RealNetworks Appoints John Barbour to Head Its Casual Games Business

SEATTLE, Oct. 29 /PRNewswire-FirstCall/ -- Digital entertainment services company RealNetworks(R), Inc. today announced the appointment of John Barbour as President of its games division. Barbour joins Real after more than 20 years of success in consumer entertainment businesses, particularly in toys and games.

"John is an outstanding executive and we're thrilled to be adding him to our leadership team," said Rob Glaser, chairman and CEO of RealNetworks. "John's sharp intellect, proven leadership skills, breadth of experience and consumer focus will serve us very well both in his new role and in his prospective future role as CEO of our stand-alone Games company."

Most recently, John was President of Toys "R" Us' $5.5 Billion U.S. operations and was a key member of the executive team that sold the company to Bain Capital, KKR and Vornado. Over a seven-year period, John led the successful turn-around of the Toys "R" Us U.S. and International divisions. Prior to that, John built and ran toysrus.com and led the rapid growth of the business into the #1 global online retailer of Toys and games.

Prior to joining Toys "R" Us, Barbour was a senior executive at Hasbro and a successful entrepreneur at OddzOn where he led the company through its acquisition by Hasbro.

"I am very excited to be joining Real and to be leading Real Games," said Mr. Barbour. "The Real Games Division is ideally positioned to play a leading role in this growing industry and to capitalize upon the exciting market potential."

ABOUT REALNETWORKS

RealNetworks, Inc. delivers digital entertainment services to consumers via PC, portable music player, home entertainment system and mobile phone. Real created the streaming media category in 1995 and has continued to lead the market with pioneering products and services, including: RealPlayer(R), the first mainstream media player to enable one-click downloading and recording of Internet video; the award-winning Rhapsody(R) digital music service, which delivers more than 1 billion songs per year; RealArcade(R), one of the largest casual games destinations on the Web; and a variety of mobile entertainment services, such as ringback tones, offered to consumers through leading wireless carriers around the world. RealNetworks' corporate information is located at http://www.realnetworks.com/company.

RNWK-F

Forward Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to our ability to successfully spin-off our games business and the growth prospects of the games business. More information about potential risk factors that could affect RealNetworks' business and financial results is included in RealNetworks' annual report on Form 10-K for the most recent year ended December 31, and its quarterly reports on Form 10-Q and from time to time in other reports filed by RealNetworks with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates.

RealNetworks, Inc.

CONTACT: media, Bill Hankes, +1-206-892-6614, bhankes@real.com, or
financial, Marj Charlier, +1-206-892-6718, mcharlier@real.com, both of
RealNetworks, Inc.

Web site: http://www.realnetworks.com/
http://www.toysrus.com/

FARO Reports Sales Growth of 10.3%, Orders Grow 12.3%

LAKE MARY, Fla., Oct. 29 /PRNewswire-FirstCall/ -- FARO Technologies, Inc. today announced results for the third quarter ended September 27, 2008. Net income for the third quarter was $2.0 million, or $0.12 per diluted share, an increase of $1.3 million, compared to $0.7 million, or $0.04 per diluted share, in the third quarter of 2007.

Sales for the third quarter of 2008 were $49.1 million, an increase of $4.6 million, or 10.3%, from $44.5 million in the third quarter of 2007. New order bookings for the third quarter were $49.2 million, an increase of $5.4 million, or 12.3%, compared with $43.8 million in the third quarter of 2007.

"We saw double-digit orders and sales growth in the third quarter, but our deal closure rate remains below our historical average, continuing the trend we saw in the first and second quarter of this year," stated Jay Freeland, President and Chief Executive Officer of FARO. "New leads and customer demos are at our historical levels in all three regions, which remains a positive sign for the business. However, customers continue to delay their purchasing decisions which is resulting in lower than normal growth rates."

Gross margin for the third quarter of 2008 was 59.1%, compared to 59.4% in the third quarter of 2007. Gross margin decreased primarily as the result of an increase in service costs as a percentage of sales.

Selling expenses as a percentage of sales increased to 31.3% in the third quarter of 2008 from 30.6% in the third quarter of 2007 primarily as a result of an increase in new sales personnel that were added to continue driving the Company's growth.

General and administrative expenses decreased to 13.5% of sales for the third quarter of 2008 from 17.9% in the third quarter of 2007. General and administrative expenses in the third quarter of 2007 include the accrual of $2.65 million for the estimated fines and penalties related to the settlement of the FCPA matter.

The Company increased spending in research and development to accelerate development of new product platforms. Accordingly, R&D costs were $3.2 million in the third quarter of 2008, an increase from $2.9 million in the third quarter of 2007.

Operating margin for the third quarter of 2008 increased to 5.3% from 2.2% in the quarter ended September 29, 2007.

Income tax expense decreased by $1.1 million to $0.5 million for the three months ended September 27, 2008 from $1.6 million for the three months ended September 29, 2007. This decrease was primarily a result of a reduction in the effective tax rate to 19.9% for the three months ended September 27, 2008, from 69.5% for the three months ended September 29, 2007. The Company's effective tax rate was 69.5% in the three months ended September 29, 2007 as a result of an increase in expenses that are non-deductible for U.S. income tax purposes of $2.65 million related to the accrual for the previously mentioned FCPA matter. The Company's effective income tax rate, excluding this effect, would have been 19.9% for the three months ended September 29, 2007.

"In this challenging economic environment, I am pleased with our year-to-date sales growth of more than 15% as well as the strength of our balance sheet with zero debt and more than $100 million in cash and short term investments. Customer interest in our solutions remains strong, but their ability and willingness to transact has slowed. Because of that uncertainty, we are lowering our full-year 2008 revenue guidance from 15-20% growth to 5-10% growth while maintaining our previously issued gross margin guidance of 58-60% of sales. Given the depth and breadth of this global uncertainty, we do not plan to issue guidance for fiscal 2009 until we see stability in the macroeconomic environment," Freeland concluded.

This press release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are subject to risks and uncertainties, such as statements about our plans, objectives, projections, expectations, assumptions, strategies, or future events. Statements that are not historical facts or that describe the Company's plans, objectives, projections, expectations, assumptions, strategies, or goals are forward-looking statements. In addition, words such as "may," "believes," "anticipates," "expects," "intends," "plans," "seeks," "estimates," "will," "should," "could," "projects," "forecast," "target," "goal," and similar expressions or discussions of our strategy or other intentions identify forward-looking statements. Other written or oral statements, which constitute forward-looking statements, also may be made by the Company from time to time. Forward-looking statements are not guarantees of future performance and are subject to various known and unknown risks, uncertainties, and other factors that may cause actual results, performances, or achievements to differ materially from future results, performances, or achievements expressed or implied by such forward-looking statements. Consequently, undue reliance should not be placed on these forward-looking statements.

Factors that could cause actual results to differ materially from what is expressed or forecasted in forward-looking statements include, but are not limited to:

-- our inability to further penetrate our customer base; -- development by others of new or improved products, processes or technologies that make our products obsolete or less competitive; -- our inability to maintain our technological advantage by developing new products and enhancing our existing products; -- our inability to successfully identify and acquire target companies or achieve expected benefits from acquisitions that are consummated; -- the cyclical nature of the industries of our customers and the financial condition of our customers; -- a slowdown in the manufacturing industry or the domestic and international economies in the regions of the world where the Company operates; -- the fact that the market potential for the CAM2 market and the potential adoption rate for our products are difficult to quantify and predict; -- the inability to protect our patents and other proprietary rights in the United States and foreign countries; -- fluctuations in our annual and quarterly operating results and the inability to achieve our financial operating targets as a result of a number of factors including, without limitation (i) litigation and regulatory action brought against us, (ii) quality issues with our products, (iii) excess or obsolete inventory, (iv) raw material price fluctuations, (v) expansion of our manufacturing capability and other inflationary pressures, (vi) the size and timing of customer orders, (vii) the amount of time that it takes to fulfill orders and ship our products, (viii) the length of our sales cycle to new customers and the time and expense incurred in further penetrating our existing customer base, (ix) increases in operating expenses required for product development and new product, marketing, (x) costs associated with new product introductions, such as product development, marketing, assembly line start-up costs and low introductory period production volumes, (xi) the timing and market acceptance of new products and product enhancements, (xii) customer order deferrals in anticipation of new products and product enhancements, (xiii) our success in expanding our sales and marketing programs, (xiv) start-up costs associated with opening new sales offices outside of the United States, (xv) fluctuations in revenue without proportionate adjustments in fixed costs, (xvi) the efficiencies achieved in managing inventories and fixed assets, (xvii) investments in potential acquisitions or strategic sales, product or other initiatives, (xviii) shrinkage or other inventory losses due to product obsolescence, scrap or material price changes, (xix) adverse changes in the manufacturing industry and general economic conditions, (xx) compliance with government regulations including health, safety, and environmental matters, (xxi) the ultimate costs of the Company's monitoring obligations in respect of the Foreign Corrupt Practices Act ("FCPA") matter; and (xxii) other factors noted herein; -- changes in gross margins due to changing product mix of products sold and the different gross margins on different products; -- our inability to successfully maintain the requirements of Restriction of use of Hazardous Substances ("RoHS") and Waste Electrical and Electronic Equipment ("WEEE") compliance into our products; -- the inability of our products to displace traditional measurement devices and attain broad market acceptance; -- the impact of competitive products and pricing in the CAM2 market and the broader market for measurement and inspection devices; -- the effects of increased competition as a result of recent consolidation in the CAM2 market; -- risks associated with expanding international operations, such as fluctuations in currency exchange rates, difficulties in staffing and managing foreign operations, political and economic instability, compliance with import and export regulations, and the burdens and potential exposure of complying with a wide variety of U.S. and foreign laws and labor practices; -- the loss of our Chief Executive Officer or other key personnel; -- difficulties in recruiting research and development engineers, and application engineers; -- the failure to effectively manage our growth; -- variations in the effective income tax rate and the difficulty in predicting the tax rate on a quarterly and annual basis; and -- the loss of key suppliers and the inability to find sufficient alternative suppliers in a reasonable period or on commercially reasonable terms. -- the other risks detailed in the Company's Annual Report on Form 10-K and other filings from time to time with the Securities and Exchange Commission.

Forward-looking statements in this release represent the Company's judgment as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

About FARO

With approximately 18,000 installations and 8,600 customers globally, FARO Technologies, Inc. designs, develops, and markets portable, computerized measurement devices and software used to create digital models -- or to perform evaluations against an existing model -- for anything requiring highly detailed 3-D measurements, including part and assembly inspection, factory planning and asset documentation, as well as specialized applications ranging from surveying, recreating accident sites and crime scenes to digitally preserving historical sites.

FARO's technology increases productivity by dramatically reducing the amount of on-site measuring time, and the various industry-specific software packages enable users to process and present their results quickly and more effectively.

Principal products include the world's best-selling portable measurement arm -- the FaroArm; the world's best-selling laser tracker -- the FARO Laser Tracker X and Xi; the FARO Laser ScanArm; FARO Photon Laser Scanners; the FARO Gage, Gage-PLUS and PowerGAGE; and the CAM2 Q family of advanced CAD-based measurement and reporting software. FARO Technologies is ISO-9001 certified and ISO-17025 laboratory registered.

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 27, December 31, (in thousands, except share data) 2008 2007 ASSETS Current Assets: Cash and cash equivalents $20,160 $25,798 Short-term investments 82,370 77,375 Accounts receivable, net 45,354 54,767 Inventories 37,237 29,100 Deferred income taxes, net 6,034 2,841 Prepaid expenses and other current assets 9,097 6,719 Total current assets 200,252 196,600 Property and Equipment: Machinery and equipment 18,145 12,895 Furniture and fixtures 3,909 5,008 Leasehold improvements 3,523 3,296 Property and equipment at cost 25,577 21,199 Less: accumulated depreciation and amortization (16,068) (13,672) Property and equipment, net 9,509 7,527 Goodwill 19,544 19,117 Intangible assets, net 8,869 5,970 Service inventory 12,682 10,865 Deferred income taxes, net 1,931 3,460 Total Assets $252,787 $243,539 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $9,526 $12,450 Accrued liabilities 13,290 17,989 Income taxes payable 1,470 2,266 Current portion of unearned service revenues 10,846 8,594 Customer deposits 334 337 Current portion of obligations under capital leases 15 18 Total current liabilities 35,481 41,654 Unearned service revenues - less current portion 6,597 6,091 Deferred tax liability, net 1,157 1,073 Obligations under capital leases - less current portion 159 222 Total Liabilities 43,394 49,040 Commitments and contingencies Shareholders' Equity: Common stock - par value $.001, 50,000,000 shares authorized; 16,733,554 and 16,700,966 issued; 16,653,859 and 16,604,052 outstanding, respectively 17 17 Additional paid-in-capital 148,782 146,489 Retained earnings 55,299 43,545 Accumulated other comprehensive income 5,446 4,599 Common stock in treasury, at cost - 40,000 shares (151) (151) Total Shareholders' Equity 209,393 194,499 Total Liabilities and Shareholders' Equity $252,787 $243,539 FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended (in thousands) Sep 27, 2008 Sep 29, 2007 CASH FLOWS FROM: OPERATING ACTIVITIES: Net income $11,754 $9,689 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 3,293 3,013 Amortization of stock options and restricted stock units 1,686 956 Provision for bad debts 446 223 Deferred income tax benefit (1,575) (542) Change in operating assets and liabilities: Decrease (increase) in: Accounts receivable 9,198 (218) Inventories (9,681) (4,798) Prepaid expenses and other current assets (2,369) (695) Income tax benefit from exercise of stock options (45) (2,993) Increase (decrease) in: Accounts payable and accrued liabilities (7,654) 2,499 Income taxes payable (771) (785) Customer deposits (11) (314) Unearned service revenues 2,671 5,064 Net cash provided by operating activities 6,942 11,099 INVESTING ACTIVITIES: Purchases of property and equipment (4,377) (1,807) Payments for intangible assets (3,584) (264) Purchases of short-term investments (4,995) (56,990) Net cash used in investing activities (12,956) (59,061) FINANCING ACTIVITIES: Payments on capital leases (68) (60) Income tax benefit from exercise of stock options 45 2,993 Proceeds from issuance of stock, net 128 58,409 Net cash provided by financing activities 105 61,342 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 271 (3,660) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (5,638) 9,720 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 25,798 15,689 CASH AND CASH EQUIVALENTS, END OF PERIOD $20,160 $25,409 FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except per Three Months Ended Nine Months Ended share data) Sep 27, Sep 29, Sep 27, Sep 29, 2008 2007 2008 2007 SALES $49,095 $44,521 $152,934 $132,389 COST OF SALES (exclusive of depreciation and amortization, shown separately below) 20,086 18,065 59,980 52,873 GROSS PROFIT 29,009 26,456 92,954 79,516 OPERATING EXPENSES: Selling 15,382 13,625 46,886 39,951 General and administrative 6,614 7,978 19,274 18,496 Depreciation and amortization 1,158 971 3,293 3,013 Research and development 3,237 2,881 9,122 7,129 Total operating expenses 26,391 25,455 78,575 68,589 INCOME FROM OPERATIONS 2,618 1,001 14,379 10,927 OTHER (INCOME) EXPENSE Interest income (547) (590) (1,624) (1,182) Other (income) expense, net 652 (720) 834 (1,427) Interest expense 2 3 450 7 INCOME BEFORE INCOME TAX 2,511 2,308 14,719 13,529 INCOME TAX EXPENSE 500 1,603 2,965 3,840 NET INCOME $2,011 $705 $11,754 $9,689 NET INCOME PER SHARE - BASIC $0.12 $0.04 $0.71 $0.64 NET INCOME PER SHARE - DILUTED $0.12 $0.04 $0.70 $0.63 Weighted average shares - Basic 16,637,497 15,726,009 16,624,784 15,037,745 Weighted average shares - Diluted 16,731,064 15,988,788 16,751,679 15,315,996

FARO Technologies, Inc.

CONTACT: Keith Bair, Senior Vice President and CFO, FARO Technologies,
Inc., +1-407-333-9911, keith.bair@FARO.com

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

Standard & Poor's, Equifax Team Up For Launch Of Enhanced Small Business Portfolio Evaluator

NEW YORK and ATLANTA, Oct. 29 /PRNewswire-FirstCall/ -- Standard & Poor's and Equifax Inc. announced today at the Small Business Banking Conference that they have joined forces to introduce a new chapter in small business loan analysis with the launch of the newly enhanced Standard & Poor's Small Business Portfolio Evaluator (SBPE). SBPE is an analytical tool that assesses small business loan portfolio risk and also helps package these loans for sale into the capital markets - all through one resource.

(Logo: http://www.newscom.com/cgi-bin/prnh/20060224/CLF037LOGO )

"Incorporating a host of analytical and technical upgrades, the model can lay the foundation for better-informed lending decisions by allowing institutions to identify the risk in their current small business loan portfolio," said David Goldstein, Managing Director at Standard & Poor's. "At the same time, it streamlines the process of analyzing, testing and assembling small business loan pools for sale into the secondary markets."

SBPE is designed to make it easy to obtain a portfolio-level view of small business loan risk. Using each borrower's Equifax Commercial Credit Risk Score, the analytical platform analyzes individual borrower quality as well as geographic, business sector, and other correlations between borrowers to provide an assessment of a portfolio's overall risk. The Equifax Small Business Credit Risk Score is a preferred option for Standard & Poor's in its analysis for rating U.S. small business loans.

"We are delighted to offer with Standard & Poor's a product that helps improve a financial institution's decision-making process," said Michael Shannon, President of Equifax's Commercial Information Solutions. "The combination of Equifax's advance risk scoring solution and Standard & Poor's analytics makes SBPE a powerful risk tool for banks and credit unions that need deeper insights into small business loan risk."

Additionally, financial institutions will be able to perform "what if" analyses to identify the strength of loans in particular portfolios and determine the appropriate action to take on them. The new solution also allows an institution to evaluate the small business loan risk profile of potential acquisitions or merger partners.

SBPE uses a Monte Carlo simulation to determine the default distribution for geographically correlated small business loan pools. It provides a probability distribution of a given portfolio's default rates through the final maturity of the longest loan, helping users to analyze and assemble portfolios.

For more information or to arrange a demonstration of SBPE, please contact John Messina at 212-438-8436 or john_messina@sandp.com.

About Equifax Inc.

Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, Equifax leverages one of the largest sources of consumer and commercial data, along with advanced analytics and proprietary technology, to create customized insights that enrich both the performance of businesses and the lives of consumers.

Customers have trusted Equifax for over 100 years to deliver innovative solutions with the highest integrity and reliability. Businesses--large and small--rely on Equifax for consumer and business credit intelligence, portfolio management, fraud detection, decisioning technology, marketing tools, and much more. Equifax empowers individual consumers to manage their personal credit information, protect their identity, and maximize their financial well-being.

Headquartered in Atlanta, Ga., Equifax Inc. employs approximately 7,000 people in 15 countries throughout North America, Latin America, and Europe. Equifax is a member of Standard & Poor's (S&P) 500(R) Index. Equifax's common stock is traded on the New York Stock Exchange under the symbol EFX.

Standard & Poor's, a division of The McGraw-Hill Companies , is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research, and data. With approximately 8,500 employees, including wholly owned affiliates, located in 23 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com/ .

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20060224/CLF037LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Equifax Inc.

CONTACT: Standard & Poor's: David Goldstein, Managing Director, New
York, +1-212-438-6324, david_goldstein@standardandpoors.com; Standard & Poor's
Media Contact: Adam M Tempkin, New York, +1-212-438-7530,
adam_tempkin@standardandpoors.com; or Equifax Media Contact: Jennifer
Costello, Atlanta, +1-404-885-8907, Jennifer.costello@equifax.com

Web site: http://www.equifax.com/
http://www.standardandpoors.com/

SonicWALL Sees Increased Momentum for Network Security Solutions With Local Governments Across the United StatesCity of Lincoln, City of Napa and The Township of Lyndhurst Deploy SonicWALL Network Security Solutions To Secure Vital Information, Keep Networks Healthy and Running Optimally

SUNNYVALE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- SonicWALL, Inc. , a leading secure network infrastructure company, today announced its continued momentum in providing high-performance, network security solutions to local U.S. governments of all sizes. Multiple SonicWALL solutions have been successfully deployed by the City of Lincoln in Nebraska, City of Napa in California, The Township of Lyndhurst in New Jersey, including the NSA E6500, to the SonicWALL(R) PRO 2040, to the SonicWALL SSL-VPN 4000 as each sought to increase the security and manageability of their IT networks.

"It is rewarding to see the broad range of local governments who select SonicWALL for their secure network infrastructure needs," said Patrick Sweeney, Vice President, SonicWALL. "We continue to see momentum for our Unified Threat Management offerings as customers recognize that keeping their IT networks secure and running at optimal performance levels does not need to be painful, nor an extremely costly endeavor."

City of Lincoln

Housing sensitive public data for the city and the county, the City of Lincoln had to find a secure way to grant access to that data to third-parties such as title companies and real estate organizations. At the same time, City employees seeking to work remotely needed to have access to business critical applications and data without compromising the privacy of such information. The City deployed the SonicWALL SSL-VPN 4000 to protect sensitive public data for both the City and the County could be safely accessed from outside the office. SonicWALL SSL-VPNs provide a single, centrally-managed gateway that enables IT to control access to network resources, as well as provide remote support.

To protect both itself and Lancaster County from malware and other security threats, the City of Lincoln deployed the SonicWALL E-Class NSA E6500 as its primary firewall connection to the Internet. With some 3,000 total users, the solution is utilized for content filtering, anti-virus, intrusion prevention and anti-spyware.

"When we set out to determine how best to setup and secure our network, we recognized that SonicWALL was a brand we could trust," said Jeff Jones, Network Supervisor, City of Lincoln. "The appliance approach to the firewall fit our needs well and we have been impressed with the overall performance, ease of installation and management of the multiple SonicWALL solutions we have deployed to-date."

City of Napa

The City of Napa sought to create a secure network that could be used by its 1,300 - 1,400 users on a daily basis for basic data processing, data access, and Internet access and email services. The secure network would also be utilized for monitoring equipment in remote locations, such as the City's water treatment plants. A key requirement was that the network needed to provide a secure interface between the City and the County of Napa and the Department of Justice, so database queries between criminal justice departments could be processed securely and handled with ease. After a competitive test, the City of Napa selected the SonicWALL E-Class NSA E6500 for its robust intrusion protection and detection capabilities, ease-of-use and general user-friendliness.

"It was important for us to find a high-performance solution that would protect our assets today and well into the future," said Jay Palompo, Systems Administrator, City of Napa. "We needed to deploy a solution that was not only easy to manage, but provided some specific levels of granularity in terms of control and administration. Based on those criteria, we found SonicWALL to be the ideal option."

Lyndhurst Township

The Township of Lyndhurst set out to create a centralized IT network for file sharing and email as it sought to link three physically separate departments with one another. In addition to streamlining processes, the goal was to better provide citizens with access to public information, such as documents discussed during council meetings.

In order to create a centralized and secure network of this sort, the Township of Lyndhurst worked with SonicWALL partner MSI Technologies, LLC to utilize several SonicWALL Unified Threat Management (UTM) appliances -- including the SonicWALL PRO 2040. With integrated gateway anti-virus, anti-spyware and intrusion prevention support, the PRO 2040 is built on a high performance architecture, making it an ideal solution for small to medium size government entities.

"We have been able to streamline the Township of Lyndhurst's operations by moving to a more digital format, which saves time and is a more efficient way of running things," said Joshua Simon, Technical Services Specialist, MSI Technologies, LLC. "The flexibility of the SonicWALL products in such a large environment has allowed us to maintain a central point of control while tailoring the right solution for every department of the town."

For more additional information please visit: http://www.sonicwall.com/. About SonicWALL, Inc.

SonicWALL is committed to improving the performance and productivity of businesses of all sizes by engineering the cost and complexity out of running a secure network. Over one million SonicWALL appliances have been shipped through its global network of ten thousand channel partners to keep tens of millions of worldwide business computer users safe and in control of their data. SonicWALL's award-winning solutions include network security, secure remote access, content security, backup and recovery, and policy and management technology. For more information, visit the company web site at http://www.sonicwall.com/.

Safe Harbor Regarding Forward-Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include but are not limited to statements regarding the benefits of SonicWALL UTM Offerings, and our ability to create secure networks and other high performance 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. In addition, 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, for a more detailed description of the risks facing our business. 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.

CONTACT: Colleen Nichols of SonicWALL, Inc., +1-408-962-6131,
cnichols@sonicwall.com; or Trevor Jonas of Bite Communications,
+1-415-365-0360, trevor.jonas@bitepr.com, for SonicWALL, Inc.

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

Atmel Board of Directors Rejects Unsolicited Proposal From Microchip Technology and ON SemiconductorDetermines Proposal is Inadequate in Multiple Respects, Including Value, Conditionality and ComplexityExpects Continuing Progress on Transformation Plan to Provide Superior Value to Atmel Stockholders

SAN JOSE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Atmel(R) Corporation today announced that, after careful consideration, its Board of Directors has unanimously determined that the October 1, 2008, unsolicited proposal from Microchip Technology Inc. and ON Semiconductor Corporation is inadequate in multiple respects, including value, conditionality and complexity, and is not in the best interests of Atmel's stockholders.

"Atmel's Board has determined that Microchip and ON's highly conditional proposal significantly undervalues Atmel and would deprive Atmel stockholders of the greater value that can be achieved through the continued execution of the Company's transformation plan," said David Sugishita, Chairman of Atmel's Board of Directors.

Steven Laub, Atmel's President and Chief Executive Officer, commented, "Atmel's Board and management are committed to enhancing stockholder value. This commitment has driven the decisive actions we have taken to improve and restructure nearly every aspect of Atmel's operations. These initiatives are well underway and are just beginning to unlock the value inherent in Atmel. Indeed, our outstanding third quarter results announced today demonstrate the clear progress we are making. We will continue to take all appropriate steps, including selling or shutting down those businesses that do not meet our financial or strategic objectives, to ensure that we build on this momentum and realize Atmel's full potential."

Following is the text of the letter that was sent today to Steven Sanghi, Chairman, President and Chief Executive Officer of Microchip Technology, and to Keith Jackson, President and Chief Executive Officer of ON Semiconductor:

Dear Messrs. Sanghi and Jackson: We received your unsolicited, non-binding public proposal dated October 1, 2008, to engage in negotiations for a three-way agreement to acquire Atmel for $5.00 per share in cash, subject to numerous conditions, including the sale of assets, due diligence and financing. After a comprehensive review, and with advice from our outside financial and legal advisors, Atmel's Board of Directors has concluded that your proposal is inadequate in multiple respects -- it significantly undervalues Atmel, is unacceptably conditional and subject to significant execution risk. While we appreciate your recognition of Atmel's superior product and technology portfolio, we believe your proposal is opportunistic and not consistent with the Atmel Board of Directors' objective of maximizing stockholder value. Accordingly, the Board has unanimously rejected your proposal as not in the best interest of Atmel's stockholders. We believe it is important to set the record straight with respect to our discussions with you prior to October 1, 2008. Despite your claims, Microchip never made a proposal to Atmel prior to its October 1 unsolicited proposal. You also falsely stated during your joint investor call that we told you that "the Board of Atmel did not want to do this deal under any circumstances, under any terms, at this time." What we both know really occurred is that Microchip sought confidential and sensitive due diligence information for a possible multi-party transaction without specifying a price or any other terms. Your publicly announced October 1 proposal was the first time Microchip disclosed to us a proposed price, structure, ON Semiconductor's involvement, and the many significant associated conditions, including the financing required by ON. Atmel's Board takes its fiduciary duties seriously. Given the risks, uncertainties and competitive issues of your approach, we believe the interests of Atmel's stockholders, employees and customers will be better served by continuing to pursue our transformation plan that we expect will generate substantially greater stockholder value. Atmel's Board has carefully considered your proposal and has determined that it is inadequate in multiple respects. In arriving at this conclusion, the Board considered that: Atmel is currently implementing an aggressive transformation plan, improving both Atmel's cost structure and product focus. Contrary to your assertions, we are achieving significant success in this regard. -- Non-core manufacturing facilities have been shut down and sold, reducing Atmel's fabs from five to two by the end of 2008. We have divested or shut down 14 non-core product lines, while consolidating or streamlining others. We have also implemented an 18% reduction in the Company's workforce and expect to realize more than $125 million of cost savings in 2008, well in excess of our target of $80 million to $95 million. -- As a result of these and other actions still underway, Atmel is achieving stronger financial performance as evidenced by the 400 basis point improvement in gross margins over the last two quarters alone. -- In addition, our microcontroller business is achieving substantial revenue growth, market share gains and margin expansion. Indeed, our microcontroller growth rate of 21% for the September quarter year-over- year substantially exceeded that of Microchip's at 5.5%. -- We expect that the combination of normalizing currency trends and the continued benefits from our ongoing restructuring will result in further improvement in our operating and financial performance. Your unsolicited proposal is highly opportunistic and delivers neither fair nor full value to Atmel's stockholders. Given our progress and the actions Atmel's Board and management are continuing to take, we are confident that Atmel stockholders will realize greater value through the continued execution of the Company's strategic plan. -- Microchip and ON's proposal is clearly an opportunistic attempt to acquire our leading technology and product portfolio at a time of value compression in the equity markets and just as our progress is becoming more visible in the Company's financial results. -- Simple calculations show that your proposal significantly undervalues the Company. Based on the value that ON has ascribed to Atmel's RF/Auto and non-volatile memory business units, Microchip would be acquiring Atmel's microcontroller business at a substantial discount to its true value, despite accelerating revenue growth, market share gains and margin expansion. As stated in your joint investor call "Atmel has strong momentum in proprietary AVR architecture." -- In your joint investor presentation, you identified "Significant opportunities to drive operational synergies across COGS, SG&A and R&D." However, the proposal fails to provide any value to Atmel stockholders for the substantial synergies that you anticipate achieving. Microchip and ON's complex proposal is highly conditional and subject to significant execution risk. Among other things, the proposed transaction depends on Microchip and ON's ability to agree to terms and close a significant, separate purchase and sale transaction. -- The proposal requires Microchip and ON to reach a definitive agreement on price, as well as a complex separation of Atmel's businesses, which today share a number of significant functions. There is no assurance that such an agreement can be reached. -- The proposal requires Microchip and ON to each receive necessary regulatory clearance for their acquisitions of competing businesses, obtain necessary financing, and meet all other closing conditions before any transaction with Atmel can close. There is no assurance such financing will be received, or that any other conditions of the complex three-way transactions will be met, and if they are, no certainty as to how long they will take. -- The proposal is subject to due diligence by Microchip and ON, and would require Atmel to provide major competitors with access to Atmel's sensitive, confidential information with no assurance that a transaction will be entered into on acceptable terms. Microchip and ON's inadequate and highly conditional proposal provides no basis to grant such access. The proposal requires ON to obtain hundreds of millions of dollars of new financing at a time when the credit markets are essentially closed. -- You claimed in your letter and joint investor call that ON would finance part of its purchase of Atmel's non-volatile memory and RF and Automotive businesses through "borrowing of approximately $260 million under ON Semiconductor's existing credit facility." Our review indicates that ON has no such commitment under its existing credit facility to provide additional financing. ON's existing facility merely allows ON to seek to raise a new and separate $260 million facility. ON has acknowledged that it will need financing even beyond that, which may require refinancing the existing credit facility. This lack of any financing commitment, together with your misstatements regarding the same, are of particular concern given the current uncertain economic and credit environment. In closing, we believe your stated confidence in your proposal is very much misplaced. We share your excitement about Atmel's leading product and technology portfolio and our talented employee base. Based on these strengths, the solid plan we have in place and the actions we are continuing to take to fully unlock the value of the Company, we believe your opportunistic proposal significantly undervalues Atmel and would deprive Atmel stockholders of the greater value that can be achieved through the continued execution of the Company's transformation plan. Sincerely, /s/ Steven Laub Steven Laub President and Chief Executive Officer

Morgan Stanley and Credit Suisse are serving as financial advisors, and Wachtell, Lipton Rosen & Katz is serving as legal counsel to Atmel.

About Atmel

Atmel is a worldwide leader in the design and manufacture of microcontrollers, advanced logic, mixed-signal, non-volatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel provides the electronics industry with complete system solutions focused on consumer, industrial, security, communications, computing and automotive markets.

Safe Harbor for Forward-Looking Statements

Information in this release regarding Atmel's forecasts, outlook, expectations and beliefs are forward-looking statements that involve risks and uncertainties. These statements include statements about new product introductions, markets for our products and market share gains, restructuring initiatives, manufacturing optimization, cost savings, strategies and future operating and financial performance. All forward-looking statements included in this release are based upon information available to Atmel as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or Company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets and the impact of foreign exchange rates, the inability to realize the anticipated benefits of our recent strategic transactions, restructuring plans and other initiatives in a timely manner or at all, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, the market price of our common stock, unfavorable results of legal proceedings, impact of Microchip's and ON Semiconductor's unsolicited acquisition proposal, and the Company's response thereto, and other risks detailed from time to time in Atmel's SEC reports and filings, including our Form 10-K for the year ended December 31, 2007, filed on February 29, 2008, and our subsequent Form 10-Q reports.

Investor Contact: Media Contact: Robert Pursel Barrett Golden / Sharon Stern Director of Investor Relations Joele Frank, Wilkinson Brimmer Katcher 408-487-2677 212-355-4449

Atmel Corporation

CONTACT: investors, Robert Pursel, Director of Investor Relations of
Atmel Corporation, +1-408-487-2677; or media, Barrett Golden or Sharon Stern,
both of Joele Frank, Wilkinson Brimmer Katcher, +1-212-355-4449, both for
Atmel Corporation

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

Media Sciences Announces First Quarter FY2009 Annual Earnings Conference Call

OAKLAND, N.J., Oct. 29 /PRNewswire-FirstCall/ -- Media Sciences International, Inc. , the leading independent manufacturer of solid ink and color toner cartridges for business color printers, will hold a conference call to discuss its first quarter fiscal 2009 results on Friday, November 14th, 2008, at 8:45 a.m. Eastern Time. The first quarter fiscal 2009 earnings release is expected to be issued after market close on Thursday, November 13th, 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020604/NYTU016LOGO )

The call will be webcast live by Thomson/CCBN and may be accessed through Media Sciences' web site at http://www.mediasciences.com/. Investors and other interested parties in the United States may access the teleconference by calling 866.543.6403. International callers may dial 617.213.8896. The passcode for the teleconference is 99773951.

Media Sciences International, Inc. , the leading independent manufacturer of solid ink and color toner cartridges for office color printers, has a strong reputation for being the informed customer's choice. As the premium quality price alternative to the printer manufacturer's brand, Media Sciences' newly manufactured color toner and solid ink products for use in Dell(R), Samsung(R), Xerox(R), Tektronix(R), OKI(R), Ricoh(R), Konica Minolta(R), Epson(R), and Brother(R) office color printers deliver up to and over 30% in savings when compared to the printer manufacturer's brand. Behind every Media Sciences product is The Science of Color(R)-the company's proprietary process for delivering high quality products at the very best price, including its commitment to exceptional, highly responsive technical support and its longstanding, industry-leading warranty. With the Company's groundbreaking INKlusive(TM) FREE Color Printer Program (http://www.inklusive.com/), printer users buy the supplies, and get the printer for free. For more information on the Company, its products, and its programs, visit http://www.mediasciences.com/, E-mail info@mediasciences.com, or call 201.677.9311.

Brand names are used for descriptive purposes only and are the properties of their respective owners.

Photo: http://www.newscom.com/cgi-bin/prnh/20020604/NYTU016LOGO Media Sciences International, Inc.

CONTACT: Investors, Kevan D. Bloomgren, Chief Financial Officer, Media
Sciences, +1-201-677-9311 ext. 213, kbloomgren@mediasciences.com; Media, Bill
Besold, Marketing Communications Director, Media Sciences, +1-201-677-9311
ext. 299, bbesold@mediasciences.com

Web Site: http://www.inklusive.com/
http://www.mediasciences.com/

eOn Communications Reports Fourth Quarter and Year End Financial Results

SAN JOSE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- eOn Communications Corporation(TM) , a leading provider of telecommunications solutions, today reported fourth quarter and fiscal year 2008 results.

Net loss for the fiscal year ended July 31, 2008 was $3,452,000 or $1.27 per common share, compared to net loss of $1,330,000 or $0.49 per common share for the fiscal year ended July 31, 2007. Loss from continuing operations was $2,861,000 or $1.05 per common share compared to loss from continuing operations of $1,009,000 or $0.37 per common share in the fiscal year ended July 31, 2007. The loss for this year included $408,000 from the closure of India operations and associated severance costs. Net losses from discontinued operations related to the IP hosting business were $591,000 and $321,000 for the fiscal years ended July 31, 2008 and July 31, 2007, respectively. Revenues from continuing operations were $6,994,000 (including related party revenue of $348,000), a decrease of 34% compared with $10,625,000 (including related party revenue of $586,000) for the previous fiscal year.

Net loss for the quarter ended July 31, 2008 was $338,000 or $0.12 per common share, compared to net loss of $375,000 or $0.14 per common share in the quarter ended July 31, 2007. The fourth quarter loss for the prior year included a $194,000 loss related to the discontinued IP hosting business and $76,000 for stock-based compensation expense. Revenues for the quarter were $1,604,000 (including related party revenue of $5,000), a decrease of 44% compared to $2,876,000 (including related party revenue of $223,000) for the quarter ended July 31, 2007.

Cash and cash equivalents and short-term marketable securities as of July 31, 2008 decreased 55% to $2,545,000 from $5,656,000 as of July 31, 2007 primarily as a result of funding operating losses for the year and the $900,000 investment in the Symbio Group, partially offset by the $300,000 sale of the Spark investment to David Lee.

"We are continuing restructuring to improve the Company's performance and return us to profitability," stated David Lee, eOn's chairman and chief executive officer.

About eOn Communications(TM)

eOn Communications Corporation(TM) is a global provider of innovative communications solutions. Backed by over 20 years of telecommunications engineering expertise, our solutions enable our customers to easily leverage advanced technologies in order to communicate more effectively. To find out more information about eOn Communications and its solutions, visit the World Wide Web at http://www.eoncommunications.com/, or call 800-955-5321.

Note:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including technical and competitive factors, which could cause the Company's results and the timing of certain events to differ materially from those discussed in the forward-looking statements. Such risks are detailed in eOn Communications Corporation's most recent Form 10-Q filing with the Securities and Exchange Commission.

eOn Communications Corporation, the mark eOn, and eQueue are trademarks of eOn Communications Corporation.

eOn Communications Corporation Condensed Consolidated Statements of Operations (Dollars in thousands, except per share data) For the Years Ended July 31, 2008 2007 REVENUE Third party revenue $6,646 $10,039 Related party revenue 348 586 Net revenue 6,994 10,625 COST OF REVENUE Third party cost of revenue 2,832 4,043 Related party cost of revenue 323 489 Cost of revenue 3,155 4,532 Gross profit 3,839 6,093 OPERATING EXPENSE Selling, general and administrative 3,893 4,491 Research and development 2,641 2,872 Other expense, net 283 11 Total operating expense 6,817 7,374 Loss from continuing operations (2,978) (1,281) Interest income 117 272 Loss from continuing operations before income taxes (2,861) (1,009) Income tax expense - - Loss from continuing operations after income taxes (2,861) (1,009) DISCONTINUED OPERATIONS Loss from discontinued operations (604) (321) Gain on disposal of discontinued operations, net of tax of $0 13 - Loss from discontinued operations (591) (321) Net loss $(3,452) $(1,330) COMPREHENSIVE LOSS Net loss $(3,452) $(1,330) Foreign currency translation adjustment 105 - Comprehensive loss $(3,347) $(1,330) Weighted average shares outstanding Basic and diluted 2,725 2,712 Basic and diluted loss per share: From continuing operations $(1.05) $(0.37) From discontinued operations, net of tax (0.22) (0.12) Basic and diluted loss per share $(1.27) $(0.49) eOn Communications Corporation Condensed Consolidated Balance Sheets (Dollars in thousands, except share and per share amounts) As of July 31, 2008 2007 ASSETS Current assets: Cash and cash equivalents $1,545 $2,256 Marketable securities 1,000 3,400 Trade accounts receivable, net of allowance of $680 and $694, respectively 932 1,781 Trade accounts receivable - related party 84 117 Inventories 2,501 2,348 Prepaid and other current assets 177 118 Current assets of discontinued operations - 119 Total current assets 6,239 10,139 Property and equipment, net 176 298 Intangibles, net 251 334 Investments 900 300 Other non-current assets 88 - Non-current assets of discontinued operations - 135 Total assets $7,654 $11,206 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable $214 $432 Trade accounts payable - related party 126 337 Note payable 138 - Accrued expenses and other 1,145 1,205 Current liabilities of discontinued operations - 16 Total current liabilities 1,623 1,990 Commitments and contingencies Stockholders' equity: Preferred stock, $0.001 par value, (10,000,000 shares authorized, no shares issued and outstanding) - - Common stock, $0.005 par value (10,000,000 shares authorized, 2,869,608 and 2,849,629 shares issued, respectively) 14 14 Additional paid-in capital 55,931 55,769 Treasury stock, at cost (135,380 shares) (1,502) (1,502) Accumulated deficit (48,517) (45,065) Accumulated other comprehensive income 105 - Total stockholders' equity 6,031 9,216 Total liabilities and stockholders' equity $7,654 $11,206

Photo: http://www.newscom.com/cgi-bin/prnh/20010517/EONLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com eOn Communications Corporation

CONTACT: eOn Communications Investor Relations, +1-800-955-5321,
investorrelations@eoncc.com

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

PokerTek Reports Third Quarter 2008 Financial Results; Q3 Revenues Climb Nearly 300%; Bottom Line Improves 57%

MATTHEWS, N.C., Oct. 29 /PRNewswire-FirstCall/ -- PokerTek, Inc. today reported financial results for the third quarter ended September 30, 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080828/CLTH082LOGO ) Third Quarter and Year-to Date 2008 Operating Highlights -- Revenues increased 299% for the quarter and 339% year-to-date -- Operating expenses declined $1.1 million from the third quarter of 2007 -- Net Loss improved 57% for the quarter and 39% year-to-date -- EBITDAS, a non-GAAP financial measure improved 85% for the quarter and 67% year-to-date -- Earnings Per Share improved 57% for the quarter and 42% year-to-date -- Sold 331 Heads Up Challenge units for the quarter and 871 year-to-date -- PokerPro table count increased to 272 from 131 at September 30, 2007. Recent Announcements and Events -- Entered regulatory field trials and opened automated poker rooms using PokerPro at: -- The Excalibur Hotel & Casino in Nevada -- Horseshoe Casino Chicagoland in Indiana -- French Lick Resort Casino in Indiana -- Ameristar Casino Council Bluffs in Iowa -- Secured seven Certified Australian Innovation Patents -- Settled patent infringement lawsuit -- Entered into a credit facility with Silicon Valley Bank Revenue

Consolidated revenues for the third quarter of 2008 were $4.3 million, an increase of 299% from the comparable period of 2007, and an increase of 12% sequentially when compared to the second quarter of 2008. For the first nine months of 2008, consolidated revenues were $11.3 million, an increase of 339% from the comparable period of 2007. Revenue growth was driven by strong performance in both the casino and amusement product lines.

Revenue from recurring license and service fees from PokerPro systems totaled $1.5 million for the third quarter, an increase of 145% from the third quarter of 2007. For the first nine months of 2008, recurring revenues were $4.5 million, an increase of 158% from the comparable period of 2007. This growth from prior year periods was primarily driven by growth in the number of PokerPro systems deployed in casinos in the United States, Canada and on cruise ships.

Product sales totaled $2.8 million for the third quarter, an increase of 509% from the third quarter of 2007. For the first nine months of 2008, product sales were $6.9 million, an increase of 706% from the comparable period of 2007.

The growth in product sales was directly attributable to the successful launch of Heads-Up Challenge and increased international sales of casino products. Sales of Heads-Up Challenge contributed $1.5 million for the third quarter and $3.9 million for the first nine months of 2008. Sales of casino products, primarily to Aristocrat International Pty., PokerTek's international distributor, grew 196% to $1.3 million on a quarterly basis and 258% to $3.0 million for the first nine months of 2008 on strong European demand.

Operating Expenses

Consolidated operating expenses, including non-cash depreciation and share-based compensation, were $3.8 million for the quarter ended September 30, 2008, a decrease of $1.1 million, or 23% from the third quarter of 2007. For the first nine months, operating expenses were $11.9 million, essentially flat when compared to the first nine months of 2007.

As a percent of total revenue, operating expenses improved to 89% of revenue for the third quarter of 2008, as compared to 461% in the third quarter of 2007. Improvements in operating expenses were directly attributable to the rapid growth in casino and amusement revenues combined with management initiatives to reduce operating expenses.

Operating Results

Net loss per common share was $(0.16) for the third quarter and $(0.53) for the first nine months of 2008, an improvement of 57% from the third quarter of 2007 and 42% from the first nine months of 2007.

EBITDAS, a non-GAAP financial measure, was $(0.5) million for the third quarter and $(2.6) million for the first nine months of 2008. EBITDAS improved 85% from $(3.5) million from the third quarter of 2007 and 67% from $(8.0) million from the first nine months of 2007.

Management Comments

"We're pleased with our third quarter results," said Chris Halligan, PokerTek's CEO. "This is a challenging business environment to say the least; however we continued to grow our revenues, manage our costs and achieve several major milestones during the quarter. We are particularly proud of our field trial installation at the Excalibur Hotel and Casino in Las Vegas, Nevada where we've installed 12 tables. As the industry leader in automated poker, we are optimistic about the future."

Mark Roberson, PokerTek's CFO, added "In addition to delivering significant revenue growth and expense reductions, we're also pleased to have settled our litigation with Lightning Gaming, Inc. The settlement was achieved without any material impact on the Company's financial position and we are now able to fully focus our attention and resources on managing the business."

Conference Call

PokerTek will host a conference call to discuss its third quarter 2008 results on Wednesday October 29, 2008 at 5:00 p.m. Eastern Daylight Time. Interested parties may listen to and participate in the conference call by dialing (888) 713-4213 (U.S./Canada) or (617) 213-4865 (Other) and entering passcode 73880620. The conference call will be webcast simultaneously through a link on our website, http://www.pokertek.com/, under the heading "Investors," as well as at http://www.earnings.com/ and http://www.streetevents.com/. A replay of the conference call will be available approximately two hours after the conclusion of the call for approximately 24 hours by dialing (888) 286-8010 (U.S./Canada) or (617) 801-6888 (Other) and entering passcode 42514975. A replay of the conference call will also be made available for one year on our website, http://www.pokertek.com/, under the heading "Investors."

Use of Non-GAAP Measures

PokerTek, Inc. prepares its consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP"). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding EBITDAS, which differs from the term EBITDA as it is commonly used. In addition to adjusting net loss to exclude income taxes, interest expense, and depreciation and amortization, EBITDAS also excludes noncash charges and share-based compensation expense. EBITDA and EBITDAS are not measures of performance defined in accordance with GAAP. However, EBITDAS is used internally by PokerTek's management to make strategic decisions, including evaluating the company's operating performance and for making spending decisions. Accordingly, management believes that disclosure of this metric offers investors, lenders and other stakeholders with an additional view of the Company's operations that, when coupled with the GAAP results, provides a more complete understanding of the Company's results of operations. 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 PokerTek's underlying performance.

EBITDAS should not be considered as an alternative to net loss or to net cash used in operating activities as a measure of operating results or of liquidity. It may not be comparable to similarly titled measures used by other companies, and it excludes financial information that some may consider important in evaluating the Company's performance. A reconciliation GAAP net loss to EBITDAS is included in the accompanying financial schedules.

About PokerTek, Inc.

PokerTek, Inc. , headquartered in Matthews, NC, develops and markets products for the casino and amusement industries. PokerTek developed PokerPro(R) automated poker tables and related software applications to increase casino revenue, reduce expenses, and attract new players into poker rooms by offering interactive poker that is fast, fun and mistake-free. Heads-Up Challenge(TM) is a two-player table that allows bar and restaurant patrons to compete head-to-head in various games for amusement purposes. Heads-Up Challenge increases earnings for game operators and provides patrons unique and challenging on-site entertainment. Both products are installed worldwide.

For more information, please visit the company's website at http://www.pokertek.com/ or contact Mark Roberson at 704.849.0860 x101.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are made in accordance with the Private Securities Litigation Reform Act of 1995. The forward-looking statements herein include, but are not limited to, the expected adoption of the PokerPro systems by casinos and other customers and the expected acceptance of the PokerPro systems by players. Our actual results may differ materially from those implied in these forward-looking statements as a result of many factors, including, but not limited to, overall industry environment, customer acceptance of our products, delay in the introduction of new products, further approvals of regulatory authorities, adverse court rulings, production and/or quality control problems, the denial, suspension or revocation of permits or licenses by regulatory or governmental authorities, termination or non-renewal of customer contracts, amendment or termination of our loans with Silicon Valley Bank, competitive pressures, general economic and political conditions, such as political instability, credit market uncertainty, inflationary pressures from higher energy and fuel costs and the rate of economic growth or decline in our principal geographic markets, each of which may be amplified by recent disruptions in the U.S. and global financial markets, the possible effect of anti-dilution provisions in our outstanding warrants, and our financial condition. These and other risks and uncertainties are described in more detail in our most recent annual report on Form 10-K and other reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. We undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by applicable laws, and you are urged to review and consider disclosures that we make in the reports that we file with the Securities and Exchange Commission that discuss other factors germane to our business.

POKERTEK, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Revenues: License and service fees $1,521,341 $621,413 $4,463,280 $1,731,515 Product sales 2,772,144 455,439 6,871,791 852,609 ---------- ---------- ---------- ---------- Total revenues 4,293,485 1,076,852 11,335,071 2,584,124 ---------- ---------- ---------- ---------- Costs and operating expenses: Cost of product sales 2,088,570 379,715 5,042,443 697,167 Selling, general and administrative 2,388,991 3,257,939 7,424,299 7,181,482 Research and development 716,363 1,144,586 2,435,596 3,274,665 Depreciation 726,870 563,477 2,053,433 1,396,728 ---------- ---------- ---------- ---------- Total costs and operating expenses 5,920,794 5,345,717 16,955,771 12,550,042 ---------- ---------- ---------- ---------- Operating loss (1,627,309) (4,268,865) (5,620,700) (9,965,918) Interest income (expense), net (50,576) 178,909 (24,078) 438,163 ---------- ---------- ---------- ---------- Net loss before income taxes (1,677,885) (4,089,956) (5,644,778) (9,527,755) Income tax provision (75,150) - (198,623) - ---------- ---------- ---------- ---------- Net loss $(1,753,035) $(4,089,956) $(5,843,401) $(9,527,755) ========== ========== ========== ========== Net loss per common share - basic and diluted $(0.16) $(0.37) $(0.53) $(0.92) Weighted average common shares outstanding - basic and diluted 10,934,464 10,920,257 10,934,464 10,304,001 POKERTEK, INC. CONSOLIDATED BALANCE SHEETS September 30, Assets 2008 (unaudited) December 31, 2007 Current assets: Cash and cash equivalents $2,534,767 $1,229,980 Short-term investments - 5,950,000 Accounts receivable, net 2,015,634 968,536 Inventory 3,156,898 2,642,481 Prepaid expenses and other assets 261,924 331,199 ---------- ---------- Total current assets 7,969,223 11,122,196 ---------- ---------- Other assets: PokerPro systems, net 4,188,076 4,991,634 Property and equipment, net 625,943 605,046 Long-term investments 3,580,975 - Other assets 553,413 377,029 ---------- ---------- Total assets $16,917,630 $17,095,905 ========== ========== Liabilities and Shareholders' Equity Current liabilities: Accounts payable $1,756,302 $1,465,202 Accrued liabilities 1,272,046 964,173 Short-term debt 2,463,143 - ---------- ---------- Total current liabilities 5,491,491 2,429,375 ---------- ---------- Long-term debt 2,029,850 - Commitments and contingencies Shareholders' equity: Preferred stock, no par value per share; authorized 5,000,000, none issued and outstanding - - Common stock, no par value per share; authorized 100,000,000 shares, issued and outstanding 10,934,464 shares at September 30, 2008 and December 31, 2007 - - Additional paid-in capital 42,245,405 41,353,220 Accumulated deficit (32,530,091) (26,686,690) Accumulated other comprehensive loss (319,025) - ---------- ---------- Total shareholders' equity 9,396,289 14,666,530 ---------- ---------- Total liabilities and shareholders' equity $16,917,630 $17,095,905 ========== ========== POKERTEK, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Nine Months Ended September 30, 2008 2007 Cash flows from operating activities: Net loss $(5,843,401) $(9,527,755) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 2,053,433 1,396,728 Share-based compensation expense 892,185 588,036 Provision for accounts and other receivables 11,485 47,129 Changes in assets and liabilities: Accounts and other receivables (1,058,583) (280,232) Prepaid expenses and other assets (107,109) (6,891) Inventory (514,417) (236,317) PokerPro systems (1,099,155) (2,920,870) Accounts payable and accrued expenses 598,972 433,541 ---------- ---------- Net cash used in operating activities (5,066,590) (10,506,631) ---------- ---------- Cash flows from investing activities: Purchases of property and equipment (119,583) (321,607) Sale of investments 2,050,000 23,850,000 Purchase of investments - (25,200,000) ---------- ---------- Net cash provided by (used in) investing activities 1,930,417 (1,671,607) ---------- ---------- Cash flows from financing activities: Proceeds from long-term debt 2,000,000 - Proceeds from short-term debt 2,620,086 - Repayments of short-term debt (173,641) Proceeds from issuance of common stock, net of expenses - 12,512,261 Proceeds from common stock options exercised - 65,271 Repayments of capital lease (5,485) - ---------- ---------- Net cash provided by financing activities 4,440,960 12,577,532 ---------- ---------- Net increase in cash and cash equivalents 1,304,787 399,294 Cash and cash equivalents, beginning of period 1,229,980 1,803,501 ---------- ---------- Cash and cash equivalents, end of period $2,534,767 $2,202,795 ========== ========== Supplemental Disclosure of Cash Flow Information Cash paid for: Interest $194,811 $2,811 Income taxes 178,055 - Non-cash transaction: Capital lease obligation $52,034 $- POKERTEK, INC. Reconciliation of EBITDAS to Net Loss (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Net loss, as reported $(1,753,035) $(4,089,956) $(5,843,401) $(9,527,755) Interest income (expense), net 50,576 (178,909) 24,078 (438,163) Income tax provision 75,150 - 198,623 - Other taxes 3,132 5,292 43,198 22,613 Depreciation 726,870 563,477 2,053,433 1,396,728 Stock-based compensation expense 368,553 224,955 892,185 588,036 ---------- ---------- ---------- ---------- EBITDAS(1) $(528,754) $(3,475,141) $(2,631,884) $(7,958,541) ========== ========== ========== ========== (1) EBITDAS is defined as net loss before interest, taxes, depreciation, amortization, share-based compensation, and non-cash charges. EBITDAS does not purport to represent net earnings or net cash used in operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as an alternative to such measurements or as indicators of the Company's performance. The Company's definition of EBITDAS may not be comparable with similarly titled measures used by other companies.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20080828/CLTH082LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com PokerTek, Inc.

CONTACT: Mark Roberson of PokerTek, Inc., +1-704-849-0860 x101

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

Sauer-Danfoss Inc. Reports Third Quarter 2008 Results- Record Quarter Earnings Increase 98% on Record Sales- Turbulent Market Economies Drive Cautious Earnings Outlook

CHICAGO, Oct. 29 /PRNewswire-FirstCall/ -- Sauer-Danfoss Inc. today announced its financial results for the third quarter ended September 30, 2008.

Net sales for the third quarter rose 8 percent to $490.2 million, compared with net sales of $451.8 million for the third quarter of 2007. Excluding the impact of currency translation rate changes and divestitures, sales in the third quarter grew 3 percent over the same quarter last year. The Company reported net income of $10.9 million, or $0.22 per share, for the third quarter, compared to net income of $5.5 million, or $0.11 per share for third quarter of 2007.

The Company's sales for the third quarter increased 13 percent in the Asia-Pacific region and 6 percent in the Americas while declining 2 percent in Europe, excluding the impact of currency and divestitures. Sales in the Propel segment increased 5 percent, sales in the Work Function segment increased 3 percent, while sales in the Controls segment declined 2 percent excluding currency and divestitures.

David Anderson, President and Chief Executive Officer, commented, "Notwithstanding the overall economic environment, we still achieved continuous growth in our third quarter. We posted record sales and doubled earnings for the quarter versus the prior year period. Asia-Pacific and the Americas' growth continued, but at a less robust rate while European sales for the quarter were slightly lower than last year's third quarter. Despite the current economic climate, we're realizing the positive effect of the initiatives we have taken over the past few years through improved operating margins."

Nine Months Review

Sauer-Danfoss had net sales of $1,719.1 million for the nine months ended September 30, 2008, an increase of 16 percent, compared to net sales of $1,478.4 million for the first nine months of 2007. Net sales for the first nine months of 2008, excluding currency translation rate changes and divestitures, rose 9 percent over the prior year period.

Net income for the first nine months of 2008 totaled $61.5 million, or $1.27 per share, compared to net income of $38.5 million, or $0.80 per share, for the same period last year. The Company had a one-time gain on the sale of real estate in the first nine months of 2008 of $1.4 million, or $0.02 per share, compared to restructuring costs for the first nine months of 2007 of $17.8 million, or $0.31 per share.

New Orders Decline

The Company received new orders of $397.9 million for the third quarter of 2008, a decrease of 18 percent from the end of third quarter 2007. Excluding currency translation rate changes, orders were down 22 percent.

Total backlog at September 30, 2008 was $929.5 million, a 23 percent increase from the same period last year. Excluding currency translation rate changes, backlog increased 20 percent.

Anderson added, "The increase in backlog, although still healthy, is down from the increase posted a quarter ago which is a reflection of a slowing demand in a number of our markets."

Continued Strong Cash Flow

Sauer-Danfoss' cash flow from operations for the first nine months of 2008 was $141.2 million, compared to $99.0 million for the first nine months of 2007. Capital expenditures were $129.5 million for the first nine months of 2008, compared to $83.0 million for the same period last year. These expenditures are in line with the Company's planned capacity increases for 2008. The Company's debt to total capital ratio, or leverage ratio, was 42 percent at September 30, 2008, compared to 43 percent at December 31, 2007.

Anderson stated, "As we continued to invest in expanding our capacity, we also continued to generate significant operational cash flow as reflected in the improvement in our leverage ratio. This additional capacity will support both current and future demand which we expect to be generated from our ability to continuously win new applications and provide more content on highly engineered vehicles which will come on line in the coming years."

Current Market/Economic Conditions

Anderson commented, "We obviously are watching the evolving events in the global credit markets and economies with concern. Our markets and customers are affected which will ultimately impact us as well. We suspect that the total backlog figures reported at the end of September are not yet fully reflecting this impact. Our management team has been taking steps to adjust our production plans to future demand, reducing our costs, and developing contingency plans." Anderson continued, "Our plant and product line restructurings, along with better information from the business system implemented over the last few years, should serve us well as we move through these uncertain times."

Outlook More Cautious

"Based on the turbulence in the world economies and resulting slow down from our recent growth patterns combined with the impact on our product mix, we are taking a more cautious position regarding the outlook for the remainder of this year. We have adjusted the expectation for our full year performance by about 25 percent from our previous forecast, now expecting earnings to be in the range of $1.15 to $1.25 per share based on nominal annual sales growth of 8 to 9 percent. We still expect capital expenditures to be 7 to 8 percent of sales," concluded Anderson.

Webcast Information

Members of Sauer-Danfoss' management team will host a Webcast on October 30 at 10 AM Eastern Time to discuss 2008 third quarter results. The call is open to all interested parties on listen-only mode via an audio webcast and can be accessed through the Investor Relations page of the Company's website at http://ir.sauer-danfoss.com/. A replay of the call will be available at that site through November 13, 2008.

About Sauer-Danfoss

Sauer-Danfoss Inc. is a worldwide leader in the design, manufacture, and sale of engineered hydraulic, electric and electronic systems and components, for use primarily in applications of mobile equipment. Sauer-Danfoss, with 9,800 employees worldwide and revenue of approximately $2.0 billion, has sales, manufacturing, and engineering capabilities in Europe, the Americas, and the Asia-Pacific region. The Company's executive offices are located near Chicago in Lincolnshire, Illinois. More details online at http://www.sauer-danfoss.com/.

This press release contains certain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. All statements regarding future performance, growth, sales and earnings projections, conditions or developments are forward-looking statements. Words such as "anticipates," "in the opinion," "believes," "intends," "expects," "may," "will," "should," "could," "plans," "forecasts," "estimates," "predicts," "projects," "potential," "continue," and similar expressions may be intended to identify forward-looking statements.

Actual future results may differ materially from those described in the forward-looking statements due to a variety of factors. Readers should bear in mind that past experience may not be a good guide to anticipating actual future results. The economy in the U.S. is suffering from the shockwaves of the worldwide credit crisis, continued weakness in the housing and residential construction markets, growing weakness in the commercial and public-sector construction markets, and uncertainty surrounding job creation, interest rates, and crude oil prices. The economies in Europe and Asia-Pacific are also suffering from the uncertainties surrounding the worldwide credit crisis, and declining construction, road building and material handling markets. Any downturn in the Company's business segments could adversely affect the Company's revenues and results of operations. Other factors affecting forward-looking statements include, but are not limited to, the following: specific economic conditions in the agriculture, construction, road building, turf care, material handling and specialty vehicle markets and the impact of such conditions on the Company's customers in such markets; the cyclical nature of some of the Company's businesses; the ability of the Company to win new programs and maintain existing programs with its original equipment manufacturer (OEM) customers; the highly competitive nature of the markets for the Company's products as well as pricing pressures that may result from such competitive conditions; the continued operation and viability of the Company's significant customers; the Company's execution of internal performance plans; difficulties or delays in manufacturing; cost-reduction and productivity efforts; competing technologies and difficulties entering new markets, both domestic and foreign; changes in the Company's product mix; future levels of indebtedness and capital spending; claims, including, without limitation, warranty claims, field retrofit claims, product liability claims, charges or dispute resolutions; ability of suppliers to provide materials as needed and the Company's ability to recover any price increases for materials in product pricing; the Company's ability to attract and retain key technical and other personnel; labor relations; the failure of customers to make timely payment; any inadequacy of the Company's intellectual property protection or the potential for third-party claims of infringement; global economic factors, including currency exchange rates; the sub-prime credit market crisis, credit market disruptions, and significant changes in capital market liquidity and funding costs affecting the Company and its customers; general economic conditions, including interest rates, the rate of inflation, and commercial and consumer confidence; energy prices; the impact of new or changed tax and other legislation and regulations in jurisdictions in which the Company and its affiliates operate; actions by the U.S. Federal Reserve Board and the central banks of other nations; actions by other regulatory agencies, including those taken in response to the global credit crisis; actions by rating agencies; changes in accounting standards; worldwide political stability; the effects of terrorist activities and resulting political or economic instability; natural catastrophes; U.S. military action overseas; and the effect of acquisitions, divestitures, restructurings, product withdrawals, and other unusual events.

The Company cautions the reader that these lists of cautionary statements and risk factors may not be exhaustive. The Company expressly disclaims any obligation or undertaking to release publicly any updates or changes to these forward-looking statements that may be made to reflect any future events or circumstances. The foregoing risks and uncertainties are further described in Item 1A (Risk Factors) in the Company's latest annual report on Form 10-K filed with the SEC, which should be reviewed in considering the forward-looking statements contained in this press release.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands except Three Months Ended Nine Months Ended per share data) September September September September 30, 2008 30, 2007 30, 2008 30, 2007 Net sales 490,188 451,771 1,719,125 1,478,376 Cost of sales 378,322 357,550 1,321,528 1,147,275 Gross profit 111,866 94,221 397,597 331,101 Research and development 21,841 16,492 62,183 50,538 Selling, general and administrative 64,571 54,845 202,827 176,591 Net (gain)/loss on disposal of fixed assets 123 81 (685) 531 Loss on sale of business -- 662 -- 8,702 Total operating expenses 86,535 72,080 264,325 236,362 Income from operations 25,331 22,141 133,272 94,739 Nonoperating income (expenses): Interest expense, net (6,301) (5,600) (19,310) (16,720) Minority interest in income of consolidated companies (1,503) (869) (15,910) (15,512) Other, net 140 (2,029) (3,729) (3,449) Income before income taxes 17,667 13,643 94,323 59,058 Income taxes (6,766) (8,144) (32,855) (20,557) Net income 10,901 5,499 61,468 38,501 Net income per share: Basic net income per common share 0.23 0.11 1.27 0.80 Diluted net income per common share 0.22 0.11 1.27 0.80 Weighted average shares outstanding Basic 48,236 48,099 48,223 48,093 Diluted 48,571 48,275 48,547 48,271 Cash dividends declared per common share 0.18 0.18 0.54 0.54 BUSINESS SEGMENT INFORMATION Three Months Ended Nine Months Ended September September September September 30, 2008 30, 2007 30, 2008 30, 2007 (Dollars in thousands) Net sales Propel 228,809 207,637 833,645 707,366 Work Function 137,039 124,479 460,407 399,343 Controls 124,340 119,655 425,073 371,667 Total 490,188 451,771 1,719,125 1,478,376 Segment Income (Loss) Propel 31,803 24,530 148,610 111,237 Work Function 1,574 880 6,282 2,254 Controls 4,319 6,837 15,827 16,737 Global Services and Other Expenses, net (12,225) (12,135) (41,176) (38,938) Total 25,471 20,112 129,543 91,290 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended September 30, September 30, 2008 2007 (Dollars in thousands) Cash flows from operating activities: Net income 61,468 38,501 Depreciation and amortization 86,313 75,193 15,910 15,512 (19,680) (44,026) Other, net (2,845) 13,822 Net cash provided by operating activities 141,166 99,002 Cash flows from investing activities: Purchases of property, plant and Equipment (129,549) (83,036) Proceeds from sale of property, plant and equipment 5,640 5,111 Proceeds from sale of businesses -- 7,006 Net cash used in investing activities (123,909) (70,919) Cash flows from financing activities: Net borrowings on notes payable and debt instruments 16,678 5,745 Cash dividends (26,039) (24,968) Distribution to minority interest partners (7,161) (7,987) Net cash used in financing activities (16,522) (27,210) Effect of exchange rate changes 327 750 Net increase in cash and cash equivalents 1,062 1,623 Cash and cash equivalents at beginning of year 26,789 29,112 Cash and cash equivalents at end of period 27,851 30,735 CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2008 2007 (Dollars in thousands) Assets Current assets: Cash and cash equivalents 27,851 26,789 Accounts receivable, net 309,001 318,152 Inventories 333,919 318,836 Other current assets 63,948 56,365 Total current assets 734,719 720,142 Property, plant and equipment, net 620,447 562,818 Other assets 215,805 217,462 Total assets 1,570,971 1,500,422 Liabilities and stockholders' equity Current liabilities: Notes payable and bank overdrafts 55,323 59,415 Long-term debt due within one year 237,141 208,819 Accounts payable 148,461 168,015 Other accrued liabilities 162,400 128,358 Total current liabilities 603,325 564,607 Long-term debt 168,385 175,811 Long-term pension liability 53,657 70,777 Deferred income taxes 34,930 40,930 Other liabilities 63,126 62,253 Minority interest in net assets of consolidated companies 70,914 60,544 Stockholders' equity 576,634 525,500 Total liabilities and stockholders' equity 1,570,971 1,500,422 Number of employees at end of period 9,901 9,756 Debt to total capital ratio (1) 42% 43% (1) The debt to total capital ratio is calculated by dividing total interest bearing debt by total capital. Total interest bearing debt is the sum of notes payable and bank overdrafts, long-term debt due within one year, and long-term debt. Total capital is the sum of total interest bearing debt, minority interest in net assets of consolidated companies, and stockholders' equity.

Sauer-Danfoss Inc.

CONTACT: Investor Relations: Kenneth D. McCuskey, Vice President and
Chief Accounting Officer, +1-515-239-6364, Fax: +1-515-956-5364,
kmccuskey@sauer-danfoss.com, or John N. Langrick, Director of Finance Europe,
+49-4321-871-190, Fax: +49-4321-871-121, jlangrick@sauer-danfoss.com, both of
Sauer-Danfoss Inc.

Web Site: http://ir.sauer-danfoss.com/
http://www.sauer-danfoss.com/

Innovations Award-Winning CANMAX400 Dockable Interface Now Shipping From Directed Electronics

VISTA, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Directed Electronics, a wholly-owned subsidiary of DEI Holdings Inc. , is pleased to announce the immediate availability of the CANMAX400, winner of the Innovations Award at the 2008 Consumer Electronics Show. This combined remote start and door lock interface supports the installation of the leading brands of vehicle security and remote start systems with broad vehicle coverage and simple plug-in installation.

(Photo: http://www.newscom.com/cgi-bin/prnh/20081029/LAW100) (Logo: http://www.newscom.com/cgi-bin/prnh/20020424/DIRECTLOGO)

The CANMAX400 docks in the XPRESSPORT(TM) of Remote Start and Remote Start/Security systems from Viper, Python and Clifford including the award-winning Responder LE, as well as the Responder LC3 and other new 2008 systems available soon from Directed.

This innovative new web-configurable interface is designed to provide coverage for the vast majority of new vehicles because it supports multiple CANBUS, J1850 and Class 2 databus protocols. Like many of the new XPRESSKIT programmable interfaces, the CANMAX400 is designed to be "future-proof," covering all major hardware platforms from the automakers with constantly evolving software updates. It reduces SKU counts for Directed retailers, grows application lists for technicians, and increases compatibility for consumers: a win-win solution all around. This new product and technology will also reduce installation time in most vehicles.

The CANMAX400 comes preloaded with firmware that controls the convenience functions on all new Chrysler cars, trucks and minivans, including the new Caravan equipped with the laser style key. Additional firmware for the CANMAX400 now available for download at http://www.xpresskit.com/ covers GM, Honda, Acura, VW and the 2009 Audi A4 with the push-to-start ignition switch.

New firmware for Ford, Mazda, Nissan, Infiniti, Lexus and Toyota vehicles will be available in the next 60 days, so installers should check http://www.xpresskit.com/ often for new releases. For more information, retailers should see their Directed sales manager or call (800) 876-0800.

About DEI Holdings

Headquartered in Southern California, DEI Holdings, Inc. is the parent company of some of the most respected brands in the consumer electronics industry. DEI Holdings is the largest designer and marketer in North America of premium home theater loudspeakers (sold under the Polk Audio(R) and Definitive Technology(R) brand names), and consumer-branded vehicle security and remote start systems (sold under the Viper(R), Clifford(R), Python(R), Autostart(R) and other brand names). DEI Holdings is also the largest aftermarket supplier of SIRIUS satellite radios and accessories, and a supplier of mobile audio sold principally under both the Polk Audio and Orion(R) brand names. DEI Holdings markets its broad portfolio of products through many channels including leading national retailers and specialty chains throughout North America and around the world. Founded in 1982, the company has approximately 470 employees and operations in California, Maryland, Canada, and Asia. For more information, please visit http://www.deiholdings.com/.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20081029/LAW100
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Directed Electronics

CONTACT: Kennedy Gammage, Director of Communications, +1-760-598-6200,
or John Mills, Integrated Corporate Relations, +1-310-954-1100, both of
Directed Electronics

Web site: http://www.directed.com/
http://www.deiholdings.com/
http://www.xpresskit.com/

Oracle Buys HaleyExpands Oracle's Applications Drive into Social Services; Adds Enterprise Policy Automation for Legislated and Regulated Industries

REDWOOD SHORES, Calif., Oct. 29 /PRNewswire-FirstCall/ -- News Facts

-- Today, Oracle announced it has agreed to acquire RuleBurst Holdings Limited, the parent company of Haley Limited, a leading provider of policy modeling and automation software, to create an end-to-end solution for social services agencies.

-- Social service agencies are moving to commercial software to automate entitlements. With limited resources to serve a growing constituency, these agencies need to administer and distribute entitlements consistently and accurately as defined by the underlying legislation. Haley's policy automation platform translates legislation and policies into defined, automated rules that are deployed in an application.

-- Together with Oracle's ERP and Siebel CRM applications, Oracle expects to create the first packaged software solution for social services agencies with an enhanced case management application utilizing Haley to drive eligibility determinations.

-- The Haley policy automation platform is also used in other industries that are highly regulated, such as financial services and insurance, to implement and manage complicated and rapidly changing policies in common language without the need for specialized software programming.

-- Haley management and employees are expected to join Oracle to form a global business unit focused on enterprise policy automation solutions across multiple industries. Haley's CEO Dominic O'Hanlon is expected to lead the business unit as Senior Vice President and General Manager.

-- The transaction is subject to stockholder and governmental approvals and other customary closing conditions and is expected to close in the first quarter of calendar 2009. Until the deal closes, each company will continue to operate independently. Financial details of the transaction were not disclosed.

Supporting Quotes

-- "Governments and businesses face significant operating challenges with demographic shifts, globalization and budget constraints. Haley's patented technology simplifies the process of managing complex legislative and business policies," said Oracle President Charles Phillips. "For more than 20 years, Haley has helped some of the world's largest government, financial services and insurance institutions to rapidly implement policy rules and determinations and reduce IT costs."

-- "Today social services and other government agencies face increasingly difficult challenges in delivering mission critical services to its citizens," said Oracle Senior Vice President of CRM Anthony Lye. "By acquiring Haley, Oracle is accelerating its investment in public sector to create an integrated solution, and bring faster time to value for our customers."

-- "Haley complements Oracle's industry-focused applications strategy," said Dominic O'Hanlon, CEO of Haley. "We are excited to join Oracle as a new global business unit and believe the combination will empower customers to more quickly and effectively implement, manage and ensure compliance with policies, regulations and legislation."

Supporting Resources -- Oracle-Haley Information Page (http://www.oracle.com/errors/404.html) -- General Presentation (http://www.oracle.com/errors/404.html) -- FAQ (http://www.oracle.com/errors/404.html) About Oracle

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

Trademarks

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

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

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

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

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

Sanmina-SCI Announces Fourth Quarter and Year-End ResultsBoard of Directors Authorize Stock Repurchase Program

SAN JOSE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Sanmina-SCI Corporation (the "Company") , a leading global Electronics Manufacturing Services (EMS) company, today reported financial results(1) for the fourth quarter and fiscal year ended September 27, 2008.

Fourth Quarter Fiscal 2008 Highlights for Continuing Operations(2) -- Revenue of $1.70 Billion -- Non-GAAP Operating Margin of 3.5 Percent, Up 220 Basis Points Year- over-Year -- Non-GAAP Diluted Earnings Per Share of $0.05 -- Break-even GAAP Earnings Per Share Revenue from Continuing Operations

Revenue from continuing operations for the fourth quarter was $1.70 billion, compared to $1.75 billion in the same period a year ago. Revenue from continuing operations for the fiscal year ended September 27, 2008 was $7.20 billion, compared to $7.14 billion for the year ended September 29, 2007.

Non-GAAP Financial Results for Continuing Operations(3)

Non-GAAP gross profit in the fourth quarter was $132.8 million, or 7.8 percent of revenue, compared to gross profit of $109.9 million, or 6.3 percent of revenue, in the fourth quarter a year ago. Non-GAAP gross profit for the fiscal year 2008 was $531.2 million, or 7.4 percent of revenue, compared to gross profit of $464.0 million, or 6.5 percent for the fiscal year 2007.

Non-GAAP operating income was $59.3 million, or 3.5 percent of revenue in the quarter, compared to $22.7 million, or 1.3 percent of revenue, in the same period a year ago. Non-GAAP operating income for fiscal 2008 was $205.6 million, or 2.9 percent of revenue, compared to $101.6 million, or 1.4 percent of revenue for fiscal 2007.

Non-GAAP net income in the fourth quarter was $24.0 million, or $0.05 diluted earnings per share, compared to a net loss of ($9.9) million, or ($0.02) diluted loss per share, in the same period a year ago. Non-GAAP net income for the full year was $69.6 million, or $0.13 diluted earnings per share, compared to net loss of ($58.3) million, or ($0.11) diluted loss per share in fiscal 2007.

GAAP Financial Results for Continuing Operations(1)

GAAP net income in the fourth quarter was $22 thousand, or break-even diluted earnings per share, compared to a net loss of ($1,070.4) million, or ($2.03) per share, in the same period a year ago. GAAP net loss for the full year was ($37.4) million, or ($0.07) per share, compared to net loss of ($1,141.5) million, or ($2.17) per share in fiscal 2007. Fiscal 2007 results included a charge of $1.0 billion associated with the write-off of certain goodwill. The foregoing GAAP results are subject to change pending the completion of the company's review of the value of the goodwill carried on its balance sheet. (see Potential Goodwill Impairment)

Three Month Periods Twelve Month Periods Ending Ending Continuing Operations September September September September (In thousands, except 27, 29, 27, 29, per share data) 2008 2007 2008 2007 GAAP: Revenue $1,703,579 $1,753,905 $7,202,403 $7,137,793 Net income (loss) $22 $(1,070,397) $(37,399) $(1,141,493) Earnings (loss) per share $0.00 $(2.03) $(0.07) $(2.17) Non-GAAP: (3) Gross profit $132,828 $109,895 $531,224 $464,008 Gross margin 7.8% 6.3% 7.4% 6.5% Operating income $59,305 $22,673 $205,573 $101,551 Operating margin 3.5% 1.3% 2.9% 1.4% Net income (loss) $24,027 $(9,926) $69,594 $(58,271) Earnings (loss) per share $0.05 $(0.02) $0.13 $(0.11) (3) Please refer to "Non-GAAP Financial Information" below for a discussion of how the above non-GAAP financial measures are calculated and why we believe this information is useful to investors. A reconciliation from GAAP to non-GAAP results is contained in the financial statements contained in this release and is available in the Investor Relations section of our website athttp://www.sanmina-sci.com/. Balance Sheet Highlights for Continuing Operations -- Ending Cash and Cash Equivalents Were $869.8 Million -- Inventory Decreased $87.7 Million; Lowest Inventory Level in 12 Quarters -- Gross Cash Cycle Days Were 47.4

"I am pleased with our fourth quarter operational execution as we delivered record margins and strong asset management. This is particularly commendable despite a difficult economic environment that impacted customer demand, and our revenue, late in the quarter," stated Jure Sola, Chairman and Chief Executive Officer.

Fiscal First Quarter 2009 Guidance

Based on limited demand visibility and a challenging global economy, the Company is cautious in its guidance and estimates first quarter fiscal 2009 revenue to be in the range of $1.425 to $1.625 billion and non-GAAP earnings per share in the range of $0.00 to $0.03.

"Sanmina-SCI is well positioned to navigate through this challenging environment, remain profitable, generate positive cash flow and improve our working capital metrics, which will help position us as a stronger company when the market turns around," concluded Sola.

Stock Repurchase Program

The Company also announced today that its Board of Directors has approved a stock repurchase program covering up to 10% of its shares based on the closing stock price on October 29, 2008. The Company initially may purchase up to $10 million of its stock, the maximum amount currently permitted under its credit agreements. The Company may repurchase additional shares under the program as these restrictions expire or are modified. Purchases under the program shall be made at prevailing market prices or in negotiated transactions off the market. The program shall continue through December 2009, unless otherwise determined by the Board of Directors.

(1) Potential Goodwill Impairment

Given the recent significant decrease in the Company's market capitalization, similar to that experienced by other companies in the EMS Industry, the Company has undertaken a review of the value of the goodwill carried on its balance sheet using the two step test contained in Statement of Financial Accounting Standards (SFAS) 142, Goodwill and Other Intangible Assets. The Company does not expect to complete this review until mid- November. Should the company determine that its goodwill has become impaired under SFAS 142, it will be required to record a non-cash charge which could be significant and would reduce reported GAAP net income and earnings per share for the fiscal fourth quarter and year ended September 27, 2008 and which would be included in the financial statements filed with the Company's Annual Report on Form 10-K. The non-cash charge, if any, would not impact the non-GAAP financial information presented in this release.

(2) Basis of Presentation for Continuing Operations

The Company completed the sale of the assets of its personal computing business and associated logistics services in two transactions that closed on June 2, 2008 and July 7, 2008, respectively. The Company has reported this line of business as a discontinued operation in the financial statements that accompany this press release.

(3) Non-GAAP Financial Information

In the commentary set forth above, we present the following non-GAAP financial measures: gross profit, gross margin, operating income, operating margin, net income and earnings per share. In computing each of these non- GAAP financial measures, we exclude charges or gains relating to: stock-based compensation expenses, restructuring costs (including employee severance and benefits costs and charges related to excess facilities and assets), integration costs (consisting of costs associated with the integration of acquired businesses into our operations), impairment charges for goodwill and intangible assets, amortization expense and other infrequent or unusual items, to the extent material or which we consider to be of a non-operational nature in the applicable period.

We have furnished these non-GAAP financial measures because we believe they provide useful supplemental information to investors in that they eliminate certain financial items that are of a non-recurring, unusual or infrequent nature or are not related to the Company's regular, ongoing business. Our management also uses this information internally for forecasting, budgeting and other analytical purposes. Therefore, we believe that presenting non-GAAP financial measures enables investors to analyze the core financial and operating performance of our Company in the manner utilized by management and to facilitate period-to-period comparisons and analysis of operating trends. A reconciliation from GAAP to non-GAAP results is included in the financial statements contained in this release and is also available on the Investor Relations section of our website at http://www.sanmina-sci.com/. Sanmina-SCI provides earnings guidance only on a non-GAAP basis due to the inherent uncertainties associated with forecasting the timing and amount of restructuring, impairment and other unusual and infrequent items.

The non-GAAP financial information presented in this release may vary from non-GAAP financial measures used by other companies. In addition, non-GAAP financial information should not be viewed as a substitute for financial data prepared in accordance with GAAP.

Company Conference Call Information

Sanmina-SCI will be holding a conference call regarding this announcement on Wednesday, October 29, 2008 at 5:00 p.m. ET (2:00 p.m. PT). The access numbers are: domestic 877-273-6760 and international 706-634-6605. The conference will be broadcast live over the Internet. You can log on to the live webcast at http://www.sanmina-sci.com/. Additional information in the form of a slide presentation is available by logging onto Sanmina-SCI's website at http://www.sanmina-sci.com/. A replay of today's conference call will be available for 48-hours. The access numbers are: domestic 800-642-1687 and international 706-645-9291, access code is 6875262.

About Sanmina-SCI

Sanmina-SCI Corporation is a leading electronics contract manufacturer serving the fastest-growing segments of the global electronics manufacturing services (EMS) market. Recognized as a technology leader, Sanmina-SCI provides end-to-end manufacturing solutions, delivering superior quality and support to large OEMs primarily in the communications, defense and aerospace, industrial and medical instrumentation, computer technology and multimedia sectors. Sanmina-SCI has facilities strategically located in key regions throughout the world. Information about Sanmina-SCI is available at http://www.sanmina-sci.com/.

Sanmina-SCI Safe Harbor Statement

Certain statements contained in this press release, including the Company's expectations for future revenue and earnings per share and the number of shares expected to be repurchased under the Company's stock repurchase program, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in these statements as a result of a number of factors, including adverse conditions in the electronics industry, particularly in the principal industry sectors served by the Company, competition negatively impacting the Company's pricing, changes in customer requirements and in the volume of sales to principal customers adversely affecting revenue and profitability, the ability of Sanmina-SCI to effectively assimilate acquired businesses and achieve the anticipated benefits of its acquisitions, impact of the restrictions contained in the Company's credit agreements and indentures upon the repurchase of shares, the Company's cash position and other liquidity needs, and the factors set forth in the Company's fiscal year 2007 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q that the Company files with the Securities Exchange Commission ("SEC"). In addition, the Company's actual earnings per share on a non-GAAP basis for the fiscal quarter ending December 27, 2008 could differ materially from the targets stated under "Fiscal First Quarter 2009 Guidance" above due to (i) integration and other acquisition-related expenses associated with future acquisitions, if any, (ii) changes in the anticipated amount of employee share-based compensation expense recognized on the Company's financial statements and (iii) charges resulting from the impairment of any of the Company assets, including goodwill, required to be taken under SFAS 142.

The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the Investor Relations section of our website whether as a result of new information, future events or otherwise, unless otherwise required by law.

Sanmina - SCI Corporation Condensed Consolidated Balance Sheets (In thousands) (GAAP) September 27, September 29, 2008 2007 (Unaudited) ASSETS Current assets: Cash and cash equivalents $869,801 $933,424 Accounts receivable, net 969,558 1,218,375 Inventories 813,359 1,059,856 Prepaid expenses and other current assets 101,396 167,038 Assets held for sale 43,163 36,764 Total current assets 2,797,277 3,415,457 Property, plant and equipment, net 599,908 609,394 Goodwill 478,686 510,669 Other non-current assets 115,488 134,435 Total assets $3,991,359 $4,669,955 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $891,397 $1,450,705 Accrued liabilities 191,022 203,941 Accrued payroll and related benefits 139,522 142,436 Total current liabilities 1,221,941 1,797,082 Long-term liabilities: Long-term debt 1,481,985 1,588,072 Other 117,538 111,654 Total long-term liabilities 1,599,523 1,699,726 Total stockholders' equity 1,169,895 1,173,147 Total liabilities and stockholders' equity $3,991,359 $4,669,955 Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (GAAP) (Unaudited) Three Months Ended Twelve Months Ended September September September September 27, 2008 29, 2007 27, 2008 29, 2007 Net sales $1,703,579 $1,753,905 $7,202,403 $7,137,793 Cost of sales 1,572,688 1,649,526 6,678,297 6,683,277 Gross profit 130,891 104,379 524,106 454,516 Operating expenses: Selling, general and administrative 71,206 88,011 317,045 355,768 Research and development 4,815 6,016 19,546 30,080 Amortization of intangible assets 1,650 1,650 6,600 6,601 Restructuring costs 13,322 15,008 81,376 42,587 Impairment of goodwill and other assets 3,313 1,042,541 5,013 1,042,541 Total operating expenses 94,306 1,153,226 429,580 1,477,577 Operating income / (loss) 36,585 (1,048,847) 94,526 (1,023,061) Interest income 4,726 5,409 19,744 28,766 Interest expense (30,296) (38,136) (127,231) (168,291) Other income, net (4,211) 7,524 1,316 20,559 Interest and other expense, net (29,781) (25,203) (106,171) (118,966) Income (loss) from continuing operations before income taxes 6,804 (1,074,050) (11,645) (1,142,027) Provision for (benefit from) income taxes 6,782 (3,653) 25,754 (534) Net income (loss) from continuing operations 22 (1,070,397) (37,399) (1,141,493) Net income (loss) from discontinued operations, net of tax (11,264) (38,737) 24,987 6,836 Net income (loss) $(11,242) $(1,109,134) $(12,412) $(1,134,657) Basic income (loss) per share from: Continuing operations $0.00 $(2.03) $(0.07) $(2.17) Discontinued operations $(0.02) $(0.07) $0.05 $0.01 Net income $(0.02) $(2.10) $(0.02) $(2.15) Diluted income (loss) per share from: Continuing operations $0.00 $(2.03) $(0.07) $(2.17) Discontinued operations $(0.02) $(0.07) $0.05 $0.01 Net income $(0.02) $(2.10) $(0.02) $(2.15) Weighted-average shares used in computing per share amounts: Basic 531,222 527,140 530,721 527,117 Diluted 531,222 527,140 530,721 527,117 Sanmina - SCI Corporation Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended September September September September 27, 29, 27, 29, 2008 2007 2008 2007 GAAP Revenue - continuing operations $1,703,579 $1,753,905 $7,202,403 $7,137,793 GAAP Revenue - discontinued operations 17,624 751,511 1,802,452 3,246,461 GAAP Revenue - total company $1,721,203 $2,505,416 $9,004,855 $10,384,254 GAAP Gross Profit - continuing operations $130,891 $104,379 $524,106 $454,516 GAAP gross margin 7.7% 6.0% 7.3% 6.4% Adjustments - continuing operations: Stock compensation expense (1) 1,704 4,146 6,556 7,459 Amortization of intangible assets 233 220 970 883 Stock option investigation and integration - 1,150 (408) 1,150 Non-GAAP Gross Profit - continuing operations 132,828 109,895 531,224 464,008 Non-GAAP gross margin - continuing operations 7.8% 6.3% 7.4% 6.5% GAAP Gross Profit - discontinued operations 3,772 23,661 60,784 98,697 Adjustments - discontinued operations: Stock compensation expense (1) 44 506 361 776 Non-GAAP Gross Profit - total company $136,644 $134,062 $592,369 $563,481 Non-GAAP gross margin - total company 7.9% 5.4% 6.6% 5.4% GAAP operating income (loss) - continuing operations $36,585 $(1,048,847) $94,526 $(1,023,061) GAAP operating margin - continuing operations 2.1% -59.8% 1.3% -14.3% Adjustments - continuing operations: Stock compensation expense (1) 3,735 7,362 13,936 20,592 Amortization of intangible assets 1,883 1,870 7,570 7,484 Stock option investigation and integration 467 4,739 3,152 11,408 Restructuring costs 13,322 15,008 81,376 42,587 Impairment of goodwill and other assets 3,313 1,042,541 5,013 1,042,541 Non-GAAP operating income - continuing operations 59,305 22,673 205,573 101,551 Non-GAAP operating margin - continuing operations 3.5% 1.3% 2.9% 1.4% GAAP operating income (loss) - discontinued operations (1,273) (38,216) 39,463 21,124 Adjustments - discontinued operations: Stock compensation expense (1) 51 514 401 800 Amortization of intangible assets - - - 31 Restructuring costs 1,033 693 3,851 2,015 Impairment of assets 2,259 57,109 4,028 57,109 Non-GAAP operating income - total company $61,375 $42,773 $253,316 $182,630 Non-GAAP operating margin - total company 3.6% 1.7% 2.8% 1.8% GAAP net income (loss) - continuing operations $22 $(1,070,397) $(37,399) $(1,141,493) Adjustments - continuing operations: Operating income adjustments (see above) 22,720 1,071,520 111,047 1,124,612 Gain on sale of assets - (10,591) (2,622) (17,431) Loss on redemption of debt (2) - - 2,237 3,175 Tax effect of above items 1,285 (458) (3,669) (27,134) Non-GAAP net income (loss) - continuing operations 24,027 (9,926) 69,594 (58,271) GAAP net income - discontinued operations (11,264) (38,737) 24,987 6,836 Adjustments - discontinued operations: Operating income adjustments (see above) 3,343 58,316 8,280 59,955 Loss on sale of discontinued operation 7,045 - 7,045 - Tax effect of above items 2,956 521 3,595 14,288 Non-GAAP net income (loss) - total company $26,107 $10,174 $113,501 $22,808 Non-GAAP Earnings (loss) Per Share - continuing operations: Basic $0.05 $(0.02) $0.13 $(0.11) Diluted $0.05 $(0.02) $0.13 $(0.11) Non-GAAP Earnings (loss) Per Share - total company: Basic $0.05 $0.02 $0.21 $0.04 Diluted $0.05 $0.02 $0.21 $0.04 Weighted- average shares used in computing Non-GAAP earnings per share amounts: Basic 531,222 527,140 530,721 527,117 Diluted 531,652 529,309 531,023 528,965 (1) Stock compensation expense was as follows: Three Months Ended Twelve Months Ended September September September September 27, 29, 27, 29, 2008 2007 2008 2007 Cost of sales $1,704 $4,146 $6,556 $7,459 Selling, general and administrative 1,951 2,947 7,073 12,568 Research and development 80 269 307 565 Stock compensation expense - continuing operations 3,735 7,362 13,936 20,592 Discontinued operations 51 514 401 800 Stock compensation expense - total company $3,786 $7,876 $14,337 $21,392 (2) Write-off of prepaid financing fees related to debt that was repaid prior to maturity. SANMF

Sanmina-SCI Corporation

CONTACT: Paige Bombino of Sanmina-SCI Investor Relations,
+1-408-964-3610

Web site: http://www.sanmina-sci.com/

MIPS Technologies Reports First Quarter Fiscal 2009 Financial Results

MOUNTAIN VIEW, Calif., Oct. 29 /PRNewswire-FirstCall/ -- MIPS Technologies, Inc. , a leading provider of industry-standard architectures, processors and analog IP for digital consumer, home networking, wireless, communications and business applications, today reported consolidated financial results for its first quarter fiscal 2009 ended September 30, 2008. All financial results are reported in U.S. GAAP unless otherwise noted.

Revenue for the first quarter was $26.2 million, a decrease of 9 percent over the prior quarter revenue of $28.9 million but an increase of 18 percent from the $22.2 million reported in the first fiscal quarter a year ago. The Q1 sequential revenue decrease was driven primarily by lower contract and license revenues partially offset by increased revenues from royalties.

Contract and license revenue was $14.4 million, a decrease of 20 percent from the $18.1 million reported in the prior quarter but an increase of 24 percent from the $11.6 million reported in the first quarter a year ago. This first quarter sequential contract and license revenue decrease was due to lower Analog Business Group license results. The year to year contract and license revenue increase was due to the impact of having a full quarters' Analog Business revenue in the Q1'09 results compared with only 5 weeks in Q1'08. Revenue from royalties was $11.8 million, an increase of $1.0 million or 10 percent from the prior quarter and $1.3 million or 12 percent from the $10.5 million reported in the first quarter a year ago. The sequential increase in royalty revenue was driven by higher licensee unit volumes compared with the prior quarter. End user licensee units grew 14% to 112 million units.

The Company's fiscal Q1 2009 GAAP net loss was $7.0 million or $0.16 per share on a basic and diluted basis. This compares with a net loss of $108.5 million or $2.45 per basic and diluted share in the prior quarter and a net loss of $7.0 million or $0.16 per share in the first quarter a year ago.

Non-GAAP net income in the first quarter of fiscal 2009, which excludes the effect of equity based compensation expense, restructuring costs, and certain costs related to the acquisition of Chipidea, was $1.5 million or $0.03 per diluted share, compared with a non-GAAP net income of $1.3 million or $0.03 per diluted share in the prior quarter and $3.9 million or $0.08 per diluted share in the first quarter a year ago. The tables below provide a reconciliation of non-GAAP measures used in this release to the corresponding GAAP results.

The Company's Q1'09 ending cash balance was $16.2 million, up $2.2 million from the previous quarter including approximately a $1.3 million outflow related to the restructuring.

"We had a solid quarter in both processor royalty and licensing activity, reflecting continued momentum for that side of the business," said John Bourgoin, president and CEO. "Our mixed first quarter results reflect challenges we are facing with a softening market and difficulties in reaching our revenue objectives in our Analog business. But our cost reduction efforts, which we began during the quarter and continue today, are having an important positive impact on our costs, and in the uncertain economy, these actions provide us with added financial safety margin," added Bourgoin.

MIPS Technologies invites you to listen in a live conference call to management's discussion of Q1 fiscal 2009 results, as well as guidance for Q2 fiscal 2009. The conference call number is 210-839-8502 and the replay number is 203-369-1154. The password for both calls is MIPS. The replay will be available for 30 days shortly following the end of the conference call. An audio replay of the conference call will also be posted on the company's website at: http://www.mips.com/company/investor-relations/.

About MIPS Technologies, Inc.

MIPS Technologies, Inc. (NasdaqGS: MIPS) is the world's second largest semiconductor design IP company and the number one analog IP company worldwide. With more than 250 customers around the globe, MIPS Technologies is the only company that provides a combined portfolio of processors, analog IP and software tools for the embedded market. The company powers some of the world's most popular products for the digital entertainment, home networking, wireless, and portable media markets-including broadband devices from Linksys, DTVs and digital consumer devices from Sony, DVD recordable devices from Pioneer, digital set-top boxes from Motorola, network routers from Cisco, 32-bit microcontrollers from Microchip Technology and laser printers from Hewlett-Packard. Founded in 1998, MIPS Technologies is headquartered in Mountain View, California, with offices worldwide. For more information, contact (650) 567-5000 or visit http://www.mips.com/.

Forward Looking Statements

This press release contains forward-looking statements; such statements are indicated by forward-looking language such as "plans", "anticipates", "expects", "will", and other words or phrases contemplating future activities including statements regarding MIPS Technologies' expectations regarding customers' use of MIPS' products. These forward-looking statements include MIPS' expectation regarding improvements in financial results. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a number of different risks and uncertainties, including but not limited to: the fact that there can be no assurance that our products will achieve market acceptance, difficulties that may be encountered in the integration of the Chipidea business, changes in our research and development expenses, the anticipated benefits of our partnering relationships may be more difficult to achieve than expected, the timing of or delays in customer orders, delays in the design process, the length of MIPS Technologies' sales cycle, MIPS Technologies' ability to develop, introduce and market new products and product enhancements, and the level of demand for semiconductors and end-user products that incorporate semiconductors. For a further discussion of risk factors affecting our business, we refer you to the risk factors section in the documents we file from time to time with the Securities and Exchange Commission.

MIPS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) September 30, June 30, 2008 2008 (unaudited) Assets Current assets: Cash and cash equivalents $16,174 $13,938 Accounts receivable, net 13,951 14,462 Prepaid expenses and other current assets 22,122 24,803 Total current assets 52,247 53,203 Equipment, furniture and property, net 14,339 16,307 Goodwill 31,311 40,624 Other assets 31,150 42,610 129,047 $152,744 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $3,529 $3,441 Accrued liabilities 45,883 51,963 Debt - short term 7,377 18,641 Deferred revenue 5,079 4,283 Total current liabilities 61,868 78,328 Long-term liabilities: Debt - long term 10,695 - Other long term liabilities 20,465 29,496 Total long term liabilities 31,160 29,496 Stockholders' equity 36,019 44,920 $129,047 $152,744 MIPS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited) Three Months Ended September 30, 2008 2007 Revenue: Royalties $11,832 $10,519 Contract Revenue 14,385 11,633 Total revenue 26,217 22,152 Cost of Sales 7,644 3,324 Gross Margin 18,573 18,828 Operating expenses: Research and development 7,347 9,013 Sales and marketing 5,045 5,586 General and administrative 6,957 7,009 Acquired in-process research and development - 5,440 Restructuring 4,931 - Total operating expenses 24,280 27,048 Operating loss (5,707) (8,220) Other income, net (1,438) 495 Loss before income taxes (7,145) (7,725) Benefit from income taxes (178) (694) Net loss $(6,967) $(7,031) Net loss per share, basic and diluted $(0.16) $(0.16) Common shares outstanding, basic and diluted 44,334 43,766 MIPS TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP NET INCOME and NET INCOME PER SHARE (In thousands, except per share data) (unaudited) Three Months Three Months Three Months Ended Ended Ended September 30, June 30, September 30, 2008 2008 2007 GAAP net loss $(6,967) $(108,462) $(7,031) Net loss per basic share $(0.16) $(2.45) $(0.16) Net loss per diluted share $(0.16) $(2.45) $(0.16) (a) Equity-based compensation expense under SFAS 123R $1,161 $1,617 $2,391 (b) Amortization of intangibles 1,515 2,541 970 (c) Acquisition related cost 1,545 2,052 1,313 (d) Integration cost - - 839 (e) Acquired in-process research and development - - 5,440 (f) Impairment of goodwill and acquired intangible assets - 103,107 - (g) Restructuring 4,931 281 - (h) Equity Write-Down 2,276 - (i) Tax adjustment (662) (2,092) - Non-GAAP net income $1,523 $1,320 $3,922 Non-GAAP net income per basic share $0.03 $0.03 $0.09 Non-GAAP net income per diluted share $0.03 $0.03 $0.08 Common shares outstanding - basic 44,334 44,193 43,766 Common shares outstanding - diluted 44,952 44,869 46,723

These adjustments reconcile the Company's GAAP results of operations to the reported non-GAAP results of operations. The Company believes that presentation of net income and net income per share excluding the items listed below provides meaningful supplemental information to investors, as well as management that is indicative of the Company's ongoing operating results and facilitates comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and budgeting purposes. These non-GAAP measures should not be viewed as a substitute for the Company's GAAP results, and may be different than non-GAAP measures used by other companies.

(a) This adjustment reflects the non-cash equity-based compensation expense related to the Company's adoption of SFAS No. 123 revised (SFAS 123R) beginning July 1, 2005. For the first fiscal quarter ending September 30, 2008, $1.2 million of equity-based compensation was allocated as follows: $202,000 to research and development, $433,000 to sales and marketing and $526,000 to general and administrative. For the fourth fiscal quarter of fiscal 2008 ending June 30, 2008, $1.6 million of equity-based compensation was allocated as follows: $478,000 to research and development, $592,000 to sales and marketing and $547,000 to general and administrative. For the first quarter of fiscal 2008 ending September 30, 2007, $2.4 million equity-based compensation expense was allocated as follows: $833,000 to research and development, $662,000 to sales and marketing and $896,000 to general and administrative. (b) This adjustment reflects the non-cash expense related to the amortization of intangibles acquired in connection with the acquisition of Chipidea included in operating expenses. For the first fiscal quarter ending September 30, 2008, $1.5 million of amortization expense related to these intangible assets was allocated as follows: $1.4 million to cost of sales, $8,000 to research and development and $62,000 to sales and marketing. For the fourth quarter of fiscal 2008 ending June 30, 2008, $2.5 million of amortization expense related to these intangible assets was allocated as follows: $2.4 million to cost of sales, $9,000 to research and development and $131,000 to sales and marketing. For the first quarter of fiscal 2008 ending September 30, 2007, $970,000 of amortization expense related to the intangible assets was allocated as follows: $834,000 to cost of sales and $136,000 to sales and marketing. (c) This adjustment reflects the amortization expense related to the amount held in escrow and payable to the founders of Chipidea in connection with the acquisition of Chipidea. This adjustment also reflects legal fees incurred in association with certain financing activities and the amortization of loan origination fees. For the first fiscal quarter ending September 30, 2008, $1.5 million was expensed related to the escrow amount payable to the founders of Chipidea and was allocated as follows: $429,000 to general and administrative and $1.1 million to research and development. For the fourth quarter of fiscal 2008 ending June 30, 2008, $1.8 million was expensed related to the escrow amount payable to the founders of Chipidea and was allocated as follows: $694,000 to general and administrative and $1.1 million to research and development. $280,000 was expensed related to the amortization of loan origination fees and was allocated to Other Income/Expense. For the first quarter of fiscal 2008 ending September 30, 2007, $648,000 was expensed related to the escrow amount payable to the founders of Chipidea and was allocated as follows: $216,000 to general and administrative and $432,000 to research and development. In addition we incurred $335,000 in legal fees included in general and administrative expenses in connection with obtaining a revolver loan related to the acquisition of Chipidea. This adjustment also includes $330,000 in loan origination fees under other income and expense. (d) This adjustment reflects the integration expense related to the acquisition of Chipidea recorded in accounting and legal expense under general and administrative. (e) This adjustment reflects acquired in-process research and development expense related to the acquisition of Chipidea. (f) This adjustment reflects the impairment charge of goodwill and acquired intangible assets associated with Chipidea and certain other transactions. (g) This adjustment reflects restructuring expense related to reduction in workforce and facilities exit costs. (h) This adjustment reflects certain equity write down under Other Income/Expense related to investment associated with an equity position in a private company. (i) This adjustment reflects the net tax effect of the specific items presented in the non-GAAP adjustment described above. For the fourth quarter of fiscal 2008, the Company used a short to intermediate term tax rate of 35% to estimate post tax non-GAAP income.

MIPS is a trademark or registered trademark in the United States and other countries of MIPS Technologies, Inc. Chipidea is a trademark or registered trademark in the United States and other countries of MIPSABG Chipidea, Lda. All other trademarks referred to herein are the property of their respective owners.

MIPS Technologies, Inc.

CONTACT: Jen Bernier, +1-650-567-5178, jenb@mips.com, or Juli Dowhan,
+1-650-567-5100, ir@mips.com, both of MIPS Technologies, Inc.

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

Caliper Enters Agreement to Divest Non-Core Pharmaceutical Development & Quality Analysis Product Line- Sale Reinforces Strategic Focus and Enhances Cash Position -

HOPKINTON, Mass., Oct. 29 /PRNewswire-FirstCall/ -- Caliper Life Sciences, Inc. , a leading provider of tools and services for drug discovery and life sciences research, today announced that it has reached an agreement to sell its Pharmaceutical Development & Quality Analysis (PDQ) product line to SOTAX Corporation in a transaction valued at approximately $15.8 million. The PDQ product line consists of products used for drug content uniformity and dissolution rate testing and related services. The sale is expected to close in November 2008.

"Divesting the PDQ product line is an important milestone in our strategy to focus on core technologies in imaging, microfluidics and sample preparation and to strengthen our balance sheet by rationalizing non-strategic product segments," said Kevin Hrusovsky, President and CEO of Caliper. "A sharper strategic focus can facilitate an increased top line growth rate and potential for achieving further operating efficiencies, accelerating our timeline to profitability."

Under the terms of the agreement, SOTAX, a leader in technologies used for tablet testing, will make a cash payment of approximately $13.8 million and assume liabilities for an estimated $2 million. Furthermore, Caliper and SOTAX have expressed their intent to enter into a long-term lease agreement under which Caliper will sublease approximately 10,000 square feet of manufacturing and office space to SOTAX on a market-rate basis, thereby reducing Caliper's ongoing facility costs. Certain Caliper employees currently involved with the PDQ business will be offered positions with SOTAX.

"This acquisition represents an opportunity for SOTAX to expand its worldwide presence, especially in the United States and the United Kingdom, and is an important step in achieving our strategic growth objectives," said Rolf Benz, President and CEO of SOTAX Holding A.G. the privately-owned parent company of SOTAX Corporation. "Caliper built excellent customer relationships in this market segment and is working closely with us to ensure that the PDQ customers continue to receive the same exceptional level of customer support and service throughout the transition and beyond."

Caliper's PDQ product line is comprised of TPW3(TM) -- Tablet Processing Workstation, APW3(TM) -- Active Ingredient Processing Workstation, MultiDose(R) G3 - Dissolution Workstation, and other related products.

About Caliper Life Sciences

Caliper Life Sciences is a premier provider of cutting-edge technologies enabling researchers in the life sciences industry to create life-saving and enhancing medicines and diagnostic tests more quickly and efficiently. Caliper is aggressively innovating new technology to bridge the gap between in vitro assays and in vivo results and then translating those results into cures for human disease. Caliper's portfolio of offerings includes state-of-the-art microfluidics, lab automation & liquid handling, optical imaging technologies, and discovery & development outsourcing solutions. For more information please visit http://www.caliperls.com/.

The statement in this press release regarding future events, including Caliper's belief that the divestiture of the PDQ product line can facilitate an increased top line growth rate and potential for achieving further operating efficiencies, thus accelerating its timeline to profitability is a "forward-looking statement" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. This statement is subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements as a result of a number of factors, including the possibility that for unforeseen reasons the divestiture of the PDQ product line might not be completed as contemplated. Further information on risks faced by Caliper are detailed under the caption "Risks Related To Our Business" in Caliper's Annual Report on Form 10-K for the year ended December 31, 2007. Our filings are available on a web site maintained by the Securities and Exchange Commission at http://www.sec.gov/. Caliper does not undertake any obligation to update forward-looking or other statements in this release.

Caliper, TPW3, APW3 and MultiDose are trademarks of Caliper Life Sciences, Inc.

Caliper Life Sciences, Inc.

CONTACT: Investors, Peter F. McAree, Caliper Life Sciences, +1-508-497-
2215; Media, Stacey Holifield or Tim Pitta, both of Schwartz Communications,
+1-781-684-0770, caliper@schwartz-pr.com

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

Aware, Inc. Announces Extension of Stock Repurchase Plan

BEDFORD, Mass., Oct. 29 /PRNewswire-FirstCall/ -- Aware, Inc. , a leading supplier of broadband technology and biometrics software, announced today that its Board of Directors has approved an extension to the program originally authorized on August 28, 2007 to repurchase from time to time at management's discretion up to $5 million worth of shares of the Company's common stock in the open market or in private until December 31, 2009 at prevailing market prices. The Board of Directors has also approved the repurchase of up to an additional $5 million worth of shares of the Company's common stock in addition to the up to $5,000,000 worth of shares originally authorized on August 28, 2007. As of September 30, 2008, the Company had purchased approximately $2.3 million worth of shares of the Company's common stock.

As of October 27, 2008, the Company had 23,307,742 shares of common stock outstanding. Repurchases will be made under the program using the Company's own cash resources and will be in accordance with Rule 10b-18 under the Securities Exchange Act of 1934 and other applicable laws, rules and regulations.

The program does not obligate the Company to acquire any particular amount of common stock and the program may be modified or suspended at any time at the Company's discretion. As of October 27, 2008, the Company had approximately $37 million of cash, cash equivalents and marketable securities.

About Aware

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

Safe Harbor Warning

Portions of this release contain forward-looking statements regarding future events and are subject to risks and uncertainties, such as the possibility that Aware will repurchase up to approximately $7.7 million of its common stock. Aware wishes to caution you that there are factors that could cause actual results to differ materially from the results indicated by such statements. These factors are included in documents that Aware files from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in our quarterly report on Form 10-Q for the quarter ended September 30, 2008 and other reports and filings made with the Securities and Exchange Commission.

Aware, Dr. DSL and StratiPHY are trademarks or registered trademarks of Aware, Inc. Any other trademarks appearing herein are the property of their respective owners.

Aware, Inc.

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

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

ION Geophysical Announces Third Quarter 2008 Earnings Release and Conference Call Schedule

HOUSTON, Oct. 29 /PRNewswire-FirstCall/ -- ION Geophysical Corporation announced today that it will release third quarter 2008 results on Tuesday, November 4, 2008 after the market closes. In conjunction with the release, ION has scheduled a conference call, which will be broadcast live over the Internet, for Wednesday, November 5, 2008 at 10:00 a.m. Eastern Time (9:00 a.m. Central).

What: ION Third Quarter 2008 Earnings Conference Call When: Wednesday, November 5, 2008 - 10:00 a.m. Eastern Time How: Live via phone - By dialing (303) 242-0003 and asking for the ION call at least 10 minutes prior to the start time. Live over the Internet - by logging on to the web at the address below. Where: http://www.iongeo.com/. The webcast can be accessed from the home page.

For those who cannot listen to the live call, a telephonic replay will be available through November 19, 2008, and may be accessed by calling (303) 590-3000 using pass code 11121267#. Also, an archive of the webcast will be available shortly after the call on the company's website at http://www.iongeo.com/ for approximately 12 months.

About ION

ION is a leading provider of geophysical technology, services, and solutions for the global oil & gas industry. ION's offerings allow E&P operators to obtain higher resolution images of the subsurface to reduce the risk of exploration and reservoir development, and enable seismic contractors to acquire geophysical data more efficiently. Additional information about ION is available at http://www.iongeo.com/.

The information included herein contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may vary fundamentally from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include risk factors that are disclosed by ION from time to time in its filings with the Securities and Exchange Commission.

Contacts: R. Brian Hanson Chief Financial Officer ION Geophysical (281) 879-3672 Jack Lascar DRG&E (713) 529-6600

ION Geophysical Corporation

CONTACT: R. Brian Hanson, Chief Financial Officer of ION Geophysical,
+1-281-879-3672; or Jack Lascar of DRG&E, +1-713-529-6600, for ION
Geophysical

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

SiRF Technology Holdings Inc. Announces Financial Results for Third Quarter 2008SiRF reports revenue of $60 million

SAN JOSE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- SiRF Technology Holdings, Inc. , a leading provider of GPS-enabled silicon and premium software location platforms, today reported unaudited financial results for its third quarter ended September 27, 2008.

Effective July 1, 2008, the Company has changed its fiscal year end so that the fiscal year is the 52- or 53- week period ending on the Saturday closest to December 31; provided however, that the Company's fiscal 2008, and fourth quarter, will end on December 27, 2008, and its third quarter ended on September 27, 2008. In a 52-week year, each fiscal quarter consists of 13 weeks. The additional week in a 53-week year is added to the fourth quarter, making such quarter consist of 14 weeks. The board of directors approved this determination on October 28, 2008. The Form 10-Q for the third quarter of 2008 will reflect this transition.

Net revenue in the third quarter of 2008 was $60.1 million, a decrease of 34.1 percent from $91.2 million reported in the third quarter of 2007. Gross margin in the third quarter of 2008 was 42.7 percent, as compared to 49.3 percent in the third quarter of 2007.

Net loss for the third quarter of 2008 was $20.9 million, or ($0.34) per diluted share, based on 62.3 million diluted weighted average shares outstanding. This compares with net loss of $16.1 million, or ($0.28) per diluted share, based on 57.0 million diluted weighted average shares outstanding in the third quarter of 2007.

Net revenue in the first nine months of 2008 was $185.2 million, a decrease of 19.1 percent from $229.0 million in the first nine months of 2007. Gross margin in the first nine months of 2008 was 35.2 percent, as compared to 52.1 percent in the first nine months of 2007.

Net loss for the first nine months of 2008 was $381.6 million, or ($6.22) per diluted share, based on 61.4 million diluted weighted averages shares outstanding. This compares with net loss of $11.1 million, or ($0.21) per diluted share, based on 54.0 million diluted weighted average shares outstanding in the first nine months of 2007.

SiRF reports gross profits, net income (loss) and basic and diluted net income (loss) per share in accordance with GAAP and additionally on a non-GAAP basis. Non-GAAP gross profit, where applicable, excludes the effect of stock-based compensation expense, amortization and impairment of acquisition-related intangible assets and fair value adjustments on acquisition-related inventory. Non-GAAP gross profit for the third quarter of 2008 was $28.5 million, or 47.4% of net revenue, as compared to non-GAAP gross profit of $49.7 million, or 54.5% of net revenue for the third quarter of 2007. Non-GAAP net income (loss), where applicable, excludes the effect of stock-based compensation expense, amortization of acquisition-related intangible assets, expenses associated with acquisition-related contingent payments, restructuring charges, note receivable impairment, goodwill impairment, acquisition-related intangible asset impairment, acquired in-process research and development expense, fair value adjustments on acquisition-related inventory and adjustments to normalize the income tax provision. Non-GAAP net loss for the third quarter of 2008 was $6.6 million, or ($0.11) per diluted share, as compared to non-GAAP net income of $17.6 million, or $0.29 per diluted share for the third quarter of 2007. Non-GAAP net loss for the third quarter of 2008 excludes $10.1 million in stock-based compensation expense, $3.4 million in amortization of acquisition-related intangible assets, $0.6 million in restructuring charges and $0.1 million to normalize the income tax provision. Non-GAAP net income for the third quarter of 2007 excludes $11.6 million in stock-based compensation expense, $4.5 million in amortization of acquisition-related intangible assets, $0.6 million of expenses related to acquisition-related contingent payments, $13.9 million for acquired in-process research and development expense, $1.6 million recorded as cost of sales pertaining to fair value adjustments on acquisition-related inventory sold during the quarter and $1.4 million of adjustments to normalize the provision for income taxes. Weighted average shares outstanding used in computing diluted non-GAAP net income per share for the third quarter of 2008 were 62.3 million, compared to 61.3 million for the third quarter of 2007. Refer to the itemized reconciliation between gross profit and net income (loss) on a GAAP basis and non-GAAP basis for the third quarter of 2008 and 2007 as follows.

Non-GAAP gross profit for the first nine months of 2008 was $88.6 million or 47.8% of net revenue, as compared to non-GAAP gross profit of $125.5 million or 54.8% of net revenue for the first nine months of 2007. Non-GAAP net loss for the first nine months of 2008 was $26.4 million, or ($0.43) per diluted share, as compared to non-GAAP net income of $42.2 million, or $0.72 per diluted share for the first nine months of 2007. Non-GAAP net loss for the first nine months of 2008 excludes $29.3 million in stock-based compensation expense, $15.8 million in amortization of acquisition-related intangible assets, $0.4 million of expenses related to acquisition-related contingent payments, $1.2 million of restructuring charges, $11.8 million of note receivable impairment, $215.7 million of goodwill impairment, $42.9 million on acquisition-related intangibles impairment and $38.1 million of provision for income taxes. Non-GAAP net income for the first nine months of 2007 excludes $27.7 million in stock-based compensation expense, $6.6 million in amortization of acquisition-related intangible assets, $2.1 million of expenses related to acquisition-related contingent payments, $13.9 million for acquired in-process research and development expense, $1.6 million recorded as cost of sales pertaining to fair value adjustments on acquisition-related inventory sold during the quarter and $1.4 million of adjustments to normalize the provision for income taxes. Weighted average shares outstanding used in computing diluted non-GAAP net income per share for the first nine months of 2008 were 61.4 million, compared to 59.0 million for the first nine months of 2007. Refer to the itemized reconciliation between gross profit and net income (loss) on a GAAP basis and non-GAAP basis for the first nine months of 2008 and 2007 as follows.

Total cash, cash equivalents and short-term investments were $100.1 million at September 27, 2008, compared with $139.4 million at December 31, 2007.

Q3'2008 Highlights and Business Outlook:

This was a challenging quarter for SiRF with weakness in demand driven by global economic uncertainty and continued competitive pressures that impacted both our revenue and margins.

In this quarter, we saw the launch of multiple mobile phone platforms from our key customers, both in the USA and in other countries, such as China and Canada, as well as global expansion of existing handsets in multiple countries. Our first host based-single die SiRFstarIII product, GSD3tw, continues to gain traction at key handset customers.

In the automotive space, our multifunction system-on-chip (SoC) platforms continue to gain significant design win momentum. Navigon launched new PNDs with both our entry level and high end multifunction system-on-chip (SoC) platforms while we started shipments of our entry level SoC to another leading OEM. Many customers also launched new PND products based on our SiRFstarIII architecture including Mio with the launch of Knight Rider GPS system in USA.

In the consumer segment, Becker launched products for outdoor navigation while in France Kapsys launched an innovative voice driven, screen-less personal navigation and entertainment device that weighs only 50grams.

In early October, we announced the SiRFlinkIII(TM) combination radio IC that combines a high-performance GPS RF front end and a complete Bluetooth controller optimized for use with the SiRFatlas(TM) and SiRFprima(TM) multifunction SoC platforms. One of the key innovations in this single die multifunction radio platform is its ability to maintain SiRF's high sensitivity GPS performance concurrent with full power BT operation.

While our newer products are showing good design win traction, we continue to be cautious in our outlook due to economic uncertainties and challenging competitive environments.

Quarterly conference call details:

SiRF will host a conference call on October 29, 2008, at approximately 4:30 PM EDT/1:30 PM PDT to discuss its third quarter ended September 27, 2008 financial results.

This event is available through the SiRF Technology web site at http://www.sirf.com/ by clicking on the "Investors" link. Listeners should go to the website at least ten minutes before the event to download and install any necessary audio software. For those unable to attend the live broadcast, an archived version of the webcast will be available for twelve months.

The call can also be heard by dialing (800) 894-5910 (domestic) or (785) 424-1052 (international) and entering the conference id: SIRF. A telephonic replay will also be available approximately 2 hours following the earnings call and will be available for two weeks. The telephone playback of the conference call can be accessed by dialing (800) 283-5758.

About SiRF Technology Holdings, Inc.:

SiRF Technology Holdings, Inc. develops and markets semiconductor and software products that are designed to enable location-awareness utilizing GPS and other location technologies, enhanced by wireless connectivity capabilities such as Bluetooth, for high-volume mobile consumer devices and commercial applications. SiRF's technology has been integrated into mobile consumer devices, such as automobile navigation systems, mobile phones, PDAs, GPS-based peripherals and handheld GPS navigation devices, and into commercial applications, such as location servers, asset tracking devices and fleet management systems. SiRF markets and sells its products in three target platforms: wireless handheld devices, such as mobile phones; automotive electronics systems, including navigation and telematics systems; and consumer and compute devices, including personal digital assistants, notebook computers, recreational GPS handhelds, mobile gaming machines, digital cameras and watches. Founded in 1995, SiRF is headquartered in San Jose, Calif., and has sales offices, design centers and research facilities around the world. The company trades on the Nasdaq Stock Exchange under the symbol SIRF. Additional information about SiRF and its Location Technology solutions can be found at http://www.sirf.com/.

FORWARD-LOOKING STATEMENTS:

Except for purely historical information contained herein, the matters set forth in this press release, including but not limited to statements related to our design win traction, design win momentum, anticipated benefits or success of our current and announced products, potential success of our customers' products, our business outlook and the purposes and benefits to our management and investors of using non-GAAP measures and the recurrence of certain expenses in the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "to," "being," "possible," "may," "address," "designed to," "provide," "anticipate," "believe," "expect," "plan," "will," and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and reported results should not be considered as an indication of future performance. SiRF's actual results could differ materially from those discussed in these forward-looking statements as a result of risks and uncertainties, including, among others, the market for GPS-based location awareness capabilities, our ability to keep pace with rapid technological change, the outcome of our litigation (including any final ITC order), trends and uncertainties with respect to consumer demand, the macroeconomic environment and the semiconductor industry, global market and economy volatility, international operations and our ability to compete, and other risks and uncertainties discussed in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 and from time to time in SiRF's SEC reports. These forward-looking statements speak only as of the date hereof. We do not undertake any obligation to update forward-looking statements.

SiRF TECHNOLOGY HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) September 27, December 31, 2008 2007 (Unaudited) (1) ASSETS Current assets: Cash and cash equivalents $72,139 $100,963 Marketable securities 27,948 38,446 Accounts receivable, net 36,187 37,060 Inventories 19,184 27,962 Current deferred tax assets 28 6,946 Prepaid expenses and other current assets 4,498 5,380 Total current assets 159,984 216,757 Property and equipment, net 14,088 13,147 Goodwill - 215,752 Identified intangible assets, net 25,734 82,705 Long-term deferred tax assets 2,264 34,032 Other long-term assets 1,128 1,348 Note receivable 1,700 - Total assets $204,898 $563,741 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $15,452 $22,069 Accrued payroll and related benefits 8,761 12,590 Other accrued liabilities 9,508 6,145 Deferred margin on shipments to distributors 2,266 3,028 Deferred revenue 892 373 Advance contract billings 34 191 Rebates payable to customers 917 5,452 Capital lease obligations - 129 Total current liabilities 37,830 49,977 Long-term deferred tax liabilities 170 169 Long-term income taxes payable 2,274 2,762 Long-term obligations 1,824 1,421 Total liabilities 42,098 54,329 Commitments and contingencies Stockholders' equity: Common stock 6 6 Additional paid-in capital 583,864 548,895 Accumulated other comprehensive loss (111) (105) Accumulated deficit (420,959) (39,384) Total stockholders' equity 162,800 509,412 Total liabilities and

stockholders' equity $204,898 $563,741 _________

1) The condensed consolidated balance sheet information was derived from SiRF Technology Holdings, Inc. audited consolidated financial statements for the year ended December 31, 2007 as presented in the Company's December 31, 2007 Form 10-K. SiRF TECHNOLOGY HOLDINGS, INC. CONDENSED CONSOLIDATED GAAP STATEMENT OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended September September September September 27, 30, 27, 30, 2008 2007 2008 2007 Revenue: Product revenue $57,650 $89,434 $178,945 $224,198 License royalty revenue 2,421 1,727 6,239 4,828 Net revenue 60,071 91,161 185,184 229,026 Cost of revenue: Cost of product revenue (includes stock-based compensation expense of $551 and $514 for the three months ended September 27, 2008 and September 30, 2007, respectively, and $1,160 and $1,053 for the nine months ended September 27, 2008 and September 30, 2007, respectively) 32,123 43,573 97,756 106,148 Amortization of acquisition- related intangible assets (1) 2,307 2,642 9,709 3,578 Acquisition-related intangible asset impairment - - 12,472 - Gross profit 25,641 44,946 65,247 119,300 Gross margin 42.7% 49.3% 35.2% 52.1% Operating expenses: Research and development (includes stock-based compensation expense of $5,691 and $6,285 for the three months ended September 27, 2008 and September 30, 2007, respectively, and $16,410 and $15,588 for the nine months ended September 27, 2008 and September 30, 2007, respectively) 27,282 26,413 83,039 70,418 Sales and marketing (includes stock-based compensation expense of $1,463 and $2,072 for the three months ended September 27, 2008 and September 30, 2007, respectively, and $4,825 and $4,689 for the nine months ended September 27, 2008 and September 30, 2007, respectively) 5,835 7,408 20,194 19,908 General and administrative (includes stock-based compensation expense of $2,405 and $2,732 for the three months ended September 27, 2008 and September 30, 2007, respectively, and $6,900 and $6,411 for the nine months ended September 27, 2008 and September 30, 2007, respectively) 12,001 10,484 41,573 25,385 Amortization of acquisition- related intangible assets (1) 1,128 1,844 6,106 3,031 Restructuring and asset impairment charges 615 - 1,179 - Goodwill impairment - - 215,717 - Acquisition-related intangible asset impairment - - 30,407 - Acquired in-process research and development - 13,900 - 13,900 Total operating expenses 46,861 60,049 398,215 132,642 Operating loss (21,220) (15,103) (332,968) (13,342) Other income, net 480 1,745 2,180 6,091 Note receivable impairment - - (11,800) - Net loss before provision for income taxes (20,740) (13,358) (342,588) (7,251) Provision for income taxes 186 2,697 38,986 3,863 Net loss $(20,926) $(16,055) $(381,574) $(11,114) Net loss per share: Basic $(0.34) $(0.28) $(6.22) $(0.21) Diluted $(0.34) $(0.28) $(6.22) $(0.21) Weighted average number of shares used in per share calculations: Basic 62,333 56,954 61,383 54,006

Diluted 62,333 56,954 61,383 54,006 _________

1) Certain reclassifications have been made to prior period amounts to conform to SiRF's current period presentation. Certain amounts of amortization of acquisition-related intangible assets have been reclassed and are being presented as a component of cost of revenue. Previously, SiRF had presented these amounts as a component of operating expense. SiRF TECHNOLOGY HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS GAAP BASIS to NON-GAAP BASIS RECONCILIATION (In thousands, except per share amounts) (Presentation is not based on a comprehensive set of accounting rules or principles) (Unaudited) Three Months Ended Nine Months Ended September September September September 27, 30, 27, 30, 2008 2007 2008 2007 Net revenue: $60,071 $91,161 $185,184 $229,026 Gross profit: GAAP gross profit $25,641 $44,946 $65,247 $119,300 Stock-based compensation expense (A) 551 514 1,160 1,053 Amortization of acquisition-related intangible assets (1) (B) 2,307 2,642 9,709 3,578 Acquisition-related intangible asset impairment (G) - - 12,472 - Fair value adjustments on acquisition-related inventory (I) - 1,603 - 1,603 Non-GAAP gross profit $28,499 $49,705 $88,588 $125,534 Non-GAAP gross margin 47.4% 54.5% 47.8% 54.8% Operating expenses: GAAP operating expenses $46,861 $60,049 $398,215 $132,642 Stock-based compensation expense (A) (9,559) (11,089) (28,135) (26,688) Amortization of acquisition-related intangible assets (1) (B) (1,128) (1,844) (6,106) (3,031) Acquisition-related contingent payments (C) (26) (649) (366) (2,129) Restructuring and asset impairment charges (D) (615) - (1,179) - Goodwill impairment (F) - - (215,717) - Acquisition-related intangible asset impairment (G) - - (30,407) - Acquired in-process research and development (H) - (13,900) - (13,900) Non-GAAP operating expenses $35,533 $32,567 $116,305 $86,894 Operating loss: GAAP operating loss $(21,220) $(15,103) $(332,968) $(13,342) Stock-based compensation expense (A) 10,110 11,603 29,295 27,741 Amortization of acquisition-related intangible assets (1) (B) 3,435 4,486 15,815 6,609 Acquisition-related contingent payments (C) 26 649 366 2,129 Restructuring and asset impairment charges (D) 615 - 1,179 - Goodwill impairment (F) - - 215,717 - Acquisition-related intangible asset impairment (G) - - 42,879 - Acquired in-process research and development (H) - 13,900 - 13,900 Fair value adjustments on acquisition-related inventory (I) - 1,603 - 1,603 Non-GAAP operating income (loss) $(7,034) $17,138 $(27,717) $38,640 Net income (loss): GAAP net loss $(20,926) $(16,055) $(381,574) $(11,114) Stock-based compensation expense (A) 10,110 11,603 29,295 27,741 Amortization of acquisition-related intangible assets (1) (B) 3,435 4,486 15,815 6,609 Acquisition-related contingent payments (C) 26 649 366 2,129 Restructuring and asset impairment charges (D) 615 - 1,179 - Note receivable impairment (E) - - 11,800 - Goodwill impairment (F) - - 215,717 - Acquisition-related intangible asset impairment (G) - - 42,879 - Acquired in-process research and development (H) - 13,900 - 13,900 Fair value adjustments on acquisition-related inventory (I) - 1,603 - 1,603 Provision for income taxes (J) 139 1,370 38,125 1,370 Non-GAAP net income (loss) $(6,601) $17,556 $(26,398) $42,238 Diluted net income (loss) per share: GAAP diluted net loss per share $(0.34) $(0.28) $(6.22) $(0.21) Non-GAAP diluted net income (loss) per share $(0.11) $0.29 $(0.43) $0.72 Shares used to compute diluted net income (loss) per share: GAAP 62,333 56,954 61,383 54,006

Non-GAAP 62,333 61,345 61,383 58,994 _________

1) Certain reclassifications have been made to prior period amounts to conform to SiRF's current period presentation. Certain amounts of amortization of acquisition-related intangible assets have been reclassed and are being presented as a component of cost of revenue. Previously, SiRF had presented these amounts as a component of operating expense. USE OF NON-GAAP FINANCIAL INFORMATION:

To supplement the company's condensed consolidated financial statements presented on a GAAP basis, SiRF uses non-GAAP additional measures of gross profit, operating income, net income and net income per share adjusted to exclude certain expenses it believes appropriate to enhance an overall understanding of SiRF's past financial performance and also its prospects for the future. We present such non-GAAP financial measures in reporting our financial results to provide investors with an additional tool to evaluate our operating results. Because these non-GAAP measures are not calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP.

SiRF management uses each of the non-GAAP financial measures internally to understand, manage and evaluate our business. SiRF believes it is useful for itself and investors to review, as applicable, both GAAP information, which includes stock-based compensation expense, amortization of acquisition-related intangibles assets, expenses related to acquisition-related contingent payments, restructuring charges, note receivable impairment, goodwill impairment, acquisition-related intangibles impairment, acquired in-process research and development expense, fair value adjustments on acquisition- related inventory and adjustments to normalize the income tax provision, and the non-GAAP measures, which exclude these amounts, in order to assess the performance of our continuing operations and for planning and forecasting in future periods. Each of these non-GAAP measures is intended to provide investors with an understanding of our operational results and trends that enables them to analyze our base financial and operating performance and facilitate period-to-period comparisons and analysis of operational trends. SiRF believes each of these non-GAAP financial measures is useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making.

Our non-GAAP financial measures reflect adjustments based on the following items:

A) Stock-based compensation expense: Our operating expenses include stock-based compensation expense recorded pursuant to SFAS No. 123R, which requires us to recognize a non-cash expense related to the fair value of all our employee stock-based compensation awards. We believe it is useful to highlight the effect of this stock compensation expense in our condensed statement of operations. However, stock-based compensation is a key incentive offered to our employees, and we believe it contributed to the revenue earned during the period and will contribute to our future revenue generation. Stock compensation expenses will recur in future periods. B) Amortization of acquisition-related intangible assets: SiRF has excluded the effects of amortization of acquisition-related intangible assets from our non-GAAP net loss because these costs are associated with the acquisition of companies that would not have otherwise been incurred. This non-GAAP adjustment is intended to reflect acquisition- related expense incurred that is not directly associated with our continuing operations. C) Acquisition-related contingent payments: SiRF has excluded the effects of compensation expense recorded in relation to acquisition-related contingent payments from our non-GAAP net loss because these costs are associated with the acquisition of companies that would not have otherwise been incurred. This non-GAAP adjustment is intended to reflect additional acquisition-related payments that are not directly associated with our continuing operations. D) Restructuring charges: SiRF has incurred charges associated with the restructuring plans that were adopted in March 2008 and July 2008 that otherwise would not have been incurred and therefore we have excluded the effects of these charges from our non-GAAP net loss. This non-GAAP adjustment is intended to reflect restructuring costs that are not directly associated with our continuing operations. E) Note receivable impairment: SiRF has incurred charges for impairment on a note receivable that otherwise would not have been incurred as a result of the carrying value exceeding the fair value. SiRF has excluded the effects of these charges from our non-GAAP net loss. These non-GAAP adjustments are intended to reflect one-time impairment charges and are not directly associated with our continuing operations. F) Goodwill impairment: SiRF has incurred charges for goodwill impairment as a result of the carrying value exceeding the implied fair value and that otherwise would not have been incurred. SiRF has excluded the effects of these charges from our non-GAAP net loss. This non-GAAP adjustment is intended to reflect one-time impairment charges that are not directly associated with our continuing operations. G) Acquisition-related intangibles impairment: SiRF has incurred charges for acquisition-related intangibles impairment as a result of the carrying value exceeding the fair value and that otherwise would not have been incurred. SiRF has excluded the effects of these charges from our non-GAAP net loss. This non-GAAP adjustment is intended to reflect one-time impairment charges that are not directly associated with our continuing operations. H) Acquired in-process research and development expense: SiRF incurred a one-time charge in connection with the acquisition of Centrality during the third quarter of 2007 that otherwise would not have been incurred and therefore we have excluded the effects of this charge from our non- GAAP net income. In-process research and development consists of the estimated fair value of technology projects which, as of the acquisition date, had not yet reached technological feasibility and there are no future alternative uses that exist. We believe it is useful for investors to understand the effect of this expense on our statement of operations. This non-GAAP adjustment is intended to reflect acquisition-related expense incurred that is not directly associated with our continuing operations. I) Fair value adjustments on acquisition-related inventory: SiRF has excluded the effects of fair value adjustments on acquisition-related inventory that was subsequently sold to end customers during the third quarter of 2007 from our non-GAAP net income because these costs are associated with the acquisition of companies that would not have otherwise been incurred. This non-GAAP adjustment is intended to reflect acquisition-related expense incurred that is not directly associated with our continuing operations. J) Provision for income taxes: In 2008, SiRF has recorded valuation allowances against deferred tax assets because it is more likely than not that the deferred tax assets will not be realized and otherwise would not have been incurred. SiRF has excluded the effects of these charges from our non-GAAP net loss. These Non-GAAP adjustments are intended to normalize the tax effects for the reporting periods. In 2007, SiRF has excluded the effects of a reduction to our tax benefit resulting from revisions to prior period estimated R&D tax credits from our non-GAAP operating results. This reduction in estimated R&D tax credits resulted from a R&D tax credit study for the years 2005 - 2006. This non-GAAP adjustment is intended to reflect revisions to our tax provision that are not directly associated with our current period operations.

SiRF Technology Holdings, Inc.

CONTACT: Dennis Bencala of SiRF Technology Holdings, Inc.,
+1-408-392-8314, dbencala@sirf.com

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

Atmel Reports Third Quarter 2008 Financial ResultsAchieves Highest Gross Profit Margins Since 2001

SAN JOSE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Atmel(R) Corporation today announced financial results for the quarter ended September 30, 2008.

-- GAAP Basis: -- Revenues of $400.0 Million; Gross Profit Margin of 39.5%; Net Loss of $(4.7) Million, or $(0.01) per diluted share -- Third Quarter Operating Cash Flows of $67 Million -- Non-GAAP Basis: -- Revenues of $400.0 Million; Gross Profit Margin of 39.8%; Net Income of $42.6 Million, or $0.09 per diluted share After Previously Announced One-Time Conversion of European Distributors to Sell-Through Model

On a GAAP basis which includes a one-time reduction of approximately $19.9 million relating to the previously announced conversion of European distributors to a sell-through model from a sell-in model, revenues for the third quarter of 2008 were $400.0 million. As a result, third quarter revenues decreased 5.0% compared to $420.9 million for the second quarter of 2008 and decreased 4.3% compared to $418.1 million for the third quarter of 2007. Net loss for the third quarter of 2008 totaled $(4.7) million or $(0.01) per diluted share. This compares to net loss of $(4.9) million or $(0.01) per diluted share for the second quarter of 2008 and net income of $16.6 million or $0.03 per diluted share for the year-ago quarter.

Excluding the one-time conversion, management estimates third quarter revenues would have decreased 0.2% sequentially and grew 0.4% compared to the year-ago quarter. Management estimates the one-time revenue adjustment and associated margin impact had the effect of reducing net income by $10.0 million or $0.02 per diluted share for the third quarter of 2008 on both a GAAP and non-GAAP basis.

Non-GAAP net income (including the accounting adjustments for conversion of European distributors to sell-through model) for the third quarter of 2008 totaled $42.6 million or $0.09 per diluted share compared to $17.3 million or $0.04 per diluted share for the second quarter of 2008 and $22.8 million or $0.05 per diluted share for the year-ago quarter. Management estimates non-GAAP net income (excluding the accounting adjustments for conversion of European distributors to sell-through model) for the third quarter of 2008 would have totaled $52.7 million or $0.11 per diluted share.

"Atmel's significantly improved gross profit margins, the highest achieved in seven years, reflect the substantial improvement of our manufacturing operations as well as the strength of our microcontroller and other core businesses," said Steven Laub, Atmel's President and Chief Executive Officer. "During the quarter, we launched a number of new products in our microcontroller business that are receiving strong acceptance from Atmel's customers, and we anticipate continued market share gains. In addition, we took further steps to enhance the Company's manufacturing operations with the announced sale of our wafer fab in Germany and restructuring initiatives in France. While further actions are underway, the benefits we are already realizing from Atmel's transformation are a clear indication that we are making significant progress in unlocking Atmel's full potential and maximizing shareholder value."

Gross profit, as a percent of revenue, was 39.5% for the third quarter of 2008. This compares to gross profit of 36.5% for the second quarter of 2008 and 35.6% for the year-ago quarter. The 300 basis points sequential improvement to gross profit was driven primarily by improved manufacturing utilization as a result of the Company's strategic restructuring initiatives, productivity improvements, and by a stronger mix of higher margin microcontroller and other core products.

Operating loss was $(11.3) million for the third quarter of 2008, or (2.8)% of revenue. This compares to an operating profit of $0.2 million for the second quarter of 2008 and $25.4 million for the third quarter of 2007. Included in the third quarter 2008 operating loss was $41.6 million of charges related to restructuring, asset impairment, acquisition, and grant repayments. Stock-based compensation expense for the third quarter of 2008 was $7.4 million, compared to $6.4 million for the second quarter of 2008 and $4.9 million for the year-ago quarter.

Income tax benefit was $4.1 million for the third quarter of 2008. This compares to an income tax provision of $4.3 million for the second quarter of 2008 and $10.1 million for the third quarter of 2007.

Combined cash balances (cash and cash equivalents plus short-term investments) totaled $420.9 million at the end of the third quarter of 2008, an increase of $45.1 million from the end of the prior quarter and a decrease of $9.0 million from the year-end balance at December 31, 2007. Cash provided from operations totaled approximately $67.0 million for the third quarter of 2008 compared to $50.0 million for the second quarter of 2008 and $45.0 million for the third quarter of 2007.

The Company's effective average exchange rate in the third quarter of 2008 was $1.54 to the euro, compared to $1.56 to the euro in the second quarter of 2008 and $1.36 to the euro in the year-ago period.

Third Quarter 2008 and Recent Operational Highlights -- Announced the Sale of the Manufacturing Operation in Heilbronn, Germany to TSH(UK) Limited -- Initiated Redundancy Plan in France -- Achieved highest gross profit margin in seven years and 400 basis point improvement since the first quarter of 2008 -- On track to achieve more than $125 million of cost savings from transformation plan in 2008, well in excess of $80 million to $95 million target Recent Product Highlights -- Announced New Family of Touch Screen Solutions Enabling Two Touch Gestures for User Interfaces -- Announced 6-Channel Touch Controller With LED Driver Adding Reliability and Component Reduction -- ARM Embedded MPU Voted Top Five Microcontroller by 2008 Portable Design China Reader Survey -- Awarded Common Criteria EAL4+ Certification for Atmel's Secure 32-bit ARM Microcontroller -- Introduced a Single-chip Li-ion Battery Management Family Enhancing Battery Life and Safety -- Introduced World's First 1.8V 8-Megabit Serial Flash for Low Power Designs Business Outlook

The Company currently anticipates fourth quarter 2008 revenues will be down 3% to up 3% from the $400.0 million recognized in the third quarter of 2008. Due to the continued actions underway as part of the Company's transformation plan, Atmel expects to see continued improvement in gross profit margins.

Non-GAAP

Non-GAAP net income excludes charges related to restructuring activities, acquisitions, grant repayments, asset impairment charges (recovery) and stock-based compensation, as well as the loss (gain) on the sale of assets and the income tax effect of these excluded items. A reconciliation of GAAP results to non-GAAP results is included following the financial statements below.

Conference Call

Atmel will hold a teleconference at 2:00 p.m. PT today to discuss the third quarter 2008 financial results. The conference call will be webcast live and can also be monitored by dialing 1-800-374-0405 or 1-706-634-5185. The conference ID number is 70428255 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 2:00 p.m. PT start time to ensure a timely connection. The webcast can be accessed at http://www.atmel.com/ir/ and will be archived for 12 months.

A replay of the October 29, 2008 conference call will be available today at approximately 5:00 p.m. PT and will run for 48 hours. The replay access numbers are 1-800-642-1687 within the U.S. and 1-706-645-9291 for all other locations. The access code is 70428255.

About Atmel

Atmel is a worldwide leader in the design and manufacture of microcontrollers, advanced logic, mixed-signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel provides the electronics industry with complete system solutions focused on consumer, industrial, security, communications, computing and automotive markets.

Safe Harbor for Forward-Looking Statements

Information in this release regarding Atmel's forecasts, outlook, expectations and beliefs are forward-looking statements that involve risks and uncertainties. These statements include statements about new product introductions, markets for our products and market share gains, restructuring initiatives, manufacturing optimization, cost savings strategies and future operating and financial performance. All forward-looking statements included in this release are based upon information available to Atmel as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include general economic conditions, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new products and technologies, ability to ramp new products into volume production, industry wide shifts in supply and demand for semiconductor products, industry and/or Company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets and the impact of foreign exchange rates, the inability to realize the anticipated benefits of our recent strategic transactions, restructuring plans and other initiatives in a timely manner or at all, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, impact of Microchip's and ON Semiconductor's unsolicited acquisition proposal and the Company's response thereto, the market price of our common stock, unfavorable results of legal proceedings and other risks detailed from time to time in Atmel's SEC reports and filings, including our Form 10-K for the year ended December 31, 2007, filed on February 29, 2008, and our subsequent Form 10-Q reports.

Investor Contact: Media Contact: Robert Pursel Barrett Golden / Sharon Stern Director of Investor Relations Joele Frank, Wilkinson Brimmer Katcher 408-487-2677 212-355-4449 Atmel Corporation Condensed Consolidated Balance Sheets (In thousands) (Unaudited) September 30, June 30, December 31, 2008 2008 2007 Current assets Cash and cash equivalents $394,231 $354,003 $374,130 Short-term investments 26,702 21,786 55,817 Accounts receivable, net 220,978 220,956 209,189 Inventories 315,358 336,415 357,301 Current assets held for sale 10,537 - - Prepaids and other current assets 83,736 94,215 88,781 Total current assets 1,051,542 1,027,375 1,085,218 Fixed assets, net 407,024 471,569 579,566 Goodwill and intangible assets, net 98,540 109,395 19,552 Non-current assets held for sale 2,357 - - Other assets 35,184 42,118 18,417 Total assets $1,594,647 $1,650,457 $1,702,753 Current liabilities Current portion of long-term debt $131,383 $133,654 $142,471 Trade accounts payable 109,976 127,596 191,856 Accrued and other liabilities 225,793 227,225 266,987 Liabilities held for sale 5,368 - - Deferred margin on shipments to distributors 39,237 19,541 19,708 Total current liabilities 511,757 508,016 621,022 Long-term debt less current portion 15,304 18,641 20,408 Long-term liabilities held for sale 23,986 - - Other long-term liabilities 207,267 245,738 237,844 Total liabilities 758,314 772,395 879,274 Stockholders' equity 836,333 878,062 823,479 Total liabilities and stockholders' equity $1,594,647 $1,650,457 $1,702,753 Atmel Corporation Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September June September September September 30, 30, 30, 30, 30, 2008 2008 2007 2008 2007 Net revenues $400,008 $420,908 $418,097 $1,232,153 $1,213,657 Operating expenses Cost of revenues 241,999 267,382 269,063 774,564 783,044 Research and development 63,856 68,218 63,609 198,451 200,174 Selling, general and administrative 63,898 68,573 58,518 196,033 184,458 Acquisition-related charges 6,690 6,709 - 17,110 - Charges for grant repayments 291 292 1,189 464 1,189 Restructuring charges 26,625 8,676 1,386 63,209 528 Loss (gain) on sale of assets - 810 - (29,948) - Asset impairment charges (recovery) 7,969 - (1,057) 7,969 (1,057) Total operating expenses 411,328 420,660 392,708 1,227,852 1,168,336 (Loss) income from operations (11,320) 248 25,389 4,301 45,321 Interest and other income (expense), net 2,530 (859) 1,299 (3,716) 2,888 (Loss) income before income taxes (8,790) (611) 26,688 585 48,209 Income tax benefit (provision) 4,052 (4,296) (10,135) (3,442) (2,038) Net (loss) income $(4,738) $(4,907) $16,553 $(2,857) $46,171 Basic net (loss) income per share: Net (loss) income $(0.01) $(0.01) $0.03 $(0.01) $0.09 Weighted-average shares used in basic net (loss) income per share calculations 447,013 445,793 485,540 445,826 487,731 Diluted net (loss) income per share: Net (loss) income $(0.01) $(0.01) $0.03 $(0.01) $0.09 Weighted-average shares used in diluted net (loss) income per share calculations 447,013 445,793 489,791 445,826 492,747 Atmel Corporation Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net Income (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September June September September September 30, 30, 30, 30, 30, 2008 2008 2007 2008 2007 GAAP net (loss) income $(4,738) $(4,907) $16,553 $(2,857) $46,171 Special items: Stock-based compensation expense 7,426 6,353 4,893 20,086 11,506 Acquisition-related charges 6,690 6,709 - 17,110 - Charges for grant repayments 291 292 1,189 464 1,189 Restructuring charges 26,625 8,676 1,386 63,209 528 Loss (gain) on sale of assets - 810 - (29,948) - Asset impairment charges (recovery) 7,969 - (1,057) 7,969 (1,057) Income tax effect of non-GAAP items (1,653) (658) (160) (2,811) (300) Total special items 47,348 22,182 6,251 76,079 11,866 Non-GAAP net income $42,610 $17,275 $22,804 $73,222 $58,037 Diluted non-GAAP net income per share: Net income $0.09 $0.04 $0.05 $0.16 $0.12 Excluding impact of conversion of European distributors to sell through model: Revenue from conversion of European distributors to sell through model 19,891 - - 19,891 - Cost of revenues from conversion of European distributors to sell through model (9,183) (9,183) Income Tax effect from conversion of European distributors to sell through model (664) - - (664) - Total impact from conversion of European distributors to sell through model 10,044 - - 10,044 - Non-GAAP net income from conversion of European distributors to sell through model $52,654 $17,275 $22,804 $83,266 $58,037 Impact of conversion to non-GAAP net income per diluted share $0.02 $- $- $0.02 $- Non-GAAP net income per diluted share excluding impact of conversion $0.11 $0.04 $0.05 $0.18 $0.12 Atmel Corporation Reconciliation of GAAP Gross Profit Margins to Non-GAAP Gross Profit Margins (In thousands, except percentages) (Unaudited) Three Months Ended Nine Months Ended September June September September September 30, 30, 30, 30, 30, 2008 2008 2007 2008 2007 Net revenues $400,008 $420,908 $418,097 $1,232,153 $1,213,657 Cost of revenues 241,999 267,382 269,063 774,564 783,044 GAAP gross profit margin percentage 39.5% 36.5% 35.6% 37.1% 35.5% Stock-based compensation expense in costs of revenues (1,087) (984) (487) (2,908) (1,488) Non-GAAP cost of revenues 240,912 266,398 268,576 771,656 781,556 Non-GAAP gross profit margin percentage 39.8% 36.7% 35.8% 37.4% 35.6% Atmel Corporation Supplemental Financial Information (Non-GAAP) (In thousands, except percentages and per share data) ( Unaudited) Including Excluding adjustments adjustments for for EU Distributor EU Distributor As Reported Conversion Conversion (GAAP) (Non-GAAP) (Non-GAAP) Revenue $400,008 $400,008 $419,899 Gross Profit 158,009 159,096 169,804 Gross Profit % 39.5% 39.8% 40.4% Operating Income (11,320) 37,681 48,389 Operating Income % -2.8% 9.4% 11.5% Net Income (4,738) 42,610 52,654 Net Income % -1.2% 10.7% 12.5% Net (loss) income per share (0.01) 0.09 0.11 Notes to Non-GAAP Financial Measures

To supplement its consolidated financial results presented in accordance with GAAP, Atmel uses non-GAAP financial measures, including non-GAAP gross profit margin, non-GAAP net income and non-GAAP net income per diluted share, which are adjusted from the most directly comparable GAAP financial measures to exclude certain items, as shown above and described below. Management believes that these non-GAAP financial measures reflect an additional and useful way of viewing aspects of Atmel's operations that, when viewed in conjunction with Atmel's GAAP results, provide a more comprehensive understanding of the various factors and trends affecting Atmel's business and operations.

Atmel uses each of these non-GAAP financial measures for internal purposes and believes that these non-GAAP measures provide meaningful supplemental information regarding operational and financial performance. Management uses these non-GAAP measures for strategic and business decision making, internal budgeting, forecasting and resource allocation processes.

Atmel believes that providing these non-GAAP financial measures, in addition to the GAAP financial results, is useful to investors because the non-GAAP financial measures allow investors to see Atmel's results "through the eyes" of management as these non-GAAP financial measures reflect Atmel's internal measurement processes. Management believes that these non-GAAP financial measures enable investors to better assess changes in each key element of Atmel's operating results across different reporting periods on a consistent basis. Thus, management believes that each of these non-GAAP financial measures provides investors with another method for assessing Atmel's operating results in a manner that is focused on the performance of its ongoing operations. In addition, these non-GAAP financial measures facilitate comparisons to Atmel's historical operating results and to competitors' operating results.

There are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. In addition, non-GAAP financial measures may be limited in value because they exclude certain items that may have a material impact upon Atmel's reported financial results. Management compensates for these limitations by providing investors with reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for or superior to the most directly comparable GAAP financial measures. The non-GAAP financial measures supplement, and should be viewed in conjunction with, GAAP financial measures. Investors should review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in above.

As presented in the "Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net Income" tables above, each of the non-GAAP financial measures excludes one or more of the following items:

-- Stock-based compensation expense.

Stock-based compensation expense relates primarily to equity awards such as stock options and restricted stock units. Stock-based compensation is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond Atmel's control. As a result, management excludes this item from Atmel's internal operating forecasts and models. Management believes that non-GAAP measures adjusted for stock-based compensation provide investors with a basis to measure Atmel's core performance against the performance of other companies without the variability created by stock-based compensation as a result of the variety of equity awards used by other companies and the varying methodologies and assumptions used.

-- Acquisition-related charges.

Acquisition-related charges include: (1) in-process research and development, which relates to projects in process as of the acquisition date that have not reached technological feasibility and are immediately expensed, (2) amortization of intangibles, which include acquired intangibles such as customer relationships, backlog, core developed technology, trade name and non-compete agreement, and (3) contingent compensation expense, which include compensation resulting from the employment retention of certain key employees established in accordance with the terms of the acquisitions. In most cases, these acquisition-related charges are not factored into management's evaluation of potential acquisitions or Atmel's performance after completion of acquisitions, because they are not related to Atmel's core operating performance. In addition, the frequency and amount of such charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired. Excluding acquisition-related charges from non-GAAP measures provides investors with a basis to compare Atmel against the performance of other companies without the variability caused by purchase accounting.

-- Charges for grant repayments.

Grant repayments primarily relate to contractual obligations to repay incentive amounts received from various government entities recorded in prior periods (including interest) as a result of restructuring activity. Atmel excludes these amounts from non-GAAP financial measures primarily because these costs are not incurred on an on-going basis, consistent with restructuring charges and other non-recurring types of charges included in the condensed consolidated statements of operations.

-- Restructuring charges.

Restructuring charges primarily relate to expenses necessary to make infrastructure-related changes to Atmel's operating costs. Restructuring charges are excluded from non-GAAP financial measures because they are not considered core operating activities and such costs have not historically occurred in each year. Although Atmel has engaged in various restructuring activities in the past, each has been a discrete event based on a unique set of business objectives. Management believes that it is appropriate to exclude restructuring charges from Atmel's non-GAAP financial measures, as it enhances the ability of investors to compare Atmel's period-over-period operating results from continuing operations.

-- Loss (gain) on sale of assets.

Atmel recognizes losses (gains) resulting from the sale of certain non- strategic business assets that no longer align with Atmel's long-term operating plan. Atmel excludes these items from its non-GAAP financial measures primarily because these losses (gains) are one-time in nature and generally not reflective of the ongoing operating performance of Atmel's business and can distort the period-over-period comparison.

-- Asset impairment charges (recovery).

Atmel classifies assets as held for sale when certain criteria are met, including when the decision is made to sell the asset. The Company then records an impairment charge (recovery) as the difference between the fair value, less any selling costs, and the carrying value. Management believes that it is appropriate to exclude these charges from Atmel's non-GAAP financial measures, as it enhances the ability of investors to compare Atmel's period-over-period operating results from continuing operations.

-- Income tax effect of non-GAAP items.

Atmel adjusts for the income tax effect resulting from the non-GAAP adjustments as described above.

-- Revenue and cost of revenue from conversion of distributors to sell- through revenue model.

In the three months ended September 30, 2008, Atmel converted certain of its distributors in Europe from a "sell-in" revenue recognition model to a "sell through" or "ship and debit" model. This conversion resulted in a one- time reduction in revenue of approximately $19.9 million, and an increase in cost of revenue of approximately $9.2 million, in the three months ended September 30, 2008. Atmel excludes these items from certain of its non-GAAP financial measures primarily because these items are one-time in nature and generally not reflective of the ongoing operating performance of Atmel's business and can distort the period-over-period comparison.

Atmel Corporation

CONTACT: Investors, Robert Pursel, Director of Investor Relations of
Atmel Corporation, +1-408-487-2677; or Media, Barrett Golden, or Sharon Stern,
both of Joele Frank, Wilkinson Brimmer Katcher, +1-212-355-4449, for Atmel
Corporation

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

SST Reports Third Quarter 2008 Financial Results

SUNNYVALE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- SST (Silicon Storage Technology, Inc.) , a leader in flash memory technology, today announced results for the third quarter ended Sept. 30, 2008.

Net revenues for the third quarter were $92.4 million compared with $83.7 million in the second quarter of 2008 and with $107.5 million in the third quarter of 2007. Product revenues for the third quarter of 2008 were $79.8 million, compared with $71.1 million in the second quarter of 2008 and with $97.8 million in the third quarter of 2007. Revenues from technology licensing for the third quarter were $12.6 million, comparable to the second quarter of 2008. Technology licensing revenues in the third quarter of 2007 were $9.7 million.

Net income from operations for the third quarter was $4.1 million compared with a net loss from operations of $5.9 million in the second quarter of 2008 and with net income from operations of $2.4 million in the third quarter of 2007.

Net income for the third quarter of 2008 was $4.9 million, or $0.05 per share, based on approximately 99.7 million diluted shares. By comparison, the company recorded a net loss of $9.6 million, or a loss of $0.09 per share in the second quarter of 2008, based on approximately 101.8 million diluted shares. For the third quarter of 2007, SST reported a net loss of $16.6 million, or a loss of $0.16 per share on approximately 104.2 million diluted shares.

SST finished the third quarter of 2008 with $132.8 million in cash, cash equivalents, short-term investments, and long-term marketable securities, down approximately $16.1 million from $148.9 million at June 30, 2008. During the third quarter, the company made common stock repurchases totaling 2.7 million shares at an aggregate cost of approximately $8.6 million.

Management Qualitative Comments

"Our third quarter revenues were at the high end of our guidance range and our net income was substantially better than our plan due to several favorable, non-recurring adjustments and reduced operating expenses," said Bing Yeh, president and CEO. "However, since September we have seen a significant drop in our new bookings and are acutely aware of a rapidly weakening global economy. Therefore, we are reacting accordingly to reduce our operating expenses with the goal of returning our company to profitability for the benefit of our shareholders, customers and employees. We believe that the depth and breadth of our core business, the investments we have made in new products and technologies, and our strong balance sheet will allow us to weather this economic downturn and will drive growth in revenues and profits for our company in the subsequent recovery."

Fourth Quarter 2008 Outlook

SST expects its fourth quarter revenues to be between $63 million and $69 million. Gross margin is expected to be between 31 and 34 percent, subject to the risk of changing market conditions. Total operating expenses are expected to be between $28 million and $29 million. Net loss per share is expected to be between $0.07 and $0.12.

Conference Call Dial-in Information

SST will hold a conference call to discuss its financial results today at 1:30 p.m. PDT. Those wishing to participate in the conference call should dial (800) 288-8975, international participants please dial (651) 224-7497, using the password "SST" at approximately 1:20 p.m. PDT. A replay of the call will be available for one week by dialing (800) 475-6701, international participants dial (320) 365-3844, using the access code 963617. A webcast replay of the conference call will be available until the company's next conference call on the company's Web site at http://www.sst.com/events.

About Silicon Storage Technology, Inc.

Headquartered in Sunnyvale, California, SST designs, manufactures and markets a diversified range of memory and non-memory products for high volume applications in the digital consumer, networking, wireless communications and Internet computing markets. Leveraging its proprietary, patented SuperFlash technology, SST is a leading provider of nonvolatile memory solutions with product families that include various densities of high functionality flash memory components and flash mass storage products. The company also offers its SuperFlash technology for embedded applications through its broad network of world-class manufacturing partners and technology licensees, including TSMC, which offers it under its trademark Emb-FLASH. SST's non-memory products include NAND controller-based products, smart card ICs and modules, flash microcontrollers and radio frequency ICs and modules. Further information on SST can be found on the company's Web site at http://www.sst.com/.

Forward-Looking Statements

Except for the historical information contained herein, this news release contains forward-looking statements regarding memory and non-memory market conditions, SST's future financial performance, the launch, design cycle and performance of new products, SST's licensing business, SST's ability to diversify its business, the transition of SST's products to smaller geometrics, and SST's ability to bring new products to market, all of which involve risks and uncertainties. These risks may include timely development, acceptance and pricing of new products, the terms, conditions and revenue recognition issues associated with licensees' royalty payments, the impact of competitive products and pricing, and general economic conditions as they affect SST's customers, as well as other risks detailed from time to time in the company's periodic reports, including the Annual Report on Form 10-K for the year ended December 31, 2007 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2008. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, SST disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

For more information about SST and the company's comprehensive list of product offerings, please call 1-888/SST-CHIP. Information can also be requested via email to literature@sst.com or through SST's Web site at http://www.sst.com/. SST's head office is located at 1171 Sonora Court, Sunnyvale, Calif.; telephone: 408/735-9110; fax: 408/735-9036. The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc. All other trademarks or registered trademarks are the property of their respective holders.

For More Information Contact: Leslie Green Green Communications Consulting, LLC (650) 312-9060 -- FINANCIAL TABLES TO FOLLOW -- Silicon Storage Technology, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (unaudited) (in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, --------------------- ---------------------- 2007 2008 2007 2008 --------- -------- ---------- --------- Net revenues: Product revenues $97,794 $79,801 $276,282 $220,572 Technology licensing 9,709 12,597 28,088 36,611 --------- -------- ---------- --------- Total net revenues 107,503 92,398 304,370 257,183 Cost of revenues 73,609 61,421 218,362 176,548 --------- -------- ---------- --------- Gross profit 33,894 30,977 86,008 80,635 --------- -------- ---------- --------- Operating expenses: Research and development 14,685 14,260 42,012 45,095 Sales and marketing 7,397 6,713 21,701 21,114 General and administrative 7,103 5,931 21,448 20,835 Other non-recurring charges 2,319 - 6,324 - --------- -------- ---------- --------- Total operating expenses 31,504 26,904 91,485 87,044 --------- -------- ---------- --------- Income (loss) from operations 2,390 4,073 (5,477) (6,409) Impairment of equity investments (19,400) - (19,400) (234) Other income, net 3,499 2,313 7,144 4,397 --------- -------- ---------- --------- Income (loss) before provision for (benefit from) income taxes and pro rata share of loss from equity investments (13,511) 6,386 (17,733) (2,246) Provision for (benefit from) income taxes 1,233 (438) 2,397 (5,098) --------- -------- ---------- --------- Income (loss) before pro rata share of loss from equity investments (14,744) 6,824 (20,130) 2,852 Pro rata share of loss from equity investments 1,861 1,903 5,308 6,040 --------- -------- ---------- --------- Net income (loss) $(16,605) $4,921 $(25,438) $(3,188) ========== ========= =========== ========== Net income (loss) per share - basic $(0.16) $0.05 $(0.24) $(0.03) ========== ========= =========== ========== Shares used in per share calculation - basic 104,198 99,186 104,113 101,527 ========== ========= =========== ========== Net income (loss) per share - diluted $(0.16) $0.05 $(0.24) $(0.03) ========== ========= =========== ========== Shares used in per share calculation - diluted 104,198 99,676 104,113 101,527 ========== ========= =========== ========== Silicon Storage Technology, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) (in thousands) December 31, September 30, 2007 2008 ---------- --------- ASSETS Current assets: Cash and cash equivalents $118,157 $63,631 Short-term investments 44,067 47,435 Trade accounts receivable, net 56,313 47,843 Inventories 50,178 65,298 Other current assets 6,055 6,235 ---------- --------- Total current assets 274,770 230,442 Property and equipment, net 18,247 19,803 Long-term marketable equity securities 36,160 23,544 Long-term marketable securities - 21,749 Goodwill and intangible assets, net 18,612 16,585 Other assets 55,676 51,273 ---------- --------- Total assets $403,465 $363,396 ========== ========= LIABILITIES Current liabilities: Trade accounts payable $42,067 $40,433 Accrued expenses and other liabilities 28,293 17,729 Deferred revenue 3,004 5,211 ---------- --------- Total current liabilities 73,364 63,373 Other liabilities 7,548 7,568 ---------- --------- Total liabilities 80,912 70,941 ---------- --------- SHAREHOLDERS' EQUITY Common stock 434,905 420,245 Accumulated other comprehensive income 31,239 18,989 Accumulated deficit (143,591) (146,779) ---------- --------- Total shareholders' equity 322,553 292,455 ---------- --------- Total liabilities and shareholders' equity $403,465 $363,396 ========== ========= Silicon Storage Technology, Inc. and Subsidiaries Supplemental Data Percentage of Change in Gross Product Revenue Revenue ----------------------- -------------- 3Q07 to 2Q08 to 3Q07 2Q08 3Q08 3Q08 3Q08 ----------------------- -------------- Product Revenue By Ship-To Location North America 5% 5% 4% (35%) (12%) Total International 95% 95% 96% (16%) 15% Europe 7% 7% 7% (14%) 11% Japan 9% 9% 8% (26%) 13% Korea 7% 4% 5% (48%) 25% China 38% 32% 31% (32%) 10% Taiwan 25% 38% 35% 15% 4% Other Far East 9% 5% 10% 0% 117% Product Revenue by Application Digital Consumer 39% 32% 30% (38%) 5% Internet Computing 20% 21% 20% (14%) 7% Networking 10% 12% 10% (20%) (7%) Wireless Communications 31% 35% 40% 5% 29% Total 100% 100% 100% (17%) 13% Licensing Revenue as a % of Total Revenue 9% 15% 13% 30% 0%

Silicon Storage Technology, Inc.

CONTACT: Leslie Green of Green Communications Consulting, LLC,
+1-650-312-9060, for Silicon Storage Technology, Inc.

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

Sanmina-SCI Corporation Promotes Hari Pillai to President and Chief Operating Officer

SAN JOSE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Sanmina-SCI Corporation (the "Company"/ Nasdaq: SANM), a leading global electronics manufacturing services (EMS) company, today announced the promotion of Hari Pillai to President and Chief Operating Officer. Mr. Pillai has held various senior management positions during his 14 year career at Sanmina-SCI, most recently as President of Global EMS Operations. Mr. Pillai pioneered Sanmina- SCI's entry in the EMS market and was instrumental in the Company's strategic planning and implementation that led to Sanmina-SCI's diversification and market leadership in various end-markets such as Medical and Defense & Aerospace.

"Hari is a long standing and well respected member of our management team who has a clear understanding of the industry and the company's strategy, goals and objectives. He is a results oriented leader with a proven track record of consistently delivering positive results. His broad experience in all facets of the business makes him a natural successor to the President and Chief Operating Officer role," stated Jure Sola.

Mr. Pillai began his career at Sanmina-SCI as Vice President of Assembly (EMS) Operations in 1994. In 2002, he was directly responsible for the successful integration of SCI's and Sanmina's respective EMS Operations in what was then the largest merger in the EMS industry. In 2004, Mr. Pillai was appointed to the role he has held since then of President, Global EMS Operations. Prior to joining Sanmina-SCI, Mr. Pillai's career included a variety of Operations, Product Development and General Management roles at Solectron Corporation (acquired by Flextronics) and at Digital Equipment Corporation (Networks & Communications Division). Mr. Pillai is a graduate of the University of Dublin, Trinity College, where he received his bachelor's degree in Management (B.Sc., Mgmt) and of the National University of Ireland, University College Dublin where he received his Masters in Business (MBS).

"I want to thank Joe Bronson for his support during this past year as he helped the Company strengthen its management team and position Sanmina-SCI for the future. With Joe's support we have had the opportunity to set the foundation for Hari to take over as President and COO. Going forward, Joe will assist me in an advisory capacity as I continue to take advantage of his extensive global operational and financial experience and enable the Company to make further progress," concluded, Sola.

About Sanmina-SCI

Sanmina-SCI Corporation is a leading electronics contract manufacturer serving the fastest-growing segments of the global electronics manufacturing services (EMS) market. Recognized as a technology leader, Sanmina-SCI provides end-to-end manufacturing solutions, delivering superior quality and support to large OEMs primarily in the communications, defense and aerospace, industrial and medical instrumentation, computer technology and multimedia sectors. Sanmina-SCI has facilities strategically located in key regions throughout the world. Information about Sanmina-SCI is available at http://www.sanmina-sci.com/.

SANMF

Sanmina-SCI Corporation

CONTACT: Paige Bombino, Investor Relations of Sanmina-SCI Corporation,
+1-408-964-3610

Web site: http://www.sanmina-sci.com/

Uroplasty Reports Continued Progress During Second Quarter of Fiscal 2009- Second Fiscal Quarter Net Sales of $3.9 Million; 29% Increase Year-Over-Year -- Second Fiscal Quarter U.S. Sales of $2.2 Million; 83% Increase Year-Over-Year -- Multicenter Clinical Study Launched to Expand Reimbursement, Support Marketing -- Conference Call to be Held Today at 3:30 pm Central Time -

MINNEAPOLIS, Oct. 29 /PRNewswire-FirstCall/ -- Uroplasty, Inc. , a medical device company that develops, manufactures and markets innovative proprietary products to treat voiding dysfunctions, today reported financial results for the second quarter of fiscal 2009 ended September 30, 2008. Net sales for the second quarter of fiscal 2009 were $3.9 million, up 29% from $3.0 million in the second quarter of fiscal 2008. U.S. sales were $2.2 million, an increase of 83% from $1.2 million in the second quarter of fiscal 2008.

"During our second fiscal quarter, our team continued to execute our strategies and we generated solid growth," said David Kaysen, President and CEO. "In the U.S., support for the Urgent PC(R) system is continuing to build after the release of the initial results of the OrBIT study in May which demonstrated Urgent PC's efficacy to be comparable to the number-one prescribed pharmaceutical for overactive bladder. In addition, we continued to make progress in building sales of Macroplastique(R), which we introduced in the U.S. market in mid-2007," added Mr. Kaysen.

The Urgent PC system is the only FDA-approved minimally invasive nerve stimulation device designed for office-based treatment of urinary frequency, urinary urgency and urge incontinence -- symptoms often associated with overactive bladder. The system is an office-based, nonsurgical, percutaneous tibial nerve stimulation (PTNS) device that treats these symptoms. Macroplastique is an injectable urethral bulking agent for the treatment of adult-female stress-urinary incontinence primarily due to intrinsic sphincter deficiency.

Fiscal Second Quarter and Six Month Results for the Periods Ended September 30, 2008

-- Net sales for the three months ended September 30, 2008 were $3.9 million, an increase of 29%, compared with $3.0 million for the same period a year ago. Net sales for the six months ended September 30, 2008 were $8.4 million, up 41% from $6.0 million for the same period a year ago. -- Sales to customers in the U.S. for the three months ended September 30, 2008 were $2.2 million, an increase of 83%, compared with $1.2 million in the same period a year ago. This increase was due to the growing effectiveness of the company's sales force and the continued growth in the active Urgent PC customer base. Non-U.S. sales for the three months ended September 30, 2008 were $1.7 million, down 7% from $1.8 million in year ago period. Excluding the translation impact of fluctuations in foreign currency exchange rates, non-U.S. sales declined by approximately 10%. -- Six month sales to customers in the U.S. were $4.4 million, up 99% from $2.2 million for the same period last year. Six month non-U.S. sales were $4.0 million, up 7% from $3.8 million for the same period last year. Excluding the translation impact of fluctuations in foreign currency exchange rates, non-U.S. sales declined by approximately 1%. -- Net loss for the second fiscal quarter ended September 30, 2008 was $561,000, or $0.04 per diluted share versus $1.4 million, or $0.10 per diluted share for the second quarter of last year. For the six months ended September 30, 2008, net loss was $968,000, or $0.06 per diluted share compared with a net loss of $2.2 million, or $0.17 per diluted share for the same period last year. -- Non-GAAP operating performance, which excludes non-cash charges for share-based compensation under SFAS 123 (R), and depreciation and amortization expenses, improved from a loss of approximately $0.6 million and $1.0 million, respectively, for the three and six months ended September 30, 2007, to a (loss) gain of approximately ($98,000) and $8,000, respectively for the three and six months ended September 30, 2008. The improvement in non-GAAP operating performance is attributed to the increase in sales and an improvement in gross margin, partially offset by an increase in cash operating expenses. -- At September 30, 2008, cash and cash equivalents, and short-term investments were $9.0 million compared with $9.2 million at June 30, 2008 and $10.1 million at March 31, 2008.

"Earlier this month, we announced the first patient enrollment in a new, multicenter clinical study that will support our U.S. reimbursement efforts, and is part of a very focused strategy to solidify reimbursement coverage for PTNS," continued Mr. Kaysen. "We are making impressive progress with center and patient enrollment in the new study which compares the Urgent PC system treatment against non-active treatment (placebo or sham treatment). This study design was suggested by professional associations that help to educate third party insurance carriers establish reimbursement for procedures. We anticipate applying to the American Medical Association for a specific "listed" CPT reimbursement code for Urgent PC treatments once the data is compiled and analyzed.

"Meanwhile, we have implemented a comprehensive program designed to educate medical directors of insurance carriers around the country. Physicians using Urgent PC are communicating their successes to these medical directors. In addition, we are in active communication with professional associations who are involved with reimbursement and believe we have the right people and the right resources to proactively address various reimbursement related issues. It is important to remember that reimbursement uncertainties are common with practically every new medical technology. We have been successfully educating the market on the benefits of Urgent PC since we received FDA approval and believe that our strategies to solidify reimbursement coverage are generating positive responses from the market," added Mr. Kaysen.

"As we look to the remainder of fiscal 2009, we still anticipate solid revenue growth over the prior fiscal year, albeit at a lower rate than we previously forecasted. In this challenging market environment we have maintained more than 330 active customers through the end of the second fiscal quarter. We now believe that overall sales in the current fiscal year will grow by approximately 20% over fiscal 2008, and we expect U.S. sales to grow between 30% and 40%. As we have previously discussed, we anticipate spending between $1.1 million and $1.4 million for the new clinical study, substantially all of it in the second half of fiscal 2009. We continue to expect consistent operating income breakeven on a non-GAAP basis, which excludes non-cash and unusual charges, to occur between revenues of $19 million to $20 million," Mr. Kaysen concluded.

Conference Call

Uroplasty will host an audio conference call today at 3:30 pm Central, 4:30 pm Eastern, to review the financial results for the second fiscal quarter of 2009. David Kaysen, President and Chief Executive Officer and Medi Jiwani, Vice President, Chief Financial Officer and Treasurer will host the call. Individuals wishing to participate in the conference call should dial (800) 218-0204 (domestic) or (303) 262-2161 (international). An audio replay will be available two hours after the call for 30 days by dialing (800) 405-2236 (domestic) or (303) 590-3000 (international), with the passcode 11121202#.

About Uroplasty, Inc.

Uroplasty, Inc., headquartered in Minnetonka, Minnesota, with wholly-owned subsidiaries in The Netherlands and the United Kingdom, is a medical device company that develops, manufactures and markets innovative proprietary products for the treatment of voiding dysfunctions. Our primary focus is the continued commercialization of our Urgent PC system, which we believe is the only FDA-approved minimally invasive nerve stimulation device designed for office-based treatment of urinary urgency, urinary frequency and urge incontinence -- symptoms often associated with overactive bladder. We also offer Macroplastique(R) Implants, an injectable bulking agent for the treatment of adult female stress urinary incontinence primarily due to intrinsic sphincter deficiency. Please visit Uroplasty, Inc. at http://www.uroplasty.com/.

Forward Looking Information

This press release contains forward-looking statements, which reflect our best estimates regarding future events and financial performance. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our anticipated results. We discuss in detail the factors that may effect the achievement of our forward-looking statements in our Annual Report on Form 10-K filed with the SEC. These factors include:

-- decisions by government and third party reimbursement agencies as to the rate of reimbursement for our products, or whether reimbursement will be allowed; -- the impact of international currency fluctuations on our cash flows and operating results; -- the impact of technological innovation and competition; acceptance of our products by physicians and patients; -- our intellectual property and the ability to prevent competitors from infringing our rights; -- the effect of government regulation, including when and if we receive approval for marketing products in the United States; -- the results of clinical trials; and -- our continued losses and the possible need to raise additional capital in the future.

We cannot assure you that our clinical trial will produce favorable results, that third-party payors will provide or continue to provide coverage and reimbursement, or reimburse the providers an amount sufficient to cover their costs and expenses, nor can we assure you that we will timely obtain, or even succeed at all at obtaining, a specific "listed" CPT reimbursement code from the AMA for Urgent PC treatments. We further cannot assure that reimbursement or other issues will not further impact our fiscal 2009 results.

For Further Information: Uroplasty, Inc. David Kaysen, President and CEO, or Medi Jiwani, Vice President, CFO, and Treasurer, 952.426.6140 EVC Group Doug Sherk/Dahlia Bailey (Investors) 415.896.6820 Chris Gale/Steve DiMattia (Media) 646.201.5431 UROPLASTY, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended September 30, September 30, 2008 2007 2008 2007 Net sales $3,920,516 $3,039,543 $8,446,138 $5,988,217 Cost of goods sold 549,199 669,041 1,257,166 1,263,253 Gross profit 3,371,317 2,370,502 7,188,972 4,724,964 Operating expenses General and administrative 918,394 1,147,432 1,957,108 1,955,806 Research and development 327,978 426,997 733,498 933,122 Selling and marketing 2,505,598 1,974,583 5,125,632 3,607,372 Amortization of intangibles 210,966 206,482 421,941 423,003 3,962,936 3,755,494 8,238,179 6,919,303 Operating loss (591,619) (1,384,992) (1,049,207) (2,194,339) Other income (expense) Interest income 63,542 65,239 138,656 141,622 Interest expense (6,750) (9,279) (13,585) (20,644) Foreign currency exchange gain (loss) 5,038 (13,877) (732) (15,906) Other, net (4,687) - (4,687) 1,880 57,143 42,083 119,652 106,952 Loss before income taxes (534,476) (1,342,909) (929,555) (2,087,387) Income tax expense 26,487 41,783 38,057 137,940 Net loss $(560,963) $(1,384,692) $(967,612) $(2,225,327) Basic and diluted loss per common share $(0.04) $(0.10) $(0.06) $(0.17) Weighted average common shares outstanding: Basic and diluted 14,916,540 13,342,284 14,916,540 13,162,862 UROPLASTY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2008 March 31, 2008 (unaudited) Assets Current assets: Cash and cash equivalents and short-term investments $9,024,697 $10,146,081 Accounts receivable, net 1,690,285 2,318,604 Income tax receivable 34,445 50,841 Inventories 527,460 558,657 Other 359,598 244,517 Total current assets 11,636,485 13,318,700 Property, plant, and equipment, net 1,546,601 1,638,953 Intangible assets, net 3,778,949 4,200,890 Prepaid pension asset 36,482 26,482 Deferred tax assets 105,961 105,298 Total assets $17,104,478 $19,290,323 Liabilities and Shareholders' Equity Total current liabilities 1,830,420 2,739,933 Long-term debt - less current maturities - 413,279 Deferred rent - less current portion 164,277 180,979 Accrued pension liability 290,744 353,411 Total liabilities 2,285,441 3,687,602 Total shareholders' equity 14,819,037 15,602,721 Total liabilities and shareholders' equity $17,104,478 $19,290,323 UROPLASTY, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows Six Months Ended September 30, 2008 and 2007 (Unaudited) Six Months Ended September 30, 2008 2007 Cash flows from operating activities: Net loss $(967,612) $(2,225,327) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 566,949 529,766 (Gain) loss on disposal of equipment 4,687 (2,771) Share-based consulting expense 36,409 26,005 Share-based compensation expense 453,592 644,637 Deferred income taxes (10,164) 2,474 Deferred rent (17,500) (17,500) Changes in operating assets and liabilities: Accounts receivable 537,959 (498,578) Inventories (11,128) (16,176) Other current assets and income tax receivable (108,041) 64,660 Accounts payable (145,610) 190,508 Accrued liabilities (634,851) (80,460) Accrued pension liability, net (44,772) (305,435) Net cash used in operating activities (340,082) (1,688,197) Cash flows from investing activities: Proceeds from sale of short-term investments 8,808,304 1,800,000 Purchase of short-term investments (7,891,373) (1,200,000) Purchases of property, plant and equipment (130,421) (135,984) Proceeds from sale of equipment - 4,417 Payments for intangible assets - (89,725) Net cash provided by investing activities 786,510 378,708 Cash flows from financing activities: Proceeds from financing obligations - 178,374 Repayment of debt obligations (455,913) (184,458) Net proceeds from issuance of common stock, warrants and option exercise - 768,298 Net cash provided by (used in) financing activities (455,913) 762,214 Effect of exchange rates on cash and cash equivalents (194,967) 93,320 Net decrease in cash and cash equivalents (204,452) (453,955) Cash and cash equivalents at beginning of period 3,880,044 3,763,702 Cash and cash equivalents at end of period $3,675,592 $3,309,747 Supplemental disclosure of cash flow information: Cash paid during the period for interest $13,612 $17,024 Cash paid during the period for income taxes 35,474 38,923 Supplemental disclosure of non-cash financing and investing activities: Purchase of intellectual property funded by issuance of stock $ - $4,658,861

Non-GAAP Financial Measures: The following table reconciles our financial results calculated in accordance with accounting principles generally accepted in the U.S. (GAAP) to non-GAAP financial measures that exclude non-cash charges for share-based compensation under SFAS 123 (R), and depreciation and amortization expenses from gross profit, operating expenses and operating loss. The non-GAAP financial measures used by management and disclosed by us are not a substitute for, or superior to, financial measures and consolidated financial results calculated in accordance with GAAP, and you should carefully evaluate our reconciliations to non-GAAP. We may calculate our non-GAAP financial measures differently from similarly titled measures used by other companies. Therefore, our non-GAAP financial measures may not be comparable to those used by other companies. We have described the reconciliations of each of our non-GAAP financial measures above to the most directly comparable GAAP financial measures.

Management uses our non-GAAP financial measures, and in particular non-GAAP operating loss, for internal managerial purposes because we believe such measures are one important indicator of the strength and the performance of our business as they provide a link to operating cash flow. We also believe that analysts and investors use such measures to evaluate the overall operating performance of companies in our industry, including as a means of comparing period-to-period results and as a means of evaluating our results with those of other companies.

Our non-GAAP operating performance improved from a loss of approximately $0.6 million and $1 million, respectively, for the three and six months ended September 30, 2007 to a (loss) gain of approximately ($98,000) and $8,000, respectively, for the three and six months ended September 30, 2008. We attribute this improvement in non-GAAP operating performance to the increase in sales and an improvement in gross margin rate, offset partially by an increase in cash operating expenses.

Three Months Ended Six Months Ended September 30, September 30, 2008 2007 2008 2007 Gross Profit GAAP gross profit 3,371,317 $2,370,502 7,188,972 $4,724,964 % of sales 86% 78% 85% 79% SFAS 123 (R) share-based compensation 8,879 9,107 25,253 9,686 Depreciation expenses 13,057 13,054 25,847 28,604 Non-GAAP gross profit 3,393,253 2,392,663 7,240,072 4,763,254 Operating Expenses GAAP operating expenses 3,962,936 3,755,494 8,238,179 $6,919,303 SFAS 123 (R) share-based compensation 198,131 494,449 464,748 660,956 Depreciation expenses 62,104 46,379 119,161 78,159 Amortization expenses 210,966 206,482 421,941 423,003 Non-GAAP operating expenses 3,491,735 3,008,184 7,232,329 5,757,185 Operating (Loss) Gain GAAP operating loss (591,619) (1,384,992) (1,049,207) (2,194,339) SFAS 123 (R) share-based compensation 207,010 503,556 490,001 670,642 Depreciation expenses 75,161 59,433 145,008 106,763 Amortization expenses 210,966 206,482 421,941 423,003 Non-GAAP operating (loss) gain (98,482) $(615,521) 7,743 $(993,931)

Uroplasty, Inc.

CONTACT: David Kaysen, President and CEO, or Medi Jiwani, Vice
President, CFO, and Treasurer, both of Uroplasty, Inc., +1-952-426-6140; or
Investors, Doug Sherk, or Dahlia Bailey, +1-415-896-6820, or Media, Chris
Gale, or Steve DiMattia, +1-646-201-5431, all of EVC Group, for Uroplasty,
Inc.

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

Varian, Inc. Reports Strong Fourth Quarter 2008 Results- Sales Up 15%- Non-GAAP Operating Earnings Up 27%, GAAP Operating Earnings Up 32%- Non-GAAP Diluted EPS Up 29%, GAAP Diluted EPS Up 32%

PALO ALTO, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Varian, Inc. (NasdaqGS: VARI) today reported fourth fiscal quarter 2008 revenues of $282.5 million, representing an increase of 15% over revenues of $245.6 million in the fourth quarter of fiscal year 2007, with strong orders and excellent execution during the quarter. The increase in sales was broad-based, with good growth in sales for both industrial (which includes environmental, food and energy) and life science applications. Sales grew in all major geographic regions, with particularly strong growth in Asia Pacific and Latin America. Also, the fourth quarter of fiscal year 2008 was a 14-week quarter compared to 13 weeks for the fourth quarter of fiscal year 2007.

Non-GAAP (adjusted) net earnings for the fourth quarter of fiscal year 2008 increased 23% to $26.0 million, or $0.89 diluted earnings per share, compared to $21.2 million, or $0.69 diluted earnings per share, in the fourth quarter of fiscal year 2007. Adjusted net earnings exclude share-based compensation expense as well as other items outlined in the attached Reconciliations of GAAP to Adjusted Results. Share-based compensation expense was $2.4 million, or $0.06 per diluted share, in the fourth quarter of fiscal year 2008 and $2.0 million, or $0.04 per diluted share, in the fourth quarter of fiscal year 2007. On a GAAP basis, net earnings in the fourth quarter of fiscal year 2008 were $21.7 million, or $0.74 diluted earnings per share, compared to $17.4 million, or $0.56 diluted earnings per share, in the fourth quarter of fiscal year 2007.

Adjusted operating earnings increased 27% to $39.1 million in the fourth quarter of fiscal year 2008, compared to $30.8 million in the fourth quarter last year. Adjusted operating profit margin was a record for any quarter at 13.8% in the fourth quarter of fiscal year 2008, compared to 12.6% in the prior-year quarter. On a GAAP basis, operating earnings were $32.9 million and operating profit margin was 11.6% in the fourth quarter of fiscal year 2008, compared to $24.9 million and 10.1% in the same quarter a year ago.

"We are pleased with our execution in the fourth quarter and have substantially overcome the issues we had in the third quarter," said Garry W. Rogerson, President and Chief Executive Officer. "We saw strong orders and sales as the quarter progressed."

"While we did realize some benefit from the extra week in this year's fourth quarter, the benefit was substantially less than a proportionate amount," said G. Edward McClammy, Senior Vice President and Chief Financial Officer.

Fiscal year 2008 sales totaled $1.013 billion, an increase of 10% compared to the $920.6 million reported in fiscal year 2007. Adjusted net earnings in fiscal year 2008 increased 10% to $86.8 million, compared to $78.6 million in the prior fiscal year. Adjusted diluted earnings per share (which excludes share-based compensation expense and other adjustments) were $2.89 in fiscal year 2008, representing an increase of 14% compared to the $2.54 adjusted diluted earnings per share reported in fiscal year 2007. Share-based compensation expense was $9.3 million, or $0.23 per diluted share, in fiscal year 2008 and $9.8 million, or $0.20 per diluted share, in fiscal year 2007. On a GAAP basis, net earnings were $66.4 million, or $2.21 diluted earnings per share, in fiscal year 2008, compared to $63.6 million, or $2.05 diluted earnings per share, in fiscal year 2007. Adjusted operating profit margin was 12.6% in both fiscal years 2008 and 2007.

Free cash flow, which is defined as operating cash flow less net fixed asset purchases, was $56.8 million, which represents 85% of GAAP net earnings, in fiscal year 2008.

For a complete reconciliation of non-GAAP (adjusted) financial information used in this press release to the most directly comparable GAAP financial information, please refer to the attached Reconciliations of GAAP to Adjusted Results, Actual and Projected.

Results by Segment

Scientific Instruments revenues for the fourth quarter of fiscal year 2008 were $236.5 million, representing an increase of 14% over revenues of $207.3 million in the fourth quarter of the prior fiscal year. Adjusted operating profit margin was 13.1% in the fourth quarter of fiscal year 2008 compared to 12.7% in the fourth quarter of the prior fiscal year. On a GAAP basis, operating profit margin was 11.1% in the fourth quarter of fiscal year 2008, compared to 10.3% in the same quarter a year ago.

For the full fiscal year 2008, Scientific Instruments revenues increased 10% to $838.7 million, compared to $761.5 million in fiscal year 2007. Adjusted operating profit margin was 12.1% in fiscal year 2008, compared to 12.7% in fiscal year 2007. On a GAAP basis, operating profit margin was 9.6% in fiscal year 2008, compared to 10.4% in the prior fiscal year.

Vacuum Technologies revenues increased 20% to $46.0 million in the fourth quarter of fiscal year 2008, compared to $38.3 million in the fourth quarter of fiscal year 2007. Adjusted operating profit margin was 22.6% in the fourth quarter of fiscal year 2008, compared to 21.4% in the fourth quarter of the prior fiscal year. On a GAAP basis, operating profit margin was 22.0% in the fourth quarter of fiscal year 2008, compared to 21.1% in the prior-year quarter.

For the full fiscal year 2008, Vacuum Technologies revenues totaled $173.9 million, an increase of 9% compared to the $159.1 million reported in fiscal year 2007. Adjusted operating profit margin was 20.3% in fiscal year 2008, compared to 20.8% in the prior fiscal year. On a GAAP basis, operating profit margin was 19.8% in fiscal year 2008, compared to 20.1% in fiscal year 2007.

Outlook

Varian, Inc. provided initial earnings per share guidance for fiscal year 2009. Adjusted diluted earnings per share excluding share-based compensation expense for fiscal year 2009 are expected to be $3.10 plus or minus $0.10. Beginning with the first quarter of fiscal year 2009, the company plans to begin reporting adjusted diluted earning per share including share-based compensation expense. On that basis, adjusted earnings per share for fiscal year 2009 are expected to be $2.90 plus or minus $0.10.

"The order momentum we saw during the fourth quarter has continued into the first few weeks of October," said Rogerson. "With these strong orders, new products gaining traction and a sound backlog, we are in a good position going into fiscal year 2009. Also, the recent changes in exchange rates, if they hold, should be a significant positive to our earnings this year. Having said all this, we are being cautious in providing our initial guidance for the year given global economic uncertainties."

On a GAAP basis, diluted earnings per share are expected to be $2.60 plus or minus $0.10 for fiscal year 2009. Compared to adjusted diluted earnings per share including share-based compensation expense of approximately $0.20, the company's GAAP diluted earnings per share for fiscal year 2009 are expected to include the following items:

-- Acquisition-related intangible amortization of approximately $0.17 to $0.18, -- Acquisition-related inventory write-up amortization of approximately $0.01, and -- Restructuring and other related costs of approximately $0.09 to $0.13. Webcast Conference Call

Varian, Inc. will be providing a live webcast (in listen-only mode) of its investor conference call to review its fourth quarter and full fiscal year 2008 results later today, October 29, 2008, at 2:00 p.m. Pacific time. The call may be heard via the Internet by going to http://www.varianinc.com/ and clicking on the "Live Webcast" link at the top of the right side of the page. In addition to the live webcast, replays will be available to the public on Varian, Inc.'s website for at least 90 days.

Non-GAAP (Adjusted) Financial Measures

This press release includes non-GAAP (which we refer to as "adjusted") financial measures for cost of sales, selling, general and administrative expenses, research and development expenses, purchased in-process research and development, operating earnings, operating profit margins, impairment of private company equity investments, income tax expense, net earnings, diluted earnings per share and free cash flow. With the exception of free cash flow, these non-GAAP financial measures exclude share-based compensation expense, impairment of private company equity investments, acquisition-related intangible and inventory write-up amortization and in-process research and development charges, and restructuring and other related costs. Free cash flow is defined as operating cash flow less net fixed asset purchases. Reconciliations of each of these non-GAAP financial measures to the most directly comparable GAAP financial measures are detailed in the Reconciliations of GAAP to Adjusted Results attached to this press release. We believe that presentation of these non-GAAP financial measures provides useful information to investors regarding our results of operations and our cash flows.

We believe that excluding acquisition-related intangible and inventory write-up amortization and in-process research and development charges provides supplemental information and an alternative presentation useful to investors' understanding of the company's core operating results and trends. In addition, investors have indicated to us that they analyze the benefits of acquisitions based on the cash return on the investment made, and thus consider financial measures excluding acquisition-related intangible and inventory write-up amortization and in-process research and development charges as important, useful information.

We similarly believe that excluding share-based compensation expense, restructuring and other related costs (principally related to facility closures and employee terminations to improve operational efficiency), and impairment of private company equity investments provides supplemental information and an alternative presentation useful to investors' understanding of the company's core operating results and trends, especially when comparing those results on a consistent basis to results for previous periods and anticipated results for future periods. Investors have indicated that they consider financial measures of our results of operations excluding share-based compensation expense, restructuring and other related costs, and impairment of private company equity investments as important supplemental information useful to their understanding of our historical results and estimating of our future results.

We also believe that, in excluding share-based compensation expense, acquisition-related intangible and inventory write-up amortization and in-process research and development charges, restructuring and other related costs, and impairment of private company equity investments, our non-GAAP financial measures provide investors with transparency into what is used by management to measure and forecast our results of operations, to compare on a consistent basis our results of operations for the current period to that of prior periods, to compare our results of operations on a more consistent basis against that of other companies, in making financial and operating decisions and to establish certain management compensation.

We believe that the presentation of free cash flow provides investors with useful information on what is used by management to measure cash management performance, in making financial and operating decisions and to establish certain management compensation.

Although we believe, for the foregoing reasons, that our presentation of non-GAAP financial measures provides useful supplemental information to investors regarding our results of operations and our cash flows, our non-GAAP financial measures should only be considered in addition to, and not as a substitute for or superior to, our financial measures prepared in accordance with GAAP.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on management's current expectations, are not guarantees of future performance, and involve certain risks and uncertainties that could cause the company's actual results to differ materially from management's current expectations and the forward-looking statements made in this press release. Those risks and uncertainties include, but are not limited to, the following: whether we will succeed in new product development, commercialization, performance and acceptance; whether we can achieve continued growth in sales for industrial and/or life science applications; whether we can achieve continued sales growth in Europe, Asia Pacific and/or the U.S.; risks arising from the timing of shipments, installations and the recognition of revenue on certain research products, including nuclear magnetic resonance (NMR), magnetic resonance (MR) imaging and fourier-transform mass spectrometer (FTMS) systems and superconducting magnets; the impact of shifting product mix on profit margins; competitive products and pricing; economic conditions in the company's product and geographic markets, in particular given the signs of a global recession; whether we will see continued and timely delivery of key raw materials and components by suppliers; foreign currency fluctuations that could adversely impact revenue growth and earnings; whether we will see continued investment in capital equipment, in particular given the global liquidity and credit crisis; whether we will see reduced demand from customers that operate in cyclical industries; the impact of any delay or reduction in government funding for research; our ability to successfully evaluate, negotiate, complete and integrate acquisitions, in particular given the greater difficulty to borrow in the current credit environment; the actual costs, timing and benefits of restructuring activities (such as our Northern California manufacturing consolidation) and other efficiency improvement activities (such as our global procurement, lower-cost manufacturing and outsourcing initiatives); variability in our effective income tax rate (due to factors including the timing and amount of discrete tax events and changes to unrecognized tax benefits); the timing and amount of share-based compensation; and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. We undertake no special obligation to update any forward-looking statements, whether in response to new information, future events or otherwise.

About Varian, Inc.

Varian, Inc. is a leading worldwide supplier of scientific instruments and vacuum technologies for life science and industrial applications. The company provides complete solutions, including instruments, vacuum products, laboratory consumable supplies, software, training and support through its global distribution and support systems. Varian, Inc. employs approximately 3,900 people worldwide and operates manufacturing facilities in North America, Europe and Asia Pacific. Varian, Inc. had fiscal year 2008 sales of $1.0 billion, and its common stock is traded on the NASDAQ Global Select Market under the symbol "VARI." Further information is available on the company's Web site: http://www.varianinc.com/.

For Information Contact: Investor Relations Varian, Inc. 650.424.5471 ir@varianinc.com VARIAN, INC. AND SUBSIDIARY COMPANIES UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (In thousands, except per share amounts) Fourth Quarter FY 2008 and Fourth Quarter FY 2007 Fiscal Quarter Ended ------------------------- October 3, September 28, 2008 2007 ----------- ----------- Sales $282,470 $245,635 Cost of sales 156,377 (1) 137,271 (8) ----------- ----------- Gross profit 126,093 108,364 ----------- ----------- Operating expenses Selling, general and administrative 75,098 (2) 66,932 (9) Research and development 17,921 (3) 16,577 (10) Purchased in-process research and development 215 (4) - ----------- ----------- Total operating expenses 93,234 83,509 ----------- ----------- Operating earnings 32,859 (5) 24,855 (11) Interest income 1,042 1,893 Interest expense (382) (434) ----------- ----------- Earnings before income taxes 33,519 26,314 Income tax expense 11,811 (6) 8,886 (12) ----------- ----------- Net earnings $21,708 (7) $17,428 (13) ----------- ----------- Net earnings per diluted share $0.74 (7) $0.56 (13) ----------- ----------- Diluted shares outstanding 29,367 30,869 ----------- ----------- NON-GAAP (ADJUSTED) FINANCIAL MEASURES (see also attached reconciliations of GAAP to Adjusted results for each of these measures): (1) $153,967 on an adjusted basis excluding $1,663 in acquisition-related intangible amortization, $172 in acquisition-related inventory write- up amortization, $466 in restructuring and other related costs and $109 in share-based compensation expense. (2) $72,067 on an adjusted basis excluding $586 in acquisition-related intangible amortization, $273 in restructuring and other related costs and $2,172 in share-based compensation expense. (3) $17,324 on an adjusted basis excluding $501 in restructuring and other related costs and $96 in share-based compensation expense. (4) $0 on an adjusted basis excluding $215 related to an acquisition- related in-process research and development charge. (5) $39,112 on an adjusted basis excluding the adjustments described in items (1) - (4) above. (6) $13,723 on an adjusted basis excluding the tax impact of the adjustments described in items (1) - (3) above. (7) $26,049 and $0.89 per diluted share, respectively, on an adjusted basis excluding the adjustments (net of related tax effects) described in items (1) - (3) above. (8) $134,490 on an adjusted basis excluding $1,368 in acquisition-related intangible amortization, $835 in acquisition-related inventory write- up amortization, $472 in restructuring and other related costs and $106 in share-based compensation expense. (9) $64,333 on an adjusted basis excluding $548 in acquisition-related intangible amortization, $307 in restructuring and other related costs and $1,744 in share-based compensation expense. (10) $15,972 on an adjusted basis excluding $480 in restructuring and other related costs and $125 in share-based compensation expense. (11) $30,840 on an adjusted basis excluding the adjustments described in items (8) - (10) above. (12) $11,088 on an adjusted basis excluding the tax impact of the adjustments described in items (8) - (10) above. (13) $21,211 and $0.69 per diluted share, respectively, on an adjusted basis excluding the adjustments (net of related tax effects) described in items (8) - (10) above. VARIAN, INC. AND SUBSIDIARY COMPANIES UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (In thousands, except per share amounts) Full Year FY 2008 and Full Year FY 2007 Fiscal Year Ended ---------------------------- October 3, September 28, 2008 2007 ----------- ----------- Sales $1,012,515 $920,598 Cost of sales 560,061 (1) 505,121 (9) ----------- ----------- Gross profit 452,454 415,477 ----------- ----------- Operating expenses Selling, general and administrative 277,478 (2) 257,754 (10) Research and development 71,810 (3) 65,169 (11) Purchased in-process research and development 1,703 (4) - ----------- ----------- Total operating expenses 350,991 322,923 ----------- ----------- Operating earnings 101,463 (5) 92,554 (12) Impairment of private company equity investment (3,018)(6) - Interest income 5,930 6,152 Interest expense (1,656) (1,878) ----------- ----------- Earnings before income taxes 102,719 96,828 Income tax expense 36,274 (7) 33,212 (13) ----------- ----------- Net earnings $66,445 (8) $63,616 (14) ----------- ----------- Net earnings per diluted share $2.21 (8) $2.05 (14) ----------- ----------- Diluted shares outstanding 30,072 31,004 ----------- ----------- NON-GAAP (ADJUSTED) FINANCIAL MEASURES (see also attached reconciliations of GAAP to Adjusted results for each of these measures): (1) $550,063 on an adjusted basis excluding $6,547 in acquisition-related intangible amortization, $1,408 in acquisition-related inventory write-up amortization, $1,641 in restructuring and other related costs and $402 in share-based compensation expense. (2) $264,539 on an adjusted basis excluding $1,825 in acquisition-related intangible amortization, $2,581 in restructuring and other related costs and $8,533 in share-based compensation expense. (3) $70,150 on an adjusted basis excluding $1,254 in restructuring and other related costs and $406 in share-based compensation expense. (4) $0 on an adjusted basis excluding $1,703 related to an acquisition- related in-process research and development charge. (5) $127,763 on an adjusted basis excluding the adjustments described in items (1) - (4) above. (6) $0 on an adjusted basis excluding $3,018 related to the impairment of a private company equity investment. (7) $45,235 on an adjusted basis excluding the tax impact of the adjustments described in items (1) - (3) and (6) above. (8) $86,802 and $2.89 per diluted share, respectively, on an adjusted basis excluding the adjustments (net of related tax effects) described in items (1) - (3) and (6) above. (9) $496,940 on an adjusted basis excluding $5,299 in acquisition-related intangible amortization, $1,290 in acquisition-related inventory write-up amortization, $1,172 in restructuring and other related costs and $420 in share-based compensation expense. (10) $243,826 on an adjusted basis excluding $2,630 in acquisition-related intangible amortization, $2,405 in restructuring and other related costs and $8,893 in share-based compensation expense. (11) $63,897 on an adjusted basis excluding $767 in restructuring and other related costs and $505 in share-based compensation expense. (12) $115,935 on an adjusted basis excluding the adjustments described in items (9) - (11) above. (13) $41,592 on an adjusted basis excluding the tax impact of the adjustments described in items (9) - (11) above. (14) $78,617 and $2.54 per diluted share, respectively, on an adjusted basis excluding the adjustments (net of related tax effects) described in items (9) - (11) above. VARIAN, INC. AND SUBSIDIARY COMPANIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET (In thousands, except par value amounts) October 3, September 28, 2008 2007 ---------- ---------- ASSETS Current assets Cash and cash equivalents $103,895 $196,396 Accounts receivable, net 199,420 187,429 Inventories 161,039 140,533 Deferred taxes 33,618 38,068 Prepaid expenses and other current assets 15,663 17,332 ---------- ---------- Total current assets 513,635 579,758 Property, plant and equipment, net 110,343 110,792 Goodwill 218,208 193,760 Intangible assets, net 36,972 31,572 Other assets 24,089 20,951 ---------- ---------- Total assets $903,247 $936,833 ---------- ---------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt $ - $ 6,250 Accounts payable 70,923 72,588 Deferred profit 10,957 13,641 Accrued liabilities 167,173 159,109 ---------- ---------- Total current liabilities 249,053 251,588 Long-term debt 18,750 18,750 Deferred taxes 4,341 4,050 Other liabilities 43,431 44,358 ---------- ---------- Total liabilities 315,575 318,746 ---------- ---------- Stockholders' equity Preferred stock-par value $0.01, authorized-1,000 shares; issued-none - - Common stock-par value $0.01, authorized-99,000 shares; issued and outstanding-28,917 shares at October 3, 2008 and 30,345 shares at September 28, 2007 356,192 351,330 Retained earnings 186,009 199,471 Accumulated other comprehensive income 45,471 67,286 ---------- ---------- Total stockholders' equity 587,672 618,087 ---------- ---------- Total liabilities and stockholders' equity $903,247 $936,833 ---------- ---------- VARIAN, INC. AND SUBSIDIARY COMPANIES UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands) Fiscal Quarter Ended Fiscal Year Ended -------------------- ----------------- Oct. 3, Sept. 28, Oct. 3, Sept. 28, 2008 2007 2008 2007 -------- -------- -------- -------- Cash flows from operating activities Net earnings $21,708 $17,428 $66,445 $63,616 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 8,129 8,085 29,346 29,248 Gain on disposition of property, plant and equipment (22) (256) (474) (452) Impairment of private company equity investment - - 3,018 - Purchased in-process research and development 215 - 1,703 - Share-based compensation expense 2,466 2,056 9,673 9,946 Deferred taxes (2,582) (7,090) (3,122) (8,892) Changes in assets and liabilities, excluding effects of acquisitions: Accounts receivable, net (22,940) (1,171) (12,205) 1,074 Inventories 11,618 10,103 (19,428) 400 Prepaid expenses and other current assets 2,810 49 3,300 (387) Other assets (736) (3,898) (1,462) (4,110) Accounts payable (2,294) 1,755 (1,072) (4,733) Deferred profit 440 3,093 (3,526) (176) Accrued liabilities 9,959 (1,771) 13,159 (1,499) Other liabilities (9,375) 12,209 (6,334) 15,822 -------- -------- -------- -------- Net cash provided by operating activities 19,396 40,592 79,021 99,857 -------- -------- -------- -------- Cash flows from investing activities Proceeds from sale of property, plant and equipment 470 1,773 1,735 4,966 Purchase of property, plant and equipment (7,286) (8,517) (23,960) (19,396) Purchase of businesses, net of cash acquired (2,269) (2,049) (55,167) (7,115) Private company equity investments - (3,000) (18) (3,000) -------- -------- -------- -------- Net cash used in investing activities (9,085) (11,793) (77,410) (24,545) -------- -------- -------- -------- Cash flows from financing activities Repayments of debt - - (6,250) (2,500) Repurchase of common stock (24,968) (17,117) (106,860) (86,699) Issuance of common stock 2,467 5,149 18,228 31,897 Excess tax benefit from share- based plans (2,257) 2,020 894 9,090 Transfers to Varian Medical Systems, Inc. - (265) (600) (646) -------- -------- -------- -------- Net cash used in financing activities (24,758) (10,213) (94,588) (48,858) -------- -------- -------- -------- Effects of exchange rate changes on cash and cash equivalents (9,873) 6,470 476 15,787 -------- -------- -------- -------- Net (decrease) increase in cash and cash equivalents (24,320) 25,056 (92,501) 42,241 Cash and cash equivalents at beginning of period 128,215 171,340 196,396 154,155 -------- -------- -------- -------- Cash and cash equivalents at end of period $103,895 $196,396 $103,895 $196,396 --------- --------- --------- --------- VARIAN, INC. AND SUBSIDIARY COMPANIES RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL UNAUDITED RESULTS OF OPERATIONS (In thousands) Fourth Quarter FY 2008 and Fourth Quarter FY 2007 and Full Year FY 2008 and Full Year FY 2007 Fiscal Quarter Ended Fiscal Year Ended -------------------- ------------------- Oct. 3, Sept. 28, Oct. 3, Sept. 28, 2008 2007 2008 2007 -------- --------- -------- --------- TOTAL COMPANY ------------- Cost of Sales U.S. GAAP as reported $156,377 $137,271 $560,061 $505,121 Adjustments: Share-based compensation expense (109) (106) (402) (420) Acquisition-related intangible amortization (1,663) (1,368) (6,547) (5,299) Acquisition-related inventory write-up amortization (172) (835) (1,408) (1,290) Restructuring and other related costs (466) (472) (1,641) (1,172) --------- --------- --------- --------- As adjusted $153,967 $134,490 $550,063 $496,940 --------- --------- --------- --------- Selling, General and Administrative U.S. GAAP as reported $75,098 $66,932 $277,478 $257,754 Adjustments: Share-based compensation expense (2,172) (1,744) (8,533) (8,893) Acquisition-related intangible amortization (586) (548) (1,825) (2,630) Restructuring and other related costs (273) (307) (2,581) (2,405) --------- --------- --------- --------- As adjusted $72,067 $64,333 $264,539 $243,826 --------- --------- --------- --------- Research and Development U.S. GAAP as reported $17,921 $16,577 $71,810 $65,169 Adjustments: Share-based compensation expense (96) (125) (406) (505) Restructuring and other related costs (501) (480) (1,254) (767) --------- --------- --------- -------- As adjusted $17,324 $15,972 $70,150 $63,897 --------- --------- --------- -------- Purchased In-Process Research and Development U.S. GAAP as reported $ 215 $ - $1,703 $ - Adjustments: Acquisition-related in- process research and development charge (215) - (1,703) - --------- --------- --------- -------- As adjusted $ - $ - $ - $ - --------- --------- --------- -------- VARIAN, INC. AND SUBSIDIARY COMPANIES RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL UNAUDITED RESULTS OF OPERATIONS (In thousands, except margin data) Fourth Quarter FY 2008 and Fourth Quarter FY 2007 and Full Year FY 2008 and Full Year FY 2007 Fiscal Quarter Ended Fiscal Year Ended --------------------- --------------------- Oct. 3, Sept. 28, Oct. 3, Sept. 28, 2008 2007 2008 2007 --------- --------- -------- ---------- TOTAL COMPANY (Continued) ------------------------ Operating Earnings U.S. GAAP as reported $32,859 $24,855 $101,463 $92,554 Adjustments: Share-based compensation expense 2,377 1,975 9,341 9,818 Acquisition-related in- process research and development charge 215 - 1,703 - Acquisition-related intangible amortization 2,249 1,916 8,372 7,929 Acquisition- related inventory write-up amortization 172 835 1,408 1,290 Restructuring and other related costs 1,240 1,259 5,476 4,344 --------- --------- ---------- ---------- As adjusted $39,112 $30,840 $127,763 $115,935 --------- --------- ---------- ---------- Operating Margins U.S. GAAP as reported 11.6% 10.1% 10.0% 10.1% Adjustments: Share-based compensation expense 0.8 0.8 0.9 1.1 Acquisition-related in- process research and development charge 0.1 - 0.2 - Acquisition-related intangible amortization 0.8 0.9 0.9 0.8 Acquisition-related inventory write-up amortization 0.1 0.3 0.1 0.1 Restructuring and other related costs 0.4 0.5 0.5 0.5 -------- -------- -------- -------- As adjusted 13.8% 12.6% 12.6% 12.6% -------- -------- -------- -------- Impairment of Private Company Equity Investment U.S. GAAP as reported $ - $ - $3,018 $ - Adjustments: Impairment of private company equity investment - - (3,018) - -------- -------- -------- -------- As adjusted $ - $ - $ - $ - -------- -------- -------- -------- Income Tax Expense U.S. GAAP as reported $11,811 $8,886 $36,274 $33,212 Adjustments: Tax impact of adjustments: Share-based compensation expense 637 710 2,559 3,573 Acquisition-related intangible amortization 723 604 2,755 2,682 Acquisition-related inventory write-up amortization 75 298 485 455 Impairment of private company equity investment - - 1,147 - Restructuring and other related costs 477 590 2,015 1,670 -------- --------- --------- --------- As adjusted $13,723 $11,088 $45,235 $41,592 -------- --------- --------- --------- VARIAN, INC. AND SUBSIDIARY COMPANIES RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL UNAUDITED RESULTS OF OPERATIONS (In thousands, except per share data) Fourth Quarter FY 2008 and Fourth Quarter FY 2007 and Full Year FY 2008 and Full Year FY 2007 Fiscal Quarter Ended Fiscal Year Ended -------------------- ----------------- Oct. 3, Sept. 28, Oct. 3, Sept. 28, 2008 2007 2008 2007 --------- --------- -------- -------- TOTAL COMPANY (Continued) ------------------------ Net Earnings U.S. GAAP as reported $21,708 $17,428 $66,445 $63,616 Adjustments: Share-based compensation expense 1,740 1,265 6,782 6,245 Acquisition-related in-process research and development charge 215 - 1,703 - Acquisition-related intangible amortization 1,526 1,312 5,617 5,247 Acquisition-related inventory write-up amortization 97 537 923 835 Impairment of private company equity investment - - 1,871 - Restructuring and other related costs 763 669 3,461 2,674 ------- ------- ------- ------- As adjusted $26,049 $21,211 $86,802 $78,617 ------- ------- ------- ------- Diluted Earnings Per Share U.S. GAAP as reported $0.74 $0.56 $2.21 $2.05 Adjustments: Acquisition-related in-process research and development charge 0.01 - 0.06 - Acquisition-related intangible amortization 0.05 0.05 0.18 0.17 Acquisition-related inventory write-up amortization - 0.02 0.03 0.03 Impairment of private company equity investment - - 0.06 - Restructuring and other related costs 0.03 0.02 0.12 0.09 ------- ------- ------- ------- As adjusted - including share-based compensation expense 0.83 0.65 2.66 2.34 Share-based compensation expense 0.06 0.04 0.23 0.20 ------- ------- ------- ------- As adjusted - excluding share-based compensation expense $0.89 $0.69 $2.89 $2.54 ------- ------- ------- ------- Free Cash Flow U.S. GAAP as reported - Net cash provided by operating activities $19,396 $40,592 $79,021 $99,857 Adjustments: Proceeds from sale of property, plant and equipment 470 1,773 1,735 4,966 Purchase of property, plant and equipment (7,286) (8,517) (23,960) (19,396) ------- ------- ------- ------- As adjusted - Free Cash Flow $12,580 $33,848 $56,796 $85,427 ------- ------- ------- ------- VARIAN, INC. AND SUBSIDIARY COMPANIES RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL UNAUDITED RESULTS OF OPERATIONS (In thousands, except margin data) Fourth Quarter FY 2008 and Fourth Quarter FY 2007 and Full Year FY 2008 and Full Year FY 2007 Fiscal Quarter Ended Fiscal Year Ended -------------------- --------------------- Oct. 3, Sept. 28, Oct. 3, Sept. 28, 2008 2007 2008 2007 --------- -------- --------- --------- SCIENTIFIC INSTRUMENTS SEGMENT ------------------------------ Operating Earnings U.S. GAAP as reported $26,191 $21,424 $80,700 $79,486 Adjustments: Share-based compensation expense 909 806 3,495 3,367 Acquisition-related in- process research and development charge 215 - 1,703 - Acquisition-related intangible amortization 2,249 1,916 8,372 7,929 Acquisition-related inventory write-up amortization 172 835 1,408 1,290 Restructuring and other related costs 1,240 1,259 5,476 4,344 --------- --------- --------- --------- As adjusted $30,976 $26,240 $101,154 $96,416 --------- --------- --------- --------- Operating Margins U.S. GAAP as reported 11.1% 10.3% 9.6% 10.4% Adjustments: Share-based compensation expense 0.4 0.4 0.4 0.4 Acquisition-related in- process research and development charge 0.1 - 0.2 - Acquisition-related intangible amortization 0.9 1.0 1.0 1.1 Acquisition-related inventory write-up amortization 0.1 0.4 0.2 0.2 Restructuring and other related costs 0.5 0.6 0.7 0.6 --------- --------- --------- --------- As adjusted 13.1% 12.7% 12.1% 12.7% --------- --------- --------- --------- VACUUM TECHNOLOGIES SEGMENT --------------------------- Operating Earnings U.S. GAAP as reported $10,123 $8,102 $34,384 $31,955 Adjustments: Share-based compensation expense 268 117 913 1,094 --------- --------- --------- --------- As adjusted $10,391 $8,219 $35,297 $33,049 --------- --------- --------- --------- Operating Margins U.S. GAAP as reported 22.0% 21.1% 19.8% 20.1% Adjustments: Share-based compensation expense 0.6 0.3 0.5 0.7 --------- --------- --------- --------- As adjusted 22.6% 21.4% 20.3% 20.8% --------- --------- --------- --------- GENERAL (UNALLOCATED) CORPORATE ------------------------------- Operating Earnings U.S. GAAP as reported $(3,455) $(4,671) $(13,621) $(18,887) Adjustments: Share-based compensation expense 1,200 1,052 4,933 5,357 --------- -------- --------- --------- As adjusted $(2,255) $(3,619) $(8,688) $(13,530) --------- -------- --------- --------- VARIAN, INC. AND SUBSIDIARY COMPANIES RECONCILIATION OF GAAP TO ADJUSTED RESULTS - PROJECTED RESULTS OF OPERATIONS (UNAUDITED) Fiscal Year Ending October 2, 2009 Range of Projected Results TOTAL COMPANY -------------------------- ------------- Projected Diluted Earnings Per Share Projected U.S. GAAP $2.50 - $2.70 Adjustments: Projected acquisition-related intangible amortization $0.17 - $0.18 Projected acquisition-related inventory write-up amortization $0.01 Projected restructuring and other related costs $0.09 - $0.13 Projected as adjusted - including share- based compensation expense $2.80 - $3.00 Projected share-based compensation expense $0.20 Projected as adjusted - excluding share- based compensation expense $3.00 - $3.20

Varian, Inc.

CONTACT: Varian, Inc., Investor Relations, +1-650-424-5471,
ir@varianinc.com

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

ShoreTel Reports Financial Results for First Quarter Fiscal Year 2009Record Revenue, Healthy Balance Sheet and Products That Reduce Customer Costs Position ShoreTel for Continued Leadership

SUNNYVALE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- ShoreTel(R), Inc., , a leading provider of Pure IP Unified Communications (UC) solutions, today announced financial results for the first quarter of fiscal year 2009 which ended September 30, 2008.

For the first quarter of fiscal year 2009, revenue was $35.9 million, an increase of 12 percent over the first quarter of fiscal year 2008 and a three percent increase over the prior quarter. GAAP net loss was $2.2 million, or $(0.05) per share, compared to GAAP net income of $2.6 million, or $0.06 per diluted share, reported in the first quarter of fiscal year 2008. GAAP net loss in the first quarter of fiscal year 2009 included $2.7 million in stock- based compensation expenses, compared to $1.1 million reported in the first quarter of fiscal year 2008.

Excluding these stock-based compensation expenses and related tax adjustments, non-GAAP net income for the first quarter of fiscal year 2009 was $0.5 million, or $0.01 per diluted share, compared to non-GAAP net income of $3.5 million, or $0.08 per diluted share, reported in the first quarter of fiscal year 2008.

GAAP gross margins for the first quarter of fiscal year 2009 were 64 percent, compared with 64 percent during the same quarter last year. GAAP gross margins in the first quarter of fiscal year 2009 included $216,000 in stock-based compensation expenses, compared to $66,000 in the first quarter of fiscal year 2008. Non-GAAP gross margins, which exclude stock-based compensation expenses, were 65 percent in the first quarter of fiscal year 2009, compared with 64 percent during the same quarter last year.

As of September 30, 2008, the company had $107 million in cash, cash equivalents and short-term investments and generated over $5 million in operating cash flow in the quarter.

"ShoreTel remains in a very strong market position thanks to our record revenues, a healthy balance sheet, and products that offer a compelling return on investment," said John W. Combs, chairman and CEO of ShoreTel. "With no debt, more than $100 million in cash, a highly satisfied customer base and a proven effective business model, we have the agility to respond quickly to the current uncertain economic environment, and to make the appropriate investments when signs of a recovery emerge."

Operational Highlights for the First Quarter of Fiscal Year 2009 SHORETEL 8.1

The Company announced enhancements to its global product offerings with the introduction of ShoreTel 8.1 which includes:

* Global support for ShoreTel's Unified Communications desktop client * The ShorePhone(TM) IP 230g, a low cost gigabit enabled phone to help improve productivity at the desktop * New ShoreGear(R) Voice Switches with BRI and E1 interfaces to round out the global product line * Expanded language support, including Brazilian Portuguese, Danish, Dutch, English (U.S. and U.K.), French, German, Italian, Norwegian, Portuguese, simplified Chinese, Spanish (Spain and CALA), and Swedish * Expanded support for Mobile Call Manager on more mobile phone models including the Blackberry Pearl, Curve and 8800, as well as the Nokia E65 and the Motorola Razr V3 * Multi-language support for ShoreWare(R) Mobile Call Manager including Danish, Dutch, English (U.S. and U.K.), French, German, Italian, Norwegian, Spanish, and Swedish PARTNERSHIPS

ShoreTel continued to expand its distribution channel and international resources to support an increased global presence. In EMEA, ShoreTel signed 14 new partners during the quarter, including three new distributors. In addition, the company announced the appointment of Aria Technologies as a national distributor for ShoreTel in Australia. Under the agreement, Aria Technologies will offer ShoreTel's Unified Communications solutions to its extensive network of local value-added resellers. Australian-owned Aria Technologies is one of the leading distributors of telecommunications equipment and solutions in Australia and also supplies systems to Australia's largest telecom carrier, Telstra, under the Telstra brand.

ACCOMPLISHMENTS/AWARDS

The company signed more than 800 new customers during the quarter, a quarterly record, bringing total customers to more than 8,800.

In a recently updated 2008 power-consumption study of IP telephony components conducted by independent testing firm The Tolly Group and commissioned by ShoreTel, ShoreTel's Unified Communications system demonstrated a clear advantage over the Cisco Unified Communications Manager, consuming between 27 and 62 percent less energy depending on the system configuration. Testing and analysis for the study was conducted across three classes of enterprise deployments.

Based on energy consumption projections, ShoreTel's solutions used less energy than Cisco's to drive VoIP communications in specific large, medium and small enterprise-class scenarios.

ShoreTel was awarded the Frost & Sullivan Best Practices 2008 North America Enterprise Communications Value Enhancement Award. Frost & Sullivan Best Practices Awards identify exemplary achievements within a multitude of industries and functional disciplines. The analysis on best practices conducted by Frost & Sullivan identifies companies, products, processes, and executives that have achieved world-class performance.

During the quarter, the company was also awarded the 2008 TMC Labs Innovation Award from Customer Interaction Solutions. The TMC Labs Innovation Award honors products that demonstrate raw innovation, unique features, and significant contributions toward improving communications technology.

Business Outlook

The company is providing the following outlook for the quarter ending December 31, 2008:

* Revenue is expected to be in the range of $30 to $35 million. * GAAP gross margins are expected to be in the range of 62 to 63 percent, including approximately $200,000 in stock-based compensation expenses. Non-GAAP gross margins are expected to be in the range of 63 to 64 percent. * GAAP operating expenses are expected to be in the range of $23.5 to $24.5 million, which includes approximately $2.0 million in stock- based compensation expenses. Non-GAAP operating expenses are expected to be in the range of $21.5 to $22.5 million. Use of Non-GAAP Financial Measures

ShoreTel reports all financial information required in accordance with generally accepted accounting principles (GAAP), but it believes that evaluating its ongoing operating results may be difficult to understand if limited to reviewing only GAAP financial measures. Many investors have requested that ShoreTel disclose this non-GAAP information because it is useful in understanding the company's performance as it excludes non-cash and other special charges that many investors feel may obscure the company's true operating performance. Likewise, management uses these non-GAAP financial measures to manage and assess the profitability of its business and does not consider stock-based compensation expenses, which are non-cash charges, in managing its core operations. ShoreTel has provided a reconciliation of non- GAAP financial measures in the tables of this press release. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures with their most directly comparable GAAP financial measure.

Conference Call Details for October 29, 2008

ShoreTel will host a corresponding conference call and live Webcast at 2:30 p.m. Pacific Daylight Time on October 29, 2008. To access the conference call, dial 877-584-6502 for the U.S. and Canada or 706-679-0430 for international callers and provide the operator with the conference identification number 67950946. The Webcast will be available live in the Investor Relations section of the company's corporate Web site at http://www.shoretel.com/, and via replay beginning approximately two hours after the completion of the call until the company's announcement of its financial results for the next quarter.

An audio replay of the call will also be available to investors beginning at approximately 4:30 p.m. Pacific Daylight Time on October 29, 2008 until 11:59 p.m. Eastern Standard Time on November 5, 2008, by dialing 800-642-1687 or 706-645-9291 for callers outside the U.S. and Canada, and entering the conference identification number 67950946.

Legal Notice Regarding Forward-Looking Statements

ShoreTel assumes no obligation to update the forward-looking statements included in this release. This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the federal securities laws, including, without limitation, statements by John W. Combs and statements in the "Business Outlook" section regarding ShoreTel's anticipated future revenues, gross margins, operating expenses and other financial information. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. The risks and uncertainties include general economic conditions, particularly in the United States, and the impact thereof on information technology spending, the intense competition in our industry, our reliance on third parties to sell and support our products, supply and manufacturing risks, our ability to control costs as we expand our business, uncertainty as to market acceptance of new products and services, costs of, and customer reaction to, our pending litigation and other risk factors set forth in ShoreTel's Form 10-K for the year ended June 30, 2008.

About ShoreTel, Inc.

ShoreTel, Inc., is a leading provider of Pure IP unified communications solutions. ShoreTel enables companies of any size to seamlessly integrate all communications-voice, video, messaging and data -with their business processes. Independent of device or location, ShoreTel's distributed software architecture eliminates the traditional costs, complexity and reliability issues typically associated with other solutions. ShoreTel continues to deliver the highest levels of customer satisfaction, ease of use and manageability while driving down the overall total cost of ownership. ShoreTel is headquartered in Sunnyvale, California, and has regional offices in Austin, Texas, the United Kingdom, Sydney, Australia and Munich, Germany. For more information, visit http://www.shoretel.com/ or call 1-800-425-9385.

Investor Contact: Tonya Chin 408-962-2573 tchin@shoretel.com (TABLES TO FOLLOW) SHORETEL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (Unaudited) As of As of September 30, June 30, 2008 2008 ASSETS Current assets: Cash and cash equivalents $79,436 $68,672 Short-term investments 27,671 34,139 Accounts receivable - net 20,116 21,909 Inventories 9,964 12,008 Prepaid expenses and other current assets 5,132 5,063 Total current assets 142,319 141,791 Property and equipment - net 3,762 3,649 Other assets 3,416 2,357 Total assets $149,497 $147,797 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $5,403 $5,952 Accrued liabilities and other 4,532 4,420 Accrued employee compensation 5,515 5,547 Deferred revenue 15,462 13,879 Total current liabilities 30,912 29,798 Long-term liabilities: Long-term deferred revenue 5,065 4,786 Total liabilities 35,977 34,584 Stockholders' equity: Common stock 197,965 195,520 Deferred stock compensation (120) (142) Accumulated deficit (84,325) (82,165) Total stockholders' equity 113,520 113,213 Total liabilities and stockholders' equity $149,497 $147,797 SHORETEL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) (Unaudited) Three Months Ended September 30, 2008 2007 Revenue: Product $30,014 $28,125 Support and services 5,846 3,850 Total revenues 35,860 31,975 Cost of revenue Product (1) 9,986 9,404 Support and services (2) 2,914 2,159 Total cost of revenue 12,900 11,563 Gross profit 22,960 20,412 Gross profit % 64.0% 63.8% Operating expenses: Research and development (3) 7,786 6,207 Sales and marketing (4) 11,148 8,322 General and administrative (5) 6,010 3,723 Total operating expenses 24,944 18,252 Income (loss) from operations (1,984) 2,160 Other income, net 432 1,203 Income (loss) before provision for income taxes (1,552) 3,363 Provision for income taxes (608) (806) Net income (loss) (2,160) 2,557 Net income (loss) per share available to common stockholders: Basic $(0.05) $0.06 Diluted (6) $(0.05) $0.06 Shares used in computing net income (loss) per share available to common stockholders: Basic 43,318 41,881 Diluted (6) 43,318 44,989 Includes stock-based compensation as follows: (1)Cost of product revenue $22 $8 (2)Cost of support and services revenue 194 58 (3)Research and development 722 254 (4)Sales and marketing 973 451 (5)General and administrative 801 294 $2,712 $1,065 (6)Diluted net income per share and share count reflect the weighted average number of common shares used in the basic net income per share calculation plus the effects of all potentially dilutive securities. Potentially dilutive securities were not included in the compilation of diluted net loss per share for the three months ended September 30, 2008, because to do so would have been anti-dilutive. SHORETEL, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts in thousands, except per share amounts) (Unaudited) Three Months Ended September 30, 2008 2007 GAAP gross profit $22,960 $20,412 Stock-based compensation in product cost of revenue (a) 22 8 Stock-based compensation in support and services cost of revenue (a) 194 58 Non-GAAP gross profit $23,176 $20,478 GAAP gross profit % 64.0% 63.8% Stock-based compensation (a) 0.6% 0.2% Non-GAAP gross profit % 64.6% 64.0% Total GAAP operating expenses $24,944 $18,252 Stock-based compensation included in research and development (a) (722) (254) Stock-based compensation included in sales and marketing (a) (973) (451) Stock-based compensation included in general and administrative (a) (801) (294) Total non-GAAP operating expenses $22,448 $17,253 GAAP net income (loss) available to stockholders: $(2,160) $2,557 Adjustments for stock-based compensation (a) 2,712 1,065 Tax effect of non-GAAP adjustments (25) (167) Non-GAAP net income available to stockholders $527 $3,455 GAAP diluted net income (loss) per share (b): $(0.05) $0.06 Adjustments for stock-based compensation (a) 0.06 0.02 Tax effect of non-GAAP adjustments 0.00 0.00 Non-GAAP diluted net income per share (b): $0.01 $0.08 (a) Due to the nature of the variables that impact the Company's valuation of stock-based compensation, some of which are outside the control of management, and the non-cash nature of stock-based compensation charges, these expenses are excluded by management when evaluating the Company's core operating results. (b) Diluted net income per share and share count reflect the weighted average number of common shares used in the basic net income per share calculation plus the effects of all potentially dilutive securities. Potentially dilutive securities were not included in the compilation of diluted net loss per share for the three months ended September 30, 2008, because to do so would have been anti-dilutive. SHORETEL, INC. RECONCILIATION OF GAAP TO NON-GAAP PROJECTIONS (Amounts in thousands) (Unaudited) Three Months Ended December 31, 2008 High Low GAAP gross profit % 63.0% 62.0% Adjustments for stock-based compensation 1.0% 1.0% Non-GAAP gross profit % 64.0% 63.0% Total GAAP operating expenses $24,500 $23,500 Adjustments for stock-based compensation $(2,000) $(2,000) Total non-GAAP operating expenses $22,500 $21,500

ShoreTel, Inc.

CONTACT: Tonya Chin of ShoreTel, Inc., +1-408-962-2573,
tchin@shoretel.com

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

Harris Corporation First Quarter Revenue Increases 11%; Net Income Increases 18%

MELBOURNE, Fla., Oct. 29 /PRNewswire-FirstCall/ -- Harris Corporation reported revenue of $1.37 billion in its fiscal quarter ended September 26, 2008, an increase of 11 percent compared to $1.23 billion in the prior-year quarter. Net income in the first quarter of fiscal 2009 was $119 million, or $.88 per diluted share, compared to net income of $100 million, or $.73 per diluted share, in the prior-year quarter. Net income in the first quarter included pre-tax charges of $9 million for previously announced cost-reduction actions and $8 million for an impairment related to AuthenTec, Inc. securities.

"Our strong momentum continued in the first quarter, with double-digit organic revenue and earnings growth," said Howard L. Lance, chairman, president and chief executive officer. "Each of our business segments delivered higher revenue, as our investments in new products, new capabilities, and international expansion are allowing us to serve a broad and diversified list of global customers.

"In addition, our financial position remains very strong. We ended the first quarter with $345 million of cash and short-term investments; we have no long-term debt maturing until 2016; we have a new five-year, $750 million revolving credit facility; and we continue to expect to generate $650 million to $700 million in cash flow from operations this fiscal year. Harris is in an excellent position to weather the current financial crisis and continue to execute our tactical and strategic plans."

RF Communications

First quarter revenue in the RF Communications segment was $415 million, an increase of 31 percent compared to $317 million in the prior-year quarter. Operating income was $142 million, an increase of 28 percent compared to $111 million in the first quarter of fiscal 2008. Operating margin was excellent at 34.2 percent of revenue.

Revenue was higher in both U.S. and international markets. International revenue growth accelerated and represented over 35 percent of total revenue in the first quarter, compared to 27 percent of revenue for all of fiscal 2008. International revenue in the first quarter was driven by major deliveries to Iraq, the Philippines, Norway, Poland, Pakistan, the United Arab Emirates, Algeria, Romania, Brunei, the United Kingdom, the Republic of Georgia, Macedonia, and Saudi Arabia. International revenue growth is expected to remain strong throughout fiscal year 2009 and beyond, as U.S. allies implement defense communications modernization programs.

Good orders momentum in the segment continued in the first quarter. Orders are expected to accelerate in the second quarter and be above revenue for fiscal 2009. Strong worldwide demand for tactical radio systems continues to be driven by on-going modernization programs, force restructuring and expansion, increased interoperability requirements, and requirements for more versatile and adaptable communication systems.

New orders reflected success in penetrating an increasingly diverse customer base with a wide variety of products. Harris received $98 million in orders from the U.S. Army to provide Falcon II(R) high-frequency (HF) tactical radios, which enable communications across long distances, over mountainous terrain, and in urban environments. Harris received $60 million in orders from a customer in the Middle East for Falcon II HF and multiband tactical radios, and $36 million in orders from a customer in Central Asia for integrated communications systems incorporating a wide range of products, including Falcon II HF and VHF tactical radios as well as new products including Falcon Watch(TM) remote surveillance systems and RF-7800W high-capacity line-of-sight (HCLOS) radios. Also during the quarter, Harris received orders from an expanding list of other international customers including Estonia, Belize, Ukraine, Kazakhstan, Kyrgyzstan, Djibouti, Ethiopia, Uganda, Kenya, Indonesia, and France.

Customer demand is building for the new Falcon III(R) multiband manpack radio (AN/PRC-117G), the first JTRS-approved wideband/narrowband tactical radio. Orders for the 117G were received from a number of new and repeat customers including the U.S. Special Operations Command, U.S. Air Force, U.S. Marine Corps, and U.S. Coast Guard. During the quarter, the Falcon III 117G manpack received a number of additional technical certifications and achieved "JTRS-approved" status.

Customers are using the 117G for a broad range of ground, airborne and SATCOM applications. New applications include surveillance sensor reception, air defense systems, and use in Unmanned Aerial Vehicles and other light reconnaissance aircraft. Based on customer feedback regarding the increased power, flexibility, small footprint, and networking capabilities of the Falcon III multiband manpack, Harris expects customers will continue to find additional applications for the new radio.

Work continues on further enhancements to the Falcon III product family. At the recent annual meeting of the Association of the U.S. Army (AUSA), Harris demonstrated a four-channel Falcon III multiband vehicular radio system designed to meet requirements of the JTRS radio program. This modular, cost-effective radio system can be configured in two-, three-, and four-channel variants covering a wide range of vehicular applications.

In another new product launch, Harris has introduced the RF-7800B Broadband Global Area Network (BGAN) terminal. The RF-7800B provides high-performance satellite communications connectivity for beyond line-of-sight, SATCOM-on-the-move, and SATCOM-at-the-quick-halt applications. These ruggedized SATCOM terminals are designed to military standards for operations in harsh environments.

Government Communications Systems

The Government Communications Systems segment - including the Defense Programs, National Intelligence Programs, Civil Programs, and IT Services businesses - reported first quarter revenue of $609 million, compared to $604 million in the prior-year quarter. The fiscal 2008 first quarter benefited from $22 million of non-recurring products and services revenue under the Patriot IT services program for the NRO (National Reconnaissance Office). Operating income in the first quarter was $66 million, compared to $64 million in the prior-year quarter. Operating margin was 10.9 percent in the quarter.

Segment programs that contributed to higher revenue in the first quarter included the FDCA (Field Data Collection Automation) program for the U.S. Census Bureau, several classified programs, the Global Geospatial Intelligence (GGI) program for the National Geospatial-Intelligence Agency (NGA), avionics shipments for the F-35 Joint Strike Fighter program, and the NETCENTS IT services program for the U.S. Air Force. Other revenue decreases resulted from the successful completion of the FAA Voice Switching and Control Systems (VSCS) refurbishment phase and completion of the MAF/TIGER program for the Census Bureau.

During the quarter, Harris was awarded new classified programs with a combined value of more than $110 million. In addition, Harris received a $53 million contract modification by the U.S. Navy to supply Ku-band Common Data Link (CDL) Hawklink systems for the MH-60R helicopter. Also in the quarter, Harris was awarded a $20 million contract as part of the Networx telecommunications contract to modernize the radio infrastructure for the FBI in the western half of the U.S.

Harris recently announced that its new Highband Networking Radio(TM) system will be deployed to the U.S. Army 101st Airborne Assault Division 2nd Brigade Combat Team in Baghdad. This is the first combat deployment of the new radio system, which will provide secure, high-bandwidth, on-the-move communications among users of widely dispersed local area networks, allowing seamless communication of voice, video and data to all levels of command.

In a new business area, Harris was awarded a one-year, $14 million contract to develop and implement the U.S. Department of Defense Military Health System global Healthcare Artifact and Image Management Solution (HAIMS). Harris will develop a multi-hospital military health network with image-sharing capabilities. The contract has four single-year incentive options.

Following the close of the quarter, the Harris National Intelligence Programs business was awarded more than $180 million in contracts to provide ground processing and communications systems for classified programs. In addition, Harris was awarded a $140 million order under a new multi-vendor, five-year IDIQ (Indefinite Delivery Indefinite Quantity) contract to provide systems integration and IT services to the NGA under the agency's Applied IT Solutions (AITS) contract. Also after the quarter close, Harris was awarded a potential $37 million contract modification by the U.S. Navy Space and Naval Warfare Systems Command to supply multiband shipboard satellite communications terminals for the Arleigh Burke class of guided missile destroyers.

Broadcast Communications

First quarter revenue in the Broadcast Communications segment was $158 million, an 8 percent increase compared to $147 million in the prior-year quarter. Sales of Transmission Systems increased at double-digit rates in the first quarter, driven by the over-the-air digital TV rollout in U.S. markets. The continuing global broadcast and media transition to digital and HD (high definition) operations drove higher year-over-year revenue for Infrastructure and Networking Solutions, including multiviewers and video networking equipment. Media and Workflow revenue was slightly lower than in the prior-year quarter, with stronger sales of server products offset by lower sales of automation and software systems.

Operating income in the first quarter of fiscal 2009 was $5 million and included $4 million in charges for cost-reduction actions expected to improve future operating performance. In addition to headcount reductions and facilities consolidation actions in the first quarter, additional initiatives focused on supply chain and operations cost reductions to improve gross margins. The segment continues to redirect spending to support expansion in growing international markets in the Middle East, Asia Pacific, Eastern Europe, and Latin America.

Harris is localizing more sales and marketing resources in international markets and has also announced a number of products which are optimized for international applications. Key international new products include the NEXIO AMP(TM) advanced media platform - the first video server to offer 1080p HD; the new Maxiva(TM) digital transmitter family - which boasts the lowest power utilization of any transmitter on the market; and the innovative InfoCaster(TM) digital signage solution.

The Harris ONE(TM) solution for interoperable workflow is having excellent success in international markets. Harris is uniquely capable of providing IT-centric, file-based workflows; broadcast technology for plant infrastructure; transmission competencies; and the media software to tie it all together. Significant Harris ONE solution orders in the quarter included Southern Cross Broadcasting in Australia, Guam Educational Telecommunications Corporation, the Czech Republic's Barrandov Studios, TV2 Denmark, ProSiebenSat.1 Produktion in Munich, Germany, PowerTurk, and Abu Dhabi Media Company. Additional international orders came from customers in China, Taiwan, India, and Vietnam.

Other significant orders in the quarter included systems for major U.S. broadcast and telecommunication companies. In addition, Harris is providing the NBA's 29 arenas with NEXIO(TM) HD servers, which will be used for editing game highlights. For Canadian network CTV, Harris is providing multiple Inscriber G7(TM) HD graphics systems to be networked together for multiple newsrooms throughout the country. In Las Vegas, Harris is providing its new InfoCaster(TM) digital signage systems to drive broadcast-quality graphics and live video/audio content to more than 150 screens throughout World Market Center Las Vegas, a dynamic new venue for the home and hospitality furnishings industry.

Harris Stratex Networks, Inc.

Harris Stratex Networks revenue for the first quarter of fiscal 2009 was $196 million, an increase of 14 percent compared to $172 million in the prior-year quarter. Revenue increased 5 percent compared to sequential fourth quarter revenue of $187 million. Segment operating income was $8 million, which included $3 million of restructuring charges. Harris Stratex Networks is a 56 percent majority-owned subsidiary of Harris.

The company reported good year-over-year growth in North America microwave revenue and strong double-digit growth in International microwave revenue. Strong year-over-year and sequential revenue growth was achieved in Africa and in the combined Latin America and Asia Pacific regions. Revenue improvement was driven in large part by the continuing success of the company's Eclipse(TM) IP product platform. The company has significantly increased the percent of product sales that is now attributed to higher-capacity IP-capable products. Market demand for microwave systems continues to be driven by the transition to IP networks, the evolution to 4G technologies, and wireless network infrastructure expansion in emerging regions of the world.

Outlook

Harris reconfirmed its earnings guidance for fiscal 2009 in a range of $4.05 to $4.15 per diluted share. Fiscal 2009 earnings guidance represents a year-over-year increase of 19 to 22 percent, compared to non-GAAP earnings in fiscal 2008. Revenue in fiscal 2009 is expected to increase by 8-10 percent compared to fiscal 2008. A reconciliation of GAAP to non-GAAP financial measures is provided in Table 7 along with the accompanying notes.

Harris will host a conference call today at 4:30 p.m. Eastern Time (ET) to discuss its first quarter fiscal 2009 financial results. The dial-in number for the teleconference is (913) 905-1087 and the access code is 5419433. Please allow at least 10 minutes prior to the scheduled start time to connect to the teleconference. Harris encourages you to listen via web cast, which will be broadcast live at http://www.harris.com/conference-call . A replay of the teleconference will be available beginning at 8:00 p.m. ET on October 29 and will run until midnight ET on Wednesday, November 5. To access the replay, please call (719) 457-0820, access code 5419433. A recording of the call will also be available on the Harris website beginning at 7:00 p.m. ET on October 29.

About Harris Corporation

Harris is an international communications and information technology company serving government and commercial markets in more than 150 countries. Headquartered in Melbourne, Florida, the company has annual revenue of $5.4 billion and 16,500 employees - including nearly 7,000 engineers and scientists. Harris is dedicated to developing best-in-class assured communications (R) products, systems, and services. Additional information about Harris Corporation is available at http://www.harris.com/ .

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the SEC, including earnings per share for fiscal 2008, excluding the impact of costs associated with our acquisitions and integration costs associated with the formation of Harris Stratex Networks. Harris management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. Management also believes that these non-GAAP financial measures enhance the ability of investors to analyze Harris business trends and to understand Harris performance. In addition, Harris may utilize non-GAAP financial measures as a guide in its forecasting, budgeting, and long-term planning process and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP.

Attachments: Financial Statements (eight tables). Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this release include but are not limited to: earnings guidance for fiscal 2009; the potential value of contract awards; and statements regarding outlook, including expected revenue, orders and cash flow. The Company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. The Company's consolidated results and the forward-looking statements could be affected by many factors, including but not limited to: our participation in markets that are often subject to uncertain economic conditions which makes it difficult to estimate growth in our markets and, as a result, future income and expenditures; our dependence on the U.S. government for a significant portion of our revenue, as the loss of this relationship or a shift in U.S. government funding could have adverse consequences on our future business; potential changes in U.S. government or customer priorities due to program reviews or revisions to strategic objectives, including termination of or potential failure to fund U.S. government contracts; risks inherent with large long-term fixed-price contracts, particularly the ability to contain cost overruns; financial and government and regulatory risks relating to international sales and operations, including fluctuations in foreign currency exchange rates and the effectiveness of our currency hedging program; our ability to continue to develop new products that achieve market acceptance; the consequences of future geo-political events, which may affect adversely the markets in which we operate, our ability to insure against risks, our operations or our profitability; strategic acquisitions and the risks and uncertainties related thereto, including our ability to manage and integrate acquired businesses; the inability of our subcontractors to perform, or our key suppliers to deliver components or parts; potential claims that we are infringing the intellectual property rights of third parties; the successful resolution of patent infringement claims and the ultimate outcome of other contingencies, litigation and legal matters; customer credit risk; the fair values of our portfolio of passive investments, which values are subject to significant price volatility or erosion; risks inherent in developing new technologies; changes in our effective tax rate that may have an adverse effect on our results of operations; the impact of the results of Harris Stratex Networks, which may vary significantly and may be difficult to forecast; the potential impact of natural disasters on our significant operations in Florida, California and other locations; general economic conditions in the markets in which we operate; changes in future business conditions that could cause business investments and/or recorded goodwill to become impaired; and our ability to attract and retain key employees. Further information relating to factors that may impact the Company's results and forward-looking statements are disclosed in the Company's filings with the SEC. The forward-looking statements contained in this release are made as of the date of this release, and Harris disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Table 1 HARRIS CORPORATION FY'09 First Quarter Summary CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited) Quarter Ended September 26, September 28, 2008 2007 (In millions, except per share amounts) Revenue from product sales and services $1,367.7 $1,230.5 Cost of product sales and services (928.4) (849.6) Engineering, selling and administrative expenses (240.3) (216.9) Non-operating income (loss) (8.1) 1.7 Interest income 1.7 2.0 Interest expense (13.1) (15.1) Income before income taxes and minority interest 179.5 152.6 Income taxes (61.4) (52.8) Minority interest in Harris Stratex Networks, Inc., net of tax 0.6 0.4 Net income $118.7 $100.2 Net income per common share Basic $.89 $.76 Diluted $.88 $.73 Cash dividends paid per common share $.20 $.15 Basic weighted average shares outstanding 133.1 132.6 Diluted weighted average shares outstanding 134.4 137.9 Table 2 HARRIS CORPORATION FY'09 First Quarter Summary BUSINESS SEGMENT INFORMATION (Unaudited) Quarter Ended September 26, September 28, 2008 2007 (In millions) Revenue RF Communications $415.2 $316.5 Government Communications Systems 609.1 603.9 Broadcast Communications 158.2 146.7 Harris Stratex Networks 195.8 172.3 Corporate eliminations (10.6) (8.9) $1,367.7 $1,230.5 Income Before Income Taxes and Minority Interest Segment Operating Income (Loss): RF Communications $142.1 $110.8 Government Communications Systems 66.3 63.8 Broadcast Communications 5.3 10.4 Harris Stratex Networks 7.9 (1.0) Unallocated Corporate expense (18.9) (18.6) Corporate eliminations (3.7) (1.4) Non-operating income (loss) (8.1) 1.7 Net interest (11.4) (13.1) $179.5 $152.6 Table 3 HARRIS CORPORATION FY'09 First Quarter Summary CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) Quarter Ended September 26, September 28, 2008 2007 (In millions) Operating Activities Net income $118.7 $100.2 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 42.5 41.9 Share-based compensation 9.0 10.2 Non-current deferred income taxes (3.1) 7.0 Impairment of securities available-for-sale 7.6 --- Gain on the sale of securities available-for-sale --- (2.1) Minority interest in Harris Stratex Networks, Inc., net of tax (0.6) (0.4) (Increase) decrease in: Accounts and notes receivable (121.4) (8.7) Inventories (66.8) (55.4) Increase (decrease) in: Accounts payable and accrued expenses 33.4 (52.1) Advance payments and unearned income (14.4) (4.6) Income taxes 35.9 18.2 Other (3.3) 12.6 Net cash provided by operating activities 37.5 66.8 Investing Activities Cash paid for acquired businesses --- (1.5) Additions of property, plant and equipment (24.8) (22.2) Additions of capitalized software (6.9) (10.3) Cash paid for short-term investments available-for-sale (1.2) (4.0) Proceeds from the sale of short-term investments available-for-sale 1.8 9.3 Proceeds from the sale of securities available-for-sale --- 3.1 Net cash used in investing activities (31.1) (25.6) Financing Activities Proceeds from borrowings 78.5 2.2 Repayment of borrowings (9.2) (5.9) Proceeds from exercise of employee stock options 5.3 16.5 Repurchases of common stock (81.6) (57.4) Cash dividends (26.9) (20.6) Net cash used in financing activities (33.9) (65.2) Effect of exchange rate changes on cash and cash equivalents (0.3) (0.7) Net decrease in cash and cash equivalents (27.8) (24.7) Cash and cash equivalents, beginning of year 370.0 368.3 Cash and cash equivalents, end of quarter $342.2 $343.6 Supplemental disclosure of noncash investing and financing activities Common stock issued in exchange for 3.5% convertible debentures, due fiscal 2023 $--- $163.5 Table 4 HARRIS CORPORATION FY'09 First Quarter Summary CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) September 26, June 27, 2008 2008 (In millions) Assets Cash and cash equivalents $342.2 $370.0 Short-term investments 2.5 3.1 Marketable equity securities 3.8 19.3 Receivables 981.5 859.0 Inventories 677.2 610.4 Current deferred income taxes 121.0 117.2 Other current assets 73.1 67.7 Property, plant and equipment 482.9 482.2 Goodwill 1,538.2 1,547.3 Identifiable intangible assets 351.8 367.0 Other non-current assets 109.3 115.4 $4,683.5 $4,558.6 Liabilities and Shareholders' Equity Short-term debt $88.2 $8.5 Accounts payable 409.8 390.8 Compensation and benefits 172.8 181.6 Other accrued items 263.4 239.1 Advance payments and unearned income 131.9 146.4 Income taxes payable 60.9 22.9 Current portion of long-term debt 0.7 5.7 Non-current deferred income taxes 27.2 29.8 Long-term debt 827.9 831.8 Other long-term liabilities 96.5 97.7 Minority interest in Harris Stratex Networks, Inc. 330.7 330.3 Shareholders' equity 2,273.5 2,274.0 $4,683.5 $4,558.6 HARRIS CORPORATION FY'09 First Quarter Summary RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE

To supplement our condensed consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we provide additional measures of segments' operating income (loss); cost of product sales and services; engineering, selling and administrative expenses; income before income taxes and minority interest; income taxes; minority interest; net income; and net income per diluted share adjusted to exclude certain costs, expenses, gains and losses. Harris management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. Harris management also believes that these non-GAAP financial measures enhance the ability of investors to analyze Harris business trends and to understand Harris performance. In addition, Harris may utilize non-GAAP financial measures as a guide in its forecasting, budgeting, and long-term planning process and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. A reconciliation of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follows:

Table 5 HARRIS CORPORATION FY'09 First Quarter Summary RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Condensed Consolidated Statement of Income (Unaudited) Quarter Ended Quarter Ended September 26, 2008 September 28, 2007 As Adjust- Non- As Adjust- Non- Reported ment GAAP Reported ment GAAP (In millions, except per share amounts) Revenue from product sales and services $1,367.7 $--- $1,367.7 $1,230.5 $--- $1,230.5 Cost of product sales and services(A) (928.4) --- (928.4) (849.6) 0.8 (848.8) Engineering, selling and administrative expenses(B) (240.3) --- (240.3) (216.9) 8.1 (208.8) Non-operating income (loss) (8.1) --- (8.1) 1.7 --- 1.7 Interest income 1.7 --- 1.7 2.0 --- 2.0 Interest expense (13.1) --- (13.1) (15.1) --- (15.1) Income before income taxes and minority interest 179.5 --- 179.5 152.6 8.9 161.5 Income taxes (61.4) --- (61.4) (52.8) (2.2) (55.0) Minority interest in Harris Stratex Networks, Inc., net of tax 0.6 --- 0.6 0.4 (2.8) (2.4) Net income $118.7 $--- $118.7 $100.2 $3.9 $104.1 Net income per diluted common share $.88 $--- $.88 $.73 $.03 $.76 Table 6 HARRIS CORPORATION FY'09 First Quarter Summary RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Business Segment Information (Unaudited) Quarter Ended Quarter Ended September 26, 2008 September 28, 2007 As Adjust- Non- As Adjust- Non- Reported ment GAAP Reported ment GAAP (In millions) Revenue RF Communi- cations $415.2 $--- $415.2 $316.5 $--- $316.5 Government Communications Systems 609.1 --- 609.1 603.9 --- 603.9 Broadcast Communi- cations 158.2 --- 158.2 146.7 --- 146.7 Harris Stratex Networks 195.8 --- 195.8 172.3 --- 172.3 Corporate eliminations (10.6) --- (10.6) (8.9) --- (8.9) $1,367.7 $--- $1,367.7 $1,230.5 $--- $1,230.5 Income Before Income Taxes and Minority Interest Segment Operating Income (Loss): RF Communi- cations $142.1 $--- $142.1 $110.8 $--- $110.8 Government Communications Systems(C) 66.3 --- 66.3 63.8 0.6 64.4 Broadcast Communi- cations 5.3 --- 5.3 10.4 --- 10.4 Harris Stratex Networks(D) 7.9 --- 7.9 (1.0) 8.3 7.3 Unallocated Corporate expense (18.9) --- (18.9) (18.6) --- (18.6) Corporate eliminations (3.7) --- (3.7) (1.4) --- (1.4) Non-operating income (loss) (8.1) --- (8.1) 1.7 --- 1.7 Net interest (11.4) --- (11.4) (13.1) --- (13.1) $179.5 $--- $179.5 $152.6 $8.9 $161.5 Table 7 HARRIS CORPORATION Reconciliation of FY'08 GAAP EPS to Non-GAAP EPS and Reconciliation of FY'09 GAAP EPS Guidance to FY'08 GAAP and Non-GAAP EPS (Unaudited) Guidance for Fiscal Year Fiscal Year Percent 2008 2009 Growth GAAP Earnings Per Diluted Share $3.26 $4.05 to $4.15 24% to 27% Charges associated with the combination with Stratex Networks, Inc. (E) $0.11 Charges associated with the acquisition of Multimax Incorporated (F) $0.01 Charges associated with the acquisition of Zandar Technologies plc (G) $0.01 Non-GAAP Earnings Per Diluted Share $3.39 $4.05 to $4.15 19% to 22% Table 8 HARRIS CORPORATION FY'09 First Quarter Summary Comparison of Harris Stratex Networks Segment GAAP and Non-GAAP Operating Income to that Reported by Harris Stratex Networks, Inc. (Unaudited) Quarter Ended Quarter Ended September 26, 2008 September 28, 2007 As Reported by As Reported by Harris Harris Stratex Stratex Harris Networks Harris Networks (In millions) Operating Income(Loss) -- As Reported(H) $7.9 $6.8 $(1.0) $--- Adjustments: Stratex combination- related costs --- 0.6 8.3 8.3 Restructuring --- 3.3 --- --- FAS 123R expense --- 1.1 --- 2.4 Other identifiable intangible amortization --- 3.2 --- 3.6 Operating Income -- Non-GAAP $7.9 $15.0 $7.3 $14.3 HARRIS CORPORATION FY'09 First Quarter Summary RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) Notes to tables 5 through 8:

Note A -- Adjustments to cost of product sales and services for the quarter ended September 28, 2007 are due to the step up in fixed assets and integration costs associated with the combination between Stratex Networks, Inc. (''Stratex'') and our former Microwave Communications Division ($0.8 million).

Note B -- Adjustments to engineering, selling and administrative expenses for the quarter ended September 28, 2007 are due to the step up in fixed assets and integration costs associated with the Stratex combination ($7.5 million); and integration costs associated with the acquisition of Multimax Incorporated (''Multimax'') ($0.6 million).

Note C -- Adjustments to our Government Communications Systems segment operating income for the quarter ended September 28, 2007 are due to integration costs associated with the acquisition of Multimax ($0.6 million).

Note D -- Adjustments to our Harris Stratex Networks segment operating income (loss) for the quarter ended September 28, 2007 are due to the step up in fixed assets and integration costs associated with the Stratex combination ($8.3 million).

Note E -- Adjustment for the $.11 per diluted share impact, after minority interest, of a step up in fixed assets and integration costs associated with the Stratex combination.

Note F -- Adjustment for the $.01 per diluted share impact of integration and other charges associated with our acquisition of Multimax.

Note G -- Adjustment for the $.01 per diluted share impact of integration and other charges associated with our acquisition of Zandar.

Note H -- The difference between the GAAP operating income (loss) recorded during the quarter ended September 26, 2008 by us versus by Harris Stratex Networks, Inc. is due to $1.1 million of adjustments that were recorded by Harris Stratex Networks, Inc. in its quarter ended June 27, 2008 after we had filed our fiscal 2008 Form 10-K; therefore, we recorded these adjustments in our quarter ended September 26, 2008. The difference between the GAAP operating income (loss) recorded during the quarter ended September 28, 2007 by us versus by Harris Stratex Networks, Inc. is due to $1.0 million of adjustments that were recorded by Harris Stratex Networks, Inc. as part of a restatement that was filed on September 25, 2008.

Harris Corporation

CONTACT: Investor Relations: Pamela Padgett, +1-321-727-9383,
pamela.padgett@harris.com, Media: Jim Burke, +1-321-727-9131,
jim.burke@harris.com, both of Harris Corporation; For additional information,
contact Harris Corporation at webmaster@harris.com

Web site: http://www.harris.com/
http://www.harris.com/conference-call

Pericom Semiconductor Reports Fiscal Q1 2009 Financial ResultsPosts Record Revenues with Year-Over-Year Revenue Growth of 14%

SAN JOSE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Pericom Semiconductor Corporation , a worldwide supplier of high-speed integrated circuits and frequency control products, today announced results for its fiscal first quarter ended September 27, 2008.

Quarterly Highlights -- Net revenues grew 1.2% sequentially and 14.1% year-over-year to $43.9 million. -- Net income declined 14.5% sequentially and increased 1.1% year-over-year to $3.9 million. -- Gross profits increased $0.4 million sequentially and $2.0 million year-over-year. Gross margins increased 0.4% sequentially and were constant year-over-year at 36.4%. -- Total shares repurchased were 200,000 shares.

Net revenues for the first quarter were $43.9 million, up 1.2% from the $43.4 million reported in the fourth quarter of last year, and up 14.1% from the $38.5 million reported in the comparable period last year. Gross margin was 36.4%, up 0.4% from 36.0% last quarter mainly due to a higher mix of IC products compared to the fourth quarter of last year. Operating expenses in the quarter were $11.1 million, up from $10.6 million in the previous quarter of last year and up from $9.9 million in the comparable period last year. Stock based compensation expense in the quarter was $0.8 million, up from $0.6 million in the previous quarter of last year and up from $0.5 million in the comparable period last year. Net income in the quarter was $3.9 million, or $0.15 per diluted share, compared with net income of $4.6 million, or $0.17 per diluted share in the fourth quarter of last year and net income of $3.9 million, or $0.15 per diluted share, in the same period a year ago.

"Pericom had an outstanding quarter with record revenue growth of 14 percent year-over-year, and solid profitability," said Alex Hui, president and CEO of Pericom. "We have a strong financial foundation - this quarter alone we generated $30 million in cash and repurchased over 139 thousand shares."

"While we enter our fiscal second quarter with a cautious outlook, due to the challenging business environment and limited visibility on end-market demands, we remain confident in our competitive position in the markets we serve. Our strategy to focus on enabling serial connectivity in high performance systems reaches out to a diverse set of customers in established and emerging markets and positions us to resume strong growth as the global economy achieves more stability," concluded Hui.

New Products

Pericom introduced a total of 8 new products across the Signal Integrity, Timing and Connectivity product areas in this quarter.

Continuing to expand its solutions for high-speed serial protocols, Pericom introduced 2 switch products supporting the new DisplayPort(TM) serial protocol and legacy VGA standard, targeting volume notebook and PC market segments. A family of 4 LVDS switches for LCD panel switching in notebook applications was also released. All 6 new switches address the need for seamless switching of multiple displays or display port options in next generation notebook and PC products.

Expanding its timing solutions for high speed serial protocols, Pericom introduced the FD family of very low jitter, very high power supply rejection crystal oscillators. This new high performance oscillator family is aimed at hard disk drives, wireless access, and other high speed serial protocol applications that require a very stable, very low jitter clock source.

Adding to its broad PCIe Connectivity solution family, Pericom introduced an 'industry first' PCIe packet switch offering extremely small package and very low power consumption, enabling the new switch to target volume Computing, Consumer and Networking platforms.

Share Repurchase Update

On April 26, 2007, the Company's Board of Directors authorized the repurchase of an additional 2.0 million shares and on April 29, 2008, our Board of Directors authorized the repurchase of an additional $30 million of our common stock. Pursuant to the 2007 authority, the Company repurchased 139,190 shares in the three months ended September 27, 2008 for an aggregate cost of $1.9 million and completed the repurchase of 2,000,000 shares at a total cost of approximately $25.2 million. Pursuant to the 2008 authority, the Company repurchased 60,810 shares in the three months ended September 27, 2008 for an aggregate cost of $0.8 million. During the same period in fiscal 2008, the Company repurchased approximately 0.5 million shares for an aggregate cost of $5.0 million. Shares purchased in the three months ended September 27, 2008 under the 2007 and 2008 authority had a combined average per share purchase price of $13.34.

Fiscal Q2 Outlook

The following statements are based on current expectations. These statements are forward looking, and actual results may differ materially.

-- Revenues in the second fiscal quarter are expected to be in the range of $36.0 million to $40.0 million. -- Gross margins are expected to be in the range of 35.0% to 36.0%. Margins are influenced by the product mix of turns business and sales. -- Operating expenses are expected to be in the range of $10.6 million to $11.0 million, which include stock-based compensation expense of approximately $0.9 million. -- Other income is expected to be approximately $1.0 million, consisting primarily of interest income. -- The effective tax rate is expected to be approximately 34.0%. Conference Call

The press release will be followed by a conference call beginning at 1:30 p.m. Pacific time. To listen to the call, dial (877) 874-1588 (domestic) or (719) 325-4811 (international) and reference "Pericom." A slide presentation will accompany the conference call. To view the slides, please visit the investor relations section of http://www.pericom.com/.

A taped replay of the conference call will be made available for four business days. To listen to the replay, dial (888) 203-1112 and reference Passcode 3609417. The Pericom financial results conference call will be available via a live webcast on the investor relations section of the web site at http://www.pericom.com/. Access the web site 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the web site for approximately 90 days.

About Pericom

Pericom Semiconductor Corporation enables serial connectivity with the industry's most complete solutions for the computing, communications and consumer market segments. Pericom's analog, digital and mixed-signal integrated circuits, along with its SaRonix-eCERA frequency control products are essential in the timing, switching, bridging and conditioning of high-speed signals required by today's ever-increasing speed and bandwidth demanding applications. Company headquarters is in San Jose, Calif., with design centers and technical sales and support offices globally. http://www.pericom.com/

This press release contains forward-looking statements as defined under The Securities Litigation Reform Act of 1995. Forward-looking statements in this release include statements regarding Pericom being positioned to resume strong growth and the statements under the captions 'Fiscal Q2 Outlook', which regard the anticipated revenues, gross margin, operating expenses, other income and tax rate in the first fiscal quarter, The Company's actual results could differ materially from what is set forth in such forward-looking statements due to a variety of risk factors, including softness in demand for our products, price erosion for certain of our products, unexpected difficulties in developing new products, customer decisions to reduce inventory, economic or financial difficulties experienced by our customers, or technological and market changes. All forward-looking statements included in this document are made as of the date hereof, based on information available to the Company as of the date hereof, and Pericom assumes no obligation to update any forward-looking statements. Parties receiving this release are encouraged to review our annual report on Form 10-K for the year ended June 28, 2008 and in particular the risk factors sections of that filing.

Pericom Semiconductor Corporation Consolidated Statements of Operations (In thousands, except per share data) (unaudited) Three Months Ended Sep 27 Jun 28 Sep 29 2008 2008 2007 Net revenues $ 43,896 $ 43,373 $ 38,468 Cost of revenues 27,914 27,768 24,467 Gross profit 15,982 15,605 14,001 Operating expenses: Research and development 4,221 4,296 4,082 Selling, general and administrative 6,901 6,294 5,839 Total 11,122 10,590 9,921 Income from operations 4,860 5,015 4,080 Interest and other income 1,106 1,606 1,370 Other than temporary decline in value of investment (44) (24) 0 Income before income taxes 5,922 6,597 5,450 Income tax expense 2,069 2,132 1,691 Minority interest in (income) loss in consolidated subsidiary (45) (53) 3 Equity in income (loss) of investees 117 181 121 Net income $ 3,925 $ 4,593 $ 3,883 Basic income per share $ 0.15 $ 0.18 $ 0.15 Diluted income per share $ 0.15 $ 0.17 $ 0.15 Shares used in computing basic income per share 25,679 25,480 25,745 Shares used in computing diluted income per share 26,239 26,472 26,379 Pericom Semiconductor Corporation Condensed Consolidated Balance Sheets (In thousands) As of As of Sept 27, Jun 28, 2008 2008 (unaudited) (1) Assets Current Assets: Cash & cash equivalents $ 39,069 $ 41,646 Short-term investments 45,589 72,108 Accounts receivable 32,397 29,002 Other receivables 1,817 1,684 Inventories 18,740 17,921 Prepaid expenses and other current assets 4,895 5,943 Deferred income taxes 3,996 3,344 Total current assets 146,503 171,648 Property and equipment, net 28,751 29,173 Investments in unconsolidated Affiliates 10,452 10,392 Deferred income taxes-non current 4,554 4,543 Long-term investment in marketable securities 36,332 10,171 Goodwill 1,325 1,325 Intangible assets 1,090 1,140 Other assets 3,343 3,191 Total assets $ 232,350 $ 231,583 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 14,831 $ 13,431 Accrued liabilities 7,874 8,779 Total current liabilities 22,705 22,210 Deferred tax liabilities 800 800 Non-current tax liabilities 1,018 - Minority interest in consolidated subsidiaries 1,163 1,118 Total liabilities 25,686 24,128 Shareholders' equity: Common stock 130,580 132,028 Retained earnings and other 76,084 75,427 Total shareholders' equity 206,664 207,455 Total liabilities and shareholders' Equity $ 232,350 $ 231,583 (1) Information derived from the audited Consolidated Financial Statements.

Pericom Semiconductor Corporation

CONTACT: Jason Golz of FD Ashton Partners, +1-415-293-4411,
jason.golz@fdashtonpartners.com, for Pericom Semiconductor Corporation

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

United Technologies Corp. Advisory to Securities Analysts, Investors and News Media

HARTFORD, Conn., Oct. 29 /PRNewswire-FirstCall/ -- A webcast of United Technologies Corp. Senior Vice President and Chief Financial Officer Greg Hayes speaking at the Goldman Sachs Global Industrials Conference is scheduled for 8:45 a.m. ET on Wednesday, Nov. 5. The presentation will be broadcast live on the Internet at http://www.utc.com/ and will be archived on the Web site afterward.

United Technologies, based in Hartford, Conn., is a diversified company that provides high technology products and services to the building and aerospace industries

Contact: John Moran, UTC (860) 728-7062 UTC-IR

United Technologies Corp.

CONTACT: John Moran of UTC, +1-860-728-7062

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

Company News On-Call: http://www.prnewswire.com/comp/913919.html

EF Johnson Technologies Announces Third Quarter 2008 ResultsReports Quarterly Revenues of $34.5 million, Gross Margin of 37%, and $0.4 million in Third Quarter Net Income

IRVING, Texas, Oct. 29 /PRNewswire-FirstCall/ -- EF Johnson Technologies, Inc. , a leading provider of secure wireless solutions, today announced its results for the quarter ended September 30, 2008. Revenues were $34.5 million, gross margin was 37% and net income was $0.4 million or $0.02 per diluted share, for the three months ended September 30, 2008.

"This quarter's financial performance reflects actions taken earlier this year to improve our product line, improve margins, and reduce costs; a continuing effort to focus the company on profitability in 2008," said Michael E. Jalbert, chairman and chief executive officer. "Additionally, our third quarter order performance was strong with several strategic wins, including:

-- a $48.0 million contract from the U.S. Navy to test and implement a Navy-wide Virtual Perimeter Monitoring System (NVPMS) under which we have received task orders totaling $19.0 million to date; -- an order valued at $3.8 million from a US Department of Defense (DoD) customer to develop an advanced security and encryption solution; -- an order from the City of Norfolk to provide a secure video surveillance solution featuring military grade encryption that is FIPS 140-2 Validated; -- multiple state and local orders totaling $7 million; and -- several orders for the federal Departments of Defense and Homeland Security."

Revenues increased $0.8 million, or 2%, to $34.5 million, as compared to last year's third quarter revenues of $33.7 million. Additionally, gross profit increased $3.0 million, or 31%, to $12.6 million in the three months ended September 30, 2008, from $9.6 million for the same period in 2007. Gross profit as a percentage of revenues ("Gross Margin") was 37% for the three months ended September 30, 2008, versus 29% for the same period a year ago. The improved Gross Margin in the three months ended September 30, 2008 was primarily due to favorable margins associated with revenues from products delivered in the third quarter of 2008, coupled with cost reduction programs, as compared to the lower margins achieved from the large deliveries against Department of Defense contracts in 2007.

Operating expenses declined $1.3 million, or 9%, to $11.9 million in the third quarter of 2008, as compared to last year's third quarter of $13.2 million, primarily due to cost reduction programs put in place in the first quarter of 2008 associated with the integration of our businesses.

Net income was $0.4 million, or $0.02 per diluted share, for the three months ended September 30, 2008, as compared to net loss of $3.4 million, or $0.13 per share, for the same period last year. Net income was higher in the third quarter of 2008 due to the improvement in gross profit together with a lower operating expense structure.

For the nine months ended September 30, 2008, revenues decreased $29.0 million, or 22%, to $101.0 million, as compared to $130.0 million for the nine months of 2007. The lower year to date revenues compared with the prior year are due to the cumulative shipments against the large DoD contract shipped in the first nine months of 2007, not replicated in 2008. Net loss for the first nine months of 2008 was $0.7 million as compared to net income of $0.1 million for the first nine months of 2007. Loss per share for the first nine months of 2008 was $0.03 per share as compared to breakeven earnings per share for the same period in 2007.

The Company recorded non-cash expenses of $5.2 million for the first nine months of 2008 related to $1.7 million of stock based compensation and $3.4 million of depreciation and amortization.

At September 30, 2008, the company had $6.2 million in cash, compared with $15.6 million at December 31, 2007, reflecting cash used in operations. The company had $2.0 million borrowings against its revolving credit facility at September 30, 2008. The use of cash was primarily due to delayed collection of certain receivables which was resolved subsequent to the end of the quarter.

Commenting on the Company's business outlook, Mr. Jalbert said, "Although ongoing uncertainty surrounding the U.S. economy and federal government funding during an election year may impact purchasing decisions by key customers in the fourth quarter and into 2009, we remain cautiously optimistic."

The Company's management plans to discuss the financial results and provide an operational progress report on its investor call today at 3:30 p.m. (CDT). The investor conference call will be available via live webcast on the EF Johnson Technologies Inc. website at http://www.efji.com/ under the tab "Investor Relations." Investors are advised to go to the website at least 15 minutes prior to the call to register, download and install any necessary audio software. The webcast will be archived for 60 days.

To participate by telephone, the domestic dial-in number is 877-407-8031 and the international dial-in number is 201-689-8031. Participants are urged to call in to the conference call at least 10 minutes prior to the start time.

About EF Johnson Technologies, Inc.

Headquartered in Irving, Texas, EF Johnson Technologies, Inc. focuses on innovating, developing and marketing the highest quality secure communications solutions to organizations whose mission is to protect and save lives. The Company's customers include first responders in public safety and public service, the federal government, and industrial organizations. The Company's products are marketed under the EFJohnson, 3e Technologies International, and Transcrypt International brand names. For more information, visit http://www.efji.com/.

Safe Harbor

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements due to a number of risk factors including, but not limited to, the level of demand for the company's products and services, increased competition, reliance on contract manufacturers, the timely procurement of necessary manufacturing components, implementation of application software, successful integration of the system components, dependence on continued funding of governmental agency programs, general economic and business conditions, and other risks detailed in the company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the period ended December 31, 2007 and in the company's subsequent filings with the SEC. These forward-looking statements are made as of the date of this press release and the company's undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

EF JOHNSON TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the three and nine months ended September 30, 2008 and 2007 (Unaudited and in thousands, except share and per share data) Three Months Nine Months Ended Ended September 30, September 30, 2008 2007 2008 2007 Revenues $34,500 $33,715 $100,969 $129,959 Cost of sales 21,872 24,065 66,284 89,305 Gross profit 12,628 9,650 34,685 40,654 Operating expenses: Research and development, net of reimbursements 3,559 3,929 6,935 11,504 Sales and marketing 3,275 3,163 9,689 10,288 General and administrative 4,756 5,699 16,862 17,537 Amortization of intangibles 357 407 1,170 1,202 Total operating expenses 11,947 13,198 34,656 40,531 Income (loss) from operations 681 (3,548) 29 123 Interest income (expense), net (259) 33 (707) 12 Income (loss) before income taxes $422 $(3,515) (678) 135 Income tax benefit (expense) - 137 - (22) Net income (loss) $422 $(3,378) $(678) $113 Net income (loss) per share - Basic $0.02 $(0.13) $(0.03) $- Net income (loss) per share - Diluted $0.02 $(0.13) $(0.03) $- Weighted average common shares - Basic 26,121,544 26,035,933 26,088,648 26,032,312 Weighted average common shares - Diluted 26,687,013 26,035,933 26,088,648 26,397,343 EF JOHNSON TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2008 and December 31, 2007 (Unaudited and in thousands, except share and per share data) ASSETS September 30, December 31, 2008 2007 Current assets: Cash and cash equivalents $6,241 $15,636 Accounts receivable, net of allowance for returns and doubtful accounts of $1,890 and $1,642, respectively 32,097 21,345 Receivables - other 5,218 6,944 Cost in excess of billings on uncompleted contracts 3,241 3,275 Inventories 33,663 33,871 Prepaid expenses 1,171 1,109 Total current assets 81,631 82,180 Property, plant and equipment, net 6,397 7,096 Restricted cash 2,012 - Goodwill 20,040 20,040 Other intangible assets, net of accumulated amortization 12,651 13,821 Other assets 215 352 TOTAL ASSETS $122,946 $123,489 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Revolving line of credit $2,000 $- Current portion of long-term debt obligations 9 8 Accounts payable 11,476 13,411 Accrued expenses 9,636 11,232 Billings in excess of cost on uncompleted contracts 289 221 Deferred revenues 817 1,010 Total current liabilities 24,227 25,882 Long-term debt obligations, net of current portion 15,008 15,015 Deferred income taxes 1,489 1,489 Other liabilities 675 737 TOTAL LIABILITIES 41,399 43,123 Stockholders' equity: Preferred stock ($0.01 par value; 3,000,000 shares authorized; none issued) -- -- Common stock ($0.01 par value; 50,000,000 voting shares authorized, 26,273,240 and 26,210,232 issued and outstanding as of September 30, 2008 and December 31, 2007, respectively) 262 262 Additional paid-in capital 155,162 153,356 Accumulated other comprehensive loss (657) (710) Accumulated deficit (73,220) (72,542) TOTAL STOCKHOLDERS' EQUITY 81,547 80,366 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $122,946 $123,489

EF Johnson Technologies, Inc.

CONTACT: Jana Ahlfinger Bell of EF Johnson Technologies, Inc.,
+1-972-819-0700, jbell@efji.com

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

Blackboard Inc. Reports Third Quarter 2008 Results- Company Reports Record Cash Flow from Operations and Raises Full Year Cash Flow from Operations Guidance -- Third Quarter Revenue Increases 35 Percent to $83.1 Million -

WASHINGTON, Oct. 29 /PRNewswire-FirstCall/ -- Blackboard Inc. today announced financial results for the third quarter ended September 30, 2008 and updated guidance for the fourth quarter and the full year of 2008.

Total revenue for the quarter ended September 30, 2008 was $83.1 million, an increase of 35 percent over the third quarter of 2007. Product revenues for the quarter were $74.3 million, an increase of 38 percent over the third quarter of 2007, while professional services revenues for the quarter were $8.8 million, an increase of 16 percent over the third quarter of 2007. For the third quarter of 2008, net income was $2.1 million, or $0.07 per basic share and $0.06 per diluted share, compared to net income of $3.3 million, or $0.11 per basic and diluted share for the third quarter of 2007. In the quarter, the company had a $2.4 million benefit for income taxes.

"We are pleased with our third quarter financial results which were inline with our prior guidance when you adjust for the income tax benefit. In addition, we were able to generate record cash flows from operations of $60.3 million during the quarter," said Michael Chasen, CEO and President of Blackboard Inc. "We experienced high client retention rates in our peak renewal quarter and we continue to believe that long-term demand for our solutions is strong due to the value we bring to our clients."

Commenting on the Company's sales and outlook, Chasen continued, "Following very strong sales in the second quarter, our new sales in the third quarter were impacted by the challenging macroeconomic environment, particularly to K-12 clients, where budgets are more economically sensitive. Therefore, we are taking a cautious approach to our outlook for the fourth quarter. However, despite our caution, we believe that we will continue to benefit from the strength of our annual subscription business model coupled with the relative resiliency of the education sector. We are well positioned for continued revenue growth and margin expansion in 2009 and beyond."

Financial Highlights from the Third Quarter of 2008 -- Total revenue for the quarter ended September 30, 2008 was $83.1 million, an increase of 35 percent over the third quarter of 2007. -- Net income was $2.1 million, or $0.07 per basic share and $0.06 per diluted share, for the third quarter of 2008, compared to net income of $3.3 million, or $0.11 per basic and diluted share for the third quarter of 2007. -- Non-GAAP adjusted net income was $8.0 million, or $0.25 per diluted share, for the third quarter of 2008, compared to $6.6 million or $0.22 per diluted share for the third quarter of 2007. Please refer to Blackboard's "Use of Non-GAAP Financial Measures" below. -- Cash flows from operations were $60.3 million for the third quarter of 2008, up 57 percent from the third quarter of 2007. -- Capital expenditures were $4.9 million for the third quarter of 2008. -- Cash and cash equivalents were $118.7 million at September 30, 2008. Business Highlights from the Third Quarter of 2008 -- A few of Blackboard's new and expanded client relationships in the quarter included: - U.S. Higher Education: Bellevue University, Central Oregon Community College, Dowling College, Duke University, Fayetteville Technical Community College, George Washington University, Northeastern State University, Oakland Community College, Portland Community College, Sinclair Community College, Tulane University, University of Arizona, University of Maryland -- College Park, Yuba College and others. - International: Chartered Institute of Professional Development, Istanbul Bilgi University, King Khalid University, TU Twente, Universidad de Los Andes, Universiteit Maastricht, University of Birmingham, University of Creative Arts, University of Luiss, University of New South Wales and others. - K-12: Archdiocese of New Orleans Office of Catholic Schools (LA), Jefferson Parish Public Schools (LA), Kentucky Department of Education KY), Macomb Intermediate School District (GA), Pennsylvania Cyber Charter School (PA) and others. -- Blackboard was selected by the State of New Mexico to deploy a single, statewide e-learning platform that will be the first of its kind to connect teaching, learning, and training for the state's K-20, adult education, and government communities. -- Blackboard announced the availability of Blackboard School Central, a powerful, cost-effective online learning platform that empowers K-12 school districts of any size to securely and reliably expand learning opportunities and teacher professional development. Outlook for the Fourth Quarter and Full Year of 2008 Fourth Quarter of 2008: -- Revenue of $82.9 to $84.9 million; -- Amortization of acquired intangibles of approximately $9.8 million; -- Stock-based compensation expense of approximately $3.9 million; -- Net income of $900,000 to $2.2 million, resulting in net income per diluted share of $0.03 to $0.07, which is based on an estimated 32.2 million diluted shares, and an estimated income tax benefit of approximately $600,000; and -- Non-GAAP adjusted net income of $7.2 to $8.0 million, resulting in non-GAAP adjusted net income per diluted share of $0.22 to $0.25 based on an estimated 32.2 million diluted shares and an estimated effective tax rate of 29 percent. Full Year 2008: -- Revenue of $310.0 to $312.0 million; -- Amortization of acquired intangibles of approximately $38.3 million; -- Stock-based compensation expense of approximately $15.1 million; -- Net income of $800,000 to $2.1 million, resulting in net income per diluted share of $0.02 to $0.06, which is based on an estimated 31.8 million diluted shares, and an estimated income tax benefit of approximately $2.8 million; -- Non-GAAP adjusted net income of $24.4 to $25.2 million, resulting in non-GAAP adjusted net income per diluted share of $0.76 to $0.79 based on an estimated 31.8 million diluted shares and an estimated effective tax rate of 33 percent; and -- Cash flow from operations of $80.0 to $85.0 million. Conference Call

Blackboard will broadcast its third quarter conference call live over the Internet today beginning at 4:30 p.m. (Eastern). Interested parties can access the webcast through the Investor Relations section of the Company's Web site at http://investor.blackboard.com/.

A replay of the call will be available via telephone from approximately 7:00 p.m. (ET) on October 29, 2008 until 11:00 p.m. (ET) on November 5, 2008. To listen to the replay, participants in the U.S. and Canada should dial 888-286-8010, and international participants should dial +1 (617) 801-6888. The conference ID for the replay is 85636788.

Use of Non-GAAP Financial Measures

This release includes information about the Company's non-GAAP adjusted net income and non-GAAP adjusted net income per share which are non-GAAP financial measures. Management believes that both measures, which exclude amortization of acquired intangibles and the associated tax impact, provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations and aspects of current operating performance which can be effectively managed. Since the Company has historically reported these non-GAAP results to the investment community, management also believes the inclusion of these non-GAAP financial measures provides consistency in its financial reporting and facilitates investors' understanding of the Company's historic operating trends by providing an additional basis for comparisons to prior periods. In addition, the Company's internal reporting, including information provided to the Company's Audit Committee and Board of Directors, contains non-GAAP measures. The Company has also adopted internal compensation metrics that are determined on a basis that excludes amortization of acquired intangibles and the associated tax impact.

A material limitation associated with the use of the above non-GAAP financial measures is that they have no standardized measurement prescribed by GAAP and may not be comparable with similar non-GAAP financial measures used by other companies. The Company compensates for these limitations by providing full disclosure of each non-GAAP financial measure and reconciliation to the most directly comparable GAAP financial measure, which investors can use to appropriately consider each financial measure, determined under GAAP as well as on the adjusted non-GAAP basis. However, the non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In addition to the information contained in this release, investors should also review information contained in the Company's Form 10-Q dated August 7, 2008, as well as other filings with the Securities and Exchange Commission when assessing the Company's financial condition and results of operations.

About Blackboard Inc.

Blackboard Inc. is a global leader in enterprise technology and innovative solutions that improve the experience of millions of students and learners around the world every day. Blackboard's solutions allow thousands of higher education, K-12, professional, corporate, and government organizations to extend teaching and learning online, facilitate campus commerce and security, and communicate more effectively with their communities. Founded in 1997, Blackboard is headquartered in Washington, D.C., with offices in North America, Europe, Asia and Australia.

Blackboard Educate. Innovate. Everywhere.(TM)

Any statements in this press release about future expectations, plans and prospects for Blackboard and other statements containing the words "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the factors discussed in the "Risk Factors" section of our Form 10-Q filed on August 7, 2008 with the SEC. In addition, the forward-looking statements included in this press release represent the Company's views as of October 29, 2008. The Company anticipates that subsequent events and developments will cause the Company's views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to October 29, 2008.

BLACKBOARD INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) Three Months Ended Nine Months Ended September 30 September 30 --------------------- ----------------------- 2007 2008 2007 2008 ----------- ----------- ----------- ----------- (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Product $53,993 $74,332 $156,273 $205,818 Professional services 7,569 8,758 19,973 21,295 ----------- ----------- ----------- ----------- Total revenues 61,562 83,090 176,246 227,113 Operating expenses: Cost of product revenues, excludes $2,928 and $4,572 for the three months ended September 30, 2007 and 2008, respectively, and $8,676 and $13,232 for the nine months ended September 30, 2007 and 2008, respectively, in amortization of acquired technology included in amortization of intangibles resulting from acquisitions shown below (1) 11,955 19,626 35,611 53,597 Cost of professional services revenues (1) 4,437 4,994 12,339 15,078 Research and development (1) 6,927 10,514 20,842 30,191 Sales and marketing (1) 18,215 24,079 49,418 67,699 General and administrative (1) 10,383 12,716 28,242 37,931 Proceeds from patent judgment - - - (3,313) Amortization of intangibles resulting from acquisitions 5,496 9,729 16,388 28,137 ----------- ----------- ----------- ----------- Total operating expenses 57,413 81,658 162,840 229,320 ----------- ----------- ----------- ----------- Income (loss) from operations 4,149 1,432 13,406 (2,207) Other income (expense): Interest expense (1,920) (1,798) (3,835) (5,545) Interest income 2,420 339 3,332 1,487 Other income (expense) 1,021 (233) 1,970 3,857 ----------- ----------- ----------- ----------- Income (loss) before (provision) benefit for income taxes 5,670 (260) 14,873 (2,408) (Provision) benefit for income taxes (2,391) 2,351 (6,211) 2,243 ----------- ----------- ----------- ----------- Net income (loss) $3,279 $2,091 $8,662 $(165) =========== =========== =========== =========== Net income (loss) per common share: Basic $0.11 $0.07 $0.30 $(0.01) =========== =========== =========== =========== Diluted $0.11 $0.06 $0.29 $(0.01) =========== =========== =========== =========== Weighted average number of common shares: Basic 28,956,253 31,184,215 28,668,076 30,754,997 =========== =========== =========== ============ Diluted 30,116,974 32,203,249 29,981,276 30,754,997 =========== =========== =========== ============ (1) Includes the following amounts related to stock-based compensation: Cost of product revenues $183 $244 $469 $679 Cost of professional services revenues 181 8 471 240 Research and development 102 195 351 547 Sales and marketing 1,248 1,549 3,178 4,630 General and administrative 1,817 1,636 4,292 5,015 Reconciliation of income (loss) before (provision) benefit for income taxes to non-GAAP adjusted net income (2): Income (loss) before (provision) benefit for income taxes $5,670 $(260) $14,873 $(2,408) Add: Amortization of intangibles resulting from acquisitions 5,496 9,729 16,388 28,137 Adjusted provision for income taxes (3) (4,524) (1,492) (12,646) (8,871) ----------- ----------- ----------- ----------- Non-GAAP adjusted net income $6,642 $7,977 $18,615 $16,858 =========== =========== =========== =========== Non-GAAP adjusted net income per common share - diluted $0.22 $0.25 $0.62 $0.53 =========== =========== =========== =========== (2) Non-GAAP adjusted net income and non-GAAP adjusted net income per share are non-GAAP financial measures and have no standardized measurement prescribed by GAAP. Management believes that both measures provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations and since the Company has historically reported these non-GAAP results they provide an additional basis for comparisons to prior periods. The non-GAAP financial measures may not be comparable with similar non-GAAP financial measures used by other companies and should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. The Company provides the above reconciliation to the most directly comparable GAAP financial measure to allow investors to appropriately consider each non-GAAP financial measure. (3) Adjusted provision for income taxes is applied at an effective rate of approximately 40.5% and 15.8% for the three months ended September 30, 2007 and 2008, respectively, and approximately 40.5% and 34.5% for the nine months ended September 30, 2007 and 2008, respectively. BLACKBOARD INC. CONDENSED CONSOLIDATED BALANCE SHEETS December 31, September 30, 2007 2008 ------------ ------------- (unaudited) (in thousands, except per share amounts) ASSETS Current assets: Cash and cash equivalents $206,558 $118,746 Accounts receivable, net 52,846 102,542 Inventories 2,089 2,030 Prepaid expenses and other current assets 5,255 8,911 Deferred tax asset, current portion 6,549 7,849 Deferred cost of revenues 6,877 6,883 ------------ ------------- Total current assets 280,174 246,961 Deferred tax asset, noncurrent portion 34,154 18,206 Common stock warrant - 1,990 Restricted cash 4,015 4,253 Property and equipment, net 18,584 34,147 Goodwill and intangible assets, net 168,349 349,316 ------------ ------------- Total assets $505,276 $654,873 ============ ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $3,747 $4,570 Accrued expenses 24,182 24,862 Deferred rent, current portion 160 289 Deferred revenues, current portion 126,600 186,307 ------------ ------------- Total current liabilities 154,689 216,028 Notes payable, net of debt discount 161,519 162,805 Deferred rent, noncurrent portion 1,469 9,915 Deferred revenues, noncurrent portion 2,925 5,194 Stockholders' equity: Common stock, $0.01 par value 292 313 Additional paid-in capital 263,582 339,983 Accumulated deficit (79,200) (79,365) ============ ============= Total stockholders' equity 184,674 260,931 ------------ ------------- Total liabilities and stockholders' equity $505,276 $654,873 ============ ============= BLACKBOARD INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended September 30 -------------------------- 2007 2008 ----------- ----------- (unaudited) (unaudited) (in thousands) Cash flows from operating activities Net income (loss) $8,662 $(165) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income tax benefit (2,278) (6,094) Excess tax benefits from stock-based compensation (6,233) (1,903) Amortization of debt discount 1,352 1,286 Depreciation and amortization 7,858 11,642 Amortization of intangibles resulting from acquisitions 16,388 28,137 Change in allowance for doubtful accounts 54 245 Noncash stock-based compensation 8,761 11,111 Gain on common stock warrant - (3,980) Changes in operating assets and liabilities: Accounts receivable (13,478) (41,818) Inventories 221 59 Prepaid expenses and other current assets (2,176) (2,582) Deferred cost of revenues (78) (6) Accounts payable (1,122) (2,027) Accrued expenses 8,038 1,006 Deferred rent 355 8,575 Deferred revenues 13,466 51,932 =========== =========== Net cash provided by operating activities 39,790 55,418 Cash flows from investing activities Purchases of property and equipment (11,154) (22,297) Proceeds from common stock warrant - 1,990 Payments for patent enforcement costs (2,978) (3,141) Purchase of intangible assets (1,530) - Purchases of available-for-sale securities (24,850) - Sales of available-for-sale securities 24,850 - Acquisitions, net of cash acquired - (132,992) ----------- ----------- Net cash used in investing activities (15,662) (156,440) Cash flows from financing activities Proceeds from notes payable 160,456 - Payments on term loan (24,400) - Payments on letters of credit (338) (54) Releases of letters of credit - 704 Excess tax benefits from stock-based compensation 6,233 1,903 Proceeds from exercise of stock options 11,177 10,657 ----------- ----------- Net cash provided by financing activities 153,128 13,210 ----------- ----------- Net increase (decrease) in cash and cash equivalents 177,256 (87,812) Cash and cash equivalents at beginning of period 30,776 206,558 ----------- ----------- Cash and cash equivalents at end of period $208,032 $118,746 =========== ===========

Blackboard Inc.

CONTACT: Michael J. Stanton, Senior Vice President, Corporate Affairs &
Treasury of Blackboard Inc., +1-202-463-4860, ext. 2305

Web site: http://www.blackboard.com/
http://investor.blackboard.com/

China GrenTech Schedules 2008 Third Quarter Earnings Release For Thursday, November 13, 2008

Earnings Conference Call to be Held on Friday, November 14, 2008 at 5:00 am (Pacific) / 8:00 am (Eastern) / 9:00 pm (Beijing/Hong Kong)

SHENZHEN, China, Oct. 29 /Xinhua-PRNewswire-FirstCall/ -- China GrenTech Corporation Limited (Nasdaq: GRRF, "the Company", or "GrenTech"), a leading China-based radio frequency ("RF") technology and product developer and a leading wireless coverage product and services provider, today announced that it will release unaudited financial results for the third quarter ended September 30, 2008 after the US market closes on Thursday, November 13, 2008.

The earnings release will be available on the investor relations page of its website at: http://www.grentech.com.cn/en/Earnings_Announcements.asp .

Following the earnings announcement, GrenTech senior management will host a conference call at 5:00 am (Pacific) / 8:00 am (Eastern) / 9:00 pm (Beijing/Hong Kong) on Friday, November 14, 2008 to discuss its 2008 third quarter financial results and recent business activity. To access the live teleconference, please dial 1 800 299 7635 (US), 800 96 3844 (Hong Kong) or 1 617 786 2901 (International), and enter the passcode "GRENTECHCALL." Please dial in approximately 10 minutes before the scheduled time of the call.

A replay of the conference call will be available through 11:00 pm (Eastern) on November 20, 2008 by calling 1 888 286 8010 (US) or 1 617 801 6888 (International) and entering the passcode 73141965.

A live webcast of the conference call and replay will also be available on the investor relations page of GrenTech's website at: http://www.grentech.com.cn/en/Earnings_Announcements.asp .

About China GrenTech

China GrenTech is a leading developer of radio frequency ("RF") technology and product developer and a leading wireless coverage product and services provider in China. The Company uses RF technology to develop and manufacture wireless coverage products, which enable telecommunication operators to expand the reach of their wireless communication networks both indoors and outdoors, including buildings, highways, railways, tunnels and remote regions. China GrenTech provides wireless coverage services, including the design, installation and warranty services for its coverage products.

Based on its in-house RF technology platform, the Company also develops and produces base station RF modules sold to base station manufacturers. China GrenTech is a qualified supplier of RF modules to several major base station manufacturers and the major supplier of RF modules for Huawei Technologies and ZTE Corporation. For more information, please visit http://www.grentech.com.cn/ .

For more information, please contact: Investor Contact: Kent Lo, IR Manager China GrenTech Corp Ltd. Tel: +86-755-2650-3007 Email: kentlo@grentech.com.cn Investor Relations (US): Delia Cannan Taylor Rafferty Tel: +1-212-889-4350 Email: GrenTech@Taylor-Rafferty.com Investor Relations (HK): Ruby Yim Taylor Rafferty Tel: +852-3196-3712 Email: GrenTech@Taylor-Rafferty.com Media Contact: Jason Marshall Taylor Rafferty Tel: +1-212-889-4350 Email: GrenTech@Taylor-Rafferty.com

China GrenTech Corporation Limited

CONTACT: Investor Contact, Kent Lo, IR Manager, China GrenTech Corp Ltd.,
+86-755-2650-3007, or kentlo@grentech.com.cn; Investor Relations (US), Delia
Cannan of Taylor Rafferty, +1-212-889-4350, or GrenTech@Taylor-Rafferty.com;
Investor Relations (HK), Ruby Yim of Taylor Rafferty, +852-3196-3712, or
GrenTech@Taylor-Rafferty.com; Media Contact, Jason Marshall of Taylor Rafferty,
+1-212-889-4350, or GrenTech@Taylor-Rafferty.com, all for China GrenTech
Corporation Limited

Web site: http://www.grentech.com.cn/

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