operating profit increased due to improved performance throughout the region.

Latin America: Second-quarter revenue in Latin America increased 40% (30% on a constant currency basis) to $194 million, up from $138 million in 2007. Operating profit increased significantly over last year as continued profit growth in Venezuela was supplemented by higher profits in Brazil and Chile. Revenues from the currency conversion project in Venezuela, which totaled approximately $12 million in the second quarter and $47 million for the year-to-date period, are expected to decline in the third quarter as the project nears completion.

Asia-Pacific: Second-quarter revenue in Asia-Pacific rose 14% to $17 million versus $15 million last year. Operating profit declined due to lower results in Australia.

Brink's North America

Second-quarter revenue in North America was $235 million, up 7% from $219 million last year. Operating profit was $11 million, down 26% from $15 million in the year-ago quarter. The operating profit margin for the quarter was 4.6%, down from 6.7% in last year's second quarter. The profit decline was due to several factors including higher labor, fuel and legal settlement expenses. A portion of the additional labor costs were related to spending on IT and commercial resources, which should drive future revenue and profit growth.

Brink's Home Security ("BHS")

Second-quarter revenue at BHS rose 12% to $134 million, up from $119 million in 2007 due primarily to continued growth in the subscriber base and higher average monitoring rates. BHS ended the quarter with approximately 1.27 million subscribers, up 8% from the year-ago level. Monthly recurring revenue rose 12% to $39 million (see Non-GAAP Reconciliations for a reconciliation of monthly recurring revenue to reported revenue).

Operating profit was $36 million, up 15% from $31 million last year as higher profits from recurring services offset increased investment in new subscribers. The second-quarter operating profit margin was 26.5%, up from 25.8% in 2007. This year's operating profit includes a $2.5 million benefit related to an accounting correction for deferred revenue and expenses. Last year's results include $1.9 million of income from the settlement of insurance claims related to Hurricane Katrina.

BHS installed approximately 44,200 systems for new customers during the quarter versus approximately 45,200 installations in the year-ago quarter. The decline in installations reflects the effects of ongoing weakness in the housing market and the overall economy.

BHS had 22,300 disconnects during the quarter, down from 23,300 last year. The annualized disconnect rate was 7.1%, down from 8.0% in the year-ago quarter. Last year's higher disconnect rate was due to technical adjustments to the subscriber count. The full-year disconnect rate in 2008 is expected to range between 6.5% and 7.0%.

Second-quarter capital expenditures at BHS totaled $44 million, bringing year-to-date expenditures to $90 million. Total capital spending at BHS in 2008 is expected to be between $185 million and $195 million.

Corporate Expenses

Total corporate expense in the second quarter was $13 million, up from $11 million in 2007. In the 2008 quarter, the company incurred approximately $3 million of expenses related to the tax-free spin-off of BHS. For the full year expenses related to strategic reviews, proxy matters and the spin-off are expected to range between $17 million and $20 million.

Costs Related to Former Operations Included in Continuing Operations

Second-quarter expenses related to former operations were $200,000, down from nearly $4 million in 2007 due primarily to lower pension and postretirement medical expenses.

Taxes

The effective income tax rate of 24.6% for the quarter was significantly lower than the year-ago rate of 36.7% due primarily to a release of valuation allowances in non-U.S. tax jurisdictions and higher income generated in non-U.S. jurisdictions that have lower tax rates. The effective tax rate for the full-year is expected to be between 31% and 34%.

Discontinued Operations

Second-quarter income from discontinued operations was $200,000 or one cent per share versus a loss of $5 million or 10 cents per share in the second quarter of 2007.

Net Income

Second-quarter net income, which includes results from continuing and discontinued operations, was $49 million or $1.05 per share versus $28 million or 60 cents per share in 2007.

Recent Events

On May 30, the company announced that Brink's Home Security Holdings, Inc. filed with the Securities and Exchange Commission (SEC) a registration statement on Form 10 in connection with the planned tax-free spin-off of Brink's Home Security. The Form 10 includes preliminary details regarding the spin-off, which is expected to be completed in the fourth quarter of 2008. The filing was amended in a revised filing on July 18. The registration statement is subject to further change and is available at the SEC's website (http://www.sec.gov/) under the name of Brink's Home Security Holdings, Inc.

During the quarter, the company purchased 229,000 shares of its common stock for $15.7 million or $68.48 per share under the $100 million share repurchase authorization announced in 2007. In total, the company has repurchased 883,800 shares under this authorization for a total of $56.3 million or $63.67 per share.

This release contains both historical and forward-looking information. Words such as "anticipates," "estimates," "expects," "projects," "intends," "plans," "believes," "may," "should" and similar expressions may identify forward-looking information. Forward-looking information in this release includes, but is not limited to, expected revenue growth, cash flow and earnings for The Brink's Company and its subsidiaries in 2008, including organic revenue growth and operating profit margin at Brink's and revenue, operating profit and subscriber growth at BHS, efforts to improve revenue and profit growth at Brink's, maintaining improvements in Europe and improving results in North America, combating competitive environments and higher costs in the United States and France, anticipated revenues from the currency conversion project in Venezuela, expected capital expenditures for 2008, ongoing weakness in the housing market, the disconnect rate at BHS, the timing and other expected characteristics of the spin-off of BHS, expected expenses in 2008 related to strategic reviews, proxy matters and the spin-off and the anticipated annual effective tax rate for 2008. The forward-looking information in this release is subject to known and unknown risks, uncertainties and contingencies, which could cause actual results, performance or achievements to differ materially from those that are anticipated.

These risks, uncertainties and contingencies, many of which are beyond the control of The Brink's Company and its subsidiaries, include, but are not limited to the ability of the Company to complete a successful spin-off of BHS, the satisfaction of all conditions in order to complete a spin-off of BHS, demand for the services of Brink's and BHS, the implementation of investments in technology and value-added services and cost reduction efforts and their impact on revenue and profit growth, the ability to identify and execute further cost and operational improvements and efficiencies in the core businesses, the impact of continuing initiatives to control costs and increase profitability, the ability of the businesses to cost effectively match customer demand with appropriate resources, the willingness of Brink's and BHS' customers to absorb fuel surcharges and other future price increases and the actions of competitors, the Company's ability to identify strategic opportunities and integrate them successfully, acquisitions and dispositions made in the future, Brink's ability to integrate recent acquisitions, corporate expenses due to the implementation of the spin-off decision and shareholder initiatives, decisions by the Company's Board of Directors, Brink's ability to complete currency conversion cash handling services in Venezuela successfully and without adverse operational issues, regulatory and labor issues and higher security threats in European countries, the impact of actions responding to current market conditions in the United States, France and other European countries, the return to profitability of operations in jurisdictions where Brink's has recorded valuation adjustments, the input of governmental authorities regarding the non-payment of customs duties and value-added tax, the stability of the Venezuelan economy and changes in Venezuelan policy regarding exchange rates for dividend remittances, variations in costs or expenses and performance delays of any public or private sector supplier, service provider or customer, the ability of the Company and its subsidiaries to obtain appropriate insurance coverage at reasonable prices, positions taken by insurers with respect to claims made and the financial condition of insurers, safety and security performance, Brink's loss experience, changes in insurance costs, risks customarily associated with operating in foreign countries including changing labor and economic conditions, political instability, restrictions on repatriation of earnings and capital, nationalization, expropriation and other forms of restrictive government actions, costs associated with information technology and other ongoing contractual obligations, BHS' ability to maintain subscriber growth, the number of household moves, the level of home sales or new home construction, potential instability in housing credit markets, the performance of BHS' equipment suppliers and dealers, BHS' ability to cost-effectively develop or incorporate new systems in a timely manner, decisions regarding continued support of the developing commercial business, the ability of the home security industry to dissuade law enforcement and municipalities from refusing to respond to alarms, the willingness of BHS' customers to pay for private response personnel or other alternatives to police responses to alarms, estimated reconnection experience at BHS, costs associated with the purchase and implementation of cash processing and security equipment, changes in the scope or method of remediation or monitoring of the Company's former coal operations, the timing of the pass-through of certain costs to third parties and the timing of approvals by governmental authorities relating to the disposal of the coal assets, changes to estimated liabilities and assets in actuarial assumptions due to payments made, investment returns, annual actuarial revaluations, and periodic revaluations of reclamation liabilities, the funding levels, accounting treatment, investment performance and costs of the company's pension plans and the VEBA, whether the Company's assets or the VEBA's assets are used to pay benefits, projections regarding the number of participants in and beneficiaries of the Company's employee and retiree benefit plans, black lung claims incidence, the number of dependents of mine workers for whom benefits are provided, actual retirement experience of the former coal operation's employees, actual medical and legal expenses relating to benefits, changes in inflation rates (including medical inflation) and interest rates, changes in mortality and morbidity assumptions, mandatory or voluntary pension plan contributions, discovery of new facts relating to civil suits, the addition of claims or changes in relief sought by adverse parties, the cash, debt and tax position and growth needs of the Company, the demand for capital by the Company and the availability and cost of such capital, the satisfaction or waiver of limitations on the use of proceeds contained in various of the Company's financing arrangements, the nature of the Company's hedging relationships, the financial performance of the Company, utilization of third-party advisors and the ability of the Company to hire and retain corporate staff, changes in employee obligations, overall domestic and international economic, political, social and business conditions, capital markets performance, the strength of the U.S. dollar relative to foreign currencies, foreign currency exchange rates, changes in estimates and assumptions underlying the Company's critical accounting policies, anticipated return on assets, inflation, the promulgation and adoption of new accounting standards and interpretations, seasonality, pricing and other competitive industry factors, labor relations, fuel and copper prices, new government regulations and interpretations of existing regulations, legislative initiatives, judicial decisions, issuances of permits, variations in costs or expenses and the ability of counterparties to perform. The information included in this release is representative only as of the date of this release, and The Brink's Company undertakes no obligation to update any information contained in this release.

About The Brink's Company

The Brink's Company is a global leader in security-related services that operates two businesses: Brink's, Incorporated and Brink's Home Security. Brink's, Incorporated is the world's premier provider of secure transportation and cash management services. Brink's Home Security is one of the largest and most successful residential alarm companies in North America. The Brink's Company expects to spin-off Brink's Home Security in the fourth quarter of 2008. For more information, please visit The Brink's Company website at http://www.brinkscompany.com/ or call toll free 877-275-7488.

Conference Call

The Brink's Company will host a conference call today, July 31, at 11:00 a.m. eastern time to discuss this press release. Interested parties can listen to the conference call by dialing (877) 407-0778 (domestic) or (201) 689-8565 (international), or via live webcast at http://www.brinkscompany.com/. Please dial in at least five minutes prior to the start of the call. Dial-in replay will be available through August 14, 2008, by calling (877) 660-6853 (domestic) or (201) 612-7415 (international). The conference account number is 286 and the conference ID for the replay is 290626. A webcast replay will also be available at http://www.brinkscompany.com/.

The Brink's Company and subsidiaries Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (In millions, except per share 2008 2007 2008 2007 amounts) Revenues $ 931.7 778.7 1,852.3 1,519.2 Expenses: Cost of revenues 712.0 602.4 1,393.7 1,167.1 Selling, general and administrative expenses 145.5 120.6 286.1 233.0 Total expenses 857.5 723.0 1,679.8 1,400.1 Other operating income (expense), net 0.4 3.5 (0.6) 4.4 Operating profit 74.6 59.2 171.9 123.5 Interest expense (3.3) (3.0) (5.8) (5.5) Interest and other income, net 3.0 2.1 5.1 3.7 Income from continuing operations before income taxes and minority interest 74.3 58.3 171.2 121.7 Provision for income taxes 18.3 21.4 52.3 46.7 Minority interest 7.5 3.8 22.4 10.8 Income from continuing operations 48.5 33.1 96.5 64.2 Income (loss) from discontinued 0.2 (4.8) 2.3 (7.2) operations, net of tax Net income $ 48.7 28.3 98.8 57.0 Basic earnings per common share: Continuing operations $ 1.05 0.71 2.09 1.38 Discontinued operations 0.01 (0.10) 0.05 (0.16) Net income 1.06 0.61 2.14 1.23 Diluted earnings per common share: Continuing operations $ 1.04 0.70 2.07 1.37 Discontinued operations 0.01 (0.10) 0.05 (0.15) Net income 1.05 0.60 2.12 1.21 Weighted-average common shares outstanding: Basic 46.0 46.5 46.2 46.4 Diluted 46.5 47.1 46.7 47.0 THE BRINK'S COMPANY and subsidiaries (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (In millions) 2008 2007 2008 2007 Segment Information Revenues: Brink's $ 797.8 659.3 1,590.6 1,285.1 Brinks Home Security 133.9 119.4 261.7 234.1 Revenues $ 931.7 778.7 1,852.3 1,519.2 Operating profit: Brink's $ 52.6 42.9 134.6 93.9 Brinks Home Security 35.5 30.8 67.5 59.0 Business segments 88.1 73.7 202.1 152.9 Corporate (13.3) (10.9) (29.4) (22.5) Former operations (0.2) (3.6) (0.8) (6.9) Operating profit $ 74.6 59.2 171.9 123.5 Supplemental Financial Information Brink's: Revenues: International $ 563.1 440.2 1,125.6 854.8 North America 234.7 219.1 465.0 430.3 Revenues $ 797.8 659.3 1,590.6 1,285.1 Operating profit: International $ 41.7 28.2 110.3 60.9 North America 10.9 14.7 24.3 33.0 Operating profit $ 52.6 42.9 134.6 93.9 Brink's Home Security: Revenues $ 133.9 119.4 261.7 234.1 Operating profit: Recurring services $ 60.2 52.5 117.0 103.3 Investment in new subscribers (24.7) (21.7) (49.5) (44.3) Operating profit $ 35.5 30.8 67.5 59.0 Monthly recurring revenues (a) $ 39.3 35.1 Annualized disconnect rate 7.1 % 8.0 % 6.6 % 7.1 % Number of subscribers (in thousands): Beginning of period 1,249.6 1,153.2 1,223.9 1,124.9 Installations 44.2 45.2 88.8 91.0 Disconnects (22.3) (23.3) (41.2) (40.8) End of period 1,271.5 1,175.1 1,271.5 1,175.1 Average number of subscribers 1,261.4 1,165.6 1,248.9 1,151.9 (a) see "Non-GAAP Reconciliations" below. THE BRINK'S COMPANY and subsidiaries Supplemental Financial Information (continued) (Unaudited) SELECTED CASH FLOW INFORMATION Three Months Ended Six Months Ended June 30, June 30, (In millions) 2008 2007 2008 2007 Depreciation and amortization: Brink's $ 31.2 26.0 60.9 50.7 Brink's Home Security 21.8 19.1 42.4 37.6 Corporate 0.1 0.1 0.2 0.3 Depreciation and amortization $ 53.1 45.2 103.5 88.6 Capital expenditures: Brink's $ 38.8 31.1 70.3 57.3 Brink's Home Security: Security systems 42.4 41.6 85.6 82.7 Other 1.9 2.9 4.5 5.2 Corporate 0.1 - 0.1 0.1 Capital expenditures $ 83.2 75.6 160.5 145.3 Other Brink's Home Security cash flow information: Impairment charges from subscriber disconnects $ 12.8 13.1 24.7 24.3 Amortization of deferred revenue (11.4) (8.7) (20.0) (16.7) Deferral of subscriber acquisition costs (current year payments) (5.8) (6.3) (12.1) (12.1) Deferral of revenue from new subscribers (current year receipts) 11.6 12.1 23.6 24.2 THE BRINK'S COMPANY and subsidiaries Non-GAAP Reconciliations (Unaudited) Monthly Recurring Revenues

The following table reconciles MRR to revenues, its closest GAAP counterpart:

Six Months Ended June 30, (In millions) 2008 2007 June: Monthly recurring revenues ("MRR")(a) $ 39.3 35.1 Amounts excluded from MRR: Amortization of deferred revenue (b) 3.4 3.1 Other revenues (c) 1.0 2.2 Revenues on a GAAP basis $ 43.7 40.4 Revenues (GAAP basis): June $ 43.7 40.4 January - May 218.0 193.7 January - June $ 261.7 234.1

(a) MRR is calculated based on the number of subscribers at period end multiplied by the average fee per subscriber received in the last month of the period for contracted monitoring and maintenance services.

(b) Includes amortization of deferred revenue related to active subscriber accounts as well as recognition of deferred revenue related to subscriber accounts that disconnect.

(c) Revenues that are not pursuant to monthly contractual billings, including revenues from such sources as ad-hoc field service calls, product sales and installation fees not subject to deferral, terminated contract penalty billings for breached contracts, pass-through revenue (alarm permit fees, false alarm fines, etc.) and partial month revenues recognized from customers who disconnected during the last month of the period and are therefore not included in MRR. This amount is reduced for adjustments recorded against revenue (primarily customer goodwill credits and other billing adjustments), and for the amount included in MRR for new customers added during the last month of the period for those portions of the month for which revenues were not recognized for such customers.

The company uses MRR, a non-GAAP measure, to evaluate performance. The company believes the presentation of MRR is useful to investors because the measure is widely used in the industry to assess the amount of recurring revenues from subscriber fees that a monitored security alarm business produces. This supplemental non-GAAP information should be reviewed in conjunction with the company's consolidated statements of operations.

The Brink's Company and subsidiaries Non-GAAP Reconciliations (continued) (Unaudited) Net Debt (Cash) reconciled to GAAP measures June 30, December 31, (In millions) 2008 2007 Short-term debt $ 9.3 12.4 Long-term debt 170.1 100.2 Debt 179.4 112.6 Less cash and cash equivalents (246.3) (196.4) Net Debt (Cash) $ (66.9) (83.8)

Net Debt (Cash) is utilized by management as a measure of the company's financial leverage and the company believes that investors also may find Net Debt (Cash) to be helpful in evaluating the financial leverage of the company. This supplemental non-GAAP information should be reviewed in conjunction with the company's consolidated balance sheets in the company's report on Form 10-Q for the period ended June 30, 2008.

The Brink's Company and subsidiaries Non-GAAP Reconciliations (continued) (Unaudited) Brink's, Incorporated Organic Revenue Growth Three Months % change Six Months % change Ended from prior Ended from prior (In millions) June 30, period June 30, period 2006 revenues $ 575.9 1,124.3 Effects on revenue of: Organic Revenue Growth 48.5 8 96.2 8 Acquisitions and dispositions, net 6.5 1 12.8 1 Changes in currency exchange rates 28.4 5 51.8 5 2007 revenues 659.3 14 1,285.1 14 Effects on revenue of: Organic Revenue Growth 66.4 10 162.3 13 Acquisitions and dispositions, net 6.4 1 14.1 1 Changes in currency exchange rates 65.7 10 129.1 10 2008 revenues $ 797.8 21 1,590.6 24

The supplemental Brink's, Incorporated Organic Revenue Growth information presented above is non-GAAP financial information that management uses to evaluate results of existing operations without the effects of acquisitions, dispositions and currency exchange rates. The company believes that this information may be helpful to investors in understanding the performance of the company's operations. The limitation of this measure is that the effects of acquisitions, dispositions and changes in values of foreign currencies cannot be completely separated from changes in prices (which include the effects of inflation) and volume of a unit's base business. This supplemental non-GAAP information does not affect net income or any other reported amounts. This supplemental non-GAAP information should be reviewed in conjunction with the company's consolidated statements of operations.

Contact: Investor Relations 804.289.9709

The Brink's Company

CONTACT: Investor Relations of The Brink's Company, +1-804-289-9709

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

GSI Group Reports Second Quarter Results

BEDFORD, Mass., July 31 /PRNewswire-FirstCall/ -- GSI Group Inc., , a supplier of precision technology and semiconductor systems, today announced financial results for the second quarter ended June 27, 2008.

Second quarter revenue was $66.0 million, compared to $71.7 million in the first quarter of 2008 and $73.1 million for the second quarter of 2007. Excluding restructuring charges, operating profit was $1.6 million in the second quarter versus $1.5 million in the first quarter and $5.4 million in the second quarter of 2007. GAAP net income for the quarter was $1.1 million, or $0.03 per diluted share, compared to the first quarter results of $2.1 million, or $0.05 per diluted share, and $3.3 million, or $0.08 per diluted share in the second quarter of 2007.

Second quarter bookings were $51.2 million, compared to $56.1 million in the first quarter of 2008. The book-to-bill ratio was 0.78.

The backlog as of June 27, 2008 was $60.0 million, compared with $74.8 million in the first quarter of 2008. The backlog as of June 27, 2008 includes deferred revenue of $10.6 million.

Dr. Sergio Edelstein, President and CEO commented, "Although GSI's overall slower business levels mirror the current state of the semiconductor industry, our laser, scanner and encoder product lines continue to perform well. I am particularly pleased with the market's increasing acceptance of our new Lightning Scanners, JK and Fiber Lasers, and Mercury II Encoders."

"In addition, we have recently announced the execution of a definitive agreement to acquire Excel Technology," Dr. Edelstein continued. "This transaction will nearly double the revenues from our Precision Technology segment. Going forward, we expect the Precision Technology segment of our business will approach 80% of GSI's total revenue, and will expand our presence in several of our most attractive target markets."

Gross margin was 38.5% in the second quarter, versus 38.1% in the first quarter of 2008. Operating expenses, excluding restructuring charges, were $23.8 million in the second quarter compared to $25.9 million in the first quarter. Stock based compensation was $0.7 million in the second quarter versus $0.8 million in the first quarter of 2008.

Cash and cash equivalents were $183.3 million, an increase of $12.6 million from the first quarter. Second quarter cash usage includes disbursements of $3.3 million in connection with the Company's previously announced stock buyback program.

GSI launched a tender offer to purchase the outstanding shares of Excel Technology on July 23, 2008 and it is expected to remain open until August 19, 2008. The Company continues to expect that both the US Optics and Excel Technology transactions will close in the third quarter. For more information, please refer to our recent filings with the Securities and Exchange Commission.

Dial In: July 31st at 8:30 a.m. ET

GSI Group will host a conference call for investors at 8:30 a.m. Eastern time on July 31, 2008. Participants are invited to join by dialing (706) 634-5123 with an access code: 57330611. The replay will be available for two weeks by dialing (706) 645-9291 with the replay passcode: 57330611. The conference call also will be broadcast live over the Internet at http://www.gsig.com/.

About GSI Group Inc.

GSI Group Inc. supplies precision technology to the global medical, electronics, and industrial markets and semiconductor systems. GSI Group Inc.'s common shares are listed on Nasdaq (GSIG).

Forward Looking Information

Certain statements in this news release may constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the United States Securities Act of 1933 and Section 21E of the United States Securities Exchange Act of 1934. These forward-looking statements include, but are not limited to, anticipated financial performance; management's plans and objectives for achieving more stable revenues and predictable growth, including as a result of the pending acquisition of Excel Technology (Excel); business prospects; industry trends; and market conditions. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "objective" and other similar expressions. Such statements are based on our management's beliefs and assumptions and on information currently available to our management and are subject to risks, uncertainties and changes in condition, significance, value and effect. Some of the risks and uncertainties that may cause actual results and events to differ materially from those set forth in the forward- looking statements include the following: our management's ability to maintain or accurately forecast revenue growth or to anticipate and accurately forecast a decline in revenue from any of our products or services; our ability to compete in an intensely competitive market; its ability to develop and introduce new products or enhancements on schedule and that respond to customer requirements and rapid technological change; new product introductions and enhancements by competitors; our ability to select and implement appropriate business models; plans and strategies and efforts to execute on them; our ability to identify, hire, train, motivate, and retain highly qualified management/other key personnel and its ability to manage changes and transitions in management/other key personnel; the impact of global economic conditions on GSI's business; unauthorized use or misappropriation of its intellectual property; as well as the risk factors discussed previously and in periodic reports filed by us with the SEC or with securities regulatory authorities in Canada.

In addition, to the extent the forward-looking statements assume, or are based upon, successful completion of the pending acquisition of Excel, such statements also involve risks and uncertainties that may cause actual results and events to differ materially from those set forth in the statements, including the following: (a) the occurrence of any event, change or other circumstance that could give rise to the termination of our definitive merger agreement with Excel Technology, Inc. (Excel), including our external financing being unavailable due to the non-satisfaction of the conditions contained in the financing agreements or the failure of the investors party thereto to fulfill their obligations thereunder; the inability to complete the acquisition of Excel due to the failure to receive required regulatory or other approvals or to satisfy other conditions to the transaction; the risk that the proposed acquisition disrupts current plans and operations; the risk that anticipated synergies and opportunities as a result of the acquisition will not be realized; difficulties or unanticipated expenses in connection with integrating Excel into GSI; the risk that the acquisition does not perform as planned, including the risk that we or Excel will not achieve revenue projections; the risk that the substantial indebtedness we will incur to finance the acquisition will materially and adversely affect our business by, among other things, requiring us to apply all or substantially all of our free cash flow to service the indebtedness and/or to dispose of assets to obtain cash for other permitted uses; the inability to retain key employees of either company; and changes in either company's business between now and the closing of the acquisition.

Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Management and GSI disclaim any obligation to publicly update or revise any such statement to reflect any change in its expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results and events will differ from those contained in the forward-looking statements.

CONTACT: Ray Ruddy of GSI Group Inc., +1-781-266-5873 GSI GROUP INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (U.S. GAAP and in thousands of U.S. dollars, except share amounts) June 27, December 31, 2008 2007 ASSETS Current Assets Cash and cash equivalents $183,271 $171,714 Accounts receivable, less allowance of $374 (December 31, 2007 - $372) 57,945 73,527 Income taxes receivable 13,594 12,241 Inventories 62,640 65,522 Deferred tax assets 8,264 8,249 Other current assets 8,830 7,394 Total current assets 334,544 338,647 Property, plant and equipment, net of accumulated depreciation of $24,877 (December 31, 2007 - $32,263) 42,401 30,817 Deferred tax assets 9,904 9,887 Other assets 821 713 Long-term investments 997 854 Intangible assets, net of amortization of $9,713 (December 31, 2007 - $8,603) 11,722 12,817 Patents and acquired technology, net of amortization of $42,307 (December 31, 2007 - $40,122) 17,881 20,054 Goodwill 26,421 26,421 Total Assets $444,691 $440,210 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $15,683 $17,504 Income taxes payable 1,365 1,411 Accrued compensation and benefits 8,848 10,369 Deferred revenue 10,629 9,949 Deferred tax liabilities 290 286 Other accrued expenses 12,435 9,353 Total current liabilities 49,250 48,872 Deferred compensation 608 676 Deferred tax liabilities 7,589 7,589 Accrued long term restructuring 1,651 938 Income taxes payable 3,261 3,537 Accrued pension liability 4,598 4,481 Deferred rent 2,938 - Total liabilities 69,895 66,093 Commitments and contingencies Stockholders' equity Common shares, no par value; Authorized shares: unlimited; Issued and outstanding: 41,607,460 (December 31, 2007-42,161,592) 304,569 310,970 Additional paid-in capital 9,712 8,245 Retained earnings 51,530 48,329 Accumulated other comprehensive income 8,985 6,573 Total stockholders' equity 374,796 374,117 Total Liabilities and Stockholders' Equity $444,691 $440,210 GSI GROUP INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (U.S. GAAP and in thousands of U.S. dollars, except per share amounts) Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, 2008 2007 2008 2007 Sales $66,010 $73,117 $137,690 $147,321 Cost of goods sold 40,623 43,362 84,976 88,131 Gross profit 25,387 29,755 52,714 59,190 Operating expenses: Research and development and engineering 7,475 7,729 15,350 15,386 Selling, general, administrative and other 14,700 14,925 31,017 28,866 Amortization of purchased intangibles 1,601 1,690 3,280 3,419 Restructuring expense (net of benefit) 1,501 1,576 1,184 3,928 Total operating expenses 25,277 25,920 50,831 51,599 Income from operations 110 3,835 1,883 7,591 Other income 21 47 143 94 Interest income 1,002 1,667 2,167 3,214 Interest expense (18) (24) (36) (81) Foreign exchange transaction gains (losses) 133 (62) 192 (434) Income before income taxes 1,248 5,463 4,349 10,384 Income tax provision (154) (2,140) (1,148) (3,861) Net income $1,094 $3,323 $3,201 $6,523 Net income per common share: Basic $0.03 $0.08 $0.08 $0.15 Diluted $0.03 $0.08 $0.08 $0.15 Weighted average common shares outstanding (000's) 41,736 42,427 41,831 42,204 Weighted average common shares outstanding for diluted net income per common share (000's) 41,853 42,678 42,112 42,409 GSI GROUP INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (U.S. GAAP and in thousands of U.S. dollars) Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, 2008 2007 2008 2007 Cash flows from operating activities: Net income for the year $1,094 $3,323 $3,201 $6,523 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,387 4,202 7,254 8,326 Stock-based compensation 651 693 1,433 1,022 Deferred income taxes 24 (214) (29) (199) Earnings from equity investment (37) (47) (143) (94) Unrealized gain on derivatives (195) (460) (181) (407) Gain on disposal of assets (1,561) - (1,561) - Non-cash restructuring charges 558 - 558 - Changes in current assets and liabilities: Accounts receivable 15,413 (11,143) 15,970 (16,250) Inventories 3,823 (680) 2,953 849 Other current assets (1,761) (173) (1,471) 5,837 Accounts payable, accruals and taxes (receivable) payable 934 10,642 (1,726) 8,469 Cash provided by operating activities 22,330 6,143 26,258 14,076 Cash flows used in investing activities: Acquisition of business - (3,006) - (3,006) Proceeds from the sale of property and equipment 3,211 - 3,211 - Additions to property, plant and equipment (12,475) (1,495) (16,677) (3,293) (Increase) decrease in other assets 230 - (108) - Increase in other liabilities 3,149 11 3,650 27 Cash used in investing activities (5,885) (4,490) (9,924) (6,272) Cash flows provided by (used in) financing activities: Purchase of treasury shares (3,326) (286) (6,439) (760) Excess Tax benefit of stock options 15 204 23 258 Issue of share capital (net of issue costs) 20 3,095 38 6,328 Cash provided by (used in) financing activities (3,291) 3,013 (6,378) 5,826 Effect of exchange rates on cash and cash equivalents (535) 191 1,601 348 Increase in cash and cash equivalents 12,619 4,857 11,557 13,978 Cash and cash equivalents, beginning of period 170,652 147,436 171,714 138,315 Cash and cash equivalents, end of period $183,271 $152,293 $183,271 $152,293 GSI GROUP INC. Consolidated Analysis By Segment (unaudited) (In thousands of U.S. dollars) Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, 2008 2007 2008 2007 Sales: Precision Technology Business $45,488 $46,921 $89,523 $90,545 Semiconductor Systems Business 20,989 27,110 49,756 58,968 Intersegment sales elimination(1) (467) (914) (1,589) (2,192) Total $66,010 $73,117 $137,690 $147,321 Gross profit %: Precision Technology Business 39.0% 38.4% 38.7% 37.2% Semiconductor Systems Business 37.0% 42.4% 36.4% 43.1% Intersegment sales elimination 20.0% (22.2)% 2.4% (5.1)% Total 38.5% 40.7% 38.3% 40.2% (1) Sales of Precision Technology products to Semiconductor segment Consolidated Sales Analysis By Geographic Region (unaudited) Three Months Ended June 27, 2008 June 29, 2007 Sales % of Total Sales % of Total (In millions) (In millions) North America $27.4 41% $19.2 26% Latin and South America 0.1 - 0.1 - Europe (EMEA) 11.0 17 12.6 17 Japan 12.5 19 15.7 22 Asia-Pacific, other 15.0 23 25.5 35 Total $66.0 100% $73.1 100%

GSI Group Inc.

CONTACT: Ray Ruddy of GSI Group Inc., +1-781-266-5873

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

Company News On-Call: http://www.prnewswire.com/comp/107189.html

CSC Recognized by U.S. Department of the Treasury as 'Large Business of the Year'

FALLS CHURCH, Va., July 31 /PRNewswire-FirstCall/ -- CSC announced today that the U.S. Department of the Treasury's Office of Small and Disadvantaged Business Utilization (OSDBU) presented the company with the 2007 "Large Business of the Year" award. CSC was officially recognized for its commitment to supplier diversity at the annual OSDBU awards ceremony on July 16, 2008.

"It is our pleasure to congratulate CSC as the 2007 winner for the 'Large Business of the Year' award," said Teresa L.G. Lewis, director of the Department of the Treasury's Office of Small and Disadvantaged Business Utilization. "CSC's outstanding contributions and service to the Department of the Treasury is greatly appreciated."

CSC was commended for meeting its subcontracting goals for small business, small disadvantaged business and women-owned business. The OSDBU also thanked CSC for its support of the Department of the Treasury's Prime Vendor Outreach Sessions in which CSC employees shared their expertise and counseled small businesses about subcontracting opportunities.

"CSC is committed to supporting disadvantaged businesses, increasing supplier diversity and broadening small business owners' presence in the government marketplace," said James W. Sheaffer, president of CSC's North American Public Sector line of business. "CSC is honored to be recognized by the Department of the Treasury for our commitment to small businesses and to large businesses owned by women, minorities, veterans and others with diverse backgrounds."

As part of CSC's commitment to supplier diversity, the company is active within the Department of Defense (DoD) Mentor Protege program, providing companies with developmental assistance, training in business and technical areas, marketing support and strategic business planning. CSC also supports seven protege companies under several agency programs, including the DoD, NASA, the U.S. Department of Homeland Security, the Environmental Protection Agency and the Small Business Administration.

The OSDBU assists, counsels and advises small businesses of all types (small businesses, small disadvantaged businesses, women-owned small businesses, veteran owned small businesses, service disabled veteran-owned small businesses and small businesses located in historically underutilized business zones) on procedures for contracting with the Treasury.

About CSC

CSC is a global leader in providing technology-enabled solutions and services through three primary lines of business. These include Business Solutions & Services, Global Outsourcing Services and the North American Public Sector. CSC's advanced capabilities include systems design and integration, information technology and business process outsourcing, applications software development, Web and application hosting, mission support and management consulting. Headquartered in Falls Church, Va., CSC has approximately 90,000 employees and reported revenue of $16.5 billion for the 12 months ended March 28, 2008. For more information, visit the company's Web site at http://www.csc.com/.

CSC

CONTACT: Michelle Herd, Senior Manager, Communications, North American
Public Sector, +1-703-205-6186, mherd@csc.com, or Mike Dickerson, Director,
Media Relations, Corporate, +1-310-615-1647, mdickers@csc.com, or Bill Lackey,
Director, Investor Relations, Corporate, +1-310-615-1700, blackey3@csc.com,
all of CSC

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

Longtop to Develop Anti-Money Laundering System for a Joint Stock Bank in China

Project Marks the Beginning of Cooperation Between Longtop and the Bank

XIAMEN, China, July 31 /Xinhua-PRNewswire/ -- Longtop Financial Technologies Limited ("Longtop") , a leading software developer and solutions provider targeting the financial services industry in China, today announced that it has been informed by one of China's Joint Stock banks to provide a customized software solution for the bank's anti-money laundering system. The project marks the beginning of the cooperation between Longtop and this Bank.

Under the terms of the agreement, Longtop will develop at the bank's headquarter level a centralized anti-money laundering system to automate the analysis, screening and reporting of transactions. The system is necessary to meet the Chinese banking regulatory requirement that financial institutions have in place a sound anti-money laundering internal control system.

"We are very pleased to welcome this bank as our new client and continue the growth trend in expanding our customer base, having added a record of sixteen new clients during our last fiscal year," comments Weizhou Lian, Chief Executive Officer of Longtop. "Longtop is an established leader for anti-money laundering solutions in China's financial IT solutions market with a broad customer base and leading market share. This project further strengthens our market leadership in this mission-critical area of protecting financial institutions and society at large from criminal activities."

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement.

Factors that could cause actual results to differ include the effectiveness, profitability, and marketability of the company's solutions; the Company's limited operating history; its reliance on a limited number of customers that continue to account for a high percentage of the Company's revenues; risk of payment failure by any of its large customers, which could significantly harm the Company's cash flows and profitability; the ability of the Company to operate effectively as a public company; future shortage or availability of the supply of employees; general economic and business conditions; the volatility of the company's operating results and financial condition; the company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the company's filings with the Securities and Exchange Commission.) Further information regarding these and other risks is included in Longtop's annual report on Form 20-F for the fiscal year ended March 31, 2008, and other filings with the Securities and Exchange Commission.

About Longtop Financial Technologies Limited

Longtop is a leading software development and solutions provider targeting the financial services industry in China. Longtop develops and delivers a comprehensive range of software applications and solutions with a focus on meeting the rapidly growing IT needs of the financial services institutions in China. Longtop has five solution delivery centers, three research centers and thirty nine service centers located in 20 provinces throughout China. Longtop was founded in 1996 by Xiaogong Jia, Chairman and Weizhou Lian, CEO, as a system integration company focusing on the financial services industry in China and made the transition to a software and solutions provider in 2001. For more information, please visit: http://www.longtop.com/ .

For more information, please contact: Longtop Financial Technologies Limited Charles Zhang or Huiying Yang Phone: +86-10-8421-7758 Email: ir@longtop.com IR Inside BV Caroline Straathof Phone: +31-6-5462-4301 Email: info@irinside.com

Longtop Financial Technologies Limited

CONTACT: Longtop Financial Technologies Limited - Charles Zhang or
Huiying Yang, +86-10-8421-7758, or ir@longtop.com; IR Inside BV - Caroline
Straathof, +31-6-5462-4301, or info@irinside.com

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

AT&T Launches Ultrafast 3G Wireless Service in Fort Myers, Naples, Sarasota and BradentonNation's Fastest 3G Network Allows for Advanced Mobile Services

TAMPA, Fla., July 31 /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 Southwest Florida, Bradenton and Sarasota.

Today, AT&T Inc. announced the launch of the company's 3G wireless network in Fort Myers, Naples, Sarasota and Bradenton, 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.

With the launch of the AT&T 3G network in Southwest Florida and Sarasota and Bradenton, the company now provides 3G coverage from Naples to Hillsborough County. AT&T rolled out 3G service in Tampa and St. Petersburg in 2006. The AT&T 3G network also is available in South Florida (from Key West to Vero Beach), Melbourne, Cape Canaveral, Titusville, Orlando, Lakeland, Gainesville, Daytona Beach, Jacksonville and Tallahassee.

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 Nokia 6555 handset to the iPhone 3G smartphone -- gives AT&T customers in Fort Myers, Naples, Sarasota and Bradenton the best in mobile communications.

"AT&T 3G delivers an 'in-building' experience when customers are on the move," said Rudy Hermond, vice president and general manager for AT&T wireless operations in West, Central and North Florida. "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.

Since 2005, AT&T has invested more than $1 billion in Florida to expand and enhance its wireless network, including a planned nearly $225 million investment in 2008. With the addition of the Fort Myers, Naples, Sarasota and Bradenton markets, 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.

Other plans for 2008 include the completion of the nation's first High Speed Uplink Packet Access (HSUPA)-enabled network by the middle of the year. 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 3G network in Fort Myers, Naples, Sarasota and Bradenton 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.

"Whether it's surfing the wireless web or using next generation technologies such as high speed broadband, a top-notch customer experience starts with the network," said Marshall Criser III, president of AT&T Florida. "Our ongoing investment in Florida continues our commitment to offer advanced services and ensure high levels of reliability for our customers."

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.

(C) 2008 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.

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: Kelly Starling of AT&T Inc., +1-561-775-4259, mobile,
+1-561-301-1414, kelly.starling@att.com

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

SRS Labs Celebrates 15 Years of Leadership In Audio- A decade and a half of developing innovative audio technologies that maximize the audio performance in products from TVs to mobile devices- Number of products shipped worldwide featuring SRS technologies surpasses the one billion mark

SANTA ANA, Calif., July 31 /PRNewswire-FirstCall/ -- SRS Labs, Inc. , the industry leader in surround sound, audio and voice technologies, celebrates 15 years of innovation in developing and licensing audio enrichment technologies to the world's leading consumer electronics manufacturers. The company's extensive portfolio of patented technologies maximize the audio performance of products such as televisions, mobile phones, PCs, portable media devices and automotive entertainment.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080731/LATH027LOGO)

SRS Labs was formed in 1993 with the purchase of the SRS 3D(R) (Sound Retrieval System) audio technology from Hughes Aircraft. The company's first licensing partners were Sony and RCA, both implementing SRS 3D in TVs. Since then, the company's list of licensees number in the hundreds, including leading consumer electronics manufacturers such as Panasonic, LG, Samsung, Sharp, Sony, VIZIO and many other world renowned brands. To date, SRS audio technologies have shipped in over 1 billion products and in recent years, SRS Labs has managed to systematically penetrate the home theater category with phenomenal success in televisions with over 33% worldwide market share in flat panel HDTVs. In addition, according to DisplaySearch and SRS royalty reports, 9 of the top 10 flat panel TV brands worldwide (30" and larger) feature one or more SRS audio technologies.

"At LG Electronics, a primary goal for our award-winning HDTVs is to deliver an unparalleled entertainment experience. Given the importance of delivering great sound along with great video, selecting SRS Labs as an expert audio partner was a natural choice," said KI Kwon, president, consumer electronics, LG Electronics USA, Inc. "Over the years, we've worked side-by- side with SRS engineers to custom-tune and optimize our products' sound quality for a truly engaging entertainment experience."

SRS Labs' heritage is built upon developing audio technologies that maximize a product's audio performance regardless of the delivery infrastructure, the limitations of the device or even the listening environment. Over the years, the company's engineering team has worked hand- in-hand with its partners to optimize a product's performance, essentially overcoming limitations caused by inherent design constraints such as small or tight speaker enclosures in flat panel TVs and tiny drivers in mobile phones. To further streamline the process of deploying its audio solutions, SRS Labs has developed partnerships with over 70 platform providers, offering the industries' most extensive platform coverage. That deep penetration into the integrated chipsets allows manufacturers to use their preferred DSP (digital signal processing) chip when developing products incorporating SRS technologies.

"SRS Labs is the leading provider of advanced of the widest portfolio of audio technologies and, over the past 12 years, they have been an important partner in our efforts to bring an optimized audio platform to the consumer electronics and computer industries," said Mr. Seshimoto from NJRC. "By working closely with SRS Labs and implementing their feature-rich technologies into over 30 platforms, we've been able to offer an easier and more flexible path for SOC (Silicon On Chip) designers looking to ship products where audio performance is of utmost importance to the market quickly."

SRS Labs prides itself on developing innovative technologies that not only meet the needs of its customers, but also anticipate the market trends and the resultant needs of next generation products. SRS' portfolio of audio enrichment, voice processing and surround sound technologies target five different product markets: home theater, PCs, mobile phones, portable media devices, and automotive entertainment. And in 2006, Forward Concepts reported SRS Labs as the world's #1 audio post processing enhancement supplier, based on revenue.

"Upon joining SRS Labs, I was immediately impressed by the company's portfolio of audio IPs, most notably by the company's namesake technology, SRS - developed by the world-renowned scientist, Arnold Klayman - which had the unique ability to retrieve and restore subtle audio cues lost during compression. It was not difficult to envision the company and its technologies expanding globally, bringing great sound to a broad range of consumer electronics products," said Tom Yuen, chairman and CEO, SRS Labs. Tom Yuen, one of the founders of AST Research, an innovative PC manufacturer in the '80s, joined SRS Labs as chairman and CEO in 1994. "I'm very proud of all that we've accomplished over the years. We've had the opportunity to partner with world's leading manufactures and our audio technologies have been featured in well over 1 billion products worldwide, including being the only featured audio enhancement and partner link in the Windows Media Player since 2000." Yuen continues, "I look forward to the future as we continue to work closely with our partners and licensees and develop new audio technologies in anticipation of market trends. Through a combination of continued innovation and brand building, I foresee SRS Labs becoming the recognized world standard for excellent sound."

To commemorate the company's 15 years of audio innovation and leadership, SRS Labs is giving away a prize a day for 15 days! The sweepstakes, which includes sponsorship participation from several partners, including Altec Lansing, Bluetrek, Corel, Intellitouch, iLive, iRiver, Logitech, Memorex, Motorola and others, will start at noon on August 1 and runs through August 15, 2008. To enter for your chance to win a great product featuring SRS sound enrichment technologies, please visit http://www.srslabs.com/anniversary.

About SRS Labs, Inc.

Founded in 1993, SRS Labs is the industry leader in audio signal processing for consumer electronics. Beginning with the audio technologies originally developed at Hughes Aircraft, SRS Labs holds over 150 worldwide patents and is recognized by the industry as the foremost authority in research and application of human auditory principals. Through partnerships with leading global CE companies, semiconductor manufacturers and software partners, SRS audio, surround sound and voice processing technologies have been included in over one billion electronic products sold worldwide including HDTVs, mobile phones, portable media devices, PCs and automotive entertainment. In fact, SRS Labs is the de-facto standard of HDTV audio processing with nine of the top ten name brand flat panel TVs featuring SRS technology. Additionally, SRS Labs surround sound solutions provide the professional broadcast and recording industries with high-performance production, back-haul, storage, and transmission capability. SRS Labs supports manufacturers worldwide with offices in the US, China, Europe, Japan, Korea and Taiwan. For more information, visit http://www.srslabs.com/.

Except for historical information contained in this release, statements in this release, including those by Mr. Yuen, may constitute forward-looking statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events that are based on management's belief, as well as assumptions made by, and information currently available to, management. While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that the Company's goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect the Company's actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of the Company. Some of these factors include the acceptance of new SRS Labs' products and technologies, the impact of competitive products and pricing, the timely development and release of technologies by the Company, general business and economic conditions, especially in Asia, and other factors detailed in the Company's Form 10-K and other periodic reports filed with the SEC. SRS Labs specifically disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

SRS Labs, Inc. Contact: Press Contact: Cyndee Pelino, Sr. Marketing Manager Jim Noyd, Noyd Communications Inc. 949-442-5518 310-374-8100 cyndeep@srslabs.com jim.noyd@noydcom.com

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20080731/LATH027LOGO
PRN Photo Desk, photodesk@prnewswire.com SRS Labs, Inc.

CONTACT: Cyndee Pelino, Sr. Marketing Manager of SRS Labs, Inc.,
+1-949-442-5518, cyndeep@srslabs.com; or Jim Noyd of Noyd Communications Inc.,
+1-310-374-8100, jim.noyd@noydcom.com

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

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