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Dow Jones Insight-2008 Presidential Election Media Pulse: Obama Maintains 'Headlines' Lead in Majority of Battleground States; Media Coverage of Key Issues Levels Off

NEW YORK, Oct. 28 /PRNewswire/ -- Barack Obama continued to widen his lead on many fronts in the media coverage race during the past week, but with a week to go until Election Day, opponent John McCain managed to narrow the gap in some battleground states, according to results from the Dow Jones Insight-2008 Presidential Election Media Pulse.

During the period of October 19 through 25, Obama increased his lead in total number of headline mentions in four battleground states -- Nevada (by 21 percentage points, on the heels of visits by him and his wife), North Carolina (by 10 points), Florida (4 points) and Missouri (3 points). He lost ground, though, in Colorado (where his lead shrunk by 6 percentage points, with a strong push by McCain there), Ohio (2 points) and Pennsylvania (2 points).

The headline race appears closest in Pennsylvania, a battleground state where Obama has a comfortable lead in public polls but where the McCain camp insists its private polls show the state at a dead heat. For the week of October 19 to 25, headline mentions for the candidates showed a 51%-49% split, with coverage barely leaning Obama's way.

Of the issues being discussed, the economy and taxes were the top two. In comparison to the other battleground states, Pennsylvania's coverage differed slightly, with the issue of "experience" showing up among the top 10 tracked issues, which was not the case in the other battleground states. The everyman message of "Joe the plumber" also continued to resonate in Pennsylvania as in the other battlegrounds, being mentioned more than the issues of jobs, health care and the financial bailout. International issues, including both wars, did not make the top 10.

Issues Coverage Hits a Plateau but Obama's Share of It Does Not

With Election Day approaching, the volume of mainstream and social media coverage of the two candidates on key election issues has leveled off considerably from the sharp increases we'd seen in our past several analyses, but Barack Obama still managed to widen his lead in terms of the number of issues on which he received higher coverage than John McCain.

In our latest analysis, covering the period September 26 through October 26, Obama achieved an overall coverage advantage on 14 of the 26 issues tracked, while McCain led on just one issue and 11 were categorized as ties, or as having a difference of fewer than six percentage points between the two candidates.

According to analysis of 20,000 mainstream media and 2 million social media sources by Dow Jones Insight during the period of September 26 through October 26, when the issues are grouped by type we again see modest changes in coverage:

-- Discussion of the various issues related to the economic crisis made up 46% of the total this time around, down one point from 47%

-- The percentage of talk regarding non-economic domestic issues, like education and same-sex marriage, decreased one point to 16% from 17%

-- Candidate-specific issues (such as faith and race), which accounted for 24% of the discussion, were up one point from 23%

-- Issues related to the wars and the Middle East stayed level at 13% of the total

Of the individual issues that changed hands, Obama added taxes and immigration to his side of the ledger, both of which had previously been too close to call, while Israel moved from the Obama side to a tie, resulting in the net gain of one issue for the Democrat. McCain led on North Korea this time, giving up his former coverage advantages on the economy, the housing slump and Social Security, all three of which are now ties.

In terms of total issues-related volume, for the period September 26 through October 26 there were 1,666,011 mentions of the candidates in proximity to one or more of the 26 issues in all tracked sources. That represented an increase of 3.5% over the 1,609,083 issues-related mentions in the previous rolling 30-day period.

Bush Still Gets Some Press in this Election Frenzy

In taking a look at how the end-point of Bush's presidency has impacted his coverage in the media, Dow Jones Insight found that Bush had an 11% share of voice, compared to Obama's 49% and McCain's 40%, when counting headline mentions from September 27 to October 26 in approximately 20,000 mainstream news publications and media Web sites. The loss of attention for President Bush is more apparent in the social media landscape than in the traditional media, with Bush hardly ever making it into the headlines, getting just 2% of all social media headline mentions of the three during the same timeframe.

When the president has gotten mentioned in the mainstream media of late, it's generally in reference to the economy or the financial sector bailout. For the economy, from September 27 to October 26, Bush received headline mentions a bit less than one-third as often as either McCain or Obama, with 11,762 Bush mentions compared to 31,116 for McCain and 31,106 for Obama. For the bailout, the president saw much more comparable volumes, netting 11,310 headline mentions to McCain's 15,138 and Obama's 14,300.

No 'Surprise' in October as Obama Rolls Along

The last full month of the 2008 presidential election is nearly over and we have not had the "October surprise" many political analysts have quietly speculated might occur. Instead, the mainstream media and the blogosphere have seen little excitement through October, at least as measured by media mentions. McCain had a strong September in the media, passing Obama for the first time during the general campaign. However, it was short-lived, with Obama re-emerging as the lead in media coverage early in October and expanding his lead every week since. Meanwhile, Palin, who was greatly responsible for McCain's rise in media coverage in early September, continues to gain more coverage than Biden -- topping him by more than 2 to 1 on most days -- but her coverage has remained below that of McCain's in the weeks following the vice presidential debate.

The Dow Jones Insight-2008 Presidential Election Media Pulse provides a high-level view of a competitive media landscape and demonstrates how candidates and issues are covered in the media and how that coverage changes over time. Dow Jones Insight combines proven research methodologies, trusted content and advanced text-mining and visualization tools to deliver strategic qualitative and quantitative media measurement metrics. Organizations use the analysis to nurture their reputation, demonstrate the effectiveness of their communications strategies and achieve business objectives. The platform processes nearly a million articles, Web pages, blogs and message board posts per day.

The charts are available at http://dowjonesinsight.blogspot.com/ and can be reproduced in print and online media. For further information about the Dow Jones Insight solutions visit http://www.dowjonesinsight.com/ and to learn more about The Dow Jones Insight-2008 Presidential Election Media Pulse, please contact Shannon Sullivan at +1 609 627 2312 or shannon.sullivan@dowjones.com.

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.

Dow Jones & Company

CONTACT: Shannon Sullivan of Enterprise Media Group Public Relations for
Dow Jones & Company, +1-609-627-2312, Fax, +1-609-627-2301,
shannon.sullivan@dowjones.com

Web site: http://www.dowjones.com/
http://dowjonesinsight.blogspot.com/
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Sierra Wireless Reports Third Quarter 2008 ResultsTSX: SW NASDAQ: SWIR

VANCOUVER, Oct. 28 /PRNewswire-FirstCall/ -- Sierra Wireless, Inc. is reporting third quarter 2008 results.

Our results are reported in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles.

"During the third quarter of 2008, we achieved 23% year-over-year revenue growth and record cash flow from operations." said Jason Cohenour, President and Chief Executive Officer. "While our year-over-year revenue growth and cash performance was strong, our results fell short of our expectations as a result of missing an expected product launch with a large wireless operator. Notwithstanding our disappointment about the missed product launch, we are encouraged by the strong revenue performance from our recently launched USB products in the face of stiff economic headwinds, as well as the achievement of several important product launches and strategic milestones during the quarter. The success of our new Compass885 for HSPA networks is particularly notable. This product was launched as the USBConnect Mercury by AT&T during the quarter, and by several other operators in Europe and Asia as well. With respect to strategic developments, we commenced a close development collaboration with Telstra, Qualcomm and Ericsson to launch the world's first HSPA+ network service and device, once again highlighting the strength of our position as an innovative developer of products for the world's latest wireless technologies.

Looking ahead, our short term view is cautious given the macro economic conditions in our key markets and expected erosion in sales of our embedded modules to PC OEMs. Longer term, we continue to be encouraged by the growth opportunities in our market segments. Mobile broadband services continue to expand and improve around the world, customer awareness of these compelling services is growing, market segments and applications are expanding and overall market penetration is still very low. Based on this outlook and our confidence in our ability to execute, we are continuing to invest in further strengthening and broadening our market position."

Q3 2008 Financial Results

Our revenue for the third quarter of 2008 amounted to $136.8 million, gross margin was $37.8 million, or 27.6% of revenue, operating expenses were $27.9 million and net earnings were $7.3 million, or diluted earnings per share of $0.23. We generated a record $22.8 million of cash from operations during the third quarter and our balance sheet remains strong, with $227.3Â million of cash, short and long-term investments.

Results for the third quarter of 2008, relative to guidance provided on July 23, 2008 are as follows:

Third quarter revenue for 2008 of $136.8 million was lower than our guidance of $140.0 million. Our earnings from operations were $9.8 million, lower than our guidance of $11.0 million. Our net earnings of $7.3 million, or diluted earnings per share of $0.23, were lower than our guidance of net earnings of $8.5 million, or diluted earnings per share of $0.27.

Results for the third quarter of 2008 compared to the third quarter of 2007 are as follows:

Third quarter revenue increased by 23% to $136.8 million in 2008 from $111.5 million for the same period in 2007. Gross margin for the third quarter of 2008 was 27.6% of revenue, compared to 29.7% for the same period in 2007. Operating expenses were $27.9 million and earnings from operations were $9.8Â million in the third quarter of 2008, compared to $21.4 million and $11.6Â million, respectively, in the same period of 2007. Net earnings for the third quarter of 2008 were $7.3 million, or diluted earnings per share of $0.23, compared to net earnings of $9.0 million, or diluted earnings per share of $0.33, in the same period of 2007. Our weighted average shares outstanding used in calculating earnings per share increased to 31.3 million in the third quarter of 2008 from 27.7 million in the prior year, primarily as a result of the issuance of 3.8 million shares in our October 2007 public offering. Our results include stock-based compensation expense and amortization resulting from the acquisitions of AirPrime, Inc. in 2003 and AirLink in May 2007. Adjusting for these amounts, our non-GAAP results are as follows: (in millions of U.S. dollars) Q3 2008 Q3 2007 ---------- ---------- Earnings from operations - GAAP $ 9.8 $ 11.6 Stock-based compensation 1.6 1.5 Acquisition related amortization 0.7 1.0 ---------- ---------- Earnings from operations - Non-GAAP $ 12.1 $ 14.1 Net earnings - GAAP $ 7.3 $ 9.0 Net earnings - Non-GAAP 8.9 10.9 Diluted earnings per share - GAAP $ 0.23 $ 0.33 Diluted earnings per share - Non-GAAP 0.28 0.39

Results for the third quarter of 2008, compared to the second quarter of 2008 are as follows:

Revenue for the third quarter of 2008 decreased by 12% to $136.8 million, compared to $155.7 million in the second quarter of 2008. Gross margin was 27.6% of revenue in the third quarter of 2008, compared to 27.8% in the second quarter of 2008. Operating expenses were $27.9 million and earnings from operations were $9.8 million in the third quarter of 2008, compared to $28.8Â million and $14.4 million, respectively, in the second quarter of 2008. Net earnings for the third quarter of 2008 were $7.3 million, or diluted earnings per share of $0.23, compared to net earnings of $11.0 million, or diluted earnings per share of $0.35, in the second quarter of 2008. Third Quarter and Recent Highlights Included: - Together with AT&T, we announced the availability of the AT&T USBConnect Mercury, also known as the Sierra Wireless Compass885, the smallest device in AT&T's lineup of HSPA LaptopConnect devices. - We also announced the availability of our Compass885 HSPA USB modem with O2 in the UK, Swisscom in Switzerland and Telstra in Australia. During the quarter, we commenced commercial shipments of the Compass885 to other operators around the world as well. The Compass885 is our latest HSPA device, featuring download speeds of up to 7.2 Mbps, upload speeds of up to 2 Mbps, on board file storage and TRU-Install set up capability. - We announced that our latest EVDO Rev A mobile broadband modem, the Compass 597, is now available from TELUS in Canada and from Telecom New Zealand. - We partnered with Telstra and NetComm Limited to launch two new mobile broadband devices, the Telstra Turbo 7 Series Wireless Gateway and BigPond 7.2 Wireless Broadband Home Network Gateway, each of which combine three capabilities in one unit - super-fast mobile broadband, a secure Wi-Fi Gateway and Ethernet connectivity. - Microboard, a leading notebook computer supplier in Brazil, selected our embedded modules to provide 3G wireless connectivity to the Microboard Ellite notebook computer. The Microboard Ellite 3G notebook is available in Brazil with service on the Claro mobile broadband network, and can be purchased in Claro retail stores. - We announced the availability of a new software development kit (SDK) for Original Equipment Manufacturers supporting Windows CE operating systems. The Windows CE SDK offers OEM customers a more streamlined and cost efficient development cycle for devices using Sierra Wireless 3G embedded modules. - We announced that our ALEOS(TM) embedded intelligence software has been enhanced and now includes events reporting capabilities for the AirLink(TM) PinPoint X and PinPoint XT mobile gateways. The ALEOS Events Reporting Engine provides PinPoint customers with real-time event status that is highly customizable and can be remotely managed, controlled, and configured. - CalAmp selected our embedded modules to provide 3G wireless broadband connectivity for CalAmp's recently launched WiMetry Internet Protocol-based wireless communications platform used in Automatic Meter Reading and Advanced Metering Infrastructure applications. - OneAccess, a leading European supplier of networking equipment located in France, selected our HSPA embedded modules to provide 3G mobile broadband connectivity for the new ONECell35 business router. The ONECell35 leverages the 3G services offered by mobile operators to provide users with high speed wireless back up capability. - We introduced the MC8792V for HSPA networks, the first Sierra Wireless embedded module to offer UMTS 900 MHz frequency band support, providing new and existing OEM customers the ability to expand their product offering with this feature-rich mobile broadband solution. - We completed an agreement to purchase the assets of Junxion, Inc., an innovative supplier of routers and device management solutions for machine to machine applications. The transaction has closed and Junxion products and technology are being integrated into our Mobile and M2M product plans. - During the second quarter, we received regulatory approval to purchase up to 1,567,378 of our common shares by way of a normal course issuer bid on the Toronto Stock Exchange and the NASDAQ Global Market. As of September 30, 2008, 407,700 common shares were purchased and subsequently cancelled. Financial Guidance

The following guidance for the fourth quarter of 2008 reflects our current business indicators and expectations.

Our guidance for the fourth quarter reflects expected erosion in sales of our embedded modules to PC OEMs, combined with macro economic headwinds in our key markets. Our guidance also includes revenue contribution from expected new product launches and the uncertainties associated with these launches could affect our ability to achieve guidance.

Inherent in this guidance are risk factors that are described in greater detail in our regulatory filings. Our actual results could differ materially from those presented below. All figures are approximations based on management's current beliefs and assumptions.

Non-GAAP Adjustments ---------------------------- Stock Acquisition Q4 2008 Guidance GAAP Comp Amortization(1) Non-GAAP ---------------- ----- ------ ---------------- --------- Revenue $140.0 million $140.0 million Earnings from operations $10.0 million $1.6 million $0.6 million $12.2 million Net earnings $7.3 million $1.1 million $0.5 million $8.9 million Diluted earnings per share $0.23/share $0.28/share (1) Represents purchase price amortization associated with the acquisition of AirLink Communications, Inc. in May 2007. Conference Call, Webcast and Instant Replay

We will host a conference call to review our results on Tuesday, OctoberÂ 28, 2008 at 2:30 pm PST, 5:30 PM EST. You can participate in the conference call either via telephone or webcast. To participate in this conference call, please connect approximately ten minutes prior to the commencement of the call.

Telephone participation: Please dial the following number: 1-800-733-7560 Passcode: Not required or 1-416-644-3414 Passcode: Not required Webcast (to listen): The Company will also broadcast its conference call over the Internet. To access the web broadcast, click on this URL or enter: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2381500 This webcast event will be optimized for Microsoft Windows Media Player version 9. To download go to: http://www.microsoft.com/windows/windowsmedia/download.

Should you be unable to participate, Instant Replay (audio) will be available following the conference call for 7 business days.

Audio only dial: 1-877-289-8525 or 1-416-640-1917 Passcode: 21280223 followed by the number sign.

The webcast will be available at the above link for 90 days following the call.

We look forward to having you participate in our call. Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release that are not based on historical facts constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws ("forward-looking statements"). These forward-looking statements are not promises or guarantees of future performance but are only predictions that relate to future events, conditions or circumstances or our future results, performance, achievements or developments and are subject to substantial known and unknown risks, assumptions, uncertainties and other factors that could cause our actual results, performance, achievements or developments in our business or in our industry to differ materially from those expressed, anticipated or implied by such forward-looking statements. Forward-looking statements in this press release include all financial guidance for the fourth quarter of 2008, and all other disclosure regarding possible events, conditions, circumstances or results of operations that are based on assumptions about future economic conditions, courses of action and other future events. We caution you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. These forward-looking statements appear in a number of different places in this press release and can be identified by words such as "may", "estimates", "projects", "expects", "intends", "believes", "plans", "anticipates", "continue", "growing", "expanding", or their negatives or other comparable words. Forward-looking statements include statements regarding the outlook for our future operations, plans and timing for the introduction or enhancement of our services and products, statements concerning strategies or developments, statements about future market conditions, supply conditions, end customer demand conditions, channel inventory and sell through, revenue, gross margin, operating expenses, profits, forecasts of future costs and expenditures, the outcome of legal proceedings, and other expectations, intentions and plans that are not historical fact. The risk factors and uncertainties that may affect our actual results, performance, achievements or developments are many and include, amongst others, our ability to develop, manufacture, supply and market new products that we do not produce today that meet the needs of customers and gain commercial acceptance, our reliance on the deployment of next generation networks by major wireless operators, the continuous commitment of our customers, and increased competition. These risk factors and others are discussed in our Annual Information Form and Management's Discussion and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at http://www.sedar.com/ and on EDGAR at http://www.sec.gov/ and in our other regulatory filings with the Securities and Exchange Commission in the United States and the Provincial Securities Commissions in Canada. Many of these factors and uncertainties are beyond our control. Consequently, all forward-looking statements in this press release are qualified by this cautionary statement and we cannot assure you that actual results, performance, achievements or developments that we anticipate will be realized. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions and we do not undertake any obligation to update forward-looking statements should the assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by law.

About Sierra Wireless

Sierra Wireless modems and software connect people and systems to mobile broadband networks around the world. The Company offers a diverse product portfolio addressing enterprise, consumer, original equipment manufacturer, specialized vertical industry, and machine-to-machine markets, and provides professional services to customers requiring expertise in wireless design, integration and carrier certification. For more information about Sierra Wireless, visit http://www.sierrawireless.com/.

"AirCard" is a registered trademark of Sierra Wireless. Other product or service names mentioned herein may be the trademarks of their respective owners.

SIERRA WIRELESS, INC. Consolidated Statements of Operations and Deficit (Expressed in thousands of United States dollars, except per share amounts) (Prepared in accordance with United States generally accepted accounting principles ("GAAP")) (Unaudited) Three months ended Nine months ended ------------------ ----------------- September 30, September 30, ------------- ------------- 2008 2007 2008 2007 ---- ---- ---- ---- Revenue................... $ 136,794 $ 111,515 $ 434,441 $ 304,322 Cost of goods sold........ 99,025 78,446 314,129 218,940 ---------- ---------- ---------- ---------- Gross margin.............. 37,769 33,069 120,312 85,382 ---------- ---------- ---------- ---------- Expenses: Sales and marketing..... 8,717 5,963 24,480 14,983 Research and development............ 13,062 9,692 40,894 31,183 Administration.......... 5,011 4,508 15,696 11,097 Amortization............ 1,135 1,271 3,628 2,828 ---------- ---------- ---------- ---------- 27,925 21,434 84,698 60,091 ---------- ---------- ---------- ---------- Earnings from operations............... 9,844 11,635 35,614 25,291 Other income.............. 522 743 4,250 2,750 ---------- ---------- ---------- ---------- Earnings before income taxes.................... 10,366 12,378 39,864 28,041 Income tax expense........ 3,110 3,343 11,960 7,079 ---------- ---------- ---------- ---------- Net earnings.............. 7,256 9,035 27,904 20,962 Deficit, beginning of period................... (19,954) (61,134) (40,602) (73,061) Excess of purchase price over assigned value of common shares............ (708) - (708) - ---------- ---------- ---------- ---------- Deficit, end of period ... $ (13,406) $ (52,099) $ (13,406) $ (52,099) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Earnings per share for the period: Basic................... $ 0.23 $ 0.33 $ 0.89 $ 0.79 Diluted................. $ 0.23 $ 0.33 $ 0.89 $ 0.78 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Weighted average number of shares (in thousands): Basic................... 31,273 27,355 31,328 26,509 Diluted................. 31,324 27,674 31,421 26,799 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- SIERRA WIRELESS, INC. Consolidated Balance Sheets (Expressed in thousands of United States dollars) (Prepared in accordance with United States GAAP) September December --------- -------- 30, 2008 31, 2007 --------- -------- (Unaudited) Assets Current assets: Cash and cash equivalents....................... $ 119,385 $ 83,624 Short-term investments.......................... 82,861 92,980 Accounts receivable............................. 88,713 83,015 Inventories..................................... 33,284 24,989 Deferred income taxes........................... 1,760 3,556 Prepaid expenses................................ 5,788 9,229 ---------- ---------- 331,791 297,393 Long-term investments............................. 25,047 19,757 Fixed assets...................................... 21,892 15,274 Intangible assets................................. 15,979 17,418 Goodwill.......................................... 33,007 32,541 Deferred income taxes............................. 1,359 1,156 Other............................................. - 1,482 ---------- ---------- $ 429,075 $ 385,021 ---------- ---------- ---------- ---------- Liabilities and Shareholders' Equity Current liabilities: Accounts payable................................ $ 39,447 $ 31,163 Accrued liabilities............................. 63,830 53,691 Deferred revenue and credits.................... 544 534 Current portion of long-term liabilities........ 231 277 ---------- ---------- 104,052 85,665 Long-term liabilities............................. 404 581 Deferred income taxes............................. 2,959 3,451 Shareholders' equity: Share capital................................... 324,406 328,323 Additional paid-in capital...................... 9,456 6,374 Warrants........................................ 1,538 1,538 Deficit......................................... (13,406) (40,602) Accumulated other comprehensive loss............ (334) (309) ---------- ---------- 321,660 295,324 ---------- ---------- $ 429,075 $ 385,021 ---------- ---------- ---------- ---------- SIERRA WIRELESS, INC. Consolidated Statements of Cash Flows (Expressed in thousands of United States dollars) (Prepared in accordance with United States GAAP) (Unaudited) Three months ended Nine months ended ------------------ ----------------- September 30, September 30, ------------- ------------- 2008 2007 2008 2007 ---- ---- ---- ---- Cash flows from operating activities: Net earnings for the period................. $ 7,256 $ 9,035 $ 27,904 $ 20,962 Adjustments to reconcile net earnings to net cash provided by operating activities Amortization.......... 4,076 3,520 11,875 10,445 Stock-based compensation......... 1,618 1,510 4,913 3,614 Tax benefit related to stock option deduction............ - 635 - 635 Loss (gain) on disposal............. - - 73 (20) Utilization of pre-acquisition tax losses............... - - - 802 Deferred income taxes................ 1,272 373 1,102 414 Changes in operating assets and liabilities Accounts receivable... 9,230 (604) (7,081) (9,319) Inventories........... (6,371) 7,642 (8,295) (5,906) Prepaid expenses and other assets......... 1,956 1,292 4,923 3,641 Accounts payable...... 2,750 (11,716) 8,285 6,637 Accrued liabilities... 785 2,787 10,139 (708) Deferred revenue and credits.............. 180 (241) 9 (24) ---------- ---------- ---------- ---------- Net cash provided by operating activities... 22,752 14,233 53,847 31,173 Cash flows from investing activities: Business acquisition.. - (264) (35) (12,157) Proceeds on disposal.. - - 2 21 Purchase of fixed assets............... (4,971) (2,073) (14,990) (6,792) Increase in intangible assets............... (1,694) (379) (2,578) (761) Purchase of long-term investments.......... (5,169) (4,310) (5,169) (4,310) Purchase of short-term investments.......... (67,175) (36,532) (142,771) (100,636) Proceeds on maturity of short-term investments.......... 38,214 13,922 154,134 100,796 ---------- ---------- ---------- ---------- Net cash used by investing activities... (40,795) (29,636) (11,407) (23,839) Cash flows from financing activities: Issue of common shares, net of share issue costs................ 339 744 1,023 3,293 Purchase of shares for restricted share unit plans................ (1,487) - (2,498) - Repurchase of common shares............... (4,982) - (4,982) - Increase (decrease) in long-term liabilities.......... (83) 16 (222) (481) ---------- ---------- ---------- ---------- Net cash provided by (used in) financing activities............. (6,213) 760 (6,679) 2,812 ---------- ---------- ---------- ---------- Net increase (decrease) in cash and cash equivalents.............. (24,256) (14,643) 35,761 10,146 Cash and cash equivalents, beginning of period...... 143,641 71,227 83,624 46,438 ---------- ---------- ---------- ---------- Cash and cash equivalents, end of period............ $ 119,385 $ 56,584 $ 119,385 $ 56,584 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

Sierra Wireless, Inc.

CONTACT: Sierra Wireless, Inc., David G. McLennan, Chief Financial
Officer, (604) 231-1181, Website: http://www.sierrawireless.com/, Email:
investor@sierrawireless.com

SonicWALL Reports Third Quarter 2008 Financial ResultsCompany Reports Year-over-Year Revenue Growth and Improved Operating Margin

SUNNYVALE, Calif., Oct. 28 /PRNewswire-FirstCall/ -- SonicWALL, Inc. , today reported performance in the quarter ended September 30, 2008, with revenue of $53.3 million, representing 5% growth over the third quarter of 2007. The Company shipped 45,000 revenue units in the quarter compared to 47,000 in the third quarter of 2007. Cash flow from operations was $5.5 million.

Net income for the third quarter of 2008 calculated in accordance with U.S. generally-accepted accounting principles (GAAP) was $0.6 million, or $0.01 per diluted share. In comparison, GAAP net loss for the third quarter of 2007 was $(0.3) million, or $0.00 per diluted share.

Non-GAAP net earnings for the third quarter of 2008 were $4.1 million or $0.08 per diluted share. In comparison, non-GAAP net earnings for the third quarter of 2007 were $3.9 million, or $0.06 per diluted share. Non-GAAP net income excludes amortization of purchased intangible assets, restructuring charges, in process research and development, and share-based compensation expense primarily associated with the expensing of stock options in accordance with Financial Accounting Standards No. 123R (FAS 123R). An explanation of our use of non-GAAP measures is included in the section in this press release entitled "Use of Non-GAAP Financial Measures."

"During the quarter, we completed the rollout of our multi-core UTM product line," said Matt Medeiros, CEO of SonicWALL. "We continue to improve our execution capabilities, and our excellent lineup of award-winning, innovative products positions us well to take advantage of improvements in demand conditions as they arise."

Guidance for Q4 2008

SonicWALL expects fourth quarter 2008 revenue to be in the range of $50 million to $54 million. The Company expects non-GAAP gross margin to be in the range of 71% to 72% of revenue. SonicWALL expects earnings per share in the fourth quarter of 2008 to be in the range of $0.05 to $0.07 per diluted share on a non-GAAP basis. On a GAAP basis, inclusive of a total of approximately $4.0 million, before taxes, in combined amortization of purchased intangibles assets, and share-based compensation expense, the Company expects earnings per share to be in the range of $0.00 to $0.02. Share-based compensation expense associated with the expensing of stock options is estimated to be approximately $3.0 million for the fourth quarter of 2008.

This is the only statement SonicWALL will be giving during the quarter with respect to guidance, unless a decision is made to provide an update.

Conference Call

A conference call to discuss third quarter 2008 results will take place today, October 28, 2008, at 2:00 p.m. PT (5:00 p.m. ET). SonicWALL President and CEO Matt Medeiros and SonicWALL CFO Rob Selvi will host the call. A web cast of the live call can be accessed at http://www.sonicwall.com/us/company/2518.html or http://phx.corporate-/ ir.net/phoenix.zhtml?p=irol-eventDetails&c=90780&eventID=1995074. A replay of the call will be available beginning at approximately 5:00 p.m. PT (8:00 p.m. ET) today at the Company's website or by telephone until 5:00 p.m. PT on August 3 at 888-203-1112 (toll-free) or 719-457-0820 (International), passcode 2741212.

About SonicWALL, Inc.

Founded in 1991, SonicWALL, Inc. designs, develops and manufactures comprehensive network security, email security, secure remote access, and continuous data protection solutions. For more information, contact SonicWALL at +1 (408) 745-9600 or visit the company web site at http://www.sonicwall.com/.

Use of Non-GAAP Financial Measures

To supplement our consolidated financial statements presented in accordance with GAAP, SonicWALL uses non-GAAP measures of results of operations. These non-GAAP results are provided to enhance the user's overall understanding of our current financial performance and our prospects for the future. We believe the non-GAAP results provide useful information to both management and investors by excluding certain expenses. The non-GAAP measures are included to provide investors and management with an alternative method for assessing SonicWALL's operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP.

Cautionary Note Regarding Forward-looking Statements

Certain statements in this press release are "forward-looking statements." The forward-looking statements include without limitation statements regarding our expected revenue for the fourth quarter of 2008, gross margin on a non-GAAP basis for the fourth quarter of 2008, earnings per share on a GAAP and non-GAAP basis for the fourth quarter of 2008, share based compensation expense for the fourth quarter of 2008, and our ability to continue to deliver industry leading enterprise security solutions. These forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect SonicWALL's actual results include, but are not limited to, increased competition in each of the geographic areas in which we do business; exchange rate fluctuations; global macroeconomic and geopolitical conditions; increased competition across all of the market segments in which SonicWALL participates; new product and service introductions by our competitors; significant turnover of our key employees; and unpredictability in the rate of growth of spending of our customers for products and services that SonicWALL provides. In addition, for a more detailed description of the risks and uncertainties that could cause our actual results to differ materially from those anticipated in the forward- looking statements, please see the "Risk Factors" described in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2007 and our interim reports on Form 10-Q for quarterly periods thereafter. All forward-looking statements included in this release are based upon information available to SonicWALL as of the date of the release, and we assume no obligation to update any such forward-looking statement.

NOTE: SonicWALL is a registered trademark of SonicWALL, Inc. Other product and company names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

SonicWALL, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, --------------------- --------------------- 2008 2007 2008 2007 --------------------- --------------------- Revenue: Product $21,439 $25,389 $68,989 $71,641 License and service 31,839 25,597 95,398 71,544 -------- -------- -------- -------- Total revenue 53,278 50,986 164,387 143,185 -------- -------- -------- -------- Cost of revenue: Product 10,627 10,148 32,478 28,713 License and service 5,150 4,167 15,414 11,150 Amortization of purchased technology 754 698 2,262 1,516 -------- -------- -------- -------- Total cost of revenue 16,531 15,013 50,154 41,379 -------- -------- -------- -------- Gross profit 36,747 35,973 114,233 101,806 -------- -------- -------- -------- Operating expenses: Research and development 11,411 10,838 34,368 28,930 Sales and marketing 19,472 20,023 63,954 54,547 General and administrative 3,957 5,808 14,135 15,842 Amortization of purchased intangible assets 274 302 840 413 Restructuring charges (reversals) (87) - 1,683 - In-process research and development - 1,930 - 1,930 -------- -------- -------- -------- Total operating expenses 35,027 38,901 114,980 101,662 -------- -------- -------- -------- Income (loss) from operations 1,720 (2,928) (747) 144 -------- -------- -------- -------- Interest income and other expense, net 1,122 2,974 5,328 8,845 -------- -------- -------- -------- Income before income taxes 2,842 46 4,581 8,989 Provision for income taxes (2,273) (342) (3,153) (3,373) -------- -------- -------- -------- Net income (loss) $569 $(296) $1,428 $5,616 -------- -------- -------- -------- Net income (loss) per share: Basic $0.01 $(0.00) $0.03 $0.09 -------- -------- -------- -------- Diluted $0.01 $(0.00) $0.02 $0.08 -------- -------- -------- -------- Shares used in computing net income (loss) per share: Basic 53,412 64,458 56,906 64,853 Diluted 54,928 64,458 59,050 67,424 SonicWALL, Inc. NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS Excluding Amortization of Purchased Intangible Assets Restructuring Charges, In Process Research and Development, Share-Based Compensation (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, --------------------- --------------------- 2008 2007 2008 2007 -------- -------- -------- -------- Revenue: Product $21,439 $25,389 $68,989 $71,641 License and service 31,839 25,597 95,398 71,544 -------- -------- -------- -------- Total revenue 53,278 50,986 164,387 143,185 -------- -------- -------- -------- Cost of revenue: Product 10,529 10,052 32,205 28,429 License and service 5,103 4,127 15,291 11,040 -------- -------- -------- -------- Total cost of revenue 15,632 14,179 47,496 39,469 -------- -------- -------- -------- Gross profit 37,646 36,807 116,891 103,716 -------- -------- -------- -------- Operating expenses: Research and development 10,562 9,764 31,806 25,339 Sales and marketing 18,448 18,942 61,084 50,855 General and administrative 3,175 4,837 11,881 12,701 -------- -------- -------- -------- Total operating expenses 32,185 33,543 104,771 88,895 -------- -------- -------- -------- Income from operations 5,461 3,264 12,120 14,821 -------- -------- -------- -------- Interest income and other expense, net 1,122 2,974 5,328 8,845 -------- -------- -------- -------- Income before income taxes 6,583 6,238 17,448 23,666 Provision for income taxes (2,436) (2,308) (6,456) (8,756) -------- -------- -------- -------- Non-GAAP net income $4,147 $3,930 $10,992 $14,910 -------- -------- -------- -------- Non-GAAP net income per share: Basic $0.08 $0.06 $0.19 $0.23 -------- -------- -------- -------- Diluted $0.08 $0.06 $0.19 $0.22 -------- -------- -------- -------- Shares used in computing net income per share: Basic 53,412 64,458 56,906 64,853 Diluted 54,928 67,213 59,050 67,424 SonicWALL, Inc. RECONCILIATION of GAAP to NON-GAAP NET INCOME (In thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, --------------------- --------------------- 2008 2007 2008 2007 -------- -------- -------- -------- Non-GAAP net income $4,147 $3,930 $10,992 $14,910 -------- -------- -------- -------- Share-based compensation expense (2,800) (3,262) (8,082) (10,818) Amortization of purchased intangible assets (1,028) (1,000) (3,102) (1,929) Restructuring (charges) reversals 87 - (1,683) - In-process research and development - (1,930) - (1,930) Tax effect of adjustments 163 1,966 3,303 5,383 -------- -------- -------- -------- Net effect of pro forma adjustments (3,578) (4,226) (9,564) (9,294) -------- -------- -------- -------- Net income (loss) $569 $(296) $1,428 $5,616 ======== ======== ======== ======== Diluted Non-GAAP net income per share $0.08 $0.06 $0.19 $0.22 -------- -------- -------- -------- Diluted net income (loss) per share $0.01 $(0.00) $0.02 $0.08 -------- -------- -------- -------- SonicWALL, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) September 30, December 31, 2008 2007 (1) ------------------------------- (Unaudited) ASSETS Current Assets: Cash and cash equivalents $38,683 $33,324 Short-term investments 60,395 195,647 Accounts receivable, net 22,421 26,255 Inventories 7,605 6,057 Deferred tax assets 11,111 11,107 Prepaid expenses and other current assets 12,962 9,447 -------- -------- Total current assets 153,177 281,837 Property and equipment, net 9,671 9,357 Goodwill 138,753 138,753 Long-term investments 67,027 - Deferred tax assets, non-current 16,367 16,367 Purchased intangibles and other assets, net 18,324 26,321 -------- -------- Total assets $403,319 $472,635 -------- -------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $11,935 $10,875 Accrued payroll and related benefits 11,959 20,388 Other accrued liabilities 10,354 7,355 Deferred revenue 88,768 88,818 -------- -------- Total current liabilities 123,016 127,436 Deferred revenue, non current 17,374 12,419 Other accrued liabilities, non-current - 5,076 -------- -------- Total liabilities 140,390 144,931 -------- -------- Shareholders' Equity: Common stock, no par value 392,079 446,431 Accumulated other comprehensive loss, net (4,454) (2,284) Accumulated deficit (124,696) (116,443) -------- -------- Total shareholders' equity 262,929 327,704 -------- -------- Total liabilities and shareholders' equity $403,319 $472,635 ======== ======== (1) December 31, 2007 balances have been derived from the audited financial statements as of the same date. SonicWALL, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, --------------------- --------------------- 2008 2007 2008 2007 --------------------- --------------------- Cash flows from operating activities: Net cash provided by operating activities $5,520 $17,064 $13,871 $46,509 -------- -------- -------- -------- Cash flows from investing activities: Purchase of property and equipment (1,009) (1,736) (3,827) (5,000) Cash paid for acquisitions, net of cash acquired - (25,269) - (25,269) Change in restricted cash in escrow (6) (323) 1,376 49 Maturity and sale of short-term investments, net of purchases (7,333) 1,070 66,054 11,071 -------- -------- -------- -------- Net cash provided by (used in) investing activities (8,348) (26,258) 63,603 (19,149) -------- -------- -------- -------- Cash flows from financing activities: Issuance of common stock under employee stock option and purchase plans 1,473 3,049 5,306 7,184 Repurchase of common stock (762) (19,715) (79,408) (29,427) Excess tax benefits from share-based compensation 1,198 - 1,987 - -------- -------- -------- -------- Net cash provided by (used in) financing activities 1,909 (16,666) (72,115) (22,243) -------- -------- -------- -------- Net increase (decrease) in cash and cash equivalents (919) (25,860) 5,359 5,117 Cash and cash equivalents at beginning of period 39,602 56,904 33,324 25,927 -------- -------- -------- -------- Cash and cash equivalents at end of period $38,683 $31,044 $38,683 $31,044 ======== ======== ======== ========

SonicWALL, Inc.

CONTACT: Investor Relations, Kelly Blough, +1-408-962-6329,
kblough@sonicwall.com, or Media Relations, Colleen Nichols, +1-408-962-6131,
cnichols@sonicwall.com, both of SonicWALL, Inc.

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

Zix Corporation Announces Third Quarter 2008 Financial ResultsCompany highlights two e-Prescribing contracts announced earlier this month

DALLAS, Oct. 28 /PRNewswire-FirstCall/ -- Zix Corporation (ZixCorp(R)), , the leader in hosted services for email encryption and e-prescribing, today announced financial results for the third quarter ended September 30, 2008. ZixCorp recorded third quarter revenues of $6.7 million and a GAAP net loss of $1.5 million for the quarter, or $0.02 loss per share, compared with revenues of $6.2 million, and a GAAP net loss of $1.9 million, or $0.03 loss per share, in the corresponding quarter of 2007. Total cash and cash equivalents as of September 30, 2008 were $13.1 million.

"The major catalysts in each of our core businesses -- Medicare legislation in e-Prescribing and OEM channels in Email Encryption -- are beginning to yield the results that make us increasingly optimistic about our future growth and success. In addition, despite the turmoil in the general economy, ZixCorp achieved positive cash flow from operations for the third consecutive quarter in 2008, demonstrating its continued financial stability," said Rick Spurr, chief executive officer for ZixCorp. "In our e-Prescribing business, we believe the previously announced new contracts with BCBS Alabama and Aetna, as well as our participation in the HighMark program, cumulatively indicate the beginnings of the anticipated acceleration in the e-prescribing market following the passage of the Medicare Improvements for Patients and Providers Act of 2008. We believe our track record of success with smaller practices, which comprise the vast majority of the physician market but where few other vendors even compete, demonstrates ZixCorp is well-positioned for growth in this industry. The Email business continues to drive the performance of the company with healthy cash generation and increasing margins. As expected, the contribution from our OEM partners increased significantly in Q3, and with the recent addition of our latest partner Code Green Networks, we believe this business is poised for continued and even accelerated growth, particularly in 2009 when the partners signed this year are expected to begin yielding more business for us."

Corporate Highlights -- Third quarter 2008 revenues increased 8 percent over the comparable quarter last year to $6.7 million -- Third quarter ending cash and cash equivalents balance was $13.1 million, which met the projected guidance for total cash to exceed the second quarter ending cash balance of $13.0 million -- The improvement in cash for the third quarter 2008 of approximately $130,000 compares to the approximately $500,000 cash burn for the third quarter of last year Business Highlights Email Encryption Service -- Email Encryption revenue for third quarter 2008 was $5.6 million, up 20 percent when compared to third quarter 2007. Year-to-date revenues of $16.5 million represent an increase of 30 percent compared to the nine-month period last year -- Total orders were $5.2 million, including $1.2 million in new first-year orders in the third quarter -- The company's renewal rate for the quarter was 95 percent -- During the third quarter, the ZixDirectory surpassed 12 million members, with an accelerated growth rate of 80,000 members per week, compared to a growth rate of 70,000 members per week in the second quarter. Last week, the Directory surpassed 13 million members -- Two new significant e-mail encryption health plan customers were added, specifically Blue Cross Blue Shield of Delaware and HIP in New York, to the company's growing customer base -- The company announced an exciting new relationship with Code Green Networks, a leading provider of Data Loss Prevention ("DLP"). The relationship provides an integrated solution that delivers accurate data loss prevention across all network channels together with a policy-based email encryption service to secure the communication of sensitive information in email -- The company had strong results from our OEM relationships with Google and other industry leaders for the third quarter. The contribution from these channels in the third quarter matched the amount from the previous two quarters of 2008 combined, as well as the orders from our partners for the entire year 2007 e-Prescribing: -- e-Prescribing revenue for third quarter 2008 was $1.1 million, a decrease, as expected, of 28 percent compared to the corresponding quarter last year. Year-to-date revenues of $4.3 million were 3 percent lower than the nine-month period last year -- The company announced participation in Highmark's e-Prescribing/eHealth Initiative, where eligible physicians can obtain the PocketScript e-prescribing service -- On October 13, 2008, the company disclosed its selection as the exclusive e-Prescribing vendor for an initiative with Blue Cross and Blue Shield of Alabama. BCBS Alabama will pay for a minimum of 250 (potentially increasing to 300) prescribers located in the state of Alabama to use the PocketScript e-prescribing service -- The company also announced it had expanded its exclusive relationship with Aetna in New Jersey, building on its successful pilot in the state with a new 3-year contract to offer its PocketScript e-prescribing to more than 1,000 additional eligible prescribers in northern New Jersey at no charge to the physician -- Total e-scripts for the third quarter were 2.0 million, up 14 percent over the third quarter last year Financial Highlights 3-month Variance Three Months Ended, Sept 30, 2008 vs. 2007 2008 2007 $ % Email Encryption $5,578,000 $4,631,000 $947,000 20% e-Prescribing $1,131,000 $1,560,000 $(429,000) (28%) Total revenues $6,709,000 $6,191,000 $518,000 8% 9-month Variance Nine Months Ended, Sept 30, 2008 vs. 2007 2008 2007 $ % Email Encryption $16,534,000 $12,685,000 $3,849,000 30% e-Prescribing $4,332,000 $4,448,000 $(116,000) (3%) Total revenues $20,866,000 $17,133,000 $3,733,000 22%

Revenues: Third quarter 2008 company-wide revenues increased 8 percent over the comparable quarter last year to $6.7 million. The company's Email Encryption business delivered third quarter revenue of $ 5.6 million, a 20 percent improvement over the corresponding period last year. Email Encryption's increase was due to continued demand earlier this year for our service model in both healthcare and financial services. e-Prescribing third quarter revenue of $1.1 million represented a 28 percent decrease over the same period last year. e-Prescribing revenues decreased principally due to a decline in transaction/usage-based fees and deployment-related fees. The company's order backlog (contractually bound service contracts that represent future revenue to be recognized as the services are provided) was $36.2 million on September 30, 2008.

Gross Margin: The company's gross margin was $4.3 million, or 64 percent of revenue. The gross margin contribution from the Email Encryption business was $4.6 million, or a record 82 percent, while the gross margin for e-Prescribing was negative $0.3 million in the quarter, or a negative 24 percent. The company-wide gross margin for the same period in 2007 was $3.5 million or 57 percent of revenue, which was comprised of $3.6 million in Email Encryption and negative $0.1 million for e-Prescribing. The gross margin improvement for Email Encryption was driven by continued revenue growth combined with a slight decline in cost of revenues. The gross margin for e-Prescribing declined as the decrease in cost of revenues was more than offset by the decline in revenues.

R&D and SG&A Expenditures: In the third quarter 2008, the combination of the company's research and development (R&D) expenses and its sales, general, and administrative (SG&A) expenses increased by 5 percent when compared with the same period last year. This increase was driven by a 20 percent year-over-year increase in R&D as we continue to advance each core service, with SG&A flat over the same time period.

Cash Flow: Cash and cash equivalents as of September 30, 2008 were $13.1 million. The approximately $0.1 million increase in the cash balance during the third quarter represents an improvement over the approximately $0.5 million cash burn for the comparable quarter in 2007.

Outlook: The company forecasts revenue for the fourth quarter to be between $6.8 and $7.1 million. e-Prescribing deployments are expected to be approximately 150 prescribers for the fourth quarter. Coming off the third quarter, which is generally our slowest quarter for bookings, the year-end total cash balance is expected to be flat with the third quarter at $13.1 million.

Third Quarter Conference Call Information

The company will hold a conference call to discuss third quarter 2008 operating results on October 28th at 5:00 p.m. ET.

A live Webcast of the conference call will be available on the investor relations portion of ZixCorp's Web site at http://investor.zixcorp.com/. Alternatively, participants can listen to the conference call by dialing 617-847-8704 or toll-free 800-265-0241 and entering access code 77991202. An audio replay of the conference will be available until November 4, 2008 by dialing 617-801-6888 or toll-free 888-286-8010, and entering the access code 48567745, and after that date via Webcast on the company's Web site.

About Zix Corporation

ZixCorp is the leading provider of easy-to-use-and-deploy email encryption and e-prescribing services that Connect entities with their customers and partners to Protect and Deliver sensitive information in the healthcare, finance, insurance and government industries. ZixCorp's hosted Email Encryption Service provides an easy and cost-effective way to ensure customer privacy and regulatory compliance for corporate email. Its PocketScript(R) e-prescribing service saves lives and saves money by automating the prescription process between payors, doctors, and pharmacies. For more information, visit http://www.zixcorp.com/.

Safe Harbor Statement for ZixCorp

The following is a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. The following statements by Mr. Spurr are forward-looking statements, not a guarantee of future performance, and involve risks and uncertainties: "The major catalysts in each of our core businesses -- Medicare legislation in e-Prescribing and OEM channels in Email Encryption -- are beginning to yield the results that make us increasingly optimistic about our future growth and success,"; "In our e-Prescribing business, we believe the previously announced new contracts with BCBS Alabama and Aetna, as well as our participation in the HighMark program, cumulatively indicate the beginnings of the anticipated acceleration in the e-prescribing market following the passage of the Medicare Improvements for Patients and Providers Act of 2008,"; "We believe our track record of success with smaller practices, which comprise the vast majority of the physician market but where few other vendors even compete, demonstrates ZixCorp is well-positioned for growth in this industry,"; "As expected, the contribution from our OEM partners increased significantly in Q3, and with the recent addition of our latest partner Code Green Networks, we believe this business is poised for continued and even accelerated growth, particularly in 2009 when the partners signed this year are expected to begin yielding more business for us." The statements under the caption "Outlook" are also forward-looking statements. Actual results may differ materially from those projected in the forward- looking statements. These risks and uncertainties include, but are not limited to, the following: the Company's continued operating losses and use of cash resources; the Company's ability to achieve broad market acceptance for the Company's products and services, including the Company's ability to enter into new or expand existing sponsorship agreements for the e-prescribing services offered by its PocketScript, Inc. subsidiary and the Company's ability to continue realizing acceptance of its Email Encryption business in its core markets of healthcare and financial and to achieve market acceptance of its Email Encryption business in other markets; the Company's ability to maintain existing and generate other revenue opportunities, including fees for scripts written or value added services for its payor customers from its PocketScript e-Prescription business; the Company's ability to establish and maintain strategic and OEM relationships to gain customers and grow revenues, particularly in its Email Encryption business; the expected increase in competition in the Company's Email Encryption and e-Prescription businesses; and the Company's ability to successfully and timely introduce new Email Encryption and e-Prescription products and services or related products and services and implement technological changes. Further details pertaining to such risks and uncertainties may be found in the Company's public filings with the SEC.

ZIX CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2008 2007 (unaudited) (audited) ASSETS Current assets: Cash and cash equivalents $13,140,000 $10,524,000 Marketable securities -- 1,734,000 Receivables, net 539,000 1,119,000 Prepaid and other current assets 1,126,000 1,545,000 Total current assets 14,805,000 14,922,000 Restricted cash 25,000 25,000 Property and equipment, net 2,020,000 2,297,000 Goodwill and other assets 2,193,000 2,230,000 Total assets $19,043,000 $19,474,000 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable and accrued expenses $3,168,000 $3,295,000 Deferred revenue 13,968,000 12,606,000 Total current liabilities 17,136,000 15,901,000 Long-term liabilities: Deferred revenue 2,891,000 3,497,000 Deferred rent 330,000 365,000 Total long-term liabilities 3,221,000 3,862,000 Total liabilities 20,357,000 19,763,000 Total stockholders' deficit (1,314,000) (289,000) Total liabilities and stockholders' deficit $19,043,000 $19,474,000 ZIX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Revenues $6,709,000 $6,191,000 $20,866,000 $17,133,000 Cost of revenues 2,383,000 2,662,000 7,505,000 8,162,000 Gross margin 4,326,000 3,529,000 13,361,000 8,971,000 Operating expenses: Research and development expenses 1,590,000 1,320,000 4,516,000 3,962,000 Marketing expenses 906,000 814,000 2,596,000 2,671,000 Sales expenses 1,909,000 2,214,000 6,462,000 6,749,000 General and administrative expenses 1,417,000 1,208,000 4,598,000 4,265,000 Customer deposit forfeiture -- -- -- (2,000,000) Loss on impairment of operating lease -- -- -- 100,000 Total operating expenses 5,822,000 5,556,000 18,172,000 15,747,000 Operating loss (1,496,000) (2,027,000) (4,811,000) (6,776,000) Other (expense) income: Investment and other income 97,000 143,000 435,000 437,000 Interest expense -- (35,000) -- (141,000) Loss on extinguishment of debt -- -- -- (178,000) Total other income 97,000 108,000 435,000 118,000 Loss before income taxes (1,399,000) (1,919,000) (4,376,000) (6,658,000) Income taxes expense (110,000) (17,000) (187,000) (54,000) Net loss $ (1,509,000) $(1,936,000) $(4,563,000) $(6,712,000) Basic and diluted loss per common share $(0.02) $(0.03) $(0.07) $(0.11) Basic and diluted weighted average common shares outstanding 63,072,191 60,344,165 62,893,809 60,189,352 ZIX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 2008 2007 Operating activities: Net loss $(4,563,000) $(6,712,000) Non-cash items in net loss 3,950,000 283,000 Changes in operating assets and liabilities 2,026,000 6,179,000 Net cash provided by (used by) operating activities 1,413,000 (250,000) Investing activities: Purchases of property and equipment (695,000) (769,000) Restricted cash investments and marketable securities, net 1,734,000 (1,665,000) Net cash provided by (used by) investing activities 1,039,000 (2,434,000) Financing activities: Proceeds from exercise of stock options 164,000 15,000 Payment of short-term notes payable -- (229,000) Net cash provided by (used by) financing activities 164,000 (214,000) Increase (decrease) in cash and cash equivalents 2,616,000 (2,898,000) Cash and cash equivalents, beginning of period 10,524,000 12,783,000 Cash and cash equivalents, end of period $13,140,000 $9,885,000

Zix Corporation

CONTACT: Public Relations, Geoff Bibby, +1-214-370-2241,
publicrelations@zixcorp.com, or Investor Relations, Peter Wilensky,
+1-214-515-7357, invest@zixcorp.com, both of Zix Corporation

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

Advent Software Achieves Record Quarterly Revenue of $65 Million, a 17% Increase Over Prior YearCompany Also Announces Strong Operating Cash Flow of $19 Million

SAN FRANCISCO, Oct. 28 /PRNewswire-FirstCall/ -- Advent Software, Inc. , a leading provider of software and services to the investment management industry, announced today its financial results for the third quarter ended September 30, 2008.

"We are pleased to report that Advent had a solid third quarter that included record revenue of $65 million, strong operating cash flow and our acquisition of leading research management solution provider Tamale Software," said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. "Despite the current uncertain economic environment, we are confident that Advent will continue to perform well given our high recurring revenue model, the cash flow generating characteristics of our business, the breadth and depth of our mission-critical product portfolio and our strong global market position."

GAAP RESULTS

The Company reported record revenue of $64.9 million for the third quarter of 2008, compared to $55.5 million in the third quarter of 2007, a 17% increase.

Income from operations for the third quarter of 2008 was $4.7 million, or 7% of revenue, which represented a decrease of 18% compared with $5.8 million, or 10% of revenue, in the third quarter of 2007.

Net income for the third quarter of 2008 was $2.7 million compared to net income of $3.3 million in the third quarter of 2007, an 18% decrease.

On a fully diluted basis, earnings per share in the third quarter of 2008 were $0.10 and represent a 20% decrease from diluted earnings per share of $0.12 in the third quarter of 2007.

Cash flow from operations in the third quarter of 2008 was $19.1 million, compared with $12.4 million in the third quarter of 2007, a 54% increase. Cash and cash equivalents totaled $76.1 million as of September 30, 2008, compared to $42.8 million as of September 30, 2007, a 78% increase.

Total deferred revenues as of September 30, 2008 were $137.7 million, compared to $99.8 million as of September 30, 2007, a 38% increase.

NON-GAAP RESULTS

Non-GAAP income from operations for the third quarter of 2008 was $10.2 million. This represents a 5% increase compared to non-GAAP income from operations of $9.6 million for the third quarter of 2007.

On a non-GAAP basis, net income for the third quarter of 2008 was $6.5 million, which represents an increase of 5% compared with $6.2 million for the third quarter of 2007.

Non-GAAP EPS was $0.23 per diluted share in both the third quarter of 2008 and 2007.

The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.

THIRD QUARTER HIGHLIGHTS * Acquisition of Tamale Software, Inc.: Advent announced the signing of a definitive agreement to acquire privately held Tamale Software. On October 1, 2008, Advent announced the completion of this acquisition. The acquisition enables Advent to extend its presence into the front office and establish a leadership position in research management. Under the terms of the agreement, Advent acquired all of the outstanding capital stock of Tamale Software for approximately $28 million in cash and 906,000 shares of Advent's common stock. * Stock Repurchase Program: Advent repurchased 360,000 shares of Advent's common stock in September and 640,000 shares of Advent's common stock in October at an average price of $34.49 per share. The stock repurchase program of 1.0 million shares authorized by the Board in May 2008 is now completed. * Client Conference: Advent had record-setting attendance at its annual Client Conference held in Las Vegas during the week of September 8th. During the conference, Advent also held its third annual Analyst and Investor Day. * Customer Momentum for APX and Geneva(R): Advent saw continued momentum in customer wins for its award-winning portfolio accounting platforms. The Company sold a third quarter record of 29 Advent Portfolio Exchange(R) (APX) contracts, bringing the total number of APX contracts sold to 266 worldwide. Advent also sold 10 new Geneva(R) contracts, bringing the total number of Geneva(R) contracts sold to 186 worldwide. FINANCIAL GUIDANCE

Advent announces the following Q4 2008 and FY 2008 guidance that include the effect of the Tamale acquisition.

Q408 FY08 Total Revenue ($M) $68-$70 $258-$260 Non-GAAP Operating Margin n/a 14%-15% Non-GAAP Diluted EPS ($) n/a $0.88-$0.92 GAAP Diluted EPS ($) n/a $0.58-$0.62 Operating Cash Flow ($M) n/a $72 - $75 Capital Expenditures ($M) n/a $22 - $24 * The effective tax rate range for the full year 2008 decreased to 20% to 25% due to Congress' renewal of the R&D tax credit in October 2008, and the Company will continue to use 35% for the calculation of non-GAAP diluted EPS. * Diluted weighted average shares outstanding are expected to grow 0% to 0.5%. This excludes the impact of any future share repurchase.

Please refer to the tables at the end of this release for the reconciliation between GAAP and non-GAAP financial measures.

INVESTOR CALL

Advent Software, Inc. will host its Q3 2008 quarterly earnings conference call at 5:00 p.m. Eastern time today. The Q3 2008 earnings presentation and trended disclosures file, which include highlights and detailed financial information, are currently available at http://investor.advent.com/. To participate via phone, please dial 888-812-3873 and request conference ID #69128014. A replay will be available through midnight, November 4, 2008, by calling 800-642-1687 and referencing conference ID #69128014. The conference call will also be webcast live and then archived on http://investor.advent.com/.

ABOUT ADVENT

Advent Software, Inc. (http://www.advent.com/), a global firm, has provided trusted solutions to the world's leading financial professionals since 1983. Firms in 60 countries use Advent technology. Advent's quality software, data, services and tools enable financial professionals to improve service and communication to their clients, allowing them to grow their business while controlling costs. Advent is the only financial services software company to be awarded the Service Capability and Performance certification for being a world-class support organization. For more information on Advent products visit http://www.advent.com/about/resources/demos/pr.

ABOUT NON-GAAP FINANCIAL INFORMATION

This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the accompanying tables entitled "Reconciliation of Selected GAAP Measures to Non-GAAP Measures."

FORWARD-LOOKING STATEMENTS

The financial projections under Financial Guidance, our growth internationally and demand in the US, market acceptance of our products, anticipated benefits of our acquisition of Tamale Software, uncertain market conditions and their impact on our business, and the momentum of the business, and other forward-looking statements included in this presentation reflect management's best judgment based on factors currently known and involve risks and uncertainties; our actual results may differ materially from those discussed here. These risks and uncertainties include: potential fluctuations in results and future growth rates; continued market acceptance of our Advent Portfolio Exchange(R), Geneva(R) and Moxy(R) products; the successful development and market acceptance of new products and product enhancements; continued uncertainties and fluctuations in the financial markets; the Company's ability to satisfy contractual performance requirements; difficulties in integrating merged businesses, such as Tamale Software, and achieving expected synergies and results; and other risks detailed from time to time in our SEC reports including, but not limited to, our quarterly reports on Form 10-Q and our 2007 annual report on Form 10-K. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements including any guidance, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

The Advent logo, Advent Software, Advent Portfolio Exchange and Geneva are registered trademarks of Advent Software, Inc. All other company names or marks mentioned herein are those of their respective owners.

ADVENT SOFTWARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (GAAP, Unaudited) September 30 December 31 2008 2007 ASSETS Current assets: Cash and cash equivalents $76,122 $49,589 Accounts receivable, net 47,793 47,574 Deferred taxes, current 10,278 10,288 Prepaid expenses and other 19,664 19,577 Total current assets 153,857 127,028 Property and equipment, net 39,730 27,779 Goodwill 104,745 106,520 Other intangibles, net 7,943 9,376 Deferred taxes, long-term 70,981 70,981 Other assets, net 11,107 10,645 Total assets $388,363 $352,329 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $10,298 $4,382 Accrued liabilities 25,484 29,328 Deferred revenues 131,535 115,398 Income taxes payable 4,598 1,086 Total current liabilities 171,915 150,194 Deferred income taxes 711 998 Deferred revenues, long-term 6,193 4,939 Other long-term liabilities 15,935 16,352 Total liabilities 194,754 172,483 Stockholders' equity: Common stock 265 265 Additional paid-in capital 340,905 326,964 Accumulated deficit (159,935) (161,685) Accumulated other comprehensive income 12,374 14,302 Total stockholders' equity 193,609 179,846 Total liabilities and stockholders' equity $388,363 $352,329 ADVENT SOFTWARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (GAAP, Unaudited) Three Months Ended Nine Months Ended September 30 September 30 2008 2007 2008 2007 Net revenues: Term license, maintenance and other recurring $51,736 $43,046 $151,713 $122,782 Perpetual license fees 4,565 6,054 15,432 17,670 Professional services and other 8,619 6,449 23,275 15,452 Total net revenues 64,920 55,549 190,420 155,904 Cost of revenues (1): Term license, maintenance and other recurring 11,950 9,757 34,263 27,837 Perpetual license fees 225 218 766 632 Professional services and other 11,056 7,662 27,301 19,950 Amortization of developed technology 725 332 2,179 1,018 Total cost of revenues 23,956 17,969 64,509 49,437 Gross margin 40,964 37,580 125,911 106,467 Operating expenses (1): Sales and marketing 15,452 13,482 46,468 40,356 Product development 11,077 9,334 36,975 30,006 General and administrative 9,527 8,393 27,986 25,014 Amortization of other intangibles 141 463 870 1,403 Restructuring charges 41 113 96 902 Total operating expenses 36,238 31,785 112,395 97,681 Income from operations 4,726 5,795 13,516 8,786 Interest income and other income (expense), net (167) (138) 3,619 4,248 Income before income taxes 4,559 5,657 17,135 13,034 Provision for income taxes 1,847 2,361 4,433 4,204 Net income $2,712 $3,296 $12,702 $8,830 Net income per share: Basic $0.10 $0.13 $0.48 $0.33 Diluted $0.10 $0.12 $0.45 $0.32 Weighted average shares used to compute net income per share: Basic 26,788 25,781 26,690 26,541 Diluted 28,198 27,401 28,199 27,911 (1) Includes stock-based employee compensation expense as follows: Cost of term license, maintenance and other recurring revenues $368 $295 $981 $870 Cost of professional services and other revenues 280 189 775 546 Total cost of revenues 648 484 1,756 1,416 Sales and marketing 1,339 998 3,476 3,134 Product development 1,110 749 2,990 2,386 General and administrative 1,957 988 4,084 3,111 Total operating expenses 4,406 2,735 10,550 8,631 Total stock-based employee compensation expense $5,054 $3,219 $12,306 $10,047 ADVENT SOFTWARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (GAAP, Unaudited) Nine Months Ended September 30 2008 2007 Cash flows from operating activities: Net income $12,702 8,830 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation 12,306 10,047 Depreciation and amortization 9,544 8,170 Loss on dispositions of fixed assets 4 444 Provision for doubtful accounts 529 121 Provision for (reduction of)sales returns 61 (67) Gain on investments (3,393) (4,265) Other-than-temporary loss on private equity investment - 585 Deferred income taxes (278) (195) Other 197 54 Effect of statement of operations adjustments 18,970 14,894 Changes in operating assets and liabilities: Accounts receivable (748) 685 Prepaid and other assets 746 (3,385) Accounts payable 5,915 (1,017) Accrued liabilities (4,473) (116) Deferred revenues 17,328 14,582 Income taxes payable 3,726 3,763 Effect of changes in operating assets and liabilities 22,494 14,512 Net cash provided by operating activities 54,166 38,236 Cash flows from investing activities: Net cash used in acquisitions (1,000) (1,022) Purchases of property and equipment (18,381) (7,138) Capitalized software development costs (1,703) (2,447) Proceeds from sale of private equity investments 3,393 11,621 Sales and maturities of marketable securities - 24,921 Change in restricted cash (248) (372) Net cash provided by (used in) investing activities (17,939) 25,563 Cash flows from financing activities: Proceeds from exercises of employee stock options 4,892 17,961 Withholding taxes related to equity award net share settlement (2,000) (57) Proceeds from common stock issued under the employee stock purchase plan 2,576 1,829 Repurchase of common stock (15,032) (91,157) Proceeds from long term borrowing - 25,000 Repayment of long term borrowing - (5,000) Net cash provided by (used in) financing activities (9,564) (51,424) Effect of exchange rate changes on cash and cash equivalents (130) 241 Net change in cash and cash equivalents 26,533 12,616 Cash and cash equivalents at beginning of period 49,589 30,187 Cash and cash equivalents at end of period $76,122 $42,803 ADVENT SOFTWARE, INC. RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except per share data) (Unaudited)

To supplement our condensed consolidated financial statements presented on a GAAP basis, Advent uses non-GAAP measures of operating income, net income and net income per share, which are adjusted to exclude certain costs, expenses, gains and losses we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Advent's underlying operational results and trends and our marketplace performance. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States.

Three Months Ended September 30, 2008 Gross Operating Gross Margin Operating Income Net Margin % Income % Income GAAP $40,964 63% $4,726 7% $2,712 Amortization of acquired developed technology 193 193 193 Amortization of other acquired intangibles - 141 141 Stock-based compensation - cost of revenues 648 648 648 Stock-based compensation - operating expenses - 4,406 4,406 Restructuring charges - 41 41 Income tax adjustment for non-GAAP (1) - - (1,649) Non-GAAP $41,805 64% $10,155 15.6% $6,492 Diluted net income per share GAAP $0.10 Non-GAAP $0.23 Shares used to compute diluted net income per share 28,198 Three Months Ended September 30, 2007 Gross Operating Gross Margin Operating Income Net Margin % Income % Income GAAP $37,580 68% $5,795 10% $3,296 Amortization of acquired developed technology 51 51 51 Amortization of other acquired intangibles - 463 463 Stock-based compensation - cost of revenues 484 484 484 Stock-based compensation - operating expenses - 2,735 2,735 Restructuring charges - 113 113 Income tax adjustment for non-GAAP (1) - - (965) Non-GAAP $38,115 69% $9,641 17% $6,177 Diluted net income per share GAAP $0.12 Non-GAAP $0.23 Shares used to compute diluted net income per share 27,401 (1) The estimated non-GAAP effective tax rate was 35% for the three months ended September 30, 2008 and 2007, respectively, and has been used to adjust the provision for income taxes for non-GAAP purposes. Advent Software, Inc. Reconciliation of Projected GAAP Operating Income % and Diluted Earnings Per Share to Non-GAAP Operating Income % and Diluted Earnings Per Share (Preliminary and unaudited)

Advent provides projections of non-GAAP measures of operating income and diluted earnings per share, which exclude certain costs, expenses, gains and losses which it believes is appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our projected GAAP results are made with the intent of providing management and investors a more complete understanding of Advent's underlying operational results and trends and our marketplace performance. In addition, these adjusted non-GAAP projections are among the information management uses as a basis for planning and forecasting of future periods. These presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States.

Twelve Months Ended December 31, 2008 Diluted Earnings Operating Income % Per Share Projected GAAP 6% to 7% $0.58 to $0.62 Projected amortization of acquired developed technology and other acquired intangible asset adjustment 1% $0.10 Projected stock based compensation adjustment 7% $0.60 Projected restructuring charges adjustment 0% $0.00 Projected in-process research and development adjustment 0% $0.01 Projected investment activity adjustment n/a $(0.12) Projected income tax adjustment for non-GAAP (1) n/a $(0.29) Projected non-GAAP 14% to 15% $0.88 to $0.92 (1) The projected estimated non-GAAP effective tax rate is 35% for the twelve months ended December 31, 2008 is 35% and has been used to adjust the projected provision for income taxes for non-GAAP purposes.

Advent Software, Inc.

CONTACT: Heidi Flaherty of Advent Software, Inc., +1-415-645-1145

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

Aaron Rents, Inc. Reports Third Quarter Results; Revenues Up 16%; Same Store Revenues Up 5.7%; EPS Up 34%

ATLANTA, Oct. 28 /PRNewswire-FirstCall/ -- Aaron Rents, Inc. , the nation's leader in the sales and lease ownership, specialty retailing and rental of residential and office furniture, consumer electronics and home appliances and accessories, today announced revenues and earnings for the three and nine months ended September 30, 2008.

As previously announced, the Company has entered into an agreement to sell substantially all of the assets of its Aaron's Corporate Furnishings division. Beginning with the results reported in this release, the Company no longer includes the revenues and expenses of the Aaron's Corporate Furnishings division on the Company's statement of earnings, and reports net earnings of the division as discontinued operations. Prior periods are restated to reflect this change in accounting treatment and the assets of the division will be reflected as assets held for sale on the Company's balance sheet until the transaction closes.

For the third quarter of 2008, revenues increased 16% to $388.0 million compared to $333.7 million for the same period a year ago. Net earnings rose 32% to $21.1 million versus the $15.9 million recorded in the third quarter last year. Diluted earnings per share were $.39 compared to $.29 per share in 2007, a 34% increase.

For the first nine months of this year, revenues advanced 15% to $1.188 billion compared to $1.030 billion for the same period of 2007. Net earnings for the nine months were up 7% to $69.1 million versus $64.8 million for the corresponding period a year ago. Diluted earnings per share for the first nine months increased 8% to $1.28 for 2008 versus $1.18 for 2007.

For the third quarter diluted earnings per share from continuing operations increased 42% over the same period in 2007 and 12% for the comparable nine month period.

"We are very pleased with the third quarter results from both our Company- operated and franchised stores," said Robert C. Loudermilk, Jr., President and Chief Executive Officer of Aaron Rents. "Even though economic times are tough and our stores in the southern and central United States were affected in September by business disruption and property damage as a result of Hurricanes Gustav and Ike, we still managed to have an outstanding quarter as customers continue to come into our stores seeking basic home furnishings."

"Our same store revenue growth accelerated in the quarter and margins improved, even though over 100 of our stores were adversely impacted by the hurricanes," continued Mr. Loudermilk. "Although difficult to estimate, we feel that the hurricanes negatively affected earnings in the quarter by at least $.01 to $.02 per diluted share, including the value of our merchandise that was destroyed in the homes of our customers. In addition, start up expenses associated with new stores also reduced third quarter earnings by approximately $.05 per share. We feel we are in an outstanding position to continue the growth of our business during the remainder of 2008 and on into 2009."

The Company's other revenues in the third quarter of 2008 included a $2.6 million gain from the sale of 11 Company-operated stores to three different franchisees. Excluding this gain, net earnings on a non-GAAP basis for the third quarter of 2008 would have been $19.5 million, or $.36 per diluted share. The Company has realized a total of $8.4 million in gains in other revenues during the first nine months of 2008 relating to similar store sales. The Company's other revenues in the first nine months of 2007 included a $4.9 million gain from the sale of a parking deck at the Company's corporate headquarters in last year's first quarter. See the attached table for a reconciliation of revenues, net earnings, and diluted earnings per share to non-GAAP revenues, earnings, and diluted earnings per share excluding the aforementioned asset sales.

Revenues in the Aaron's Sales & Lease Ownership division in the third quarter increased 17% to $382.6 million compared to $328.1 million last year. The first nine months sales and lease ownership revenues went up 16% to $1.170 billion compared to $1.007 billion a year ago.

Same store revenues (revenues earned in Company-operated stores open for the entirety of both periods) in the Aaron's Sales & Lease Ownership division increased 5.7% during the third quarter of 2008 compared to the third quarter of last year.

On September 15, 2008, the Company announced that it had entered into an agreement to sell substantially all of the assets of its Aaron's Corporate Furnishings division to CORT Business Services Corporation and to transfer certain liabilities of the division to CORT. As consideration for the sale, the Company anticipates receiving approximately $72 million in cash plus payments for certain accounts receivable, subject to certain adjustments. Subject to customary closing conditions, it is anticipated that the transaction will close in November. It is not expected that the Company will record a material gain or loss on the sale.

The Aaron's Corporate Furnishings division revenues, which are not included in the Company's revenues, declined 4% during the third quarter to $24.6 million compared to $25.7 million a year ago. Corporate furnishings revenues were $73.5 million for the nine months compared to $76.0 million in 2007, a 3% decrease. After the sale of the Aaron's Corporate Furnishings division, the Company will continue with the operations of the Aaron's Office Furniture division.

Consolidated rentals and fees increased 13% for both the third quarter and first nine months compared to the previous year periods. In addition, franchise royalties and fees increased 25% for the third quarter and 16% year- to-date compared to the same periods a year ago. Non-retail sales, which are primarily sales of rental merchandise to Aaron's Sales & Lease Ownership franchisees, increased 22% to $70.7 million for the third quarter from $58.1 million in the comparable period in 2007, and 20% to $222.2 million for the first nine months compared to $185.0 million for the same period last year. The increases in the Company's franchise revenues and non-retail sales are the result of the increase in revenues of the Company's franchisees, who collectively had revenues of $166.0 million for the third quarter and $493.7 million for the first nine months of 2008, a 26% and 19% increase, respectively, over the comparable prior year periods. Same store revenues for franchised stores were up 18.4% for the third quarter of 2008 compared to the third quarter of 2007. Revenues of franchisees, however, are not revenues of Aaron Rents, Inc.

During the third quarter the Aaron's Sales & Lease Ownership division opened four new Company-operated stores, 12 new franchised stores, and one franchised RIMCO store. The Company sold 11 Company-operated sales and lease ownership stores to franchisees, and closed four Company-operated sales and lease ownership stores. In addition, during the quarter the Company acquired one franchised store and purchased the accounts of three third party stores.

For the three months and nine months ended September 30, the Company awarded area development agreements to open 46 and 125 additional franchised stores, respectively. At the end of September there were a total of 303 franchised stores awarded that we expect will open over the next several years.

At September 30 the Aaron's Sales & Lease Ownership division had open 983 Company-operated stores and 502 franchised stores, 30 Company-operated RIMCO stores, and eight franchised RIMCO stores. In addition, the Company operated 47 Aaron's Corporate Furnishings stores and 13 Aaron's Office Furniture stores. The total number of stores open at the end of September was 1,583.

"We anticipate in the fourth quarter of 2008 to have revenues in excess of $410 million and diluted earnings per share between $0.32 to $0.37," Mr. Loudermilk added. "For the 2008 fiscal year we anticipate Company revenues to be approximately $1.6 billion (excluding revenues of franchisees) and diluted earnings per share in the range of $1.60 to $1.65, excluding any gain or loss recorded on the sale of the Aaron's Corporate Furnishings division. By the end of 2008 we expect to have approximately 1,600 Company-operated and franchised stores open. We continue to expect to increase the store base 10% to 13% over the next several years, for the most part an equal mix between Company-operated and franchised stores. Our initial earnings guidance for 2009 is to achieve diluted earnings per share in the range of $1.65 to $1.80."

Aaron Rents will hold a conference call to discuss its quarterly financial results on Wednesday, October 29, 2008, at 10:30 am Eastern Time. The public is invited to listen to the conference call by webcast accessible through the Company's website, http://www.aaronrents.com/, in the "Investor Relations" section. The webcast will be archived for playback at that same site.

Aaron Rents, Inc., based in Atlanta, currently has more than 1,585 Company- operated and franchised stores in 48 states and Canada. The Company's MacTavish Furniture Industries division manufactured approximately $73 million at cost of furniture, bedding and accessories at 12 facilities in five states in 2007. The entire production of MacTavish is for shipment to Aaron Rents stores.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release regarding Aaron Rents, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties include factors such as changes in general economic conditions, competition, pricing, customer demand and other issues, and the risks and uncertainties discussed under "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007. Statements in this release that are "forward-looking" include without limitation Aaron Rents' projected revenues, earnings, and store openings for future periods.

Aaron Rents, Inc. and Subsidiaries Consolidated Statements of Earnings (In thousands, except per share amounts) (Unaudited) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Revenues: Rentals and Fees $291,102 $257,294 $885,554 $780,254 Retail Sales 10,230 7,713 32,363 25,783 Non-Retail Sales 70,691 58,140 222,180 185,047 Franchise Royalties and Fees 11,127 8,881 33,060 28,397 Other 4,869 1,688 14,557 10,796 Total 388,019 333,716 1,187,714 1,030,277 Costs and Expenses: Retail Cost of Sales 6,266 4,546 19,839 15,838 Non-Retail Cost of Sales 64,752 53,095 203,222 169,355 Operating Expenses 175,409 154,531 529,213 451,734 Depreciation of Rental Merchandise 106,962 97,218 323,600 293,610 Interest 2,243 1,945 6,593 5,328 Total 355,632 311,335 1,082,467 935,865 Earnings from Continuing Operations Before Taxes 32,387 22,381 105,247 94,412 Income Taxes 12,597 8,273 40,617 35,477 Net Earnings from Continuing Operations 19,790 14,108 64,630 58,935 Earnings from Discontinued Operations, Net of Tax 1,288 1,811 4,480 5,848 Net Earnings $21,078 $15,919 $69,110 $64,783 Earnings Per Share: From Continuing Operations $.37 $.26 $1.21 $1.09 From Discontinued Operations .03 .03 .08 .11 Total $.40 $.29 $1.29 $1.20 Earnings Per Share Assuming Dilution: From Continuing Operations $.37 $.26 $1.20 $1.07 From Discontinued Operations .02 .03 .08 .11 Total $.39 $.29 $1.28 $1.18 Weighted Average Shares Outstanding 53,356 54,217 53,370 54,190 Weighted Average Shares Outstanding Assuming Dilution 54,219 55,049 54,178 55,046 Selected Balance Sheet Data (In thousands) (Unaudited) September 30, December 31, 2008 2007 Cash $6,579 $5,249 Accounts Receivable, Net 48,470 47,712 Rental Merchandise, Net 630,444 571,833 Property, Plant and Equipment, Net 212,318 245,876 Other Assets, Net 213,334 184,981 Assets of Discontinued Operations 58,438 57,525 Total Assets 1,169,583 1,113,176 Bank Debt 72,321 82,884 Senior Notes 58,000 80,000 Total Liabilities 429,752 439,796 Shareholders' Equity $739,831 $673,380 Reconciliation of Revenues, Net Earnings and Earnings per Share Excluding Asset Sales of Stores and Parking Deck (In thousands, except per share amounts) (Unaudited) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Total Revenues $388,019 $333,716 $1,187,714 $1,030,277 Less Revenues from Store Asset Sales 2,646 - 8,397 780 Less Revenues from Parking Deck Sale - - - 4,878 Revenues Excluding Sales 385,373 333,716 1,179,317 1,024,619 Net Earnings 21,078 15,919 69,110 64,783 Less Gain from Store Asset Sales 1,619 - 5,158 479 Less Gain from Parking Deck Sale - - - 3,034 Net Earnings Excluding Gain from Sales $19,459 $15,919 $63,952 $61,270 Earnings Per Share Excluding Gain from Sales $.36 $.29 $1.20 $1.13 Earnings Per Share Assuming Dilution Excluding Gain from Sales $.36 $.29 $1.18 $1.11 Weighted Average Shares Outstanding 53,356 54,217 53,370 54,190 Weighted Average Shares Outstanding Assuming Dilution 54,219 55,049 54,178 55,046

Aaron Rents, Inc.

CONTACT: Gilbert L. Danielson, Executive Vice President, Chief Financial
Officer, +1-404-231-0011

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

ISSI Announces Fourth Quarter and Annual Fiscal Year 2008 Results

SAN JOSE, Calif., Oct. 28 /PRNewswire-FirstCall/ -- Integrated Silicon Solution, Inc. today reported its financial results for the fourth fiscal quarter and fiscal year ended September 30, 2008.

Revenue in the fourth fiscal quarter ended September 30, 2008 was $55.3 million, a 5.4% decrease from revenue of $58.5 million in the June 2008 quarter and a 12.6% decrease from revenue of $63.3 million in the September 2007 quarter. Gross margin for the fourth quarter was 24.2%, compared with 22.8% in the June 2008 quarter and 20.2% in the September 2007 quarter.

Based on its annual impairment analysis performed in accordance with FASB Statement No. 142, "Goodwill and Other Intangible Assets," the Company recorded a non-cash charge of $25.3 million in the fourth quarter of fiscal 2008 to write-off the carrying amount of all of its goodwill. A key indicator of this impairment was the Company's market capitalization which had dropped below the Company's net book value at fiscal year end. The goodwill write-off does not affect the Company's day-to-day business operations, cash balance or competitive position. Reflecting the goodwill charge, the Company reported a net loss for the fourth quarter of $24.7 million or ($0.92) per diluted share. On a non-GAAP basis, without the effect of the goodwill charge, net income in the fourth quarter was $0.6 million, or $0.02 per diluted share. These results compare with GAAP net income for the September 2007 fourth quarter of $3.3 million, or $0.09 per diluted share.

Revenue in the fiscal year ended September 30, 2008 was $235.2 million, a decrease of 4.1% from revenue of $245.4 million in fiscal 2007. Gross margin for fiscal 2008 was 22.6%, compared with 19.7% in fiscal 2007. Net loss for fiscal 2008 was $17.8 million, or ($0.60) per diluted share which included the $25.3 million goodwill write-off. On a non-GAAP basis, without the effect of the goodwill charge, net income was $7.6 million, or $0.25 per share. This compares to GAAP net income of $15.4 million, or $0.40 per diluted share for fiscal 2007. The Company had gains on sales of investments of $1.8 million in fiscal 2008 compared to gains of $12.0 million in fiscal 2007.

The Company's cash, cash equivalents and short-term investments totaled $50.0 million at September 30, 2008, compared to $50.8 million at June 30, 2008. In addition, the Company had long-term investments of $19.3 million at September 30, 2008. The Company's inventory at September 30, 2008 totaled $39.2 million, a reduction of $1.6 million from June 30, 2008.

"End market demand weakened considerably in the month of September due to the sudden worldwide economic crisis. As a result, our DRAM revenue declined from the prior quarter and we missed our revenue guidance. However, we were able to achieve the highest quarterly gross margin in several years," said Scott Howarth, ISSI's President and CEO. "For the year, we increased our non-commodity revenue by 8% over fiscal 2007, increased margins, and remained profitable, excluding the goodwill impairment, during a difficult period in the DRAM industry, and now a difficult economy worldwide. Our balance sheet remains very strong as we had $69.3 million in cash and investments at September 30," added Mr. Howarth.

Non-GAAP Financial Information

In addition to disclosing results determined in accordance with GAAP, ISSI has disclosed in this press release its non-GAAP net income for the September quarter and fiscal year 2008 that excludes a goodwill write-off. When presenting non-GAAP results, the Company includes a reconciliation of the non-GAAP results to the results under GAAP. Management believes that including the non-GAAP results assists investors in assessing the Company's operational performance and its performance relative to its competitors. The Company has presented these non-GAAP results as a complement to its results provided in accordance with GAAP, and these results should not be regarded as a substitute for GAAP. Management uses these non-GAAP measures to manage and assess the profitability and performance of its business and does not consider the goodwill write-off which is a non-cash charge in managing its operations. Specifically, management uses non-GAAP measures to plan and forecast future periods, to establish operational goals, to compare with its business plan and individual operating budgets, to measure management performance for purposes of executive compensation including payments to be made under bonus plans, to assist the public in measuring the Company's performance, to allocate resources and, relative to the Company's historical financial performance, to enable comparability between periods. Management also considers such non-GAAP results to be an important supplemental measure of its performance. The economic substance behind management's decision to use such non-GAAP measures relates to the goodwill charge being non-cash in nature and the non-GAAP measures being a useful measure of the potential future performance of the Company's business. In line with common industry practice and to help enable comparability with other technology companies, the Company's non-GAAP presentation excludes the impact of the goodwill write-off. Other companies may calculate non-GAAP results differently than the Company, limiting its usefulness as a comparative measure. In addition, such non-GAAP measures may exclude financial information that some may consider important in evaluating the Company's performance. Management compensates for the foregoing limitations of non-GAAP measures by presenting certain information on both a GAAP and non-GAAP basis and providing reconciliations of these certain GAAP and non-GAAP measures.

Conference Call

A conference call will be held today at 1:30 p.m. Pacific time to discuss this release. To access ISSI's conference call via telephone, dial 1-719-325-4746 by 1:20 p.m. Pacific time. The call will be webcast from ISSI's website at http://www.issi.com/.

About the Company

ISSI is a fabless semiconductor company that designs and markets high performance integrated circuits for the following key markets: (i) digital consumer electronics, (ii) networking, (iii) mobile communications, (iv) automotive electronics, and (v) industrial. The Company's primary products are high speed and low power SRAM and low and medium density DRAM. The Company also designs and markets EEPROM, SmartCards and is developing selected non- memory products focused on its key markets. ISSI is headquartered in Silicon Valley with worldwide offices in Taiwan, Japan, Singapore, China, Europe, Hong Kong, India, and Korea. Visit our web site at http://www.issi.com/.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning our strong balance sheet are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks and uncertainties include supply and demand conditions in the market place resulting from difficulties in the market, liquidity and credit concerns or other factors, unexpected reductions in average selling prices for our products, our ability to sell our products for key applications and the pricing and gross margins achieved on such sales, our ability to control or reduce operating expenses, changes in manufacturing yields, order cancellations, order rescheduling, product warranty claims, competition, the level and value of inventory held by OEM customers, or other risks listed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10-K for the period ended September 30, 2007 and our Quarterly Report on Form 10-Q for the period ended June 30, 2008. In addition, the financial information in this press release is unaudited and subject to any adjustments that may be made in connection with the year end audit. The Company assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.

Integrated Silicon Solution, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended Year Ended September 30, September 30, 2008 2007 2008 2007 (1) Net sales $55,341 $63,329 $235,229 $245,395 Cost of sales 41,953 50,567 182,033 196,959 Gross profit 13,388 12,762 53,196 48,436 Operating expenses: Research and development 5,598 4,694 20,848 20,174 Selling, general and administrative 8,202 7,016 31,429 32,660 Impairment of goodwill 25,338 - 25,338 - Total operating expenses 39,138 11,710 77,615 52,834 Operating income (loss) (25,750) 1,052 (24,419) (4,398) Interest and other income (expense), net 1,160 1,621 5,102 7,993 Gain on sale of investments - 603 1,814 12,032 Income (loss) before income taxes, minority interest and equity in net loss of affiliated companies (24,590) 3,276 (17,503) 15,627 Provision (benefit) for income taxes 56 (41) 197 4 Income (loss) before minority interest and equity in net loss of affiliated companies (24,646) 3,317 (17,700) 15,623 Minority interest in net income of consolidated subsidiary (65) (65) (63) (170) Equity in net loss of affiliated companies - - - (92) Net income (loss) $(24,711) $3,252 $(17,763) $15,361 Basic net income (loss) per share $(0.92) $0.09 $(0.60) $0.41 Shares used in basic per share calculation 26,756 37,680 29,541 37,631 Diluted net income (loss) per share $(0.92) $0.09 $(0.60) $0.40 Shares used in diluted per share calculation 26,756 37,999 29,541 37,975 Reconciliation of GAAP to Non-GAAP Financial Measures Net income (loss): On a GAAP basis $(24,711) $3,252 $(17,763) $15,361 Goodwill impairment 25,338 - 25,338 - On a non-GAAP basis $627 $3,252 $7,575 $15,361 Diluted net income (loss) per share: On a GAAP basis $(0.92) $0.09 $(0.60) $0.40 Goodwill impairment 0.94 - 0.85 - On a non-GAAP basis $0.02 $0.09 $0.25 $0.40 (1) Derived from audited financial statements. Integrated Silicon Solution, Inc. Condensed Consolidated Balance Sheets (In thousands) September 30, September 30, 2008 2007 (unaudited) (1) ASSETS Current assets: Cash and cash equivalents $42,175 $53,722 Short-term investments 7,840 80,093 Accounts receivable, net 34,741 37,030 Inventories 39,222 32,056 Other current assets 4,717 6,134 Total current assets 128,695 209,035 Property, equipment and leasehold improvements, net 24,555 23,284 Long-term investments 19,304 - Goodwill - 25,338 Purchased intangible assets, net 2,000 3,538 Other assets 1,397 1,520 Total assets $175,951 $262,715 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt and notes $- $614 Accounts payable 35,171 36,509 Accrued compensation and benefits 3,729 3,588 Accrued expenses 8,157 6,734 Total current liabilities 47,057 47,445 Other long-term liabilities 715 793 Total liabilities 47,772 48,238 Commitments and contingencies Minority interest 789 726 Stockholders' equity: Common stock 3 4 Additional paid-in capital 310,712 376,998 Accumulated deficit (180,431) (162,668) Accumulated comprehensive loss (2,894) (583) Total stockholders' equity 127,390 213,751 Total liabilities and stockholders' equity $175,951 $262,715 (1) Derived from audited financial statements.

Integrated Silicon Solution, Inc.

CONTACT: Investor Relations, John M. Cobb, Chief Financial Officer of
Integrated Silicon Solution, Inc., +1-408-969-6600, ir@issi.com

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

CACI Reports Fiscal 2009 First Quarter ResultsDiluted earnings per share increased 14.6 percent to $0.69Operating income increased 19.1 percent to $41.3 millionContract funding orders totaled a record $943 millionRevenue increased 18.3 percent to $654.8 millionOrganic revenue growth of 10.8 percentReaffirms Fiscal 2009 annual guidance

ARLINGTON, Va., Oct. 28 /PRNewswire-FirstCall/ -- CACI International Inc , a leading professional services and information technology solutions provider to the federal government, announced results today for its first fiscal quarter ended September 30, 2008. CACI provides innovative solutions to meet America's needs in national defense, intelligence, homeland security, and the improvement of government services, and is a leading strategic consolidator in its market space.

First Quarter Results

For the first quarter of Fiscal Year 2009 (FY09), we reported revenue of $654.8 million, up 18.3 percent over first quarter of Fiscal Year 2008 (FY08) revenue of $553.6 million. The increase in revenue during the quarter was driven by organic growth of 10.8 percent and acquired revenue. Operating income for the quarter was $41.3 million, up 19.1 percent compared with operating income of $34.7 million in the year earlier quarter. The operating margin was 6.3 percent, equal to the first quarter of FY08. Income before taxes for the quarter was $35.6 million, 20.5 percent higher than what was reported in the first quarter of FY08. Our tax rate increased to 41.0 percent from 38.0 percent in the year earlier quarter. During the first quarter of FY09, our tax rate was negatively impacted by non-deductible losses on assets invested in our deferred compensation plan. Net income for the first quarter was $21.0 million, or $0.69 per diluted share, up 14.8 percent compared with $18.3 million, or $0.60 per diluted share, for the first quarter of FY08. Operating cash flow in the quarter was $15.6 million compared with $23.4 million in the year earlier quarter. Days sales outstanding at the end of the quarter were 62 compared with 68 days at the end of the first quarter of FY08. Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure, were $53.3 million in the quarter, an increase of 17.4 percent over EBITDA of $45.4 million in the first quarter of FY08. The EBITDA margin, a non-GAAP measure, was 8.1 percent compared with 8.2 percent in the year earlier quarter.

First Quarter Highlights

Major highlights and accomplishments during the first quarter of FY09 include:

-- Contract funding orders totaling a record $943 million, a 33 percent increase over the first quarter of FY08. Funded backlog of approximately $1.7 billion, a 22 percent increase over the first quarter of FY08. -- A prime position on a five-year multiple award contract with a ceiling value of $260 million to support the Department of Defense (DoD) Business Transformation Agency in the area of thought leadership and change management. -- Additional contract awards with an estimated value of $989 million, including: -- Approximately $406 million in awards to support the Intelligence Community -- A five-year, single award prime task order of $150 million by the U.S. Navy's Naval Sea Systems Command to modernize maintenance applications used at shipyards and maintenance centers through information technology upgrades and software development -- Awards on the Strategic Services Sourcing (S3) contract vehicle with the U.S. Army totaling $187 million. Since March 2006, we have been awarded over $1.5 billion in task orders on this vehicle -- Intelligence Community revenue 40 percent higher than the first quarter of FY08, growing to 37 percent of our revenue for the quarter compared to 31 percent a year ago. -- An increase in the size of our revolving credit facility to $240 million. In addition, we extended the expiration date of the revolving facility to May 2011. -- Publication of "Dealing with Today's Asymmetric Threat to U.S. and Global Security," the results of a May 2008 symposium co-sponsored by CACI and the National Defense University. The first of three symposia that we are co-sponsoring, the event gathered the best minds in national security to initiate a critically needed dialogue on developing a new, integrated, and long-term strategy for countering global terrorism. The second symposium, held on October 21st and co-sponsored by the U.S. Naval Institute, focused on optimizing the United States' ability to integrate, apply, and sustain soft power capabilities against asymmetric threats. CEO Commentary

Commenting on the results, Paul Cofoni, CACI's President and CEO, said, "We are very pleased with our solid first quarter financial performance. We delivered our third consecutive quarter of double-digit growth in operating income, net income and earnings per share along with our fifth consecutive quarter of double-digit organic revenue growth. We continue to have excellent operating cash flow and strong cash collections, helping us to maintain a sound balance sheet and good creditworthiness. Contract funding increased to a record level that is by far the largest amount of quarterly funding orders we have received in our 47 years of business, and which puts our funded backlog at an all-time high. At the same time, contract awards totaled nearly $1 billion. We also continue to hire high-quality professionals at an excellent rate to support our clients' critical missions. Our performance in the quarter validates our strategy of aligning our core competencies and solutions with national security priorities, and reflects the confidence of our government customers in our ability to meet and fulfill their critical needs.

"Our positive operating trends and financial results provide us with a solid foundation for the remainder of FY09 and beyond. We are increasing our capabilities in intelligence, security services, cyber security, and soft power to help our clients meet the long-term challenges of national security. Because of our strong positioning in these key national security areas and our strong fundamentals, our growth prospects are very promising, notwithstanding this period of economic uncertainty and political transition. We remain committed to meeting our long-term financial goals of achieving at least eight to ten percent organic revenue growth and at least 15 percent net income growth."

CACI Reaffirms its FY09 Guidance

We are reaffirming our Fiscal Year 2009 (FY09) guidance. The table below summarizes the guidance ranges for FY09:

(In millions except for earnings per share) Fiscal Year 2009 Revenue $2,550 - $2,650 Net income $89.8 - $96.0 Diluted earnings per share $2.90 - $3.10 Diluted weighted average shares 31.0 These amounts do not include any contributions from future acquisitions.

This guidance represents our views as of October 28, 2008. Investors are reminded that actual results may differ from these estimates for the reasons described below and in our filings with the Securities and Exchange Commission.

Conference Call Information

We have scheduled a conference call for 8:30 AM Eastern Time Wednesday, October 29th, during which members of our senior management team will be making a brief presentation focusing on first quarter results and operating trends followed by a question-and-answer session. You can listen to the conference call and view the accompanying exhibits over the Internet by logging on to our homepage, http://www.caci.com/, at the scheduled time, or you may dial 1-877-879-6207 and enter the confirmation code 4656539. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern Time Wednesday, October 29th, and can be accessed through our homepage (http://www.caci.com/) by clicking on the CACI Investor Info button.

About CACI

CACI International Inc provides the professional services and IT solutions needed to prevail in today's defense, intelligence, homeland security and federal civilian government arenas. We deliver enterprise IT and network services; data, information, and knowledge management services; business system solutions; logistics and material readiness; C4ISR integration services; information assurance, information operations, and cyber security services; integrated security and intelligence solutions; and program management and SETA support services. CACI services and solutions help our federal clients provide for national security, improve communications and collaboration, secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. We add value to our clients' operations, increase their skills and capabilities, and enhance their missions. CACI is a member of the Fortune 1000 Largest Companies of 2007 and the Russell 2000 index. CACI provides dynamic careers for approximately 12,300 employees working in over 120 offices in the U.S. and Europe. CACI is the IT provider for a networked world. Visit CACI on the web at http://www.caci.com/.

There are statements made herein which do not address historical facts, and therefore could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited to, the following: regional and national economic conditions in the United States and the United Kingdom, including conditions that result from terrorist activities or war; changes in interest rates; currency fluctuations; significant fluctuations in the equity markets; failure to achieve contract awards in connection with recompetes for present business and/or competition for new business; the risks and uncertainties associated with client interest in and purchases of new products and/or services; continued funding of U.S. government or other public sector projects, based on a change in spending patterns, or in the event of a priority need for funds, such as homeland security, the war on terrorism or rebuilding Iraq; government contract procurement (such as bid protest, small business set asides, etc.) and termination risks; the results of government investigations into allegations of improper actions related to the provision of services in support of U.S. military operations in Iraq; individual business decisions of our clients; paradigm shifts in technology; competitive factors such as pricing pressures and/or competition to hire and retain employees (particularly those with security clearances); material changes in laws or regulations applicable to our businesses, particularly in connection with (i) government contracts for services, (ii) outsourcing of activities that have been performed by the government, (iii) competition for task orders under Government Wide Acquisition Contracts ("GWACs") and/or schedule contracts with the General Services Administration; and (iv) accounting for convertible debt instruments; our own ability to achieve the objectives of near term or long range business plans; and other risks described in the company's Securities and Exchange Commission filings.

Corporate Communications and Media: Jody Brown, Executive Vice President, Public Relations, (703) 841-7801, jbrown@caci.com Investor Relations: David Dragics, Senior Vice President, Investor Relations (866) 606-3471, ddragics@caci.com Selected Financial Data CACI International Inc Condensed Consolidated Statements of Operations (Unaudited) (Amounts in thousands, except per share amounts) Quarter Ended 9/30/2008 9/30/2007 % Change Revenue $654,760 $553,580 18.3% Costs of revenue Direct costs 443,545 372,398 19.1% Indirect costs and selling expenses 157,871 135,757 16.3% Depreciation and amortization 12,026 10,746 11.9% Total costs of revenue 613,442 518,901 18.2% Operating income 41,318 34,679 19.1% Interest expense and other, net 5,740 5,152 11.4% Income before income taxes 35,578 29,527 20.5% Income taxes 14,587 11,235 29.8% Net income $20,991 $18,292 14.8% Basic earnings per share $0.70 $0.61 14.3% Diluted earnings per share $0.69 $0.60 14.6% Weighted average shares used in per share computations: Basic 30,103 29,993 Diluted 30,567 30,518 Statement of Operations Data (Unaudited) Quarter Ended 9/30/2008 9/30/2007 Operating income margin 6.3% 6.3% Tax rate 41.0% 38.0% Net income margin 3.2% 3.3% EBITDA* $53,344 $45,425 EBITDA margin* 8.1% 8.2% *See Reconciliation of Net Income and Earnings before Interest, Taxes, Depreciation and Amortization on page 9. Selected Financial Data (Continued) CACI International Inc Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands) 9/30/2008 6/30/2008 ASSETS: Current assets Cash and cash equivalents $111,967 $120,396 Accounts receivable, net 445,806 441,732 Prepaid expenses and other current assets 41,188 40,697 Total current assets 598,961 602,825 Goodwill and intangible assets, net 1,180,953 1,193,500 Property and equipment, net 24,051 25,361 Other long-term assets 78,755 80,967 Total assets $1,882,720 $1,902,653 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities Current portion of long-term debt $3,549 $3,549 Accounts payable 76,430 74,175 Accrued compensation and benefits 110,574 126,649 Other accrued expenses and current liabilities 83,207 85,897 Total current liabilities 273,760 290,270 Long-term debt, net of current portion 637,506 639,074 Other long-term liabilities 55,781 55,424 Total liabilities 967,047 984,768 Shareholders' equity 915,673 917,885 Total liabilities and shareholders' equity $1,882,720 $1,902,653 Selected Financial Data (Continued) CACI International Inc Condensed Consolidated Statements of Cash Flows (Unaudited) (Amounts in thousands) Three Months Ended 9/30/2008 9/30/2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $20,991 $18,292 Reconciliation of net income to net cash provided by operating activities: Depreciation and amortization 12,026 10,746 Amortization of deferred financing costs 632 610 Stock-based compensation expense 5,144 5,707 Provision (benefit) for deferred income taxes 4,093 (1,149) Changes in operating assets and liabilities, net of effect of business acquisitions: Accounts receivable, net (9,857) (26,995) Prepaid expenses and other current assets (1,339) (4,659) Accounts payable and accrued expenses 1,163 9,410 Accrued compensation and benefits (21,151) (2,556) Income taxes receivable and payable 3,782 9,352 Other liabilities 164 4,630 Net cash provided by operating activities 15,648 23,388 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (2,347) (3,890) Purchases of businesses, net of cash acquired - (51,948) Other (644) (204) Net cash used in investing activities (2,991) (56,042) CASH FLOWS FROM FINANCING ACTIVITIES: Net repayments under credit facilities (887) (1,092) Proceeds from employee stock purchase plans 2,871 1,415 Proceeds from exercise of stock options 97 901 Purchase of common stock (20,936) (949) Other (1,156) (141) Net cash (used in) provided by financing activities (20,011) 134 Effect of exchange rate changes on cash and cash equivalents (1,075) 300 Net decrease in cash and cash equivalents (8,429) (32,220) Cash and cash equivalents, beginning of period 120,396 285,682 Cash and cash equivalents, end of period $111,967 $253,462 Selected Financial Data (Continued) Revenue by Customer Type (Unaudited) Quarter Ended (dollars in thousands) 9/30/2008 9/30/2007 $ Change % Change Department of Defense $492,961 75.3% $405,797 73.3% $87,164 21.5% Federal Civilian Agencies 131,831 20.1% 117,299 21.2% 14,532 12.4% Commercial 24,684 3.8% 25,903 4.7% (1,219) -4.7% State and Local Governments 5,284 0.8% 4,581 0.8% 703 15.3% Total $654,760 100.0% $553,580 100.0% $101,180 18.3% Revenue by Contract Type (Unaudited) Quarter Ended (dollars in thousands) 9/30/2008 9/30/2007 $ Change % Change Time and materials $324,101 49.5% $293,153 53.0% $30,948 10.6% Cost reimbursable 193,651 29.6% 144,191 26.0% 49,460 34.3% Fixed price 137,008 20.9% 116,236 21.0% 20,772 17.9% Total $654,760 100.0% $553,580 100.0% $101,180 18.3% Revenue Received as a Prime versus Subcontractor (Unaudited) Quarter Ended (dollars in thousands) 9/30/2008 9/30/2007 $ Change % Change Prime $537,671 82.1% $460,247 83.1% $77,424 16.8% Subcontractor 117,089 17.9% 93,333 16.9% 23,756 25.5% Total $654,760 100.0% $553,580 100.0% $101,180 18.3% Contract Funding Orders Received (Unaudited) Quarter Ended (dollars in thousands) 9/30/2008 9/30/2007 $ Change % Change Contract Funding Orders $943,122 $709,361 $233,761 33.0% Reconciliation of Total Revenue Growth and Organic Revenue Growth (Unaudited)

We are presenting organic revenue growth to reflect the effect of acquisitions on total revenue growth. Revenue generated from the date a business is acquired through the first anniversary of that date is considered acquired revenue growth. All remaining revenue growth is considered organic. We believe that this non-GAAP financial measure provides investors with useful information to evaluate the growth rate of our core business. This non-GAAP measure should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

(dollars in Quarter Ended Twelve Months Ended thousands) 9/30/2008 9/30/2007 % Change 9/30/2008 9/30/2007 % Change Revenue, as reported $654,760 $553,580 18.3% $2,521,717 $2,023,929 24.6% Less: Acquired revenue 41,363 - 228,587 - Organic revenue $613,397 $553,580 10.8% $2,293,130 $2,023,929 13.3%

Reconciliation of Net Income and Earnings before Interest, Taxes, Depreciation

and Amortization (EBITDA) (Unaudited)

EBITDA, a measure used by management to evaluate operating performance, is defined by us as GAAP net income plus net interest expense, income taxes, and depreciation and amortization, as shown on our Condensed Consolidated Statements of Operations. We believe that this non-GAAP measure is a valuable indicator of our operating performance. EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies, but EBITDA as defined by us may not be computed in the same manner as similarly titled measures used by other companies. The EBITDA margin is EBITDA divided by revenue. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

Quarter Ended (dollars in thousands) 9/30/08 9/30/07 % Change Net Income, as reported $20,991 $18,292 14.8% Plus: Income taxes 14,587 11,235 29.8% Interest expense, net 5,740 5,152 11.4% Depreciation and amortization 12,026 10,746 11.9% EBITDA $53,344 $45,425 17.4% Quarter Ended (dollars in thousands) 9/30/08 9/30/07 % Change Revenue, as reported $654,760 $553,580 18.3% EBITDA $53,344 $45,425 17.4% EBITDA margin 8.1% 8.2%

CACI International Inc

CONTACT: Corporate Communications and Media: Jody Brown, Executive Vice
President, Public Relations, +1-703-841-7801, jbrown@caci.com; Investor
Relations: David Dragics, Senior Vice President, Investor Relations, +1-866-
606-3471, ddragics@caci.com, both of CACI International Inc

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

EDAC Technologies Reports Third Quarter Results

FARMINGTON, Conn., Oct. 28 /PRNewswire-FirstCall/ -- EDAC Technologies Corporation , a designer and manufacturer of tools, fixtures, jet engine components, injection molds and spindles, today reported results for the third quarter of 2008.

Sales for the third quarter of 2008 were $10,547,000 and net income was $255,000 or $0.05 per diluted share, versus sales of $12,525,000 and net income of $864,000 or $0.17 per diluted share for the third quarter of 2007.

For the nine months ended September 27, 2008, sales were $32,577,000 and net income was $1,418,000 or $0.28 per diluted share versus sales of $37,308,000 and net income of $2,465,000 or $0.50 per diluted share for the nine months ended September 29, 2007.

Dominick A. Pagano, President and Chief Executive Officer, said, "Conditions in the aerospace markets and in the economy in general impacted our third quarter greater than we had anticipated. Our aerospace customers continued to make changes to our delivery schedules. The fourth quarter will experience further scheduling changes due to production delays in Boeing's 787 program, and delivery delays in its 777 program caused by its machinists' strike. Our Apex Machine Tool product line, while experiencing some softness in its traditional markets over the past quarter, committed certain resources to the process development and production of a large order from a customer in a new energy market that will ship in late 2008 and early 2009. Our commitment to broaden EDAC's customer base and product line is yielding results. While we maintain our traditional customers, the growth in our sales backlog to a large extent, consists of customers that we did not have at the beginning of the year."

Pagano added, "We have and will continue to be proactive in minimizing the impact of external forces that are beyond our control, and fully anticipate that the aerospace market will be strong in the long-term. Our strategy is to pursue those long-term opportunities by investing in skilled personnel and state-of-the-art machinery and equipment, and committing to continuous improvement throughout our organization. We will incur costs in the short-term, but in the long-term we believe this will build the financial and operating strength of our company, to the benefit of our shareholders."

About EDAC Technologies Corporation

EDAC Technologies Corporation is a diversified manufacturing company primarily offering (i) design and manufacturing services for the aerospace industry in such areas as jet engine parts, special tooling, equipment, gauges and components used in the manufacture, assembly and inspection of jet engines, (ii) high-precision fixtures, gauges, dies and molds and (iii) the design, manufacture and repair of precision spindles, which are an integral part of numerous machine tools found in virtually every manufacturing environment.

Cautionary Statement Regarding Forward Looking Statements -- This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company uses words such as "plans," seeks," "projects," "expects," "believes," "may," "anticipates," "estimates," "should," and similar expressions to identify these forward looking statements. These statements are subject to risks and uncertainties and are based upon the Company's beliefs and assumptions. There are a number of important factors that may affect the Company's actual performance and results and the accuracy of its forward-looking statements, many of which are beyond the control of the Company and are difficult to predict. These important factors include, without limitation, factors which could affect demand for the Company's products and services such as changes in customer delivery schedules, general economic conditions and economic conditions in the aerospace industry and the other industries in which the Company competes; competition from the Company's competitors; and the Company's ability to enter into satisfactory financing arrangements. These and other factors are described in the Company's annual and quarterly reports filed from time to time with the Securities and Exchange Commission. In addition, the forward- looking statements included in this press release represent the Company's expectations and beliefs as of the date of this release. The Company anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while the Company may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation or intention to do so.

EDAC TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the three months ended For the nine months ended Sept. 27, Sept. 29, Sept. 27, Sept. 29, 2008 2007 2008 2007 Sales $10,547,124 $12,525,403 $32,577,388 $37,308,102 Cost of sales 9,161,877 10,012,338 27,276,156 30,001,252 Gross profit 1,385,247 2,513,065 5,301,232 7,306,850 Selling, general and administrative expenses 842,868 980,308 2,676,232 2,877,958 Income from operations 542,379 1,532,757 2,625,000 4,428,892 Non-operating income (expense): Interest expense (158,885) (179,324) (478,510) (543,813) Other income 8,425 18,897 62,354 29,212 Income before income taxes 391,919 1,372,330 2,208,844 3,914,291 Provision for income taxes 137,000 508,000 791,000 1,449,000 Net income $254,919 $864,330 $1,417,844 $2,465,291 Income per common share data: Basic income per share $0.05 $0.19 $0.30 $0.54 Diluted income per share $0.05 $0.17 $0.28 $0.50 Weighted average shares outstanding: Basic 4,746,137 4,605,603 4,693,020 4,571,936 Diluted 5,139,922 4,953,970 5,152,739 4,909,430 EDAC TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Audited) September 27, December 29, 2008 2007 ASSETS CURRENT ASSETS: Cash $2,011,935 $3,286,203 Accounts receivable, net 8,035,291 7,638,573 Inventories, net 9,648,975 6,598,111 Prepaid expenses and other current assets 143,905 51,339 Refundable income taxes - 284,577 Deferred income taxes 880,124 933,124 Total current assets 20,720,230 18,791,927 PROPERTY, PLANT AND EQUIPMENT 35,192,245 34,869,219 Less: accumulated depreciation 23,665,109 22,390,417 11,527,136 12,478,802 OTHER ASSETS, net 1,224,174 492,051 TOTAL ASSETS $33,471,540 $31,762,780 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Equipment line of credit $1,365,590 $- Current portion of long-term debt 2,350,876 2,285,704 Trade accounts payable 4,342,755 4,021,827 Employee compensation and amounts withheld 1,484,161 1,800,390 Accrued expenses 226,508 395,950 Customer advances 891,827 424,439 Total current liabilities 10,661,717 8,928,310 LONG-TERM DEBT, less current portion 5,434,412 7,204,769 DEFERRED INCOME TAXES 448,660 448,660 SHAREHOLDERS' EQUITY: Common stock 12,063 11,591 Additional paid-in capital 10,573,271 10,245,877 Retained earnings 7,438,086 6,020,242 Accumulated other comprehensive loss (1,096,669) (1,096,669) Total shareholders' equity 16,926,751 15,181,041 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $33,471,540 $31,762,780 Contact: Glenn L. Purple, Vice President-Finance 860-677-2603

EDAC Technologies Corporation

CONTACT: Glenn L. Purple, Vice President-Finance, EDAC Technologies
Corporation, +1-860-677-2603

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

ARRIS Announces Preliminary and Unaudited Third Quarter 2008 Results

SUWANEE, Ga., Oct. 28 /PRNewswire-FirstCall/ -- ARRIS Group, Inc. , a global technology leader in advanced cable telephony and broadband access equipment, next generation high-speed data, and video applications and operations software solutions, today announced preliminary and unaudited financial results for the third quarter 2008.

Third quarter 2008 revenues of $297.6 million represent an increase of $16.5 million, or 6%, as compared to second quarter 2008 revenues of $281.1 million. Third quarter and first nine month 2008 revenues increased $42.9 million, or 17%, and $109.5 million, or 15%, respectively, as compared to the same periods in 2007, primarily as a result of the C-COR acquisition in December 2007. Third quarter 2008 gross margin was $106.1 million, or 35.7%, as compared to $92.9 million, or 33.0%, in the second quarter 2008 and $68.8 million, or 27.0%, in the third quarter 2007. Order backlog decreased to $144.1 million at the end of the third quarter 2008 as compared to $206.0 million at the end of the second quarter 2008. Book-to-bill ratio in the third quarter 2008 was 0.79.

GAAP net income in the third quarter 2008 was $0.19 per diluted share, as compared to $0.08 per diluted share in the second quarter 2008 and $0.25 per diluted share in the third quarter 2007. Adjusted (non-GAAP) net income in the third quarter 2008 was $0.24 per diluted share, as compared to $0.15 per diluted share in the second quarter 2008 and $0.21 in the third quarter 2007. Items excluded from the computed adjusted (non-GAAP) net income include amortization of intangibles, certain tax benefits and costs, equity compensation expense and adjustments to restructuring accruals. A reconciliation of GAAP to adjusted (non-GAAP) earnings per share is attached to this release and also can be found on the Company's website (http://www.arrisi.com/).

The Company ended the third quarter 2008 with $329.6 million of cash and short-term investments, which compares to $297.8 million at the end of the second quarter 2008. The Company generated $44.9 million of cash from operating activities in the third quarter 2008.

The Company also announced that its flagship Cable Modem Termination System (CMTS), the ARRIS C4, continues to ship in record numbers to cable operators around the world. The ARRIS C4 CMTS supports downstream channel bonding capabilities for speeds up to 160 Mbp/s, which enables cable operators to deploy a cost-effective platform for new revenue generating video over IP applications, as well as far greater channel density per rack unit of space. The ARRIS C4 CMTS is deployed by the world's largest cable operators and supports more than 18 million subscribers worldwide. ARRIS C4 DOCSIS 3.0 equipment has already been delivered to operators in the United States, Canada, South America, Europe, and Asia.

"Our CMTS business in the quarter was remarkably strong with record shipments as customers began their rollouts of new DOCSIS 3.0 wideband platforms," said Bob Stanzione, ARRIS Chairman & CEO. "Partially offsetting our strong CMTS performance were the expected Access, Transport & Supplies results. Although the current economic climate may present some obstacles in the near term, demand for ARRIS products that enable high speed data and video traffic remains strong as both competition and traffic intensifies. In addition, opportunities in Latin America, Asia and Europe, give me optimism that our international sales will be a bright spot in ARRIS' results in the coming year. ARRIS products for high speed data, VoIP, ad insertion, Operations Support System solutions and on-demand video were well received last month at the International Broadcasting Convention in Amsterdam. Therefore, I continue to be very optimistic about the future of ARRIS because even in light of the macro economic climate, consumers more than ever need to remain connected to the internet."

"The ARRIS team delivered strong results in the third quarter in the face of difficult economic times," said David Potts, ARRIS EVP & CFO. "We have made substantial progress toward the financial goals that we established earlier this year. At this point we now project that revenues for the Company in the fourth quarter 2008 will be in the range of $280 to $300 million with GAAP net income per diluted share in the range of $0.16 to $0.21 and adjusted (non-GAAP) net income per diluted share, in the range of $0.22 to $0.27. This guidance reflects a cumulative tax benefit of approximately $0.03 per diluted share associated with the recent passage of the extension of R&D tax credit legislation.

ARRIS management will conduct a conference call at 5:00pm EDT, today, Tuesday, October 28, 2008, to discuss these results in detail. You may participate in this conference call by dialing 888-713-4218 or 617-213-4870 for international calls prior to the start of the call and providing the ARRIS Group, Inc. name, conference pass code 13270376 and Jim Bauer as the moderator. Please note that ARRIS will not accept any calls related to this earnings release until after the conclusion of the conference call. A replay of the conference call can be accessed approximately two hours after the call through November 2, 2008 by dialing 888-286-8010 or 617-801-6888 for international calls and using the pass code 63707556. A replay also will be made available for a period of 12 months following the conference call on ARRIS' website at http://www.arrisi.com/.

ARRIS is a global communications technology company specializing in the design, engineering and supply of technology supporting triple and quad-play broadband services for residential and business customers around the world. The company supplies broadband operators with the tools and platforms they need to deliver reliable telephony, demand driven video, next-generation advertising and high-speed data services. ARRIS products expand and help grow network capacity with access and outside plant construction equipment, reliably deliver voice, video and data services and assure optimal service delivery for end customers. Headquartered in Suwanee, Georgia, USA, ARRIS has R&D centers in Atlanta, Chicago, Beaverton, State College, Wallingford, Ireland and China, and operates support and sales offices throughout the world. Information about ARRIS products and services can be found at http://www.arrisi.com/.

Forward-looking statements: Statements made in this press release, including those related to: -- fourth quarter and 2008 revenues and net income; -- full year 2008 and 2009 outlook, and -- the general market outlook;

are forward-looking statements. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Among other things,

-- projected results for the fourth quarter as well as the general outlook for 2009 and beyond are based on preliminary estimates, assumptions and projections that management believes to be reasonable at this time, but are beyond management's control;

-- we operate in a capital intensive industry, and the recent disruptions in the financial markets may make it more difficult for our customers to expand and update their equipment, thereby, negatively impacting sales of equipment by us; and

-- because the market in which ARRIS operates is volatile, actions taken and contemplated may not achieve the desired impact relative to changing market conditions, and the success of these strategies will be dependent on the effective implementation of those plans while minimizing organizational disruption.

In addition to the factors set forth elsewhere in this release, other factors that could cause results to differ from current expectations include: the impact of rapidly changing technologies; the impact of competition on product development and pricing; the ability of ARRIS to react to changes in general industry and market conditions including regulatory developments; rights to intellectual property and the increasing trend of patent lawsuits being brought by financial investors in patents; the adoption of industry standards; and consolidations within the telecommunications industry of both the customer and supplier base. These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company's business. Additional information regarding these and other factors can be found in ARRIS' reports filed with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2007 and its Form 10-Q for the quarter ended June 30, 2008. The Company expressly disclaims any obligation to update publicly or otherwise these statements, whether as a result of new information, future events or otherwise.

ARRIS GROUP, INC. CONSOLIDATED BALANCE SHEETS (in thousands) September 30, June 30, March 31, 2008 2008 2008 (unaudited) (unaudited) (unaudited) ASSETS Current assets: Cash and cash equivalents $305,987 $290,266 $243,515 Short-term investments, at fair value 23,571 7,503 49,513 Total cash, cash equivalents and short-term investments 329,558 297,769 293,028 Restricted cash 5,768 7,051 7,186 Accounts receivable, net 168,121 168,664 159,881 Other receivables 5,180 9,067 6,074 Inventories, net 141,564 147,716 125,105 Prepaids 5,156 5,305 5,680 Current deferred income tax assets 37,999 43,749 47,051 Other current assets 20,167 15,707 8,209 Total current assets 713,513 695,028 652,214 Property, plant and equipment, net 60,268 60,823 60,747 Goodwill 449,418 452,398 453,454 Intangible assets, net 236,689 244,575 257,029 Investments 12,784 9,937 10,200 Noncurrent deferred income tax assets 3,312 3,547 3,688 Other assets 11,282 11,383 12,624 $1,487,266 $1,477,691 $1,449,956 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $54,304 $68,476 $60,490 Accrued compensation, benefits and related taxes 21,831 18,072 14,397 Accrued warranty 7,554 7,566 7,919 Deferred revenue 24,974 28,100 19,901 Current portion of long-term debt 234 314 310 Other accrued liabilities 25,490 23,221 27,980 Total current liabilities 134,387 145,749 130,997 Long-term debt, net of current portion 276,371 276,606 276,686 Accrued pension 10,622 11,362 10,905 Noncurrent income tax payable 10,128 6,250 6,487 Noncurrent deferred income tax liability 42,337 48,725 47,090 Other long-term liabilities 15,655 18,694 19,704 Total liabilities 489,500 507,386 491,869 Stockholders' equity: Preferred stock - - - Common stock 1,360 1,358 1,357 Capital in excess of par value 1,102,112 1,098,581 1,095,716 Treasury stock at cost (75,960) (76,007) (76,007) Unrealized gain (loss) on marketable securities (128) 66 151 Unfunded pension liability (3,358) (3,358) (3,358) Accumulated deficit (26,076) (50,151) (59,588) Cumulative translation adjustments (184) (184) (184) Total stockholders' equity 997,766 970,305 958,087 $1,487,266 $1,477,691 $1,449,956 ARRIS GROUP, INC. CONSOLIDATED BALANCE SHEETS (in thousands) December 31, September 30, 2007 2007 (unaudited) ASSETS Current assets: Cash and cash equivalents $323,797 $370,708 Short-term investments, at fair value 68,011 217,845 Total cash, cash equivalents and short-term investments 391,808 588,553 Restricted cash 6,977 3,142 Accounts receivable, net 166,953 130,216 Other receivables 4,330 5,000 Inventories, net 131,792 118,227 Prepaids 5,856 3,626 Current deferred income tax assets 44,939 19,602 Other current assets 4,841 13,703 Total current assets 757,496 882,069 Property, plant and equipment, net 59,156 31,251 Goodwill 455,352 150,569 Intangible assets, net 269,893 115 Investments 6,412 8,916 Noncurrent deferred income tax assets 3,459 16,238 Other assets 10,181 9,084 $1,561,949 $1,098,242 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $58,852 $35,540 Accrued compensation, benefits and related taxes 26,177 18,857 Accrued warranty 8,298 4,085 Deferred revenue 8,474 6,273 Current portion of long-term debt 35,305 - Other accrued liabilities 42,121 20,854 Total current liabilities 179,227 85,609 Long-term debt, net of current portion 276,765 276,000 Accrued pension 10,455 11,810 Noncurrent income tax payable 6,322 5,262 Noncurrent deferred income tax liability 45,255 - Other long-term liabilities 18,158 8,404 Total liabilities 536,182 387,085 Stockholders' equity: Preferred stock - - Common stock 1,356 1,104 Capital in excess of par value 1,093,498 789,348 Treasury stock at cost (572) - Unrealized gain (loss) on marketable securities 20 (151) Unfunded pension liability (3,358) (4,462) Accumulated deficit (64,993) (74,498) Cumulative translation adjustments (184) (184) Total stockholders' equity 1,025,767 711,157 $1,561,949 $1,098,242 ARRIS GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) For the Three Months For the Nine Months Ended September 30, Ended September 30, 2008 2007 2008 2007 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $297,551 $254,662 $852,167 $742,633 Cost of sales 191,417 185,828 567,901 532,676 Gross margin 106,134 68,834 284,266 209,957 Gross margin % 35.7% 27.0% 33.4% 28.3% Operating expenses: Selling, general, and administrative expenses 33,012 23,778 107,040 74,408 Research and development expenses 27,473 17,797 83,257 53,684 Restructuring and impairment charges 202 - 782 421 Amortization of intangible assets 9,146 57 34,854 173 69,833 41,632 225,933 128,686 Operating income 36,301 27,202 58,333 81,271 Other expense (income): Interest expense 1,738 1,683 4,964 5,003 Loss (gain) on investments 37 (3,453) 210 (4,878) Loss (gain) on foreign currency 382 (112) (258) 64 Interest income (1,504) (6,307) (5,891) (19,249) Gain related to terminated acquisition, net of expenses - - - (22,835) Other (income) expense, net (72) 215 (43) 331 Income from continuing operations before income taxes 35,720 35,176 59,351 122,835 Income tax expense 11,645 7,654 20,434 34,395 Net income from continuing operations 24,075 27,522 38,917 88,440 Income from discontinued operations - 330 - 330 Net income $24,075 $27,852 $38,917 $88,770 Net income per common share - Basic: Income from continuing operations $0.20 $0.25 $0.31 $0.81 Income from discontinued operations - - - - Net income $0.20 $0.25 $0.31 $0.81 Diluted: Income from continuing operations $0.19 $0.25 $0.31 $0.79 Income from discontinued operations - - - - Net income $0.19 $0.25 $0.31 $0.80 Weighted average common shares: Basic 122,922 110,178 125,466 109,354 Diluted 125,420 112,085 127,249 111,595 ARRIS GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the Three Months For the Nine Months Ended September 30, Ended September 30, 2008 2007 2008 2007 (unaudited) (unaudited)(unaudited) (unaudited) Operating Activities: Net income $24,075 $27,852 $38,917 $88,770 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 5,426 2,858 15,521 8,003 Amortization of intangible assets 9,146 57 34,854 173 Stock compensation expense 2,895 2,676 8,286 8,710 Deferred income tax provision 5,889 4,693 10,461 14,319 Amortization of deferred finance fees 278 279 835 836 Provision for doubtful accounts 151 (112) 365 484 Gain related to previously written off receivables - - - (377) Gain on discontinued product line - (330) - (330) Loss (gain) on disposal of fixed assets (13) 167 (15) 167 Loss (gain) on investments 37 (3,453) 210 (4,878) Gain related to terminated acquisition, net of expenses - - - (22,835) Excess tax benefits from stock-based compensation plans (145) (1,738) (145) (8,269) Changes in operating assets & liabilities, net of effects of acquisitions and disposals: Accounts receivable 913 (9,424) 143 (15,396) Other receivables 736 1,845 (4,001) (2,444) Inventory 6,425 (27,685) (7,994) (24,001) Accounts payable and accrued liabilities (8,146) (8,540) (6,642) (32,080) Other, net (2,791) (2,420) (4,984) (262) Net cash provided by (used in) operating activities 44,876 (13,275) 85,811 10,590 Investing Activities: Purchases of property, plant, and equipment (4,652) (4,083) (16,444) (11,138) Cash proceeds related to terminated acquisition, net of expenses paid - - - 10,554 Cash paid for hedge related to terminated acquisition - - - (26,469) Cash proceeds from hedge related to terminated acquisition - - - 38,750 Cash paid for acquisitions, net of cash acquired (5,094) - (9,513) - Cash proceeds from sale of property, plant & equipment 13 3 250 3 Cash proceeds from sale of short-term investments - - 16 - Purchases of short-term- investments (66,111) (97,776) (82,998) (295,626) Disposals of short-term- investments 50,006 37,792 122,470 162,902 Purchases of investment securities (4,000) - (4,000) - Net cash provided by (used in) investing activities (29,838) (64,064) 9,781 (121,024) Financing Activities: Payment of debt and capital lease obligations (322) - (35,518) - Repurchase of common stock 47 - (75,913) - Excess tax benefits from stock- based compensation plans 145 1,738 145 8,269 Employer repurchase of shares to satisfy minimum tax withholdings - (1,402) (1,035) (3,092) Fees and proceeds from issuance of common stock, net 813 3,691 (1,081) 14,347 Net cash provided by (used in) financing activities 683 4,027 (113,402) 19,524 Net increase (decrease) in cash and cash equivalents 15,721 (73,312) (17,810) (90,910) Cash and cash equivalents at beginning of period 290,266 444,020 323,797 461,618 Cash and cash equivalents at end of period $305,987 $370,708 $305,987 $370,708 ARRIS GROUP, INC. SUPPLEMENTAL NET INCOME RECONCILIATION (in thousands, except per share data) (unaudited) Q1 2008 Q2 2008 Q3 2008 YTD 2008 Per Per Per Per Diluted Diluted Diluted Diluted Amount Share Amount Share Amount Share Amount Share Net income $5,405 $0.04 $9,437 $0.08 $ 24,075 $0.19 $ 38,917 0.31 Highlighted items: Impacting gross margin: Stock compen- sation expense 201 - 245 - 264 0.00 710 0.01 Impacting operating expenses: Integration costs 427 - - - - - 427 - Restructuring charges - adj to existing accruals 405 - 175 - 202 0.00 782 0.01 Amortization of intan- gible assets 13,254 0.10 12,454 0.10 9,146 0.07 34,854 0.27 Stock compen- sation expense 2,350 0.02 2,595 0.02 2,631 0.02 7,576 0.06 Impacting income tax expense: Adj of income tax valuation allowances and research & development credits and other - - - - (1,565) (0.01) (1,565) (0.01) Tax related to highlighted items above (6,294) (0.05) (5,732) (0.05) (4,150) (0.03) (16,176) (0.13) Total highlighted items 10,343 0.08 9,737 0.08 6,528 0.05 26,608 0.21 Net income excluding highlighted items $ 15,748 $0.12 $ 19,174 $0.15 $ 30,603 $0.24 $ 65,525 $0.51 131,981 124,651 125,420 127,249 Q1 2007 Q2 2007 Q3 2007 YTD 2007 Per Per Per Per Diluted Diluted Diluted Diluted Amount Share Amount Share Amount Share Amount Share Net income $ 37,644 $0.34 23,274 $0.21 $ 27,852 $0.25 $ 88,770 0.80 Highlighted items: Impacting gross margin: Stock compen- sation expense 165 - 229 - 196 0.00 590 0.01 Impacting operating expenses: Gain related to previously written off receiv- ables (377) - - - - - (377) - Restructuring charges - adj to existing accruals 421 - - - - - 421 - Amortization of intan- gible assets 58 - 58 - 57 0.00 173 - Stock compen- sation expense 2,491 0.02 3,149 0.03 2,480 0.02 8,120 0.07 Impacting net income from continuing operations: Gains related to termin- ated acquisition, net of expens- es (22,835) (0.21) - - - - (22,835) (0.20) Gain on invest- ments - - (1,345) (0.01) (3,519) (0.03) (4,864) (0.04) Impacting discontinued operations: Gains related to previously written off receiv- ables - - - - (330) (0.00) (330) - Impacting income tax expense: Adjustments of income tax valuation allowances and research & development credits and other (3,246) (0.03) - - (3,466) (0.03) (6,712) (0.06) Tax related to high- lighted items above 7,754 0.07 (670) (0.01) 423 0.00 7,507 0.07 Total high- lighted items (15,569) (0.14) 1,421 0.01 (4,160) (0.04) (18,308) (0.16) Net income excluding highlighted items $22,075 $0.20 $24,695 $0.22 $23,692 $0.21 $70,463 $0.63 110,988 111,698 112,085 111,595

With respect to stock compensation expense, ARRIS records non-cash compensation expense related to grants of options and restricted stock. Depending upon the size, timing and the terms of the grants, this non-cash compensation expense may vary significantly. ARRIS recognized a gain in both Q1 and Q3 of 2007 associated with previously written off receivables. With respect to amortization of intangibles, the intangibles being amortized relate to our recent acquisition of C-COR. The restructuring charge adjustments reflect items that, although they or similar items might recur, are of a nature and magnitude that identifying them separately provides investors with a greater ability to project ARRIS' future performance. In the second quarter of 2007, ARRIS realized a gain before tax of $1.3 million on its deferred compensation asset that had been previously recorded as an unrealized gain on the balance sheet. During the third quarter of 2007, ARRIS bought and sold investments and realized a gain of $3.5 million. In the third quarter of 2007, a tax benefit of approximately $3.5 million was recorded for a reversal of valuation allowances and research and development tax credits related to a tax credit study that was undertaken for prior years (2001 - 2006). During the first quarter of 2007, ARRIS announced that it entered into a transaction agreement with TANDBERG Television ASA, in which ARRIS was to buy all the outstanding shares of TANDBERG. ARRIS was subsequently outbid by another buyer and the transaction agreement was terminated during the first quarter 2007. ARRIS recorded gains, net before tax, of $22.8 million related to the termination of the transaction (termination fee, foreign exchange gains, and expenses). The net termination fee resulted in a capital gain which provided greater access to prior tax capital losses that had previously been viewed as more likely than not unrealizable. As a result, net income tax valuation allowances totaling $3.2 million were reversed in the first quarter 2007. During the first quarter of 2008, ARRIS recorded incremental costs of $0.4 million as a result of the C-COR integration. In the third quarter of 2008, ARRIS recorded a net tax benefit of $1.6 million related to provision to return differences resulting from the filing of the 2007 tax return.

In assessing operating performance and preparing budgets and forecasts, ARRIS' management considers performance after making these adjustments and believes that providing investors with the same information provides greater transparency and insight into management's analysis. ARRIS expects to continue providing similar information in the future with schedules reconciling the differences between GAAP and non-GAAP financial measures.

ARRIS GROUP, INC. Net Income Reconciliation (unaudited) Q4 EPS 2008 Guidance Estimated GAAP EPS - diluted $0.16 - $0.21 Reconciling Items Amortization of intangibles, after tax 0.05 Stock compensation expense, after tax 0.01 Subtotal 0.06 Estimated adjusted (non-GAAP) EPS - diluted $0.22 - $0.27 See the Supplemental Net Income Reconciliation for a discussion regarding management's reasoning for providing this non-GAAP financial measure

ARRIS Group, Inc.

CONTACT: Jim Bauer, Investor Relations, ARRIS, +1-678-473-2647,
jim.bauer@arrisi.com

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

Plexus Reports 19% Organic Revenue Growth for Fiscal 2008Record Fiscal Fourth Quarter Revenue of $476 Million, EPS of $0.43Initiates Q1 Revenue Guidance of $455 - $480 Million

NEENAH, Wis., Oct. 28 /PRNewswire-FirstCall/ -- Plexus Corp. today announced:

Fiscal 2008 Results: -- Revenue: $1.84 billion, up 19% over prior year -- ROIC: 20.1% -- Five year organic revenue CAGR: 18% Q4 Fiscal 2008 Results (quarter ended September 27, 2008): -- Revenue: $476 million -- Diluted GAAP EPS of $0.43, including $0.05 per share of stock-based compensation expense, $0.05 per share of restructuring costs and a $0.05 per share benefit due to a change in tax rate. Q1 Fiscal 2009 Guidance: -- Revenue: $455 to $480 million -- Diluted EPS: $0.38 to $0.43, excluding any restructuring charges and including approximately $0.06 per share of stock-based compensation expense.

Dean Foate, President and CEO, commented, "Fiscal 2008 was an excellent year for Plexus. We delivered revenue growth of 19.1%, ending the year at a record $1.84 billion. Our sector-focused business development strategy delivered growth in all five of our end-market sectors. Our five year compounded annual growth rate (CAGR) now stands at 18%. Our commitment to profitable, organic revenue growth delivered returns on invested capital (ROIC) of 20.1%, well above our weighted average cost of capital (WACC). Our strong growth rate and economic profit performance were real achievements in an increasingly challenging macroeconomic environment."

Mr. Foate continued, "We are very pleased with our strong finish to fiscal 2008. Fourth quarter revenue grew 4.3% sequentially to $476 million, a record result. We are establishing first quarter fiscal 2009 revenue guidance of $455 to $480 million with EPS of $0.38 to $0.43, excluding any restructuring charges and including approximately $0.06 per share of stocked-based compensation expense."

Ginger Jones, Chief Financial Officer, added "Gross and operating margins were 10.5% and 4.4%, respectively, for the fourth quarter. Operating margin was 4.8% before restructuring charges. This is a strong result and consistent with our 20-10-5 financial model (20% ROIC target, 10% gross margin target and 5% operating margin target)."

Ms. Jones continued, "Our EPS for Q4 was impacted by two significant items. First, our tax rate for fiscal 2008 was 18%, due to the regional mix of production in the fourth quarter. This was lower than the 20% tax rate used when we established our guidance for this quarter. Consequently, diluted EPS for the quarter was $0.05 higher than we would have anticipated. Second, we recognized approximately $2.1 million of pre-tax restructuring charges during the quarter, primarily for the closure of our Ayer, MA facility which was announced on August 12, 2008. These restructuring charges reduced diluted EPS for the quarter by approximately $0.05. In comparison to our original guidance, which excluded restructuring charges, we recognized non-GAAP EPS of $0.48. This was above our original guidance range based on the tax rate benefit during the quarter."

Mr. Foate continued, "We are pleased to report that we enjoyed an exceptional quarter of new manufacturing business wins, which we currently estimate will deliver approximately $200 million in annualized revenue when the programs are fully ramped in production over the coming quarters, subject to risks around the timing and ultimate realization of the forecasted revenues. In addition to these manufacturing wins, we have also won a new confidential customer program in our Industrial/Commercial sector to produce a complex, mechatronics product. This program is currently forecasted to deliver approximately $30 million of revenue, largely in the second half of fiscal 2009. Depending upon market acceptance, economic factors and the general uncertainty and risks of new-to-market products, this program could potentially result in a new top five customer for Plexus. This program represents the second significant mechatronics win for Plexus since we made the strategic decision this past year to pursue opportunities in this space."

Mr. Foate added, "Over the past several years we have consistently set our target revenue growth range at 15% to 18%. With our five year organic CAGR at 18% and our ROIC in excess of our WACC, we believe that we have demonstrated the strength of our go-to-market strategy and the value of the Plexus brand in the market. Our fiscal first quarter guidance in combination with our exceptional new business win performance this past quarter suggests that we are off to a solid start for fiscal 2009. But, given the current macroeconomic environment and our uncertainty in customer forecasts, we are refraining from providing full year fiscal 2009 revenue targets until forecasts begin to stabilize and visibility improves."

Foate concluded, "Despite the challenges in the environment we will continue to make prudent investments to service our customers and support long term growth, such as the previously announced modest expansions in North America and our new footprint in Hangzhou, China. Additionally, you should expect us to make modest investments to support our new business wins in the mechatronics space and we remain committed to our strategic initiative to establish our first regional presence in Central/Eastern Europe, continuing our quest to be the best-in-world EMS provider serving the mid-to-low-volume, higher-mix segment of the market."

Plexus provides non-GAAP supplemental information. Non-GAAP income statements exclude transactions that are not expected to have an effect on future operations. Such transactions include restructuring costs, as well as the establishment or reduction of the valuation allowance for deferred tax assets. These non-GAAP financial data are provided to facilitate meaningful period-to-period comparisons of underlying operational performance by eliminating infrequent or unusual charges. Similar non-GAAP financial measures, including ROIC, are used for internal management assessments because such measures provide additional insight into ongoing financial performance. In particular, we provide ROIC because we believe it offers insight into the metrics that are driving management decisions as well as management's performance under the tests which it sets for itself. Please refer to the attached reconciliations of non-GAAP supplemental data.

MARKET SECTOR BREAKOUT

Plexus reports revenue based on the market sector breakout set forth in the table below, which reflects the Company's sales and marketing focus.

Market Sector Q3 - F08 Q4 - F08 F07 F08 Wireline/ Networking $215 M 47% $218 M 46% $679 M $803 M Wireless Infrastructure $41 M 9% $50 M 10% $130 M $175 M Medical $99 M 22% $97 M 20% $369 M $383 M Industrial/ Commercial $72 M 16% $75 M 16% $235 M $288 M Defense/ Security/ Aerospace * $29 M 6% $36 M 8% $133 M $193 M Total Revenue $456 M $476 M $1,546 M $1,842 M * The Defense / Security / Aerospace sector includes revenue from a large, un-named defense program of $1 million in Q3 F08, $2 million in Q4 F08, $62 million in F07 and $86 million in F08. FISCAL Q4 HIGHLIGHTS -- ROIC for the fourth fiscal quarter and fiscal 2008 was 20.1%. The Company defines ROIC as tax-effected operating income divided by average capital employed over a rolling five-quarter period. Capital employed is defined as equity plus debt, less cash and cash equivalents and short-term investments. In periods including restructuring charges we compute adjusted ROIC excluding restructuring costs to better compare ongoing operations. -- Cash flow used by operations was approximately $400,000 for the quarter. -- Top 10 customers comprised 61% of revenue during the quarter, down 1 percentage point from the previous quarter. -- Juniper Networks Inc., with 19% of revenue, was the only customer representing 10% or more of revenue for the quarter. -- Capital expenditures for the quarter were $16.5 million. -- Cash Conversion Cycle: Cash Conversion Cycle Q3 - F08 Q4 - F08 Days in Accounts Receivable 48 Days 49 Days Days in Inventory 77 Days 73 Days Days in Accounts Payable (57) Days (50) Days Annualized Cash Cycle 68 Days 72 Days Conference Call/Webcast and Replay Information: What: Plexus Corp.'s Fiscal Q4 Earnings Conference Call When: Wednesday, October 29th at 8:30 a.m. Eastern Time Where: 888-693-3477 or 973-582-2710 with conference ID: 66839512 http://www.videonewswire.com/PLXS/102908 (requires Windows Media Player) Replay: The call will be archived until November 5, 2008 at midnight Eastern Time http://www.videonewswire.com/PLXS/102908 or via telephone replay at 800-642-1687 or 706-645-9291 PIN: 66839512 About Plexus Corp. -- The Product Realization Company

Plexus (http://www.plexus.com/) is an award-winning participant in the Electronic Manufacturing Services (EMS) industry, providing product design, supply chain and materials management, manufacturing, test, fulfillment and aftermarket solutions to branded product companies in the Wireline/Networking, Wireless Infrastructure, Medical, Industrial/Commercial and Defense/Security/Aerospace market sectors.

The Company's unique Focused Factory manufacturing model and global supply chain solutions are strategically enhanced by value-added product design and engineering services. Plexus specializes in mid- to low-volume, higher-mix customer programs that require flexibility, scalability, technology and quality.

Plexus provides award-winning customer service to more than 100 branded product companies in North America, Europe and Asia.

Safe Harbor and Fair Disclosure Statement

The statements contained in this release which are guidance or which are not historical facts (such as statements in the future tense and statements including "believe," "expect," "intend," "plan," "anticipate," "goal," "target" and similar terms and concepts), including all discussions of periods which are not yet completed, are forward-looking statements that involve risks and uncertainties, including, but not limited to: the economic performance of the electronics, technology and defense industries; the risk of customer delays, changes or cancellations in both ongoing and new programs; the poor visibility of future orders, particularly in view of current economic conditions; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; our ability to secure new customers and maintain our current customer base; the risks relative to a new confidential customer in the Industrial/Commercial sector, including customer delays, start-up costs, our potential inability to execute and lack of a track record of order volume and timing; the risks of concentration of work for certain customers; the weakness of the economy and the instability of the global banking system and the potential inability of us or our customers to access cash investments and credit facilities; material cost fluctuations and the adequate availability of components and related parts for production; the effect of changes in average selling prices; the effect of start-up costs of new programs and facilities, including our recent and planned expansions; the adequacy of restructuring and similar charges as compared to actual expenses, including the announced closure of our Ayer, MA facility; the degree of success and the costs of efforts to improve the financial performance of our Mexican operations; possible unexpected costs and operating disruption in transitioning programs; the costs and inherent uncertainties of pending litigation; market reaction to the recently completed share repurchase program; the effect of general economic conditions and world events (such changes in oil prices, terrorism and war in the Middle East); the impact of increased competition; and other risks detailed in the Company's Securities and Exchange Commission filings (particularly in Part II, Item 1A of our quarterly report on Form 10-Q for the quarter ended June 28, 2008).

(financial tables follow) PLEXUS CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Twelve Months Ended September 27, September 29, September 27, September 29, 2008 2007 2008 2007 Net sales $475,970 $425,679 $1,841,622 $1,546,264 Cost of sales 426,147 371,960 1,635,861 1,382,725 Gross profit 49,823 53,719 205,761 163,539 Operating expenses: Selling and administrative expenses 26,850 21,175 100,815 82,263 Restructuring costs 2,119 906 2,119 1,838 28,969 22,081 102,934 84,101 Operating income 20,854 31,638 102,827 79,438 Other income (expense): Interest expense (2,823) (742) (6,543) (3,168) Interest income 1,296 2,371 7,661 9,099 Miscellaneous income (expense) (245) (32) (1,330) (1,115) Income before income taxes 19,082 33,235 102,615 84,254 Income tax expense 1,764 8,332 18,471 18,536 Net income $17,318 $24,903 $84,144 $65,718 Earnings per share: Basic $ 0.44 $ 0.54 $1.94 $1.42 Diluted $ 0.43 $ 0.53 $1.92 $1.41 Weighted average shares outstanding: Basic 39,358 46,375 43,340 46,312 Diluted 39,851 46,864 43,850 46,739 PLEXUS CORP. NON-GAAP SUPPLEMENTAL INFORMATION (in thousands, except per share data) (unaudited) Statements of Operations Three Months Ended Twelve Months Ended September 27, September 29, September 27, September 29, 2008 2007 2008 2007 Net income - GAAP $17,318 $24,903 $84,144 $65,718 Add: Income tax expense 1,764 8,332 18,471 18,536 Income before income taxes - GAAP 19,082 33,235 102,615 84,254 Add:Restructuring costs* 2,119 906 2,119 1,838 Income before income taxes and excluding restructuring costs - Non-GAAP 21,201 34,141 104,734 86,092 Income tax expense - Non-GAAP 1,960 8,535 18,852 18,940 Net income - Non-GAAP $19,241 $25,606 $85,882 $67,152 Earnings per share - Non-GAAP: Basic $0.49 $0.55 $1.98 $1.45 Diluted $0.48 $0.55 $1.96 $1.44 Weighted average shares outstanding: Basic 39,358 46,375 43,340 46,312 Diluted 39,851 46,864 43,850 46,739 * Summary of restructuring costs Restructuring costs: Severance costs $2,119 $906 $2,119 $1,838 PLEXUS CORP. NON-GAAP SUPPLEMENTAL INFORMATION (in thousands, except per share data) (unaudited) Operating Margin Calculation Three Months Ended Operating Sept. 27, 2008 Margin % Operating income $20,854 4.4% Restructuring costs 2,119 Operating income excluding restructuring costs $22,973 4.8% ROIC Calculation Twelve Months Ended Sept. 27, 2008 Operating income $102,827 Add: Unusual (restructuring) charges 2,119 Operating income (excluding unusual charges) $104,946 Tax rate (excluding unusual charges) x 18% Tax impact -18,890 Operating income (tax effected) 86,056 Average capital employed $428,711 ROIC 20.1% Average Sept 29, Dec 29, Mar 29, Jun 29, Sept 27, Capital 2007 2007 2008 2008 2008 Employed Equity $573,265 $604,792 $531,164 $472,846 $473,945 Plus: Debt - current 1,720 1,815 1,581 1,638 16,694 Debt - non-current 25,082 24,681 24,456 174,132 154,532 Less: Cash and cash equivalents (154,109) (158,547)(144,165)(206,499) (165,970) Short-term investments (55,000) (54,500) - - - $390,958 $418,241 $413,036 $442,117 $479,201 $428,711 PLEXUS CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) September 27, September 29, 2008 2007 ASSETS Current assets: Cash and cash equivalents $165,970 $154,109 Short-term investments - 55,000 Accounts receivable 253,496 230,826 Inventories 340,244 275,854 Deferred income taxes 15,517 12,932 Prepaid expenses and other 11,742 5,434 Total current assets 786,969 734,155 Property, plant and equipment, net 179,123 159,517 Goodwill, net 7,275 8,062 Deferred income taxes 2,620 2,310 Other 16,243 12,472 Total assets $992,230 $916,516 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt and capital lease obligations $16,694 $1,720 Accounts payable 231,638 237,034 Customer deposits 26,863 10,381 Accrued liabilities: Salaries and wages 41,086 23,149 Other 31,611 34,755 Total current liabilities 347,892 307,039 Long-term debt and capital lease obligations, net of current portion 154,532 25,082 Other liabilities 15,861 9,372 Deferred income taxes - 1,758 Shareholders' equity: Common stock, $.01 par value, 200,000 shares authorized, 46,772 and 46,402 shares issued, respectively, and 39,326 and 46,402 shares outstanding, respectively 468 464 Additional paid-in-capital 353,105 336,603 Common stock held in treasury, at cost, 7,446 shares and 0 shares, respectively (200,110) - Retained earnings 309,708 224,586 Accumulated other comprehensive income 10,774 11,612 Total shareholders' equity 473,945 573,265 Total liabilities and shareholders' equity $992,230 $916,516

Plexus Corp.

CONTACT: Ginger Jones, VP and Chief Financial Officer of Plexus Corp.,
+1-920-751-5487, ginger.jones@plexus.com

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

RFMD(R) Achieves Significantly Improved Operating Margin and Cash Flow in September QuarterBusiness Highlights:-- Quarterly Revenue Increased 13.0% Sequentially To $271.7 Million -- Company Generated Approximately $40 Million In Operating Cash Flow, And Net Cash And Short-Term Investments Increased $22.2 Million Sequentially -- GAAP Operating Margin Improved 950 Basis Points, And Non-GAAP Operating Margin Improved 565 Basis Points -- Quarterly GAAP Diluted Loss Per Share Totaled ($0.04), And Quarterly Non-GAAP Diluted Earnings Per Share (EPS) Totaled $0.07 -- RFMD Has Achieved Target Of $75 Million In Annualized Expense Reductions -- RFMD Is Factoring Down Current Customer Forecasts To Reflect Concern Over Global Economic Conditions -- RFMD's Current Guidance Is For December 2008 Quarterly Revenue To Be Flat To Down 7%, And Operating Margin Is Expected To Increase Sequentially -- December Quarterly GAAP Diluted EPS Is Expected To Be In The Range Of $0.00 To $0.02 -- December Quarterly Non-GAAP Diluted EPS Is Expected To Be In The Range Of $0.05 To $0.07

GREENSBORO, N.C., Oct. 28 /PRNewswire-FirstCall/ -- RF Micro Devices, Inc. , a global leader in the design and manufacture of high-performance semiconductor components, today reported financial results for its fiscal 2009 second quarter ended September 27, 2008. RFMD's September quarterly revenue increased approximately 13.0% sequentially to $271.7 million, reflecting market share gains in cellular front ends and growth in POLARIS(R) transceivers. GAAP gross margin decreased sequentially from 30.1% to 28.3%, and non-GAAP gross margin decreased from 33.0% to 31.6% during the same period, primarily as a result of the sequential increase in POLARIS(R) transceiver revenue. Operating loss was approximately ($19.0) million on a GAAP basis, reflecting restructuring charges related to the strategic restructuring announced on May 6, 2008, and non-GAAP operating income was approximately $18.0 million.

RFMD(R) Product Group Highlights CPG -- RFMD expanded its market share in cellular front ends in the September quarter, as growth in cellular front ends exceeded the handset industry growth rate -- RFMD increased its dollar content in cellular handsets, as transmit module adoption increased and as leading handset manufacturers launched new phones featuring POLARIS(R) 2 and POLARIS(R) 3 -- RFMD secured major 3G design wins at multiple top-five handset Original Equipment Manufacturers (OEMs) -- RFMD shipped production volumes of cellular front ends to all five of the world's top-five handset OEMs -- RFMD has completed its previously stated goal of eliminating $75 million in annualized CPG expenses MPG -- RFMD expects to exceed its previously stated goal of $250 million in MPG revenue this fiscal year -- RFMD has successfully completed the integration of recently announced acquisitions and continues to recognize synergies -- RFMD received government funding for its Gallium Nitride (GaN) process development in the September quarter and anticipates signing a new government contract in the December quarter -- RFMD currently anticipates revenue from GaN-based CATV line amplifiers beginning in calendar year 2009 -- MPG released 18 new products in the September quarter and 45 new products in the first half of fiscal 2009 -- MPG is on track to release more than 100 new products in this fiscal year

GAAP and non-GAAP financial measures are presented in the tables below, and non-GAAP financial measures are reconciled to the corresponding GAAP financial measures in the financial statement portion of this press release.

GAAP RESULTS (in millions, except percentages and per share Q2 Fiscal Q1 Fiscal % Change Q2 Fiscal % Change data) 2009 2009 vs. Q1 2009 2008 vs. Q2 2008 Revenue $ 271.7 $ 240.5 13.0% $ 255.8 6.2% Gross Margin 28.3% 30.1% (1.8)ppt 32.2% (3.9)ppt Operating (Loss) Income $ (19.0) $ (39.7) (52.0)% $ 8.1 (335.1)% Net (Loss) Income $ (11.8) $ (24.1) (51.2)% $ 14.5 (181.4)% Diluted (LPS) EPS $ (0.04) $ (0.09) (51.3)% $ 0.07 (167.6)%

NON-GAAP RESULTS (excluding share-based compensation, amortization of intangibles, amortization of acquisition-related inventory step-up, acquired in process research and development charge, manufacturing start-up costs, gain on investment, restructuring charges, and the tax effect on non-GAAP restructuring adjustments)

(in millions, except percentages and per share Q2 Fiscal Q1 Fiscal % Change Q2 Fiscal % Change data) 2009 2009 vs. Q1 2009 2008 vs. Q2 2008 Gross Margin 31.6% 33.0% (1.4)ppt 32.5% (0.9)ppt Operating Income $ 18.0 $ 2.3 678.1% $ 17.2 4.4% Net Income $ 18.6 $ 7.9 134.4% $ 23.4 (20.4)% Diluted EPS $ 0.07 $ 0.03 122.8% $ 0.11 (38.2)% Financial Guidance And Business Outlook

RFMD experienced strong order flow in the September quarter and currently sees customer demand to support revenue growth in the December quarter. However, the Company believes it is prudent to factor down customer demand forecasts given the uncertainty currently surrounding the global macroeconomic environment.

-- Revenue in the December 2008 quarter is currently expected to be flat to down 7%, as compared to the September 2008 quarter, and operating margin is expected to increase sequentially -- GAAP net income in the December 2008 quarter is currently expected to be in the range of $0.00 to $0.02 per diluted share, including approximately $2 million to $3 million in restructuring charges related to the strategic restructuring announced on May 6, 2008 -- Non-GAAP net income in the December 2008 quarter is currently expected to be in the range of $0.05 to $0.07 per diluted share, excluding estimated share-based compensation expense, amortization of intangibles and restructuring charges -- RFMD expects to realize the full income statement benefit and improved cash flow from approximately $75 million in annualized expense reductions in the December quarter

The methodology used by RFMD to estimate share-based compensation expense does not factor in items such as new grants, terminations or amounts that may be capitalized in inventory, and the methodology used to estimate amortization of intangibles assumes no additional intangible assets are recorded. RFMD does not estimate the impact of share-based compensation expense on gross margin or operating expenses and will provide this information with its December 2008 quarterly results. Accordingly, actual quarterly results may differ from these estimates, and such differences may be material.

Comments From Management

Bob Bruggeworth, president and CEO of RFMD, said, "Two quarters ago we announced a strategic restructuring that positioned RFMD to deliver the largest increase in profitability in our Company's history. Today, we are announcing another very favorable assessment of our progress to date, including expense reductions, market share gains and non-GAAP operating income of 6.6 percent, an improvement of 12.7 percentage points during that time frame.

"With the efforts related to our strategic restructuring complete, we've improved both our operating model and our competitive position. We've reduced our operating expenses by approximately $75 million on an annualized basis, while at the same time improving our outlook for increases in free cash flow.

"We expect our restructuring to serve us well regardless of the market environment, both in the face of an apparent global slow down and as markets ultimately return to strength. Clearly, no company is immune to macroeconomic conditions. However, on the strength of our restructuring, and given our scale, end-market diversity, improving product portfolio and low-cost structure, we believe we are well-positioned to execute on our growth plan and create shareholder value."

Dean Priddy, CFO and corporate vice president of administration of RFMD, said, "RFMD has delivered on its commitments to increase revenue, operating margin and cash flow over the past two quarters. Of note, RFMD's free cash flow exceeded non-GAAP earnings in the September quarter.

"Our December quarterly guidance is for revenue to be flat to down seven percent. While the book-to-bill ratio for the September quarter and current customer demand would suggest potentially higher revenue, we believe conservatism is prudent given the uncertainty currently surrounding global economic conditions. Based upon projected customer and product mix along with reduced expenses, we anticipate operating margin will improve in the December quarter.

"The current macroeconomic environment coupled with our recent restructuring present RFMD with an opportunity to leverage our market, product and customer diversity, along with our manufacturing scale to increase our market share and dollar content, maintain profitability and increase cash significantly."

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), RFMD's earnings release contains the following non-GAAP financial measures: (i) non-GAAP gross margin, (ii) non-GAAP operating (loss) income, (iii) non-GAAP net income, and (iv) non-GAAP net income per diluted share. Each of these non-GAAP financial measures is adjusted from GAAP results to exclude certain expenses that are outlined in the "Reconciliation of GAAP to Non-GAAP Financial Measures" table on page 8.

In managing RFMD's business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures. In developing and monitoring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce unit costs with the goal of increasing gross margin. In addition, management relies upon these non-GAAP financial measures to assess whether research and development efforts are at an appropriate level, and when making decisions about product spending, administrative budgets, and marketing programs. In addition, we believe that non-GAAP financial measures provide useful supplemental information to investors and enable investors to analyze the results of operations in the same way as management. We have chosen to provide this supplemental information to enable investors to perform additional comparisons of operating results and to analyze financial performance excluding the effect of certain non-cash expenses, unusual items and share-based compensation expense, which may obscure trends in RFMD's underlying performance.

We believe that these non-GAAP financial measures offer an additional view of RFMD's operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of RFMD's results of operations and the factors and trends affecting RFMD's business. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Our rationale for using these non-GAAP financial measures, as well as their impact on the presentation of RFMD's operations, are outlined below:

Non-GAAP gross margin. Non-GAAP gross margin excludes share-based compensation expense, amortization of intangible assets and an adjustment for amortization of acquisition-related inventory step-up. We believe that exclusion of these costs in presenting non-GAAP gross margin gives management and investors a more effective means of evaluating RFMD's historical performance and projected costs and the potential for realizing cost efficiencies. We believe that the majority of RFMD's purchased intangibles are not relevant to analyzing current operations because they generally represent costs incurred by the acquired company to build value prior to acquisition, and thus are effectively part of transaction costs rather than ongoing costs of operating RFMD's business. In this regard, we note that (i) once the intangibles are fully amortized, the intangibles will not be replaced with cash costs and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time, and (ii) although we set the amortization expense based on useful life of the various assets at the time of the transaction, we cannot influence the timing and amount of the future amortization expense recognition once the lives are established. Similarly, we believe that presentation of non-GAAP gross margin and other non-GAAP financial measures that exclude the impact of share-based compensation expense assists management and investors in evaluating the period-over-period performance of RFMD's ongoing operations because (i) the expenses are non-cash in nature, and (ii) although the size of the grants is within our control, the amount of expense varies depending on factors such as short-term fluctuations in stock price volatility and prevailing interest rates, which can be unrelated to the operational performance of RFMD during the period in which the expense is incurred and generally is outside the control of management. Moreover, we believe that the exclusion of share-based compensation expense in presenting non-GAAP gross margin and other non-GAAP financial measures is useful to investors to understand the impact of the expensing of share-based compensation to RFMD's gross margins and other financial measures in comparison to both prior periods as well as to its competitors. We also believe that the adjustments to margin related to business acquisitions (amortization of acquisition-related inventory step-up) do not constitute part of RFMD's ongoing operations and therefore the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and gives management and investors a more effective means of evaluating our historical and projected performance.

We believe disclosure of non-GAAP gross margin has economic substance because the excluded expenses do not represent continuing cash expenditures and, as described above, we have little control over the timing and amount of the expenses in question.

Non-GAAP operating income. Non-GAAP operating income excludes share-based compensation expense, amortization of intangible assets, restructuring charges, acquired in-process research and development, amortization of acquisition-related inventory step-up and manufacturing start-up costs. We believe that presentation of a measure of operating income that excludes amortization of intangible assets and share-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross margin. We believe that restructuring charges, manufacturing start-up costs, acquired in-process research and development and amortization of acquisition-related inventory step-up do not constitute part of RFMD's ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and gives management and investors a more effective means of evaluating our historical and projected performance. We believe disclosure of non-GAAP operating income has economic substance because the excluded expenses are either non-recurring in nature or do not represent current cash expenditures.

Non-GAAP net income and non-GAAP net income per diluted share. Non-GAAP net income and non-GAAP net income per diluted share exclude the effects of share-based compensation expense, amortization of intangible assets, restructuring charges, manufacturing start-up costs, acquired in-process research and development, amortization of acquisition-related inventory step-up and gain on investment and also reflect an adjustment of income tax associated with the exclusion of non-GAAP restructuring adjustments. We believe that presentation of measures of net income and net income per diluted share that exclude these items is useful to both management and investors for the reasons described above with respect to non-GAAP gross margin and non-GAAP operating income. We believe disclosure of non-GAAP net income and non-GAAP net income per diluted share has economic substance because the excluded expenses are either non-recurring in nature, do not represent current cash expenditures, or are variable in nature and thus unlikely to become recurring expenses.

Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP gross margin, non-GAAP operating income, non-GAAP net income and non-GAAP net income per diluted share as compared to the most directly comparable GAAP financial measures of gross margin, operating (loss) income, net (loss) income and net (loss) income per diluted share are (i) they may not be comparable to similarly titled measures used by other companies in RFMD's industry, and (ii) they exclude financial information that some may consider important in evaluating our performance. We compensate for these limitations by providing full disclosure of the differences between these non-GAAP financial measures and the corresponding GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the corresponding GAAP financial measures, to enable investors to perform their own analysis of our gross margin, operating (loss) income, net (loss) income and net (loss) income per diluted share.

RF Micro Devices will conduct a conference call at 5:00 p.m. EDT today to discuss today's press release. The conference call will be broadcast live over the Internet and can be accessed by any interested party at http://www.earnings.com/ or http://www.rfmd.com/ (under Investor Info). A telephone playback of the conference call will be available approximately one hour after the call's completion by dialing 303-590-3000 and entering pass code 11120298.

About RFMD: RF Micro Devices, Inc. is a global leader in the design and manufacture of high-performance semiconductor components. RFMD's products enable worldwide mobility, provide enhanced connectivity and support advanced functionality in the cellular handset, wireless infrastructure, wireless local area network (WLAN), CATV/broadband and aerospace and defense markets. RFMD is recognized for its diverse portfolio of semiconductor technologies and RF systems expertise and is a preferred supplier to the world's leading mobile device, customer premises and communications equipment providers.

Headquartered in Greensboro, N.C., RFMD is an ISO 9001- and ISO 14001-certified manufacturer with worldwide engineering, design, sales and service facilities. RFMD is traded on the NASDAQ Global Select Market under the symbol RFMD. For more information, please visit RFMD's web site at http://www.rfmd.com/.

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions and are not historical facts and typically are identified by use of terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management's current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under the federal securities laws. RF Micro Devices' business is subject to numerous risks and uncertainties, including variability in quarterly operating results, the rate of growth and development of wireless markets, risks associated with our planned exit from our wireless systems business, including cellular transceivers and GPS solutions, the risk that restructuring charges may be greater than originally anticipated and that the cost savings and other benefits from the restructuring may not be achieved, risks associated with the operation of our wafer fabrication facilities, molecular beam epitaxy facility, assembly facility and test and tape and reel facilities, our ability to complete acquisitions and integrate acquired companies, including the risk that we may not realize expected synergies from our business combinations, our ability to attract and retain skilled personnel and develop leaders, variability in production yields, our ability to reduce costs and improve gross margins by implementing innovative technologies, our ability to bring new products to market, our ability to adjust production capacity in a timely fashion in response to changes in demand for our products, dependence on a limited number of customers, and dependence on third parties. These and other risks and uncertainties, which are described in more detail in RF Micro Devices' most recent Annual Report on Form 10-K and other reports and statements filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

RF MICRO DEVICES(R) and RFMD(R) and POLARIS(R) are trademarks of RFMD, LLC. All other trade names, trademarks and registered trademarks are the property of their respective owners.

Tables To Follow RF MICRO DEVICES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended September 27, 2008 September 29, 2007 Total revenue $ 271,669 $ 255,845 Costs and expenses: Cost of goods sold 194,901 173,580 Research and development 45,063 48,812 Marketing and selling 17,153 12,912 General and administrative 15,781 10,829 Other operating expense 17,816 1,610 Total costs and expenses 290,714 247,743 Operating (loss) income (19,045) 8,102 Other (loss) income (288) 7,372 (Loss) income before income taxes $ (19,333) $ 15,474 Income tax benefit (expense) 7,554 (1,012) Net (loss) income $ (11,779) $ 14,462 Net (loss) income per share, diluted $ (0.04) $ 0.07 Weighted average outstanding diluted shares 262,091 227,431 MICRO DEVICES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Six Months Ended September 27, 2008 September 29, 2007 Total revenue $ 512,161 $ 467,444 Costs and expenses: Cost of goods sold 363,063 318,481 Research and development 96,417 96,500 Marketing and selling 35,675 25,142 General and administrative 28,839 18,605 Other operating expense 46,915 2,369 Total costs and expenses 570,909 461,097 Operating (loss) income (58,748) 6,347 Other (loss) income (367) 13,442 (Loss) income before income taxes $ (59,115) $ 19,789 Income tax benefit 23,213 18,275 Net (loss) income $ (35,902) $ 38,064 Net (loss) income per share, diluted $ (0.14) $ 0.17 Weighted average outstanding diluted shares 261,675 227,466 RF MICRO DEVICES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (Unaudited) Three Months Ended September 27, June 28, September 29, 2008 2008 2007 GAAP operating (loss) income $ (19,045) $ (39,703) $ 8,102 Share-based compensation expense 8,600 4,481 7,167 Amortization of intangible assets 7,295 7,771 325 Acquired in process research and development - 1,400 - Amortization of acquisition-related inventory step-up 2,699 661 - Charges related to fiscal 2009 strategic restructuring 17,638 26,568 - Other restructuring charges 407 474 1,107 Manufacturing start-up costs 367 657 503 Non-GAAP operating income 17,961 2,309 17,204 GAAP net (loss) income (11,779) (24,123) 14,462 Share-based compensation expense 8,600 4,481 7,167 Amortization of intangible assets 7,295 7,771 325 Acquired in process research and development - 1,400 - Amortization of acquisition-related inventory step-up 2,699 661 - Charges related to fiscal 2009 strategic restructuring 17,638 26,568 - Other restructuring charges 407 474 1,107 Manufacturing start-up costs 367 657 503 Gain on investment - - (160) Tax effect on non-GAAP restructuring adjustments (6,601) (9,944) - Non-GAAP net income 18,626 7,945 23,404 Plus: Income impact of assumed conversions for interest on 1.50% convertible notes 661 660 669 Non-GAAP net income plus assumed conversion of notes-Numerator for diluted income per share $ 19,287 $ 8,605 $ 24,073 GAAP weighted average outstanding diluted shares 262,091 261,249 227,431 Adjustments: Diluted stock options 2,615 1,745 - Assumed conversion of 1.50% convertible notes 30,144 30,144 - Non-GAAP weighted average outstanding diluted shares 294,850 293,138 227,431 Non-GAAP net income per share, diluted $ 0.07 $ 0.03 $ 0.11 GAAP gross margin percentage 28.3% 30.1% 32.2% Adjustment for amortization of acquisition-related inventory step-up 1.0% 0.3% - Adjustment for share-based compensation 0.4% 0.3% 0.2% Adjustment for intangible amortization 1.9% 2.3% 0.1% Non-GAAP gross margin percentage 31.6% 33.0% 32.5% RF MICRO DEVICES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) September 27, March 29, 2008 2008 (Unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents $ 169,274 $ 129,750 Restricted cash 69 504 Short-term investments 49,996 100,841 Accounts receivable, net 122,592 115,629 Inventories 165,494 190,753 Other current assets 107,702 84,556 Total current assets 615,127 622,033 Property and equipment, net 401,565 430,237 Goodwill 716,162 701,317 Long-term investments 23,609 26,336 Intangible assets, net 198,864 205,072 Other assets 35,828 32,200 Total assets $ 1,991,155 $ 2,017,195 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 130,311 $ 130,785 Current portion - long-term debt 4,676 4,523 Other short-term liabilities, net 7,766 283 Total current liabilities 142,753 135,591 Long-term debt, net 615,576 616,698 Other long-term liabilities 17,095 26,269 Total liabilities 775,424 778,558 Shareholders' equity: Total shareholders' equity 1,215,731 1,238,637 Total liabilities and shareholders' equity $ 1,991,155 $ 2,017,195

RF Micro Devices, Inc.

CONTACT: CONTACT: At RFMD(R), Dean Priddy, CFO, +1-336-678-7975, or
Doug DeLieto, VP, Investor Relations, +1-336-678-7968; or At the Financial
Relations Board, Joe Calabrese, +1-212-827-3772

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

National Instruments Reports Record Quarterly Revenue of $215M, Up 17 Percent Year Over YearCompany Reports Strong Cash Flow and $276 Million in Cash and Short-Term Investments

AUSTIN, Texas, Oct. 28, 2008 /PRNewswire-FirstCall/ -- National Instruments reported record quarterly revenue of $215 million, up 17 percent year-over-year, in the third quarter of 2008. This was above the midpoint of NI's guidance of between $208 million and $218 million.

Net income for Q3 2008 was $23.2 million, up 7.5 percent from Q3 last year, representing diluted earnings per share (EPS) of $0.29. Non-GAAP net income was $27.7 million, up 7.4 percent from Q3 last year, with fully diluted EPS of $0.35, which was at the midpoint of NI's guidance. Included in both GAAP and non-GAAP earnings for Q3 is a net loss on foreign exchange of $3 million, or $0.03 per share, as a result of the dramatic strengthening of the U.S. dollar in Q3. The company had not anticipated this loss when giving guidance in July. The company's non-GAAP results exclude the impact of both stock-based compensation and the amortization of acquisition-related intangibles. Reconciliations of the company's GAAP and non-GAAP results are included as part of this news release.

"I am very pleased with our 17 percent revenue growth in the face of significant economic headwinds, driven by record revenue in PXI, NI CompactRIO, modular instruments, machine vision and motion control," said Dr. James Truchard, NI president and CEO. "There is no doubt that the current global economic situation presents challenges, but I believe our business model is strong, our investments are wise and our long-term strategy is sound."

NI virtual instrumentation and graphical system design products, which represent more than 90 percent of the company's product portfolio, had 19 percent year-over-year revenue growth in Q3 2008. The revenue growth of these products relative to the global PMI improved in Q3 and has been steadily improving over the last eight quarters. This validates the company's strategy of strong investment in R&D and field sales force expansion to drive new product success.

"Given the current uncertainty, our strategy going forward is to be very realistic about the economy but also to continue to drive market share gains," said Alex Davern, NI CFO. "We will manage our expenses carefully by focusing our investments on R&D and the field sales expansion while significantly limiting expense growth in other areas of the company."

For the first nine months of 2008, the company reported record revenue of $618.4 million, up 15.5 percent as compared to the first nine months of 2007. Geographically, revenue in U.S. dollar terms for Q3 2008 compared to Q3 2007 was up 12 percent in the Americas, up 28 percent in Europe and up 11 percent in Asia, equaling overall growth of 17 percent. In local currency terms, revenue was up 12 percent in Europe and 7 percent in Asia.

As of Sept. 30, 2008, the company had $276 million in net cash and short-term investments, up $28 million from June 30, 2008. During the quarter, the company used $9 million for the payment of dividends. The NI Board of Directors declared a dividend of $0.11 per share on its common stock payable on Dec. 1, 2008, to shareholders of record on Nov. 10, 2008.

Q3 2008 Highlights -- Record quarterly revenue of $215 million, up 17 percent year-over-year -- Net income of $23.2 million, up 7.5 percent year-over-year -- Non-GAAP net income of $27.7 million, up 7.4 percent year-over-year -- Record revenue for PXI, NI CompactRIO, modular instruments, machine vision, and motion control -- Cash and short-term investments of $276 million -- New product releases, including NI LabVIEW 8.6 software, PXI Express 6.6 GHz RF instruments, Wi-Fi and Ethernet data acquisition hardware and NI Single-Board RIO devices -- Record attendance at NIWeek 2008 Guidance for Q4 2008

For Q4, NI currently expects revenue to be in the range of $208 million to $222 million. This is equivalent to year-over-year revenue growth of between 2 percent and 8 percent. The year-over-year growth in total operating expenses in Q4 is expected to be between 3 percent and 6 percent, down from 18 percent year-over-year growth in the first nine months of 2008. The company currently expects that GAAP fully diluted EPS will be in the range of $0.33 to $0.41 per share for Q4, with non-GAAP fully diluted EPS expected to be in the range of $0.39 to $0.47 per share.

When comparing the company's guidance with NI GAAP and non-GAAP fully diluted EPS in Q4 2007 of $0.56 and $0.62, respectively, note that in Q4 last year, NI recognized an $18 million tax credit, which had the impact of increasing NI GAAP and non-GAAP EPS by $0.23.

In Q4 2008, the company expects the impact of stock-based compensation and the impact of the amortization of acquisition-related intangibles to be $0.06 per share. A reconciliation of the company's Q4 2008 guidance on a GAAP basis to its guidance on a non-GAAP basis is included as part of this news release.

Because the direction of the financial markets is uncertain and its impact on the broad-based industrial economy is difficult to currently predict, National Instruments will hold a business update call on Dec. 4 at 4.00 p.m. CST.

Non-GAAP Earnings Presentation and Non-GAAP Earnings Guidance

In addition to disclosing results determined in accordance with GAAP, NI discloses certain non-GAAP operating results that exclude certain charges. In this news release, the company has presented its gross profit, operating margin, net income and diluted EPS results for Q3 2008 and Q3 2007 and its guidance for Q4 2008, in each case on a GAAP and non-GAAP basis. When presenting non-GAAP results, the company includes a reconciliation of the non-GAAP results to the results under GAAP.

Management also considers such non-GAAP results to be an important supplemental measure of its performance. The economic substance behind management's decision to use such non-GAAP measures relates to these charges being non-cash in nature and being a useful measure of the potential future performance of the company's business.

In line with common industry practice and to help enable comparability with other technology companies, the company's non-GAAP presentation excludes the impact of both stock-based compensation and the amortization of acquisition-related intangibles. Other companies may calculate non-GAAP results differently than NI, limiting the calculation's usefulness as a comparative measure. In addition, such non-GAAP measures may exclude financial information that some may consider important in evaluating the company's performance. Management compensates for the foregoing limitations of non-GAAP measures by presenting certain information on both a GAAP and non-GAAP basis and providing reconciliations of these certain GAAP and non-GAAP measures.

Conference Call Information

Interested parties can listen to a conference call today, Oct. 28, beginning at 4:00 p.m. CDT, at http://www.ni.com/call. Replay information is available by calling (888) 203-1112, confirmation code #4212906, from Oct. 28 at 7:00 p.m. CDT through Nov. 5 at midnight CDT.

Forward-Looking Statements

This release contains "forward-looking statements," including statements related to record revenue in Q4 and for the full year 2008; business model being strong, investments wise and long-term strategy sound; strategy of R&D investment and field sales expansion driving new product success; likely contraction of test and measurement market; commitment to investments in R&D and field sales force to drive revenue growth; plan to moderate expense growth; and NI guidance for Q4 2008, including, as applicable, revenue, GAAP and non-GAAP diluted EPS, the estimated impact of stock-based compensation and acquisition-related intangibles. These statements are subject to a number of risks and uncertainties, including the risk of further adverse changes or fluctuations in the global economy as a result of recent challenges the global credit and equity markets face, delays in the release of new products, fluctuations in customer demand for NI products, manufacturing inefficiencies and foreign exchange fluctuations. Actual results may differ materially from the expected results. The company directs readers to documents it files with the SEC for other risks associated with the company's future performance.

About National Instruments

National Instruments (http://www.ni.com/) is transforming the way engineers and scientists design, prototype and deploy systems for measurement, automation and embedded applications. NI empowers customers with off-the-shelf software such as NI LabVIEW and modular cost-effective hardware, and sells to a broad base of more than 25,000 different companies worldwide, with no one customer representing more than 3 percent of revenue and no one industry representing more than 10 percent of revenue. Headquartered in Austin, Texas, NI has more than 5,000 employees and direct operations in nearly 40 countries. For the past nine years, FORTUNE magazine has named NI one of the 100 best companies to work for in America. Readers can obtain investment information from the company's investor relations department by calling (512) 683-5090, e-mailing nati@ni.com or visiting http://www.ni.com/nati.

CompactRIO, LabVIEW, National Instruments, NI, ni.com and NIWeek are trademarks of National Instruments. Other product and company names listed are trademarks or trade names of their respective companies.

Contact: Veronica Garza Investor Relations (512) 683-6873 National Instruments Condensed Consolidated Balance Sheets (in thousands) September 30, December 31, 2008 2007 (unaudited) Assets Current assets: Cash and cash equivalents 213,665 194,839 Short-term investments 61,919 93,838 Accounts receivable, net 123,096 131,282 Inventories, net 99,734 82,675 Prepaid expenses and other current assets 40,377 23,312 Deferred income taxes, net 20,459 19,264 ------ ------ Total current assets 559,250 545,210 Long-term investments 10,154 - Property and equipment, net 155,251 151,462 Goodwill, net 64,641 54,111 Intangible assets, net 44,844 40,357 Other long-term assets 28,168 27,672 ------ ------ Total assets 862,308 818,812 ======= ======= Liabilities and Stockholders' Equity Current liabilities: Accounts payable 31,733 36,187 Accrued compensation 31,003 25,778 Deferred revenue 42,076 36,091 Accrued expenses and other liabilities 10,320 10,437 Other taxes payable 23,379 16,843 ------ ------ Total current liabilities 138,511 125,336 Deferred income taxes 24,022 21,221 Other long-term liabilities 11,500 11,169 ------ ------ Total liabilities 174,033 157,726 ======= ======= Stockholders' equity: Preferred stock - - Common stock 790 794 Additional paid-in capital 75,231 89,809 Retained earnings 602,872 563,418 Accumulated other comprehensive income 9,382 7,065 ------- ------- Total stockholders' equity 688,275 661,086 ------- ------- Total liabilities and stockholders' equity 862,308 818,812 ======= ======= National Instruments Condensed Consolidated Statements of Income (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Net sales $215,038 $184,426 $618,430 $535,565 Cost of sales 53,537 46,219 154,227 132,439 ------ ------ ------- ------- Gross profit 161,501 138,207 464,203 403,126 ------- ------- ------- ------- Operating expenses: Sales and marketing 79,362 66,116 233,427 194,974 Research and development 37,016 31,891 105,808 91,652 General and administrative 17,177 15,644 51,122 45,643 Total operating ------- ------- ------- ------- expenses 133,555 113,651 390,357 332,269 ------- ------- ------- ------- Operating income 27,946 24,556 73,846 70,857 Interest income 1,374 2,613 5,025 7,056 Net foreign exchange gain (loss) (3,025) 98 (1,791) 628 Other income (expense), net 80 14 13 (138) Income before income ------ ------ ------ ------ taxes 26,375 27,281 77,093 78,403 Provision for income taxes 3,216 5,741 11,584 17,063 Net income $23,159 $21,540 $65,509 $61,340 ------- ------- ------- ------- Basic earnings per share $0.29 $0.27 $0.83 $0.77 ----- ----- ----- ----- Diluted earnings per share $0.29 $0.27 $0.82 $0.76 ----- ----- ----- ----- Weighted average shares outstanding - basic 78,834 79,226 78,701 79,471 ------ ------ ------ ------ diluted 79,841 80,874 79,773 80,986 ------ ------ ------ ------ Dividends declared per share $0.11 $0.10 $0.33 $0.24 ----- ----- ----- ----- National Instruments Condensed Consolidated Statements of Cash Flows (in thousands) Nine Months Ended September 30, September 30, 2008 2007 ---- ---- (unaudited) (unaudited) Cash flow from operating activities: Net income $65,509 $61,340 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 27,901 27,964 Stock-based compensation 14,690 13,051 Provision for (benefit from) deferred income taxes 3,008 (360) Tax benefit from stock option plans (1,243) (2,391) Changes in operating assets and liabilities: Accounts receivable 10,611 (4,056) Inventories (16,954) (175) Prepaid expenses and other assets (12,895) (14,186) Accounts payable (4,791) 7,874 Deferred revenue 5,985 7,774 Taxes and other liabilities 14,138 16,797 ------ ------ Net cash provided by operating activities 105,959 113,632 ------- ------- Cash flow from investing activities: Capital expenditures (21,115) (18,109) Capitalization of internally developed software (8,687) (7,736) Additions to other intangibles (2,603) (4,962) Acquisition, net of cash received (17,310) - Purchases of short-term and long-term investments (17,315) (62,968) Sales and maturities of short-term and long-term investments 39,080 120,530 Purchases of foreign currency option contracts (2,784) - ------ --- Net cash provided by (used in) investing activities (30,734) 26,755 -------- ------ Cash flow from financing activities: Proceeds from issuance of common stock 26,628 27,454 Repurchase of common stock (58,215) (67,957) Dividends paid (26,055) (19,091) Tax benefit from stock option plans 1,243 2,391 ----- ----- Net cash provided by (used in) financing activities (56,399) (57,203) -------- -------- Net change in cash and cash equivalents 18,826 83,184 Cash and cash equivalents at beginning of period 194,839 100,287 ------- ------- Cash and cash equivalents at end of period $213,665 $183,471 ======== ======== Detail of GAAP charges related to stock-based compensation and amortization of acquisition intangibles (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 ---- ---- ---- ---- Stock-based compensation Cost of sales $295 $252 $810 $672 Sales and marketing 2,114 1,932 6,204 5,347 Research and development 1,867 1,719 5,160 4,673 General and administrative 800 770 2,351 2,104 --- --- ----- ----- Provision for income taxes (1,364) (1,032) (3,588) (2,722) ------- ------- ------- ------- Total $3,712 $3,641 $10,937 $10,074 ------ ------ ------- ------- Amortization of acquisition intangibles Cost of sales $937 $678 $2,725 $2,033 Sales and marketing 139 111 435 335 Research and development - 9 14 25 General and administrative - - - - --- --- --- --- Provision for income taxes (285) (217) (846) (688) ----- ----- ----- ----- Total $791 $581 $2,328 $1,705 ---- ---- ------ ------ National Instruments Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share data) (unaudited) Reconciliation of Gross Profit to Non-GAAP Gross Profit Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 ---- ---- ---- ---- Gross profit, as reported $161,501 $138,207 $464,203 $403,126 Stock-based compensation 295 252 810 672 Amortization of acquisition intangibles 937 678 2,725 2,033 --- --- ----- ----- Non-GAAP gross profit $162,733 $139,137 $467,738 $405,831 ======== ======== ======== ======== Reconciliation of Operating Income to Non-GAAP Operating Income Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 ---- ---- ---- ---- Operating income, as reported $27,946 $24,556 $73,846 $70,857 Stock-based compensation 5,076 4,673 14,525 12,796 Amortization of acquisition intangibles 1,076 798 3,174 2,393 ----- --- ----- ----- Non-GAAP operating income $34,098 $30,027 $91,545 $86,046 ======= ======= ======= ======= Reconciliation of Income before income taxes to Non-GAAP Income before income taxes Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 ---- ---- ---- ---- Income before income taxes, as reported $26,375 $27,281 $77,093 $78,403 Stock-based compensation 5,076 4,673 14,525 12,796 Amortization of acquisition intangibles 1,076 798 3,174 2,393 ----- --- ----- ----- Non-GAAP income before income taxes $32,527 $32,752 $94,792 $93,592 ======= ======= ======= ======= Reconciliation of Provision for Income Taxes to Non-GAAP Provision for Income Taxes Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 ---- ---- ---- ---- Provision for income taxes, as reported $3,216 $5,741 $11,584 $17,063 Stock-based compensation 1,364 1,032 3,588 2,722 Amortization of acquisition intangibles 285 217 846 688 --- --- --- --- Non-GAAP provision for income taxes $4,865 $6,990 $16,018 $20,473 ====== ====== ======= ======= Reconciliation of Net Income and Diluted EPS to Non-GAAP Net Income and Non-GAAP Diluted EPS Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 ---- ---- ---- ---- Net income, $23,159 $21,540 $65,509 $61,340 as reported Adjustments to reconcile net income to non-GAAP net income: Stock-based Compensation, net of tax effect 3,712 3,641 10,937 10,074 Amortization of acquisition intangibles, net of tax effect 791 581 2,328 1,705 --- --- ----- ----- Non-GAAP net Income $27,662 $25,762 $78,774 $73,119 ======= ======= ======= ======= Basic EPS, as reported $0.29 $0.27 $0.83 $0.77 Adjustment to reconcile basic EPS to non-GAAP basic EPS: Impact of stock-based compensation, net of tax effect $0.05 $0.05 $0.14 $0.13 Impact of amortization of acquisition intangibles, net of tax effect $0.01 $0.01 $0.03 $0.02 ----- ----- ----- ----- Non-GAAP basic EPS $0.35 $0.33 $1.00 $0.92 ===== ===== ===== ===== Diluted EPS, as reported $0.29 $0.27 $0.82 $0.76 Adjustment to reconcile diluted EPS to non-GAAP diluted EPS: Impact of stock-based compensation, net of tax effect $0.05 $0.04 $0.14 $0.12 Impact of amortization of acquisition intangibles, net of tax effect $0.01 $0.01 $0.03 $0.02 ----- ----- ----- ----- Non-GAAP diluted EPS $0.35 $0.32 $0.99 $0.90 ===== ===== ===== ===== Weighted average shares outstanding - Basic 78,834 79,226 78,701 79,471 ------ ------ ------ ------ Diluted 79,841 80,874 79,773 80,986 ------ ------ ------ ------ Reconciliation of GAAP diluted EPS guidance to Non-GAAP diluted EPS for Q4 2008: Q4 2008 Range of diluted GAAP net earnings per share $0.33 - $0.41 Estimated stock based compensation and amortization of acquired intangibles $0.06 ----- Range of diluted non-GAAP net earnings per share $0.39 - $0.47 -------------

Photo: http://www.newscom.com/cgi-bin/prnh/20080723/LAW030LOGO
http://photoarchive.ap.org/
photodesk@prnewswire.com National Instruments

CONTACT: Veronica Garza, Investor Relations of National Instruments,
+1-512-683-6873

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

LodgeNet Reports Results for Third Quarter 2008- Quarterly Revenue of $135.3 Million -- Revenue from Non-Guest Entertainment Sources up 12.5% -- Operating Income Up $6.1 Million -- Long-Term Debt Reduced by $6.1 Million -

SIOUX FALLS, S.D., Oct. 28 /PRNewswire-FirstCall/ -- LodgeNet Interactive Corporation today reported quarterly revenue of $135.3 million compared to $142.6 million in the third quarter of 2007. The Company also reported operating income of $4.6 million, an increase of $6.1 million over the same quarter of last year. The Company's net loss improved by $5.1 million to $(6.3) million or $(0.28) per share (basic and diluted) for the third quarter of 2008 compared to a net loss of $(11.4) million or $(0.50) per share (basic and diluted) in the third quarter of 2007.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080115/AQTU120LOGO)

The following financial highlights are in thousands of dollars, except per-share data and average shares outstanding:

Three Months Ended September 30, 2008 2007 Total revenue $135,320 $142,631 Operating income (loss) 4,625 (1,426) Net loss (6,278) (11,410) Net loss per common share (1) $(0.28) $(0.50) Adjusted Operating Cash Flow (2) $34,611 $37,872 Average shares outstanding (basic and diluted) 22,296,886 22,742,001 (1) Based on the average shares outstanding for both basic and diluted. (2) Adjusted Operating Cash Flow is a non-GAAP measure which we define as Operating Income (Loss) exclusive of depreciation, amortization, share-based compensation, restructuring and integration expenses and the effects of insurance recoveries.

"While the third quarter was challenging for our traditional Guest Entertainment services, we continued to make substantial progress in regards to growth of our new revenue initiatives, reduction of operating expenses and management of our capital investment activities," said Scott C. Petersen, LodgeNet Chairman and CEO. "We proactively managed our business such that we generated more free cash flow (cash from operations less cash used for investing activities) this year during the third quarter as compared to the year ago period."

"Guest Entertainment revenue in the quarter was down 11.2%, however the gross profit margin was up slightly period over period," said Gary H. Ritondaro, LodgeNet's Chief Financial Officer. "Hotel Services delivered another quarter of double digit growth with revenue up 15.4% and gross profit increasing 103%, as we continue to deploy our high-definition, basic TV Programming systems. Sales of systems to hotels and hospitals also increased 8.8% and gross profit increased 20.3%. Overall, revenue from Hotel Services and System Sales sources increased 12.5% in the quarter and, as a result, total revenue was off only 5.1% compared to the Third Quarter of 2007."

"Our management team is also focused on driving our operating performance through ongoing cost reduction initiatives," Mr. Ritondaro continued. "We were pleased with our reductions in system operations and SG&A expenses which resulted in savings of $4.3 million, or a reduction of 13.5%, compared to the third quarter of last year, which offset 79% of the shortfall in gross profit.

"Given the challenging economic environment and by balancing the interests of our Company and our customers, we proactively reduced our growth-related capital and other investing activities by 45% from $26.8 million in the third quarter of 2007 to $14.7 million in the current quarter. We continue to drive capital investment savings as costs for new and converted room installations decreased by approximately 9% period over period. As a result of our proactive cost and capital savings actions, we continued to pay down debt at an accelerated basis, reducing long-term debt by $6.1 million in the quarter. Our consolidated debt leverage at the end of the quarter was 4.38 times total outstanding debt, and 4.26 on a net debt basis."

"Given the current economic environment, we are determined to reduce our operating expenses and capital investment levels with the goal of managing our business in compliance with our loan agreements," said Petersen. "Capital investment levels for the fourth quarter will be in the $13 to $14 million range, and will most likely drop below $10 million for the first quarter of next year. We are also carefully reviewing our operating structures and expect to implement significant cost saving measures during the first part of next year. We expect that Adjusted Free Cash Flow for 2008 will be within the range of $26.5 to $29.5 million, or $1.19 to $1.32 per share."

RESULTS FROM OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 2008 VERSUS THREE MONTHS ENDED SEPTEMBER 30, 2007

Total revenue for the third quarter of 2008 was $135.3 million, a decrease of $7.3 million or 5.1%, compared to the third quarter of 2007. The decrease in revenue was primarily driven by a decrease in revenue from Guest Entertainment services, offset by revenue increases from hotel services, and system sales to hotels and hospitals. The average monthly total revenue per room was $24.30 for the third quarter of 2008 compared to $25.73 for the third quarter of 2007, a decrease of 5.6%.

Guest Entertainment revenue, which includes on-demand entertainment such as movies, games, music, time-shifted television, Internet access through the television and sports programming, decreased $11.9 million or 11.2% to $93.8 million, impacted by a 3.5% decline in occupancy and an extremely cautious consumer environment. On a per-room basis, monthly Guest Entertainment revenue for the third quarter of 2008 declined 11.6% to $16.85 compared to $19.06 for the third quarter of 2007. Average monthly movie revenue per room was $15.65 for the third quarter of 2008, a 10.3% reduction as compared to $17.44 per room in the prior year quarter. Non-movie Guest Entertainment revenue per room decreased 25.9% to $1.20 in the third quarter of 2008, driven by reductions from games, music, TV Internet purchases, and time-shifted television purchases.

Hotel Services revenue, which includes revenue from hotels for television programming and broadband Internet service and support, increased $4.1 million or 15.4% to $30.7 million during the third quarter of 2008 versus $26.6 million in the third quarter of 2007. This increase offsets more than a third of the decline in Guest Entertainment revenue. On a per-room basis, monthly Hotel Services revenue for the third quarter of 2008 increased 15.0% to $5.52 compared to $4.80 for the third quarter of 2007. Monthly television programming revenue per room increased 16.3% to $4.99 for the third quarter of 2008 as compared to $4.29 for the third quarter of 2007. This increase resulted primarily from the continued installation of high definition television systems and related TV programming services. Recurring broadband revenue per room increased 3.9% to $0.53 for the third quarter of 2008 as compared to $0.51 for the third quarter of 2007.

System Sales, Advertising, and Other Revenue including sales of broadband equipment, healthcare and other interactive systems as well as advertising/media services, increased $464,000, or 4.5%, to $10.8 million during third quarter of 2008 versus $10.3 million in the third quarter of 2007. System Sales increased by $738,000, offset by a decrease of $274,000 in advertising/media revenue. On a per-room basis, monthly System Sales, Advertising and Other revenue increased 3.2% to $1.93 for the third quarter of 2008 compared to $1.87 for the third quarter of 2007.

Total direct costs (exclusive of operating expenses and depreciation and amortization discussed separately below) decreased $1.9 million to $74.0 million in the third quarter of 2008 as compared to $75.9 million in the third quarter of 2007. The decrease in total direct costs was primarily due to decreased costs for movies, which varies with revenue, offset, in part, by an increase in TV programming costs, which varies with the number of rooms served. Total direct costs as a percentage of revenue were 54.7% this quarter as compared to 53.2% reported for the third quarter of 2007.

System operations expenses decreased $617,000 to $14.9 million in the third quarter of 2008 as compared to $15.5 million in the third quarter of 2007. As a percentage of revenue, system operations expenses were 11.0% this quarter as compared to 10.9% in the third quarter of 2007. Per average installed room, system operations expenses decreased 4.6% to $2.67 per room per month compared to $2.80 in the prior year quarter.

Selling, general and administrative (SG&A) expenses decreased $3.7 million or 22.6%, from $16.1 million in the third quarter of 2007 to $12.5 million in the current quarter. This decrease is a result of achieving the expected synergies related to duplicative general and administrative functions from the consolidation of our recent acquisitions. Included within this quarter's SG&A expenses were $75,000 of integration costs, compared to integration costs of $1.8 million included in the prior year quarter. As a percentage of revenue, SG&A expenses were 9.2% in the current quarter compared to 11.3% in the third quarter of 2007. SG&A expenses per average installed room decreased 23.0% to $2.24 as compared to $2.91 in the third quarter of 2007.

Depreciation and amortization expenses were $29.0 million in the third quarter of 2008 as compared to $34.1 million in the third quarter of 2007. The decline was due to certain acquired assets becoming fully depreciated. The current period's depreciation and amortization expenses included $2.6 million of expense related to the amortization of acquired intangibles from the acquisition of StayOnline and On Command. As a percentage of revenue, depreciation and amortization expenses were 21.5% in the third quarter of 2008 as compared to 23.9% in the third quarter of 2007.

Interest expense was $10.5 million in the current quarter versus $11.7 million in the third quarter of 2007. The decrease resulted from the change in weighted average long-term debt, which decreased to $615.2 million during the third quarter of 2008 from $627.4 million in the third quarter of 2007. The weighted average interest rate decreased to 6.9% for the third quarter of 2008 versus 7.5% for the third quarter 2007.

As a result of factors previously described, Adjusted Operating Cash Flow, a non-GAAP measure which we define as operating income (loss) exclusive of depreciation, amortization, share-based compensation, restructuring and integration expenses and the effects of insurance recoveries, was $34.6 million for this quarter of 2008 as compared to $37.9 million reported for the third quarter of 2007. Restructuring and integration expenses were $0.4 million in the third quarter of 2008 as compared to $4.7 million in the third quarter of 2007.

Net loss was $(6.3) million for the third quarter of 2008, compared to a net loss of $(11.4) million in the prior year quarter. Net loss per share for the third quarter of 2008 was $(0.28) compared to net loss per share of $(0.50) in the third quarter of 2007. For the current quarter, the net loss included $3.0 million of acquisition related costs for restructuring, integration, and amortization of acquired intangibles as compared to $7.8 million during the same period of last year.

For the third quarter of 2008, cash provided by operating activities was $20.9 million and we utilized $1.1 million of cash for integration and restructuring related activities. Cash used for property and equipment additions, including growth related capital, was $14.7 million. During the quarter, we also expended cash for the required Term B payment of $1.6 million and made an additional $5.0 million prepayment against the Term B portion of the credit facility. During the third quarter of 2007, cash provided by operating activities was $28.3 million and we utilized $4.4 million for the payment of integration and restructuring related activities. Cash used for property and equipment additions for the quarter, including growth-related capital and other investing activities, was $26.8 million.

In the third quarter of 2008, we installed 15,004 new rooms and converted 12,992 rooms as compared to 15,865 new rooms and 23,815 converted rooms during the third quarter of 2007. New HD installations comprised 13,574 or 90.5% of new systems installed in the current quarter as compared to 6,395 or 40.3% of new rooms in the third quarter of 2007. During the quarter, we also converted 12,732 rooms or 98.0% to HD as compared to 8,469 or 35.6% of converted rooms in of 2007. The average investment per newly-installed HD room decreased 9.3% to $400 during the third quarter of 2008, compared to $441 in the third quarter of 2007. The average investment per converted HD room decreased 9.7% to $299 during the third quarter of 2008, compared to $331 in the third quarter of 2007.

Outlook

The Company has updated its outlook for 2008 utilizing the forecasting methodology previously used for 2008, updated to reflect year-to-date results and the impact of recent operating trends. The Company continues to expect enhancements to its run-rate Adjusted Operating Cash Flow* during the Fourth Quarter from additional operating synergies, TV Programming margin expansion and the sale of systems to hotels and hospitals; but expects those enhancements will be offset by a decline in Guest-Entertainment revenue. For the year, the Company expects that movie revenues will be (7.0)% to (8.0)% below 2007 levels. As a result, the Company expects to report 2008 revenue in the range of $537.0 million to $541.0 million and Adjusted Operating Cash Flow* in the range from $134.5 million to $137.5 million. Net loss is expected to be $(38.0) million to $(35.0) million or loss per share of $(1.71) to $(1.57). Adjusted Net Loss** is expected to be $(22.5) million to $(19.5) million or $(1.01) to $(0.88) per share. Net Free Cash Flow*** is expected to be in a range of $17.5 million to $20.0 million and Adjusted Net Free Cash Flow**** is expected to be $26.5 million to $29.5 million.

* Adjusted Operating Cash Flow is a non-GAAP measure which we define as Operating Income (Loss) exclusive of depreciation, amortization, share-based compensation, restructuring and integration expenses and the effects of insurance recoveries. ** Adjusted Net Loss excludes amortization of purchased intangibles, debt refinancing charges and restructuring and integration expenses. *** Net Free Cash Flow, a non-GAAP measure, is defined by the Company as cash provided by operating activities less cash used for investing activities, including growth related capital. **** Adjusted Net Free Cash Flow, a non-GAAP measure, is defined as net free cash flow, as defined above, and further excludes cash used for restructuring and integration activities.

The Company will also host a teleconference to discuss its results October 28, 2008, at 5:00 P.M. Eastern Time. A live webcast of the teleconference will also be available via InterCall at http://www.lodgenet.com/. The webcast will be archived at that site for one month. Additionally, the Company has posted slides at its website under the For Investors, Company Presentations section, which will be referenced during the conference call.

Special Note Regarding the Use of Non-GAAP Financial Information

To supplement our consolidated financial statements presented in accordance with accounting principles generally accepted in the United States ("GAAP"), we use adjusted operating cash flow, adjusted net loss, net free cash flow, and adjusted net free cash flow, which are non-GAAP measures derived from results based on GAAP. The presentation of this additional information is not meant to be considered superior to, in isolation of, or as a substitute for, results prepared in accordance with GAAP.

Adjusted operating cash flow is a non-GAAP measure which we define as operating income (loss) exclusive of depreciation, amortization, share-based compensation, restructuring and integration expenses and the effects on insurance recoveries and equipment impairment included in Other Operating Income. Adjusted net loss is a non-GAAP measure which we define as net loss exclusive of amortization of purchased intangibles, debt refinancing, restructuring charges and integration expenses. We define net free cash flow, a non-GAAP measure, as cash provided by operating activities less cash used for certain investing activities and excluding consideration paid for acquisitions. Adjusted net free cash flow, a non-GAAP measure, is defined as net free cash flow, as defined above, and further excludes the effect of cash consideration paid for acquisitions, debt tender, and integration and restructuring activities. These non-GAAP measures are key liquidity indicators but should not be construed as an alternative to GAAP measures or as a measure of our profitability or performance. We provide information about these measures because we believe it is a useful way for us, and our investors, to measure our ability to satisfy cash needs, including one-time charges such as restructuring or integration, interest payments on our debt, taxes and capital expenditures. Our method of computing these measures may not be comparable to other similarly titled measures of other companies.

About LodgeNet Interactive

LodgeNet Interactive Corporation is the leading provider of media and connectivity solutions designed to meet the unique needs of hospitality, healthcare and other guest-based businesses. LodgeNet Interactive serves more than 1.9 million hotel rooms representing 10,000 hotel properties worldwide in addition to healthcare facilities throughout the United States. The Company's services include: Interactive Television Solutions, Broadband Internet Solutions, Content Solutions, Professional Solutions and Advertising Media Solutions. LodgeNet Interactive Corporation owns and operates businesses under the industry leading brands: LodgeNet, LodgeNetRX, and The Hotel Networks. LodgeNet Interactive is listed on NASDAQ and trades under the symbol "LNET". For more information, please visit http://www.lodgenet.com/.

Special Note Regarding Forward-Looking Statement

Certain statements in this press release constitute "forward-looking statements." When used in this press release and in the prepared remarks as well as in response to the questions during the conference call, the words "intends," "expects," "anticipates," "estimates," "believes," "goal," "no assurance" and similar expressions, and statements which are made in the future tense or refer to future events or developments, including, without limitation, those related to our 2008 guidance, including revenue, net loss, adjusted net loss, adjusted operating cash flow, net free cash flow, adjusted net free cash flow and capital investment, are intended to identify such forward-looking statements. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause the actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward- looking statements. Such factors include, among others, the following: the effects of economic conditions, including general financial conditions (including those represented recently by liquidity crises, government bailouts and assistance plans, bank failures, and recessionary threats and developments), the economic condition of the lodging industry, which can be particularly affected the financial conditions referenced above, as well as by high gas prices, levels of unemployment, consumer confidence, acts or threats of terrorism and public health issues; competition from providers of similar services and from alternative systems for accessing in-room entertainment; competition from HSIA providers; changes in demand for our products and services; programming availability, timeliness, quality, and costs; technological developments by competitors; developmental costs, difficulties, and delays; relationships with customers and property owners, in particular as we reduce capital investment; the availability of capital to finance growth; compliance with credit facility covenants; the impact of governmental regulations; potential effects of litigation; risks of expansion into new markets; risks related to the security of our data systems; and other factors detailed, from time to time, in our filings with the Securities and Exchange Commission. With respect to any acquisition, we are subject to risks that integration costs will exceed expectations, that synergies we anticipate will not be realized, or will take longer than anticipated to realize, that our management and management systems will encounter difficulties in dealing with a bigger, more diversified enterprise, and that the financial results we expect from the acquisition will not be realized. For any of the foregoing reasons, our guidance and our actual financial results may not meet our expectations. These forward-looking statements speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

(See attached financial and operational tables) LodgeNet Interactive Corporation and Subsidiaries Consolidated Balance Sheets (Unaudited) (Dollar amounts in thousands, except share data) September 30, December 31, 2008 2007 Assets Current assets: Cash and cash equivalents $14,917 $25,569 Accounts receivable, net 71,121 73,580 Other current assets 10,272 11,359 Total current assets 96,310 110,508 Property and equipment, net 292,408 323,963 Debt issuance costs, net 9,859 11,374 Intangible assets, net 118,269 126,530 Goodwill 111,293 111,293 Other assets 9,358 10,155 Total assets $637,497 $693,823 Liabilities and Stockholders' Deficiency Current liabilities: Accounts payable $48,356 $50,559 Current maturities of long-term debt 7,547 7,398 Accrued expenses 24,081 30,118 Deferred revenue 13,560 14,354 Total current liabilities 93,544 102,429 Long-term debt 602,905 617,196 Other long-term liabilities 21,008 22,440 Total liabilities 717,457 742,065 Commitments and contingencies Stockholders' deficiency: Preferred stock, $.01 par value, 5,000,000 shares authorized; no shares issued or outstanding - - Common stock, $.01 par value, 50,000,000 shares authorized; 23,014,164 and 22,969,775 shares outstanding at September 30, 2008 and December 31, 2007, respectively 230 230 Treasury stock, at cost: 530,000 and 60,000 shares at September 30, 2008 and December 31, 2007, respectively (5,737) (1,075) Additional paid-in capital 332,113 330,405 Accumulated deficit (394,388) (367,638) Accumulated other comprehensive loss (12,178) (10,164) Total stockholders' deficiency (79,960) (48,242) Total liabilities and stockholders' deficiency $637,497 $693,823 The accompanying notes are an integral part of these consolidated financial statements. LodgeNet Interactive Corporation and Subsidiaries Consolidated Statements of Operations (Unaudited) (Dollar amounts in thousands, except share data) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Revenues: Guest entertainment and hotel services $124,522 $132,297 $378,425 $327,899 System sales, advertising and other 10,798 10,334 34,030 24,931 Total revenues 135,320 142,631 412,455 352,830 Direct Costs and Operating Expenses: Direct costs (exclusive of operating expenses and depreciation and amortization shown separately below): Guest entertainment and hotel services 65,917 68,103 197,063 163,087 System sales, advertising and other 8,116 7,839 26,080 18,250 Operating expenses: System operations 14,888 15,505 45,115 39,236 Selling, general and administrative 12,484 16,137 41,285 40,200 Depreciation and amortization 29,046 34,135 94,648 83,816 Restructuring 323 2,296 3,142 5,052 Other operating (income) expense (79) 42 (947) (774) Total direct costs and operating expenses 130,695 144,057 406,386 348,867 Income (loss) from operations 4,625 (1,426) 6,069 3,963 Other Income and (Expenses): Interest expense (10,543) (11,741) (31,999) (29,527) Loss on early retirement of debt (76) (25) (155) (22,195) Minority interest in income of subsidiary - - - 165 Other (expense) income (10) 724 (23) 1,289 Loss before income taxes (6,004) (12,468) (26,108) (46,305) Provision for income taxes (274) 1,058 (642) 836 Net loss $(6,278) $(11,410) $(26,750) $(45,469) Net loss per common share (basic and diluted) $(0.28) $(0.50) $(1.19) $(2.12) Weighted average shares outstanding (basic and diluted) 22,296,886 22,742,001 22,397,466 21,417,266 The accompanying notes are an integral part of these consolidated financial statements. LodgeNet Interactive Corporation and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) (Dollar amounts in thousands) Nine Months Ended September 30, 2008 2007 Operating activities: Net loss $(26,750) $(45,469) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 94,648 83,816 Loss on early retirement of debt 155 3,583 Share-based compensation 1,735 1,296 Gain due to insurance proceeds (815) - Insurance proceeds related to business interruption 815 - Other, net (32) (215) Change in operating assets and liabilities: Accounts receivable, net 2,195 (5,890) Other current assets 946 (2,792) Accounts payable (1,617) 7,970 Accrued expenses and deferred revenue (8,580) 1,018 Other 691 (904) Net cash provided by operating activities 63,391 42,413 Investing activities: Property and equipment additions (53,428) (60,591) Acquisition of StayOnline, Inc. - (14,311) Acquisition of THN (20% minority interest) - (5,000) Acquisition of On Command Corporation, net of cash acquired - (335,364) Other investing activities - 638 Net cash used for investing activities (53,428) (414,628) Financing activities: Proceeds from long-term debt - 625,000 Repayment of long-term debt (14,698) (269,677) Payment of capital lease obligations (1,066) (1,419) Borrowings on revolving credit facility 30,000 - Repayments of revolving credit facility (30,000) - Debt issuance costs - (12,738) Contribution from minority interest holder to subsidiary - 300 Purchase of treasury stock (4,662) - Proceeds from issuance of common stock, net of offering costs - 23,290 Exercise of stock options - 16,468 Net cash (used for) provided by financing activities (20,426) 381,224 Effect of exchange rates on cash (189) 346 (Decrease) increase in cash and cash equivalents (10,652) 9,355 Cash and cash equivalents at beginning of period 25,569 22,795 Cash and cash equivalents at end of period $14,917 $32,150 The accompanying notes are an integral part of these consolidated financial statements. LodgeNet Interactive Corporation and Subsidiaries Supplemental Data 3rd Qtr '08 2nd Qtr '08 1st Qtr '08 4th Qtr '07 3rd Qtr '07 Room Base Statistics Total Rooms Served (1) 1,970,752 1,969,524 1,968,000 1,962,090 1,954,116 Total Guest Entertainment Rooms (2) 1,862,885 1,865,594 1,863,599 1,860,720 1,852,124 Total HD Rooms (3) 163,768 137,034 109,980 84,327 63,502 Percent of Total Guest Entertainment Rooms 8.8% 7.3% 5.9% 4.5% 3.4% Total Television Programming (FTG) Rooms (4) 1,098,687 1,087,448 1,076,894 1,068,256 1,059,440 Percent of Total Guest Entertainment Rooms 59.0% 58.3% 57.8% 57.4% 57.2% Total Broadband Internet Rooms (5) 227,880 222,421 221,906 218,860 215,581 Percent of Total Rooms Served 11.6% 11.3% 11.3% 11.2% 11.0% Revenue Per Room Statistics (per month) Guest Entertainment Revenue $16.85 $17.09 $17.83 $16.88 $19.06 Hotel Services Revenue 5.52 5.40 5.29 4.87 4.80 System Sales, Advertising and Other Revenue 1.93 2.16 2.00 2.10 1.87 Total Revenue Per Room $24.30 $24.65 $25.12 $23.85 $25.73 Based on average LodgeNet owned Guest Entertainment rooms. Summary Operating Results (Dollar amounts in thousands) Guest Entertainment Revenue $93,808 $95,208 $99,203 $93,966 $105,673 Hotel Services Revenue 30,714 30,082 29,410 27,099 26,624 System Sales, Advertising and Other Revenue 10,798 12,057 11,174 11,693 10,334 Total Revenue $135,320 $137,347 $139,787 $132,758 $142,631 Adjusted Operating Cash Flow (6) $34,611 $36,730 $34,551 $33,838 $37,872 Operating Income (Loss) $4,625 $3,292 $(1,847) $(8,199) $(1,426) Write-off Debt Issuance Costs $(76) $(79) $- $- $(25) Net Loss $(6,278) $(7,461) $(13,011) $(19,702) $(11,410) Reconciliation of Adjusted Operating Cash Flow to Operating Income (Loss) (Dollar amounts in thousands) Adjusted Operating Cash Flow $34,611 $36,730 $34,551 $33,838 $37,872 Depreciation and Amortization (26,430) (29,886) (29,948) (29,843) (31,025) Amortization of Acquired Intangibles (2,616) (2,616) (3,152) (2,719) (3,110) Share Based Compensation (542) (685) (508) (442) (443) Restructuring Expense (323) (817) (2,002) (6,105) (2,296) Integration Expense (75) (249) (788) (2,928) (2,424) Insurance Proceeds - 815 - - - Operating Income (Loss) $4,625 $3,292 $(1,847) $(8,199) $(1,426) (1) Total rooms served represents rooms receiving one or more of our services including rooms served by international licensees. (2) Guest Entertainment rooms receive one or more Guest Entertainment Services such as movies, video games, music or other interactive services. (3) HD rooms are equipped with high-definition capabilities. (4) Television programming (FTG) rooms receiving basic or premium television programming. (5) Represents rooms receiving high-speed Internet service included in total rooms served. (6) Adjusted Operating Cash Flow is a non-GAAP measure which we define as Operating Income (Loss) exclusive of depreciation, amortization, share-based compensation, restructuring and integration expenses and the effects of insurance recoveries.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20080115/AQTU120LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com LodgeNet Interactive Corporation

CONTACT: Ann Parker, Director, Investor Relations of LodgeNet
Interactive Corporation, +1-605-988-1000, ann.parker@lodgenet.com; or Mike
Smargiassi of Brainerd Communicators, +1-212-986-6667, smarg@braincomm.com,
for LodgeNet Interactive Corporation

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

Dot VN, Inc. Completes Analysis of Initial Test of Millimeter Wave Wireless Technology in Hanoi

SAN DIEGO, Oct. 28 /PRNewswire-FirstCall/ -- Dot VN, Inc., a Delaware corporation ("Dot VN" or the "Company") (http://www.dotvn.com/), (Pink Sheets: DTVI), an Internet and Telecommunications Company and the exclusive online global domain name registrar for the Country of Vietnam, announced that it has completed review and analysis of the report regarding the results of a 30-day field test of the E-Link 1000 millimeter wave communication systems (the "E-Link") from E-Band Communications Corp ("E-Band"). The field test was conducted in Hanoi, Vietnam between June and July of 2008, the monsoon season in Vietnam, by Dot VN and its technology partners in the project, E-Band Communications Corporation, Vietnam Data Communications Corporation ("VDC") and the Vietnam Internet Network Information Center ("VNNIC").

The report, produced by VDC, the largest Internet service provider in Vietnam, found that the E-Link is an excellent method of creating Gigabit Ethernet ("GigE") connectivity over a distance of several kilometers. Based on the results of the initial tests, Dot VN is optimistic about the possible applications of the E-Link in Vietnam including, but not limited to: (i) backhaul of 4G, WiMax, WiFi and mobile networks; (ii) metropolitan wireless fiber rings; (iii) video conferencing and surveillance; and (iv) IP Television and VOIP services.

Although additional testing is required in both urban and rural environments, initial results are promising and the Company believes that the E-Link can serve as an integral component in the continued development and evolution of the data and telecommunications infrastructures in Vietnam. The Company anticipates that the E-Link can offer a cost-effective and reliable means of providing GigE connectivity thereby significantly reducing the problem of increasing bandwidth demand by the estimated 20 million internet users in Vietnam.

Currently, Dot VN, the exclusive distributor of the E-Link in Vietnam, is working with its partners to conduct additional tests and demonstration of the capabilities of Millimeter Wave Wireless Technology in Vietnam and expects several such demonstrations to be conducted in the near term.

"The positive results from the extensive field tests of the E-Link 1000 systems in Hanoi is very exciting news for Dot VN and its technology partners who participated in this trial. Working closely with VDC, VNNIC and E-Band, the Company was able to secure a test license from the Ministry of Information and Communications ("MIC") to test and import the advanced radio equipment into Vietnam within a relatively short period of time. This is a historic achievement for the Company and its partners. We plan to continue to aggressively demonstrate this exciting new technology in other major cities, such as Ho Chi Minh City, Danang and Can Tho as well as in rural applications. We expect the E-Link to be a core component of Vietnam's technology infrastructure," stated Thomas M. Johnson, Chairman and Chief Executive Officer.

"Vietnam's explosive growth over the last several years introduced enormous demand for state-of-the-art telecommunications infrastructure and we are happy to offer the solution that enables Vietnam to deploy fiber-equivalent services on E-Band's wireless technology. The trial with VDC proved that E-Band's wireless products deliver Gigabit-Ethernet speeds and offer the world's best reliability and distance spanning several kilometers even in Vietnam's tropical climate. We are looking forward to working with Dot VN and offering this amazing technology to facilitate the growth and prosperity in Vietnam," said Saul Umbrasas, Chief Marketing Officer of E-Band Communications Corp.

About the Company:

Dot VN, Inc. (http://www.dotvn.com/) provides Internet and Telecommunication services for Vietnam. Vietnam Internet Network Information Center ("VNNIC") awarded the Company an "exclusive long term contract" to be the first registrar to market and register its country code Top Level Domain ("ccTLD") of .VN (Vietnam) via the Internet. Dot VN has established agreements with international ISP's (Internet service providers) along with over 73 top domain resellers to commercialize .VN. Also, the Company is currently developing initiatives to offer Internet Data Center services and Wireless applications.

About our technology partners:

E-Band Communications Corporation ("E-Band") (http://www.ebandcom.com/) designs and manufactures the highest performance multi-gigabit capacity wireless communication systems based on 71-86 GHz millimeter-wave radio technology. Using highly integrated microwave monolithic integrated circuit (MMIC) technology enables E-Band to manufacture the highest performance wireless systems with a data rate of 1 to 3 Gbps and in the future 10 Gbps over the distances of several miles and availability up to 99.999%. The market expects E-Band to solve last mile access bottleneck problems, connect enterprises to fiber networks, and enable backhaul of mobile (3G/4G) and fixed wireless (WiFi, WiMax) networks. E-Band signed an exclusive field of use license agreement with Northrop Grumman Corporation for its E-Band Monolithic Microwave Integrated Circuit (MMIC) technology. The highly integrated multifunction GaAs MMIC-based chipset is used by E-Band to develop low cost millimeter wave radio communication systems. This technology gives E-Band a head-start compared to competitors and will ensure long term performance and cost advantage.

Vietnam Data Communications Company ("VDC"), (http://www.vdc.com.vn/) a Vietnamese State-owned enterprise, is a subsidiary of VNPT and is the largest ISP and international telecom operator in Vietnam. Its total international capacity recently reached 6.85 Gbps in 2007, or 183 percent more than in 2006. Meanwhile, the total international traffic of VPN was 250 Mbps. VDC is now operating two 64 Kbps channels to Singapore and Australia, together with 43 channels of 64 Kbps each and 3 channels of 3 Mbps each inside the country.

Vietnam Internet Network Information Center ("VNNIC"), (http://www.vnnic.net.vn/) is an agency of the Ministry of Information and Communication ("MIC") of Vietnam. VNNIC was founded on 28th April 2000, and carries out the functions of managing, allocating, supervising and promoting the use of Internet domain names, addresses, autonomous system numbers in Vietnam, providing Internet-related guidance, statistics on Internet usage, and representing Vietnam at Internet related events.

Cautionary Warning Regarding Forward-Looking Statements

Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to Dot VN or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about Dot VN's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in Dot VN's filings with the Securities and Exchange Commission. Factors that could materially affect these forward-looking statements and/or predictions include, among other things: (i) our limited operating history; (ii) our ability to pay down existing debt; (iii) unforeseen costs and expenses; (iv) potential litigation with our shareholders, creditors and/or former or current investors; (v) Dot VN's ability to comply with federal, state and local government regulations in the US and foreign countries; (vi) Dot VN's ability to maintain current agreements with the government of Vietnam and enter into additional agreements with the government of Vietnam; and (vii) other factors over which we have little or no control. In addition, such statements could be affected by risks and uncertainties related to product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and Dot VN does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on Dot VN's website does not constitute a part of this release.

For more information, contact: Thomas M. Johnson, Chairman & CEO Dot VN, Inc. Phone: 858-571-2007 Email: USA@DotVN.com Website: http://www.dotvn.com/ Register your .VN domains at: http://www.vn/

Dot VN, Inc.

CONTACT: Thomas M. Johnson, Chairman & CEO of Dot VN, Inc.,
+1-858-571-2007, USA@DotVN.com

Web Site: http://www.dotvn.com/
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Microsoft Outlines Benefits of Software Plus Services to Higher Education at EDUCAUSEInstitutions to find cost savings, choice, security in on-premise and cloud computing environments.

ORLANDO, Fla., Oct. 28 /PRNewswire-FirstCall/ -- This week at EDUCAUSE 2008, a premier information technology event in higher education, Microsoft Corp. is showcasing new additions to its software plus services plans for education as part of the company's effort to support agile, efficient and connected education systems and institutions. This next generation of computing provides institutional customers with new levels of flexibility and choice, as well as greater ease in developing, migrating, operating and managing systems that are distributed and federated between the cloud and the campus.

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Today as part of the Professional Developers Conference 2008 in Los Angeles, Microsoft unveiled a new addition to the Microsoft Live@edu service, Office Web applications, new lightweight versions of Microsoft Office applications. Yesterday at PDC, Microsoft announced Windows Azure, the cloud-based service foundation underlying its Azure Services Platform, and highlighted the platform's role in delivering a software-plus-services approach to computing.

"Administrators in higher education have debated for years on whether or not to use on-campus software or hosted, off-campus services," said Anthony Salcito, general manager of U.S. Public Sector Education at Microsoft. "They will no longer need to make this draconian choice. They can use the best of both. They should find this to be exactly what both faculty and students want in this digital age."

Beginning With Microsoft Live@edu, Education Institutions Expect Innovation and Cost Savings

Higher education institutions are seeking new ways of enhancing the IT investments they have already made and new reasons to consolidate their systems to ensure maximum savings and efficiencies. New cloud technologies enable convenient access to central applications and provide consolidation (and cost reduction) benefits. With hosted services and storage, for instance, customers are finding new savings. Schools are already seeing benefits with Microsoft Live@edu, a suite of messaging, mobile, and collaboration and productivity services that enables virtual campuses, where students and educators can benefit from the free flow of information and ideas within each learning community.

St. John's University administrators have found that Live@edu is one solution that is helping to strengthen their business and empower their work. While they plan to provide a more cost-effective solution by fully utilizing the hosted Microsoft Exchange Server-based e-mail service for all students, they are also going to take advantage of the hosted collaboration and virtual file storage capabilities across all their campuses. This will enable them to keep faculty and students connected on the same collaboration platform, while solving their long-term needs for classroom collaboration pages and team project workspaces.

"The millennium student comes to St. John's expecting the latest technologies and online experiences that they have grown up with," said Gary Young, associate director of Academic Technology of St. John's University. "Now with the Microsoft Exchange Labs solution, we get enterprise-level hosted e-mail and collaboration tools."

University of Central Florida Chief Information Officer Joel L. Hartman agreed. "We launched Live@edu as our new student e-mail platform in August, and so far, more than 27,500 students have signed up for the service -- thousands per day at times. Early feedback suggests that our students are delighted with the Live@edu features, especially Skydrive and Office Live Workspace," he said. "Live@edu provides our students not only a robust and easy-to-use e-mail platform, but also an increasingly powerful range of tools and services they can use to support their academic work and social activities."

Announcing Office Web Applications: A New Cloud Service

Microsoft will release a private technical preview of four Web applications later this year -- Microsoft Office Word, Excel, PowerPoint and OneNote -- enabling people to view, edit and collaborate on Office documents in a Web browser, as well as post them to blogs and Web sites.

Web applications will be delivered to students across multiple browsers including Windows Internet Explorer, Safari and Firefox through Microsoft Office Live Workspace and Microsoft Live@edu. For institutional customers, the Office Web applications will also be available as a hosted subscription, as well as through existing Volume Licensing programs. Office Live Workspace beta is the Web-based extension of Microsoft Office that empowers users to create collaborative workspaces to access, share and organize documents and projects for school, work or home.

"Through Office Web applications, Microsoft is enabling the development of the next generation of student computing experiences," said Kirk Gregersen, director of Office Live product management at Microsoft." By empowering students with the ability to edit an Excel spreadsheet in the browser, view an Excel spreadsheet using their mobile phone, or populate the spreadsheet using Office 2007 software, a campus community facilitates rich cloud experiences with the tools that students and information workers expect."

Universities interested in learning more about the upcoming beta availability are encouraged to sign up for either Microsoft Live@edu at http://get.liveatedu.com/ or the Office Live Workspace beta at http://workspace.officelive.com/. The University of Washington, a Microsoft Live@edu school and participating university in the Office Live Workspace beta pilot program, has previewed Office Web applications. Scott Barker, director of IT and Informatics Chair for the University of Washington Information School, said, "It's critical for our students to have the latest technology in order to succeed in their classes. Microsoft Office Web applications will provide our students with the choice of writing a paper, for example, in the cloud, or writing it via the desktop using Microsoft Word. Having those critical, seamless touchpoints with documents is crucial. Web Applications provides students with the means -- at any time of day, from anywhere -- to access, edit, share and collaborate with other students or faculty using just the browser."

Microsoft at EDUCAUSE

Microsoft is a Platinum sponsor at EDUCAUSE 2008, and this year's attendees will have the opportunity to see and learn more about Microsoft's new and emerging software-plus-services solutions for education. Technology demonstrations and theater presentations at the Microsoft booth will focus on how customers can improve IT infrastructure, open valuable communication lines, and innovate to save institutions time and money. On Thursday, Oct. 30, Anthony Salcito, Microsoft general manager of U.S. Public Sector Education, will speak on Microsoft's vision for cloud computing and emerging technologies from 8:10 to 9 a.m. in room W223.

More information about Microsoft at EDUCAUSE 2008 can be found at http://www.microsoft.com/education/events/educause2008.mspx.

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

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Even with the Turmoil, Wall Street Still Expects Their BonusesAccording to survey respondents, 36% expect a higher bonus this year than last

NEW YORK, Oct. 28 /PRNewswire/ -- Even with the market chaos and government bailouts, more than two-thirds of Wall Street professionals are still expecting a bonus this year, and 36% are expecting a bigger bonus than last year.

These are some of the results of an October survey of U.S. financial services professionals following the news of the federal bailout and the initial plunge in the stock market. The survey was conducted by eFinancialCareers and more than 1,300 employed U.S. financial services professionals responded.

While the survey results would seem to run contrary to the current economy, chaotic markets, bank failures, and unprecedented government intervention, the reality is that for many on Wall Street, they will receive bonuses this year, as even institutions that are suffering will reward professionals.

To be sure, among those expecting bonuses this year, most anticipate the increase will be 10% or less over last year. But a minority -- 10% -- expect this year's bonus to be at least 33% above last year. Another 31% of U.S. financial services professionals expect this year's payout to be less than 2007, while 34% expect no bonus at all.

"While the bonus pool will certainly be down substantially this year, bonuses will still be paid to those individuals who generated revenue for their institutions," said John Benson, founder and CEO of eFinancialCareers.com. "For those who performed, the failure to receive a bonus may make them receptive to offers from other employers and banks cannot afford to lose their top performers right now."

Not surprisingly given their role, those holding front office jobs were the most optimistic, with 71% expecting a 2008 bonus, while in the back office just over half (56%) expect a payout.

Current State of Mind

The turmoil on Wall Street is reflected in the attitudes of professionals currently employed. More than two-thirds (68%) of employed financial services professionals are either open to changing jobs or actively looking. Another 19% would love to switch jobs, but for now consider themselves playing it safe by staying put. Only 14% of respondents indicated that they are very happy and not looking to move.

In fact, not only are they ready to change jobs, the survey results point to only a lukewarm desire to stay on Wall Street. 71% of respondents said they would consider a job opportunity outside of financial services. The positions most often mentioned as desirable: corporate development or strategy and management consulting.

"While the desire to jump ship may be high, financial services professionals should give serious consideration to how they will potentially transfer their skills to other industries," noted Mr. Benson. "Those who can survive this downturn on Wall Street will be well positioned as leaders when the cycle turns again."

eFinancialCareers currently lists more than 1,800 jobs nationwide for financial services professionals and more than 10,000 positions worldwide.

Survey Methodology

The eFinancialCareers Bonus Survey was administered online October 13 - October 21, 2008 with more than 1,300 registered U.S. eFinancialCareers users responding. Registered users had to indicate that they were currently employed to be included in the survey results. Registered users were invited to participate in the survey through e-mail.

Table 1: What do you expect to happen to your bonus this year compared to last year?

51%+ more 7% 33-50% more 3% 11-30% more 6% 0-10% more 20% 1-10% less 7% 11-30% less 8% 31-50% less 7% 51%+ less 8% I will have no bonus 34%

Table 2: What do you expect to happen to your bonus this year compared to last year?

(summary results) Front Back Office Office Higher 37% 31% Lower 34% 24% I will have no bonus 29% 44%

Table 3: Which of the following best describes your current situation related to job searching, I am...

Unhappy with my job and looking to change as soon as possible. 21% Would love to switch jobs, but staying put for now to play it safe. 19% My job is fine, but I'd be open to a better opportunity. 32% Looking for a job due to concern of being eliminated in light of market conditions. 14% Very happy with my job and not looking to move. 14%

Table 4: Would you consider making a career change outside the financial services industry?

Yes 71% No 29% About eFinancialCareers

eFinancialCareers, a Dice Holdings, Inc. company, is the leading global career site network for professionals working in the investment banking, asset management and securities industries. The website provides financial services professionals with job opportunities, job market news and analysis, salary surveys and career advice. Recruiters and employers can post jobs targeting specific sectors within the financial services industry, both buy-side and sell-side, and can search the resume database for highly qualified and specialized professionals. eFinancialCareers has a network of co-branded career sites with industry-leading trade publications and offers local websites in 18 markets and five languages primarily across North America, Europe, the Middle East and Asia-Pacific. http://www.efinancialcareers.com/

eFinancialCareers

CONTACT: Jennifer Bewley, eFinancialCareers, +1-212-448-8288,
efcmedia@efinancialcareers.com

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