Borealis Selects Autonomy to Underpin Knowledge Management StrategyLeading Plastics Provider Chooses IDOL to Index More Than 4 Million Documents on its Global Corporate Intranet

CAMBRIDGE, England and SAN FRANCISCO, August 13 /PRNewswire-FirstCall/ -- Autonomy Corporation plc , a global leader in infrastructure software for the enterprise, today announced that Borealis, a leading provider of innovative, value creating plastics solutions to the infrastructure, automotive and advanced packaging markets, has selected Autonomy's unique Meaning-based technology to power its corporate Intranet. Autonomy's Intelligent Data Operating Layer (IDOL) will index more than 4 million documents in 10 languages, enabling over 5,000 Borealis employees to benefit from instant access to business critical information, boosting efficiency and avoiding duplication of effort.

"IDOL quickly demonstrated its value during the Proof of Concept when we experienced a machine problem in one of our factories," commented Guido Bos, IT professional at Borealis' Knowledge Sharing Team. "IDOL's Meaning-based search and retrieval allowed our engineers to find best practice to solve the problem almost immediately and avoid being non-operational for longer than absolutely necessary. After this incident there was no debate about the value of IDOL as we had saved both time and money," added Mr Bos.

Autonomy's Meaning-based technology was selected after a competitive procurement due to its unparalleled scalability, unique conceptual retrieval and mapped security model; a highly configurable, accurate and fast method for respecting third party security entitlements. Unlike legacy approaches, Autonomy's patented Meaning-based technology can derive meaning from content from over 1,000 data types and virtually all languages thus overcoming traditional barriers to data retrieval and knowledge sharing.

"We selected Autonomy from a long list of technology vendors as the only solution able to meet all of our business requirements," concluded Mr. Bos.

"Sharing business critical information as quickly and efficiently as possible is crucial to a company's success," commented Victor Cohen, General Manager Northern Europe, Autonomy. "We are delighted that Borealis has selected Autonomy to play such a key part in its information management strategy."

For more information on Autonomy's pan-enterprise platform, please visit http://www.autonomy.com/enterprise-search.

About Autonomy

Autonomy Corporation plc is a global leader in infrastructure software for the enterprise and is spearheading the meaning-based computing movement. Autonomy's technology allows computers to harness the full richness of human information, forming a conceptual and contextual understanding of any piece of electronic data including unstructured information, be it text, email, voice or video. Autonomy's software powers the full spectrum of mission-critical enterprise applications including information access technology, pan-enterprise search, information governance, end-to-end eDiscovery and archiving, records management, business process management, customer interaction solutions, and video and audio analysis, and is recognized by industry analysts as the clear leader in enterprise search.

Autonomy's customer base comprises of more than 17,000 global companies and organizations including: 3, ABN AMRO, AOL, BAE Systems, BBC, Bloomberg, Boeing, Citigroup, Coca Cola, Daimler Chrysler, Deutsche Bank, Ericsson, Ford, GlaxoSmithKline, Lloyd TSB, NASA, Nestle, the New York Stock Exchange, Reuters, Shell, T-Mobile, the U.S. Department of Energy, the U.S. Department of Homeland Security and the U.S. Securities and Exchange Commission. More than 350 companies OEM Autonomy technology, including BEA, Citrix, EDS, H-P, Novell, Oracle, Sybase and TIBCO, and the company has over 400 VARs and Systems Integrators. The company has offices worldwide.

Autonomy and the Autonomy logo are registered trademarks or trademarks of Autonomy Corporation plc. All other trademarks are the property of their respective owners.

Autonomy Editorial Contacts: Assia Svinarova Autonomy (UK) +44-1223-448000 assias@autonomy.com Tania Kempf Cohn & Wolfe (US) +1-650-281-7556 Tania_Kempf@sfo.cohnwolfe.com Edward Bridges Financial Dynamics (UK) +44-207-831-3113 edward.bridges@fd.com David Vindel The Red Consultancy + 44-207-025-6529 david.vindel@redconsultancy.com

Autonomy Corporation plc

CONTACT: Autonomy Editorial Contacts: Assia Svinarova Autonomy (UK)
+44-1223-448000 assias@autonomy.com; Tania Kempf Cohn & Wolfe (US)
+1-650-281-7556 Tania_Kempf@sfo.cohnwolfe.com; Edward Bridges Financial
Dynamics (UK) +44-207-831-3113 edward.bridges@fd.com; David Vindel The Red
Consultancy + 44-207-025-6529 david.vindel@redconsultancy.com

Dow Jones Expands Breadth of Global ContentDow Jones SalesWorks and Companies & Executives expand on a global scale with more than 15 million companies world wide included in its databases

NEW YORK, Aug. 13 /PRNewswire/ -- Dow Jones & Company today announced comprehensive enhancements and expanded global content focusing on companies of all sizes in its SalesWorks and Company & Executives products. The newest enhancements feature additional company profiles on a global level, expanded Web content and enhanced alerts with company specific information.

The enhancements provide users with additional relevant information by boosting the global content offering, particularly outside of the U.S. An additional three million records have been added outside of the U.S. on top of the 10 million U.S. companies that were added in May, bringing Dow Jones SalesWorks and Companies & Executives databases to more than 15 million companies. The increase in company records assists users selling to and researching more companies worldwide.

Sales representatives and business professionals need to be up to date with industry news to be successful. Being able to quickly spot and then drill down to companies mentioned in articles gives a user added intelligence to act on an opportunity, arming them with new ideas, while saving time often wasted with numerous searches for information. Enhanced alerts now include a summary of the companies mentioned in the articles. This unique extraction technology enables each company mentioned to be linked to a detailed company profile, helping users to effectively and efficiently research a company.

Other enhancements focus on helping sales professionals obtain a broader perspective on news impacting their territory through Web content. This content is now available within the Company Radar functionality, a high- performance feature within Dow Jones SalesWorks that allows sales and marketing professionals to uncover and focus on the right opportunities through precision news filters. The addition of Web content to Company Radar extends user ability to monitor business changes signaling an opportunity or threat from conversations on a blog to news coverage of smaller companies. The enhancement includes 12,000 editorially selected sites ranging from blogs to news outlets.

Additionally, Dow Jones's Intelligent Indexing is applied to the Web content, ensuring results are highly targeted, leading to more relevant and timely alerts. This information provides users with the most comprehensive news coverage of their target companies and ensures no opportunity is missed.

Further enhancements include: -- Improved industry hierarchy navigation;

-- Detailed interpretation of financial, economic and political developments and news analysis in global emerging markets from Business Monitor International;

-- Expanded executive data including executive compensation.

"Dow Jones prides itself on consistently providing information that creates true business value," said Tom Aley, Senior Vice President and Managing Director, Business Relationship & Intelligence, Dow Jones. "The strategic decision behind our continued expansion of content is now coming to life, with enhancements that are making a significant impact in the daily activities of our global customers. And this is just the tip of the iceberg. There will be many more developments and enhancements to come."

To learn more about Dow Jones products, visit http://solutions.dowjones.com/generateinc.

ABOUT DOW JONES

Dow Jones & Company (http://www.dowjones.com/) is a News Corporation company (NYSE: NWS, NWS.A; ASX: NWS, NWSLV; http://www.newscorp.com/). Dow Jones is a leading provider of global business news and information services. Its Consumer Media Group publishes The Wall Street Journal, Barron's, MarketWatch and the Far Eastern Economic Review. Its Enterprise Media Group includes Dow Jones Newswires, Dow Jones Factiva, Dow Jones Client Solutions, Dow Jones Indexes and Dow Jones Financial Information Services. Its Local Media Group operates community-based information franchises. Dow Jones owns 50% of SmartMoney and 33% of STOXX Ltd. and provides news content to radio stations in the U.S.

ABOUT DOW JONES BUSINESS & RELATIONSHIP INTELLIGENCE

Dow Jones Business & Relationship Intelligence provides leading customer intelligence solutions that enable organizations to capitalize on opportunities and build profitable business relationships. The combination of next generation technology with actionable information powers the performance of sales and research professionals plus media organizations.

Dow Jones Business & Relationship Intelligence's award-winning customer intelligence solutions include information on millions of companies and executives and world-class news, plus unique triggering, relationship mapping, research and prospecting tools. Integrating these tools and content behind your firewall provides a single, complete view of a customer further increasing your effectiveness.

Dow Jones & Company

CONTACT: Adrienne MacWhannell of Dow Jones, +1-212-659-2486,
Adrienne.MacWhannell@dowjones.com; or Alexis Gordon of PAN Communications for
Dow Jones, +1-978-474-1900, DowJones@pancomm.com

Web site: http://www.dowjones.com/
http://www.newscorp.com/

LDK Signs Five-Year Wafer Supply Agreement with XL Telecom & Energy Limited

XINYU CITY, China and SUNNYVALE, Calif., Aug. 13 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd ("LDK Solar"; NYSE: LDK), a leading manufacturer of solar wafers, today announced that it has signed a five-year contract to supply multicrystalline solar wafers to India-based XL Telecom & Energy Limited.

Under the terms of the agreement, LDK Solar will deliver approximately 300 MW of multicrystalline silicon solar wafers to XL Telecom & Energy Limited over a five-year period, commencing in the first quarter of 2009 and extending through 2013. XL Telecom & Energy Limited will make a down payment representing a portion of the contract value to LDK Solar.

"We are pleased to enter into this long-term supply contract with XL Telecom & Energy Limited, a leading Solar Export company," stated Mr. Xiaofeng Peng, Chairman and CEO of LDK Solar. "With this most recent supply contract we are looking forward to building a relationship with XL Telecom & Energy Limited as well as expanding our presence in India."

"As we work to achieve our capacity expansion and growth goals to meet the increasing demands of the global photovoltaic market in the coming years, we are very pleased to have LDK Solar as a long-term partner and look forward to their supply, in order to secure an important part of our wafer needs," commented Dinesh Kumar, Managing Director and CEO of XL Telecom & Energy Limited.

About LDK Solar

LDK Solar Co., Ltd. is a leading manufacturer of solar wafers, which are the principal raw material used to produce solar cells. LDK Solar sells wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, LDK Solar provides wafer processing services to solar cell and module manufacturers. LDK Solar's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China. Its office in the United States is located in Sunnyvale, California.

About XL Telecom & Energy Limited

XL Telecom & Energy Limited, a NSE and BSE listed Company with its headquarters out of Hyderabad, India, and is a leading Solar Exporter. XL is in the process of establishing its 120 MW Solar Cell manufacturing facility in Rajiv Gandhi Nano Technology Park SEZ, which is scheduled to commence its operations in Sep/Oct 2008. XL Telecom and Energy is a Rs.7 Billion Revenues company with its focus in Solar, Ethanol and Telecom segments and was established in 1985.

Safe Harbor/Forward Looking Statements

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, LDK Solar's ability to raise additional capital to finance its activities; the effectiveness, profitability, and marketability of its products; the future trading of its securities; the ability of LDK Solar to operate as a public company; the period of time for which its current liquidity will enable LDK Solar to fund its operations; its ability to protect its proprietary information; general economic and business conditions; the volatility of its operating results and financial condition; its ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in LDK Solar's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about LDK Solar and the industry.

LDK Solar undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although LDK Solar believes that the expectations expressed in these forward-looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

LDK Solar Co., Ltd

CONTACT: Jack Lai, Executive VP and CFO of LDK Solar Co., Ltd.,
+1-408-245-8801, IR@ldksolar.com; or Lisa Laukkanen of The Blueshirt Group,
+1-415-217-4967, lisa@blueshirtgroup.com, for LDK Solar

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

Entrust SSLVPN Certificates More Readily Available to Cisco CustomersCisco ASA SSLVPN customers provided free, limited-time evaluation of Entrust SSLVPN certificates

DALLAS, Aug. 13 /PRNewswire-FirstCall/ -- In order to more quickly implement a virtual private network (VPN) solution, Entrust, Inc. now provides Cisco customers an easy-to-use method for obtaining and deploying SSLVPN certificates, a necessary requirement to use SSLVPN applications.

Cisco ASA SSLVPN customers will have a free, time-limited evaluation of Entrust Advantage SSLCertificates. The straightforward Cisco user interface lets customers obtain the necessary SSLVPN certificates to more quickly secure the VPN connection, accelerating VPN deployment. Once the free, three-month trial expires, Entrust Advantage SSLCertificates can be purchased for one-, two- or three-year terms at a discounted price. Entrust Advantage SSLCertificates enable SSLencryption and authentication to secure Web servers and devices, as well as SSLVPN environments. Protected by 128- or 256-bit encryption, these certificates are trusted by more than 99.9 percent of all browsers.

About Entrust

Entrust [NASDAQ: ENTU] secures digital identities and information for consumers, enterprises and governments in more than 1,700 organizations spanning 60 countries. Leveraging a layered security approach to address growing risks, Entrust solutions help secure the most common digital identity and information protection pain points in an organization. These include SSL, authentication, fraud detection, shared data protection and e-mail security. For information, call 888-690-2424, e-mail entrust@entrust.com or visit http://www.entrust.com/.

Entrust is a registered trademark of Entrust, Inc. in the United States and certain other countries. In Canada, Entrust is a registered trademark of Entrust Limited. All Entrust product names are trademarks or registered trademarks of Entrust, Inc. or Entrust Limited. All other company and product names are trademarks or registered trademarks of their respective owners.

Photo: http://www.newscom.com/cgi-bin/prnh/20060720/NYTH074LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Entrust

CONTACT: Brooke Hamilton, Media Relations of Entrust, +1-972-713-5915,
brooke.hamilton@entrust.com

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

Sapiens Announces Q2 2008 ResultsCompany Reports Seventh Consecutive Quarter of Operating Profit;Approximately $2.4 Million of Cash Flow From Operations

CARY, North Carolina, August 13 /PRNewswire-FirstCall/ -- Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a member of the Emblaze/Formula Group , today announced its results of operations for the second quarter of 2008.

Highlights for Q2 2008 and H1 2008 - Revenue in the second quarter of 2008 reached $11 million, a 3% increase from the second quarter of 2007. - The second quarter of 2008 shows seventh consecutive quarter of operating profit with $579,000, a significant increase of 257% from the second quarter of 2007. - Cash flow from operations in the second quarter of 2008 is approximately $2.4 million. - Operational profit for the first six months of the year is $ 1 million. - During the first six months of the year, the company generated $2.8 million in cash flow from operations, reaching total cash equivalents and short term investments on hand of $12 million. - Sapiens is enjoying an increasing pipeline of potential deals with major customers' world wide. U.S. GAAP - Operating profit of $579,000, a 257% increase from the second quarter of 2007 and a 37% increase from the first quarter of 2008. Non-GAAP - Operating profit of $689,000, a turn around from the operating loss of $57,000 in the second quarter of 2007, and a 32% increase from $522,000 in the first quarter of 2007.

U.S. GAAP results include amortization of capitalized software developments, capitalization of software development costs, and stock-based compensation expenses.

Reconciliation between U.S. GAAP and Non-GAAP results is summarized in the following table. For a complete reconciliation, please refer to the tables at the end of this release.

U.S. Dollars in thousands, except per share amounts For the three months For the six months ended ended U.S GAAP basis 06/30/2008 06/30/2007 06/30/2008 06/30/2007 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues 11,012 10,680 21,503 21,687 Operating 579 162 1,002 311 profit Net loss (526) (715) (1,726) (1,120) Basic and 0.02 0.05 0.08 0.07 diluted loss per share NonGAAP Revenues 11,012 10,680 21,503 21,687 Operating 689 (57) 1,211 (59) profit (loss) Net loss (416) (934) (1,517) (1,490) Basic and 0.02 0.06 0.07 0.10 diluted loss per share

Roni Al-Dor, President and CEO, commented, "Today we reported our seventh consecutive quarter of operating profit, which proves our strategy direction and improving performance. In the last six months we achieved a significant improvement in the aggregate of $1 million in operational profit and $2.8 million in cash flow from operations. The net loss is a result of financial expenses relating to the Company's debentures due to the evaluation of the New Israeli Shekel exchange rate against the U.S. Dollar. Neutralizing this exchange rate decrease, Sapiens would be reporting net income today. However, despite the drop in the U.S Dollar/New Israeli Shekel exchange rate, we reported an operational profit of $579,000, an improvement compared with the first quarter of 2008 and the second quarter of 2007. In addition, we improved our pipe line, competing in a few major tenders and face several promising opportunities which we expect will become signed agreements in 2008.

Mr. Al-Dor added, "We thank our customers, our investors and our employees for the good news we reported today."

Comment Regarding Non-GAAP

Sapiens' management believes that the presentation of non-GAAP measures can enhance the understanding of the company's ongoing economic performance, and provides useful information to investors regarding financial and business trends relating to the company's financial condition and results of operations. Sapiens therefore uses internally the non-GAAP information to evaluate and manage the Company's operations.

This non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Sapiens believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Sapiens' results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Sapiens' results of operations in conjunction with the corresponding GAAP measures.

Please refer to the Reconciliation of GAAP to Non-GAAP Results at the end of this release.

About Sapiens International

Sapiens International Corporation N.V. (Nasdaq and TASE: SPNS), a member of Formula Group , which is a member of the Emblaze Group is a leading global provider of proven IT solutions that modernize business processes and enable insurance organizations to adapt quickly to change. Sapiens' innovative solutions are widely recognized for their ability to cost-effectively align IT with the business demands for speed, flexibility and efficiency. Sapiens operates through its subsidiaries in North America, the United Kingdom, EMEA and Asia Pacific, and has partnerships with market leaders such as IBM and EDS. Sapiens' clients include AXA, ING, Liverpool Victoria, Menora Mivtachim, Norwich Union, Occidental Fire & Casualty, OneBeacon, Principal Financial Group, Santam and Texas Farm Bureau among others. For more information, please visit http://www.sapiens.com/.

Except for historical information contained herein, the matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties, including such factors, among others, as market acceptance, market demand, pricing, changing regulatory environment, changing economic conditions, risks in new product and service development, the effect of the Company's accounting policies, specific system configurations and software needs of individual customers and other risk factors detailed in the Company's SEC filings.

SAPIENS INTERNATIONAL CORPORATION N.V. Condensed Consolidated Balance Sheets (U.S. Dollars in thousands) 06/30/2008 12/31/2007 (Unaudited) ( Audited) Assets Cash and cash equivalents $ 8,990 $ 13,125 Short-term investments 3,000 - Trade receivables, net 9,397 7,549 Other current assets 2,287 1,881 Total current assets 23,674 22,555 Property and equipment, net 1,229 1,219 Other assets, 30,485 28,758 net Total assets $ 55,388 $ 52,532 Liabilities and shareholders' equity Short-term bank credit and current maturities of long-term debt and $ 7,539 $ 9,456 convertible debentures Trade 1,872 1,088 payables Other liabilities and accrued 10,166 8,375 expenses Deferred 6,066 4,203 revenue Total current liabilities 25,643 23,122 Other long-term liabilities 1,740 1,132 Convertible debentures 5,885 6,428 Shareholders' equity 22,120 21,850 Total liabilities and shareholders' $ 55,388 $ 52,532 equity - - SAPIENS INTERNATIONAL CORPORATION N.V. Condensed Consolidated Statements of Operations (U.S. Dollars in thousands, except per share amounts) For the three months For the six months ended ended 06/30/2008 06/30/2007 06/30/2008 06/30/2007 Unaudited Unaudited Unaudited Unaudited Revenues $ 11,012 $ 10,680 $ 21,503 $ 21,687 Cost of $ 6,542 $ 6,849 $ 12,798 $ 13,925 revenues Gross Profit 4,470 3,831 8,705 7,762 Operating expenses Research and $ 857 $ 486 $ 1,647 $ 976 development, net Selling, $ 3,034 $ 3,183 $ 6,056 $ 6,475 marketing, general and administrative Operating 579 162 1,002 311 Profit Financial $ 1,002 $ 692 $ 2,185 $ 1,116 expenses, net Other expenses, $ 103 $ 185 $ 543 $ 315 net (a) Net Loss $ 526 $ 715 $ 1,726 $ 1,120 Basic and $ 0.02 $ 0.05 $ 0.08 $ 0.07 diluted net loss per share (b) Weighted average shares used to compute - basic and diluted 21,541 15,514 21,541 15,184 net loss per share (b) Note a: Includes taxes, equity losses, minority interest and capital due to repurchase of debentures. b: Due to the net loss in 2007 and 2008 the inclusion of dilutive securities would be antidilutive. SAPIENS INTERNATIONAL CORPORATION N.V. Reconcilation of GAAP to Non-GAAP results (U.S. Dollars in thousands, except per share amounts) For the three months For the six months ended ended 06/30/2008 06/30/2007 06/30/2008 06/30/2007 (Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP operating 579 162 1,002 311 profit Amortization 1,042 885 2,002 2,068 of intangibles Capitalization (982) (1,134) (1,858) (2,475) of software development Stock-based 50 30 65 37 compensation Total 110 (219) 209 (370) adjustments to GAAP Non-GAAP 689 (57) 1,211 (59) operating profit (loss) GAAP net loss (526) (715) (1,726) (1,120) Total 110 (219) 209 (370) adjustments to GAAP as above Non-GAAP net (416) (934) (1,517) (1,490) loss Non-GAAP basic 0.02 0.06 0.07 0.10 net loss per share Weighted average 21,541 15,514 21,541 15,184 number of ordinary shares used in computing basic and diluted net loss per ordinary share For additional information: Roni Giladi Roni Al-Dor Chief Financial Officer Chief Executive Officer Sapiens International Sapiens International Tel: +972-8-938-2721 Tel: +972-8-938-2721 E-mail: IR.Sapiens@sapiens.com E-mail: IR.Sapiens@sapiens.com

Sapiens Technologies

CONTACT: For additional information: Roni Giladi, Chief Financial
Officer, Sapiens International, Tel: +972-8-938-2721, E-mail:
IR.Sapiens@sapiens.com; Roni Al-Dor, Chief Executive Officer, Sapiens
International, Tel: +972-8-938-2721, E-mail: IR.Sapiens@sapiens.com

Orange Helps Drive Productivity for Businesses on the Move

LONDON, August 13 /PRNewswire/ --

- Orange Launches Mobile Fleet, a Set of Tools to Help Manage Fleet Worker Productivity

Orange Business Services today launched Mobile Fleet, a set of tools designed to increase the productivity and availability of fleets of vehicles and mobile workers within small and medium size businesses. The solution includes customisable, award winning Orange Mobile Forms(1), 4MB of data allowance and access to real time traffic updates from the RAC and Trafficmaster(2).

Recognising that road based businesses have different needs to those based at a desk, Orange Mobile Fleet removes the need for drivers to constantly return to base. It enables detailed job specifications to be delivered to field workers and, in return, for them to send job updates and invoices back to their headquarters, saving time and money in the process.

The inclusive 4MB data ensures the sending and receiving of approximately 1,000 standard Mobile Forms is included within the price. While real time traffic updates, received by calling 240 from an Orange phone, give mobile workers a convenient way to avoid traffic congestion between jobs and get their work done faster.

"We're giving our fleet based small and medium size customers the tools to keep their workforce more productive for longer," commented Martin Lyne, Director of Small Business, Orange Business Services. "Less time spent on admin means more time spent with customers. Coupling Mobile Forms with the 240 traffic alert and free 4MB data allowance means the net effect of Mobile Fleet is reduced travel, increased productivity and improved customer satisfaction. A positive result all round."

Mobile Forms can be easily customised using a drag and drop menu and requires no specialist IT support. Data can be sent and received in real time and can be exported in various formats to standard business applications such as Adobe PDF or Microsoft Excel.

"For courier companies, service engineers or companies with fleets of tradesmen Mobile Fleet is an easy to use, easy to deploy solution which gives instant and obvious time saving benefits," added Martin Lyne.

Mobile Forms is available on 18 and 24 month contracts from as little as GBP17 per month or as a one off annual charge with prices starting from GBP300 dependent on the number of subscribers.

The new price plan is available to all business customers on Orange Solo, Orange Venture or Orange Momentum service plans. Customers that sign up to the plan can use existing devices if appropriate, or upgrade to a HTC TyTN II, HTC Touch, HTC Touch Dual, HTC Sedna, or Samsung i780.

More information about the individual components can be found below:

Mobile Forms:

Orange Mobile Forms is designed to provide an Internet based service allowing you to:

- Design business forms for PDAs specific to your requirements

- Deploy different forms to PDA users as required, up to 100 bespoke forms can be set up

- Send data to be displayed in forms from a Web interface

- Receive and read data sent from PDA forms on the Web interface

- Mobile Forms does not require any IT integration to customers IT systems and customer's can be up and running within 48 hours of registration

240 traffic news services:

- Provided by the RAC and Trafficmaster - Updates every three minutes

- A personalised location aware traffic information service that delivers information specific to your location

- Special Bulletins - When an incident has occurred or road-works are taking place a special bulletin is offered for further information

Data allowance:

- Each month 4MB of data allowance, with any remaining rolled over for one month only

About Orange

Orange is a key brand of the France Telecom Group, providing mobile, broadband, fixed, business and entertainment services across Europe. It is one of the world's leading telecommunications operators with more than 170 million customers on five continents.

In June, 2006, Orange became the single brand for mobile, broadband and multi-play offers. In addition, Orange Business Services became the new banner for business communications solutions. Orange Business Services is present in 166 countries with network reach in 220.

In the UK, Orange provides high quality GSM coverage to 99% of the UK population. At the end of March 2008, Orange had over 16.9 million customers in the UK - 15.8 million active mobile customers and over 1.1 million broadband customers.

Orange and any other Orange product or service names included in this material are trade marks of Orange Personal Communications Services Limited.

Further information about Orange can be found on the Orange website at http://www.orange.co.uk or the France Telecom group international website at http://www.orange.com and http://www.francetelecom.com

---------------------------------

(1) Orange Mobile Forms was winner of Best Mobility Innovation or Service category at the 2008 Convergence World Awards

(2) 10 minutes of calls to the 240 Traffic News Service

Orange Business Services

For further information, call Victoria Aitken on +44(0)20-3047-2331 or email at victoria.aitken@edelman.com

Artprice.com CA 2T2008 : en hausse + 11% et perspectives rentrée 2008

PARIS, August 13 /PRNewswire/ --

Chiffre d'affaires en Keuros 2T2008 2T2007 Variation en % Internet 1 123 997 + 13 Indices et autres prestations 91 72 +26 Télématique 5 6 -17 Edition 6 25 -76 Total 2ème Trimestre 1 225 1 100 +11 Chiffre d'affaires en Keuros 1S2008 1S2007 Variation en % Internet 2 466 2 179 +13 Indices et autres prestations 161 92 +75 Télématique 9 13 -31 Edition 12 53 -77 Total 1er Semestre 2 648 2 337 +13

La croissance de 11 % du CA T2 est en phase avec le T1. Artprice, afin d'accroître sa masse d'abonnés, a lancé dès le début d'année 2008, en partenariat avec Paypal et les opérateurs bancaires, des abonnements mensuels à durée indéterminée. Cette option marketing améliore fortement les taux de renouvellement de ses clients. Le chiffre d'affaires T2 en croissance de 11% prend en compte le modèle de quasi gratuité mis en place spécifiquement pour la place de marché normalisée afin d'absorber progressivement le marché mondial des ventes de gré à gré ainsi que l'impact de l'abonnement payé mensuellement.

Perspectives Rentrée 2008

Le partenariat, qu'Artprice a démarré avec Google en 2005, a amené Artprice à mettre à disposition de Google des serveurs exclusivement dédiés. Depuis le début juillet 2008, les requêtes-robots (Googlebot) qu'effectue Google de manière contractuelle dépassent le million de logs/jour. Ainsi Artprice passe à la vitesse supérieure dans son process de normalisation du marché de l'art où des dizaines de millions d'oeuvres d'art en 5 langues sont désormais référencées dans leurs textes intégraux en pole position devant l'ensemble des fournisseurs d'information. Artprice devient avec Google l'encyclopédie de référence du marché de l'art.

La place de marché normalisée consacrée au Design qui a été lancée le 14 mai 2008 est un véritable succès. Deux mois après son lancement, la section Design regroupe près de 5 000 annonces normalisées de mobilier et objets d'art. A ce jour la banque de données Artprice permet aux collectionneurs et professionnels du genre de suivre le marché de 900 designers internationaux. Grâce au processus de normalisation qui fait le succès de la section Fine Art, Artprice informe ses membres par le biais de son alerte email de toute nouvelle information de marché (nouveau résultat de vente, nouvelle annonce) concernant les designers qu'ils enregistrent en favoris. Suite aux partenariats conclus avec les principales foires et salons de Design, dès septembre, la place de marché Design hébergera nombre des principaux acteurs de ce marché. La Fiac 2008, avec qui Artprice est partenaire et coéditeur du rapport sur le marché de l'art contemporain, sera un des points forts pour la place de marché Artprice et notamment sa section Design.

Assurances en ligne sur Artprice des oeuvres d'art

Dans le monde, à ce jour, les contrats d'assurances d'oeuvres d'art sont suivis principalement par des courtiers. De même, ce type de contrat d'assurances est restreint (minimum de 50 000 EUR environ de patrimoine Art). Ces contraintes rendaient difficile la mise en oeuvre de contrats simplifiés, disponibles sur Internet, à valeur déclarée (et non agrée) à l'image de ceux calés sur la cote argus dans l'automobile. Annuellement, le contrat d'assurance s'élève selon les pays, en moyenne à 3/1000 de la valeur de l'oeuvre assurée. Un courtier, selon que le contrat est dédié "objet d'art" ou "patrimonial complet", est commissionné de 10 à 25%.

Fort de ce constat limitatif, Artprice est donc en train de développer une application "portefeuille oeuvres normalisées" qui pourra s'appliquer à ses 1 300 000 membres. Après que ces "portefeuilles oeuvres normalisées" Fine Art sont indexés, Artprice pourra travailler directement sur ceux-ci et ainsi les valoriser grâce à des outils économétriques appliqués spécifiquement sur les oeuvres mises en portefeuille, mais aussi pour des projets de vente (Annonces normalisées sur la place de marché, ventes aux enchères, ...), ou tout projet d'assurance (contrat par oeuvre, ensemble d'oeuvres, collection, transport, prêt de pièces, exposition, ...).

A titre d'information subsidiaire, les estimations Artpricing (service payant d'estimation Artprice) représentent un volume d'oeuvres de 630 millions d'euros sur deux ans ; une part importante de ces demandes d'estimation vise à répondre à des besoin d 'assurance.

Source: http://www.artprice.com (c)1987-2008 thierry Ehrmann

Artprice est le leader mondial des banques de données sur la cotation et les indices de l'art avec plus de 25 millions d'indices et résultats de ventes couvrant 405 000 artistes. Artprice Images(R) permet un accès illimité au plus grand fonds du marché de l'art au monde, bibliothèque constituée de 290 000 catalogues de ventes d'art et ouvrages de référence de 1700 à nos jours commentés par ses historiens. Artprice enrichit en permanence ses banques de données en provenance de 2 900 Maisons de ventes et publie en continu les tendances du marché de l'art pour les principales agences et titres financiers dans le monde. Artprice diffuse auprès de ses 1 300 000 membres (member log in), ses annonces normalisées, qui constituent désormais la première place de marché mondiale pour acheter et vendre des oeuvres d'Art (source Artprice). Artprice est cotée sur Eurolist by Euronext Paris : Euroclear: 7478 - Bloomberg : PRC Reuters : ARTF Artprice.com.

Contact: Josette Mey - Service actionnaires Numéro de fax: +33(0)4-78-22-06-06 e-mail: ir@artprice.com

Artprice.com

Contact: Josette Mey - Service actionnaires, Numéro de fax: +33(0)4-78-22-06-06, e-mail: ir@artprice.com

Internet Gold Reports Q2 2008 ResultsNIS 281 Million Revenues; NIS 61 Million Adjusted EBITDA b

PETACH TIKVA, Israel, August 13 /PRNewswire-FirstCall/ -- Internet Gold Golden Lines Ltd., (NASDAQ NMS and TASE: IGLD) today reported its financial results for the second quarter ended June 30, 2008.

Highlights - Strong revenues and adjusted EBITDA despite the negative impact of the shekel-dollar exchange rate and the decline in wholesale international traffic (hubbing) revenues - Strong cash-flow performance: operating cash-flow for the quarter reached NIS 43 million ($12.8 million) - 012 Smile.Communications delivers excellent performance in line with plan for growth: adjusted EBITDA up 11% year-over-year; operating income (EBIT) up 22% year-over-year; on-track growth of VOB domestic telephony subscriber base; preparing to enter market for mobile services - Smile.Media records a net loss due to MSN-Israel's reduced market share: after the end of the quarter, an agreement was reached with Microsoft which will improve the Company's cash position and profitability - Additional share buy-back program put into place: after investing NIS 68 million in buying back shares since November 2007, the Board of Directors has authorized the repurchase of an additional NIS 70 million of ordinary shares in the open market - Search underway for accretive M&A candidates Financial Results for the Second Quarter

Revenues: Revenues for the second quarter of 2008 were NIS 281.4 million ($84.0 million) compared to NIS 296.3 million in the second quarter of 2007. Revenues for the quarter were impacted significantly by the decline in the shekel-dollar exchange rate and 012 Smile.Communications' decision to reduce its hubbing business. The average shekel-dollar exchange rate in the second quarter declined by 19% compared year-over-year with the second quarter of 2007, thus reducing the shekel value of dollar-linked service contracts which represent approximately one third of the Company's revenues. In addition, 012 Smile.Communications' decision, during late 2007, to reduce the emphasis on its low-margin hubbing business resulted in a reduction of approximately NIS 17 million in second quarter revenues compared to the second quarter of 2007. Excluding these two factors, the Company's revenues increased by approximately 8% on a year-over-year basis.

Adjusted EBITDA Adjusted EBITDA for the quarter was NIS 60.8 million ($18.1 million) compared with NIS 65.0 million for the second quarter of 2007. The decline was caused by the negative contribution of Smile.Media's largest Internet media property, MSN-Israel Ltd.

For more information regarding the use of non-GAAP financial measurements, please see the notes in this press release.

Merger Related Expenses: During the second quarter, the Company recorded final one-time expenses related to the merger of 012 Golden Lines and Smile.Communications of NIS 1.9 million ($0.6 million), bringing the total of all merger-related expenses under the original budget estimate of NIS 25-30 million.

Financing Expenses: Financing expenses for the second quarter were NIS 32.6 million ($9.7 million) compared with NIS 14.3 million in the second quarter of 2007. This high level of expenses was due primarily to the 6% decrease in the average shekel-dollar exchange rate recorded during the quarter (as compared with the exchange rate at March 31, 2008), which was responsible for the majority of the NIS 14 million decrease in the shekel value of the Company's dollar-denominated deposits, and was also due to CPI linkage expenses of NIS 22 million as a result of the quarter's 2.4% increase in the Israeli CPI, to which the Company's bonds are linked. These non-cash financial expenses did not affect the Company's cash position.

Net Results: On a U.S. GAAP basis, giving full effect to the decrease in the shekel-dollar exchange rate on financing expenses, the quarter's 2.4% increase in the Israeli CPI and one-time merger-related expenses, the net loss for the second quarter was NIS 8.1 million ($2.4 million), or NIS 0.37 ($0.11) loss per share, compared to net profit of NIS 22.3 million, or NIS 1.05 per share, in the second quarter of 2007. Excluding non-cash financial expenses described above and one-time merger related expenses, earnings for the second quarter was NIS 16.4 million ($4.9 million), or NIS 0.75 ($0.22) per share.

Balance Sheet

The Company's cash, cash equivalents and short term investments as of June 30, 2008 were NIS 706.0 million ($210.6 million), an increase of 617% compared with NIS 98.4 million ($29.3 million) as of June 30, 2007. In addition, Internet Gold's bank debt decreased by 182% from NIS 237 million ($ 70.7 million) as of June 30, 2007 to NIS 84 million ($25.0 million) as of the end of the second quarter of 2008.

As of June 30, 2008 the Company's primary balance sheet and operational ratios showed significant improvement as compared to June 30, 2007:

As of June 30, 2008 2007 Ratio of Shareholders' Equity to Total Assets* 20% *18% Ratio of Net Debt to EBITDA 1.6 2.7 Adjusted EBITDA margin 22 22 Current Ratio (Current Assets divided by Current 2.0 0.7 Liabilities) Gross Margin 32.4% 31.7%

* Excluding NIS 68 million invested in the buyback of the Company's shares.

On July 14, 2008, the Company announced that Midroog Ltd., an Israeli financial rating company which is affiliated with Moody's, reissued the A1 rating originally awarded to the Series A debentures issued in 2007 by 012 Smile.Communications. Midroog concluded that the A1 rating would continue if 012 Smile.Communications issues new debt of up to NIS 320 million (approximately $95 million). Copies of the complete Midroog report are available at http://www.midroog.co.il/.

Comments of Management

Commenting on the results, Eli Holtzman, Internet Gold's CEO, said, "Our results reflect the excellent performance of our communications segment, representing the vast majority of our current business. Consistent with its strategy for long-term growth, during the second quarter, 012 Smile continued to build its core businesses, to expand its base of VOB domestic telephony subscribers and to move forward towards launching its mobile services nationwide. This steady performance has enabled 012 Smile to re-earn an A-1 rating for its debentures, a vote of confidence that will enhance its ability to carry out its strategy for growth over the next few years."

Mr. Holtzman continued, "The market share losses of our primary Internet media property, MSN-Israel, continued to impact the revenues and profitability of Smile.Media, and therefore of the entire group. To resolve the situation, we recently reached an agreement to have Microsoft independently operate the MSN Israel portal from October 2008. This new agreement will result in a positive addition to our cash position and improve our profitability, while having only a minor impact on our revenues."

"As we have previously indicated, and in light of the recent changes in Smile.Media's properties, we have intensified our search for appropriate properties and joint ventures through which to deploy our significant cash reserves and our expertise in the communications market place, both in Israel and abroad. We are confident that, just as we succeeded in identifying the right M&A target in the 012 transaction two years ago, we will be successful in locating our next significant investment, thereby taking our group to the next level. As a concrete expression of our optimism regarding Internet Gold's future, our Board of Directors recently authorized the repurchase of up to NIS 70 million of our ordinary shares - in addition to the NIS 68 million that was used since last November to purchase shares. Given the current level of our share price, we strongly believe that the purchase of our own shares is an appropriate use of our cash and that these purchases will enhance long-term shareholder value."

Mr. Holtzman concluded, "Taken as a whole, we are optimistic about new opportunities in our markets and believe that we are better positioned than ever to go after them, taking our company to the next level. We look forward to reporting our continued progress in the year ahead."

Business Segments

012 Smile.Communications Ltd. (NASDAQ and TASE: SMLC): Revenues for the second quarter were NIS 264 million ($79 million) compared with NIS 275 million for the second quarter of 2007, representing 94% of the Group's revenues. Revenues were impacted by the continued decline in the average shekel-dollar exchange rate, which reduced the shekel value of service contracts linked to the dollar, and Management's decision in late 2007 to de-emphasize the low-margin hubbing business. Excluding these two factors, 012 Smile.Communications' revenues from core activities increased by approximately 10% on a year-over-year basis.

012 Smile.Communications' profitability continues to improve due to the synergies realized from the merger and the reduction of the proportion in its revenues that is derived from hubbing activities. The subsidiary's adjusted EBITDAb for the second quarter increased by 11% to a record NIS 63 million ($18.7 million) compared with NIS 57 million for the second quarter of 2007, and its adjusted EBITDA margin for the quarter reached a record 24% compared with 21% in the second quarter of 2007.

Smile.Media Ltd.: Revenues for the second quarter were NIS 18.1 million (US $5.4 million), representing 6% of the Group's revenues. The segment recorded a slightly negative adjusted EBITDAb for the quarter of NIS 0.2 million. The lower revenues and operating results derived from the continued weak performance of the subsidiary's primary MSN-Israel portal.

On July 6, 2008, the Company announced that it had reached an agreement with Microsoft Corp. under which Microsoft will independently operate the MSN-Israel portal beginning in October 2008. The parties are currently discussing the terms of migration and possible future cooperation. The msn.co.il portal will continue to operate throughout the transition period and both parties are working together to support employees, advertisers and users. In 2007, MSN Israel accounted for less than 3% of Internet Gold's total revenues.

Other: In addition to the operations of 012 Smile.Communications and Smile.Media, during the second quarter, Internet Gold incurred operating expenses of approximately NIS 1.4 million (US $0.4 million). These expenses were primarily for the development of new joint ventures and for activities related to the Company's listing on public securities exchanges, including expenses such as Investor Relations, Sarbanes Oxley compliance, insurance and legal expenses.

Share Buyback Programs

After the end of the second quarter, the Company's Board of Directors approved an increase to the Company's share buyback program, authorizing the repurchase of up to an additional NIS 70 million (approximately U.S. $21 million) of the Company's ordinary shares. This is the second repurchase program to be authorized by the Company's Board of Directors and purchases will be made from time to time in the open market on the NASDAQ Global Market and Tel Aviv Stock Exchange. The timing and amount of any share purchases will be determined by the Company's management based on its evaluation of market conditions and other factors. The repurchase program may be suspended or discontinued at any time.

This new program is in addition to the program announced by Internet Gold on November 29, 2007, when its Board of Directors authorized the repurchase of up to NIS 70 million of the Company's ordinary shares. Management has substantially completed the initial repurchase plan, having repurchased 1,978,476 ordinary shares at a cost of NIS 68 million, bringing the total number of outstanding shares to 21,539,930 as of June 30, 2008. To date, the Company has repurchased 2,271,276 shares, bringing the number of the total outstanding shares to 21,247,130.

Conference Call Information

Management will host an interactive teleconference to discuss the results today, August 13, 2008, at 10:00 a.m. EDT (17:00 Israel time). To participate, please call one of the following access numbers several minutes before the call begins: 1-888-281-1167 from within the U.S. or 1-888-604-5839 from within Canada, 0-800-917-9141 from within the U.K., or +972-3-918-0687 from other international locations. The call will also be broadcast live through the company's Website, http://www.igld.com/, and will be available there for replay during the next 30 days.

NOTE A: Convenience Translation to Dollars

For the convenience of the reader, the reported NIS figures of June 30, 2008 have been presented in thousands of U.S. dollars, translated at the representative rate of exchange as of June 30, 2008 (NIS 3.3520 = U.S. Dollar 1.00). The U.S. Dollar ($) amounts presented should not be construed as representing amounts receivable or payable in U.S. Dollars or convertible into U.S. Dollars, unless otherwise indicated.

NOTE B: Non-GAAP Financial Measurements

We present adjusted EBITDA as a supplemental performance measure because we believe that it facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structure (most particularly affecting our interest expense given our recently incurred significant debt), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses or, most recently, our provision for tax expenses) and the age of, depreciation expenses associated with, fixed assets (affecting relative depreciation expense) and expenses recorded for stock compensation in accordance with SFAS 123(R). Adjusted EBITDA should not be considered in isolation or as a substitute for net income or other statement of operations or cash flow data prepared in accordance with GAAP as a measure of our profitability or liquidity. Adjusted EBITDA does not take into account our debt service requirements and other commitments, including capital expenditures, and, accordingly, is not necessarily indicative of amounts that may be available for discretionary uses. In addition, adjusted EBITDA, as presented in this press release, may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. Our use of adjusted EBITDA is detailed more fully in "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Non-GAAP Financial Measures" and reflects our belief that the non-GAAP financial information is important for the understanding of our operations.

We define non-GAAP adjusted EBIT (earnings before interest and taxes) as net income before interest and taxes net amortization with regard to the intangible assets acquired as part of the acquisition of 012 Golden Lines, non-recurring expenses relating to charges incurred in connection with the merger of Smile.Communications and 012 Golden Lines and expenses recorded for stock compensation in accordance with SFAS 123(R).

Note C: Reconciliation Between Results on a GAAP and Non-GAAP Basis

Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statement of Operations (Non-GAAP Basis). Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude amortization of acquired intangible assets, as well as certain business combination accounting entries. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statement of Operations.

About Internet Gold

Internet Gold is one of Israel's leading communications groups with a major presence across all Internet-related sectors. Its 72.4% owned subsidiary, 012 Smile.Communications Ltd., is one of Israel's major Internet and international telephony service providers, and one of the largest providers of enterprise/IT integration services. Its 100% owned subsidiary, Smile.Media Ltd., manages a growing portfolio of Internet portals and e-Commerce sites.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the industry, changes in the regulatory and legal compliance environments in the industries it is engaged, the failure to manage growth and other risks detailed from time to time in Internet Gold's filings with the Securities Exchange Commission, including Internet Gold's Annual Report on Form 20-F. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

Consolidated Balance Sheets Convenience translation into U.S. dollars $1 = NIS3.352 June 30 December 31 June 30 2008 2007 2008 (Unaudited) (Audited) (Unaudited) NIS thousands $ thousands Current assets Cash and cash equivalents 235,119 601,926 70,142 Short-term investments 470,915 162,884 140,488 Trade receivables, net 224,017 224,616 66,832 Other receivables 27,245 26,446 8,128 Deferred taxes 8,166 9,707 2,436 Total current assets 965,462 1,025,579 288,028 Investments Long-term trade receivables 3,550 3,460 1,059 Deferred taxes 71 192 21 Assets held for employee 21,169 20,639 6,315 severance benefits Investments in investee companies 291 291 87 25,081 24,582 7,482 Property and equipment, net 168,207 163,949 50,181 Other assets, net 501,821 519,865 149,708 Goodwill 417,608 417,608 124,585 Total assets 2,078,179 2,151,583 619,984 Consolidated Balance Sheets (cont'd) Convenience translation into U.S. dollars $1 = NIS3.352 June 30 December 31 June 30 2008 2007 2008 (Unaudited) (Audited) (Unaudited) NIS thousands $ thousands Current liabilities Short-term bank credit 71,505 77,998 21,332 Current maturities of long-term obligations 10,277 10,734 3,066 Accounts payable 187,285 209,626 55,873 Current maturities of convertible 14,592 15,354 4,353 debentures Current maturities of debentures 87,935 - 26,234 Other current liabilities 105,101 91,131 31,355 Total current liabilities 476,695 404,843 142,213 Long term liabilities Long-term loans and other long-term 6,503 32,265 1,940 obligations Liability for termination of employer- 35,497 35,918 10,590 employee relations Deferred taxes 57,547 59,104 17,168 Debentures 816,028 848,616 243,445 Convertible debentures 85,231 104,640 25,427 Total long term liabilities 1,000,806 1,080,543 298,570 Total liabilities 1,477,501 1,485,386 440,783 Minority interest 183,719 180,410 54,809 Shareholders' equity 416,959 485,787 124,392 Total liabilities and shareholders' equity 2,078,179 2,151,583 619,984 Consolidated Statements of Operations Convenience translation into dollars $1 = NIS3.352 Six-month Three months Six months period period ended period ended ended June 30 June 30 June 30 2008 2007 2008 2007 2008 (Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited) NIS thousands NIS thousands $ thousands Revenues 281,423 296,310 561,055 592,562 167,379 Costs and expenses Cost of revenues 190,240 202,501 378,562 406,612 112,936 Selling and marketing expenses 40,473 45,624 82,550 88,415 24,627 General and administrative 19,567 16,596 36,844 32,515 10,992 expenses Impairment and other 2,062 1,445 6,922 1,905 2,065 charges Total costs and 252,342 266,166 504,878 529,447 150,620 expenses Income from 29,081 30,144 56,177 63,115 16,759 operations Financial expenses, 32,606 14,303 55,071 25,220 16,429 net Income (loss) before tax expenses (3,525) 15,841 1,106 37,895 330 Tax expenses 3,090 (6,501) 5,522 (2,981) 1,647 (income) Income (loss) after tax expenses (6,615) 22,342 (4,416) 40,876 (1,317) Minority interest (loss) in operations of consolidated subsidiaries 1,497 18 3,047 (26) 909 Net income (loss) (8,112) 22,324 (7,463) 40,902 (2,226) Income (loss) per share, basic Net income (loss) per share (in NIS) (0.37) 1.05 (0.33) 2.0 (0.10) Weighted average number of shares outstanding (in thousands) 21,845 21,178 22,388 20,463 22,388 Income (loss) per share, diluted Net income (loss) per share (in NIS) (0.37) 1.03 (0.33) 1.92 (0.10) Weighted average number of shares outstanding (in thousands) 21,845 21,603 22,388 24,064 22,388 Reconciliation Table of Non-GAAP Measures (NIS in thousands) Convenience translation into dollars $1 = NIS 3.352 Six-month Three months Six months period period ended period ended ended June 30 June 30 June 30 2008 2007 2008 2007 2008 (Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited) NIS thousands NIS thousands $ thousands GAAP operating 29,081 30,144 56,177 63,115 16,759 income Adjustments Amortization of acquired intangible assets 6,820 10,264 13,640 15,969 4,069 Impairment and other 2,062 1,445 6,922 1,905 2,066 charges Stock compensation in accordance with SFAS 950 - 950 - 283 123(R) Non-GAAP adjusted operating income 38,913 41,853 77,689 80,989 23,177 GAAP tax expenses (income), net 3,090 (6,501) 5,522 (2,981) 1,647 Adjustments Amortization of acquired intangible assets Included in tax 1,841 2,315 3,683 4,631 1,099 expenses, net Non-GAAP tax 4,931 (4,186) 9,205 1,650 2,746 expenses, net Net income (loss) as (8,112) 22,324 (7,463) 40,902 (2,226) reported Minority interest (loss) in operations of consolidated subsidiaries 1,497 18 3,047 (26) 909 Tax expenses 3,090 (6,501) 5,522 (2,981) 1,647 (income) Impairment and other 2,062 1,445 6,922 1,905 2,065 charges Stock compensation in accordance with SFAS 950 - 950 - 283 123(R) Financial expenses, 32,606 14,303 55,071 25,220 16,429 net Depreciation and 28,673 33,400 56,994 62,932 17,003 amortization Adjusted EBITDA 60,766 64,989 121,043 127,952 36,110 For further information, please contact: Mor Dagan - Investor Relations mor@km-ir.co.il / Tel:+972-3-516-7620 Ms. Idit Azulay, Internet Gold idita@co.smile.net.il / Tel: +972 200-3848

Internet Gold

CONTACT: For further information, please contact: Mor Dagan - Investor
Relations, mor@km-ir.co.il / Tel:+972-3-516-7620; Ms. Idit Azulay, Internet
Gold, idita@co.smile.net.il / Tel: +972-200-3848

Cellcom Israel Announces Second Quarter 2008 Results

NETANYA, Israel, August 13 /PRNewswire-FirstCall/ --

- Cellcom Israel Presents Record Results in Terms of Total Revenues, EBITDA and Operating Income and an Increase in Market Share Compared to Second Quarter Last Year: - These Record Results Were Achieved Despite the Ongoing Price Erosion and the Intense Market Competition; - Revenues Increased 9.9%; EBITDA(1) up by 14.7% - Cellcom Israel Declares a Second Quarter Dividend of NIS 2.76 Per Share (Totals Approx. NIS 270 Million) Second Quarter 2008 Highlights (results compared to second quarter 2007, unless otherwise stated): - Total Revenues (including revenues from end-user equipment) increased 9.9% to NIS 1,600 million ($477 million) - Total Revenues from services increased 6.3% to NIS 1,410 million ($421 million) - Revenues from content and value added services (including SMS) increased 35.6%, reaching 11.3% of services revenues - EBITDA(2) increased 14.7% to NIS 617 million ($184 million) (including a one time expense reversal of NIS 14 million) - EBITDA margin reached 38.6%, up from 37.0% - Operating income increased 25.7% to NIS 431 million ($129 million) - Financing expenses, net increased by NIS 90 million (including a one time expense(3) of approx. NIS 29 million) - Net income increased 8.5% to NIS 230 million ($69 million) - Free Cash Flow increased approx. 295% compared to previous quarter and totaled NIS 308 million - The Company's subscriber base increased 5.3% compared to second quarter last year; the Company's market share also increased - Post-paid Subscriber base increased approx. 27,000 net new subscribers and pre-paid subscriber base was down by 6,000. Total net new additional subscribers in the second quarter reached approx. 21,000; Total subscriber base reached approx. 3.117 million at the end of June 2008 - 3G subscribers reached approx. 608,000 at the end of June 2008, net addition of approx. 85,000 - The Company declared a second quarter dividend of NIS 2.76 per share

Cellcom Israel Ltd. ("Cellcom Israel", the "Company"), announced today its financial results for the second quarter of 2008. Revenues for the second quarter 2008 totaled NIS 1,600 million ($477 million); EBITDA for the second quarter 2008 totaled NIS 617 million ($184 million), or 38.6% of revenues; and net income for the second quarter 2008 totaled NIS 230 million ($69 million). Basic earnings per share for the second quarter 2008 reached NIS 2.36 ($0.70).

Commenting on the results, Amos Shapira, Chief Executive Officer said, "I am very pleased with our second quarter 2008 results, especially given the competitive environment and the continuing price erosion, which proves again our ability to adjust quickly to the changing business environment. Cellcom Israel presents today another record quarter in terms of total revenues, EBITDA, EBITDA margin and operating income. I am proud of all our employees and managers for the achievements this quarter, as well as for the fast growth in our brand positioning, further enhancing our status as the leading cellular company in Israel."

Mr. Shapira added: "In the second quarter of 2008, I am pleased to note, we presented record results in terms of revenues, EBITDA and operating income and an increase in market share (4) in comparison with the second quarter of last year, which reflects the strengthening of our leadership position in the Israeli cellular market. In the second quarter, we further increased and improved our total subscriber base, gaining approximately 27,000 net new post-paid subscribers while losing approximately 6,000 net pre-paid subscribers. Our 3G subscriber base continues to grow, reaching above 608,000 subscribers as of the end of June 2008, up 85,000 this quarter, all of which are post-paid subscribers, characterized by high ARPU. The overall improvement in the Company's composition of subscribers contributed to the increased ARPU and the Company's profitability. Revenues from content and value added services increased by approximately 36%, reaching 11.3% of our service revenues. Furthermore, we broadened our offering of landline services, which continued to contribute to the fast growth of revenues from these services. Simultaneously, we kept on cost efficiency measures, contributed directly to our improved EBITDA and EBITDA margin."

Tal Raz, Chief Financial Officer, commented: "This was another strong quarter in terms of revenues and operating profitability for the Company, resulting mainly from an increase in revenues from content, value added services and landline services as well as ongoing cost efficiencies. Marketing, sales, general and administrative expenses as percentage of revenues decreased from 22.4% in the second quarter of 2007 to 21.9% in the second quarter this year. Our net income increased despite the significant increase in financing expenses, stemming mainly from the increase in the Israeli Consumer Price Index (CPI) during the second quarter, which affected the linkage expenses to the Israeli CPI, associated with our debentures. Our free cash flow for the second quarter rised again towards the level we used to present before the first quarter of 2008 and totaled NIS 308 million, an increase of approximately 295% compared to the previous quarter. Furthermore, during the second quarter we decreased our handsets and accessories inventory level, which was purchased during our preparation to number portability, by approximately NIS 86 million compared to the previous quarter and the inventory lowered again to the level we used to present before our preparations to number portability."

Main Financial and Performance Indicators: Q2/2008 Q2/2007 % Change Q2/2008 Q2/2007 million NIS million US$ (convenience translation) Total Services revenues 1,410 1,327 6.3% 420.6 395.9 Revenues from content and 160 118 35.6% 47.7 35.2 value added services Handset and accessories 190 129 47.3% 56.7 38.5 revenues Total revenues 1,600 1,456 9.9% 477.3 434.4 Operating Profit 431 343 25.7% 128.6 102.3 Net Income 230 212 8.5% 68.6 63.2 Cash Flow from Operating 308 352 -12.5% 91.9 105.0 Activities, net of Investing Activities EBITDA 617 538 14.7% 184.1 160.5 EBITDA, as percent of 38.6% 37.0% 4.3% Revenues Subscribers end of period 3,117 2,960 5.3% (in thousands) Estimated Market Share4 34.7% 34.4% 0.9% Average Monthly MOU (in 354 345 2.6% minutes) Monthly ARPU 149 148 0.7% 44.5 44.2 Financial Review

Revenues for the second quarter of 2008 totaled NIS 1,600 million ($477 million), a 9.9% increase compared to NIS 1,456 million ($434 million) in the second quarter last year. The increase in revenues resulted from a 6.3% increase in revenues from services, reaching NIS 1,410 million ($421 million) compared to NIS 1,327 million ($396 million) in the second quarter last year, as well as from a 47.3% increase in handset and accessories' revenues from NIS 129 million ($38 million) in the second quarter last year, to NIS 190 million ($57 million) in the second quarter 2008. The increase in revenues from services is attributed mainly to a 35.6% increase in revenues from content and value added services (including SMS) in the second quarter 2008, compared to the second quarter last year, reaching NIS 160 million ($48 million), or 11.3% of revenues from services. The increase also resulted from an increase in roaming services and landline services. The increase in revenues from services was partially offset by the reduction of interconnect tariffs, which came into effect on March 1, 2008 and the ongoing airtime price erosion. The increase in handset and accessories' revenues in the second quarter of 2008, resulted primarily from a larger amount of handsets sold and an increase in the average handset sale price, due to higher sales of advanced 3G handsets in the second quarter of 2008.

Cost of revenues for the second quarter of 2008 totaled NIS 819 million ($244 million), compared to NIS 786 million ($234 million) in the second quarter last year, an increase of 4.2%. The increase in cost of revenues primarily resulted from an increase in interconnect expenses due to an increase in outgoing calls terminating in other operators' networks, as well as an increase in cost of content and value-added services due to increased usage. The increase also resulted from an increase in handset costs following the higher number of handsets sold during the second quarter of 2008 and an increase in the average handset sale price, partially offset by increased efficiency in handset procurement and the appreciation of the NIS against the US dollar, which lowered the cost of handsets.

In June 2008, the Israel Accounting Standards Board published a clarification to the International Accounting Standard no. 39 ("Financial Instruments: Recognition and Measurement"), in which it recognized the US Dollar as a Commonly Used currency in Israel until December 31, 2006. As a result, all transactions related to engagements made by December 31, 2006, do not require a separation of the embedded derivative. Since the Company began, in the first quarter of 2008 - following the adoption of the IFRS - to retroactively separate embedded derivatives, the Company had to reverse the recorded amounts for the separation of embedded derivatives related to engagements made on or before December 31, 2006. This resulted in a one-time reversal of rent expenses in the amount of approximately NIS 14 million, mainly related to previous years, which offset in part the increase in cost of revenues. On the other hand, this issue increased financing expenses by approximately NIS 29 million, which constitutes a one-time reversal of financing income mainly related to previous years. See Financing Expenses, net below.

Gross profit for the second quarter of 2008 totaled NIS 781 million ($233 million), a 16.6% increase compared to NIS 670 million ($200 million) in the second quarter of 2007. Gross profit margin for the second quarter of 2008, increased to 48.8% from 46.0% in the second quarter last year.

Selling, Marketing, General and Administrative Expenses ("SG&A Expenses") for the second quarter of 2008 totaled NIS 350 million ($104 million), or 21.9% of total revenues, compared to NIS 326 million ($97 million), or 22.4% of total revenues, in the second quarter of 2007. The SG&A Expenses in the second quarter 2008 were affected, among other things, by the accelerated recording of option related expenses under our option plan in the amount of approximately NIS 11 million, following the Company's reevaluation of a "Corporate Transaction" occurrence (for additional details see "Other developments during the second quarter of 2008 and subsequent to balance sheet date - Amendment to employee share incentive plan" below).

Operating income for the second quarter of 2008 increased 25.7%, reaching NIS 431 million ($129 million), compared to NIS 343 million ($102 million) in the second quarter last year. The increase in operating income, as well as in EBITDA, reflects, among other things, the one-time reversal of rent expenses in the amount of approximately NIS 14 million, mainly related to previous years, as explained in Cost of revenues.

EBITDA for the second quarter 2008 increased 14.7%, reaching NIS 617 million ($184 million), compared to NIS 538 million ($161 million) in the second quarter 2007. EBITDA as a percent of total revenues, reached 38.6%, compared to 37.0% in the second quarter last year.

Financing Expenses, net for the second quarter 2008 totaled NIS 109 million ($33 million), compared to NIS 19 million ($6 million) in the second quarter last year. This increase resulted, among other things, from a one-time reversal of financing income in the amount of approximately NIS 29 million, mainly related to previous years, for the separation of embedded derivatives related to engagements made on or before December 31, 2006, as explained in Cost of revenues. The increase also resulted from an increase in interest and linkage expenses to the Israeli Consumer Price Index (CPI), associated with the Company's debentures, following the increase in our debt level and the increase in the Israeli CPI during the second quarter 2008, compared to the second quarter last year. The increase in financing expenses was partially offset by two main items: an increase in financing income related to the Company's hedging portfolio, which totaled approximately NIS 39 million compared to approximately NIS 13 million in the second quarter of 2007, and the lack of interest expenses relating to the Company's former credit facility, which was fully prepaid in March 2008, compared to approximately NIS 21 million facility related interest expenses in second quarter of 2007.

Net Income for the second quarter of 2008 increased 8.5%, reaching NIS 230 million ($69 million), compared to NIS 212 million ($63 million) in the second quarter last year.

Basic earnings per share for the second quarter of 2008 totaled NIS 2.36 ($0.70), compared to NIS 2.17 ($0.65) in the second quarter of 2007.

Operating Review

New Subscribers - at the end of June 2008 the Company had approximately 3.117 million subscribers. During the second quarter of 2008 the Company added approximately 21,000 net new subscribers (an increase of approximately 27,000 post-paid subscribers and a decrease of approximately 6,000 pre-paid subscribers).

In the second quarter of 2008, the Company added approximately 85,000 net new 3G subscribers to its 3G subscriber base, reaching approximately 608,000 3G subscribers at the end of June 2008, representing 19.5% of the Company's total subscriber base.

The Churn Rate in the second quarter 2008 was 4.7%, compared to 3.9% in the second quarter last year and compared to 5.3% in the previous quarter. As expected and as experienced in other countries, the implementation of number portability has increased the churn, which primarily consists of lower contribution pre-paid subscribers and subscribers with collection problems. The increased churn of pre-paid subscribers had a negligible impact on the Company's results.

Average monthly subscriber Minutes of Use ("MOU") in the second quarter 2008 totaled 354 minutes, compared to 345 minutes in the second quarter 2007, an increase of 2.6%.

The monthly Average Revenue per User (ARPU) for the second quarter 2008 increased 0.7% and totaled NIS 149 ($44.5), compared to NIS 148 ($44.2) in the second quarter last year.

Financing and Investment Review Cash Flow

Free cash flow (Cash provided by operating activities, net of cash used in investing activities) for the second quarter of 2008 totaled NIS 308 million ($92 million), compared to NIS 352 (5) million ($105 million) generated in the second quarter of 2007. The relative decrease in Free Cash Flow in the second quarter 2008 compared to the second quarter last year resulted primarily from the increase in investing activity, attributed mainly to different dispersal of investments over the year compared to last year, and from the remaining payments, mainly for handsets procurement and payroll expenses, related to the Company's preparations for number portability. The Company's free cash flow for the second quarter increased by approximately 295% compared to the previous quarter and rised again towards the level presented in the periods before the first quarter of 2008.

Shareholders' Equity

Shareholders' Equity as of June 30, 2008 amounted to NIS 372 million ($111 million), primarily consisting of accumulated undistributed retained earnings.

Investment in Fixed Assets and Intangible Assets

During the second quarter 2008, the Company invested NIS 128 million ($38 million) (on accrued basis, not cash basis) in fixed assets and intangible assets (including, among others, deferred commissions and investments in information systems and software), compared to NIS 117 million ($35 million) in the second quarter 2007.

Dividend

On August 12, 2008, the Company's board of directors declared a cash dividend in the amount of NIS 2.76 per share, and in the aggregate amount of approximately NIS 270 million (the equivalent of approximately $0.77 per share and approximately $76 million in the aggregate, based on the representative rate of exchange on August 11, 2008; the actual US$ amount for dividend paid in US$ will be converted from NIS based upon the representative rate of exchange published by the Bank of Israel on September 4, 2008), subject to withholding tax described below. The dividend will be payable to all of the Company's shareholders of record at the end of the trading day in the NYSE on August 25, 2008. The payment date will be September 8, 2008. According to the Israeli tax law, the Company will deduct at source 20% of the dividend amount payable to each shareholder, as aforesaid, subject to applicable exemptions. The dividend per share that the Company will pay for the second quarter of 2008 does not reflect the level of dividends that will be paid for future quarterly periods, which can change at any time in accordance with the Company's dividend policy. Dividend declaration is not guaranteed and is subject to the Company's board of directors' sole discretion, as detailed in the Company's annual report for the year ended December 31, 2007 on Form 20-F, under "Item 8 - Financial Information - Dividend Policy".

Other developments during the second quarter of 2008 and subsequent to balance sheet date

Site Licensing - As previously disclosed, the Company has relied upon an exemption from the requirement to obtain building permits in relation to cellular radio access devices. This exemption has been challenged in court. In May 2008, the Israeli Attorney General opined that the exemption does apply to cellular radio access devices, but later that month, the District Court of Tel-Aviv-Jaffa ruled, in its capacity as court of appeals, that the reliance of the Company and other cellular providers in Israel upon the exemption, is invalid, since the cellular operators' devices do not meet the exemption's requirements.

The Company and other cellular operators appealed this ruling to the Supreme Court, which granted a stay of execution until further decision, to which the State did not object. All those appeals await consideration in the Supreme Court. Other appeals on that issue are still under consideration in the District Court as court of appeals. On July 2, 2008, subsequent to the balance sheet date, an amendment to the Israeli Communication Law, 1982, proposing to annul the exemption, passed the preliminary phase of enactment.

Furthermore, on July 21, 2008, subsequent to balance sheet date, a petition was filed by the Union of Local Authorities in Israel and certain local planning and building authorities against the Attorney General and the Israeli cellular operators, including the Company, with the Supreme Court. The petitioners seek remedies aimed at (1) annulling the Attorney General's opinion described above, as well as directives issued by the Attorney General to the local authorities, to refrain from indicting the cellular operators for building and operating radio access devices based on the exemption, if the devices meet the exemption's requirements; and at (2) applying the District Court's decision in relation to the exemption. The petitioners further seek an ex-parte interim order rendering the Attorney General's directives ineffective or alternatively, an interim order preventing the building of cellular radio access devices based on the exemption, until the petition is decided upon. The court has requested the respondents' response for both the petition and interim remedy sought.

On July 17, 2008, subsequent to the balance sheet date, a petition was filed by environmental entities against the Minister of Environmental Protection, the Minister of Communications and the cellular companies, including the Company, with the Supreme Court. The petitioners seek remedies relating to the delayed enactment of regulations under the Israeli Non-Ionizing Radiation Law, 2006, as well as an ex-parte temporary injunction preventing the provision of any environmental permits, until the petition is decided upon. The court has requested the respondents' response for both the petition and interim remedy sought.

For additional details see the Company's most recent annual report for the year ended December 31, 2007 on Form 20-F under "Item 3. Key Information - D. Risk Factors - Risks related to our business - We may not be able to obtain permits to construct cell sites" as well as under "Item 4. Information on the Company - B. Business Overview - Government Regulations - Permits for Cell site Construction - Site Licensing" and "Construction and operating permits from the commissioner of environmental radiation" and the Company's immediate report on Form 6-K filed on May 14, 2008 under "Other Developments Subsequent to Balance Sheet Date - Site Licensing".

Amendment to Employee Share Incentive Plan - As previously disclosed, on July 6, 2008, subsequent to the balance sheet date, the Company's audit committee and board of directors approved an amendment to the Company's 2006 Share Incentive Plan (the "Plan"). The Plan previously provided that the vesting of options and restricted share units ("RSUs") (together "Awards") issued under the Plan would fully accelerate prior to the occurrence of certain Corporate Transactions, as defined under the Plan, and immediately terminate upon the effective date of any such Corporate Transaction if not exercised by such date. The events constituting Corporate Transactions include, among others, a decrease in share ownership by Discount Investment Corporation Ltd. and its subsidiaries ("DIC") to less than 50.01% of the Company's outstanding share capital. As of June 30, 2008, DIC held approximately 50.5% of the Company's outstanding share capital.

The amendments to the Plan include (1) changing the 50.01% threshold to a trigger when DIC ceases to control (as such term is defined in the Israeli Securities Law, 1968) the Company; and (2) requiring the Company to provide each grantee with a ten-day period to exercise the Awards upon a Corporate Transaction. Such amendments apply also with respect to outstanding options.

The Company's audit committee and board of directors further approved a change to the terms of outstanding options at that time, to allow, if the grantee is dismissed without cause, up to additional six (6) months from the Date of Cessation, as defined under the Plan, for vesting of the third or forth portions to occur.

The amendments to outstanding options held by the Company's Chairman of the Board, Mr. Ami Erel, require the further approval of the Company's shareholders, according to the Israeli Companies Law -1999.

No RSU's have been granted under the Plan.

For additional information regarding the Plan and the options outstanding thereunder, please see the Company's most recent annual report for the year ended December 31, 2007 on Form 20-F under "Item 6. Directors, Senior Management and Employees - E. Share Ownership - 2006 Share Incentive Plan".

Conference Call Details

The Company will be hosting a conference call on Wednesday, August 13, 2008 at 08:30 am EDT, 03:30 pm Israel time, and 01:30 pm UK time. On the call, management will review and discuss the results, and will be available to answer questions. To participate, please either access the live webcast on the Company's website, or call one of the following teleconferencing numbers below. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

US Dial-in Number: 1-888-668-9141 UK Dial-in Number: 0800-032-3367 Israel Dial-in Number: 03-918-0688 International Dial-in Number: +972-3-918-0688 at: 08:30 am Eastern Time; 05:30 am Pacific Time; 1:30 pm UK Time; 3:30 pm Israel Time

To access the live webcast of the conference call, please access the investor relations section of Cellcom Israel's website: http://investors.ircellcom.co.il/events.cfm. After the call, a replay of the call will be available under the same investor relations section.

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its approximately 3.117 million subscribers (as at June 30, 2008) with a broad range of value added services including cellular and landline telephony, roaming services for tourists in Israel and for its subscribers abroad and additional services in the areas of music, video, mobile office etc., based on Cellcom Israel's technologically advanced infrastructure. The Company operates an HSPA 3.5 Generation network enabling the fastest high speed content transmission available in the world, in addition to GSM/GPRS/EDGE and TDMA networks. Cellcom Israel offers Israel's broadest and largest customer service infrastructure including telephone customer service centers, retail stores, and service and sale centers, distributed nationwide. Through its broad customer service network Cellcom Israel offers its customers technical support, account information, direct to the door parcel services, internet and fax services, dedicated centers for the hearing impaired, etc. In April 2006 Cellcom Israel, through Cellcom Fixed Line Communications L.P., a limited partnership wholly-owned by Cellcom Israel, became the first cellular operator to be granted a special general license for the provision of landline telephone communication services in Israel, in addition to data communication services. Cellcom Israel's shares are traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL). For additional information please visit the Company's website http://investors.ircellcom.co.il/

Forward-Looking Statements

The following information contains, or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995 and the Israeli Securities Law, 1968). In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial results, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause such differences include, but are not limited to: changes to the terms of our license, new legislation or decisions by the regulator affecting our operations, the outcome of legal proceedings to which we are a party, particularly class action lawsuits, our ability to maintain or obtain permits to construct and operate cell sites, and other risks and uncertainties detailed from time to time in our filings with the U.S. Securities and Exchange Commission, including under the caption "Risk Factors" in our Annual Report for the year ended December 31, 2007.

Although we believe the expectations reflected in the forward-looking statements contained herein are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We assume no duty to update any of these forward-looking statements after the date hereof to conform our prior statements to actual results or revised expectations, except as otherwise required by law.

The Company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS). Unless noted specifically otherwise, the dollar denominated figures were converted to US$ using a convenience translation based on the US$\New Israeli Shekel (NIS) conversion rate of NIS 3.352 = US$1 as published by the Bank of Israel on June 30, 2008.

Use of non-GAAP financial measures

EBITDA is a non-GAAP measure and is defined as income before financial income (expenses), net; other income (expenses), net; income tax; depreciation and amortization. This is an accepted measure in the communications industry. The Company presents this measure as an additional performance measure as the Company believes that it enables us to compare operating performance between periods and companies, net of any potential differences which may result from differences in capital structure, taxes, age of fixed assets and related depreciation expenses. EBITDA should not be considered in isolation, or as a substitute for operating income, any other performance measures, or cash flow data, which were prepared in accordance with Generally Accepted Accounting Principles as measures of profitability or liquidity. EBITDA does not take into account debt service requirements, or other commitments, including capital expenditures, and therefore, does not necessarily indicate the amounts that may be available for the Company's use. In addition, EBITDA may not be comparable to similarly titled measures reported by other companies, due to differences in the way these measures are calculated. See the reconciliation between the net income and the EBITDA presented at the end of this Press Release.

Free cash flow is a non-GAAP measure and is defined as the net cash provided by operating activities minus the net cash used in investing activities. See the reconciliation note at the end of this Press Release.

Financial Tables Follow Cellcom Israel Ltd. (An Israeli Corporation) Condensed Consolidated Balance Sheets Convenience translation into US dollar June 30, June 30, June 30, December 31, 2008 2008 2007 2007 NIS millions US$ millions NIS millions NIS millions (Unaudited) (Unaudited) (Unaudited) (Audited) Current assets Cash and cash 195 58 372 911 equivalents Trade 1,447 432 1,331 1,385 receivables Other 132 39 89 96 receivables, including derivatives Inventory 150 45 125 245 Total current 1,924 574 1,917 2,637 assets Long-term 608 182 512 575 receivables Property, 2,223 663 2,361 2,335 plant and equipment, net Intangible 678 202 671 685 assets, net Total assets 5,433 1,621 5,461 6,232 Current liabilities Short-term credit 287 86 123 353 Trade payables 588 175 679 953 and accrued expenses Current tax 66 20 182 122 liabilities Provisions 90 27 82 91 Other current liabilities, including 367 109 291 384 derivatives Total current 1,398 417 1,357 1,903 liabilities Long-term liabilities Long-term loans - - 1,092 343 from banks Debentures 3,509 1,047 1,989 2,983 Provisions 16 5 14 14 Other long term 1 *- 2 3 liabilities Deferred taxes 137 41 156 149 Total non-current 3,663 1,093 3,253 3,492 liabilities Total liabilities 5,061 1,510 4,610 5,395 Shareholders' equity Share capital 1 *- 1 1 Capital reserves (60) (18) (10) (33) Retained earnings 431 129 860 869 Total shareholders' 372 111 851 837 equity Total liabilities and 5,433 1,621 5,461 6,232 shareholders' equity * Less than 1 million Cellcom Israel Ltd. (An Israeli Corporation) Condensed Consolidated Statements of Income Six- month period ended June 30, Convenience translation into US dollar 2008 2008 2007 NIS US$ NIS millions millions millions (Unaudited) (Unaudited) (Unaudited) Revenues 3,195 953 2,894 Cost of revenues 1,698 506 1,570 Gross profit 1,497 447 1,324 Selling and marketing expenses 333 99 313 General and administrative expenses 327 98 321 Other (income) expenses (18) (5) - Operating income 855 255 690 Financing expenses (234) (70) (94) Financing income 80 24 33 Financing costs, net (154) (46) (61) Income before income 701 209 629 tax Income tax 198 59 209 Net income 503 150 420 Earnings per share Basic earnings per share (in NIS) 5.16 1.54 4.31 Diluted earnings per share (in NIS) 5.08 1.52 4.27 Weighted average number of shares used in the calculation of basic earnings per share (in thousands) 97,540 97,540 97,500 Weighted average number of shares used in the calculation of diluted earnings per share (in thousands) 99,100 99,100 98,251 (Condensed Consolidated Statements of Income - CONTINUED) Three- month period ended Year ended June 30, December 31, Convenience translation into US dollar 2008 2008 2007 2007 NIS US$ NIS NIS millions millions millions millions (Unaudited) (Unaudited) (Unaudited) (Audited) Revenues 1,600 477 1,456 6,050 Cost of revenues 819 244 786 3,377 Gross profit 781 233 670 2,673 Selling and marketing expenses 177 53 164 685 General and administrative expenses 173 51 162 653 Other (income) expenses - - 1 3 Operating income 431 129 343 1,332 Financing expenses (127) (38) (39) (287) Financing income 18 5 20 140 Financing costs, net (109) (33) (19) (147) Income before income 322 96 324 1,185 tax Income tax 92 27 112 310 Net income 230 69 212 875 Earnings per share Basic earnings per share (in NIS) 2.36 0.70 2.17 8.97 Diluted earnings per share (in NIS) 2.32 0.69 2.15 8.89 Weighted average number of shares used in the calculation of basic earnings per share (in thousands) 97,575 97,575 97,500 97,500 Weighted average number of shares used in the calculation of diluted earnings per share (in thousands) 99,163 99,163 98,466 98,441 Cellcom Israel Ltd. (An Israeli Corporation) Condensed Consolidated Statements of Cash Flows Six- month period ended June 30, Convenience translation into US dollar 2008 2008 2007 NIS US$ millions NIS millions millions (Unaudited) (Unaudited) (Unaudited) Cash flows from operating activities Net income for the period 503 150 420 Adjustments to reconcile net income to funds generated from operations: Depreciation and amortization 373 111 382 Reversal of provision allowance - - - Loss (gain) on sale of assets (17) (5) 2 Income tax expense 198 59 209 Financial costs, net 154 46 61 Equity settled share based payments transaction 17 5 18 Changes in operating assets and liabilities: Changes in inventories 82 25 6 Changes in trade receivables (including long-term amounts) (113) (34) (34) Changes in other receivables and debits (including long-term amounts) (42) (12) (13) Changes in trade payables (including long-term amounts) (269) (80) (8) Changes in other payables and credits (including long-term amounts) 35 10 37 Proceeds (payments) for inventory hedging contracts, net (20) (6) (16) Proceeds (payments) for derivative contracts, net 11 3 (15) Income tax paid (260) (78) (153) Net cash provided by operating activities 652 194 896 Condensed Consolidated Statements of Cash Flows (CONTINUED) Three- month period ended Year ended June 30,December 31, Convenience translation into US dollar 2008 2008 2007 2007 NIS US$ NIS NIS millions millions millions millions (Unaudited) (Unaudited) (Unaudited) (Audited) Cash flows from operating activites Net income for the period 230 69 212 875 Adjustments to reconcile net income to funds generated from operations Depreciation and 186 55 194 775 amortization Reversal of provision - - - (10) allowance Loss (gain) on sale of 1 - 1 4 assets Income tax expense 92 27 112 310 Financial costs, net 109 33 19 147 Equity settled share 13 4 7 29 based payments transaction Changes in operating assets and liabilities: Changes in inventories 73 22 12 (114) Changes in trade (26) (8) (15) (99) receivables (including long-term amounts) Changes in other (33) (10) 8 (24) receivables and debits (including long-term amounts) Changes in trade (92) (27) 8 188 payables (including long-term amounts) Changes in other 5 1 (2) * 92 payables and credits (including long-term amounts) Proceeds (payments) for (11) (3) (8) * (24) inventory hedging contracts, net Proceeds (payments) for 9 3 (12) * (26) derivative contracts, net Income tax paid (99) (30) (84) (313) Net cash provided by 457 136 452 1,810 operating activities * Reclassified Cellcom Israel Ltd. (An Israeli Corporation) Condensed Consolidated Statements of Cash Flows (cont'd) Six- month period ended June 30, Convenience translation into US dollar 2008 2008 2007 NIS millions US$ millions NIS millions (Unaudited) (Unaudited) (Unaudited) Cash flows from investing activities Acquisition of property, plant, and equipment (225) (67) (228) Acquisition of intangible assets (94) (28) (46) Proceeds (payments) for property, plant and equipment hedging contracts, net (10) (3) (8) Proceeds from sales of assets 50 15 1 Interest received from investments 13 4 4 Investment in long-term deposit - - - Net cash provided by investing activities (266) (79) (277) Cash flows from financing activities Payment of long-term loans from banks (648) (194) - Proceeds from issuance of debentures, net of issuance costs 589 176 - Cash dividend paid (955) (285) (185) Interest paid (88) (26) (118) Net cash provided by financing activities (1,102) (329) (303) Changes in cash and cash equivalents (716) (214) 316 Balance of cash and cash equivalents at beginning of the period 911 272 56 Balance of cash and cash equivalents at end of the period 195 58 372 Condensed Consolidated Statements of Cash Flows (CONTINUED) Three- month period ended Year ended June 30, December 31, Convenience translation into US dollar 2008 2008 2007 2007 NIS US$ US$ NIS millions millions millions millions (Unaudited) (Unaudited) (Unaudited) (Audited) Cash flows from investing activities Acquisition of property, plant, and equipment (107) (32) (75) (466) Acquisition of intangible assets (40) (12) (24) (97) Proceeds (payments) for property, plant and equipment hedging contracts, net (5) (1) (4) * (12) Proceeds from sales of assets - - - 4 Interest received from investments 3 1 3 23 Investment in long-term deposit - - - (12) Net cash provided by investing activities (149) (44) (100) (560) Cash flows from financing activities Payment of long-term loans from banks - - - (645) Proceeds from issuance of debentures, net of issuance costs - - - 1,066 Cash dividend paid (939) (280) (185) (639) Interest paid - - (20) (177) Net cash provided by financing activities (939) (280) (205) (395) Changes in cash and cash equivalents (631) (188) 147 855 Balance of cash and cash equivalents at beginning of the period 826 246 225 56 Balance of cash and cash equivalents at end of the period 195 58 372 911 * Reclassified Cellcom Israel Ltd. (An Israeli Corporation) Reconciliation for Non-GAAP Measures EBITDA The following is a reconciliation of net income to EBITDA: Six- month period ended June 30, Convenience translation into US dollar 2008 2008 2007 NIS US$ NIS millions millions millions Net income 503 150 420 Income tax 198 59 209 Financing expenses 234 70 94 Financing income (80) (24) (33) Other (income) expenses (18) (5) - Depreciation and amortization 373 111 382 EBITDA 1,210 361 1,072 EBITDA (CONTINUED) Three- month period ended Year ended June 30, December 31, Convenience translation into US dollar 2008 2008 2007 2007 NIS US$ NIS NIS millions millions millions millions Net income 230 69 212 875 Income tax 92 27 112 310 Financing expenses 127 38 39 287 Financing income (18) (5) (20) (140) Other (income) expenses - - 1 3 Depreciation and amortization 186 55 194 775 EBITDA 617 184 538 2,110 Free Cash Flow The following table shows the calculation of free cash flow: Six- month period ended June 30, Convenience translation into US dollar 2008 2008 2007 NIS US$ millions NIS millions millions Cash flows from operating activities 652 194 * 896 Cash flows from investing activities (266) (79) * (277) Free Cash Flow 386 115 619 Free Cash Flow (CONTINUED) Three- month period ended Year ended June 30, December 31, Convenience translation into US dollar 2008 2008 2007 2007 NIS US$ NIS NIS millions millions millions millions Cash flows from operating activities 457 136 * 452 * 1,810 Cash flows from investing activities (149) (44) * (100) * (560) Free Cash Flow 308 92 352 1,250

* Restated due to the new presentation of Statements of Cash Flows in accordance with International Financial Reporting Standards (IFRS), following the Company's adoption of IFRS as of January 1, 2008.

---------------------------------

(1) Please view "Use of Non-GAAP financial measures" section at the end of this press release.

(2) EBITDA for the second quarter 2008 benefited from a one-time reversal of rent expenses in the amount of approximately NIS 14 million, mainly related to previous years. See Cost of revenues below.

(3) See Financing Expenses, net below.

(4) The Company's market share was calculated based on the subscribers' figures as of June 30, 2008, published by the Company and Partner Communications Ltd. ("Partner"). The Company estimated the number of subscribers for that date, of two additional Israeli cellular operators - Pelephone Communications Ltd. ("Pelephone") and Mirs Communications Ltd. ("Mirs"), since Pelephone has not yet published this information, and Mirs does not publish this information.

(5) Restated due to the new presentation of Statements of Cash Flows in accordance with International Financial Reporting Standards (IFRS), following the Company's adoption of IFRS as of January 1, 2008.

Company Contact Shiri Israeli Investor Relations Coordinator investors@cellcom.co.il Tel: +972-52-998-9755 Investor Relations Contact Ehud Helft / Ed Job CCGK Investor Relations ehud@gkir.com / ed.job@ccgir.com Tel: (US) +1-866-704-6710 / +1-646-213-1914

Cellcom Israel Ltd.

CONTACT: Company Contact: Shiri Israeli, Investor Relations
Coordinator, investors@cellcom.co.il, Tel: +972-52-998-9755; Investor
Relations Contact: Ehud Helft / Ed Job, CCGK Investor Relations,
ehud@gkir.com / ed.job@ccgir.com, Tel: (US) +1-866-704-6710 / +1-646-213-1914

012 Smile.Communications Reports Q2 2008 Results: Record Operating Income & Adjusted EBITDA, Up 22% & 11% YOY, RespectivelyBroadband and Voice Services Continue to Generate Strong Revenues as Preparations Continue for Launch of Mobile MVNO & Examining the Feasibility of WiMAX Technology

PETACH TIKVA, Israel, August 13 /PRNewswire-FirstCall/ -- 012 Smile.Communications (NASDAQ Global Market and TASE: SMLC), a growth-oriented provider of communication services in Israel, today reported its financial results for the three and six-month periods ended June 30, 2008.

Highlights - Strong revenues: NIS 264 million ($79 million). This represents an increase of 10% in core services revenues compared with Q2 2007 after exclusion of revenues from hubbing services and the impact of the shekel-dollar exchange rate - Record profits: EBITDA (adjusted) up 11% year-over-year to a record of NIS 63 million ($18.7 million); Operating income up 22% year-over-year to a record of NIS 33 million ($9.8 million) - Continued strong margin improvement: gross margin reached 33% compared with 30% in Q2 2007; adjusted EBITDA margin rose to 24% compared with 21% in Q2 2007; operating margin increased to 12% from 10% in Q2 2007 - Strong Cash-Flow performance: Operating cash-flow for the quarter was NIS 45 million ($13.4 million) - On-track performance in VOB-based domestic telephony business: continued growth in line with goals and business plan, achieving more than 75,000 subscriber lines to date - Progress towards entrance into the mobile market: the Company applied for full MVNO commercial license, and continues examining the feasibility of WiMAX technology Results for the Second Quarter

Revenues: Revenues for the second quarter of 2008 were NIS 264 million ($79 million) compared with NIS 275 million for the second quarter of 2007. The decrease reflects management's decision in late 2007 to de-emphasize its low-margin hubbing services (wholesale traffic), resulting in a 47% year-over-year decline in this activity, and the continued decline in the average shekel-dollar exchange rate (a 19% decline in Q2 2008 average exchange rate compared with Q2 2007), which significantly reduced the shekel value of the Company's dollar-linked revenues (approximately 33% of the Company's total revenues). Excluding these two factors, revenues from core activities increased by approximately 10% on a year-over-year basis.

Operating Income: Operating Income for the second quarter increased by 22%, compared with the second quarter of 2007, to a record NIS 33 million ($9.8 million). Excluding the effect of one-time merger-related expenses, operating income reached NIS 35 million ($10.4 million), a 22% increase compared with the second quarter of 2007.

Merger-Related Expenses: During the second quarter, the Company recorded final one-time expenses related to the merger of 012 Golden Lines and Smile.Communications, in the amount of NIS 1.9 million ($0.6 million). The accumulated amount of merger-related expenses is lower than the original budget for the process.

Adjusted EBITDA: Adjusted EBITDA for the second quarter increased by 11% to NIS 63 million ($18.7 million) compared with NIS 57 million for the second quarter of 2007. Adjusted EBITDA margin for the quarter reached 24% compared with 21% in the second quarter of 2007. For more information regarding the use of non-GAAP financial measurements, please see the notes contained in this press release.

Financing Expenses: The Company incurred a high level of non-cash financing expenses again during the second quarter. This was mainly due to exchange rate differentials of NIS 14 million on the Company's dollar-denominated balances as a result of a 6% decline in the shekel-dollar exchange rate during the second quarter, and the quarter's 2.4% increase in the Israeli CPI to which the Company's bonds are linked. For the second quarter of 2008, financing expenses totaled NIS 25 million ($7.4 million) compared with NIS 13 million in the second quarter of 2007.

Net Results: Net income for the second quarter of 2008 was NIS 5.6 million ($1.7 million), or NIS 0.22 ($0.07) per share, compared to NIS 5.4 million, or NIS 0.29 per share, in the second quarter of 2007. Excluding one-time expenses related to the merger, and the non-cash financial expenses described above, the Company's non-GAAP earnings for the second quarter of 2008 was NIS 22.4 million ($ 6.7 million), or NIS 0.88 ($0.26) per share.

Segment Overview - Broadband: second quarter revenues from core broadband activities were NIS 131.5 million ($39.2 million), an increase of 15% compared with NIS 113.9 million in the second quarter of 2007, reaching 49.9% of the Company's total revenues (compared to 41% in the second quarter of 2007). The Company's rate of recruitment of new VOB-based telephony subscribers for the quarter was in line with its plan for achieving a 5% market share by the end of 2009. To date, the Company has accumulated over 75,000 subscriber lines. - Traditional telephony: second quarter revenues from traditional telephony services were NIS 132.1 million ($39.4 million), representing approximately 50% of the Company's revenues. This is a decrease of 9% compared with the second quarter of 2007, reflecting a reduced level of hubbing services and the decline in the average shekel-dollar exchange rate, as mentioned above

Balance Sheet: The Company's cash, cash equivalents and short term investments as of June 30, 2008 were NIS 260 million ($77.6 million), compared with NIS 47.9 million as of June 30, 2007 and NIS 230 million as of December 31, 2007. The Company has no bank debt as of June 30, 2008, compared to NIS 151 million at the end of the second quarter of 2007 and NIS 2 million as of December 31, 2007.

On July 14, 2008, the Company announced that Midroog Ltd., an Israeli financial rating company which is affiliated with Moody's, has reissued the A1 rating that it originally awarded to the Company's Series A debentures issued in 2007. Midroog concluded that the A1 rating would continue if the Company issues new debt of up to NIS 320 million (approximately $95 million).

Comments of Management

Commenting on the results, Ms. Stella Handler, CEO of 012 Smile.Communications, said, "We are pleased to report another quarter of strong revenues and record profits for 012 Smile.Communications. In line with our strategic plan, during the second quarter we continued to grow our core businesses, expand our VOB subscriber base and prepare for our entrance to the mobile market."

Ms. Handler continued, "We recorded our final merger-related expenses during the quarter, bringing the entire process to a close on schedule and under budget. In parallel, we continued to sign up new VOB subscribers at a strong and steady rate, on track with our goal of achieving a 5% market share by the end of 2009. Also during the quarter, we applied for a full MVNO license to enable us to enter the mobile market, and requested an expansion of our trial WiMAX license. After studying the draft policy published by Israel's Ministry of Communications for the purpose of holding public hearings on the WiMAX frequency allocation process, we intend to submit our opinion of the proposed process."

Conference Call Information

Management will host an interactive teleconference to discuss the results today, August 13, 2008, at 09:00 a.m. EDT. To participate, please call one of the following access numbers several minutes before the call begins: 1-888-407-2553 from within the U.S. or 1866-9586-867 from within Canada, 0-800-917-5108 from within the U.K., or +972-3-918-0691 from other international locations. The call will also be broadcast live through the company's Website, http://www.012.net/, and will be available there for replay during the next 30 days.

Non-GAAP Measurements

Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statement of Operations (Non-GAAP Basis). Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude amortization of acquired intangible assets, as well as certain business combination accounting entries. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statement of Operations.

Notes: A: EBITDA

EBITDA is a non-GAAP financial measure generally defined as earnings before interest, taxes, depreciation and amortization. We define adjusted EBITDA as net income before financial income (expenses), net, impairment and other charges, expenses recorded for stock compensation in accordance with SFAS 123(R), income tax expenses and depreciation and amortization.

We present adjusted EBITDA as a supplemental performance measure because we believe that it facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structure (most particularly affecting our interest expense given our recently incurred significant debt), tax positions (such as the impact of changes in effective tax rates or net operating losses) and the age of, and depreciation expenses associated with, fixed assets (affecting relative depreciation expense). Adjusted EBITDA should not be considered in isolation or as a substitute for net income or other statement of operations or cash flow data prepared in accordance with GAAP as a measure of our profitability or liquidity. Adjusted EBITDA does not take into account our debt service requirements and other commitments, including capital expenditures, and, accordingly, is not necessarily indicative of amounts that may be available for discretionary uses. In addition, adjusted EBITDA, as presented in this press release, may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated.

B: Convenience Translation to Dollars

For the convenience of the reader, the reported NIS figures of June 30, 2008 have been presented in thousands of U.S. dollars, translated at the representative rate of exchange as of June 30, 2008 (NIS 3.3520 = U.S. Dollar 1.00). The U.S. Dollar ($) amounts presented should not be construed as representing amounts receivable or payable in U.S. Dollars or convertible into U.S. Dollars, unless otherwise indicated.

About 012 Smile.Communications

012 Smile.Communications is a growth-oriented communication services provider in Israel with a leading market position, offering a wide range of broadband and traditional voice services. Its broadband services include broadband Internet access with a suite of value-added services, specialized data services and server hosting, as well as new innovative services such as local telephony via voice over broadband and a WiFi network of hotspots across Israel. Traditional voice services include outgoing and incoming international telephony, hubbing, roaming and signaling and calling card services. 012 Smile.Communications services residential and business customers, as well as Israeli cellular operators and international communication services providers through its integrated multipurpose network, which allows it to provide services to almost all of the homes and businesses in Israel.

012 Smile is a 72.4 % owned subsidiary of Internet Gold Golden Lines Ltd. one of Israel's leading communications groups with a major presence across all Internet-related sectors. In addition to 012 Smile, its 100% owned Smile.Media subsidiary manages a growing portfolio of Internet portals and e-Commerce sites. Internet Gold and 012 Smile are part of the Eurocom Communications Group. 012 Smile's shares trade on the NASDAQ Global Market and on the Tel Aviv Stock Exchange.

For additional information about 012 Smile.Communications Ltd., please visit the Company's investors' site at http://www.012.net/.

. Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the industry, changes in the regulatory and legal compliance environments, the failure to manage growth and other risks detailed from time to time in 012 Smile.Communications' filings with the Securities Exchange Commission. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

012 Smile.Communications Ltd. Consolidated Balance Sheets Convenience translation into U.S. dollars $1 = NIS 3.352 June 30 December 31 June 30 2008 2007 2008 (Unaudited) (Audited) (Un- audited) NIS thousands $ thousands Current assets Cash and cash equivalents 94,078 229,895 28,066 Short-term investments 166,243 - 49,595 Trade receivables, net 195,991 194,964 58,470 Parent company receivable 773 6,553 231 Related parties receivables 1,535 2,161 458 Prepaid expenses and other 21,264 19,804 6,344 current assets Deferred taxes 7,904 9,396 2,358 Total current assets 487,788 462,773 145,522 Investments Long-term trade receivables 3,550 3,460 1,059 Assets held for employee 19,116 18,453 5,703 severance benefits Total investments 22,666 21,913 6,762 Property and equipment, net 165,084 160,211 49,249 Other assets, net 292,300 295,592 87,202 Other intangible assets, net 188,506 202,376 56,237 Goodwill 411,171 411,171 122,664 Total assets 1,567,515 1,554,036 467,636 012 Smile.Communications Ltd. Consolidated Balance Sheets (cont'd) Convenience translation into U.S. dollars $1 = NIS 3.352 June 30 December 31 June 30 2008 2007 2008 (Unaudited) (Audited) (Un- audited) NIS thousands $thousands Current liabilities Short-term bank credit - 2,407 - Current maturities of long-term obligations 91,036 3,558 27,159 and debentures Accounts payable 132,730 164,535 39,597 Loan from the parent company 108,517 105,733 32,374 Other payables and accrued expenses 119,857 101,661 35,756 Total current liabilities 452,140 377,894 134,886 Long-term liabilities Debentures 391,673 437,460 116,848 Long-term obligations 990 2,836 295 Long-term trade and other payables - 20,458 - Deferred taxes 27,470 29,027 8,195 Liability for employee severance benefits 32,037 32,318 9,558 Total long-term liabilities 452,170 522,099 134,896 Total liabilities 904,310 899,993 269,782 Shareholders' equity and parent company investment 663,205 654,043 197,854 Total liabilities, shareholders' equity and parent company investment 1,567,515 1,554,036 467,636 012 Smile.Communications Ltd. Consolidated Statements of Operations Convenience translation into dollars $1 = NIS 3.352 Six-month Three-month Six-month period period ended period ended ended June 30 June 30 June 30 2008 2007 2008 2007 2008 (Unaudited) (Unaudited) (Unaudited) (Un- (Un- audited) audited) NIS thousands $thousands Revenues 263,607 275,245 526,964 551,298 157,209 Costs and expenses Cost of revenues 177,367 192,379 354,057 387,352 105,626 Selling and marketing expenses 36,048 40,479 74,564 78,168 22,245 General and administrative 15,479 13,963 28,281 26,524 8,437 expenses Other charges 1,903 1,444 6,705 1,907 2,000 Total costs and 230,797 248,265 463,607 493,951 138,308 expenses Income from 32,810 26,980 63,357 57,347 18,901 operations Financial expenses, 24,758 12,640 47,345 23,760 14,124 net Income before tax expenses 8,052 14,340 16,012 33,587 4,777 Tax expenses 2,486 8,941 4,764 12,426 1,421 Net income 5,566 5,399 11,248 21,161 3,356 Income per share Basic and diluted earnings per share (in NIS) 0.22 0.29 0.44 1.15 0.13 Weighted average number of ordinary shares used in calculation of basic and diluted earnings 25,360,000 18,370,000 25,360,000 18,370,000 25,360,000 per share 012 Smile.Communications Ltd. Reconciliation Table of Non-GAAP Measures (NIS in thousands) Convenience translation into dollars $1 = NIS 3.352 Six-month Three-month Six-month period period ended period ended ended June 30 June 30 June 30 2008 2007 2008 2007 2008 (Unaudited) (Unaudited) (Unaudited) (Un- (Un- audited) audited) NIS thousands $ thousands GAAP operating 32,810 26,980 63,357 57,347 18,901 income Adjustments Amortization of acquired intangible assets 6,820 7,985 13,640 15,969 4,069 Other charges 1,903 1,444 6,705 1,907 2,000 Expenses recorded for stock compensation in accordance with SFAS 123(R) 950 - 950 - 284 Non-GAAP adjusted operating income 42,483 36,409 84,652 75,223 25,254 GAAP tax expenses (benefit), net 2,486 8,938 4,764 12,426 1,421 Adjustments Amortization of acquired intangible assets Included in tax expenses, net 1,841 2,315 3,683 4,631 1,099 Non-GAAP tax expenses (benefit), net 4,327 11,253 8,447 17,057 2,520 Net income as 5,566 5,402 11,248 21,161 3,356 reported Taxes on income 2,486 8,938 4,764 12,426 1,421 Other charges 1,903 1,444 6,705 1,907 2,000 Expenses recorded for stock compensation in accordance with SFAS 123(R) 950 - 950 - 284 Financial expenses 24,758 12,640 47,345 23,760 14,124 Depreciation and amortization 26,963 28,085 53,506 55,118 15,962 Adjusted EBITDA 62,626 56,509 124,518 114,372 37,147 For further information, please contact: Ms. Idit Azulay 012 Smile.Communications Ltd +972-72-2003848 i.azulay@smile.net.il

012 Smile.communications Ltd.

CONTACT: For further information, please contact: Ms. Idit Azulay, 012
Smile.Communications Ltd, +972-72-2003848, i.azulay@smile.net.il

AT&T U-verse Voice Launches in WisconsinNext-Generation Voice Service Offers Convenient Integrated Wired and Wireless Features, Reliable Call Quality

MILWAUKEE, Aug. 13 /PRNewswire-FirstCall/ -- AT&T Inc. today announced the availability of AT&T U-verse(SM) Voice to customers in parts of Wisconsin, bringing consumers a next-generation digital voice service that is delivered over the AT&T U-verse Internet Protocol (IP) network. U-verse Voice brings together your AT&T home phone, wireless, broadband and TV services -- all on one bill -- with unique features that provide a new level of integration, convenience and control.

AT&T U-verse Voice completes the company's IP triple play and is available to all new and existing U-verse TV customers in Wisconsin communities. This includes parts of more than 100 communities that include the Milwaukee, Racine, Kenosha, Green Bay, Appleton, Oshkosh, Fond du Lac and Sheboygan areas. With U-verse Voice, customers receive new features that highlight the benefits of having advanced video, broadband, wireless and home phone services from a single provider.

"AT&T U-verse Voice is one more way we're making all of our AT&T services work together for our customers and connecting them to their world," said John DeVaul, AT&T general manager for Wisconsin. "U-verse Voice uses the power of IP to enhance the calling experience. Just like U-verse TV has changed the way people watch television, U-verse Voice will change the way people use their home phone."

AT&T U-verse Voice is a managed IP-based service that is delivered over AT&T's fiber-rich network, unlike many Voice over IP (VoIP) providers that offer best-effort digital phone services over the public Internet. This allows U-verse Voice customers to enjoy great sound quality and reliability, as well as unmatched calling features that combine with your AT&T U-verse TV, broadband and wireless services from AT&T.

"The expansion of our IP-based services to our customers further demonstrates AT&T's strong commitment to roll out new technology to our state's residents and businesses," said Scott T. VanderSanden, president of AT&T Wisconsin. "Our deployment of U-verse Voice is an integral part of the major investment that AT&T has delivered in Wisconsin as a result of progressive reform legislation that the Legislature and governor enacted."

AT&T U-verse Voice has advanced features that go beyond traditional phone service and many competitors' offerings, including:

-- Combined AT&T U-verse Voice and AT&T wireless voice mail with U-verse Messaging, which provides a single voice mailbox that can be accessed from any phone line or PC.

-- U-verse Central, an online management portal that gives you the option to easily and conveniently manage your call preferences, voice mail, contacts, call history and more from any PC, in addition to the ability to control call preferences from your home phone.

-- An online voice mailbox to check, manage and forward voice mail from the online portal, much like an e-mail inbox.

-- Call History, which enables you to view your most recent incoming and outgoing calls online or to view your most recent incoming calls on your AT&T U-verse TV screen.

-- Click to Call, which will initiate a call from your home phone to any number in your Call History with one click of a mouse or the U-verse TV remote control.

-- An online Address Book that is accessible from any PC and allows you to Click to Call from your home phone, to create and share contact groups with other U-verse Voice customers or to set up distribution lists for voice messages.

-- Locate Me, a feature that provides simultaneous ringing on up to four wireless or landline numbers so that you never miss an important incoming call.

-- Traditional calling features, such as Call Screening, Call Blocking, Do Not Disturb and privacy settings.

All U-verse Voice customers will have 911 service. Where available via the local 911 network, U-verse Voice customers will have Enhanced 911 (E911) service.

U-verse TV customers can choose from two flexible U-verse Voice calling plans:

-- U-verse Voice Unlimited, which includes unlimited local and nationwide minutes to any location in the U.S., Canada or U.S. territories for $40 a month.

-- U-verse Voice 1000, which includes 1,000 Call Anywhere minutes to any location in the U.S. or U.S. territories for $30 a month.

A second phone line, which shares the primary line's calling plan, can be added for $20 a month, and each plan features competitive international rates with no recurring monthly charge. Professional installation is included for new AT&T U-verse customers who order U-verse TV and Voice.

AT&T's wireless customers who subscribe to an AT&T Unity(SM) plan can call any AT&T U-verse Voice number from their mobile phone as part of the nation's largest free calling community without using any wireless Anytime Minutes.

For additional information on AT&T U-verse, visit http://uverse.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/.

(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 and detailed disclaimer information, please review this announcement in the AT&T newsroom at http://www.att.com/newsroom.

AT&T Inc.

CONTACT: Chris Bauer of AT&T Inc., +1-414-520-3535, cbauer@attnews.us

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

China Information Security Technology, Inc. Promotes Key Management Personnel

SHENZHEN, China, Aug. 12 /Xinhua-PRNewswire-FirstCall/ -- China Information Security Technology, Inc., ("China Information Security," "CIST" or the "Company"), a leading provider of Information Security and 3S (Geographic Information Systems - GIS, Global Positioning Systems - GPS and Remote Sensing - RS) services in China, today announced the promotion of key management personnel.

To further enhance the management of its rapidly expanding operations, the Board of Directors of CIST approved the following management changes, effective September 1, 2008:

Appointment of Mr. Zhi Xiong (Robin) Huang to Chief Technology Officer:

Mr. Robin Huang, the Company's Chief Operating Officer and director was appointed to the position of Chief Technology Officer, responsible for managing all subsidiaries' intellectual properties of all entities and creating complementary product lines to increase add-on sales opportunities. From his role as COO Mr. Huang understands what resources can be utilized to create comprehensive technical solutions delivery to clients' sites. Due to increased research and development responsibilities of his new position, Mr. Huang will resign from his position as Chief Operating Officer and as a member of our Board of Directors as of the effective date of the changes.

Mr. Huang, 38, was appointed as Chief Operating Officer on May 10, 2007 and has served as a member of the Company's Board of Directors since November 28, 2006, and as the Vice-President of the Company's subsidiary, Information Security Technology (China) Co., Ltd., since its incorporation in January 2006. Since September 2002, Mr. Huang has also served as a Deputy General Manager of iASPEC, where he supervises iASPEC's research and development activities and consults on various types of sophisticated, technical issues. Between July 2001 and March 2002, Mr. Huang served as the General Manager of product development of Shenzhen Runsheng Information Systems Company Ltd. and was responsible for overseeing general operations. He holds a B.S. in computer science from Hehai University in China and has over fifteen years' experience in information systems. Mr. Huang is currently a Director of the Shenzhen Computer Association and is an Expert with the Shenzhen Expert Association, a nonprofit organization.

Promotion of Mr. Yifu Liu to Chief Operating Officer:

Mr. Yifu Liu was promoted to the position of Chief Operating Officer, responsible for ensuring corporate efficiency at all levels and creating synergies and cost savings from all entities. He will be responsible for post- merger operations integration and resource sharing to ensure timely delivery of solutions to clients. Mr. Liu will be instrumental in delivering more complex, cross entity solutions to clients flawlessly.

Mr. Liu, age 35, has over ten years of experience in corporate operations, strategy management and market development. Since August 2002, Mr. Liu has served as Deputy General Manager of iASPEC, and was promoted to the position of General Manager in November 2006. Prior to that, Mr. Liu served from August 1997 to July 2002, as Senior Sales Manager of Shenzhen Jingpinjia Electronics Company Ltd. Mr. Liu holds a Bachelor's degree in Electronics Engineering from Zhejiang University.

Promotion of Mr. Zhiqiang Zao to Chief Administrative Officer and Board Director:

Mr. Zhiqiang Zhao was promoted to the position of Chief Administrative Officer, also responsible for post-merger operations and corporate culture integration. He will also be responsible for ensuring CIST's compliance with all rules and regulations for all permits and licenses that the Company holds and for their renewal. Mr. Zhao was also appointed as a new member of the Company's Board of Directors so that he can directly communicate critical administrative and compliance issues to the Board of Directors and resolve them in a timely manner.

Mr. Zhao has extensive experience in corporate administration and human resources management. Mr. Zhao served as Human Resource Manager of iASPEC since April 2005, and as Deputy General Manager of iASPEC since July 2006. Prior to that, Mr. Zhao served from March 2003 to March 2005, as Supervisor of Human Resources for the Foxconn Technology Group. Mr. Zhao holds a Bachelor's degree in Mechanical & Electrical Engineering from Inner Mongolia University.

"Mr. Huang, Mr. Liu and Mr. Zhao and have served our company for a long time and we have benefited from their expertise in technology, corporate operations, administration and management," said Mr. Jiang Huai Lin, CEO of China Information Security. "As members of our management team, they will assist us with the management of more than 700 employees, a radical increase from approximately 100 employees in 2006. We are confident that their expertise will ensure efficiency in running our organization as well as in the delivery of solutions to clients."

About China Information Security Technology, Inc.

Through its wholly-owned Chinese subsidiary, China Information Security is focused on the development and implementation of large scale, high-tech information security and 3S (Geographic Information Systems - GIS, Global Positioning Systems - GPS and Remote Sensing - RS) related projects. The Company provides a broad portfolio of fully integrated solutions and services, including Information Security (First Responder Coordination Platform, Intelligent Border Control System and Residence Card Information Management System), 3S and Product Sales and Services. Through its exclusive contractual arrangement with iASPEC Software Company Limited (iASPEC), China Information Security has the licenses to numerous registered and copyrighted software applications in China. In addition, iASPEC is considered the Company's variable interest entity, and its financial data and information is consolidated into the Company's accounts. To learn more about the Company, please visit the corporate website at http://www.chinacpby.com/ .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Information Security Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the significance of the personnel promotions; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov/). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

For more information, please contact: Company Contact: Mr. Michael Lin Vice President, Investor Relations China Information Security Technology, Inc. Tel: +1-949-743-0868 Email: mlin@chinacpby.com Web: http://www.chinacpby.com/ Investor Relations Contact: Mr. Crocker Coulson President CCG Investor Relations Tel: +1-646-213-1915 (NY office) Email: crocker.coulson@ccgir.com Web: http://www.ccgir.com/

China Information Security Technology, Inc.

CONTACT: Company, Mr. Michael Lin, Vice President, Investor Relations of
China Information Security Technology, Inc., +1-949-743-0868, or
mlin@chinacpby.com; Investor Relations, Mr. Crocker Coulson, President of CCG
Investor Relations for China Information Security Technology, Inc. +1-646-213-
1915 (NY office), or crocker.coulson@ccgir.com

Web site: http://www.chinacpby.com/
http://www.ccgir.com/

China Information Security Technology, Inc. Announces Record Second Quarter 2008 Results

Revenue Climbs 134.6% Year-Over-Year to $24.7 Million

SHENZHEN, China, Aug. 12 /Xinhua-PRNewswire-FirstCall/ -- China Information Security Technology, Inc., ("China Information Security," "CIST" or the "Company"), a leading provider of Information Security and 3S (Geographic Information Systems - GIS, Global Positioning Systems - GPS and Remote Sensing - RS) services in China, today reported strong financial results for the second quarter ended June 30, 2008.

Second Quarter 2008 Highlights On GAAP basis: -- Revenues increased to $24.7 million, from $5.4 million -- Gross profit rose to $11.1 million, from $4.8 million -- Operating income increased to $7.7 million, from $4.1 million -- Net income was $7.1 million, or $0.15 per basic and diluted share On a non-GAAP basis*: -- Revenues increased 134.6% year over year to $24.7 million, from $10.5 million -- Gross profit increased 103.6% to $11.1 million -- Operating income increased 99.7% to $8.3 million, with a 33.5% operating margin* -- Net income grew 67.9% to $7.7 million, or $0.17 per basic and diluted share* * Includes the consolidation of iASPEC and excludes Stock Based Compensation ("SBC") and Amortization of Intangible Assets. See Table 1 for a reconciliation of Net Income and EPS to exclude SBC and Amortization of Intangible Assets.

"We are pleased to announce record revenues in the second quarter of 2008, as product line extensions led to new contract wins and increased geographical presence in China," said Mr. Jiang Huai Lin, Chairman and CEO of the Company. "In addition, we achieved great improvement in our technological capabilities through the acquisition of two newly acquired patents and twelve new registered and copyrighted software products. At this point, we remain confident in meeting or exceeding our previously stated goals for the year 2008."

During the quarter, the Company achieved the following milestones: -- Approval on May 21, 2008, to list its securities on The Nasdaq Global Select Market ("Nasdaq"). The common stock is now traded on Nasdaq under the symbol "CPBY" -- Successful expansion of its geographical presence to 20 provinces and provincial cities across China, including Guangdong, Inner Mongolia, Fujian, Shanxi, Beijing, Shanghai, Sichuan and Macao -- Signed new contracts in the second quarter with a combined value of $25.3 million, including a Police Geographic Information System ("PGIS") contract for Heyuan City, Guangdong Province, valued at $2.68 million, a PGIS contract for An'xi City, Fujian Province, valued at $1.55 million, a PGIS contract for the Shenzhen City Traffic Police Bureau in Guangdong Province, valued at $2.38 million, and the Intelligent Anti-Stowaway System contract for the Shenzhen General Station of Exit and Entry Frontier Inspection, valued at $2.3 million -- Significant improvement of its technological capabilities with two newly-acquired patents and twelve registered and copyrighted software products -- Successful passage of a Quality Assurance inspection by the Ministry of Public Security of the PRC for its Intelligent Border Control System, which is expected to enhance the Company's brand recognition and facilitate market expansion in the intelligent border control sector -- Achievement of an estimated $21.92 in backlog contracts, consisting of $15.34 million related to uncompleted contracts as of June 30, 2008, and $6.58 million related to newly signed, but not yet implemented contracts Second Quarter 2008 Results On a non-GAAP basis*:

Revenue in the second quarter increased to $24.7 million, up 134.6% from $10.5 million for the same period in 2007. This increase was primarily due to acquisitions of Information Security Software ("ISS"), Bocom Technology and Geo, product and geographical expansion, as well as the launch of several large-scale systems integration projects. During the quarter, the Company signed new contracts with over twenty provinces and provincial cities in China.

Gross profit in the second quarter of 2008 increased to $11.1 million, up 103.6% from $5.5 million for the same period in 2007. Gross margin for the second quarter of 2008 was 45.1% compared with 52.0% in the comparable period in 2007. This decline in gross margin was due to significantly higher costs for procured hardware and other subcontracting costs related to the implementation of several large-scale systems integration projects.

Administrative expenses increased to $2.3 million in the second quarter of 2008, from $0.6 million in the same period last year. The increase was mainly attributable to an increase in administrative staff and increased administrative costs such as salary, office operation expenses and legal and audit fees in connection with the expansion of the Company's operations during the 2008 period. In addition, $0.31 million of stock-based compensation was charged to administrative expenses in connection with the Company's 2007 Equity Incentive Plan. As a percentage of revenue, administrative expenses increased to 9.4% for the three months ended June 30, 2008, from 5.8% for the same period in 2007, which was generally in line with the increase in revenue.

Research and development expenses for the second quarter of 2008 increased to $0.5 million from $0.4 million for the same period of 2007. The increase in research and development expenses was mainly attributable to the consolidation of Geo.

Selling expenses for the quarter ended June 30, 2008 increased to $0.64 million, from $0.27 million and remained stable as a percentage of revenues.

Income from operations for the second quarter of 2008, increased to $8.3 million, or 99.7%, from $4.1 million for the same period in 2007.* Income from operations as a percentage of revenue decreased to 33.5% during the second quarter of 2008, from 39.4% for the same period in 2007. The decrease was due to higher costs for procured hardware and other subcontracting costs related to the implementation of several large-scale systems integration projects, and the increase in expenses due to expansion.

The Company's subsidiaries, Information Security Technology ("IST"), ISS and Bocom Technology, and its VIE, iASPEC are subject to EIT at a rate of 18% of assessable profits in 2008. Geo, iASPEC's newly acquired subsidiary, is subject to EIT at a rate of 15% of assessable profits as a High-Tech Enterprise. However, after offsetting accumulated losses from prior years, Geo had no assessable profit subject to EIT for the three months ended June 30, 2008. In addition, IST is a Foreign Investment Enterprise or FIE engaged in the advanced technology industry which entitles it to a two-year exemption from EIT followed by a 50% tax exemption for the next three years. Income tax expenses for the three months ended June 30, 2008 was $0.32 million.

Net income increased 67.9% to $7.7 million in the second quarter of 2008, or $0.17 per basic and diluted share, compared to $4.6 million during the same period of 2007, or $0.12 and $0.11 per basic and diluted share, respectively.*

* Includes the consolidation of iASPEC and excludes Stock Based Compensation ("SBC") and Amortization of Intangible Assets. See Table 1 for a reconciliation of Net Income and EPS to exclude SBC and Amortization of Intangible Assets. Six Month Financial Results On a non-GAAP basis*:

For the first six months of 2008, revenue increased to $39.1 million, up 149.5%, from $15.7 million for the same period in 2007. Gross profit as a percentage of revenue decreased to 45.4% for the first six months of 2008, from 55.1% for the same period in 2007. Net income in the first six months increased to $11.8 million, or $0.26 per fully diluted share, up 76.7% from $6.7 million for the same period in 2007, or $0.17 per fully diluted share.

* Includes the consolidation of iASPEC and excludes Stock Based Compensation ("SBC") and Amortization of Intangible Assets. See Table 1 for a reconciliation of Net Income and EPS to exclude SBC and Amortization of Intangible Assets. Financial Condition

As of June 30, 2008, the Company had $25.8 million in cash and cash equivalents and short term investments. Shareholders' equity increased to $98.6 million, up from $74.0 million on December 31, 2007.

Recent Developments (1) iASPEC Equity Transfer

On July 1, 2008, 100% of the equity ownership of iASPEC, CIST's variable interest entity, was consolidated by Mr. Jiang Huai Lin, CIST's Chairman and Chief Executive Officer and the previous majority owner of iASPEC, through the transfer of 1,527,855 shares of restricted common stock of CIST previously owned by him, to the minority owner Mr. Jin Zhu Cai.

Management believes that the transaction solidifies the economic relationship between CIST and iASPEC and better aligns Mr. Cai's interests with the interests of CIST shareholders. CIST will continue to receive 100% of the economic benefits of iASPEC.

(2) Subsidiaries Name Changes

On May 15, 2008, Fortune Fame International Investment Limited, CIST's wholly owned Hong Kong subsidiary, changed its name to Information Security Software Investment Limited, or ISSI, and Information Security Development Technology (Shenzhen) Company Ltd., ISSI's wholly owned Chinese subsidiary, changed its name to Information Security Software (China) Co., Ltd., or ISS. Also on May 15, 2008, Bocom Multimedia Display Company Ltd., the Company's wholly owned Hong Kong subsidiary, changed its name to Information Security International Investment and Development Limited.

The name changes were implemented to more accurately reflect CIST's business and commercial objectives and provide it with a better corporate image and brand name for expansion.

(3) Management Team Additions & Promotions

To further enhance the management of a rapidly growing enterprise, on Aug 7, 2008, the board of directors approved the following management changes effective 9/1/2008:

-- Mr. Zhiqiang Zhao was promoted to the position of Chief Administrative Officer responsible for post-merger integration and for permits and license compliance issues. Mr. Zhao was also appointed as a member of the Company's board of directors. -- Mr. Yifu Liu was promoted to the position of Chief Operating Officer, responsible for ensuring corporate efficiency and post-merger operations integration and timely delivery of solutions to clients. -- Mr. Robin Huang resigned from his position as Chief Operating Officer and was promoted to the position of Chief Technology Officer, responsible for integrating intellectual properties and creating comprehensive technical solutions delivery to clients' sites. Due to the increased responsibilities associated with his new position, Mr. Huang also resigned from his position as a member of the Company's board of directors. Business Outlook

The Company plans to leverage its strength and brand recognition in Guangdong Province in order to win business across China. Accordingly, the Company intends to manage its national operations from five centers located in Shenzen, Guangzhou, Beijing, Nanchang, Wuhan and five representative offices located in Changsha, Nanning, Chengdu, Xi'an and Shanghai.

Management expects that the acquisitions of ISS, Bocom Technology, and Geo will also accelerate the Company's geographical expansion, enhance its technological capabilities or competitive advantages, provide licensing and recurring revenue opportunities, and serve to fulfill its planned expansion into civil-use GIS markets. Furthermore, the Company expects to capitalize on its strong research and development capabilities and outstanding contract win ratio, to seize contract opportunities nationwide during Phase II of China's "Golden Shield Project."

In light of CIST's unique capabilities in the areas of remote sensing and aerial mapping, the Company was able to provide technical assistance for the Sichuan earthquake in May 2008 by helping to develop maps with its advanced digital aerophotographic cameras. This effort has strengthened the Company's brand recognition and is expected to lead to additional opportunities for the Company as it continues to be an active participant in the Sichuan rebuilding process.

Management expects that the Company will continue to see strength in its PGIS product line due to its dominant national market position, its geographical expansion to new regions and additional follow-on opportunities in connection with product line extensions. The Company's success in winning follow-on orders for Intelligent Border Control products should serve as a live demonstration model for other port cities in China and also in the civil- use sector. Similarly, its recent win of the Phase II Shenzhen Residence Card Management project will serve as a model for large-scale rollouts, positioning CIST for other follow-on opportunities, should the residence card program be extended to other cities in China.

"Our business momentum continues to accelerate due to recent success in expanding geographically, developing new products and acquiring new technological and software capabilities," said Mr. Lin. "Each successive win increases our brand recognition, competitive advantages and opportunities for follow-on orders. We believe that we are uniquely positioned for sustained future growth."

Fiscal Year 2008 Guidance

The Company is maintaining its 2008 financial guidance for pro forma revenues of $85 million, and pro forma net income of $27 million, which excludes any non-cash charges as a result of employee stock option grants in 2007 and 2008, and amortization of intangible assets associated with the recent acquisitions of ISS, Bocom Technology and Geo.

* Table 1 Q2 2008 Reconciliation of Operating, Net Income and EPS to Exclude SBC and Amortization of Intangible Assets 3 Mos. Ended 6 Mos. Ended June 30, 2008 June 30, 2008 Operating income 7,672,046 11,406,767 Stock Based Compensation ("SBC") 310,367 694,332 Amortization 294,323 512,177 Operating income (without SBC and Amortization) 8,276,736 12,613,276 Net income 7,050,343 10,629,323 Stock Based Compensation ("SBC") 310,367 694,332 Amortization 294,323 512,177 Net income (without SBC and Amortization) 7,655,033 11,835,832 Weighted Average Shares Basic 45,738,420 45,611,286 Diluted 46,354,183 46,090,091 Earnings Per Share (without SBC and Amortization) Basic $0.17 $0.26 Diluted $0.17 $0.26 Non-GAAP Financial Measures

The Company uses non-GAAP financial measures in this press release due to the inclusion of financial information of iASPEC which is considered to be the Company's "Predecessor" for these purposes. Effective as of July 1, 2007, iASPEC became the Company's variable interest entity, or VIE, whose operation results began to be reflected in the financial data starting from July 1, 2007. Therefore, the accompanying financial data for the three months ended June 30, 2008, reflect the results of operations of CIST, its subsidiaries and its VIE, while the financial data for the three months ended June 30, 2007 only reflects the results of operations of CIST and its subsidiaries. We have provided non-GAAP financial measures through the reallocation of net related party revenues from iASPEC before it became a consolidated entity, which is not in accordance with US GAAP. The reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure is provided in the following section. The Company's management believes that these non-GAAP financial measures are necessary because the abnormally high financial ratios calculated using GAAP would be misleading to investors and would not reflect the substance of the Company's performance.

Conference Call Information

Management will conduct a conference call at 9:00 am EST on Wednesday, August 13, 2008 to discuss its second quarter 2008 results. To participate in the live conference call, please dial the call-in number five to ten minutes prior to the scheduled conference call time:

Date: Wednesday, August 13, 2008 Time: 9:00 am EST Conference Call-In #: 800 688 0796 International Callers: 617 614 4070 Conference Passcode #: 663 605 25 Webcast Link: http://www.visualwebcaster.com/event.asp?id=50785 For those unable to participate in the call at this time, please call: Replay Call-In #: 888 286 8010 International Callers: 617 801 6888 Replay Passcode: 802 129 94 Replay Expires on: Wednesday, August 20, 2008 About China Information Security Technology, Inc.

Through its wholly-owned Chinese subsidiary, China Information Security is focused on the development and implementation of large scale, high-tech information security and 3S (Geographic Information Systems - GIS, Global Positioning Systems - GPS and Remote Sensing - RS) related projects. The Company provides a broad portfolio of fully integrated solutions and services, including Information Security (First Responder Coordination Platform, Intelligent Border Control System and Residence Card Information Management System), 3S and Product Sales and Services. Through its exclusive contractual arrangement with iASPEC Software Company Limited (iASPEC), China Information Security has the licenses to numerous registered and copyrighted software applications in China. In addition, iASPEC is considered the Company's variable interest entity, and its financial data and information is consolidated into the Company's accounts. To learn more about the Company, please visit the corporate website at http://www.chinacpby.com/ .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Information Security Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the significance of the Company's contract wins, its newly acquired intellectual property and its expansion into other regions in China; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov/). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

-- FINANCIAL TABLES FOLLOW -- China Information Security Technology, Inc. Consolidated Statements of Income (NON-GAAP) Three-Months Ended June 30, 2008 and 2007 Non-GAAP Three Three Reallocation Three Months Months Of Months Ended Ended Related Ended June 30, June 30, Party June 30, 2008 2007 Revenue 2007 Revenue - third parties $24,710,743 $1,750,162 $8,781,422 $10,531,584 Revenue - related party -- 3,657,433 (3,657,433) -- TOTAL REVENUE 24,710,743 5,407,595 5,123,989 10,531,584 Cost of Revenue (13,569,305) (597,831) (4,462,125) (5,059,956) GROSS PROFIT 11,141,438 4,809,764 661,864 5,471,628 Administrative expenses (2,323,421) (370,218) (243,865) (614,083) Research and development expenses (503,622) (74,048) (324,791) (398,839) Fee to iASPEC under the Turnkey Agreement -- (45,000) (45,000) Selling expenses (642,349) (175,132) (93,208) (268,340) INCOME FROM OPERATIONS 7,672,046 4,145,366 -- 4,145,366 Other income, net 41,698 20,267 20,267 Interest income 23,385 16,077 16,077 Minority interest (364,906) -- -- Income tax expense (321,880) 377,444 377,444 NET INCOME $7,050,343 $4,559,154 $-- $4,559,154 WEIGHTED AVERAGE NUMBER OF SHARES Basic 45,738,420 39,418,720 NA Diluted 46,354,183 39,835,665 NA EARNINGS PER SHARE Basic $0.15 $0.12 NA Diluted $0.15 $0.11 NA CHINA INFORMATION SECURITY TECHNOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS JUNE 30, 2008 AND DECEMBER 31, 2007 JUNE 30, DECEMBER 31, 2008 2007 (UNAUDITED) ASSETS CURRENT ASSETS Cash and cash equivalents $ 19,996,344 $ 19,755,182 Short-term investments 5,820,891 14,966,752 Accounts receivable 29,598,697 11,721,306 Advances to suppliers 2,267,122 1,791,440 Inventories 10,033,264 4,779,930 Other receivables 2,161,116 974,475 TOTAL CURRENT ASSETS 69,877,434 53,989,085 Deposit for business acquisition -- 8,989,022 Long-term investment 2,983,206 -- Property and equipment 23,554,537 13,826,896 Intangible assets 11,402,798 4,894,397 Goodwill 21,075,627 7,154,395 TOTAL ASSETS $ 128,893,602 $ 88,853,795 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Short-term loan $ 727,611 -- Accounts payable 10,782,171 $ 3,079,304 Advances payable 1,332,893 394,383 Tax payable 1,042,042 326,026 Amount due to related parties 554,546 -- Other payables and accrued expenses 1,838,880 987,483 TOTAL CURRENT LIABILITIES 16,278,143 4,787,196 MINORITY INTEREST 14,001,871 10,060,657 STOCKHOLDERS' EQUITY Common stock, par $0.01; Authorized capital, 75,000,000 shares; Shares issued and outstanding (June 30, 2008: 47,162,404 and December 31, 2007: 45,639,396) 206,121 190,891 Additional paid-in capital 67,100,252 57,421,150 Reserve 1,755,552 1,755,552 Retained earnings 23,799,872 13,170,549 Accumulated other comprehensive Income 5,751,791 1,467,800 TOTAL STOCKHOLDERS' EQUITY 98,613,588 74,005,942 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 128,893,602 $ 88,853,795 CHINA INFORMATION SECURITY TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) SIX MONTHS ENDED JUNE 30, 2008 AND 2007 SIX MONTHS SIX MONTHS ENDED ENDED JUNE 30, 2008 JUNE 30, 2007 OPERATING ACTIVITIES Net income $ 10,629,323 $ 6,698,005 Adjustments to reconcile net income to net cash provided from (used in) operations: Depreciation 1,716,543 102,548 Amortization of intangible assets 512,177 -- Stock-based compensation 694,332 -- Minority interest 409,906 -- Gain on disposition of property and equipment (31,840) -- Changes in operating assets and liabilities, net of effects of business acquisitions Increase in inventories (3,354,664) -- Increase in accounts receivable (12,297,321) (225,893) Increase in related parties receivable -- (5,465,413) Increase in prepaid expenses - related party -- (4,632,036) Decrease in other receivables 79,190 -- Increase in accounts payable 4,513,062 80,513 (Decrease) in advances payable (1,899,266) -- (Decrease) Increase in other payables and accrued expenses (449,708) 391,887 Increase (Decrease) in tax payable 364,236 (38,367) Net cash provided by (used in) operating activities 885,970 (3,088,756) INVESTING ACTIVITIES Cash acquired in Bocom acquisition 713,793 -- Cash acquired in Geo acquisition 2,443,677 -- Consideration paid for business -- acquisition of Geo (6,998,811) Short-term investments (5,655,605) -- Proceeds from sale of property and equipment 1,146,671 -- Advances to third parties -- 340,999 Amount due to director -- (22,865) Advances to related parties -- (335,233) Purchase of property and equipment (7,644,057) (5,092,775) Capitalized and purchased software development costs (162,788) -- Proceeds from sale of marketable securities 14,966,752 -- Net cash used in investing activities (1,190,368) (5,109,874) FINANCING ACTIVITIES Borrowings under short-term loan 727,611 -- Repayment of bank loan (1,086,312) -- Advances repaid to a third party company -- (205,984) Proceeds from first private placement -- 13,311,211 Net cash (used in) provided by financing activities (358,701) 13,105,227 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (663,099) 4,906,597 EFFECT OF EXCHANGE RATE CHANGES ON CASH 904,261 309,802 CASH AND CASH EQUIVALENTS, BEGINNING 19,755,182 172,316 CASH AND CASH EQUIVALENTS, ENDING $ 19,996,344 $ 5,388,715

Revenues by segment for the three and six months ended June 30, 2008 and 2007 are as follows:

Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2008 2007 2008 2007 Revenues (1) Information $10,038,770 $1,750,162 $13,580,284 $2,963,480 Security Segment GIS Segment 9,869,108 3,657,433 16,933,576 5,476,256 Product Sales Segment 4,802,865 -- 8,601,309 -- $24,710,743 $5,407,595 $39,115,169 $8,439,736 Percentage to Revenue Information 41 % 32 % 35 % 35 % Security Segment GIS Segment 40 % 68 % 43 % 65 % Product Sales Segment 19 % -- 22 % -- (1) Revenues by operating segments excludes intercompany transactions. For more information, please contact: Company Contact: Mr. Michael Lin Vice President, Investor Relations China Information Security Technology, Inc. Tel: +1-949-743-0868 Email: mlin@chinacpby.com Web: http://www.chinacpby.com/ Investor Relations Contact: Mr. Crocker Coulson President CCG Investor Relations Tel: +1-646-213-1915 (NY office) Email: crocker.coulson@ccgir.com Web: http://www.ccgir.com/

China Information Security Technology, Inc.

CONTACT: Company, Mr. Michael Lin, Vice President, Investor Relations of
China Information Security Technology, Inc., +1-949-743-0868, or
mlin@chinacpby.com; Investor Relations, Mr. Crocker Coulson, President of CCG
Investor Relations for China Information Security Technology, Inc. +1-646-213-
1915 (NY office), or crocker.coulson@ccgir.com

Web site: http://www.chinacpby.com/
http://www.ccgir.com/

Exponent to Present at the Sidoti & Company's Seventh Annual West Coast Emerging Growth Institutional Investor Forum

MENLO PARK, Calif., Aug. 12 /PRNewswire-FirstCall/ -- Exponent, Inc. today announced that Michael Gaulke, Chairman and Chief Executive Officer, and Richard Schlenker, Chief Financial Officer, will present to the investment community at Sidoti & Company's Seventh Annual West Coast Emerging Growth Institutional Investor Forum on September 8, 2008 at 3:25 p.m. PDT, at the Ritz-Carlton Hotel, San Francisco, CA.

The presentation will be webcast and can be accessed via the company's website at http://www.exponent.com/investors/.

About Exponent

Exponent is an engineering and scientific consulting firm providing solutions to complex problems. Exponent's multidisciplinary organization of scientists, physicians, engineers, and business consultants brings together more than 90 technical disciplines to address complicated issues facing industry and government today. The firm is best known for analyzing accidents and failures to determine their causes, but in recent years it has become more active in assisting clients with their new products to help prevent problems in the future. In addition, Exponent evaluates human health and environmental concerns to find cost-effective solutions.

Exponent may be reached at (888) 656-EXPO, info@exponent.com, or http://www.exponent.com/.

Exponent, Inc.

CONTACT: Exponent, 1-888-656-EXPO, info@exponent.com

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

GeoEye Releases Second Quarter 2008 Earnings and Explanation of Financial Restatements

DULLES, Va., Aug. 12 /PRNewswire-FirstCall/ -- GeoEye, Inc. reported today that the Company is restating its financial statements for the years ended December 31, 2005, 2006 and 2007 and quarterly information for such periods and for each of the quarters ended September 30, 2007 and March 31, 2008, for the following reasons:

(Logo: http://www.newscom.com/cgi-bin/prnh/20080625/LAW528LOGO)

(1) As part of the NextView program, the National Geospatial-Intelligence Agency agreed to pay approximately $237 million to share the cost of constructing the Company's GeoEye-1 satellite. The Company completed a detailed study analyzing its tax accounting methods in which the Company discovered that it had not correctly included cost-share payments received from the U.S. Government under the NextView program in its taxable income. As a result, the Company must include previously unrecorded expenses for interest and penalties on unpaid taxes which will reduce net income for 2005, 2006 and 2007 and create a deferred tax asset and corresponding liability on the balance sheet, as indicated in the table below. However, the Company filed an application for change in method of accounting with the Internal Revenue Service ("IRS") on August 8, 2008 which management believes will eliminate all of the interest and penalties for unpaid taxes. As a result, management expects that the financial impact of these interest and penalties will be reversed in the third quarter of 2008. Management believes that such reversal will result in an increase in net income for the third quarter of 2008 equal to the reduction in net income in 2005, 2006 and 2007 relating to unpaid taxes. Management also believes a second result of this accounting method change is a change in the timing of the payment of taxes on the cost-sharing payments, as described in more detail in its Current Report on Form 8-K, filed on August 12, 2008.

(2) The Company completed a detailed study regarding the application of Section 382 of the Internal Revenue Code of 1986 ("Section 382") on ownership changes. Application of the findings of this study confirmed that, as previously reported, the Company had lost the use of net operating losses although we lost fewer net operating losses than reported on the Company's Report on Form 10-K for the year ended December 31, 2007. This resulted in a decrease in income tax expense and related tax liabilities from the amounts reported on the 2007 Form 10-K because the previously identified ownership change occurred earlier than previously reported and thus eliminated fewer net operating losses.

(3) In connection with an internal review, the Company identified a decrease of $3.0 million in direct expenses in 2007 due to an overstatement of imagery purchased from third parties associated with imagery sales in 2007.

The net after tax impact of these restatements is shown in the table below:

$ Millions Net Income (NI) Amount expected to be reversed in 2008 2005 2006 2007 as an increase to NI As Reported ($24.3) $23.4 $42.4 - Impact of Cost Share related issue ($2.0) ($13.4) ($15.6) $31.0 - Impact of revised NOL availability $4.3 $0.0 - Impact of reduced direct expenses $2.0 $0.0 Restated ($26.3) $10.0 $33.1

The Company intends to file the required restatements as soon as practicable.

Second Quarter Operating Performance

GeoEye also reported that its revenues for the second quarter of 2008 were $34.2 million as compared to $48.3 million for the second quarter of 2007. (Revenue for the second quarter of 2007 is unchanged in the restatement.) Income from operations for the quarter was $5.3 million as compared to $25.7 million for the second quarter of 2007. (Income from operations for the second quarter of 2007 is unchanged in the restatement.) Net Income for the second quarter of 2008 was $2.4 million vs. a restated $11.2 million net income for the second quarter of 2007. (Net income for the second quarter of 2007 was restated down by $12.2 million from $23.4 million for the tax issues discussed above.)

The primary reason for the revenue and net income decreases is a reduction in orders from the National Geospatial-Intelligence Agency (NGA). The Company believes in light of the delay of GeoEye-1, NGA may have re-allocated imagery orders to our competitor because their NextView satellite was launched last fall and is now operational. As reported earlier today, GeoEye-1's planned target launch date is moving to September 4, 2008.

For the first half of the year, revenues were $68.6 million through June 30, 2008 as compared to $85.1 million for the first half of 2007. (Revenue for the first half of 2007 is unchanged in the restatement.) Again, the primary reason for the revenue decrease is a reduction in orders from NGA.

Net income for the six-month period ending June 30, 2008 was $3.4 million. This compares to a restated loss for the first half of 2007 of $2.4 million. (2007 net loss for the first six months of 2007 was restated down by $4.4 million from $6.8 million to a net loss $2.4 million for the tax issues discussed above. Net income for the six-month period ending June 30, 2008 was also restated.)

GeoEye's cash balance at June 30, 2008 was $221.5 million as compared to $234.3 million at December 31, 2007. This cash balance, coupled with the remaining milestone payments from NGA of $43.5 million, provides more than sufficient cash to fund the remaining amounts due to complete the GeoEye-1 program. As of June 30, 2008, we have expended approximately $421 million of the $502 million program. The remaining $81 million includes insurance premium payments (which were made in July and August, 2008), final amounts due to contractors and contingencies. In addition, we have accrued -- but not yet paid -- amounts due to contractors of $43 million. Total cash needs to complete the program, including contingencies, are $124 million.

Selected quarter-end operating results for the Company are as follows (dollars in thousands):

GEOEYE, INC. Condensed Consolidated Statements of Operations (Unaudited; in thousands, except share and per share data) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 (As restated) (As restated) Revenues $34,219 $48,254 $68,621 $85,050 Direct expenses 19,335 15,162 39,095 34,272 Gross profit 14,884 33,092 29,526 50,778 Selling, general and administrative expenses 9,604 7,385 18,544 13,979 Income from operations 5,280 25,707 10,982 36,799 Net loss (gain) on satellite insurance proceeds (9) - 1,141 36,053 Interest expense, net 1,366 1,897 2,449 5,119 Unrealized (gain) loss on derivative instrument (97) (839) 1,668 999 Income (loss) before provision for income taxes 4,020 24,649 5,724 (5,372) Provision for income taxes 1, 600 13,462 2,278 (2,934) Net income (loss) $2,420 $11,187 3,446 $(2,438) Earnings per common share - basic $0.13 $0.64 $0.19 $(0.14) Earnings per common share - diluted $0.12 $0.58 $0.17 $(0.14)

Above financial statements also include the restated results of the quarter

end March 31, 2008. GEOEYE, INC. Condensed Consolidated Balance Sheets (Unaudited; in thousands, except share data) June 30, December 31, 2008 2007 ASSETS (As restated) Current assets: Cash and cash equivalents $221,498 $234,324 Receivables net of allowances of $342 and $738, respectively 27,845 44,517 Other current assets 11,320 6,419 Total current assets 260,663 285,260 Property, plant and equipment, at cost, less accumulated depreciation of $14,654 and $11,817, respectively 97,396 88,418 Satellites and related rights, at cost, less accumulated depreciation and amortization of $12,219 and $10,311, Respectively 368,423 346,267 Goodwill 32,612 32,612 Intangible assets 15,702 17,068 Other non-current assets 14,096 16,653 Deferred tax asset 107,139 106,406 Total assets $896,031 $892,684 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $23,665 $17,684 Amounts payable to subcontractors 42,818 55,967 Accrued interest payable 17,188 17,292 Current portion of deferred revenue 13,823 9,499 Income tax payable 25,924 30,142 Income tax reserve-FIN 48 55,958 51,103 Total current liabilities 179,376 181,687 Long-term debt 247,145 246,789 Deferred revenue, net of current portion 193,860 193,860 Income tax reserve-FAS 5 78,091 78,091 Total liabilities 698,472 700,427 Commitments and contingencies Stockholders' equity: Common stock, par value $0.01; 50,000,000 shares authorized; 17,997,441 shares and 17,868,153 issued and outstanding at June 30, 2008 and December 31, 2007, respectively 146 147 Additional paid-in capital 201,826 199,969 Retained earnings (4,413) (7,859) Total stockholders' equity 197,559 192,257 Total liabilities and stockholders' equity $896,031 $892,684

Above financial statements also include the restated results of the quarter

end March 31, 2008.

For more information about the launch of the GeoEye-1 satellite, please visit: http://launch.geoeye.com/. To receive timely, ongoing details about the development of GeoEye-1 products and services, sign up at http://launch.geoeye.com/LaunchSite/news/signup.aspx.

About GeoEye

GeoEye is the premier provider of geospatial information for the national security community, strategic partners, resellers and commercial customers to help them better map, measure and monitor the world. The Company is recognized as the industry's trusted imagery expert for delivering reliable service and the exceptional quality of its imagery products and solutions. It operates a constellation of Earth imaging satellites, mapping aircraft and has an international network of ground stations, a robust imagery archive, and advanced imagery processing capabilities for developing innovative geospatial products and solutions. The Company also provides support to academic institutions and non-governmental organizations through the GeoEye Foundation. Headquartered in Dulles, Virginia, GeoEye is a public company listed on the Nasdaq stock exchange under the symbol GEOY. It maintains a comprehensive Quality Management System (QMS) and has achieved company-wide ISO accreditation. For more information, visit http://www.geoeye.com/.

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

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Securities Exchange Act of 1934, as amended. Statements including words such as "anticipate", "believe", or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. GeoEye's actual financial and operational results could differ materially from those anticipated. Additional information regarding these risk factors and uncertainties is described more fully in the Company's SEC filings. A copy of all SEC filings may be obtained from the SEC's EDGAR web site, http://www.sec.gov/, or by contacting: William L. Warren, Senior Vice President, General Counsel and Secretary, at 703-480-5672.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20080625/LAW528LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com GeoEye, Inc.

CONTACT: Mark Brender of GeoEye, +1-703-480-9562,
brender.mark@geoeye.com; or Amy Estes of LeGrand Hart, +1-303-298-8470,
ext. 218, for GeoEye

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

Blizzard Entertainment(R) and NetEase to Introduce StarCraft(R) II and Battle.net(R) Platform Into Mainland China

SHANGHAI, China, Aug. 12 /Xinhua-PRNewswire/ -- Blizzard Entertainment, Inc. and NetEase.com, Inc. today announced an agreement to license Blizzard Entertainment(R)'s StarCraft(R) II, Warcraft(R) III: Reign of Chaos(TM), Warcraft III: The Frozen Throne(TM), and Battle.net(R) platform, which provides online multiplayer services for these games, to Shanghai EaseNet Network Technology Limited, an affiliated company of NetEase.com, Inc. Blizzard Entertainment and NetEase have also established a joint venture, which will provide support for the operation of the licensed games and Battle.net platform in China.

''NetEase has been a leader in the Chinese game market, and we look forward to working with them to deliver high-quality entertainment to Chinese gamers,'' said Mike Morhaime, CEO and cofounder of Blizzard Entertainment. ''This partnership is a sign of our continued commitment to our players in China and to the local industry.''

William Ding, CEO of NetEase, stated, ''We're excited to be partnering with Blizzard Entertainment to bring StarCraft II and Battle.net to China. We hope to combine Blizzard Entertainment's expertise in developing world-class games with NetEase's strength in online-game operation in China to bring the best gaming experiences to our players.''

The term of the license will be three years, with a mutual one-year renewal period, commencing from the commercial release of StarCraft II in the PRC. Under the agreements, Shanghai EaseNet will pay a revenue-based royalty over the license period, while NetEase will pay a milestone-based license fee and fund and guarantee certain additional payments and operating expenses in connection with the joint venture.

About Blizzard Entertainment, Inc.

Best known for blockbuster hits including World of Warcraft(R) and the Warcraft(R), StarCraft(R), and Diablo(R) series, Blizzard Entertainment, Inc. ( http://www.blizzard.com/ ), a division of Activision Blizzard , is a premier developer and publisher of entertainment software renowned for creating some of the industry's most critically acclaimed games. Blizzard Entertainment's track record includes ten #1-selling games and multiple Game of the Year awards. The company's online-gaming service, Battle.net(R), is one of the largest in the world, with millions of active users.

About NetEase.com Inc.

NetEase.com, Inc. is a leading China-based Internet technology company that pioneered the development of applications, services and other technologies for the Internet in China. NetEase's online communities and personalized premium services have established a large and stable user base for the NetEase websites. In particular, NetEase provides online game services to Internet users through the licensing or in-house development of massively multiplayer online role-playing games, including Fantasy Westward Journey, Westward Journey Online II, Westward Journey Online III, and TianXia 2.

Cautionary Note Regarding Forward-looking Statements: Information in this press release that involves Blizzard Entertainment's expectations, plans, intentions or strategies regarding the future are forward-looking statements that are not facts and involve a number of risks and uncertainties. Blizzard Entertainment generally uses words such as ''outlook,'' ''will,'' ''could,'' ''would,'' ''might,'' ''remains,'' ''to be,'' ''plans,'' ''believes,'' ''may,'' ''expects,'' ''intends,'' ''anticipates,'' ''estimate,'' future,'' ''plan,'' ''positioned,'' ''potential,'' ''project,'' ''remain,'' ''scheduled,'' ''set to,'' ''subject to,'' ''upcoming,'' and similar expressions to help identify forward-looking statements. Factors that could cause Blizzard Entertainment's actual future results to differ materially from those expressed in the forward-looking statements set forth in this release include, but are not limited to, sales of Blizzard Entertainment's titles, shifts in consumer spending trends, the seasonal and cyclical nature of the interactive game market, Blizzard Entertainment's ability to predict consumer preferences among competing hardware platforms (including next-generation hardware), declines in software pricing, product returns and price protection, product delays, retail acceptance of Blizzard Entertainment's products, adoption rate and availability of new hardware and related software, industry competition, rapid changes in technology and industry standards, protection of proprietary rights, litigation against Blizzard Entertainment, maintenance of relationships with key personnel, customers, vendors, and third-party developers, domestic and international economic, financial and political conditions and policies, foreign exchange rates, integration of recent acquisitions and the identification of suitable future acquisition opportunities, Activision Blizzard's success in integrating the operations of Activision Publishing and Vivendi Games in a timely manner, or at all, and the combined company's ability to realize the anticipated benefits and synergies of the transaction to the extent, or in the timeframe, anticipated. Other such factors include additional risk factors identified in Activision Blizzard's most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q. The forward-looking statements in this release are based upon information available to Blizzard Entertainment and Activision Blizzard as of the date of this release, and neither Blizzard Entertainment nor Activision Blizzard assumes any obligation to update any such forward-looking statements. Forward-looking statements believed to be true when made may ultimately prove to be incorrect. These statements are not guarantees of the future performance of Blizzard Entertainment or Activision Blizzard and are subject to risks, uncertainties and other factors, some of which are beyond its control and may cause actual results to differ materially from current expectations.

This press release also contains statements of a forward-looking nature regarding NetEase's expectations, plans, intentions or strategies that are forward-looking statements and involve a number of risks and uncertainties.. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to uncertainty as to the popularity of the games being licensed by Blizzard or the profitability of the license and joint venture arrangements between NetEase and Blizzard and other risks outlined in NetEase's filings with the Securities and Exchange Commission. NetEase does not undertake any obligation to update this forward-looking information, except as required under applicable law.

For further information, please contact: Lisa Jensen Vice President, Global PR, Blizzard Entertainment Tel: +1-949-854-6200 Fax: +1-949-854-7900 Email: ljensen@blizzard.com Roger Sun PR Director, Blizzard China Tel: +86-21-3133-0700 Email: rsun@blizzard.com Brandi Piacente Investor Relations, The Piacente Group Tel: +1-212-481-2050 Email: brandi@corp.netease.com

NetEase.com Inc.

CONTACT: Lisa Jensen, Vice President, Global PR of Blizzard Entertainment,
+1-949-854-6200, or fax, +1-949-854-7900, or ljensen@blizzard.com; or Roger
Sun, PR Director of Blizzard China, +86-21-3133-0700, or rsun@blizzard.com; or
Brandi Piacente, Investor Relations of The Piacente Group, +1-212-481-2050, or
brandi@corp.netease.com, for NetEase

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

RadioShack Corporation Prices $325 Million 2.50% Convertible Senior Notes due 2013

FORT WORTH, Texas, Aug. 12 /PRNewswire-FirstCall/ -- RadioShack Corporation announced today the pricing of its offering of $325 million aggregate principal amount of 2.50% convertible senior notes due 2013 through an offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The aggregate principal amount offered was increased from the previously announced $300 million. In connection with the offering, RadioShack granted the initial purchasers a 30-day option to purchase up to $50 million aggregate principal amount of additional notes solely to cover over-allotments, if any. The sale of the note is expected to close on August 18, 2008, subject to satisfaction of customary closing conditions.

The senior unsecured notes will bear interest at a rate of 2.50% per year, payable semi-annually in arrears, beginning on February 1, 2009.

The notes will be convertible, subject to certain conditions, into cash and shares of RadioShack's common stock, if any, at an initial conversion rate of 41.2414 shares of common stock per $1,000 principal amount of the notes. The conversion rate is subject to adjustment in certain circumstances. The initial conversion rate represents an initial conversion price of approximately $24.25 per share, or a conversion premium of approximately 32.50% to the closing price of RadioShack's common stock on August 12, 2008, which was $18.30 per share.

RadioShack may not redeem the notes prior to their maturity. Holders of the notes may require RadioShack to purchase all or a portion of their notes, in cash, upon the occurrence of certain fundamental changes involving RadioShack.

RadioShack estimates that the net proceeds of this offering will be approximately $316.7 million (or approximately $365.6 million if the initial purchasers' over-allotment option is exercised in full), after deducting discounts and commissions and estimated expenses. RadioShack intends to use approximately $40.1 million of the net proceeds of this offering to pay the net cost of convertible note hedge and warrant transactions that it expects to enter into with affiliates of certain initial purchasers, which are referred to as the option counterparties (representing the cost of the convertible note hedge transactions, partially offset by the proceeds of the warrant transactions). RadioShack also intends to use approximately $100 million of the net proceeds from this offering to repurchase shares of its common stock concurrently with the offering in privately negotiated transactions. RadioShack expects to use the remaining proceeds for general corporate purposes, including as a source of working capital to replace RadioShack's $300.0 million revolving credit facility, which is scheduled to terminate in June 2009.

In connection with the pricing of the notes, RadioShack entered into privately-negotiated convertible note hedge transactions relating to shares of its common stock initially issuable upon conversion of the notes with the option counterparties. RadioShack has also entered into privately-negotiated warrant transactions relating to shares of its common stock with the option counterparties, pursuant to which it may be obligated to issue shares of its common stock. The convertible note hedge transactions have a strike price equal to the initial conversion price of the notes and the warrant transactions have a strike price of $36.60 per share, which is 100% higher than the closing price of RadioShack's common stock on August 12, 2008. The convertible note hedge transactions are expected to reduce the potential dilution to RadioShack's common stock upon any conversion of the notes. Although the warrant transactions could separately have a dilutive effect to the extent that the price of RadioShack's common stock exceeds the applicable strike price of the warrants, from RadioShack's perspective, the convertible note hedge transactions and warrant transactions, taken together, will have the net economic effect of increasing the conversion price of the notes.

If the initial purchasers exercise their over-allotment option to purchase additional notes, the notional size of the convertible note hedge transactions and warrant transactions will be automatically increased so that they also relate to a number of shares of RadioShack's common stock initially issuable upon conversion of the additional notes.

In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, RadioShack has been advised that the option counterparties and/or their respective affiliates expect to, concurrently with, or shortly after, the pricing of the notes, enter into various over-the-counter derivative transactions with respect to RadioShack's common stock and/or purchase shares of RadioShack's common stock in secondary market transactions. These activities could have the effect of increasing or preventing a decline in the price of RadioShack's common stock concurrently with or following the pricing of the notes. In addition, the option counterparties and/or their respective affiliates expect to modify their hedge position following the pricing of the notes from time to time by entering into or unwinding various derivative transactions with respect to RadioShack's common stock and/or by purchasing or selling RadioShack's common stock in secondary market transactions (and are likely to do so during any observation period related to the conversion of the notes). These transactions and activities could have the effect of increasing, preventing a decline in or adversely impacting the value of RadioShack's common stock and/or the value of the notes.

This press release is neither an offer to sell nor a solicitation of an offer to buy the securities described herein and shall not constitute an offer, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful under the securities laws of any such jurisdiction. The offering of the notes will be made only by means of an offering memorandum relating to the offering. The notes and the common stock issuable on conversion of the notes have not been and will not be registered under the Securities Act or any state securities laws, and are being offered in the United States only to qualified institutional buyers in reliance on Rule 144A under the Securities Act. Unless so registered, the notes and common stock issuable on conversion of the notes may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements reflect management's current views and projections regarding economic conditions, retail industry environments and company performance. Factors that could significantly change results include, but are not limited to, sales performance, economic conditions, product demand, expense levels, competitive activity, interest rates, changes in the company's financial condition, availability of products, the regulatory environment and factors affecting the retail category in general. Any forward-looking statement that the company makes speaks only as of the date of such statement, and the company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional information regarding these and other factors is described in the preliminary offering memorandum relating to the offering and in the company's filings with the SEC, including its most recent annual report on Form 10-K and quarterly report on Form 10-Q.

Photo: http://www.newscom.com/cgi-bin/prnh/20000518/DATH047LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com RadioShack Corporation

CONTACT: Martin O. Moad, Vice President and Controller of RadioShack
Corporation, +1-817-415-2383, investor.relations@radioshack.com

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

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