CACI Reports Solid Fiscal 2009 Third Quarter ResultsDiluted earnings per share grew 5.7 percent to $0.77; up 11.7 percent year-to-dateRevenue grew 6.3 percent to a record $674.0 million; up 13.4 percent year-to-dateOrganic revenue grew by 5.5 percent; up 10.3 percent last twelve monthsOperating cash flow grew 27.7 percent to $80.1 million; up 20.2 percent year-to-dateContract funding orders grew 5.2 percent to $743.3 million; up 19.5 percent year-to-dateFunded backlog grew 14 percent to $1.6 billionAnnual earnings guidance range narrowed and revised upwards

ARLINGTON, Va., April 29 /PRNewswire-FirstCall/ -- CACI International Inc , a leading professional services and information technology solutions provider to the federal government, announced results today for its third fiscal quarter and nine months ended March 31, 2009. CACI provides innovative solutions to meet America's needs in national defense, intelligence, homeland security, and the improvement of government services, and is a leading strategic consolidator in its market space.

Third Quarter Results

For the third quarter of Fiscal Year 2009 (FY09), we reported record revenue of $674.0 million, up 6.3 percent over third quarter of Fiscal Year 2008 (FY08) revenue of $634.2 million. The increase in revenue during the quarter was driven by organic growth of 5.5 percent. Organic growth for federal government revenue in the quarter was 6.7 percent. Operating income for the quarter was $45.0 million, up 3.5 percent compared with operating income of $43.5 million in the year earlier quarter. The operating margin was 6.7 percent compared with 6.9 percent in the third quarter of FY08. Income before taxes for the quarter was $39.7 million, 8.2 percent higher than what was reported in the third quarter of FY08. Our effective tax rate increased to 41.0 percent from 39.3 percent in the year earlier quarter. During the third quarter of FY09, our effective tax rate continued to be negatively impacted by non-deductible losses on assets invested in our deferred compensation plan. Net income for the third quarter was $23.4 million, up 5.1 percent compared with $22.3 million for the third quarter of FY08. Diluted earnings per share were $0.77, up 5.7 percent, compared with $0.73 per diluted share in the year earlier quarter. Cash generated by operations was $80.1 million, up 27.7 percent compared with $62.8 million in the year earlier quarter. Days sales outstanding at the end of the quarter were 61 compared with 67 days at the end of the third quarter of FY08. Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure, were $56.7 million in the quarter compared with EBITDA of $55.8 million in the third quarter of FY08.

Third Quarter Highlights

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

-- Contract funding orders totaling $743.3 million, a 5.2 percent increase over the third quarter of FY08. Funded backlog of approximately $1.6 billion, a 14 percent increase over the third quarter of FY08. -- Contract funding orders for the first nine months of FY09 totaled $2.2 billion, an increase of 19.5 percent over the $1.9 billion received in the first nine months of FY08. -- Contract awards with an estimated value of $768 million including: -- A prime position on the General Service Administration's (GSA) ten-year, multiple award Alliant program with an initial estimated value to CACI of $350 million. This follow-on award to the GSA's ANSWER and Millennia contracts positions us to increase our business throughout the federal government. -- Awards on the Strategic Services Sourcing (S3) contract vehicle with the Army totaling $240 million. Since March 2006, we have been awarded over $1.8 billion in task orders on this vehicle in support of the Army's C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) needs. -- A five-year, $50 million prime contract to continue our acquisition, financial, and program management assistance to the Defense Advanced Research Projects Agency (DARPA). CACI's work enables DARPA scientists and researchers to focus their critical skills on direct support for national defense. -- A five-year, $31 million prime contract under the Defense Information Systems Agency ENCORE II contract vehicle to continue management and technical support for the Acquisition Technology and Logistics component in the DoD's Office of the Undersecretary of Defense. -- Additional major awards not included in the $768 million total above: -- A prime position to support the five-year, multiple award United States Strategic Command Systems and Mission Support II (USAMS II) program, with an overall ceiling value of $900 million. This new award expands our program management and systems engineering and technical assistance (PM SETA) functional core competency in support of the program's cyber and intelligence, surveillance, and reconnaissance missions. -- A prime position on the U.S. Army's five-year, multiple award Biometrics Operations and Support Services -- Unrestricted (BOSS-U) contract with an estimated ceiling value of $500 million. This new award positions us to support the Army's Biometrics Task Force across a broad spectrum of functional areas. -- A prime position on the Army's ten-year, multiple award Program Executive Office for Simulation, Training and Instrumentation Omnibus Contract II (PEO STOC II) contract vehicle with an overall ceiling value of $17.5 billion. This new award positions us to significantly increase the size and scope of our modeling and simulation work throughout the Department of Defense (DoD) and will draw upon solutions developed through our C4ISR core competency. -- Contract awards for the first nine months of FY09 with an estimated total value of $2.6 billion, an increase of 16.2 percent over the first nine months of FY08. -- Intelligence Community revenue eight percent higher than the third quarter of FY08, representing 37 percent of our revenue for the quarter compared to 36 percent a year ago. Intelligence revenue for the first nine months of FY09 grew 26 percent, representing 38 percent of year-to-date revenue compared to 34 percent a year ago. -- CACI being named by Fortune Magazine as the Most Admired Company in Virginia and placed among Fortune's Top 5 Most Admired IT Companies worldwide. The Most Admired list is the definitive report card on corporate reputations. -- CACI Chief Technology Officer Deb Dunie being selected to chair the Technical Committee for the Armed Forces Communications and Electronics Association. Her responsibilities include developing more interactive discussion forums and advancing government and industry dialogue on issues of national importance. CEO Commentary

Commenting on the results, Paul Cofoni, CACI's President and CEO, said, "We are very pleased with our record third quarter results: revenue, net income, earnings per share, operating cash flow, and contract funding orders. Our U.S. Operations turned in another solid quarter, and our United Kingdom operations grew revenue and earnings sequentially. Our positive performance through the first three quarters of the fiscal year validates our fundamental strategy of focusing our services and solutions on the key areas of defense, intelligence, and homeland security. We expect the government to continue to rely on the valuable and proven contributions of contractors in these areas to counter the very real and dangerous external threats that still face our nation.

"Throughout our history, we have consistently positioned ourselves with high-value solutions in areas requiring the highest levels of thought leadership and IT and professional services capability. These are areas that demand the very best services and solutions. CACI's strategy is to provide customers with the best solutions while assuring American citizens of the most effective use of their hard-earned dollars. Our solutions are aligned with the administration's focus on cyber security, smart power, and IT modernization, where we expect our services to remain in high demand. The Intelligence Community is another well-funded and high-demand / high-value area that continues to provide opportunities for CACI. We are particularly proud of our ISR and document exploitation capabilities, which bring critical value to our clients.

"Over our 47-year history, we've grown with every administration and adjusted to market changes with new solutions that meet client requirements while enhancing shareholder value. Our forward indicators are strong, we are winning Tier 1 contracts at a record rate, and have a robust pipeline of opportunities. Our balance sheet, backlog, and cash flow are rock solid. CACI leads in our markets, brings value to our clients, delivers on our commitments, and builds long-term shareholder trust and value."

Nine Months FY09 Results

For the first nine months of FY09, we reported record revenue of $2.00 billion, up 13.4 percent over the first nine months of FY08 revenue of $1.77 billion. Operating income in the first nine months of FY09 was $131.5 million, up 12.9 percent, compared with $116.5 million reported in the first nine months of FY08. The operating margin was 6.6 percent for the first nine months of FY09, the same as in the year earlier period. Income before taxes for the first nine months of FY09 was $114.4 million, 17.0 percent higher than what was reported in the first nine months of FY08. The effective tax rate for the first nine months of FY09 was 41.9 percent versus 38.9 percent in the year earlier period. Net income for the first nine months of FY09 was $66.5 million, up 11.3 percent, compared with net income of $59.8 million for the first nine months of FY08. Diluted earnings per share were $2.18, up 11.7 percent, compared with $1.96 per diluted share in the year earlier period. Operating cash flow for the first nine months of FY09 was $94.5 million, up 20.2 percent, compared with $78.6 million for the similar period in FY08. EBITDA for the first nine months was $166.7 million, an increase of 9.8 percent over EBITDA of $151.8 million in the first nine months of FY08.

CACI Revises its FY09 Earnings Guidance Range Upwards

We are raising the lower end of the range of our Fiscal Year 2009 earnings guidance. The table below summarizes the guidance ranges for FY09:

(In millions, except for earnings per share) Fiscal Year 2009 Revenue $2,650 - $2,750 Net income $90.0 - $93.0 Diluted earnings per share $2.95 - $3.05 Diluted weighted average shares 30.5

We are raising the lower end of the ranges of our net income and diluted earnings per share guidance as a result of stronger third quarter sales for our United Kingdom subsidiary and an estimated lower full year tax rate of 42 percent. This guidance does not include any contributions from future acquisitions.

This guidance represents our views as of April 29, 2009. Investors are reminded that actual results may differ from these estimates for the reasons described in this release and in our filings with the Securities and Exchange Commission.

Conference Call Information

We have scheduled a conference call for 8:30 AM Eastern Time Thursday, April 30th, during which members of our senior management team will be making a brief presentation focusing on third quarter results and operating trends followed by a question-and-answer session. You can listen to the conference call and view the accompanying exhibits over the Internet by logging on to our homepage, http://www.caci.com/, at the scheduled time, or you may dial 1-877-741-4244 and enter the confirmation code 1040812. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern Time Thursday, April 30th, and can be accessed through our homepage (http://www.caci.com/) by clicking on the CACI Investor Info button.

About CACI

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

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

Corporate Communications and Media: Jody Brown, Executive Vice President, Public Relations (703) 841-7801, jbrown@caci.com Investor Relations: David Dragics, Senior Vice President, Investor Relations (866) 606-3471, ddragics@caci.com Selected Financial Data CACI International Inc Condensed Consolidated Statements of Operations (Unaudited) (Amounts in thousands, except per share amounts) Quarter Ended Nine Months Ended 3/31/2009 3/31/2008 % Change 3/31/2009 3/31/2008 % Change Revenue $673,994 $634,157 6.3% $2,001,261 $1,765,521 13.4% Costs of revenue Direct costs 461,757 424,946 8.7% 1,366,790 1,183,771 15.5% Indirect costs and selling expenses 155,445 153,406 1.3% 467,297 429,898 8.7% Depreciation and amortization 11,818 12,334 -4.2% 35,633 35,389 0.7% Total costs of revenue 629,020 590,686 6.5% 1,869,720 1,649,058 13.4% Operating income 44,974 43,471 3.5% 131,541 116,463 12.9% Interest expense and other, net 5,241 6,751 -22.4% 17,103 18,641 -8.3% Income before income taxes 39,733 36,720 8.2% 114,438 97,822 17.0% Income taxes 16,301 14,428 13.0% 47,923 38,048 26.0% Net income $23,432 $22,292 5.1% $66,515 $59,774 11.3% Basic earnings per share $0.78 $0.74 5.6% $2.22 $1.99 11.5% Diluted earnings per share $0.77 $0.73 5.7% $2.18 $1.96 11.7% Weighted average shares used in per share computations: Basic 29,939 30,076 29,979 30,034 Diluted 30,410 30,587 30,446 30,562 Statement of Operations Data (Unaudited) Quarter Ended Nine Months Ended 3/31/2009 3/31/2008 3/31/2009 3/31/2008 Operating income margin 6.7% 6.9% 6.6% 6.6% Tax rate 41.0% 39.3% 41.9% 38.9% Net income margin 3.5% 3.5% 3.3% 3.4% EBITDA* $56,684 $55,834 $166,687 $151,778 EBITDA Margin 8.4% 8.8% 8.3% 8.6% *See Reconciliation of Net Income and Earnings before Interest, Taxes, Depreciation and Amortization on page 9. Selected Financial Data (Continued) CACI International Inc Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands) 3/31/2009 6/30/2008 ASSETS: Current assets Cash and cash equivalents $174,307 $120,396 Accounts receivable, net 460,433 441,732 Prepaid expenses and other current assets 40,895 40,697 Total current assets 675,635 602,825 Goodwill and intangible assets, net 1,169,861 1,193,500 Property and equipment, net 28,249 25,361 Other long-term assets 62,498 80,967 Total assets $1,936,243 $1,902,653 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities Current portion of long-term debt $3,500 $3,549 Accounts payable 82,878 74,175 Accrued compensation and benefits 124,859 126,649 Other accrued expenses and current liabilities 76,634 85,897 Total current liabilities 287,871 290,270 Long-term debt, net of current portion 633,643 639,074 Other long-term liabilities 56,021 55,424 Total liabilities 977,535 984,768 Shareholders' equity 958,708 917,885 Total liabilities and shareholders' equity $1,936,243 $1,902,653 Selected Financial Data (Continued) CACI International Inc Condensed Consolidated Statements of Cash Flows (Unaudited) (Amounts in thousands) Nine Months Ended 3/31/2009 3/31/2008 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $66,515 $59,774 Reconciliation of net income to net cash provided by operating activities: Depreciation and amortization 35,633 35,389 Amortization of deferred financing costs 1,897 1,845 Stock-based compensation expense 13,084 13,684 Deferred income tax expense 12,239 3,657 Changes in operating assets and liabilities, net of effect of business acquisitions: Accounts receivable, net (31,045) (61,809) Prepaid expenses and other current assets 3,133 (1,328) Accounts payable and accrued expenses 4,554 14,043 Accrued compensation and benefits (6,208) 11,598 Income taxes receivable and payable (325) (1,056) Other liabilities (5,027) 2,758 Net cash provided by operating activities 94,450 78,555 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (9,080) (10,289) Purchases of businesses, net of cash acquired (8,787) (303,305) Other 502 161 Net cash used in investing activities (17,365) (313,433) CASH FLOWS FROM FINANCING ACTIVITIES: Net payments under credit facilities (3,672) (2,464) Proceeds from employee stock purchase plans 4,668 3,300 Proceeds from exercise of stock options 2,069 1,988 Purchases of common stock (22,798) (975) Other (1,123) (270) Net cash (used in) provided by financing activities (20,856) 1,579 Effect of exchange rate changes on cash and cash equivalents (2,318) (113) Net increase (decrease) in cash and cash equivalents 53,911 (233,412) Cash and cash equivalents, beginning of period 120,396 285,682 Cash and cash equivalents, end of period $174,307 $52,270 Selected Financial Data (Continued) Revenue by Customer Type (Unaudited) (dollars in Quarter Ended thousands) 3/31/2009 3/31/2008 $ Change % Change Department of Defense $514,713 76.4% $474,903 74.9% $39,810 8.4% Federal Civilian Agencies 133,568 19.8% 129,404 20.4% 4,164 3.2% Commercial 20,860 3.1% 25,550 4.0% (4,690) -18.4% State and Local Governments 4,853 0.7% 4,300 0.7% 553 12.9% Total $673,994 100.0% $634,157 100.0% $39,837 6.3% (dollars in Nine Months Ended thousands) 3/31/2009 3/31/2008 $ Change % Change Department of Defense $1,514,421 75.7% $1,311,052 74.3% $203,369 15.5% Federal Civilian Agencies 405,119 20.2% 363,711 20.6% 41,408 11.4% Commercial 66,375 3.3% 76,738 4.3% (10,363) -13.5% State and Local Governments 15,346 0.8% 14,020 0.8% 1,326 9.5% Total $2,001,261 100.0% $1,765,521 100.0% $235,740 13.4% Revenue by Contract Type (Unaudited) (dollars in Quarter Ended thousands) 3/31/2009 3/31/2008 $ Change % Change Time and materials $316,998 47.0% $314,201 49.5% $2,797 0.9% Cost reimbursable 221,792 32.9% 181,775 28.7% 40,017 22.0% Fixed price 135,204 20.1% 138,181 21.8% (2,977) -2.2% Total $673,994 100.0% $634,157 100.0% $39,837 6.3% (dollars in Nine Months Ended thousands) 3/31/2009 3/31/2008 $ Change % Change Time and materials $966,314 48.3% $904,973 51.3% $61,341 6.8% Cost reimbursable 629,028 31.4% 482,609 27.3% 146,419 30.3% Fixed price 405,919 20.3% 377,939 21.4% 27,980 7.4% Total $2,001,261 100.0% $1,765,521 100.0% $235,740 13.4% Revenue Received as a Prime versus Subcontractor (Unaudited) (dollars in Quarter Ended thousands) 3/31/2009 3/31/2008 $ Change % Change Prime $558,698 82.9% $516,273 81.4% $42,425 8.2% Subcontractor 115,296 17.1% 117,884 18.6% (2,588) -2.2% Total $673,994 100.0% $634,157 100.0% $39,837 6.3% (dollars in Nine Months Ended thousands) 3/31/2009 3/31/2008 $ Change % Change Prime $1,653,623 82.6% $1,446,711 81.9% $206,912 14.3% Subcontractor 347,638 17.4% 318,810 18.1% 28,828 9.0% Total $2,001,261 100.0% $1,765,521 100.0% $235,740 13.4% Selected Financial Data (Continued) Contract Funding Orders Received (Unaudited) Quarter Ended (dollars in thousands) 3/31/2009 3/31/2008 $ Change % Change Contract Funding Orders $743,329 $706,287 $37,042 5.2% Nine Months Ended (dollars in thousands) 3/31/2009 3/31/2008 $ Change % Change Contract Funding Orders $2,224,866 $1,861,575 $363,291 19.5% Reconciliation of Total Revenue Growth and Organic Revenue Growth (Unaudited) We are presenting organic revenue growth to reflect the effect of acquisitions on total revenue growth. Revenue generated from the date a business is acquired through the first anniversary of that date is considered acquired revenue growth. All remaining revenue growth is considered organic. We believe that this non-GAAP financial measure provides investors with useful information to evaluate the growth rate of our core business. This non-GAAP measure should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP. (dollars in Quarter Ended Twelve Months Ended thousands) 3/31/2009 3/31/2008 % Change 3/31/2009 3/31/2008 % Change Revenue, as reported $673,994 $634,157 6.3% $2,656,277 $2,285,906 16.2% Less: Acquired revenue 5,194 133,865 Organic revenue $668,800 $634,157 5.5% $2,522,412 $2,285,906 10.3% Reconciliation of Net Income and Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited) EBITDA, a measure used by management to evaluate operating performance, is defined by us as GAAP net income plus net interest expense, income taxes, and depreciation and amortization. We believe that this non-GAAP measure is a valuable indicator of our operating performance. EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies, but EBITDA as defined by us may not be computed in the same manner as similarly titled measures used by other companies. The EBITDA margin is EBITDA divided by revenue. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP. (dollars in Quarter Ended Nine Months Ended thousands) 3/31/2009 3/31/2008 % Change 3/31/2009 3/31/2008 % Change Net Income, as reported $23,432 $22,292 5.1% $66,515 $59,774 11.3% Plus: Income taxes 16,301 14,428 13.0% 47,923 38,048 26.0% Interest income and expense, net 5,133 6,780 -24.3% 16,616 18,567 -10.5% Depreciation and amortization 11,818 12,334 -4.2% 35,633 35,389 0.7% EBITDA $56,684 $55,834 1.5% $166,687 $151,778 9.8% (dollars in Quarter Ended Nine Months Ended thousands) 3/31/2009 3/31/2008 % Change 3/31/2009 3/31/2008 % Change Revenue, as reported $673,994 $634,157 6.3% $2,001,261 $1,765,521 13.4% EBITDA $56,684 $55,834 1.5% $166,687 $151,778 9.8% EBITDA margin 8.4% 8.8% 8.3% 8.6%

CACI International Inc

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

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

GSI Commerce Reports Fiscal 2009 First Quarter Operating Results

KING OF PRUSSIA, Pa., April 29 /PRNewswire-FirstCall/ -- GSI Commerce Inc. today announced its financial results for its fiscal 2009 first quarter ended April 4.

Fiscal 2009 First Quarter Compared to Fiscal 2008 First Quarter -- Net revenues increased slightly to $196.5 million from $195.5 million. -- Non-GAAP net revenues increased 14 percent to $106.3 million from $93.3 million. -- Loss from operations was $13.0 million compared to a loss from operations of $17.8 million. -- Non-GAAP income from operations was $9.3 million compared to $0.7 million. -- Net loss was $11.1 million or $0.23 per share compared to a net loss $10.8 million or $0.23 per share. -- Trailing 12 month free cash flow was $16.7 million compared to a negative $0.4 million.

The definitions of non-GAAP net revenues, non-GAAP income from operations, free cash flow, and a discussion of the importance of these non-GAAP financial metrics to GSI's business, can be found under "Non-GAAP Financial Measures" provided later in this news release.

"I'm very pleased with our first quarter performance," said Michael G. Rubin, chairman, president and CEO of GSI. "We delivered excellent results with net revenues, loss from operations and non-GAAP income from operations all exceeding the high-end of our guidance ranges. This is also the first time that we generated non-GAAP income from operations in excess of capital expenditures in a quarter other than a fourth quarter. We have produced a strong start to the year and believe we are well-positioned to continue delivering solid results."

Fiscal 2009 Second Quarter Guidance

The following forward-looking statements reflect GSI's expectations as of April 29, 2009. Given the potential changes in general economic conditions and consumer spending, the growth rate of e-commerce and various other risk factors discussed in our forward-looking statements disclosure and in our public reports, actual results may differ materially.

The company provides the following guidance for fiscal 2009 second quarter:

-- Net revenues are expected to be in a range of $177.0 million to $182.0 million. -- Loss from operations is expected to be in a range of $17.0 million to $19.0 million. -- Non-GAAP income from operations is expected to be in a range of $3.0 million to $5.0 million.

The following is a reconciliation of GAAP loss from operations to non-GAAP income from operations: add to projected GAAP loss from operations estimated depreciation, amortization of $15.9 million (inclusive of amortization from acquisition-related intangibles of $2.5 million), estimated stock-based compensation of $6.0 million and estimated acquisition-related integration, transaction and due diligence expenses of $0.1 million.

Conference Call Today

GSI has scheduled a conference call for 4:45 p.m. EDT today to discuss the company's 2009 fiscal first quarter operating results and its expectations for future performance.

Live Conference Access: -- Phone - Dial 1-888-680-0878, passcode 86167649 by 4:30 p.m. EDT on April 29. For quicker access to the audio conference call the day of the event, investors can pre-register for the conference call by going to: https://www.theconferencingservice.com/prereg/key.process?key=PMKH7XJK B -- Web - Go to http://www.gsicommerce.com/, and click on the webcast tab provided on the home page, or go to http://www.streetevents.com/, where the conference call will be broadcast live. Please allow at least 15 minutes to register, download and install any necessary audio software. Conference Replays: -- Web - Go to http://www.gsicommerce.com/, and click on the Webcast tab provided on the home page. Access will remain available through May 29. Non-GAAP Financial Measures

GSI's consolidated financial statements are prepared and presented in accordance with GAAP. To supplement our consolidated financial statements, in this release and on the conference call, we use the non-GAAP financial measures of non-GAAP net revenues, non-GAAP income from operations and free cash flow. We also discuss certain ratios that use those measures. The non-GAAP measures and ratios presented are not intended to be considered in isolation of, as a substitute for, or superior to our GAAP financial information. We have included reconciliations later in this release of the non-GAAP measures to the nearest GAAP measure.

We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate our performance. In our opinion, these non-GAAP measures provide meaningful supplemental information regarding our performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by institutional investors and the analyst community to help them analyze the health of our business. These measures may be different from non-GAAP measures used by other companies.

Non-GAAP net revenues. We define non-GAAP net revenues as net revenues minus cost of revenues from product sales and marketing expenses. Marketing expenses principally include client revenue share expenses, net advertising and promotional expenses, subsidized shipping and handling expenses, and catalog expenses. We consider non-GAAP net revenues to be a useful metric for management and investors because (1) it provides a metric for our investors to understand and analyze our company and (2) it provides investors with one of the primary metrics used by the company for evaluation and decision making purposes. We and many of our investors view us as a technology and business services company. Since most technology and business service companies generate their revenues from service fees and do not have product sales, we believe that by subtracting cost of revenues from product sales and marketing expenses from our net revenues from product sales, the company and investors will be better able to assess our revenues on a basis that more closely approximates the net revenues of other technology and business services companies. Further, management uses this metric for evaluating the performance of our business, making operating decisions and for budgeting purposes.

Non-GAAP income from operations. We define non-GAAP income from operations as income from operations excluding stock-based compensation, depreciation and amortization expenses and transaction, due diligence and integration expenses relating to acquisitions. We consider non-GAAP income from operations to be a useful metric for management and investors because it excludes certain non-cash and non-operating items. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when valuing equity awards under SFAS 123R, we believe that viewing income from operations excluding stock-based compensation expense allows investors to make meaningful comparisons between our operating performance and those of other businesses. Because we are growing our business and operate in an emerging and changing industry, we believe that our level of capital expenditures and consequently the level of depreciation and amortization expense relative to our revenues could be meaningfully greater today than it will be over time. As a result, we believe it is useful supplemental information to view income from operations excluding depreciation and amortization expense as it provides a potential indicator of the future operating margin potential of the business. We believe the exclusion of acquisition-related integration, transaction and due diligence expense permits evaluation and a comparison of results for on-going business operations, and it is on this basis that management internally assesses the company's performance.

Free cash flow. We define free cash flow as net cash provided by operating activities minus cash paid for fixed assets, including internal use software. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after the acquisition of property and equipment, including information technology infrastructure, can be used for strategic opportunities, including investing in the business, making strategic acquisitions and strengthening the balance sheet. Analysis of free cash flow also facilitates management's comparisons of our operating results to the operating results of comparable companies. A limitation of using free cash flow as a means for evaluating our performance is that free cash flow reflects changes in working capital which is impacted by short-term changes in cash flow and the seasonality of our business which may not be indicative of long-term performance. Another limitation of free cash flow is that it excludes fixed assets purchased and placed in service, but not paid for during the applicable period. Our management compensates for this limitation by providing supplemental information about capital expenditures accrued, but not paid for during the applicable periods on the face of the cash flow statement in our Forms 10-K and 10-Q.

About GSI Commerce

GSI Commerce(R) (http://www.gsicommerce.com/) is a leading provider of services that enable e-commerce, multichannel retailing and interactive marketing for large, business-to-consumer (b2c) enterprises in the U.S. and internationally. We deliver customized e-commerce solutions through an e-commerce platform, which is comprised of technology, fulfillment and customer care. We offer each of the platform's components on a modular basis, or as part of an integrated, end-to-end solution. We also offer a full suite of interactive marketing services through two divisions, gsi interactive(SM) and e-Dialog (http://www.e-dialog.com/).

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements made in this release, other than statements of historical fact, are forward-looking statements. The words "look forward to," "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "will," "would," "should," "could," "guidance," "potential," "opportunity," "continue," "project," "forecast," "confident," "prospects," "schedule," "designed," "future," "discussions," "if," "objective," and similar expressions typically are used to identify forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business of GSI Commerce. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements. Factors which may affect GSI Commerce's business, financial condition and operating results include the effects of changes in the economy, consumer spending, the financial markets and the industries in which GSI Commerce and its clients operate, changes affecting the Internet and e-commerce, the ability of GSI Commerce to develop and maintain relationships with strategic clients and suppliers and the timing of the establishment, extension or termination of its relationships with strategic clients, the ability of GSI Commerce to timely and successfully develop, maintain and protect its technology, confidential and proprietary information and product and service offerings and execute operationally, the ability of GSI Commerce to attract and retain qualified personnel, and the performance of acquired businesses. More information about potential factors that could affect GSI Commerce can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed by GSI Commerce with the SEC. GSI Commerce expressly disclaims any intent or obligation to update these forward-looking statements.

GSI COMMERCE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) January 3, April 4, 2009 (1) 2009 ---------- -------- ASSETS Current assets: Cash and cash equivalents $130,315 $48,105 Accounts receivable, less allowance for doubtful accounts of $2,747 and $1,727 78,544 61,712 Inventory 42,856 39,373 Deferred tax assets 18,125 17,742 Prepaid expenses and other current assets 11,229 11,840 ------ ------ Total current assets 281,069 178,772 Property and equipment, net 164,833 159,153 Goodwill 194,996 194,888 Intangible assets, net of accumulated amortization of $18,340 and $20,788 46,663 44,254 Long-term deferred tax assets 10,505 17,747 Other assets, net of accumulated amortization of $16,384 and $17,010 17,168 15,448 ------ ------ Total assets $715,234 $610,262 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $98,100 $47,664 Accrued expenses 116,747 68,993 Deferred revenue 20,397 17,375 Current portion - long-term debt 4,887 4,898 ----- ----- Total current liabilities 240,131 138,930 Convertible notes 161,951 164,497 Long-term debt 32,609 31,356 Deferred revenue and other long-term liabilities 6,838 7,645 ----- ----- Total liabilities 441,529 342,428 Commitments and contingencies Stockholders' equity: Preferred stock, $0.01 par value, 5,000,000 shares authorized; 0 shares issued and outstanding as of January 3, 2009 and April 4, 2009 - - Common stock, $0.01 par value, 90,000,000 shares authorized; 47,630,824 and 48,534,843 shares issued as of January 3, 2009 and April 4, 2009, respectively; 47,630,621 and 48,534,640 shares outstanding as of January 3, 2009 and April 4, 2009, respectively 476 485 Additional paid in capital 428,852 434,115 Accumulated other comprehensive loss (2,327) (2,389) Accumulated deficit (153,296) (164,377) -------- -------- Total stockholders' equity 273,705 267,834 ------- ------- Total liabilities and stockholders' equity $715,234 $610,262 ======== ======== (1) On January 4, 2009 the Company adopted Financial Accounting Standards Board Staff Position No. APB 14-1, "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)." The impact of this adoption has been retrospectively applied to prior period results. GSI COMMERCE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended -------------------- March 29, April 4, 2008 (1) 2009 ---------- --------- Revenues: Net revenues from product sales $123,120 $106,191 Service fee revenues 72,423 90,284 ------ ------ Net revenues 195,543 196,475 Costs and expenses: Cost of revenues from product sales 85,417 79,355 Marketing 16,875 10,861 Account management and operations, inclusive of $1,134 and $1,807 of stock-based compensation 59,111 57,292 Product development, inclusive of $426 and $1,126 of stock-based compensation 22,436 28,049 General and administrative, inclusive of $2,061 and $2,519 of stock-based compensation 15,724 18,549 Depreciation and amortization 13,809 15,401 ------ ------ Total costs and expenses 213,372 209,507 ------- ------- Loss from operations (17,829) (13,032) Other (income) expense: Interest expense 4,370 4,796 Interest income (1,039) (151) Other expense 145 229 --- --- Total other expense 3,476 4,874 ----- ----- Loss before income taxes (21,305) (17,906) Benefit for income taxes (10,457) (6,825) ------- ------ Net loss $(10,848) $(11,081) ======== ======== Basic and diluted loss per share $(0.23) $(0.23) ====== ====== Weighted average shares outstanding - basic and diluted 46,924 47,926 ====== ====== (1) On January 4, 2009 the Company adopted Financial Accounting Standards Board Staff Position No. APB 14-1, "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)." The impact of this adoption has been retrospectively applied to prior period results. GSI COMMERCE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended ------------------ March 29, April 4, 2008 (1) 2009 --------- -------- Cash Flows from Operating Activities: Net loss $(10,848) $(11,081) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 11,910 12,962 Amortization 1,899 2,439 Amortization of discount on convertible notes 2,308 2,546 Stock-based compensation 3,621 5,452 Foreign currency transaction losses - 238 Deferred income taxes (10,457) (6,777) Changes in operating assets and liabilities: Accounts receivable, net 18,750 16,802 Inventory 1,239 3,483 Prepaid expenses and other current assets 1,121 (549) Other assets, net 1,662 1,965 Accounts payable and accrued expenses (65,295) (97,854) Deferred revenue 3,640 (2,236) ----- ------ Net cash used in operating activities (40,450) (72,610) Cash Flows from Investing Activities: Payments for acquisitions of businesses, net of cash acquired (145,001) (750) Cash paid for property and equipment, including internal use software (17,482) (7,411) ------- ------ Net cash used in investing activities (162,483) (8,161) Cash Flows from Financing Activities: Borrowings on revolving credit loan 15,000 - Debt issuance costs paid (454) (38) Repayments of capital lease obligations (468) (1,195) Repayments of mortgage note (68) (47) Proceeds from exercise of common stock options 158 72 --- -- Net cash provided by (used in) financing activities 14,168 (1,208) Effect of exchange rate changes on cash and cash equivalents 4 (231) -- ---- Net decrease in cash and cash equivalents (188,761) (82,210) Cash and cash equivalents, beginning of period 231,511 130,315 ------- ------- Cash and cash equivalents, end of period $42,750 $48,105 ======= ======= (1) On January 4, 2009 the Company adopted Financial Accounting Standards Board Staff Position No. APB 14-1, "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)." The impact of this adoption has been retrospectively applied to prior period results. GSI COMMERCE, INC. AND SUBSIDIARIES NON-GAAP INCOME FROM OPERATIONS AND RECONCILIATION TO GAAP RESULTS (In thousands) (Unaudited) Three Months Ended ------------------------- March 29, April 4, 2008 2009 --------- --------- Reconciliation of GAAP loss from operations to non-GAAP income from operations: GAAP loss from operations $(17,829) $(13,032) Acquisition related integration, transaction and due diligence expenses 1,115 1,459 Stock-based compensation 3,621 5,452 Depreciation and amortization (1) 13,809 15,401 ------ ------ Non-GAAP income from operations $716 $9,280 ==== ====== (1) Includes amortization expense of acquisition related intangibles of $2,448 for the three-months ended April 4, 2009 and $1,885 for the three-months ended March 29, 2008. GSI COMMERCE, INC. AND SUBSIDIARIES NON-GAAP NET REVENUES AND RECONCILIATION TO GAAP RESULTS (In thousands) (Unaudited) Three Months Ended ------------------------- March 29, April 4, 2008 2009 --------- --------- Reconciliation of GAAP net revenues to non-GAAP net revenues: GAAP net revenues $195,543 $196,475 Cost of revenues from product sales (85,417) (79,355) Marketing expenses (16,875) (10,861) ------- ------- Non-GAAP net revenues $93,251 $106,259 ======= ======== GSI COMMERCE, INC. AND SUBSIDIARIES FREE CASH FLOW AND RECONCILIATION TO GAAP RESULTS (In thousands) (Unaudited) Twelve Months Ended --------------------- March 29, April 4, 2008 2009 -------- -------- Reconciliation of GAAP operating cash flow to free cash flow: GAAP cash flow from operating activities $61,757 $63,809 Cash paid for property and equipment, including internal use software (62,122) (47,109) ------- ------- Free cash flow $(365) $16,700 ===== ======= GSI COMMERCE, INC. AND SUBSIDIARIES RESULTS BY SEGMENT (In thousands) (Unaudited) Three Months Ended March 29, 2008 ---------------------------------------------------- Interactive E-Commerce Marketing Intersegment Services Services Eliminations Consolidated ---------- ----------- ------------- ------------ Net revenues $187,599 $12,085 $(4,141) $195,543 Costs and expenses before depreciation, amortization and stock-based compensation expense 188,891 11,192 (4,141) 195,942 ------- ------ ------ ------- Operating (loss) income before depreciation, amortization and stock-based compensation expense $(1,292) $893 $- $(399) ======= ==== == ===== Three Months Ended April 4, 2009 ---------------------------------------------------- Interactive E-Commerce Marketing Intersegment Services Services Eliminations Consolidated ---------- ----------- ------------ ------------ Net revenues $178,510 $25,122 $(7,157) $196,475 Costs and expenses before depreciation, amortization and stock-based compensation expense 174,841 20,970 (7,157) 188,654 ------- ------ ------ ------- Operating income before depreciation, amortization and stock-based compensation expense $3,669 $4,152 $- $7,821 ====== ====== == ====== Contact: Greg Ryan Dir. Corporate Communication GSI Commerce, Inc. e-mail: ryang@gsicommerce.com phone: 610-491-7294

GSI Commerce, Inc.

CONTACT: Greg Ryan, Dir. Corporate Communication of GSI Commerce, Inc.,
+1-610-491-7294, ryang@gsicommerce.com

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

Plexus Reports Fiscal Second Quarter Revenue of $389 MillionInitiates Q3 Revenue Guidance of $355 - $385 Million

NEENAH, Wis., April 29 /PRNewswire-FirstCall/ -- Plexus Corp. today announced:

Q2 Fiscal 2009 Results (quarter ended April 4, 2009): -- Revenue: $389 million, relative to guidance of $375 to $405 million. -- Diluted EPS: $0.13, including $0.05 per share of stock-based compensation expense. -- Restructuring and goodwill impairment charges of approximately $8.0 million. -- Non-GAAP diluted EPS: $0.28, including $0.05 per share of stock-based compensation expense, relative to guidance of non-GAAP diluted EPS of $0.17 to $0.24. Q3 Fiscal 2009 Guidance: -- Revenue: $355 to $385 million. -- Diluted EPS: $0.18 to $0.25, excluding any restructuring charges and including approximately $0.04 per share of stock-based compensation expense.

Dean Foate, President and CEO, commented, "We are pleased to have delivered revenues at the mid-point of our guidance range and non-GAAP diluted EPS above the high end of our guidance range. As expected, overall revenues declined 15% sequentially from the fiscal first quarter with all sectors declining sequentially. While our fiscal second quarter was as challenging as expected, we have cause for cautious optimism. During our monthly forecast cycle in April we experienced a modest uptick in our full-year fiscal 2009 forecast for the first time in eight months. This improvement was due in part to forecast stabilization with some of our legacy customer programs, as well as the revenue forecasted with our many recent program wins. While it would be a stretch to call the results of one forecast cycle a trend, we are encouraged that we may be experiencing the demand trough. Additionally, our business development teams continue to leverage the strength of our brand in the EMS market, turning in another exceptional quarter with 21 new program wins that we currently anticipate will generate approximately $220 million in annualized revenue when the programs are fully ramped in production over the coming quarters, subject to risks around the timing and ultimate realization of the forecasted revenues. We believe we are gaining market share."

Mr. Foate continued, "We are establishing fiscal third quarter 2009 revenue guidance of $355 to $385 million with diluted EPS of $0.18 to $0.25, excluding any restructuring charges and including approximately $0.04 per share of stock-based compensation expense. Our guidance suggests that we will likely see another quarter with a sequential decline in revenue, although we currently expect the percentage decline to be moderate when compared to the decline in the fiscal second quarter. Despite this relative optimism, the fiscal third quarter could still be quite challenging and we are not immune to the difficulties our customers may experience in their end markets as well as the overall economic conditions."

Ginger Jones, Vice President and CFO, commented, "Our diluted EPS was impacted by four significant items. As previously announced, we recognized approximately $8.0 million of pre-tax restructuring and non-cash goodwill impairment charges resulting in a negative $0.18 EPS impact. Offsetting these charges were three positive impacts to diluted EPS. First, we recognized a $1.4 million benefit from a discrete tax adjustment during the quarter delivering a $0.03 benefit. Second, as a consequence of aggressive cost reductions, our selling & administrative ("S&A") expenses were $2.0 million lower than earlier expectations, delivering a $0.05 benefit. Third, our tax rate for fiscal 2009 is now estimated to be 7%, before the discrete tax adjustment, due to lower forecasted earnings in higher tax jurisdictions. This is lower than the 10% tax rate used when we established our guidance for this quarter; consequently, diluted EPS for the quarter reflects a $0.02 benefit. The total of these three positive items reflects a net increase of $0.10 per share. As compared to our fiscal second quarter non-GAAP diluted EPS guidance, excluding the $0.15 associated with the restructuring and non-cash goodwill impairment charges as well as the discrete tax adjustment, we achieved non-GAAP diluted EPS of $0.28, which is above the high end of our guidance range."

Ms. Jones continued, "We have moved aggressively to remove costs from the business over the quarter. We ceased operations as planned at our Ayer, Massachusetts facility in March 2009. We also reduced our workforce in our North American manufacturing operations, which includes our site in Juarez, Mexico, totaling approximately 17 percent of North American operations headcount. Turning to S&A expense, we have completed reductions in workforce totaling approximately 10 percent of that headcount."

Ms. Jones concluded, "Looking forward to the fiscal third quarter, we do not currently anticipate any further significant restructuring. We have identified other cost-cutting measures that could be implemented quickly if forecasted revenues decline further or market conditions worsen. We feel we have struck the proper balance of cost management and modest investments to support our many new program wins as well as our long-term growth strategy."

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

MARKET SECTOR BREAKOUT

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

Market Sector Q2 - F09 Q1 - F09 Wireline/Networking $176 M 45% $200 M 44% Wireless Infrastructure $35 M 9% $48 M 10% Medical $93 M 24% $109 M 24% Industrial/Commercial $48 M 12% $57 M 13% Defense/Security/Aerospace* $37 M 10% $42 M 9% Total Revenue $389 M $456 M * The Defense/Security/Aerospace sector includes revenue from an un-named defense program of $12 million in Q1 F09 and $10 million in Q2 F09. FISCAL Q2 SUPPLEMENTAL INFORMATION -- ROIC for the second fiscal quarter was 13.8%. The Company defines ROIC as tax-effected annualized operating income divided by average capital employed over a rolling three-quarter period. Capital employed is defined as equity plus debt, less cash and cash equivalents and short-term investments. In periods including restructuring charges or non-cash goodwill impairment charges, such as the fiscal second quarter of 2009, we compute adjusted ROIC excluding these costs to better compare ongoing operations. -- Cash flow provided by operations was approximately $33.3 million for the quarter. Capital expenditures for the quarter were $6.8 million. Free cash flow was approximately $26.5 million for the quarter. The Company defines free cash flow as cash flow provided for (or used by) operations less capital expenditures. -- Top 10 customers comprised 58% of revenue during the quarter, down 3 percentage points from the previous quarter. -- Juniper Networks, Inc., with 23% of revenue, was the only customer representing 10% or more of revenue for the quarter. -- Cash Conversion Cycle: Cash Conversion Cycle Q2 - F09 Q1 - F09 Days in Accounts Receivable 47 Days 45 Days Days in Inventory 87 Days 77 Days Days in Accounts Payable (56) Days (54) Days Annualized Cash Cycle 78 Days 68 Days Conference Call/Webcast and Replay Information: What: Plexus Corp.'s Fiscal Q2 Earnings Conference Call When: Thursday, April 30th at 8:30 a.m. Eastern Time Where: 888-693-3477 or 973-582-2710 with conference ID: 93143957 http://www.videonewswire.com/PLXS/043009 (requires Windows Media Player) Replay: The call will be archived until May 7, 2009 at midnight Eastern Time http://www.videonewswire.com/PLXS/043009 or via telephone replay at 800-642-1687 or 706-645-9291 PIN: 93143957 About Plexus Corp. - The Product Realization Company

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

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

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

Safe Harbor and Fair Disclosure Statement

The statements contained in this release which are guidance or which are not historical facts (such as statements in the future tense and statements including "believe," "expect," "intend," "plan," "anticipate," "goal," "target" and similar terms and concepts), including all discussions of periods which are not yet completed, are forward-looking statements that involve risks and uncertainties. These factors include the risks that new program wins or customer forecasts may not result in the expected revenues and profitability or result in long-term customer arrangements, and that the restructuring charges may be insufficient, depending upon future developments. In addition, other risks and uncertainties affecting our business and our ability to grow and prosper in the future include, but are not limited to: the economic performance of the electronics, technology and defense industries; the risk of customer delays, changes or cancellations in both ongoing and new programs; the poor visibility of future orders, particularly in view of current economic conditions; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; our ability to secure new customers and maintain our current customer base and deliver product on a timely basis; the risks relative to new customers, including a new confidential customer in the Industrial/Commercial sector, which risks include customer delays, start-up costs, our potential inability to execute and lack of a track record of order volume and timing; the risks of concentration of work for certain customers; the weakness of the global economy and the continuing instability of the global financial markets and banking system, including the potential inability on our part or that of our customers or suppliers to access cash investments and credit facilities; material cost fluctuations and the adequate availability of components and related parts for production; the effect of changes in average selling prices; the effect of start-up costs of new programs and facilities, including our recent and planned expansions, such as our new facility in Oradea, Romania; the adequacy of restructuring and similar charges as compared to actual expenses, including the recently completed closure of our Ayer, Massachusetts facility and workforce reductions at our Juarez, Mexico facility and other North American facilities; the degree of success and the costs of efforts to improve the financial performance of our Mexican operations; possible unexpected costs and operating disruption in transitioning programs; the potential effect of world events (such as changes in oil prices, terrorism and war in the Middle East); the impact of increased competition; and other risks detailed in the Company's Securities and Exchange Commission filings (particularly in Part II, Item 1A of our quarterly report on Form 10-Q for the quarter ended January 3, 2009).

(financial tables follow) PLEXUS CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended ------------------ ---------------- April 4, March 29, April 4, March 29, 2009 2008 2009 2008 ---- ---- ---- ---- Net sales $388,895 $451,049 $845,004 $909,300 Cost of sales 353,097 399,497 762,656 802,194 ------- ------- ------- ------- Gross profit 35,798 51,552 82,348 107,106 Operating expenses: Selling and administrative expenses 22,344 23,989 47,613 47,615 Goodwill impairment costs 5,748 - 5,748 - Restructuring costs 2,273 - 2,823 - ----- ----- ----- ----- 30,365 23,989 56,184 47,615 ------ ------ ------ ------ Operating income 5,433 27,563 26,164 59,491 Other income (expense): Interest expense (2,733) (723) (5,663) (1,458) Interest income 472 1,991 1,403 4,538 Miscellaneous income (expense) 144 (362) 342 (827) --- ----- --- ----- Income before income taxes 3,316 28,469 22,246 61,744 Income tax (benefit) expense (1,712) 6,359 180 12,349 ------- ----- --- ------ Net income $5,028 $22,110 $22,066 $49,395 ====== ======= ======= ======= Earnings per share: Basic $0.13 $0.48 $0.56 $1.07 ===== ===== ===== ===== Diluted $0.13 $0.48 $0.56 $1.06 ===== ===== ===== ===== Weighted average shares outstanding: Basic 39,366 45,611 39,351 46,030 ====== ====== ====== ====== Diluted 39,463 46,030 39,464 46,546 ====== ====== ====== ====== PLEXUS CORP. NON-GAAP SUPPLEMENTAL INFORMATION (in thousands, except per share data) (unaudited) Statements of Operation Three Months Ended Six Months Ended ------------------ ---------------- April 4, March 29, April 4, March 29, 2009 2008 2009 2008 ---- ---- ---- ---- Net income - GAAP $5,028 $22,110 $22,066 $49,395 Add: Income tax (benefit) expense (1,712) 6,359 180 12,349 ------- ----- --- ------ Income before income taxes - GAAP 3,316 28,469 22,246 61,744 Add: Goodwill impairment costs 5,748 - 5,748 - Restructuring costs* 2,273 - 2,823 - ----- ----- ----- ----- Income before income taxes and excluding restructuring and impairment costs - Non-GAAP 11,337 28,469 30,817 61,744 Income tax expense - Non-GAAP** 468 6,359 2,415 12,349 --- ----- ----- ------ Net income - Non-GAAP $10,869 $22,110 $28,402 $49,395 ======= ======= ======= ======= Earnings per share - Non-GAAP: Basic $0.28 $0.48 $0.72 $1.07 ===== ===== ===== ===== Diluted $0.28 $0.48 $0.72 $1.06 ===== ===== ===== ===== Weighted average shares outstanding: Basic 39,366 45,611 39,351 46,030 ====== ====== ====== ====== Diluted 39,463 46,030 39,464 46,546 ====== ====== ====== ====== * Summary of restructuring costs Restructuring costs: Severance costs $1,398 $- 419 $1,948 $- Other exit costs 875 - 875 - --- - --- - Total restructuring costs $2,273 $- $2,823 $- ====== ====== ====== ====== ** Impact to provision related to finalization of audit and change in laws Impact to provision related to the finalization of federal and state income tax audits and changes in state income tax laws $ 1,377 $ - $1,377 $ - PLEXUS CORP. NON-GAAP SUPPLEMENTAL INFORMATION (in thousands, except per share data) (unaudited) Operating Margin Three Months Six Months Calculation Ended Operating Ended Operating April 4, 2009 Margin % April 4, 2009 Margin % ----------- ---------- ------------- --------- Operating income $5,433 1.4% $26,164 3.1% Goodwill impairment 5,748 5,748 Restructuring costs 2,273 2,823 ---- ----- Operating income excluding restructuring costs $13,454 3.5% $34,735 4.1% ======= ======= ROIC Calculation Six Months Ended April 4, 2009 ------------- Operating income $26,164 Add: Unusual (restructuring and impairment) charges 8,571 ----- Operating income (excluding unusual charges) 34,735 x 2 ---- Annualized operating income 69,470 Tax rate (excluding x 7% unusual charges) -------- Tax impact - 4,863 ---- Operating income (tax effected) $64,607 ======== Average capital employed $466,690 ROIC 13.8% ===== Average Apr 4, Jan 3, Sept 27, Capital 2008 2009 2008 Employed ------- -------- ------- -------- Equity $494,046 $485,716 $473,945 Plus: Debt - current 16,921 17,014 16,694 Debt - non-current 141,376 145,517 154,532 Less: Cash and cash Equivalents (201,330) (178,391) (165,970) Short-term investments - - - $451,013 $469,856 $479,201 $466,690 ======== ======== ======== ======== PLEXUS CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) April 4, September 27, 2009 2008 ---- ---- ASSETS Current assets: Cash and cash equivalents $201,330 $165,970 Accounts receivable 200,665 253,496 Inventories 336,243 340,244 Deferred income taxes 14,973 15,517 Prepaid expenses and other 13,517 11,742 ------ ------ Total current assets 766,728 786,969 Property, plant and equipment, net 192,788 179,123 Goodwill, net - 7,275 Deferred income taxes 9,947 2,620 Other 15,227 16,243 ------ ------ Total assets $984,690 $992,230 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt and capital lease obligations $16,921 $16,694 Accounts payable 218,064 231,638 Customer deposits 31,600 26,863 Accrued liabilities: Salaries and wages 28,058 41,086 Other 35,422 31,611 ------ ------ Total current liabilities 330,065 347,892 Long-term debt and capital lease obligations, net of current portion 141,376 154,532 Other liabilities 19,203 15,861 Shareholders' equity: Common stock, $.01 par value, 200,000 shares authorized, 46,819 and 46,772 shares issued, respectively, and 39,373 and 39,326 shares outstanding, respectively 468 468 Additional paid-in-capital 359,163 353,105 Common stock held in treasury, at cost, 7,446 shares for both periods (200,110) (200,110) Retained earnings 331,774 309,708 Accumulated other comprehensive income 2,751 10,774 ----- ------ Total shareholders' equity 494,046 473,945 ------- ------- Total liabilities and shareholders' equity $984,690 $992,230 ======== ========

Plexus Corp.

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

Web Site: http://www.plexus.com/
http://http//www.videonewswire.com/PLXS/043009

LSI Reports First Quarter 2009 Results

MILPITAS, Calif., April 29 /PRNewswire-FirstCall/ -- LSI Corporation today reported results for its first quarter ended April 5, 2009.

First Quarter News Release Summary -- First quarter 2009 revenues of $482 million -- First quarter 2009 GAAP* net loss of ($0.16) per share -- First quarter 2009 non-GAAP** net loss of ($0.03) per share -- Cash and short-term investments of $1.1 billion Second Quarter 2009 Business Outlook -- Projected revenues of $470 million to $530 million -- GAAP* net loss in the range of ($0.09) to ($0.19) per share -- Non-GAAP** net income (loss) in the range of $0.01 to ($0.06) per share * Generally Accepted Accounting Principles. ** Excludes goodwill and other intangible asset impairment charges, stock- based compensation, amortization of acquisition-related intangibles, restructuring of operations and other items, net, loss on write-down of debt/equity securities, gain on repurchase of convertible subordinated notes and acquired in-process research and development. It also excludes the income tax effect associated with the above mentioned items.

First quarter 2009 revenues were $482 million, a 27% decrease year-over-year compared to $661 million reported in the first quarter of 2008, and down 21% sequentially compared to $610 million reported in the fourth quarter of 2008.

First quarter 2009 GAAP* net loss was $104 million or 16 cents per share, compared to first quarter 2008 GAAP net loss of $14 million or 2 cents per share. First quarter 2009 GAAP results compare to fourth quarter 2008 GAAP net loss of $606 million or 94 cents per share. First quarter 2009 GAAP net loss included a net charge of $86 million from special items, consisting primarily of $42.7 million of amortization of acquisition-related items, $25.2 million in net restructuring and other items and $18 million of stock-based compensation expense.

First quarter 2009 non-GAAP** net loss was $18 million or 3 cents per share, compared to first quarter 2008 non-GAAP net income of $64 million or 10 cents per diluted share. Fourth quarter 2008 non-GAAP net income was $41 million or 6 cents per diluted share.

Cash and short-term investments totaled approximately $1.1 billion at quarter end.

"Despite continued macroeconomic uncertainty, our first quarter revenues were above the midpoint of our guidance range with our storage semiconductor and networking businesses demonstrating strength late in the quarter," said Abhi Talwalkar, LSI president and chief executive officer. "We have also significantly lowered our operating expenses while continuing to invest in key opportunities which position us to grow at above-market rates coming out of the downturn."

Bryon Look, LSI CFO and chief administrative officer, said, "Through a combination of effective cost controls and streamlining actions, operating expenses for the quarter came in below our expected range. Inventory levels were also sequentially down and sharply lower on a year-over-year basis, contributing to our continued balance sheet strength."

LSI Second Quarter 2009 Business Outlook GAAP* Special Items Non-GAAP** Revenue $470 million to $470 million to $530 million $530 million Gross Margin 33 - 37% $33 to $40 41 - 43% million Operating Expenses $245 million to $32 to $45 $213 million $268 million million to $223 million Net Other Income ($2) million ($2) million Tax Approximately Approximately $6 million $6 million Net (Loss)/ Income Per Share ($0.19) to ($0.10) to ($0.06) to ($0.09) ($0.13) $0.01 Diluted Share Count 650 million 650 million

Capital spending is projected to be around $15 million in the second quarter and approximately $50 million in total for 2009.

Depreciation and software amortization is projected to be around $20 million in the second quarter and approximately $90 million in total for 2009.

LSI Conference Call Information

LSI will hold a conference call today at 2 p.m. PDT to discuss first quarter financial results and the second quarter 2009 business outlook. Internet users can access the conference call at http://www.lsi.com/webcast. Subsequent to the conference call, a replay will be available at the same web address.

Forward Looking Statements: This news release contains forward-looking statements that are based on the current opinions and estimates of management. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause LSI's actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: our reliance on major customers and suppliers; our ability to keep up with rapid technological change; our ability to compete successfully in competitive markets; our ability to successfully transition the operations of Agere Systems to our enterprise resource planning system; fluctuations in the timing and volumes of customer demand; the unavailability of appropriate levels of manufacturing capacity; and general industry and market conditions. For additional information, see the documents filed by LSI with the Securities and Exchange Commission, and specifically the risk factors set forth in the company's most recent reports on Form 10-K and 10-Q. LSI disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

About LSI

LSI Corporation is a leading provider of innovative silicon, systems and software technologies that enable products which seamlessly bring people, information and digital content together. The company offers a broad portfolio of capabilities and services including custom and standard product ICs, adapters, systems and software that are trusted by the world's best known brands to power leading solutions in the Storage and Networking markets. More information is available at http://www.lsi.com/.

Editor's Notes: 1. All LSI news releases (financial, acquisitions, manufacturing, products, technology, etc.) are issued exclusively by PR Newswire and are immediately thereafter posted on the company's external website, http://www.lsi.com/. 2. LSI and the LSI logo design are trademarks or registered trademarks of LSI Corporation. 3. All other brand or product names may be trademarks or registered trademarks of their respective companies. LSI CORPORATION Condensed Consolidated Balance Sheets (In millions) (Unaudited) April 5, December 31, March 30, Assets 2009 2008 2008 ------ ---- ---- ---- Current assets: Cash and short-term investments $1,073.8 $1,119.1 $1,236.8 Accounts receivable, net 273.3 304.0 332.1 Inventories 201.2 220.5 258.6 Prepaid expenses and other current assets 136.7 155.9 158.6 ----- ----- ----- Total current assets 1,685.0 1,799.5 1,986.1 Property and equipment, net 226.6 236.0 235.2 Goodwill and other intangible assets, net 1,022.9 1,065.6 1,665.9 Other assets 243.5 243.1 252.5 ----- ----- ----- Total assets $3,178.0 $3,344.2 $4,139.7 -------- -------- -------- Liabilities and Stockholders' Equity ------------------------------------ Current liabilities: Current portion of long-term debt $244.6 $245.1 $- Other current liabilities 490.0 552.4 729.0 ----- ----- ----- Total current liabilities 734.6 797.5 729.0 Long-term debt 350.0 350.0 717.2 Pension, tax and other liabilities 750.8 755.8 407.0 ----- ----- ----- Total liabilities 1,835.4 1,903.3 1,853.2 ------- ------- ------- Minority interest in subsidiary - - 0.3 --- --- --- Stockholders' equity: Common stock and additional paid-in capital 6,088.4 6,065.3 5,959.2 Accumulated deficit (4,464.3) (4,360.8) (3,752.1) Accumulated other comprehensive income/(loss) (281.5) (263.6) 79.1 ------ ------ ---- Total stockholders' equity 1,342.6 1,440.9 2,286.2 ------- ------- ------- Total liabilities and stockholders' equity $3,178.0 $3,344.2 $4,139.7 -------- -------- -------- LSI CORPORATION Consolidated Statements of Operations (GAAP) (In thousands, except per share amounts) (Unaudited) Three Months Ended ------------------ April 5, December 31, March 30, 2009 2008 2008 ---- ---- ---- Revenues $482,279 $609,959 $660,747 Cost of revenues 276,584 334,398 356,878 Amortization of acquisition related intangibles 33,610 46,074 42,255 Stock-based compensation expense 2,013 2,384 2,061 ----- ----- ----- Total cost of revenues 312,207 382,856 401,194 ------- ------- ------- Gross profit 170,072 227,103 259,553 ------- ------- ------- Research and development 147,422 155,899 161,894 Stock-based compensation expense 7,862 7,229 7,823 ----- ----- ----- Total research and development 155,284 163,128 169,717 ------- ------- ------- Selling, general and administrative 66,519 76,211 77,708 Amortization of acquisition related intangibles 9,123 15,019 13,434 Stock-based compensation expense 8,115 8,378 7,911 ----- ----- ----- Total selling, general and administrative 83,757 99,608 99,053 ------ ------ ------ Restructuring of operations and other items, net 25,205 16,848 4,564 Goodwill and intangible asset impairment charges - 541,586 - --- ------- --- Loss from operations (94,174) (594,067) (13,781) Interest expense (7,236) (8,013) (8,978) Interest income and other, net 5,863 5,231 14,631 ----- ----- ------ Loss before income taxes (95,547) (596,849) (8,128) Provision for income taxes 8,000 9,500 5,500 ----- ----- ----- Net loss $(103,547) $(606,349) $(13,628) --------- --------- -------- Net loss per share: Basic $(0.16) $(0.94) $(0.02) ------ ------ ------ Diluted $(0.16) $(0.94) $(0.02) ------ ------ ------ Shares used in computing per share amounts: Basic 648,459 646,315 661,984 ------- ------- ------- Diluted 648,459 646,315 661,984 ------- ------- ------- A reconciliation of net loss on the GAAP basis to non-GAAP net income or loss is included below. Three Months Ended ------------------ Reconciliation of GAAP net loss April 5, December 31, March 30, to non-GAAP net (loss)/income: 2009 2008 2008 ------------------------------------ ---- ---- ---- GAAP net loss $(103,547) $(606,349) $(13,628) --------- --------- -------- Special items: a) Stock-based compensation expense - cost of revenues 2,013 2,384 2,061 b) Stock-based compensation expense - R&D 7,862 7,229 7,823 c) Stock-based compensation expense - SG&A 8,115 8,378 7,911 d) Amortization of acquisition related intangibles - cost of revenues 33,610 46,074 42,255 e) Amortization of acquisition related intangibles - SG&A 9,123 15,019 13,434 f) Restructuring of operations and other items, net 25,205 16,848 4,564 g) Goodwill and intangible asset impairment charges - 541,586 - h) Write-down of debt and equity securities - 10,773 - i) Gain on repurchase of convertible subordinated notes - (3,178) - j) Income tax effect of above items - 2,529 (94) --- ----- --- Total special items 85,928 647,642 77,954 ------ ------- ------ Non-GAAP net income/(loss) $(17,619) $41,293 $64,326 -------- ------- ------- Non-GAAP net income/(loss) per share: Basic $(0.03) $0.06 $0.10 ------ ----- ----- Diluted $(0.03) $0.06 $0.10 ------ ----- ----- Shares used in computing non- GAAP per share amounts: Basic 648,459 646,315 661,984 ------- ------- ------- Diluted 648,459 646,512 662,485 ------- ------- ------- Three Months Ended ------------------ Reconciliation of GAAP to non-GAAP shares used in the calculation April 5, December 31, March 30, of diluted per share amounts: 2009 2008 2008 --------------------------------- ---- ---- ---- Diluted shares used in per- share computation - GAAP 648,459 646,315 661,984 Dilutive stock awards - 197 501 ------- ------- ------- Diluted shares used in per-share computation - non-GAAP 648,459 646,512 662,485 ------- ------- ------- LSI CORPORATION Consolidated Statement of Cash Flows (In thousands) (Unaudited) Three Months Ended ------------------ April 5, December 31, March 30, 2009 2008 2008 ---- ---- ---- Operating activities: Net loss $(103,547) $(606,349) $(13,628) Adjustments: Depreciation and amortization * 65,079 84,278 78,328 Stock-based compensation expense 17,990 17,991 17,795 Non-cash restructuring and other items (1) (1,052) (3,291) Goodwill and intangible asset impairment charges - 541,586 - Gain on repurchase of convertible subordinated notes - (3,178) - Write-down of debt and equity securities - 10,773 - Loss/(gain) on sale of property and equipment, including assets held-for- sale 100 (137) (12) Non-cash foreign exchange (gain)/loss (12,384) 18,481 12,918 Changes in deferred tax assets and liabilities 73 5,630 2,115 Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations: Accounts receivable, net 30,690 97,149 74,272 Inventories 19,340 (10,577) (17,719) Prepaid expenses and other assets 32,443 42,832 (4,317) Accounts payable (63,535) (37,806) (39,432) Accrued and other liabilities 3,905 (61,434) (10,828) ----- ------- ------- Net cash (used in)/provided by operating activities (9,847) 98,187 96,201 ------ ------ ------ Investing activities: Purchases of debt securities available-for- sale (10) (31,947) (44,151) Proceeds from maturities and sales of debt securities available-for- sale 35,882 108,438 50,904 Purchases of equity securities (5,000) - (3,500) Purchases of property, equipment and software (25,463) (39,584) (35,230) Proceeds from sale of property and equipment 7 2,274 6,333 Proceeds from maturity of notes receivable associated with sale of semiconductor operations in Thailand - 20,000 - Proceeds received from the resolution of a pre- acquisition income tax contingency - - 4,821 --- --- ----- Net cash provided by/(used in) investing activities 5,416 59,181 (20,823) ----- ------ ------- Financing activities: Repurchase of convertible subordinated notes - (116,636) - Issuance of common stock 1 6,558 346 Purchase of minority interest in subsidiary - (70) - Purchase of common stock under repurchase programs - - (229,231) --- --- -------- Net cash provided by/(used in) financing activities 1 (110,148) (228,885) --- -------- -------- ------ ------ ----- Effect of exchange rate changes on cash and cash equivalents (2,366) (2,829) 1,816 ------ ------ ----- (Decrease)/increase in cash and cash equivalents (6,796) 44,391 (151,691) Cash and cash equivalents at beginning of period 829,301 784,910 1,021,569 ------- ------- --------- Cash and cash equivalents at end of period $822,505 $829,301 $869,878 ======== ======== ======== * Depreciation of fixed assets and amortization of intangible assets, software, capitalized intellectual property, premiums on short-term investments, debt issuance costs, and accrued debt premium. LSI CORPORATION Selected Financial Information (GAAP) (In millions) (Unaudited) Three Months Ended ------------------ April 5, December 31, March 30, 2009 2008 2008 ---- ---- ---- Semiconductor revenues $325.0 $373.8 $458.8 Storage Systems revenues $157.3 $236.2 $201.9 Total revenues $482.3 $610.0 $660.7 Percentage change in revenues-qtr./ qtr. ( a ) -20.9% -14.6% -10.8% Percentage change in revenues-yr./ yr. ( b ) -27.0% -17.7% 42.0% Days sales outstanding 51 45 45 Days of inventory 58 52 58 Current ratio 2.3 2.3 2.7 Quick ratio 1.8 1.8 2.2 Gross margin as a percentage of revenues 35.3% 37.2% 39.3% R&D as a percentage of revenues 32.2% 26.7% 25.7% SG&A as a percentage of revenues 17.4% 16.3% 15.0% Employees ( c ) 5,310 5,488 5,351 Revenues per employee (in thousands) ( d ) $363.3 $444.6 $493.9 Selected Cash Flow Information: ------------------------------- Purchases of property and equipment ( e ) $10.2 $17.1 $21.1 Depreciation and amortization ( f ) $22.5 $23.1 $21.9 ( a ) Represents sequential quarterly change in revenues. ( b ) Represents change in revenues in the quarter presented as compared to the same quarter of the previous year. ( c ) Actual number of employees at the end of each period presented. ( d ) Revenues per employee is calculated by annualizing revenues for each quarter presented and dividing it by the number of employees. ( e ) Excludes purchases of software. ( f ) Represents depreciation of fixed assets and amortization of software.

LSI Corporation

CONTACT: Investor Relations, Sujal Shah, +1-610-712-5471,
sujal.shah@lsi.com, or Media Relations, Mitch Seigle, +1-408-954-3225,
mitch.seigle@lsi.com, both of LSI

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

Varian Medical Systems Reports Results for Second Quarter of Fiscal Year 2009

PALO ALTO, Calif., April 29 /PRNewswire-FirstCall/ -- Varian Medical Systems today reported net earnings from continuing operations of $0.64 per diluted share in the second quarter of fiscal year 2009 versus net earnings from continuing operations of $0.57 per diluted share in the year-ago quarter. Including the discontinued ACCEL research instruments operation, net earnings per diluted share in the quarter were $0.54.

Compared to continuing operations in the year-ago quarter, second quarter revenues rose 7 percent to $554 million, net orders rose 2 percent to $524 million, and the backlog rose 12 percent to $1.9 billion.

"Net orders grew in our Oncology Systems and Security and Inspection Products businesses but fell in our X-Ray Products business," said Tim Guertin, president and CEO of Varian Medical Systems. "Revenues from continuing operations increased in all three businesses, and our gross margin improved by nearly three percentage points, contributing to higher earnings versus the year-ago quarter. However, we began to feel the effects of the global recession during the quarter which resulted in modest net orders growth. Currency fluctuations negatively impacted orders and revenue growth in the quarter."

The company ended the second quarter with $375 million in cash and cash equivalents and $43 million of debt. Days sales outstanding was 87 for the quarter, an improvement of three days versus the year-ago period and up four days from the preceding quarter. The company did not repurchase shares of its stock during the period.

Oncology Systems

Oncology Systems' revenues for the quarter totaled $445 million, up 6 percent from the second quarter of last fiscal year. This business recorded second-quarter net orders of $434 million, up 5 percent from the same period last year. Net orders were up 4 percent in North America and up 7 percent in international markets.

"Oncology Systems' order growth was driven primarily by our service business and international demand," said Guertin. "Oncology order growth was 10 percent on a constant currency basis. The North American order growth rate was slowed by tightened capital budgets and tougher credit requirements. A shift toward North American deliveries and a richer product mix including RapidArc contributed to significant growth in gross margins for this business."

X-Ray Products

Revenues for the X-Ray Products business, including tubes and digital flat-panel detectors for filmless X-ray imaging, were $86 million for the second quarter, up 15 percent from the year-ago quarter. Net orders for this business were $69 million, down 17 percent from the year-ago quarter.

"X-ray Product orders were impacted by customers who are now adjusting inventory levels to reflect slower imaging equipment sales in a recessionary environment," said Guertin. "Orders for high-tier CT and mammography tubes declined. Decreases in dental and veterinary imaging panel orders offset significant growth in orders for our emerging line of radiographic panels. Higher revenues combined with operational improvements and reductions in quality cost led to a substantial margin increase for this business."

Other Businesses

The company's Security and Inspection Products (SIP) business, proton therapy business, and Ginzton Technology Center reported combined fiscal 2009 second quarter revenues of $23 million, up 3 percent from the year-ago quarter. Net orders for the quarter were $21 million, up 9 percent versus the year-ago quarter due exclusively to the SIP business.

The company completed the sale of the ACCEL research instruments business to Bruker Corporation during the quarter and recognized an $11.5 million loss net of taxes from discontinued operations. The company's proton therapy business will continue operating under the name Varian Particle Therapy.

Outlook

"Our outlook for the balance of the fiscal year is more cautious due to tighter capital budgets and credit, currency fluctuations, a longer order-to-delivery cycle in Oncology, and weaker demand for X-ray products," Guertin said. "We now believe that fiscal year 2009 revenues from continuing operations could grow by about 5 to 8 percent. With the help of cost control measures that the company has put in place for fiscal year 2009 and beyond, we believe that net earnings per diluted share from continuing operations for the fiscal year could grow to between $2.50 and $2.60 compared to $2.31 from continuing operations in last fiscal year. For the third quarter of fiscal year 2009, revenues could grow in the range of 5 to 7 percent, with higher growth in operating earnings. Including a higher expected tax rate and lower interest income, third quarter net earnings per diluted share from continuing operations should be in the range of $0.61 to $0.65."

Investor Conference Call

Varian Medical Systems is scheduled to conduct its second quarter fiscal year 2009 conference call at 2 p.m. PT today. To hear a live webcast or replay of the call, visit the investor relations page on the company's web site at http://www.varian.com/ where it will be archived for a year. To access the call via telephone, dial 1-800-659-2037 from inside the U.S. or 1-617-614-2713 from outside the U.S. and enter confirmation code 66725913. The replay can be accessed by dialing 1-888-286-8010 from inside the U.S. or 1-617-801-6888 from outside the U.S. and entering confirmation code 11191883. The telephone replay will be available through 5 p.m. PT, Friday, May 1, 2009.

Varian Medical Systems, Inc., of Palo Alto, California, is the world's leading manufacturer of medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, proton therapy, and brachytherapy. The company supplies informatics software for managing comprehensive cancer clinics, radiotherapy centers and medical oncology practices. Varian is a premier supplier of tubes and digital detectors for X-ray imaging in medical, scientific, and industrial applications and also supplies X-ray imaging products for cargo screening and industrial inspection. Varian Medical Systems employs approximately 5,100 people who are located at manufacturing sites in North America, Europe, and China and approximately 79 sales and support offices around the world. For more information, visit http://www.varian.com/.

Forward-Looking Statements

Except for historical information, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning industry outlook, including growth drivers; the company's future orders, revenues, backlog, or earnings growth; future financial results; market acceptance of or transition to new products or technology such as RapidArc therapy, image-guided radiation therapy (IGRT), stereotactic radiosurgery, filmless X-rays, proton therapy, and security and inspection, and any statements using the terms "believe," "could," "should," or similar statements are forward-looking statements that involve risks and uncertainties that could cause the company's actual results to differ materially from those anticipated. Such risks and uncertainties include the effect of economic conditions, including the current global recession, currency exchange rates and tax rates; the impact of health care reforms, and/or third-party reimbursement levels and credit availability for capital expenditures for cancer care; demand for the company's products; the company's ability to develop and commercialize new products; the company's ability to complete the planned sale of instruments portion of the company's ACCEL proton therapy business; the company's reliance on sole or limited-source suppliers; the impact of reduced or limited demand by sole purchasers of certain X-ray tubes; the company's ability to maintain or increase operating margins; the impact of competitive products and pricing; the company's ability to meet Food and Drug Administration and other regulatory requirements for product clearances or to comply with Food and Drug Administration and other regulatory regulations or procedures; the ability to make strategic acquisitions and to successfully integrate the acquired operations into the company's business; the company's ability to protect the company's intellectual property; the potential loss of key distributors or key personnel; and the other risks listed from time to time in the company's filings with the Securities and Exchange Commission, which by this reference are incorporated herein. The company assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.

A summary of earnings and other financial information follows. Varian Medical Systems, Inc. and Subsidiaries Condensed Consolidated Statements of Earnings (Unaudited) Q2 QTR Q2 QTR Q2 YTD Q2 YTD 2009 2008 2009 2008 (Dollars and shares in millions, except per share amounts) Net orders $524.2 515.4 1,075.5 1,004.4 Oncology Systems 434.2 413.1 861.8 798.8 X-Ray Products 68.8 83.0 159.9 158.1 Other 21.2 19.3 53.8 47.5 Order backlog $1,901.0 1,690.3 1,901.0 1,690.3 Revenues $553.6 518.4 1,062.3 969.6 Oncology Systems 444.6 421.2 842.8 781.5 X-Ray Products 85.8 74.8 171.9 144.9 Other 23.2 22.4 47.6 43.2 Cost of revenues $313.2 306.8 602.9 566.9 Gross margin 240.4 211.6 459.4 402.7 As a percent of revenues 43.4% 40.8% 43.2% 41.5% Operating expenses Research and development 37.0 31.9 74.0 60.8 Selling, general and administrative 81.1 75.1 164.4 150.2 Operating earnings 122.3 104.6 221.0 191.7 As a percent of revenues 22.1% 20.2% 20.8% 19.8% Interest income/(expense), net (0.4) 1.6 1.0 3.1 Earnings from continuing operations before taxes 121.9 106.2 222.0 194.8 Taxes on earnings 42.6 33.3 73.1 63.7 Earnings from continuing operations 79.3 72.9 148.9 131.1 As a percent of revenues 14.3% 14.1% 14.0% 13.5% Loss from discontinued operations - net of taxes (1) (11.5) (1.6) (12.3) (4.3) Net earnings $67.8 71.3 136.6 126.8 Net earnings (loss) per share - basic: Continuing operations $0.64 0.58 1.20 1.05 Discontinued operations (1) (0.09) (0.01) (0.10) (0.03) Net earnings per share $0.55 0.57 1.10 1.02 Net earnings (loss) per share - diluted: Continuing operations $0.64 0.57 1.19 1.03 Discontinued operations (1) (0.10) (0.01) (0.10) (0.04) Net earnings per share $0.54 0.56 1.09 0.99 Shares used in the calculation of net earnings per share: Average shares outstanding - basic 123.8 125.2 123.8 125.0 Average shares outstanding - diluted 124.5 128.0 124.8 127.9

(1) The operating results of ACCEL research instruments are classified as discontinued operations for all periods presented.

Varian Medical Systems, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) April 3, September 26, 2009 2008(2) (Unaudited) Assets Current assets Cash and cash equivalents $374,617 $397,306 Restricted cash 2,340 - Accounts receivable, net 534,789 486,310 Inventories 340,240 282,980 Deferred tax assets and other 198,168 209,006 Current assets of discontinued operations (1) - 18,799 Total current assets 1,450,154 1,394,401 Property, plant and equipment 503,897 452,576 Accumulated depreciation and amortization (251,624) (234,393) Property, plant and equipment, net 252,273 218,183 Goodwill 203,871 209,146 Other assets 157,693 150,694 Long term assets of discontinued operations (1) - 3,088 Total assets $2,063,991 $1,975,512 Liabilities and Stockholders' Equity Current liabilities Accounts payable $111,070 $105,281 Accrued expenses 226,756 252,915 Deferred revenues 131,464 141,368 Advance payments from customers 224,082 201,783 Product warranty 48,892 51,141 Short-term borrowings 10,000 - Current maturities of long-term debt 2,746 7,987 Current liabilities of discontinued operations (1) - 21,202 Total current liabilities 755,010 781,677 Other long-term liabilities 152,154 134,251 Long-term debt 29,774 32,399 Total liabilities 936,938 948,327 Stockholders' Equity Common stock 125,360 125,590 Capital in excess of par value 486,584 468,384 Retained earnings and accumulated other comprehensive loss 515,109 433,211 Total stockholders' equity 1,127,053 1,027,185 Total liabilities and stockholders' equity $2,063,991 $1,975,512

(1) The assets and liabilities of ACCEL research instruments are classified as discontinued operations.

(2) The condensed consolidated balance sheet as of September 26, 2008 was derived from audited financial statements as of that date.

FOR INFORMATION CONTACT: Elisha Finney (650) 424-6803 elisha.finney@varian.com Spencer Sias (650) 424-5782 spencer.sias@varian.com

Varian Medical Systems, Inc.

CONTACT: Elisha Finney, +1-650-424-6803, elisha.finney@varian.com, or
Spencer Sias, +1-650-424-5782, spencer.sias@varian.com, both of Varian Medical
Systems, Inc.

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

ARRIS Announces Preliminary and Unaudited First Quarter 2009 Results

SUWANEE, Ga., April 29 /PRNewswire-FirstCall/ -- ARRIS Group, Inc. , a global technology leader in the development of advanced cable telephony, next generation high-speed data, demand driven video solutions, operations software and broadband access equipment, today announced preliminary and unaudited financial results for the first quarter 2009, which were within the revenue and earnings guidance that the Company provided on February 11, 2009.

Revenues were $253.5 million as compared to first quarter 2008 revenues of $273.5 million and as compared to fourth quarter 2008 revenues of $292.4 million.

Non-GAAP net income in the first quarter 2009 was $0.18 per diluted share, as compared to the first quarter 2008 of $0.12 per diluted share and the fourth quarter 2008 of $0.25 per diluted share.

GAAP net income in the first quarter 2009 was $0.10 per diluted share, as compared to the first quarter 2008 net income of $0.03 per diluted share, and as compared to the fourth quarter 2008 net loss of $(1.33) per diluted share. The fourth quarter 2008 loss was primarily the result of a goodwill impairment, net of a related estimated tax benefit, of $(184.6) million, or $(1.48) per diluted share resulting from the Company's annual goodwill impairment analysis.

Significant non-GAAP items in the first quarter 2009 include: amortization of intangibles, equity compensation expense, non-cash interest related to convertible debt, and a gain on the partial retirement of convertible debt. A reconciliation of non-GAAP to GAAP earnings per share is attached to this release and also can be found on the Company's website (http://www.arrisi.com/).

The Company ended the first quarter 2009 with $424.4 million of cash and short-term investments, which compares to $427.3 million at the end of 2008. The Company generated approximately $13.8 million of cash from operating activities in the first quarter 2009. This amount compares to cash generated from operating activities of $30.5 million during the first quarter 2008. The Company used $10.6 million of cash to retire $15.0 million face value convertible debt in the first quarter 2009.

Order backlog at the end of the first quarter 2009 was $155.0 million and the Company's book to bill ratio in the first quarter was approximately 1.16. This amount compares to order backlog of $114.8 million and book to bill ratio of 0.90 for the fourth quarter of 2008.

"Although macro-economic conditions caused 2009 to start off somewhat slowly, we delivered a solid quarter with significantly higher earnings than a year ago," said Bob Stanzione, ARRIS Chairman & CEO. "During the quarter we have seen positive signs in our business that, coupled with the current plans of our customers, gives me cautious optimism that our business will gain momentum in the second quarter and beyond."

During the quarter the Company announced that Japan Cablenet Limited, the second largest cable operator in Japan, will begin wide-scale deployment of a 160 Mbps Super High Speed Data service, called "Speed Star 160," across its cable system footprint using both the ARRIS C4 CMTS platform and the ARRIS DOCSIS 3.0 customer premises equipment. In addition, the Company announced the debut of the newest member of its industry-leading CMTS portfolio, the C4c(TM), a small-form factor DOCSIS 3.0-based CMTS chassis that uses existing C4(R) architecture and modules and is designed for smaller operators and for headends lacking the space or environmental capacity for a full C4(R) chassis.

"We are off to a solid start to the year, particularly in light of the overall market conditions and I am pleased to see strengthening demand in the second quarter," said David Potts, ARRIS EVP & CFO. "As a result, we now project that revenues for the Company in the second quarter 2009 will be in the range of $270 to $290 million with non-GAAP net income per diluted share in the range of $0.20 to $0.24 and GAAP net income per diluted share, in the range of $0.12 to $0.16."

ARRIS management will conduct a conference call at 5:00pm EDT, today, Wednesday, April 29, 2009, to discuss these results in detail. You may participate in this conference call by dialing 888-713-4215 or 617-213-4867 for international calls prior to the start of the call and providing the ARRIS Group, Inc. name, conference passcode 66272751 and Jim Bauer as the moderator. Please note that ARRIS will not accept any calls related to this earnings release until after the conclusion of the 5:00pm EDT conference call. A replay of the conference call can be accessed approximately two hours after the call through Monday, May 4, 2009 by dialing 888-286-8010 or 617-801-6888 for international calls and using the passcode 62429395. A replay also will be made available for a period of 12 months following the conference call on ARRIS' website at http://www.arrisi.com/.

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

Forward-looking statements: Statements made in this press release, including those related to: -- growth expectations for 2009; -- second quarter and 2009 revenues and net income; -- expected sales levels and acceptance of certain ARRIS products; -- the general market outlook; and -- the outlook for industry trends

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

-- projected results for the second quarter as well as the general outlook for 2009 and beyond are based on preliminary estimates, assumptions and projections that management believes to be reasonable at this time, but are beyond management's control; -- our customers operate in a capital intensive industry, and the current disruptions in the capital markets may adversely impact their ability to finance, and therefore purchase, the products that we offer; and -- because the market in which ARRIS operates is volatile, actions taken and contemplated may not achieve the desired impact relative to changing market conditions and the success of these strategies will be dependent on the effective implementation of those plans while minimizing organizational disruption.

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

ARRIS GROUP, INC. PRELIMINARY CONSOLIDATED BALANCE SHEETS (in thousands) March 31, December 31, September 30, 2009 2008 2008 (unaudited) (audited) (unaudited) ----------- --------- ----------- ASSETS Current assets: Cash and cash equivalents $398,938 $409,894 $305,987 Short-term investments, at fair value 25,494 17,371 23,571 ------ ------ ------ Total cash, cash equivalents and short-term investments 424,432 427,265 329,558 Restricted cash 4,550 5,673 5,768 Accounts receivable, net 155,792 159,443 180,367 Other receivables 6,636 4,749 5,180 Inventories, net 120,774 129,752 139,598 Prepaids 6,994 8,004 5,156 Current deferred income tax assets 49,027 44,004 42,714 Other current assets 18,315 19,782 22,132 ------ ------ ------ Total current assets 786,520 798,672 730,473 Property, plant and equipment, net 59,438 59,204 60,268 Goodwill 231,684 231,684 449,418 Intangible assets, net 218,085 227,348 236,689 Investments 14,593 14,681 15,086 Noncurrent deferred income Tax assets 3,771 12,157 3,988 Other assets 5,483 6,576 7,173 ----- ----- ----- $1,319,574 $1,350,322 $1,503,095 ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $44,422 $75,863 $54,304 Accrued compensation, benefits and related taxes 15,583 27,024 21,831 Accrued warranty 5,306 5,652 6,354 Deferred revenue 44,006 44,461 35,986 Current portion of long-term debt 147 146 234 Current deferred income tax liability 241 1,059 - Other accrued liabilities 31,922 25,410 30,205 ------ ------ ------ Total current liabilities 141,627 179,615 148,914 Long-term debt, net of current portion 203,080 211,870 209,340 Accrued pension 19,289 18,820 10,622 Noncurrent income tax payable 12,441 9,607 10,128 Noncurrent deferred income tax liability 42,530 41,598 67,403 Other long-term liabilities 14,391 15,343 18,088 ------ ------ ------ Total liabilities 433,358 476,853 464,495 Stockholders' equity: Preferred stock - - - Common stock 1,368 1,362 1,360 Capital in excess of par value 1,159,054 1,159,097 1,155,211 Treasury stock at cost (75,960) (75,960) (75,960) Unrealized gain (loss) on marketable securities (372) (274) (128) Unfunded pension liability (8,070) (8,070) (3,358) Accumulated deficit (189,620) (202,502) (38,341) Cumulative translation adjustments (184) (184) (184) ---- ---- ---- Total stockholders' equity 886,216 873,469 1,038,600 ------- ------- --------- $1,319,574 $1,350,322 $1,503,095 ========== ========== ========== June 30, March 31, 2008 2008 (unaudited) (unaudited) ----------- ----------- ASSETS Current assets: Cash and cash equivalents $290,266 $243,515 Short-term investments, at fair value 7,503 49,513 ----- ------ Total cash, cash equivalents and short-term investments 297,769 293,028 Restricted cash 7,051 7,186 Accounts receivable, net 178,178 172,719 Other receivables 9,067 6,074 Inventories, net 144,507 122,361 Prepaids 5,305 5,680 Current deferred income tax assets 47,412 51,993 Other current assets 18,916 10,952 ------ ------ Total current assets 708,205 669,993 Property, plant and equipment, net 60,823 60,747 Goodwill 452,398 453,454 Intangible assets, net 244,575 257,029 Investments 9,937 10,200 Noncurrent deferred income tax assets 4,256 4,430 Other assets 9,488 10,641 ----- ------ $1,489,682 $1,466,494 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $68,476 $60,490 Accrued compensation, benefits and related taxes 18,072 14,397 Accrued warranty 7,566 7,919 Deferred revenue 37,614 32,738 Current portion of long-term debt 314 310 Current deferred income tax liability - - Other accrued liabilities 26,884 32,922 ------ ------ Total current liabilities 158,926 148,776 Long-term debt, net of current portion 206,865 204,288 Accrued pension 11,362 10,905 Noncurrent income tax payable 6,250 6,487 Noncurrent deferred income tax liability 74,805 74,164 Other long-term liabilities 18,694 19,704 ------ ------ Total liabilities 476,902 464,324 Stockholders' equity: Preferred stock - - Common stock 1,358 1,357 Capital in excess of par value 1,151,680 1,148,815 Treasury stock at cost (76,007) (76,007) Unrealized gain (loss) on marketable securities 66 151 Unfunded pension liability (3,358) (3,358) Accumulated deficit (60,775) (68,604) Cumulative translation adjustments (184) (184) ---- ---- Total stockholders' equity 1,012,780 1,002,170 --------- --------- $1,489,682 $1,466,494 ========== ========== ARRIS GROUP, INC. PRELIMINARY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) For the Three Months Ended March 31, ------------------------- 2009 2008 (unaudited) (unaudited) ----------- ----------- Net sales $253,518 $273,506 Cost of sales 158,008 188,258 ------- ------- Gross margin 95,510 85,248 Gross margin % 37.7% 31.2% Operating expenses: Selling, general, and administrative expenses 35,343 36,982 Research and development expenses 28,395 28,122 Restructuring 120 405 Amortization of intangible assets 9,263 13,254 ----- ------ 73,121 78,763 ------ ------ Operating income 22,389 6,485 Other expense (income): Interest expense 4,487 4,021 Loss on investments 297 2 Loss (gain) on foreign currency 958 (990) Interest income (385) (2,685) Gain on debt retirement (4,151) - Other (income) expense, net (103) (36) ---- --- Income from continuing operations before income taxes 21,286 6,173 Income tax expense 8,404 2,344 ----- ----- Net income $12,882 $3,829 ======= ====== Net income per common share: Basic $0.10 $0.03 ===== ===== Diluted $0.10 $0.03 ===== ===== Weighted average common shares: Basic 123,281 130,763 ======= ======= Diluted 124,920 131,981 ======= ======= ARRIS GROUP, INC. PRELIMINARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the Three Months Ended March 31, ------------------------ 2009 2008 (unaudited) (unaudited) ----------- ----------- Operating Activities: Net income $12,882 $3,829 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 4,827 4,963 Amortization of intangible assets 9,263 13,254 Stock compensation expense 3,401 2,551 Deferred income tax provision (benefit) 4,689 (6,389) Amortization of deferred finance fees 189 191 Provision for doubtful accounts 6 205 Loss on investments 297 2 Non-cash interest expense 2,818 2,605 Gain on debt retirement (4,152) - Excess tax benefits from stock-based compensation plans (431) - Changes in operating assets & liabilities, net of effects of acquisitions and disposals: Accounts receivable 3,645 (5,336) Other receivables (2,032) (1,744) Inventory 8,978 10,245 Income taxes payable (1,123) (1,734) Accounts payable and accrued liabilities (35,789) 9,300 Other, net 6,377 (1,427) ----- ------ Net cash provided by operating activities 13,845 30,515 Investing Activities: Purchases of property, plant, and equipment (5,066) (6,429) Cash paid for acquisition, net of cash acquired (200) (4,192) Cash proceeds from sale of property, plant & equipment - 224 Purchases of short-term-investments (23,870) (16,887) Disposals of short-term-investments 15,806 30,500 ------ ------ Net cash provided by (used in) investing activities (13,330) 3,216 Financing Activities: Payment of debt and capital lease obligations (10,592) (35,097) Repurchase of common stock - (75,960) Excess tax benefits from stock-based compensation plans 431 - Employer repurchase of shares to satisfy minimum tax withholdings (1,807) (239) Fees and proceeds from issuance of common stock, net 497 (2,717) --- ------ Net cash provided by (used in) financing activities (11,471) (114,013) Net increase (decrease) in cash and cash equivalents (10,956) (80,282) Cash and cash equivalents at beginning of period 409,894 323,797 ------- ------- Cash and cash equivalents at end of period $398,938 $243,515 ======== ======== ARRIS GROUP, INC. PRELIMINARY SUPPLEMENTAL NET INCOME (LOSS) RECONCILIATION (in thousands, except per share data) (unaudited) ------------------- ------------------- Q1 2009 Q1 2008 ------------------- ------------------- Per Diluted Per Diluted Amount Share Amount Share ------ ----------- ------ ----------- Net income $12,882 $0.10 $3,829 $0.03 Highlighted items: Impacting gross margin: Stock compensation expense 303 - 201 - Impacting operating expenses: Integration costs - - 427 - Restructuring charges 120 - 405 - Amortization of intangible assets 9,263 0.07 13,254 0.10 Stock compensation expense 3,098 0.02 2,350 0.02 Impacting other (income) / expense: Convertible debt non-cash interest 2,818 0.02 2,605 0.02 Gain on retirement of debt (4,152) (0.03) - - Impacting income tax expense: Adjustments of income tax valuation allowances and research & development credits and other 1,455 0.01 Tax related to highlighted items above (3,646) (0.03) (7,268) (0.06) ----- ---- ------ ---- Total highlighted items 9,259 0.07 11,974 0.09 ----- ---- ------ ---- Net income excluding highlighted items $22,141 $0.18 $15,803 $0.12 ======= ===== ======= ===== Weighted average common shares - diluted 124,920 131,981 ======= ======= With respect to stock compensation expense, ARRIS records non-cash compensation expense related to grants of options and restricted stock. Depending upon the size, timing and the terms of the grants, this non-cash compensation expense may vary significantly. With respect to amortization of intangibles, the intangibles being amortized relate to our recent acquisition of C-COR. The restructuring charge adjustments reflect items that, although they or similar items might recur, are of a nature and magnitude that identifying them separately provides investors with a greater ability to project ARRIS' future performance. With respect to the convertible debt non-cash interest, ARRIS records non-cash interest expense related to the 2013 convertible debt as a result of the adoption of FSP ABP 14-1 on January 1, 2009. Disclosing the non-cash piece provides investors with the information regarding interest that will not be paid out in cash. During the first quarter of 2009, ARRIS repurchased a portion of their convertible debt and recognized a gain of approximately $4.2 million. In the first quarter of 2009, a tax expense of approximately $1.5 million was recorded for state valuation allowances and research and development tax credits. During the first quarter of 2008, ARRIS recorded incremental costs of $0.4 million as a result of the C-COR integration. In assessing operating performance and preparing budgets and forecasts, ARRIS' management considers performance after making these adjustments and believes that providing investors with the same information provides greater transparency and insight into management's analysis. ARRIS GROUP, INC. Net Income Reconciliation (unaudited) Q2 EPS 2009 Guidance Estimated GAAP EPS - diluted $0.12 - $0.16 Reconciling Items: Amortization of intangibles, after tax 0.05 Stock compensation expense, after tax 0.02 Non-cash interest expense, after tax 0.01 ---- Subtotal 0.08 ---- Estimated adjusted (non-GAAP) EPS - diluted $0.20 - $0.24 ============= See the Supplemental Net Income Reconciliation for a discussion regarding management's reasoning for providing this non-GAAP financial measure.

ARRIS Group, Inc.

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

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

Communications & Power Industries to Provide Solid-State Power Amplifiers for Next Generation of SWE-DISH Satellite Terminals

PALO ALTO, Calif., April 29 /PRNewswire-FirstCall/ -- Communications & Power Industries, Inc. (CPI) has been awarded a three-year contract to supply high-power, solid-state power amplifiers to SWE-DISH Satellite Systems, a DataPath company, for use in the SWE-DISH IPT Suitcase(R) and SWE-DISH CommuniCase(R) Technology (CCT) product lines. The value of the contract could total several million dollars to CPI. CPI, a subsidiary of CPI International, Inc. , is a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications.

(Logo: http://www.newscom.com/cgi-bin/prnh/20060426/CPILOGO)

CPI has provided solid-state amplifiers to support the SWE-DISH IPT Suitcase small, satellite terminals since 2006. The IPT Suitcase is the smallest broadband satellite terminal in the world and is used for the transmission of video, data and voice content via satellite from remote or temporary sites anywhere in the world. SWE-DISH CommuniCase Technology is an innovative common modular system architecture for the next generation of satellite terminals, making them faster, interchangeable and more affordable. All CCT products feature a set of different modules, including plug-in modems, antenna units, control units and transceiver units, which can be replaced in the field.

"CPI's high-performance, high-power solid-state amplifiers readily and consistently achieve the demanding reliability requirements of our SWE-DISH IPT Suitcase satellite terminals as well as our new SWE-DISH CCT products," said Lars Jehrlander, chief executive officer of SWE-DISH. "The solid-state amplifiers that CPI has delivered over the past several years have performed extremely well for us and have contributed to the success of our products."

Work on the contract will be completed at CPI's Communications & Medical Products Division in Georgetown, Ontario.

About CPI International, Inc.

CPI International, Inc., headquartered in Palo Alto, California, is the parent company of Communications & Power Industries, Inc., a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications. Communications & Power Industries, Inc. develops, manufactures and distributes products used to generate, amplify, transmit and receive high-power/high-frequency microwave and radio frequency signals and/or provide power and control for various applications. End-use applications of these systems include the transmission of radar signals for navigation and location; transmission of deception signals for electronic countermeasures; transmission and amplification of voice, data and video signals for broadcasting, Internet and other types of commercial and military communications; providing power and control for medical diagnostic imaging; and generating microwave energy for radiation therapy in the treatment of cancer and for various industrial and scientific applications.

Certain statements included above constitute "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. Forward-looking statements provide our current expectations, beliefs or forecasts of future events. Forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual events or results to differ materially from the results projected, expected or implied by these forward-looking statements. These factors include, but are not limited to, competition in our end markets; the impact of a general slowdown in the global economy; our significant amount of debt; changes or reductions in the U.S. defense budget; currency fluctuations; U.S. government contracts laws and regulations; changes in technology; the impact of unexpected costs; and inability to obtain raw materials and components. These and other risks are described in more detail in our periodic filings with the Securities and Exchange Commission. As a result of these uncertainties, you should not place undue reliance on these forward-looking statements. All future written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. We undertake no duty or obligation to publicly revise any forward-looking statement to reflect circumstances or events occurring after the date hereof or to reflect the occurrence of unanticipated events or changes in our expectations.

Photo: http://www.newscom.com/cgi-bin/prnh/20060426/CPILOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com CPI International, Inc.

CONTACT: Amanda Mogin, Investor Relations of Communications & Power
Industries, +1-650-846-3998, amanda.mogin@cpii.com

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

Atmel Schedules First Quarter 2009 Earnings Release and Conference Call

SAN JOSE, Calif., April 29 /PRNewswire-FirstCall/ -- Atmel(R) Corporation will hold a conference call Tuesday, May 5, 2009 at 2 p.m. PT to discuss the Company's first quarter 2009 financial results. Participating in the call will be Steven Laub, Atmel President and CEO and Stephen Cumming, VP Finance and CFO. The earnings news release will be available after the close of market that day.

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 97406411 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 2 p.m. PT start time to ensure a timely connection. The webcast will be available at http://www.atmel.com/ir/.

A replay of the May 5, 2009 conference call will be available the same day 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 97406411.

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.

Contact: Robert Pursel, Director of Investor Relations, 1-408-487-2677

Atmel

CONTACT: Robert Pursel, Director of Investor Relations of Atmel,
1-408-487-2677

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

Mac-Gray Reschedules First Quarter 2009 Financial Results to Thursday, April 30thCompany to Broadcast Conference Call over the Internet at www.macgray.com

WALTHAM, Mass., April 29 /PRNewswire-FirstCall/ -- In conjunction with its quarterly financial results news release, Mac-Gray Corporation , the nation's premier provider of laundry facilities management services to multi-unit housing locations, has rescheduled its first-quarter 2009 financial results conference call and plans to broadcast live over the Internet on Thursday, April 30, 2009 at 10:00 a.m. ET. The call had previously been scheduled for May 5, 2009.

During the call, Stewart G. MacDonald, Mac-Gray's chairman and chief executive officer, and Michael J. Shea, executive vice president and chief financial officer, will summarize the Company's first-quarter 2009 financial results, and review the business and operating highlights.

To participate in the conference call, please dial (877) 407-8037 or (201) 689-8037. To listen to the live webcast, please visit the Investor Relations section of the Company's website at http://www.macgray.com/ prior to the event's broadcast.

About Mac-Gray Corporation

Founded in 1927, Mac-Gray derives its revenue principally through the contracting of debit-card- and coin-operated laundry facilities in multi-unit housing facilities such as apartment buildings, college and university residence halls, condominiums and public housing complexes. Mac-Gray manages approximately 80,000 laundry rooms located in 43 states and the District of Columbia.

Mac-Gray also sells, services and leases commercial laundry equipment to commercial laundromats and institutions through its product sales division. This division also includes Mac-Gray's MicroFridge(R) business, where Mac-Gray sells its proprietary MicroFridge(R) line of products, which are combination refrigerators/freezers/microwave ovens utilizing innovative Safe Plug circuitry. MicroFridge(R) and Maytag products bear the ENERGY STAR(R) designation. To learn more about Mac-Gray, visit the Company's website at http://www.macgray.com/.

Contacts: Michael J. Shea Jim Buckley Chief Financial Officer Executive Vice President Mac-Gray Corporation Sharon Merrill Associates, Inc. 781-487-7600 617-542-5300 Email: mshea@macgray.com Email: jbuckley@investorrelations.com

Mac-Gray Corporation

CONTACT: Michael J. Shea, Chief Financial Officer of Mac-Gray
Corporation, +1-781-487-7600, mshea@macgray.com; or Jim Buckley, Executive
Vice President of Sharon Merrill Associates, Inc., +1-617-542-5300,
jbuckley@investorrelations.com

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

/FIRST AND FINAL ADD - TO544a - Rogers Communications Inc./

SUPPLEMENTARY INFORMATION Calculations of Cable Non-GAAP Measures ------------------------------------------------------------------------- Three months ended March 31, (In millions of dollars, except --------------------------- adjusted operating profit margin) 2009 2008 ------------------------------------------------------------------------- Cable Operations adjusted operating profit margin: Adjusted operating profit $ 308 $ 283 Divided by revenue 743 695 --------------------------- Cable Operations adjusted operating profit margin 41.5% 40.7% ------------------------------------------------------------------------- RBS adjusted operating profit margin: Adjusted operating profit $ 15 $ 17 Divided by revenue 128 133 --------------------------- RBS adjusted operating profit margin 11.7% 12.8% ------------------------------------------------------------------------- SUPPLEMENTARY INFORMATION Calculation of Adjusted Operating Profit, Net Income and Earnings Per Share ------------------------------------------------------------------------- Three months ended March 31, (In millions of dollars, number of --------------------------- shares outstanding in millions) 2009 2008 ------------------------------------------------------------------------- Operating profit $ 1,082 $ 1,095 Add (deduct): Stock-based compensation recovery (81) (116) Integration and restructuring expenses 4 5 --------------------------- Adjusted operating profit $ 1,005 $ 984 --------------------------- --------------------------- Net income $ 309 $ 344 Add (deduct): Stock-based compensation recovery (81) (116) Integration and restructuring expenses 4 5 Income tax impact 24 37 --------------------------- Adjusted net income $ 256 $ 270 --------------------------- --------------------------- Adjusted basic and diluted earnings per share: Adjusted net income $ 256 $ 270 Divided by: weighted average number of shares outstanding 636 639 --------------------------- Adjusted basic and diluted earnings per share $ 0.40 $ 0.42 ------------------------------------------------------------------------- SUPPLEMENTARY INFORMATION Quarterly Consolidated Financial Summary 2009 2008 ------------------------------------------------------------------------- (In millions of dollars, except per share amounts) Q1 Q1 Q2 Q3 Q4 ------------------------------------------------------------------------- Income Statement Operating Revenue Wireless $ 1,544 $ 1,431 $ 1,522 $ 1,727 $ 1,655 Cable 968 925 938 961 985 Media 284 307 409 386 394 Corporate and eliminations (49) (54) (66) (92) (93) ------------------------------------------------------------------------- 2,747 2,609 2,803 2,982 2,941 ------------------------------------------------------------------------- Operating profit before the undernoted Wireless 710 705 769 693 639 Cable 324 303 304 318 313 Media (10) 2 52 43 46 Corporate and eliminations (19) (26) (36) (29) (30) ------------------------------------------------------------------------- 1,005 984 1,089 1,025 968 Stock option plan amendment(1) - - - - - Stock-based compensation recovery (expense)(1) 81 116 (53) 62 (25) Integration and restructuring expenses(2) (4) (5) (3) (2) (41) Adjustment for CRTC Part II fees decision(3) - - (37) - - Contract renegotiation fee(6) - - - - - ------------------------------------------------------------------------- Operating profit(4) 1,082 1,095 996 1,085 902 Depreciation and amortization 444 440 420 429 471 Impairment losses on goodwill, intangible assets and other long-term assets(5) - - - - 294 ------------------------------------------------------------------------- Operating income 638 655 576 656 137 Interest on long-term debt (152) (138) (133) (147) (157) Other income (expense) (17) (3) 11 - (31) Income tax reduction (expense) (160) (170) (153) (14) (87) ------------------------------------------------------------------------- Net income (loss) for the period $ 309 $ 344 $ 301 $ 495 $ (138) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net income (loss) per share: Basic $ 0.49 $ 0.54 $ 0.47 $ 0.78 $ (0.22) Diluted $ 0.49 $ 0.54 $ 0.47 $ 0.78 $ (0.22) Additions to property, plant and equipment(4) $ 359 $ 321 $ 481 $ 436 $ 783 ------------------------------------------------------------------------- 2007 ----------------------------------------------------- (In millions of dollars, except per share amounts) Q2 Q3 Q4 ----------------------------------------------------- Income Statement Operating Revenue Wireless $ 1,364 $ 1,442 $ 1,466 Cable 881 899 923 Media 348 339 364 Corporate and eliminations (66) (69) (66) ----------------------------------------------------- 2,527 2,611 2,687 ----------------------------------------------------- Operating profit before the undernoted Wireless 664 686 658 Cable 243 265 265 Media 45 46 63 Corporate and eliminations (22) (13) (29) ----------------------------------------------------- 930 984 957 Stock option plan amendment(1) (452) - - Stock-based compensation recovery (expense)(1) (32) (11) (4) Integration and restructuring expenses(2) (15) (5) (17) Adjustment for CRTC Part II fees decision(3) - 18 - Contract renegotiation fee(6) - - (52) ----------------------------------------------------- Operating profit(4) 431 986 884 Depreciation and amortization 398 397 408 Impairment losses on goodwill, intangible assets and other long-term assets(5) - - - ----------------------------------------------------- Operating income 33 589 476 Interest on long-term debt (152) (140) (138) Other income (expense) (24) (14) - Income tax reduction (expense) 87 (166) (84) ----------------------------------------------------- Net income (loss) for the period $ (56) $ 269 $ 254 ----------------------------------------------------- ----------------------------------------------------- Net income (loss) per share: Basic $ (0.09) $ 0.42 $ 0.40 Diluted $ (0.09) $ 0.42 $ 0.40 Additions to property, plant and equipment(4) $ 381 $ 397 $ 624 ----------------------------------------------------- (1) The introduction of a cash settlement feature for employee stock options resulted in a one-time non-cash pre-tax charge upon adoption of $452 million in the second quarter of 2007. (2) Costs incurred relate to severances resulting from the restructuring of our employee base to improve our cost structure in light of the declining economic conditions, the integration of Call-Net, Futureway and Aurora Cable, the restructuring of RBS, and the closure of certain Rogers Retail stores. (3) Related to an adjustment of CRTC Part II fees related to prior periods. See the section entitled "Government Regulation and Regulatory Developments". (4) As defined. See the section entitled "Key Performance Indicators and Non-GAAP Measures". (5) In the fourth quarter of 2008, we determined that the fair value of the conventional television business of Media was lower than its carrying value. This primarily resulted from weakening of industry expectations and declines in advertising revenues amidst the slowing economy. As a result, we recorded an aggregate non-cash impairment charge of $294 million with the following components: $154 million related to goodwill, $75 million related to broadcast licences and $65 million related to intangible assets and other long-term assets. (6) One-time charge resulting from the renegotiation of an Internet- related services agreement with Yahoo!. SUPPLEMENTARY INFORMATION Adjusted Quarterly Consolidated Financial Summary(1) 2009 2008 ------------------------------------------------------------------------- (In millions of dollars, except per share amounts) Q1 Q1 Q2 Q3 Q4 ------------------------------------------------------------------------- Income Statement Operating Revenue Wireless $ 1,544 $ 1,431 $ 1,522 $ 1,727 $ 1,655 Cable 968 925 938 961 985 Media 284 307 409 386 394 Corporate and eliminations (49) (54) (66) (92) (93) ------------------------------------------------------------------------- 2,747 2,609 2,803 2,982 2,941 ------------------------------------------------------------------------- Adjusted operating profit(2) Wireless 710 705 769 693 639 Cable 324 303 304 318 313 Media (10) 2 52 43 46 Corporate and eliminations (19) (26) (36) (29) (30) ------------------------------------------------------------------------- 1,005 984 1,089 1,025 968 Depreciation and amortization 444 440 420 429 471 ------------------------------------------------------------------------- Adjusted operating income 561 544 669 596 497 Interest on long-term debt (152) (138) (133) (147) (157) Other income (expense) (17) (3) 11 16 (31) Income tax reduction (expense) (136) (133) (183) - (145) ------------------------------------------------------------------------- Adjusted net income for the period $ 256 $ 270 $ 364 $ 465 $ 164 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Adjusted net income (loss) per share: Basic $ 0.40 $ 0.42 $ 0.57 $ 0.73 $ 0.26 Diluted $ 0.40 $ 0.42 $ 0.57 $ 0.73 $ 0.26 Additions to property, plant and equipment(2) $ 359 $ 321 $ 481 $ 436 $ 783 ------------------------------------------------------------------------- 2007 ----------------------------------------------------- (In millions of dollars, except per share amounts) Q2 Q3 Q4 ----------------------------------------------------- Income Statement Operating Revenue Wireless $ 1,364 $ 1,442 $ 1,466 Cable 881 899 923 Media 348 339 364 Corporate and eliminations (66) (69) (66) ----------------------------------------------------- 2,527 2,611 2,687 ----------------------------------------------------- Adjusted operating profit(2) Wireless 664 686 658 Cable 243 265 265 Media 45 46 63 Corporate and eliminations (22) (13) (29) ----------------------------------------------------- 930 984 957 Depreciation and amortization 398 397 408 ----------------------------------------------------- Adjusted operating income 532 587 549 Interest on long-term debt (152) (140) (138) Other income (expense) 23 (14) - Income tax reduction (expense) (104) (165) (109) ----------------------------------------------------- Adjusted net income for the period $ 299 $ 268 $ 302 ----------------------------------------------------- ----------------------------------------------------- Adjusted net income (loss) per share: Basic $ 0.47 $ 0.42 $ 0.47 Diluted $ 0.47 $ 0.41 $ 0.47 Additions to property, plant and equipment(2) $ 381 $ 397 $ 624 ----------------------------------------------------- (1) This quarterly summary has been adjusted to exclude the impact of the adoption of a cash settlement feature for employee stock options, stock-based compensation (recovery) expense, integration and restructuring expenses, adjustments to CRTC Part II fees related to prior periods, losses on repayment of long-term debt, debt issuance costs and the income tax impact related to the above items. See the section entitled "Key Performance Indicators and Non-GAAP Measures". (2) As defined. See the section entitled "Key Performance Indicators and Non-GAAP Measures". Rogers Communications Inc. Unaudited Interim Consolidated Statements of Income (In millions of dollars, except per share amounts) ------------------------------------------------------------------------- Three months ended March 31, 2009 2008 ------------------------------------------------------------------------- Operating revenue $ 2,747 $ 2,609 Operating expenses: Cost of sales 310 228 Sales and marketing 281 299 Operating, general and administrative 1,070 982 Integration and restructuring 4 5 Depreciation and amortization 444 440 ------------------------------------------------------------------------- Operating income 638 655 Interest on long-term debt (152) (138) Foreign exchange loss (29) (7) Change in fair value of derivative instruments 10 (4) Other income, net 2 8 ------------------------------------------------------------------------- Income before income taxes 469 514 ------------------------------------------------------------------------- Income tax expense: Current - 2 Future 160 168 ----------------------------------------------------------------------- 160 170 ------------------------------------------------------------------------- Net income for the period $ 309 $ 344 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted net income per share $ 0.49 $ 0.54 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Rogers Communications Inc. Unaudited Interim Consolidated Balance Sheets (In millions of dollars) ------------------------------------------------------------------------- March 31, December 31, 2009 2008 ------------------------------------------------------------------------- (Restated, note 1(a)) Assets Current assets: Accounts receivable $ 1,157 $ 1,403 Other current assets 502 442 Current portion of derivative instruments 31 - Future income tax assets 294 451 ----------------------------------------------------------------------- 1,984 2,296 Property, plant and equipment 7,883 7,898 Goodwill 3,012 3,024 Intangible assets 2,706 2,761 Investments 327 343 Derivative instruments 561 507 Other long-term assets 248 253 ------------------------------------------------------------------------- $ 16,721 $ 17,082 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities: Bank advances, arising from outstanding cheques $ 95 $ 19 Accounts payable and accrued liabilities 1,792 2,412 Current portion of long-term debt 1 1 Current portion of derivative instruments 34 45 Unearned revenue 305 239 ----------------------------------------------------------------------- 2,227 2,716 Long-term debt 8,646 8,506 Derivative instruments 463 616 Other long-term liabilities 157 184 Future income tax liabilities 373 344 ------------------------------------------------------------------------- 11,866 12,366 Shareholders' equity 4,855 4,716 ------------------------------------------------------------------------- $ 16,721 $ 17,082 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Rogers Communications Inc. Unaudited Interim Consolidated Statements of Shareholders' Equity (In millions of dollars) Three months ended March 31, 2009 ------------------------------------------------------------------------- Class A Class B Voting shares Non-Voting shares ----------------------- ----------------------- Number of Number of Amount shares Amount shares ------------------------------------------------------------------------- (000s) (000s) Balances, December 31, 2008 $ 72 112,462 $ 488 523,430 Change in accounting policy related to goodwill and intangible assets - - - - ------------------------------------------------------------------------- As restated, January 1, 2009 72 112,462 488 523,430 Net income for the period - - - - Shares issued on exercise of stock options - - 1 23 Dividends declared - - - - Other comprehensive income - - - - ------------------------------------------------------------------------- Balances, March 31, 2009 $ 72 112,462 $ 489 523,453 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Accumulated other compre- Total hensive share- Contributed Retained income holders' surplus earnings (loss) equity ------------------------------------------------------------------------- (Restated) (Restated) Balances, December 31, 2008 $ 3,560 $ 702 $ (95) $ 4,727 Change in accounting policy related to goodwill and intangible assets - (11) - (11) ------------------------------------------------------------------------- As restated, January 1, 2009 3,560 691 (95) 4,716 Net income for the period - 309 - 309 Shares issued on exercise of stock options - - - 1 Dividends declared - (184) - (184) Other comprehensive income - - 13 13 ------------------------------------------------------------------------- Balances, March 31, 2009 $ 3,560 $ 816 $ (82) $ 4,855 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three months ended March 31, 2008 ------------------------------------------------------------------------- Class A Class B Voting shares Non-Voting shares ----------------------- ----------------------- Number of Number of Amount shares Amount shares ------------------------------------------------------------------------- (000s) (000s) Balances, January 1, 2008 $ 72 112,462 $ 471 527,005 Change in accounting policy related to goodwill and intangible assets - - - - ------------------------------------------------------------------------- As restated, January 1, 2008 72 112,462 471 527,005 Net income for the period - - - - Shares issued on exercise of stock options - - 3 57 Dividends declared - - - - Other comprehensive loss - - - - ------------------------------------------------------------------------- Balances, March 31, 2008 $ 72 112,462 $ 474 527,062 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Accumulated other compre- Total hensive share- Contributed Retained income holders' surplus earnings (loss) equity ------------------------------------------------------------------------- (Restated) (Restated) Balances, January 1, 2008 $ 3,689 $ 342 $ 50 $ 4,624 Change in accounting policy related to goodwill and intangible assets - (11) - (11) ------------------------------------------------------------------------- As restated, January 1, 2008 3,689 331 50 4,613 Net income for the period - 344 - 344 Shares issued on exercise of stock options - - - 3 Dividends declared - (159) - (159) Other comprehensive loss - - (106) (106) ------------------------------------------------------------------------- Balances, March 31, 2008 $ 3,689 $ 516 $ (56) $ 4,695 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Rogers Communications Inc. Unaudited Interim Consolidated Statements of Comprehensive Income (In millions of dollars) ------------------------------------------------------------------------- Three months ended March 31, 2009 2008 ------------------------------------------------------------------------- Net income for the period $ 309 $ 344 Other comprehensive income (loss): Change in fair value of available-for-sale investments: Decrease in fair value (22) (111) --------------------------------------------------------------------- Cash flow hedging derivative instruments: Change in fair value of derivative instruments 240 151 Reclassification to net income of foreign exchange loss on long-term debt (185) (167) Reclassification to net income of accrued interest 4 35 --------------------------------------------------------------------- 59 19 ----------------------------------------------------------------------- 37 (92) Related income taxes (24) (14) ----------------------------------------------------------------------- 13 (106) ------------------------------------------------------------------------- Comprehensive income for the period $ 322 $ 238 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Rogers Communications Inc. Unaudited Interim Consolidated Statements of Cash Flows (In millions of dollars) ------------------------------------------------------------------------- Three months ended March 31, 2009 2008 ------------------------------------------------------------------------- Cash provided by (used in): Operating activities: Net income for the period $ 309 $ 344 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization 444 440 Program rights and Rogers Retail rental amortization 40 35 Future income taxes 160 168 Unrealized foreign exchange loss 27 - Change in the value of derivative instruments (10) 4 Stock-based compensation recovery (81) (116) Amortization on fair value increment of long-term debt (1) (1) Other (1) (5) ----------------------------------------------------------------------- 887 869 Change in non-cash operating working capital items (194) (170) ----------------------------------------------------------------------- 693 699 ------------------------------------------------------------------------- Investing activities: Additions to property, plant and equipment ("PP&E") (359) (321) Change in non-cash working capital items related to PP&E (131) (82) Acquisitions, net of cash and cash equivalents acquired - (7) Additions to program rights (44) (36) Deposits paid on acquisition - (16) Other (6) 2 ----------------------------------------------------------------------- (540) (460) ------------------------------------------------------------------------- Financing activities: Issuance of long-term debt 365 250 Repayment of long-term debt (435) (415) Dividends paid (159) (80) ----------------------------------------------------------------------- (229) (245) ------------------------------------------------------------------------- Decrease in cash and cash equivalents (76) (6) Cash deficiency, beginning of period (19) (61) ------------------------------------------------------------------------- Cash deficiency, end of period $ (95) $ (67) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Supplemental cash flow information: Interest paid $ 153 $ 104 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The change in non-cash operating working capital items is as follows: Decrease in accounts receivable $ 246 $ 118 Increase in other assets (74) (90) Decrease in accounts payable and accrued liabilities (432) (225) Increase in unearned revenue 66 27 ------------------------------------------------------------------------- $ (194) $ (170) ------------------------------------------------------------------------- -------------------------------------------------------------------------

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

The preceding MD&A and financial statements should be read in conjunction with the first quarter 2009 Notes to the Unaudited Interim Consolidated Financial Statements that can be found at http://www.rogers.com/ and on SEDAR at http://www.sedar.com/ or on EDGAR at http://www.sec.gov/.

Caution Regarding Forward-Looking Statements, Risks and Assumptions

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

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

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

Before making any investment decisions and for a detailed discussion of the risks, uncertainties and environment associated with our business, fully review the sections of this MD&A entitled "Updates to Risks and Uncertainties" and "Government Regulation and Regulatory Developments", and also the sections entitled "Risks and Uncertainties Affecting our Businesses" and "Government Regulation and Regulatory Developments" in our 2008 Annual MD&A.

Additional Information

Additional information relating to our company and business, including our 2008 Annual MD&A and 2008 Annual Information Form, may be found on SEDAR at http://www.sedar.com/ or on EDGAR at http://www.sec.gov/.

About the Company

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

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

Quarterly Investment Community Conference Call

As previously announced by press release, a live Webcast of our quarterly results conference call with the investment community will be broadcast via the Internet at http://www.rogers.com/webcast beginning at 8:00 a.m. ET today, April 29, 2009. A rebroadcast of this call will be available on the Webcast Archive page of the Investor Relations section of http://www.rogers.com/ for a period of at least two weeks following the conference call.

Rogers Communications Inc.

CONTACT: PRNewswire - - 04/29/2009

/A M E N D M E N T -- Rogers Communications Inc./Amendment to TO544 sent at 06:40ET today.In the section titled, "Wireless Equipment Sales", 'Smartphone devices as a percent of postpaid gross additions increased to approximately 60% in the first quarter of 2009...' should have read, 'Smartphone devices as a percent of postpaid gross additions increased to approximately 50% in the first quarter of 2009...'In the section titled, "Wireless Operating Expenses", 'Approximately 58% of the smartphone device activations in the first quarter of 2009 were hardware and service plan upgrades by existing subscribers...' should have read, 'Approximately 60% of the smartphone device activations in the first quarter of 2009 were hardware and service plan upgrades by existing subscribers...'In the section titled, "CONTROLS AND PROCEDURES", please disregard the first paragraph.Full corrected copy follows:Rogers Reports First Quarter 2009 Financial and Operating ResultsFirst Quarter Consolidated Revenue Grows 5% to $2.7 Billion;Adjusted Operating Profit Growth at Cable Operations of 9% is Partially Offset by Costs From Successful Smartphone Campaign, Reductions in Roaming and Other Discretionary Usage at Wireless, and Advertising Revenue Declines at Media;Wireless Holds ARPU Steady While Further Lowering Churn, Accelerating Wireless Data Revenue Growth to 43% and Driving 48% Network Revenue Margins;Cable Drives Continued Year-Over-Year Margin Expansion and Healthy Growth in Cash Flow

TORONTO, April 29 /PRNewswire-FirstCall/ -- Rogers Communications Inc. today announced its consolidated financial and operating results for the three months ended March 31, 2009.

Financial highlights are as follows: ------------------------------------------------------------------------- Three months ended March 31, (In millions of dollars, ------------------------------ except per share amounts) 2009 2008 % Chg ------------------------------------------------------------------------- Operating revenue $ 2,747 $ 2,609 5 Operating profit(1) 1,082 1,095 (1) Net income 309 344 (10) Basic and diluted net income per share $ 0.49 $ 0.54 (9) As adjusted:(2) Operating profit(1) $ 1,005 $ 984 2 Net income 256 270 (5) Basic and diluted net income per share $ 0.40 $ 0.42 (5) ------------------------------------------------------------------------- (1) Operating profit should not be considered as a substitute or alternative for operating income or net income, in each case determined in accordance with Canadian generally accepted accounting principles ("GAAP"). See the section entitled "Reconciliation of Net Income to Operating Profit and Adjusted Operating Profit for the Period" for a reconciliation of operating profit and adjusted operating profit to operating income and net income under Canadian GAAP and the section entitled "Key Performance Indicators and Non- GAAP Measures". (2) For details on the determination of the 'as adjusted' amounts, which are non-GAAP measures, see the sections entitled "Supplementary Information" and "Key Performance Indicators and Non-GAAP Measures". The 'as adjusted' amounts presented above are reviewed regularly by management and our Board of Directors in assessing our performance and in making decisions regarding the ongoing operations of the business and the ability to generate cash flows. The 'as adjusted' amounts exclude (i) stock-based compensation (recovery) expense; (ii) integration and restructuring expenses; and (iii) in respect of net income and net income per share, the related income tax impact of the above amounts. Highlights of the first quarter of 2009 include the following: - Generated growth in quarterly revenue of 5%, while adjusted operating profit grew 2% to $1.005 billion as the growth at Cable was partially offset by acquisition and retention costs from the continued successful smartphone campaign at Wireless and advertising revenue declines at Media. - Wireless network revenue grew by 8% year-over-year driven by postpaid net subscriber additions of 104,000, data revenue growth accelerating by 43% to 20% of network revenue, and a further reduction of postpaid churn to 1.09%. - Wireless activated more than 360,000 smartphone devices during the quarter. Approximately 40% of these activations were to subscribers new to Wireless with the other 60% being to existing Wireless subscribers who upgraded devices, committed to new term contracts, and in most cases attached both voice and monthly data packages which generate considerably above average ARPU. The results of this continued successful smartphone campaign drove significantly higher acquisition and retention costs at Wireless. - Cable's Internet subscriber base continued to grow during the quarter and penetration is approximately 44% of the homes passed by our cable networks and 68% of our basic cable customer base. In addition, digital penetration now represents approximately 69% of basic cable households, of which more than 619,000 households now receive high- definition television ("HDTV") services. - Cable ended the quarter with 857,000 residential voice-over-cable telephony lines, which brings the total penetration of cable telephony lines to 37% of basic cable subscribers, up from 31% at March 31, 2008. - Wireless announced the expansion of its advanced 3G voice and data network to 48 new sites in Northern Alberta to provide broader service to residents in the region and a range of business solutions to local businesses, including those in the oil and gas industry. - At March 31, Rogers had approximately $1.8 billion in available credit under its $2.4 billion committed bank credit facility that matures in July, 2013, and no scheduled debt maturities until May 2011. This financial position provides us with substantial liquidity and flexibility. - Rogers announced on February 18 that its Board of Directors had approved a 16% increase in the annualized dividend rate to $1.16 per share and immediately declared a quarterly dividend of $0.29 a share on each of its outstanding shares at the new, higher rate. In addition, the Board approved the renewal of a normal course issuer bid ("NCIB") to repurchase up to $300 million of Rogers' Class B shares on the open market during the following twelve months. - On March 30, Rogers announced the appointment of Nadir Mohamed as President and Chief Executive Officer. This appointment followed an extensive search carried out by our Board of Directors following the December 2008 passing of company founder and Chief Executive Officer Ted Rogers. A communications industry veteran with more than 25 years of experience, Nadir Mohamed was previously President and Chief Operating Officer of Rogers' Communications Group division, which included our Wireless and Cable businesses.

"The strength of our franchises is reflected in our first quarter results," said Nadir Mohamed, President and Chief Executive Officer. "We delivered positive subscriber trends, expanded margins, and accelerated data revenue growth at Wireless, while Cable further expanded margins and meaningfully grew its cash flow, and Media continued to adjust its cost structure and position itself to emerge from the economic downturn with greater share and stronger ratings."

"While Rogers is operating from a position of business and financial strength, we are clearly negotiating through challenging times and have much hard work in front of us to drive the performance of the business forward," continued Mohamed. "We will build upon our solid foundation by driving continuous enhancements to our customer experience, by improving our operating and capital efficiency and by continuing to deliver innovative services and leading edge technologies that our customers have come to expect."

This management's discussion and analysis ("MD&A"), which is current as of April 28, 2009, should be read in conjunction with our First Quarter 2009 Interim Unaudited Consolidated Financial Statements and Notes thereto, our 2008 Annual MD&A and our 2008 Annual Audited Consolidated Financial Statements and Notes thereto. The financial information presented herein has been prepared on the basis of Canadian generally accepted accounting principles ("GAAP") for interim financial statements and is expressed in Canadian dollars. Please refer to Note 25 of our 2008 Annual Audited Consolidated Financial Statements for a summary of the differences between Canadian GAAP and United States ("U.S.") GAAP for the year ended December 31, 2008.

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

- "Wireless", which refers to our wireless communications operations, including Rogers Wireless Partnership ("RWP") and Fido Solutions Inc. ("Fido"); - "Cable", which refers to our wholly-owned cable television subsidiaries, including Rogers Cable Communications Inc. ("RCCI") and its subsidiary, Rogers Cable Partnership; and - "Media", which refers to our wholly-owned subsidiary Rogers Media Inc. and its subsidiaries, including Rogers Broadcasting, which owns a group of 52 radio stations, the Citytv television network, the Rogers Sportsnet television network, The Shopping Channel, the OMNI television stations, and Canadian specialty channels including The Biography Channel Canada, G4TechTV and Outdoor Life Network; Rogers Publishing, which publishes approximately 70 magazines and trade journals; and Rogers Sports Entertainment, which owns the Toronto Blue Jays Baseball Club ("Blue Jays") and Rogers Centre. Media also holds ownership interests in entities involved in specialty television content, television production and broadcast sales. Substantially all of our operations are in Canada. "RCI" refers to the legal entity Rogers Communications Inc., excluding our subsidiaries. Throughout this MD&A, percentage changes are calculated using numbers rounded as they appear. SUMMARIZED CONSOLIDATED FINANCIAL RESULTS ------------------------------------------------------------------------- Three months ended March 31, (In millions of dollars, ------------------------------ except per share amounts) 2009 2008 % Chg ------------------------------------------------------------------------- Operating revenue Wireless $ 1,544 $ 1,431 8 Cable Cable Operations 743 695 7 RBS 128 133 (4) Rogers Retail 102 100 2 Corporate items and eliminations (5) (3) 67 ------------------------------ 968 925 5 Media 284 307 (7) Corporate items and eliminations (49) (54) (9) ------------------------------ Total 2,747 2,609 5 ------------------------------ ------------------------------ Adjusted operating profit (loss)(1) Wireless 710 705 1 Cable Cable Operations 308 283 9 RBS 15 17 (12) Rogers Retail 1 3 (67) ------------------------------ 324 303 7 Media (10) 2 n/m Corporate items and eliminations (19) (26) (27) ------------------------------ Adjusted operating profit(1) 1,005 984 2 Stock-based compensation recovery(2) 81 116 (30) Integration and restructuring expenses(3) (4) (5) (20) ------------------------------ Operating profit(1) 1,082 1,095 (1) Other income and expense, net(4) 773 751 3 ------------------------------ Net income $ 309 $ 344 (10) ------------------------------ ------------------------------ Basic and diluted net income per share $ 0.49 $ 0.54 (9) As adjusted:(1) Net income $ 256 $ 270 (5) Basic and diluted net income per share $ 0.40 $ 0.42 (5) Additions to property, plant and equipment ("PP&E")(1) Wireless $ 174 $ 163 7 Cable Cable Operations 104 121 (14) RBS 8 4 100 Rogers Retail 3 3 - ------------------------------ 115 128 (10) Media 14 21 (33) Corporate(5) 56 9 n/m ------------------------------ Total $ 359 $ 321 12 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) As defined. See the sections entitled "Supplementary Information" and "Key Performance Indicators and Non-GAAP Measures". (2) See the section entitled "Stock-based Compensation". (3) In the three months ended March 31, 2009, costs incurred relate to the integration of Futureway Communications Inc. ("Futureway") and Aurora Cable TV Limited ("Aurora Cable"), and the closure of certain Rogers Retail stores. In the three months ended March 31, 2008, costs incurred relate to the integration of Futureway and Call-Net Enterprises Inc. ("Call-Net"), the restructuring of Rogers Business Solutions ("RBS"), and the closure of certain Rogers Retail stores. (4) See the section entitled "Reconciliation of Net Income to Operating Profit and Adjusted Operating Profit for the Period". (5) The year-over-year increase in corporate additions to PP&E for the three months ended March 31, 2009 primarily reflects approximately $31 million of spending on an enterprise-wide billing and business system initiative. n/m: not meaningful. SEGMENT REVIEW WIRELESS -------- Summarized Wireless Financial Results ------------------------------------------------------------------------- Three months ended March 31, ------------------------------ (In millions of dollars, except margin) 2009 2008 % Chg ------------------------------------------------------------------------- Operating revenue Postpaid $ 1,406 $ 1,297 8 Prepaid 67 66 2 ------------------------------ Network revenue 1,473 1,363 8 Equipment sales 71 68 4 ------------------------------ Total operating revenue 1,544 1,431 8 ------------------------------ Operating expenses before the undernoted Cost of equipment sales 225 145 55 Sales and marketing expenses 140 140 - Operating, general and administrative expenses 469 441 6 ------------------------------ 834 726 15 ------------------------------ Adjusted operating profit(1) 710 705 1 Stock-based compensation recovery(2) 10 10 - ------------------------------ Operating profit(1) $ 720 $ 715 1 ------------------------------ ------------------------------ Adjusted operating profit margin as % of network revenue(1) 48.2% 51.7% Additions to PP&E(1) $ 174 $ 163 7 ------------------------------------------------------------------------- (1) As defined. See the sections entitled "Key Performance Indicators and Non-GAAP Measures" and "Supplementary Information". (2) See the section entitled "Stock-based Compensation". Summarized Wireless Subscriber Results ------------------------------------------------------------------------- Three months ended March 31, (Subscriber statistics in thousands, ------------------------------ except ARPU, churn and usage) 2009 2008 Chg ------------------------------------------------------------------------- Postpaid Gross additions 315 293 22 Net additions 104 97 7 Total postpaid retail subscribers 6,554 6,011 543 Average monthly revenue per user ("ARPU")(1) $ 72.15 $ 72.55 $ (0.40) Average monthly usage (minutes) 570 570 - Monthly churn 1.09% 1.10% (0.01%) Prepaid Gross additions 130 133 (3) Net losses (32) (29) (3) Total prepaid retail subscribers 1,460 1,395 65 ARPU(1) $ 15.10 $ 15.70 $ (0.60) Monthly churn 3.63% 3.81% (0.18%) Blended ARPU(1) $ 61.57 $ 61.73 $ (0.16) ------------------------------------------------------------------------- (1) As defined. See the section entitled "Key Performance Indicators and Non-GAAP Measures". As calculated in the "Supplementary Information" section. Wireless Network Revenue

The year-over-year increase in subscriber additions reflects, in part, the growth in activations of smartphone and wireless laptop devices, offset by lower sales of voice only handsets. The increase in network revenue for the three months ended March 31, 2009, compared to the corresponding period of the prior year, was driven predominantly by the continued growth of Wireless' postpaid subscriber base and the year-over-year growth of wireless data. Year-over-year, blended ARPU remained relatively flat, which reflects the impact of a higher mix of postpaid customers and higher wireless data revenue, which was partially offset by declines in roaming and out-of-plan usage revenues as customers curtail travel and adjust their wireless usage during the economic recession. The reductions in roaming and out-of-plan usage, combined with a decrease in long-distance calling, caused a decline in the voice component of postpaid ARPU compared to the corresponding period of the prior year, which was mostly offset by the accelerating growth in wireless data.

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

For the three months ended March 31, 2009, wireless data revenue increased by approximately 43% over the corresponding period of 2008, to $298 million. This acceleration of data revenue reflects the continued penetration and growing usage of smartphone and wireless laptop devices which are driving the use of text messaging and e-mail, wireless Internet access, and other wireless data services. The increase in wireless data usage was partially offset by the impact of certain data services price reductions made during 2008. For the three months ended March 31, 2009, data revenue represented approximately 20% of total network revenue, compared to 15% in the corresponding period of 2008.

Wireless Equipment Sales

The year-over-year increase in revenue from equipment sales, including activation fees and net of equipment subsidies, reflects the larger volume of smartphones sold in the first quarter of 2009 versus the corresponding period of 2008.

Wireless activated more than 360,000 smartphone devices, including iPhone 3G and BlackBerry devices, during the first quarter of 2009. Approximately 40% of these activations were to subscribers new to Wireless with the other 60% being to existing Wireless subscribers who upgraded devices, committed to new multi-year-term contracts, and in most cases attached both voice and monthly data packages which generate considerably above average ARPU. Smartphone devices as a percent of postpaid gross additions increased to approximately 50% in the first quarter of 2009 versus approximately 30% in the corresponding period of 2008, while smartphone devices as a percent of device upgrades increased to approximately 50% in the first quarter of 2009 versus approximately 20% in the corresponding period of 2008. Because Wireless incurs significant upfront handset subsidies for each unit activated, the results of this successful smartphone sales campaign drove significantly higher acquisition and retention costs at Wireless in the first quarter of 2009 versus the corresponding period of 2008.

The high upfront cost associated with adding smartphone subscribers so rapidly is an investment made to contract customers with significantly higher than average ARPU for multi-year terms which will have the effect in subsequent periods of being accretive to overall ARPU while reducing overall churn.

Wireless Operating Expenses ------------------------------------------------------------------------- Three months ended March 31, ------------------------------ (In millions of dollars) 2009 2008 % Chg ------------------------------------------------------------------------- Operating expenses Cost of equipment sales $ 225 $ 145 55 Sales and marketing expenses 140 140 - Operating, general and administrative expenses 469 441 6 ------------------------------ Operating expenses before the undernoted 834 726 15 Stock-based compensation recovery(1) (10) (10) - ------------------------------ Total operating expenses $ 824 $ 716 15 ------------------------------------------------------------------------- (1) See the section entitled "Stock-based Compensation".

As a result of the significant number of smartphone activations versus the year ago quarter, certain Wireless metrics for the first quarter of 2009, including cost of equipment sales and retention costs, increased significantly over the corresponding quarter in 2008. These cost increases had a dilutive impact on Wireless' operating profit growth. However, the large majority of smartphone customers subscribe to both voice and data service plans for multi-year terms, which has, to date, resulted in these customers generating greater than 150% of the average subscriber ARPU. We expect that our investments in attracting and retaining these high value smartphone subscribers will result in the creation of significant net positive lifetime value per subscriber added. Consequently, Wireless' ARPU levels are expected to be positively impacted over the term of the subscribers' multi-year contracts. See the section entitled "Caution Regarding Forward-Looking Statements, Risks and Assumptions" below.

The increase in cost of equipment sales for the three months ended March 31, 2009, compared to the corresponding period of the prior year, was primarily the result of the large volume of smartphone sales.

The year-over-year increase in operating, general and administrative expenses, excluding retention spending discussed below, in the three months ended March 31, 2009, compared to the corresponding period of 2008, was primarily driven by the overall growth in the Wireless subscriber base. In addition, Wireless incurred higher costs to support increased usage of wireless data services, as well as increases in information technology and customer care as a result of the complexity of supporting more sophisticated devices and services. These costs were partially offset by savings related to operating and scale efficiencies across various functions.

Total retention spending, including subsidies on handset upgrades, was $143 million in the three months ended March 31, 2009, compared to $94 million in the corresponding period of the prior year. As a result of its continued successful smartphone marketing campaign, Wireless had a higher rate of upgrade activity by existing subscribers during the quarter versus the corresponding period in 2008. Approximately 60% of the smartphone device activations in the first quarter of 2009 were hardware and service plan upgrades by existing subscribers which drove the largest portion of the increase in retention spending.

Wireless Adjusted Operating Profit

The year-over-year increase in adjusted operating profit reflects the increase in network revenue largely offset by the significant increase in cost of equipment sales from the smartphone handset subsidies discussed above. Primarily as a result of our investment in a significant number of high ARPU, but high subsidy smartphone activations, Wireless' adjusted operating profit margin on network revenue (which excludes equipment sales revenue) decreased to 48.2% for the three months ended March 31, 2009, compared to the historically high 51.7% in the corresponding period of 2008.

Wireless Additions to Property, Plant and Equipment ("PP&E") Wireless additions to PP&E are classified into the following categories: ------------------------------------------------------------------------- Three months ended March 31, ------------------------------ (In millions of dollars) 2009 2008 % Chg ------------------------------------------------------------------------- Additions to PP&E High-Speed Packet Access ("HSPA") $ 85 $ 62 37 Network - capacity 21 41 (49) Network - other 48 38 26 Information and technology and other 20 22 (9) ------------------------------ Total additions to PP&E $ 174 $ 163 7 -------------------------------------------------------------------------

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

CABLE ----- Summarized Cable Financial Results ------------------------------------------------------------------------- Three months ended March 31, ------------------------------ (In millions of dollars, except margin) 2009(1) 2008 % Chg ------------------------------------------------------------------------- Operating revenue Cable Operations(2) $ 743 $ 695 7 RBS 128 133 (4) Rogers Retail 102 100 2 Intercompany eliminations (5) (3) 67 ------------------------------ Total operating revenue 968 925 5 ------------------------------ Operating profit before the undernoted Cable Operations(2) 308 283 9 RBS 15 17 (12) Rogers Retail 1 3 (67) ------------------------------ Adjusted operating profit(3) 324 303 7 Stock-based compensation recovery(4) 25 33 (24) Integration and restructuring expenses(5) (4) (5) (20) ------------------------------ Operating profit(4) $ 345 $ 331 4 ------------------------------ ------------------------------ Adjusted operating profit margin(3) Cable Operations(2) 41.5% 40.7% RBS 11.7% 12.8% Rogers Retail 1.0% 3.0% Additions to PP&E(3) Cable Operations(2) $ 104 $ 121 (14) RBS 8 4 100 Rogers Retail 3 3 - ------------------------------ Total additions to PP&E $ 115 $ 128 (10) ------------------------------------------------------------------------- (1) The operating results of Aurora Cable are included in Cable's results of operations from the date of acquisition on June 12, 2008. (2) Cable Operations segment includes Core Cable services, Internet services and Rogers Home Phone services. (3) As defined. See the sections entitled "Key Performance Indicators and Non-GAAP Measures" and "Supplementary Information". (4) See the section entitled "Stock-based Compensation". (5) In the three months ended March 31, 2009, costs incurred relate to the integration of Futureway and Aurora Cable, and the closure of certain Rogers Retail stores. In the three months ended March 31, 2008, costs incurred relate to the integration of Futureway and Call- Net, the restructuring of RBS, and the closure of certain Rogers Retail stores.

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

CABLE OPERATIONS Summarized Financial Results ------------------------------------------------------------------------- Three months ended March 31, ------------------------------ (In millions of dollars, except margin) 2009 2008 % Chg ------------------------------------------------------------------------- Operating revenue Core Cable $ 428 $ 403 6 Internet 186 166 12 Rogers Home Phone 129 126 2 ------------------------------ Total Cable Operations operating revenue 743 695 7 ------------------------------ Operating expenses before the undernoted Sales and marketing expenses 55 64 (14) Operating, general and administrative expenses 380 348 9 ------------------------------ 435 412 6 ------------------------------ Adjusted operating profit(1) 308 283 9 Stock-based compensation recovery(2) 23 31 (26) Integration and restructuring expenses(3) (1) - n/m ------------------------------ Operating profit(1) $ 330 $ 314 5 ------------------------------ ------------------------------ Adjusted operating profit margin(1) 41.5% 40.7% ------------------------------------------------------------------------- (1) As defined. See the sections entitled "Key Performance Indicators and Non-GAAP Measures" and "Supplementary Information". (2) See the section entitled "Stock-based Compensation". (3) Costs incurred relate to the integration of Futureway and Aurora Cable. Summarized Subscriber Results ------------------------------------------------------------------------- Three months ended March 31, ------------------------------ (Subscriber statistics in thousands) 2009 2008 Chg ------------------------------------------------------------------------- Cable homes passed(1) 3,560 3,597 (37) Basic Cable Net losses (8) - (8) Total Basic Cable subscribers(2) 2,312 2,295 17 Cable High-speed Internet Net additions(3) 11 39 (28) Total Internet subscribers (residential)(2)(3) 1,582 1,491 91 Digital Cable Terminals, net additions 78 103 (25) Total terminals in service(2) 2,361 1,974 387 Households, net additions 35 49 (14) Total households(2) 1,585 1,402 183 Cable telephony lines Net additions and migrations(4) 17 46 (29) Total Cable telephony lines(2) 857 702 155 Cable Revenue Generating Units ("RGUs")(5) Net additions 55 134 (79) Total RGUs 6,336 5,890 446 ------------------------------------------------------------------------- Circuit-switched lines Net losses and migrations(4) (23) (14) (9) Total circuit-switched lines 192 320 (128) ------------------------------------------------------------------------- (1) Since March 31, 2008, a change in subscriber reporting resulted in a cumulative decrease to cable homes passed of approximately 157,000. (2) On June 12, 2008 we acquired approximately 16,000 basic cable subscribers, 11,000 high-speed Internet subscribers, 8,000 terminals in service, 6,000 digital households and 2,000 cable telephony subscriber lines, representing 35,000 RGUs, from Aurora Cable. (3) Cable high-speed Internet subscriber base excludes ADSL subscribers of 9,000 and 19,000 at March 31, 2009 and March 31, 2008, respectively. In addition, net additions excludes ADSL subscriber losses of 2,000 in the three months ended March 31, 2009 and ADSL subscriber gains of 2,000 in the three months ended March 31, 2008. The comparative figures have been restated to conform to the basis of presentation used in the current year. In addition, during the first quarter of 2008, a change in subscriber reporting resulted in the reclassification of approximately 4,000 high-speed Internet subscribers from RBS' broadband data circuits to Cable Operations' high-speed Internet subscriber base. These subscribers are not included in net additions for 2008. (4) Includes approximately 5,000 and 3,000 migrations from circuit- switched to cable telephony for the three months ended March 31, 2009 and 2008, respectively. (5) Cable RGUs are comprised of basic cable subscribers, digital cable households, Cable high-speed Internet subscribers and residential cable telephony lines.

An overall economic recession in Ontario has resulted in lower net additions of most of our cable products in the first quarter of 2009 compared to the corresponding period of 2008. The impact of this recession has most impacted new sales of our Internet and Home Phone products as customers move residences less and growth in new home construction has slowed significantly, which historically are two of Cable's largest sources of new product sales.

Core Cable Revenue

Within Cable Operations, the increase in Core Cable revenue for the three months ended March 31, 2009, compared to the corresponding period of 2008, reflects the continued deepening penetration of our digital cable product offerings. Additionally, the impact of certain price changes introduced during the previous twelve months to both our basic and digital cable services contributed to the growth in revenue.

The digital cable subscriber base grew by 13% from March 31, 2008 to March 31, 2009. Digital penetration now represents approximately 69% of basic cable households. Increased demand from subscribers for digital content generally and increasingly for HDTV and personal video recorder ("PVR") digital set-top box equipment, combined with multi-product marketing campaigns which package cable television, high-speed Internet and Rogers Home Phone services, contributed to the growth in the digital subscriber base of 35,000 in the three months ended March 31, 2009. In addition, digital cable subscriber box additions shifted in mix to a heavier weighting of customer purchase as opposed to rental in response to promotional activity in the early part of the quarter.

Internet (Residential) Revenue

The year-over-year increase in Internet revenues for the three months ended March 31, 2009, primarily reflects the 6% increase in the Internet subscriber base combined with increased ARPU resulting from Internet services price increases made during the previous twelve months and incremental revenue from charges for additional usage for customers who exceed prescribed monthly gigabyte allowances.

With the high-speed Internet base now at approximately 1.6 million, Internet penetration is approximately 44% of the homes passed by our cable networks and 68% of our basic cable customer base.

In addition to the economic impacts on sales as discussed above, the lower high-speed Internet net additions also reflect an increasing degree of product maturation as penetration of broadband in Canada continues to deepen.

Rogers Home Phone Revenue

The revenue growth of Rogers Home Phone for the three months ended March 31, 2009, reflects the year-over-year growth in the cable telephony customer base, offset by the ongoing decline of the circuit-switched and long-distance only customer bases. The lower net additions of cable telephony lines in the quarter versus the corresponding period of the previous year reflects the impact of economic recession in Ontario combined with intensified win-back activities by incumbent telecom providers as Rogers' market share increases.

The base of cable telephony lines grew 22% from March 31, 2008 to March 31, 2009. At March 31, 2009, cable telephony lines represented 24% of the homes passed by our cable networks and 37% of basic cable subscribers.

Cable continues to focus principally on growing its on-net cable telephony line base, and as part of this on-net focus, began to significantly de-emphasize circuit-switched sales early in 2008 and intensified its efforts to convert circuit-switched lines that are within the cable territory onto its cable telephony platform. Of the 17,000 net line additions to cable telephony during the quarter, approximately 5,000 were migrations of lines from our circuit-switched platform to our cable telephony platform. Because of the strategic decision to de-emphasize sales of the circuit-switched telephony product outside of the cable footprint, Cable expects that circuit-switched net line losses will continue as that base of subscribers shrinks over time.

Cable Operations Operating Expenses

The increase in Cable's operating expenses for the three months ended March 31, 2009 compared to the corresponding period of 2008 was primarily driven by the increases in the digital cable, Internet and Rogers Home Phone subscriber bases, resulting in higher costs associated with programming content, credit and collection costs, increases in information technology costs, and CRTC Part II fees. Partially offsetting these increases was a reduction in certain other costs resulting from lower volumes of RGU net additions than in the corresponding period of the prior year and the result of efficiency initiatives across various activity based functions.

Cable Operations Adjusted Operating Profit

The year-over-year growth in adjusted operating profit was primarily the result of the revenue growth described above; partially offset by the changes in Cable's operating expenses. As a result, Cable Operations adjusted operating profit margins increased to 41.5% for the three months ended March 31, 2009, compared to 40.7% in the corresponding period of 2008.

Cable Operations' base of circuit-switched local telephony customers as discussed above, which was acquired in July 2005 through the acquisition of Call-Net, is generally less capital intensive than its on-net cable telephony business but also generates lower margins. As a result, the inclusion of the circuit-switched local telephony business, which includes approximately 192,000 residential customers (of which approximately 25% are within Cable Operations' footprint), has a dilutive impact on operating profit margins.

ROGERS BUSINESS SOLUTIONS Summarized Financial Results ------------------------------------------------------------------------- Three months ended March 31, ------------------------------ (In millions of dollars, except margin) 2009 2008 % Chg ------------------------------------------------------------------------- RBS operating revenue $ 128 $ 133 (4) ------------------------------ Operating expenses before the undernoted Sales and marketing expenses 6 7 (14) Operating, general and administrative expenses 107 109 (2) ------------------------------ 113 116 (3) ------------------------------ Adjusted operating profit(1) 15 17 (12) Stock-based compensation recovery(2) 1 1 - Integration and restructuring expenses(3) - (1) n/m ------------------------------ Operating profit(1) $ 16 $ 17 (6) ------------------------------ ------------------------------ Adjusted operating profit margin(1) 11.7% 12.8% ------------------------------------------------------------------------- (1) As defined. See the sections entitled "Key Performance Indicators and Non-GAAP Measures" and "Supplementary Information". (2) See the section entitled "Stock-based Compensation". (3) Costs incurred relate to the integration of Call-Net and the restructuring of RBS. Summarized Subscriber Results ------------------------------------------------------------------------- Three months ended March 31, ------------------------------ (Subscriber statistics in thousands) 2009 2008 Chg ------------------------------------------------------------------------- Local line equivalents(1)(2) Total local line equivalents 193 222 (29) Broadband data circuits(3) Total broadband data circuits 37 31 6 ------------------------------------------------------------------------- (1) Local line equivalents include individual voice lines plus Primary Rate Interfaces ("PRIs") at a factor of 23 voice lines each. (2) Broadband data circuits are those customer locations accessed by data networking technologies including DOCSIS, DSL, E10/100/1000, OC 3/12 and DS 1/3. (3) During the first quarter of 2008, a change in subscriber reporting resulted in the reclassification of approximately 4,000 high-speed Internet subscribers from RBS' broadband data circuits to Cable Operations' high-speed Internet subscriber base. These subscribers are not included in net additions for 2008. RBS Revenue

The modest decrease in RBS revenues reflects a decline in the lower margin resale and legacy data service businesses, with a shift in focus to leveraging on-net revenue opportunities utilizing Cable's existing network facilities. As well, RBS continues to focus on retaining its existing medium-enterprise and carrier customer base. For the three months ended March 31, 2009, RBS data and local revenues declined modestly, offset partially by an increase in long-distance revenue compared to the corresponding period of 2008.

RBS continues to focus on managing the profitability of its existing customer base and evaluating profitable opportunities within the medium and large enterprise and carrier segments, while Cable Operations focuses on continuing to grow Rogers' penetration of telephony and Internet services into the small business and home office markets within Cable's territory.

RBS Operating Expenses

Operating, general and administrative expenses were relatively unchanged compared to the corresponding period of 2008 as a modest increase in carrier charges was offset by reductions in customer care and engineering costs.

The reduction in sales and marketing expenses for the three months ended March 31, 2009, compared to the corresponding period of the prior year, reflects streamlining initiatives associated with the refocusing of RBS' business as discussed above.

RBS Adjusted Operating Profit

The changes described above resulted in RBS adjusted operating profit of $15 million for the three months ended March 31, 2009, relatively unchanged from the $17 million recorded in the corresponding period of 2008.

ROGERS RETAIL Summarized Financial Results ------------------------------------------------------------------------- Three months ended March 31, ------------------------------ (In millions of dollars, except margin) 2009 2008 % Chg ------------------------------------------------------------------------- Rogers Retail operating revenue $ 102 $ 100 2 ------------------------------ Operating expenses 101 97 4 ------------------------------ Adjusted operating profit(1) 1 3 (67) Stock-based compensation recovery(2) 1 1 - Integration and restructuring expenses(3) (3) (4) (25) ------------------------------ Operating profit (loss)(1) $ (1) $ - n/m ------------------------------ ------------------------------ Adjusted operating profit margin(1) 1.0% 3.0% ------------------------------------------------------------------------- (1) As defined. See the sections entitled "Key Performance Indicators and Non-GAAP Measures". (2) See the section entitled "Stock-based Compensation". (3) Costs incurred relate to the closure of certain Rogers Retail stores. Rogers Retail Revenue

Rogers Retail revenue for the three months ended March 31, 2009, compared to the corresponding period of 2008, was relatively unchanged as the result of increased sales of Rogers Wireless and Cable products and services being mostly offset by the ongoing decline in video rentals.

Rogers Retail Adjusted Operating Profit

Adjusted operating profit at Rogers Retail was also relatively unchanged for the three months ended March 31, 2009, compared to the corresponding period of 2008, and reflects the trends noted above.

CABLE ADDITIONS TO PP&E

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

- Customer premise equipment ("CPE"), which includes the equipment for digital set-top terminals, Internet modems and associated installation costs; - Scalable infrastructure, which includes non-CPE costs to meet business growth and to provide service enhancements, including many of the costs to-date of the cable telephony initiative; - Line extensions, which includes network costs to enter new service areas; - Upgrades and rebuild, which includes the costs to modify or replace existing coaxial cable, fibre-optic equipment and network electronics; and - Support capital, which includes the costs associated with the purchase, replacement or enhancement of non-network assets. Summarized Cable PP&E Additions ------------------------------------------------------------------------- Three months ended March 31, -------------------------------- (In millions of dollars) 2009 2008 % Chg ------------------------------------------------------------------------- Additions to PP&E Customer premise equipment $ 33 $ 46 (28) Scalable infrastructure 35 35 - Line extensions 8 9 (11) Upgrades and rebuild 5 3 67 Support capital 23 28 (18) -------------------------------- Total Cable Operations 104 121 (14) RBS 8 4 100 Rogers Retail 3 3 - -------------------------------- $ 115 $ 128 (10) -------------------------------------------------------------------------

The decline in Cable Operations PP&E additions for the three months ended March 31, 2009 compared to the corresponding period in 2008 resulted primarily from lower spending on customer premise equipment as a result of lower RGU additions during the period combined with the utilization during the quarter of inventory which was purchased late in the fourth quarter of 2008.

The increase in RBS PP&E additions for the three months ended March 31, 2009, compared to the corresponding period of 2008, primarily reflects the timing of expenditures on customer networks and support capital.

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

MEDIA ----- Summarized Media Financial Results ------------------------------------------------------------------------- Three months ended March 31, ------------------------------ (In millions of dollars, except margin) 2009(1)(2) 2008 % Chg ------------------------------------------------------------------------- Operating revenue $ 284 $ 307 (7) ------------------------------ Operating expenses before the undernoted 294 305 (4) ------------------------------ Adjusted operating profit (loss)(3) (10) 2 n/m Stock-based compensation recovery(4) 16 20 (20) ------------------------------ Operating profit(5) $ 6 $ 22 (73) ------------------------------ ------------------------------ Adjusted operating profit (loss) margin(3) (3.5%) 0.7% Additions to property, plant and equipment(3) $ 14 $ 21 (33) ------------------------------------------------------------------------- (1) The operating results of channel m are included in Media's results of operations from the date of acquisition on April 30, 2008. (2) The operating results of Outdoor Life Network are included in Media's results of operations from the date of acquisition on July 31, 2008. (3) As defined. See the section entitled "Key Performance Indicators and Non-GAAP Measures". (4) See the section entitled "Stock-based Compensation". Media Revenue

The decrease in Media's revenues for the three months ended March 31, 2009, compared to the corresponding period of 2008, primarily reflects revenue declines at Publishing, Radio and Television driven by the soft advertising market and at The Shopping Channel driven by a challenging environment for consumer discretionary retail sales. These decreases were partially offset by an increase in subscriber revenue at Sportsnet, as well as growth at Sports Entertainment.

Media Operating Expenses

The decrease in Media's operating expenses for the three months ended March 31, 2009, compared to the corresponding period of 2008, primarily reflects lower variable costs associated with a decline in sales at The Shopping Channel, lower costs associated with printing at Publishing, and a focused cost containment program across all of Media's divisions. These decreases were partially offset by increased programming costs at Sportsnet.

Media Adjusted Operating Profit

The decrease in Media's adjusted operating profit for the three months ended March 31, 2009, compared to the corresponding period of 2008, primarily reflects the revenue and expense changes discussed above and overall is reflective of the challenging economic conditions and the resultant declines in advertising and retail sales activity.

Media Additions to PP&E

The majority of Media's PP&E additions in the three months ended March 31, 2009, reflect the continued construction of a new television production facility for the combined Ontario operations of Citytv and OMNI, with the overall decline from the three months ended March 31, 2008, a result of the aforementioned cost containment initiatives.

RECONCILIATION OF NET INCOME TO OPERATING PROFIT AND ADJUSTED OPERATING PROFIT FOR THE PERIOD

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

------------------------------------------------------------------------- Three months ended March 31, ------------------------------ (In millions of dollars) 2009 2008 % Chg ------------------------------------------------------------------------- Net income $ 309 $ 344 (10) Income tax expense 160 170 (6) Other income, net (2) (8) (75) Change in the fair value of derivative instruments (10) 4 n/m Foreign exchange loss 29 7 n/m Interest on long-term debt 152 138 10 ------------------------------ Operating income 638 655 (3) Depreciation and amortization 444 440 1 ------------------------------ Operating profit 1,082 1,095 (1) Stock-based compensation recovery (81) (116) (30) Integration and restructuring expenses 4 5 (20) ------------------------------ Adjusted operating profit $ 1,005 $ 984 2 ------------------------------------------------------------------------- Net Income and Net Income Per Share

We recorded net income of $309 million for the three months ended March 31, 2009, or basic and diluted net income per share of $0.49, compared to net income of $344 million, or basic and diluted net income per share of $0.54 in the corresponding period in 2008.

Income Tax Expense

Due to our non-capital loss carryforwards, our income tax expense for the three month periods ended March 31, 2009 and March 31, 2008 substantially represents non-cash income taxes. Our effective tax rates for the three months ended March 31, 2009 and March 31, 2008 were 34.1% and 33.1%, respectively. These rates were not materially different than the respective statutory tax rates of 32.2% and 32.7%.

Change in Fair Value of Derivative Instruments

The change in the fair value of derivative instruments in the three months ended March 31, 2009 was primarily the result of the changes in the value of the Canadian dollar relative to that of the U.S. dollar related to the cross-currency interest rate exchange agreements ("Derivatives") hedging the US$350 million Senior Notes due 2038 that have not been designated as hedges for accounting purposes. We have recorded the fair value of our Derivatives using an estimated credit-adjusted mark-to-market valuation. The impact of such valuation is illustrated in the section entitled "Mark-to-Market Value of Derivatives".

Foreign Exchange Loss

During the three months ended March 31, 2009, the Canadian dollar weakened by 3.56 cents versus the U.S. dollar resulting in a foreign exchange loss of $29 million, primarily related to US$750 million of U.S. dollar-denominated long-term debt that is not hedged for accounting purposes. During the corresponding period of 2008, the Canadian dollar weakened by 3.98 cents versus the U.S. dollar and resulted in a foreign exchange loss of $7 million during the three months ended March 31, 2008.

Interest on Long-Term Debt

The increase in interest expense for the three months ended March 31, 2009, compared to the corresponding period of 2008, is primarily due to the $1.0 billion net increase in long-term debt at March 31, 2009 compared to March 31, 2008, including the impact of Derivatives, partially offset by a slightly lower weighted average interest rate on long-term debt at March 31, 2009 compared to March 31, 2008. The net increase in our long-term debt at March 31, 2009 compared to March 31, 2008 was largely due to the payment of an aggregate $1.0 billion in the third quarter of 2008 for the acquisition of spectrum licences in the AWS spectrum auction.

Operating Income

The decrease in operating income in the three months ended March 31, 2009, compared to the corresponding period of 2008, reflects the growth in expenses, of $155 million exceeding the growth in revenue of $138 million. See the section entitled "Segment Review" for a detailed discussion of respective segment results.

Depreciation and Amortization Expense

The increase in depreciation and amortization expense for the three months ended March 31, 2009, compared to the corresponding period of 2008, primarily reflects an increase in depreciation on PP&E.

Stock-based Compensation A summary of stock-based compensation (recovery) expense is as follows: ------------------------------------------------------------------------- Stock-based Compensation (Recovery) Expense Included in Operating, General and Administrative Expenses ------------------------------------------------------------------------- Three months ended March 31, ------------------------------ (In millions of dollars) 2009 2008 ------------------------------------------------------------------------- Wireless $ (10) $ (10) Cable (25) (33) Media (16) (20) Corporate (30) (53) ------------------------------ $ (81) $ (116) -------------------------------------------------------------------------

At March 31, 2009, we had a liability of $179 million (March 31, 2008 - $359 million) related to stock-based compensation recorded at its intrinsic value, including stock options, restricted share units and deferred share units. In the three months ended March 31, 2009 and March 31, 2008, $19 million and $21 million, respectively, was paid to holders of stock options, restricted share units and deferred share units upon exercise using a cash settlement feature which we adopted for stock options in May 2007.

Integration and Restructuring Expenses

During the three months ended March 31, 2009, we incurred $4 million of restructuring expenses related to the closure of certain retail stores and the integration of previously acquired businesses and related restructuring.

Adjusted Operating Profit

As discussed above, Wireless and Cable both contributed to the increase in adjusted operating profit for the three months ended March 31, 2009 compared to the three months ended March 31, 2008, which was partially offset by the decrease in Media's adjusted operating profit. Wireless' quarterly adjusted operating profit was reduced as a result of the significant costs associated with the heavy sales volumes of subsidized smartphone devices as discussed above, while Media's quarterly adjusted operating profit reflects the declines in advertising sales and consumer discretionary purchases amidst the economic recession. For discussions of the results of operations of each of these segments, refer to the respective segment sections above.

Consolidated adjusted operating profit for the three months ended March 31, 2009 and March 31, 2008, respectively, excludes: (i) stock-based compensation recovery of $81 million and $116 million; and (ii) integration and restructuring expenses of $4 million and $5 million.

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

OVERVIEW OF LIQUIDITY, FINANCING AND SHARE CAPITAL ACTIVITIES Liquidity

For the three months ended March 31, 2009, cash generated from operations before changes in non-cash operating items, which is calculated by removing the effect of all non-cash items from net income, increased to $887 million from $869 million in the corresponding period of 2008. The $18 million increase is primarily the result of a $21 million increase in adjusted operating profit.

Taking into account the changes in non-cash working capital items for the three months ended March 31, 2009, cash generated from operations was $693 million, compared to $699 million in the corresponding period of 2008.

Net funds used during the three months ended March 31, 2009 totalled approximately $769 million, the details of which include the following:

- Additions to PP&E of $490 million, including $131 million of related changes in non-cash working capital; - Net repayments under our bank credit facility aggregating $70 million; - The payment of quarterly dividends of $159 million on our Class A Voting and Class B Non-Voting shares; and - Payments for program rights and other investments aggregating $50 million.

Taking into account the cash deficiency of $19 million at the beginning of the period and the uses of funds described above, the cash deficiency at March 31, 2009 was $95 million.

Financing

Our long-term debt instruments are described in Note 14 to the 2008 Annual Audited Consolidated Financial Statements and Note 5 to the Unaudited Interim Consolidated Financial Statements for the three months ended March 31, 2009.

As mentioned above, during the three months ended March 31, 2009, an aggregate $70 million net repayment was made under our bank credit facility, leaving approximately $1.8 billion available for drawdown under our $2.4 billion bank credit facility.

Normal Course Issuer Bid

In February 2009, Rogers filed a normal course issuer bid ("NCIB") authorizing us to repurchase up to the lesser of 15 million of our Class B Non-Voting shares and that number of Class B Non-Voting shares that can be purchased under the NCIB for an aggregate purchase price of $300 million. This NCIB, which expires on February 19, 2010, replaced a previously filed NCIB which expired in January 2009. During the three months ended March 31, 2009, no shares were repurchased. The number of Class B Non-Voting shares to be purchased under the NCIB, if any, and the timing of such purchases will be determined by RCI considering market conditions, stock prices, its cash position, and other factors.

Interest Rate and Foreign Exchange Management Economic Hedge Analysis

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

During the three months ended March 31, 2009, there was no change in our U.S. dollar-denominated debt or in our Derivatives. On March 31, 2009, 93.3% of our U.S. dollar-denominated debt was hedged on an economic basis while 87.4% of our U.S. dollar-denominated debt was hedged on an accounting basis under Canadian GAAP.

Consolidated Hedged Position ------------------------------------------------------------------------- (In millions of dollars, March 31, December 31, except percentages) 2009 2008 ------------------------------------------------------------------------- U.S. dollar-denominated long-term debt US $5,940 US $5,940 Hedged with Derivatives US $5,540 US $5,540 Hedged exchange rate Cdn $1.2043 Cdn $1.2043 Percent hedged 93.3%(1) 93.3% ------------------------------------------------------------------------- Amount of long-term debt (2) at fixed rates: Total long-term debt Cdn $8,327 Cdn $8,383 Total long-term debt at fixed rates Cdn $7,812 Cdn $7,798 Percent of long-term debt fixed 93.8% 93.0% ------------------------------------------------------------------------- Weighted average interest rate on long-term debt 7.27% 7.29% ------------------------------------------------------------------------- (1) Pursuant to the requirements for hedge accounting under Canadian Institute of Chartered Accountants ("CICA") Handbook Section 3865, Hedges, on March 31, 2009, RCI accounted for 93.5% of its Derivatives as hedges against designated U.S. dollar-denominated debt. As a result, 87.4% of U.S. dollar denominated debt is hedged for accounting purposes versus 93.3% on an economic basis. (2) Long-term debt includes the effect of the Derivatives. Mark-to-Market Value of Derivatives

In accordance with Canadian GAAP, we have recorded our Derivatives using an estimated credit-adjusted mark-to-market valuation which was determined by increasing the treasury-related discount rates used to calculate the risk-free estimated mark-to-market valuation by an estimated credit default swap spread ("CDS Spread") for the relevant term and counterparty for each derivative. In the case of Derivatives accounted for as assets by Rogers (i.e. those Derivatives for which the counterparties owe Rogers), the CDS Spread for the bank counterparty was added to the risk-free discount rate to determine the estimated credit-adjusted value whereas, in the case of Derivatives accounted for as liabilities (i.e. - those Derivatives for which Rogers owes the counterparties), Rogers' CDS Spread was added to the risk-free discount rate. The estimated credit-adjusted values of the Derivatives are subject to changes in credit spreads of Rogers and its counterparties.

The effect of estimating the credit-adjusted value of Derivatives at March 31, 2009 versus the unadjusted risk-free mark-to-market value of Derivatives is illustrated in the table below. As at March 31, 2009, the credit-adjusted estimated net asset value of Rogers' Derivatives portfolio was $95 million, which is $79 million less than the unadjusted risk-free mark-to-market net asset value.

------------------------------------------------------------------------- Derivatives Derivatives in a Net asset in an asset liability (liability) position position position (In millions of dollars) (A) (B) (A + B) ------------------------------------------------------------------------- Mark-to-market value - risk free analysis $ 695 $ (521) $ 174 ------------------------------------------------------------------------- Mark-to-market value - credit- adjusted estimate (carrying value) $ 592 $ (497) $ 95 ------------------------------------------------------------------------- Difference $ (103) $ 24 $ (79) ------------------------------------------------------------------------- Long-term Debt Plus Net Derivative Liabilities (Assets)

The aggregate of our long-term debt plus net derivative liabilities (assets) at the mark-to-market values using risk-free analysis ("the risk-free analytical value") is used by us and many analysts to most closely represent the Company's net debt-related obligations for valuation purposes, calculated as follows:

------------------------------------------------------------------------- March 31, December 31, (In millions of dollars) 2009 2008 ------------------------------------------------------------------------- Long-term debt(1) $ 8,647 $ 8,507 Net derivative liabilities (assets) at the risk-free analytical value(1) $ (174) $ 144 ------------------------------------------------------------------------- Total $ 8,473 $ 8,651 ------------------------------------------------------------------------- (1) Includes current and long-term portions.

We believe that the non-GAAP financial measure of long-term debt plus net derivative liabilities (assets) at the risk-free analytical value provides the most relevant and practical measure of our outstanding net debt-related obligations. We use this non-GAAP measure internally to conduct valuation-related analysis and make capital structure-related decisions and it is reviewed regularly by management. This is also useful to investors and analysts in enabling them to analyze the enterprise and equity value of the Company and to assess various leverage ratios as performance measures. This non-GAAP measure does not have a standardized meaning and should be viewed as a supplement to, and not a substitute for, our results of operations or financial position reported under Canadian and U.S. GAAP.

Outstanding Share Data

Set out below is our outstanding share data as at March 31, 2009. For additional information, refer to Note 18 of our 2008 Annual Audited Consolidated Financial Statements and the Unaudited Interim Consolidated Financial Statements for the three months ended March 31, 2009.

------------------------------------------------------------------------- March 31, 2009 ------------------------------------------------------------------------- Common Shares Outstanding(1) Class A Voting 112,462,014 Class B Non-Voting 523,452,687 ------------------------------------------------------------------------- Options to purchase Class B Non-Voting shares Outstanding options 16,033,938 Outstanding options exercisable 10,663,965 ------------------------------------------------------------------------- (1) Holders of our Class B Non-Voting shares are entitled to receive notice of and to attend meetings of our shareholders, but, except as required by law or as stipulated by stock exchanges, are not entitled to vote at such meetings. If an offer is made to purchase outstanding Class A Voting shares, there is no requirement under applicable law or RCI's constating documents that an offer be made for the outstanding Class B Non-Voting shares and there is no other protection available to shareholders under RCI's constating documents. If an offer is made to purchase both Class A Voting shares and Class B Non-Voting shares, the offer for the Class A Voting shares may be made on different terms than the offer to the holders of Class B Non-Voting shares. Dividends and Other Payments on Equity Securities

On October 28, 2008, our Board of Directors declared a quarterly dividend of $0.25 per share on each of the outstanding Class A Voting and Class B Non-Voting shares. This quarterly dividend totalling $159 million was paid on January 2, 2009 to shareholders of record on November 25, 2008.

On February 17, 2009, our Board of Directors adopted a dividend policy which increased the annualized dividend rate from $1.00 to $1.16 per Class A Voting and Class B Non-Voting share effective immediately to be paid in quarterly amounts of $0.29 per share. Such quarterly dividends are only payable as and when declared by our Board and there is no entitlement to any dividend prior thereto.

In addition, on February 17, 2009, our Board of Directors declared a quarterly dividend of $0.29 per share on each of the outstanding Class A Voting and Class B Non-Voting shares. This quarterly dividend was paid on April 1, 2009 to shareholders of record on March 6, 2009 and is the first quarterly dividend to reflect the newly increased $1.16 per share annualized dividend level.

COMMITMENTS AND CONTRACTUAL OBLIGATIONS

Our material obligations under firm contractual arrangements, including commitments for future payments under long-term debt arrangements, capital lease obligations and operating lease arrangements, are summarized in our 2008 Annual MD&A, and are further discussed in Notes 14, 15 and 23 of our 2008 Annual Audited Consolidated Financial Statements. There have been no significant changes to these material contractual obligations since December 31, 2008.

GOVERNMENT REGULATION AND REGULATORY DEVELOPMENTS

The significant government regulations which impact our operations are summarized in our 2008 Annual MD&A. Significant developments regarding those regulations since December 31, 2008 are as follows:

Over-the-Air Television Station Licence Renewals

In March 2009, the CRTC issued Broadcasting Notice of Consultation 2009-70-1, which confirmed that fee-for-carriage ("FFC") for local broadcasters will not be part of the April 2009 proceeding considering one-year licence renewal applications for private conventional television stations. FFC will be considered during the group-based renewal proceeding scheduled for the spring of 2010. In this Notice, the CRTC also asked for comments on whether the 1% of broadcasting distribution undertaking ("BDU") gross revenues to be contributed to the Local Programming Improvement Fund ("LPIF") to begin in September 2009 will provide sufficient support for local programming in non-metropolitan markets. Timing for the implementation of the new CRTC distant signal regime based on negotiations between broadcasters and distributors will also be addressed.

Parliamentary Committee on Canadian Heritage Hearings On Conventional Television

In March 2009, the House of Commons Standing Committee on Canadian Heritage initiated a study including hearings on the future of television in Canada and the impact of current economic conditions on local programming. The issue of FFC for local broadcasters is an identified topic in the study. Hearings are scheduled to continue through the spring.

Consultation on the Renewal of Cellular and Personal Communications Services ("PCS") Spectrum Licences

In March 2009, Industry Canada initiated a public consultation to discuss the renewal of cellular and PCS licences that expire on March 31, 2011. The decisions made as a result of this consultation will apply to cellular and PCS licences granted by any competitive process, including auctions.

Industry Canada is seeking comments on its proposal to renew licences and the licence conditions that would apply to new and renewed cellular and PCS licences, including issues such as licence terms, renewals and research and development. Industry Canada will also undertake a formal study to assess the current market value of these spectrum licences, and will launch a separate consultation later in 2009 that will seek comments on a proposed fee.

In addition, Industry Canada released a further consultation in April 2009, seeking comments on auction processes going forward. There is considerable overlap with the renewal consultation as issues such as research and development and licence terms will also be considered in that proceeding.

Consultation on Transition to Broadband Radio Service ("BRS") in the Band 2500-2696 MHz

In March 2009, Industry Canada announced a new consultation process to address issues related to the transition to BRS licensing in this band and the establishment of a firm transition date to allow for nation-wide implementation of a new band plan and mobile services. Industry Canada also announced that it will conduct a stakeholder proposal development process with existing licensees to identify band plan proposals that will be the subject of a future consultation. The future consultation will also consider the policy and licensing frameworks for the auction of available spectrum in this band.

UPDATES TO RISKS AND UNCERTAINTIES

Our significant risks and uncertainties are discussed in our 2008 Annual MD&A, which was current as of February 18, 2009, and should be reviewed in conjunction with this interim quarterly MD&A. Significant developments since that date are as follows:

Over-the-Air Television Station Licence Renewals

As of March 31, 2009, the CRTC is considering the appropriate level of Cable's contribution to the new LPIF; any increase to the 1% of gross BDU revenue levy will increase Rogers' costs. See Over-the-Air Television Station Licence Renewal section under Government Regulation and Regulatory Developments.

Restrictions on the Use of Wireless Handsets While Driving may Reduce Subscriber Usage

In April 2009, the Ontario Legislature passed the bill prohibiting wireless handset usage while driving except with the use of Bluetooth or other hands free devices. The implementation date for enforcement of the legislation is unknown but is not anticipated prior to the fall of 2009. Similar legislation banning the use of handheld devices while driving, except when used in conjunction with hands-free devices, already exists in the provinces of Quebec, New Brunswick, Nova Scotia and Newfoundland and Labrador.

KEY PERFORMANCE INDICATORS AND NON-GAAP MEASURES

We measure the success of our strategies using a number of key performance indicators that are defined and discussed in our 2008 Annual MD&A and this interim quarterly MD&A. These key performance indicators are not measurements under Canadian or U.S. GAAP, but we believe they allow us to appropriately measure our performance against our operating strategy as well as against the results of our peers and competitors. They include:

- Network revenue and ARPU; - Subscriber counts and subscriber churn; - Operating expenses; - Sales and marketing costs; - Operating profit; - Adjusted operating profit; - Adjusted operating profit margin; - Additions to PP&E; and - Long-term debt plus net derivative liabilities (assets).

We believe that the non-GAAP financial measure of long-term debt plus net derivative liabilities (assets) at the risk-free analytical value provides the most relevant and practical measure of our outstanding net debt-related obligations. We use this non-GAAP measure internally to conduct valuation-related analysis and make capital structure-related decisions and it is reviewed regularly by management. This is also useful to investors and analysts in enabling them to analyze the enterprise and equity value of the Company and to assess various leverage ratios as performance measures. This non-GAAP measure does not have a standardized meaning and should be viewed as a supplement to, and not a substitute for, our results of operations and financial position reported under Canadian and U.S. GAAP.

RELATED PARTY ARRANGEMENTS

We have entered into certain transactions with companies, the partners or senior officers of which are Directors of the Company. During the three months ended March 31, 2009 and March 31, 2008, total amounts paid by us to these related parties, directly or indirectly, were $4 million and less than $1 million, respectively.

We have entered into certain transactions with the controlling shareholder of the Company and companies controlled by the controlling shareholder of the Company. These transactions are subject to formal agreements approved by the Audit Committee. Total amounts received from these related parties, during the three months ended March 31, 2009 and March 31, 2008 were less than $0.5 million, respectively.

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

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

In our 2008 Annual Audited Consolidated Financial Statements and Notes thereto, as well as in our 2008 Annual MD&A, we have identified the accounting policies and estimates that are critical to the understanding of our business operations and our results of operations. For the three months ended March 31, 2009, there are no changes to the critical accounting policies and estimates of Wireless, Cable and Media from those found in our 2008 Annual MD&A.

NEW ACCOUNTING STANDARDS Goodwill and Intangible Assets

In 2008, the CICA issued Handbook Section 3064, Goodwill and Intangible Assets ("CICA 3064"). CICA 3064, which replaces Section 3062, Goodwill and Intangible Assets, and Section 3450, Research and Development Costs, establishes standards for the recognition, measurement and disclosure of goodwill and intangible assets. The provisions relating to the definition and initial recognition of intangible assets, including internally generated intangible assets, are equivalent to the corresponding provisions of IAS 38, Intangible Assets. This new standard is effective for our Interim and Annual Consolidated Financial Statements commencing January 1, 2009 and was applied retrospectively, with restatement of prior periods. The adoption of CICA 3064 resulted in a $16 million decrease in long-term other assets relating to deferred commissions and pre-operating costs, and an $11 million decrease in retained earnings at January 1, 2008, net of income taxes of $5 million and had no material impact on previously reported net income in 2008.

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

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

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

The table below illustrates key elements of our conversion plan, our major milestones and current status. Our conversion plan is organized in phases over time and by area. We have completed all activities to date per our detailed project plan and expect to meet all milestones through to completion of the conversion to IFRS.

We have allocated sufficient resources to our conversion project, which include certain full-time employees in addition to contributions by other employees on a part-time or as needed basis. We have completed the delivery of training to all employees with responsibilities in the conversion process and our conversion plan includes training for all other employees who will be impacted by our conversion to IFRS.

Although we have completed preliminary assessments of accounting and reporting differences, impacts on systems and processes and other areas of the business, we have not yet finalized these assessments. As we finalize our determination of the significant impacts on our financial reporting, including on our Key Performance Indicators, systems and processes, and other areas of our business, we intend to disclose such impacts in our future MD&As.

In the period leading up to the changeover, the AcSB will continue to issue accounting standards that are converged with IFRS, thus mitigating the impact of adopting IFRS at the changeover date. The International Accounting Standards Board ("IASB") will also continue to issue new accounting standards during the conversion period and, as a result, the final impact of IFRS on the Company's consolidated financial statements will only be measured once all the IFRS applicable at the conversion date are known.

------------------------------------------------------------------------- Activity Milestones Status ------------------------------------------------------------------------- Financial reporting: Senior management and Preliminary - Assessment of audit committee assessment of accounting and approval for policy accounting and reporting differences. recommendations and reporting differences - Selection of IFRS IFRS elections during completed. accounting policies 2009. and IFRS 1 elections. Selection of IFRS - Development of IFRS Senior management and accounting policies financial statement audit committee and IFRS 1 elections format, including approval on financial underway. disclosures. statement format - Quantification of during 2010. effects of conversion. Final quantification of conversion effects on 2010 comparative period by Q1 2011. ------------------------------------------------------------------------- Systems and processes: Systems, process and Preliminary - Assessment of impact internal control assessment of of changes on systems changes implemented required changes and processes. and training complete completed. - Implementation of any in time for parallel system and process run in 2010. Analysis of potential design changes design solutions including training Testing of internal underway. appropriate personnel. controls for 2010 - Documentation and comparatives completed testing of internal by Q1 2011. controls over new systems and processes. ------------------------------------------------------------------------- Business: Contracts updated/ Preliminary - Assessment of impacts renegotiated by end assessment of impacts on all areas of the of 2010. on other areas of the business, including business completed. contractual Communication at all arrangements and levels throughout the Communication is implementation of conversion process. ongoing. changes as necessary. - Communicate conversion plan and progress against it internally and externally. ------------------------------------------------------------------------- CONTROLS AND PROCEDURES

There have been no changes in our internal controls over financial reporting during the first quarter of 2009 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

SEASONALITY

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

Each of Wireless, Cable and Media has unique seasonal aspects to their businesses. For specific discussions of the seasonal trends affecting the Wireless, Cable and Media segments, please refer to our 2008 Annual MD&A.

2009 FINANCIAL AND OPERATING GUIDANCE

At this early point in the year we have no specific revisions to the 2009 annual financial and operating guidance ranges which we provided on February 18, 2009. See the section entitled "Caution Regarding Forward-Looking Statements, Risks and Assumptions" below.

SUPPLEMENTARY INFORMATION Calculations of Wireless Non-GAAP Measures ------------------------------------------------------------------------- Three months ended (In millions of dollars, subscribers March 31, in thousands, except ARPU figures --------------------------- and adjusted operating profit margin) 2009 2008 ------------------------------------------------------------------------- Postpaid ARPU (monthly) Postpaid (voice and data) revenue $ 1,406 $ 1,297 Divided by: average postpaid wireless voice and data subscribers 6,496 5,959 Divided by: 3 months for the quarter 3 3 --------------------------- $ 72.15 $ 72.55 ------------------------------------------------------------------------- Prepaid ARPU (monthly) Prepaid (voice and data) revenue $ 67 $ 66 Divided by: average prepaid subscribers 1,479 1,401 Divided by: 3 months for the quarter 3 3 --------------------------- $ 15.10 $ 15.70 ------------------------------------------------------------------------- Blended ARPU (monthly) Voice and data revenue $ 1,473 $ 1,363 Divided by: average wireless voice and data subscribers 7,975 7,360 Divided by: 3 months for the quarter 3 3 --------------------------- $ 61.57 $ 61.73 ------------------------------------------------------------------------- Adjusted operating profit margin Adjusted operating profit $ 710 $ 705 Divided by network revenue 1,473 1,363 --------------------------- Adjusted operating profit margin 48.2% 51.7% -------------------------------------------------------------------------

Rogers Communications Inc.

CONTACT: Investment Community Contacts: Bruce M. Mann, (416) 935-3532,
bruce.mann@rci.rogers.com; Dan Coombes, (416) 935-3550,
dan.coombes@rci.rogers.com; Media Contacts: Corporate and Media: Jan Innes,
(416) 935-3525, jan.innes@rci.rogers.com; Wireless and Cable: Terrie Tweddle,
(416) 935-4727, terrie.tweddle@rci.rogers.com

Rogers Communications Declares $0.29 Per Share Quarterly Dividend

TORONTO, April 29 /PRNewswire-FirstCall/ -- Rogers Communications Inc. ("Rogers") announced today that its Board of Directors has declared a quarterly dividend totalling $0.29 per share on each of its outstanding Class B Non-Voting shares and Class A Voting shares.

The quarterly dividend declared today will be paid on July 2, 2009 to shareholders of record on May 15, 2009, and is the second quarterly dividend to reflect the newly increased $1.16 per share annual dividend level. Such quarterly dividends are only payable as and when declared by Rogers' Board and there is no entitlement to any dividend prior thereto.

About the Company:

Rogers Communications is a diversified Canadian communications and media company. We are engaged in wireless voice and data communications services through Wireless, Canada's largest wireless provider and the operator of the country's only national GSM and HSPA based networks. Through Cable we are one of Canada's largest providers of cable television, high-speed Internet access and telephony. Through Media, we are engaged in radio and television broadcasting, televised shopping, magazines and trade publications, and sports entertainment. We are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B), and on the New York Stock Exchange . For further information about the Rogers group of companies, please visit http://www.rogers.com/.

Rogers Communications Inc.

CONTACT: Bruce M. Mann, (416) 935-3532, bruce.mann@rci.rogers.com; Dan
Coombes, (416) 935-3550, dan.coombes@rci.rogers.com

Mercury Computer Systems Announces Availability of Ensemble 5000 Series VXS Embedded Computing Module for Radar, SIGINT/EW, and Industrial ApplicationsNew, powerful product family to provide enhanced protection for software algorithm investment, multi-platform code portability, and rapid deployment on multiple form factorsInitial offering combines multicore Freescale processors with advanced switched-fabric topologies to enable 2x increase in SWaP performance for image and signal processing

CHELMSFORD, Mass., April 29 /PRNewswire-FirstCall/ -- Mercury Computer Systems, Inc. , a leading provider of embedded, high-performance computing solutions for image, sensor, and signal processing applications, announced availability of the Ensemble(TM) 5000 Series VXS HCD5220 Dual 8641D Dual-Core Processing Module. The HCD5220 is the first of several new products from the VXS Ensemble 5000 Series product family designed to extend embedded, high-performance computing to a sensor-networked environment, enabling rapid access to critical information from distributed sensors via the Converged Sensor Network(TM) (CSN(TM)) Architecture.

The Ensemble VXS HCD5220 is rich with architectural innovations and industry firsts. The HCD5220 combines the high-performance computing power of two Freescale(TM) 8641D PowerPC processors with dual PMC/XMC mezzanine sites, creating the ultimate balance of I/O and processing per slot. For example, signals intelligence/electronic warfare (SIGINT/EW) applications are typically optimized for size, weight, and power (SWaP) constraints. The HCD5220, when configured with the industry-leading Echotek(R) Series Digital Receiver modules, allows up to eight channels of processing per HCD5220, doubling the channel count per slot compared to previously available systems. Additionally, the innovative thermal design of the HCD5220 supports the faster 1.33 GHz 8641D processor in a standard 0.8" inch VXS slot. These improvements result in an overall 2x increase in performance relative to currently available SIGINT/EW processor-digital receiver subsystems.

For SAR/MTI (synthetic aperture radar/moving target indicator) radar applications, the HCD5220 brings new heights to system-level processing performance while simultaneously simplifying application development. Scaling a chassis to 18 HCD5220 modules and two Serial RapidIO(R) switch modules, the system offers two to three times more bisection bandwidth than mesh topologies of similar sizes, such as Mercury's previous generation of VPX products. For large systems, this increase in bisection bandwidth enables new and faster radar algorithm processing, as well as reduced system size, weight, and cost.

"While a number of embedded computing suppliers, including Mercury, are aggressively working to improve system-level capabilities in VPX, Mercury's VXS processor-based designs leverage those capabilities today. We created the Ensemble 5000 Series for new VXS designs in radar, SIGINT/EW, and industrial control, as well as for customers looking for development platforms for future VPX switch-enabled systems," said Steve Patterson, Product Group Manager for 6U VPX and VXS Systems at Mercury Computer Systems. "Unlike mesh-based designs, switch-based topologies simplify the customer's system design by making the application independent of the slot location in the chassis, while simultaneously providing 2x to 3x improvement in key system performance parameters."

As the first of several products in development for the VXS Ensemble 5000 Series, the HCD5220 includes key architectural elements from Mercury's CSN Architecture. Each PowerPC processor in a large multi-board system is paired with several internal and external Gigabit Ethernet interfaces, allowing any processor to communicate with any other processor for system control, as well as with customer-configured external networked resources. The Ethernet network is in addition to the 3.125 Gbaud Serial RapidIO switch topology for application data. Future offerings in the VXS Ensemble 5000 family under the CSN umbrella are planned to include a 10 Gigabit Ethernet real-time gateway for system connection with external Ethernet backbones, similar to Mercury's SR-110 10GE VXS Gateway module in production today.

Ensemble Series software enables rapid deployment of customer applications across 3U VPX, 6U VPX, and VXS form factors. Moreover, with identical hardware building blocks, the Ensemble products share identical Linux(R) and VxWorks(R) development and runtime environments. Customer applications for the HDC5220 can be easily retargeted for other Ensemble products. This allows users to have a single software code base, a protected investment in software algorithms, code portability, performance predictability, and rapid deployment across multiple form factors.

The VXS HCD5220 module is available now. For systems with low power requirements, the HCD5220 is available with the 1.06 GHz 8640D processor, a lower-power version providing the identical PowerPC processing architecture. Entry-level versions in volume start at under US$10,000. For more information on the Ensemble 5000 Series VXS HCD5220 Module, visit http://www.mc.com/ES, or contact Mercury at (866) 627-6951 or info@mc.com.

Mercury Computer Systems, Inc. -- Where Challenges Drive Innovation(TM)

Mercury Computer Systems (http://www.mc.com/, NASDAQ: MRCY) provides embedded computing systems and software that combine image, signal, and sensor processing with information management for data-intensive applications. With deep expertise in optimizing algorithms and software and in leveraging industry-standard technologies, we work closely with customers to architect comprehensive, purpose-built solutions that capture, process, and present data for defense electronics, homeland security, and other computationally challenging commercial markets. Our dedication to performance excellence and collaborative innovation continues a 25-year history in enabling customers to gain the competitive advantage they need to stay at the forefront of the markets they serve.

Mercury is based in Chelmsford, Massachusetts, and serves customers worldwide through a broad network of direct sales offices, subsidiaries, and distributors.

Forward-Looking Safe Harbor Statement

This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Ensemble 5000 Series or the VXS HCD5220 Dual 8641D Dual-Core Processing Module. You can identify these statements by our use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, general economic and business conditions, including unforeseen weakness in the Company's markets, effects of continued geo-political unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, continued funding of defense programs, the timing of such funding, changes in the U.S. Government's interpretation of federal procurement rules and regulations, market acceptance of the Company's products, shortages in components, production delays due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, and difficulties in retaining key customers. These risks and uncertainties also include such additional risk factors as are discussed in the Company's recent filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2008. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

Contact: Kathleen Sniezek, Public Relations Manager Mercury Computer Systems, Inc. 978-967-1126 / http://www.mc.com/

Challenges Drive Innovation, Converged Sensor Network, CSN, and Ensemble are trademarks, and Echotek is a registered trademark of Mercury Computer Systems, Inc. Other product and company names mentioned may be trademarks and/or registered trademarks of their respective holders.

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PRN Photo Desk photodesk@prnewswire.com Mercury Computer Systems, Inc.

CONTACT: Kathleen Sniezek, Public Relations Manager, Mercury Computer
Systems, Inc., +1-978-967-1126

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

VIVOTEK releasing high performance 2-megapixel network camera based on new DM365 digital media processor from Texas InstrumentsCamera provides day and night functionality for 24-hour surveillance

TAIPEI, April 29 /PRNewswire/ -- Texas Instruments Incorporated (TI) announced that its TMS320DM365 digital media processor based on DaVinci(TM) technology has been selected by VIVOTEK, one of the leading global suppliers of IP surveillance equipments, to drive its new high performance 2-megapixel network cameras. VIVOTEK's new IP8161 dual-mode (night/day) network camera supports H.264 compression, providing outstanding image quality and superior streaming efficiency. With the built-in removable IR-cut filter, the new camera provides day and night functionality for 24-hour surveillance, providing comprehensive protection for open spaces with high security demands, such as airports and banks.

"To meet the market needs for higher resolution and image compression in surveillance products, VIVOTEK has been working with partners to develop high-performance, cost-effective, cutting-edge solutions," said William Gu, product marketing director, VIVOTEK. "The new IP8161 camera is based on TI's DM365 digital media processor. VIVOTEK has worked closely with TI since the initial development stage of this new product. TI's product roadmap matches future trends for key IP surveillance technologies and helps us develop advanced video surveillance solutions to meet customers' needs for highly integrated products."

VIVOTEK's new IP8161 dual-mode (night/day) network camera features a 2-megapixel CMOS sensor and supports H.264, MPEG-4 and MJEPG compression, drastically reducing file sizes and conserving valuable network bandwidth. With the compression technologies, the video streams can also be individually configured to meet different needs of bandwidth constraints, thereby further reducing bandwidth and storage requirements. Furthermore, the ePTZ (electronic pan, tilt, zoom) function enables users to focus on close-up shots of different areas in the camera's view without moving the camera physically.

Additionally, the IP8161 has advanced analytical functions, such as tamper detection and the built-in SD/SDHC card slot provides faster and higher detection accuracy with more flexibility. Integrated with TI's DM365 digital media processor, IP8161 not only achieves 720p HD resolution at 30 frames per second, but it also allows higher-level integration that can minimize video surveillance system costs for the customers. The new product is specially designed for security-sensitive spaces with large traffics such as parking areas, airports and banks.

"TI is devoted to driving the development of IP video surveillance technology," said Cyril Clocher, TI's video business manager. "We are delighted that our technology has allowed VIVOTEK, a leading network video surveillance system provider, to achieve remarkable performance with a cost-effective and differentiated product for their industry. In the future, TI will continue to work closely with VIVOTEK on leading, innovative TI technology that lets them go beyond the existing boundaries of the IP video surveillance market."

Find out more about VIVOTEK's network cameras or TI's DM365 digital media processor:

-- VIVOTEK's network camera solution: http://www.ti.com/dm365customer-vivotech -- TMS320DM365 digital media processor: http://www.ti.com/dm365-vivotech -- TI's Video and Imaging solutions: http://www.ti.com/vi-vivotech About VIVOTEK

VIVOTEK INC., established in Taiwan in 2000, has quickly grown into a prestigious leading manufacturer in the network video surveillance industry. VIVOTEK is devoted to provide complete solutions for global IP surveillance industry. VIVOTEK offers a comprehensive product line, including network cameras, video servers, video receivers, NVR, and video management software. For years to come, VIVOTEK will develop products featuring more advanced functions to broaden the product portfolio from entry level to high end. VIVOTEK will also continue to offer more cost-effective and higher value-added solutions for the customers. For more information, go to http://www.vivotek.com/.

About Texas Instruments

Texas Instruments helps customers solve problems and develop new electronics that make the world smarter, healthier, safer, greener and more fun. A global semiconductor company, TI innovates through design, sales and manufacturing operations in more than 30 countries. For more information, go to http://www.ti.com/.

Trademarks

DaVinci is a trademark of Texas Instruments. All trademarks are the property of their respective owners.

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PRN Photo Desk photodesk@prnewswire.com Texas Instruments Incorporated

CONTACT: Jenn Blackmer, +1-713-513-9566, jblackmer@golinharris.com, or
Solon Li, 86-21-2307-3665, solon-li@ti.com, or Zoe Chuang, 886-2-7718-7777,
ext. 569, zoe@apexpr.com.tw, or Wansan Tsai, 886-2-7718-7777, ext. 522,
wansan@apexpr.com.tw

Web Site: http://www.ti.com/
http://www.vivotek.com/

Baldor Electric Company Announces First Quarter 2009 Results

FORT SMITH, Ark., April 29 /PRNewswire-FirstCall/ -- Baldor Electric Company markets, designs and manufactures industrial electric motors, mechanical power transmission products, drives and generators. Today, Baldor announced unaudited results for first quarter 2009.

John McFarland, Chairman and CEO, commented on the Company's results. "For the first quarter of 2009, we had sales of $402.5 million, a 14% decline from one year ago. Net earnings for the quarter, excluding a one-time gain from the modification of our debt agreement, were $14.8 million, a 42% decline, and diluted earnings per share, excluding the one-time gain, were $0.32, a 43% decline. In December, we announced a plan to reduce 2009 costs by $80 million, and through the first quarter, we are on track to exceed this goal. We can see our progress in the improved operating margin of 11.2% in the quarter compared to 10.8% in fourth quarter 2008 when sales were nearly $72 million higher. We expect the planned cost savings to build as the year progresses."

Year Over Year Sequential Comparison Comparison (in thousands Q1 2009 Q1 2008 Q1 2009 Q4 2008 except per Apr 4, Mar 29, % Apr 4, Jan 3, % share data) 2009 2008 Chg 2009 2009 Chg Net sales $402,479 $470,526 (14%) $402,479 $474,022 (15%) Cost of sales 286,053 326,803 286,053 339,049 Gross profit 116,426 143,723 (19%) 116,426 134,973 (14%) SG&A 71,428 77,072 71,428 83,712 Operating profit 44,998 66,651 (32%) 44,998 51,261 (12%) Other income (expense), net 785 2 785 3,316 Gain on debt modification 35,740 - 35,740 - Interest expense (22,483) (26,592) (22,483) (26,762) Income before income taxes 59,040 40,061 59,040 27,815 Income taxes 22,622 14,422 22,622 9,214 Net income $36,418 $25,639 42% $36,418 $18,601 96% Net earnings per share - diluted $0.79 $0.56 41% $0.79 $0.40 98% Less net gain on debt modification 0.47 - 0.47 - Net earnings per share - diluted excluding gain on debt modification (1) $0.32 $0.56 (43%) $0.32 $0.40 (20%) Dividends per share $0.17 $0.17 0% $0.17 $0.17 0% Avg shares outstanding - diluted 46,359 46,030 46,359 46,266

McFarland added, "We believe second quarter 2009 could be the most challenging quarter of the year with sales down approximately 15-20% from a record sales quarter last year. We believe a slower rate of customer inventory destocking, as well as our introduction of new products and other sales initiatives, will benefit us in the second half of the year."

Selected Financial Data (unaudited) (in thousands) Q1 2009 Q4 2008 Cash $6,876 $13,098 Net Receivables 259,537 275,789 Inventories 345,295 344,920 Total outstanding debt 1,319,205 1,326,922 Shareholders' equity 882,295 839,527 Q1 2009 Q1 2008 YTD Cash flows from operations $12,551 $26,701 (Photo: http://www.newscom.com/cgi-bin/prnh/20090429/DA07733) Following are answers to questions recently asked by shareholders. Q... How was business during the quarter?

For the quarter, sales of industrial motors were $272 million, down 11%, and sales of mechanical power transmission products were $108 million, down 21%. We saw weakness throughout most of our end markets and customers. Sales to domestic OEMS were down 15%, and sales to domestic distributors were down 19% as they continue to reduce inventories. Our backlog at the end of the quarter was approximately $200 million compared to approximately $225 million at the end of fourth quarter 2008. International sales of $73 million comprised 18% of sales for the quarter and were down 4% from last year.

Q... How were sales of your Super-E(R) premium efficient motors?

Sales of Super-E motors continued to outpace sales of other motors with an increase of more than 25% from first quarter 2008. We believe this trend will continue as customers begin to prepare for the December 2010 implementation of the 2007 Energy Bill. This bill raises the minimum efficiency of many motors to our Super-E premium efficient level.

Once these efficiency levels become the new standard, we know that customers will want to buy something even more efficient. As a result, we have been working to develop the next generation of high efficiency industrial motors with the assistance of the U.S. Department of Energy. Design work on these products is expected to be completed in the next several years. This project will create a smaller, lighter and more efficient motor than is currently available. The Department of Energy estimates that these motors could ultimately yield annual energy savings in the United States of over $1.4 billion. For more information on this and other industrial energy-efficiency programs, visit the Department of Energy at http://www.eere.energy.gov/industry/.

Q... Do you see any other positive signs in your business?

Yes, we see a few. The sales decline for distributors has lessened slightly. Our Dodge products are sold primarily through distributors, so a slower destocking rate should be a benefit for these products. Quote activity for Dodge products has increased for projects related to road construction. The Bounty Hunt program has earned us the business of more than 150 new customers this year. As the year progresses, the impact of these new customers will increase.

Q... How have raw material costs changed for you?

Overall, we paid more for materials during the first quarter than we did one year ago. We expect material costs to improve during the balance of the year.

Q... Are you on track to achieve the $80 million in annual cost savings you announced in December?

Yes. We are exceeding our goals on overtime, people and discretionary spending. This is evidenced by our higher gross margin of 28.9% in the quarter compared to 28.5% in fourth quarter 2008 and higher operating margin of 11.2% in the quarter compared to 10.8% in fourth quarter 2008. We expect these cost savings to build throughout the year. We will provide a more detailed update on our cost reduction efforts at our June 9, 2009, investor meeting.

In addition to these savings, we recently announced the consolidation of two of our manufacturing facilities into other existing facilities in the United States. We believe these consolidations will provide a cost savings of approximately $9.0 million on an annual basis. These consolidations will occur during second quarter 2009, and the associated costs during the quarter are expected to be approximately $4.5 million. There are no further consolidations planned.

Q... Why did you amend your credit agreement this quarter, and how did it affect your interest rate?

During the quarter, we amended our credit agreement to reduce the possibility of violating our financial covenants. With the credit amendment in place, we don't believe we will violate our financial covenants in the near or long-term. Accounting for the amendment resulted in a reduction of the carrying value of our long-term debt and a one-time noncash gain recorded in other income of $35.7 million.

The discount recorded against long-term debt will be amortized through interest expense over the remaining term of the loan. As a result, interest expense will increase by approximately $1.4 million per quarter through first quarter 2014.

As a result of the amendment, the weighted average interest rate on our debt increased from 6.4% to 8.0% on March 31, 2009.

Q... How much debt reduction did you make during the quarter?

During the first quarter, we made net debt payments of $7.7 million. The first quarter included several large cash payments, including the annual funding of profit sharing of $13.0 million, semi-annual bond interest of $23.7 million, and fees to amend the credit agreement of $8.3 million. We also paid the first quarter 2009 dividend of $7.9 million in addition to the fourth quarter 2008 dividend. We expect the pace of repayment to accelerate over the balance of the year, funded in part by reductions in receivables and inventories. Due to a greater than originally anticipated sales decline in the first half of the year, we have revised our debt repayment goal to a minimum of $100 million for 2009.

Q... What is your outlook for 2009?

We believe 2009 will continue to be a difficult year, and we anticipate second quarter 2009 to be the most challenging quarter with sales down approximately 15-20%. In the second half of the year, we expect additional benefit from our Bounty Hunt program, introduction of new products, a slower pace of distributor destocking, aggressive cost reductions and plant consolidations.

Q... When is your next public update?

A conference call will be held Thursday, April 30, 2009, at 10:00 a.m. central time. Participants may listen to the discussion through the Company's website at http://www.baldor.com/ or by calling 877-879-6203. A replay will be available through May 7, 2009 and can be accessed by calling 888-203-1112 (passcode 8480771).

The Company will hold its annual Shareholders' Meeting on Saturday, May 2, 2009, in Fort Smith. On May 12, 2009, the Company will meet with institutional investors at the UBS Industrial Conference in Chicago. The Company will host an Investor Meeting at 11:30 a.m. on June 9, 2009, in New York City. For more information on any of these events, please contact Investor Relations.

For more information contact: John McFarland, Chairman and CEO Phone: 479-648-5769 Ron Tucker, President and COO Website: http://www.baldor.com/ Tracy Long, Vice President Investor Relations Email: Investorinfo@baldor.com

(1) Non-GAAP Financial Measures. Baldor reports its financial results in accordance with generally accepted accounting principles ("GAAP"). However, management believes that certain non-GAAP performance measures provide financial statement users meaningful comparisons between current and prior period results, as well as important information regarding performance trends. Certain items discussed in this press release are considered non-GAAP measures. Non-GAAP financial measure should be viewed in addition to, and not as an alternative for, the Company's reported results.

Forward-Looking Statement

This document contains statements that are forward-looking, i.e. not historical facts. The forward-looking statements contained in this document (including "estimate", "believe", "think", "will", "intend", "expect", "may", "could", "plan", "anticipate", "would", "depend", "predict", "can", "if", "assume", "continue", "ongoing" or any grammatical forms of these words or other similar words) are based on the Company's current expectations and some of them are subject to risks and uncertainties. Accordingly, you are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. The factors that might cause such differences include, among others, the following: (i) changes in economic conditions, (ii) developments or new initiatives by our competitors in the markets in which we compete, (iii) fluctuations in the costs of select raw materials, (iv) the success in increasing sales and maintaining or improving the operating margins of the Company, and (v) other factors including those identified in the Company's filings made from time-to-time with the Securities and Exchange Commission. These statements should be read in conjunction with Baldor's most recent annual report (as well as the Company's Form 10-K and other reports filed with the Securities and Exchange Commission) containing a discussion of the Company's business and of various factors that may affect it.

BEZ-G

Photo: http://www.newscom.com/cgi-bin/prnh/20090429/DA07733
http://photoarchive.ap.org/
AP PhotoExpress Network: PRN13
PRN Photo Desk, photodesk@prnewswire.com Baldor Electric Company

CONTACT: John McFarland, Chairman and CEO, or Ron Tucker, President and
COO, or Tracy Long, Vice President Investor Relations, all of Baldor Electric
Company, +1-479-648-5769, Investorinfo@baldor.com

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

Subaye.com Acquires 2,712 Corporate Video Members at China IE Fair (Canton Fair)

FOSHAN, Guangdong, April 29 /PRNewswire-Asia/ -- MyStarU.com, Inc. (OTC Bulletin Board: MYST; Frankfurt Stock Exchange: TQF), announced today that its majority-owned subsidiary, Subaye.com, Inc., the enterprises video web development, hosting, marketing and e-commerce service provider, reports 2,712 companies became Subaye.com's new corporate video and B2B members during the largest fair in China: the Canton Fair (the China Import and Export Fair, http://www.cantonfair.org.cn/en/index.asp ) phase 1 & 2 during April 15th to 28th, 2009 in Guangzhou, China.

Subaye successfully presented Open hyper links of SaaS Enabling B2B Engine and online video exhibitions to SMEs through sales and marketing teams that assisted exhibitors and visitors. The video production team was following up with exhibitors to produce video web pages as a free trial product. The new corporate video B2B users find Subaye's e-commerce strategy useful for search engines such as Google ( http://www.google.com/ ), in order to do their online marketing and promotions. Most of those 2,712 companies respect Subaye for having complemented e-commerce websites and enhancing their performances in the B2B marketplace, the SaaS Enabling B2B Engine software is for SMEs and allows for customizing of their online marketing and sales that goes beyond all other B2B platforms.

About MyStarU.com, Inc.

MyStarU.com, Inc. (MYST) is a Total Solutions Provider that offers Integrated Communications Network Solutions and Internet Content Service in universal voice, video, data web and mobile communications for interactive media applications, technology and content leaders in interactive multimedia communications. It develops, markets and sells a universal media software solution for enterprise-wide deployment of integrated voice, video, data web and mobile communications and media applications. MyStarU.com, Inc. does business in Asia via its wholly-owned subsidiaries, MyStarU Limited ( http://www.mystaru.com/ , http://www.skyestar.com/ , http://www.icurls.com/ ) and majority owned subsidiary Subaye.com, Inc. ( http://www.subaye.com/ , http://www.x381.com/ , http://www.goongreen.org/ ).

Safe Harbor

The statements made in this release constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, changing economic conditions, interest rates trends, continued acceptance of the Company's products in the marketplace, competitive factors and other risks detailed in the Company's periodic report Filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

MyStarU.com, Inc.

CONTACT: Ms. Helen Wang of MyStarU.com, Inc., +86-10-6702-6968, or
IR@MyStarU.com

Web site: http://www.mystaru.com/
http://www.skyestar.com/
http://www.icurls.com/
http://www.subaye.com/
http://www.x381.com/
http://www.goongreen.org/
http://www.cantonfair.org.cn/en/index.asp

/R E P E A T -- CGI to release second quarter fiscal 2009 results on May 6/Stock Market Symbols GIB.A (TSX) GIB (NYSE) www.cgi.com/newsroom

MONTREAL, April 22 /PRNewswire-FirstCall/ -- CGI Group Inc. (TSX: GIB.A; NYSE: GIB) will release results for its second quarter fiscal 2009, ended March 31, 2009, on Wednesday, May 6, 2009 before the markets open. Management will host a conference call and question-and-answer session to discuss earnings at 9:00 a.m. (EDT). Participants will include Michael E. Roach, President and Chief Executive Officer, as well as David Anderson, Executive Vice-President and Chief Financial Officer.

Who: CGI Group Inc. What: Second Quarter Fiscal 2009 Results When: Wednesday, May 6, 2009 at 9:00 a.m. (EDT) Conference Call: 1-866-223-7781 Webcast: A live webcast of the quarterly results conference call may be accessed through the Company's website http://www.cgi.com/investors where a replay will also be archived. Listeners should allow ample time to access the webcast. As well, reference slides will be available for download shortly before the beginning of the call. Podcast: An MP3 version will be available for download later in the day. RSS Feed: Subscribe via our site to receive the latest news releases and podcasts: http://www.cgi.com/web/en/media_room/rss_podcast_feeds.htm. About CGI

Founded in 1976, CGI Group Inc. is one of the largest independent information technology and business process services firms in the world. CGI and its affiliated companies employ approximately 25,000 professionals. CGI provides end-to-end IT and business process services to clients worldwide from offices in Canada, the United States, Europe, Asia Pacific as well as from centers of excellence in North America, Europe and India. CGI's annual revenue run rate stands at $4.0 billion and at December 31, 2008, CGI's order backlog was $11.4 billion. CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the S&P/TSX Composite Index as well as the S&P/TSX Capped Information Technology and MidCap Indices. Website: http://www.cgi.com/.

CGI GROUP INC.

CONTACT: Colin Brown, Specialist, Communications and Investor Relations,
(514) 841-3634, colin.brown@cgi.com

Sonic Foundry Announces Winners of Fifth Annual Rich Media Impact Awards

MADISON, Wis., April 29 /PRNewswire-FirstCall/ -- Sonic Foundry, Inc. , the recognized market leader for rich media webcasting and knowledge management, today announced the winners of the fifth annual Rich Media Impact Awards at a special awards dinner during UNLEASH 2009, the third annual Mediasite conference. New this year are two awards that recognize prolific use of webcasting and enhanced student experience through rich media.

The RMIA were launched in 2005 to showcase excellence in the practical and creative integration of the Mediasite webcasting platform in education, business, health and government. The awards honor organizations that have demonstrated measurable improvements in accessibility, cost savings, efficiency and productivity.

"With the RMIA we give special recognition to the successes of our customers who have pushed the boundaries of rich media with work that demonstrates creativity, innovation, cost savings and excellence across diverse organizations," said Rob Lipps, executive vice president of Sonic Foundry. "We look forward to supporting these achievements and sharing with them in their commitment to bridge time and distance and share knowledge not only throughout their organizations, but around the world."

An on-demand webcast catalog of finalist presentations, as well as honorable mention submissions and honorees from past years, is available at http://www.sonicfoundry.com/finalists2009. Winners were announced at a special awards dinner Tuesday, April 28 in Madison, Wisconsin during UNLEASH 2009, the company's third annual Mediasite User Conference (http://www.sonicfoundry.com/unleash2009). An on-demand webcast the awards ceremony is available at http://www.sonicfoundry.com/awards.

2009 Rich Media Impact Award Winners

NEW Prolific Use Award: recognizes an organization that has dramatically scaled its rich media program to achieve a broad deployment across its enterprise or record number of presentations, views or audiences. The 2009 winner is Fox School of Business at Temple University, which uses Mediasite to power its TUCAPTURE initiative. Used by every Fox undergraduate program, every Fox academic department and expected at every TU campus and overseas, TUCAPTURE records more than 300 hours of online lectures per day.

NEW Student Impact Award: recognizes an individual student, as well as his/her college or university, whose educational experience has been enhanced through rich media. The 2009 winner is Jenna Lombardo, a student at Northwestern University Prosthetics-Orthotics Center. According to Jenna, Mediasite has improved her educational experience by providing unique online learning opportunities and the opportunity for time-shifting that is not possible in a traditional classroom setting.

Enterprise Award: recognizes an organization who improved its business outcomes through rich media communication. The 2009 winner is Russell Investments, a global investment company that uses Mediasite to share knowledge inside the organization. To efficiently deliver messages from experts to its workforce, Russell creates webcasts that combine a question and answer format with multiple cameras and live switching. The result is both engaging and informative to the end user.

Excellence in Education Award: recognizes a higher education institution that enhanced learning and outreach through rich media. The 2009 winner is Penn State Milton S. Hershey Medical Center, which operates a robust campus-wide educational environment with Mediasite as its core component. Used by all departments for academic, clinical, outreach and in-service education, Mediasite has changed the educational landscape of the campus. As testament to this claim, the Institution has built a library of over 3,700 presentations, and recently achieved the mark of 101,000 total Mediasite views per year.

Facility Design Award: recognizes a Mediasite customer and/or professional AV design or consulting firm that created innovative rich media rooms and facilities. The 2009 winner is Ashland University Instructional Technology Support Group. The University has doubled the amount of online presentations it creates each year. IT's answer to streamlining the process was to create a technology enhanced observation classroom, with full Mediasite RL recorder integration, permanent mic installation, auto camera tracking of presenters, and SMART board functionality recording into Mediasite.

Global Reach Award: recognizes any successful initiative that connected the international community through rich media. The 2009 winner is Florida State University GEOSET. The Global Educational Outreach (GEO) initiative uses new technology to provide outstanding Science, Engineering and Technology (SET) teaching material. GEOSET aims to create a global network of participating sites who deliver valuable downloadable teaching material created by the best science and technology experts and educators via Mediasite.

Government Award: recognizes a local, state or federal government initiative that implemented rich media for training and outreach. The 2009 winner is The Center for Rural Development. During an initiative to bring live Abraham Lincoln's 200th birthday celebration presentations to students in southern and eastern Kentucky, heavy snow and frigid temperatures closed schools and postponed scheduled performances. The Center used Mediasite to record Lincoln presenters and stream to schools across the region.

Healthcare Award: recognizes an organization that implemented rich media to benefit health and wellness. The 2009 winner is Ontario Hospital Association. OHA is a provincial non-profit organization that serves 159 member hospitals across the province of Ontario. OHA uses Mediasite to foster communication and professional development with all hospitals across the province.

Rapid ROI Award: recognizes an organization that used rich media to quickly achieve a measurable ROI in its training, communications or outreach initiatives. The 2009 winner is The Schallert Group. The group's business training and Destination University curriculum reaches small business owners in over 100 cities in the United States, reducing their experts need to travel by over a third.

Scholastic Achievement Award: recognizes a school district or other organization serving the K-12 educational community that harnessed the power of rich media to improve communication, learning and outreach. The 2009 winner is Memphis City Schools, which uses Mediasite to train its employees and provide timely support and communication to parents and community members.

Finalists will also be showcased on the Sonic Foundry website and in advertising in the June/July issue of Streaming Media Magazine as well as other publications throughout the year.

Since its introduction in 2003, Sonic Foundry's Mediasite has set the standard as a transformational communication medium for delivering critical information and sharing knowledge. The patented Mediasite webcasting and content management system quickly and cost-effectively automates the capture, management, delivery and search of rich media presentations that combine audio, video and accompanying graphics for live or on-demand viewing.

For the complete list of past RMIA winners visit http://www.sonicfoundry.com/resources/impact-awards/past-winners/.

About Sonic Foundry(R), Inc.

Sonic Foundry is the global leader for rich media webcasting and knowledge management, providing enterprise communication solutions for more than 1,500 customers in education, business and government. Powered by Mediasite, the patented webcasting platform which automates the capture, management, delivery and search of lectures, online training and briefings, Sonic Foundry empowers people to transform the way they communicate. Through the Mediasite platform and its Events Services group, the company helps customers connect a dynamic, evolving world of shared knowledge and envisions a future where learners and workers around the globe use webcasting to bridge time and distance, accelerate research and improve performance.

Product and service names mentioned herein are the trademarks of Sonic Foundry, Inc. or their respective owners.

Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to continued market acceptance for Sonic Foundry's products, its ability to succeed in capturing significant revenues from media services and/or systems, the effect of new competitors in its market, integration of acquired business and other risk factors identified from time to time in its filings with the Securities and Exchange Commission.

Sonic Foundry, Inc.

CONTACT: Tammy Kramer of Sonic Foundry, Inc., +1-608-237-8592,
tammyk@sonicfoundry.com

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

ASUS Licenses On2 VP7 Video Codec for Skype VideophonesAgreement builds on success of Eee Videophone, world's first Skype Certified Standalone Videophone

CLIFTON PARK, N.Y. and TAIPAI, Taiwan, April 29 /PRNewswire-FirstCall/ -- On2 Technologies (NYSE Amex: ONT) announced today that ASUS, a leading provider of digital home solutions and Internet devices, has licensed the On2(R) VP7(TM) video format & encoder/decoder software SDK to develop Skype-enabled videophones.

On2 VP7 is the video format used in Skype, which millions of people use every day to communicate with others around the world. Skype calls with video are gaining in popularity and account for over 25% of all Skype calls.

Under the agreement, ASUS has a multi-year license to develop and market Skype phones featuring On2 VP7 video, including the Eee Videophone AiGuru SV1. The Eee Videophone was an earlier collaboration of the two companies and was the first videophone to be Skype Certified.

ASUS videophones enable people to make and receive free voice and video calls to any Skype user without requiring a computer. Its simple-to-use, icon-based interface and intuitive button layout take the complexity out of Internet calling -- making it easy for anyone to make and receive Skype-to-Skype video and voice calls. Users can even join voice conferences, making the Eee Videophone an inexpensive, all-in-one voice and video conferencing solution for small businesses. Furthermore, the Eee Videophone also allows users to make and receive calls to and from fixed and mobile lines at very low rates.

"In the past six months we've shown the Eee Videophone with VP7 video at trade shows & other meetings around the world," said Matt Frost, interim CEO and COO at On2 Technologies. "People everywhere simply love this device. They are captivated by its ease of use and video quality. ASUS did a remarkable job integrating VP7 into the Eee Videophone and we look forward to seeing more Skype-enabled devices from them in the future."

"Video quality and smooth streaming are central to the appeal of the Eee Videophone. On2 VP7 enables us to deliver a product that creates a rich experience for Skype users," said Ellis Wang, Deputy Director, EPC Business Unit, Portable Media Box Product Planning & Management Department at ASUS. "We expect a growing market for dedicated video-calling devices, and On2 provides us with a robust codec platform on which to build devices that consumers want for reliable video communication."

About On2 Technologies

On2 (NYSE Amex: ONT) creates advanced video compression technologies that power the video in today's leading desktop and mobile applications and devices. On2 customers include Adobe, Skype, Nokia, Infineon, Sun Microsystems, Mediatek, Sony, Brightcove, and Move Networks. On2 Technologies is headquartered in Clifton Park, NY USA. For more information visit http://www.on2.com/.

About ASUS

ASUS is a leading company in the new digital era. With a global staff of more than eight thousand and a world-class R&D design team, the company's revenue in 2007 was 6.9 billion U.S. dollars. ASUS ranks among the top 10 IT companies in BusinessWeek's "InfoTech 100," and has been on the listing for 11 consecutive years.

Trademarks mentioned in this release are the property of their respective owners.

On2 Technologies

CONTACT: On2 Technologies, Inc., Chris Pfaff, +1-973-509-6565,
chris@chrispfafftechmedia.com; or ASUSTeK Computer Inc., Joy Lee,
+886-2-2898-7352, joy_lee@asus.com.tw

Web Site: http://www.on2.com/

Lockheed Martin Airborne Laser Technologist Receives Missile Defense Agency Team Award

SUNNYVALE, Calif., April 29 /PRNewswire/ -- Lockheed Martin's Paul Shattuck, Airborne Laser (ABL) Beam Control/Fire Control chief engineer and technical director, and five of his government and industry ABL teammates have received a U.S. Missile Defense Agency Technology Pioneer Award.

The award recognizes the team for achieving a host of technology breakthroughs that have culminated in a fully integrated system with the advantages of speed-of-light destruction of ballistic missile threats from a highly mobile platform. The Missile Defense Agency presented the award March 23 during the American Institute of Aeronautics and Astronautics 7th Annual U.S. Missile Defense Conference in Washington, D.C.

Shattuck was honored for his role in developing, integrating, testing and demonstrating the Lockheed Martin-developed Beam Control/Fire Control System, which focuses and directs ABL's High Energy Laser. Also receiving the award were:

-- Dr. Steven Lamberson, chief scientist, ABL Program Office, U.S. Missile Defense Agency -- Donald Clapp, chief engineer and mission assurance manager, The Boeing Company -- David Morris, chief scientist / system performance manager, Boeing -- Dr. Harold Schall, chief engineer for integration and test, and senior technical fellow, Boeing -- Jeffrey Hartlove, ABL deputy program manager, Northrop Grumman Corp.

"We are proud to be part of the ABL program and very proud to see Paul and his colleagues receive this recognition on behalf of the entire ABL government-industry team," said Doug Graham, vice president of advanced programs, Lockheed Martin Space Systems Company. "This is an exciting time for this revolutionary program as we approach our ballistic missile shoot-down demonstration later this year."

Shattuck has provided the technical leadership and commitment required to design and produce a sophisticated system robust enough to aim the megawatt-class beam generated by the High Energy Laser.

The Beam Control/Fire Control system successfully focused and directed ABL's High Energy Laser beam in ground tests last year aboard ABL's modified Boeing 747-400F aircraft at Edwards Air Force Base, Calif. The team now is preparing for flight testing of the entire, integrated ABL system that will culminate in an airborne intercept test against an unarmed ballistic missile later this year.

ABL is designed to destroy a ballistic missile during its boost phase, while it is still accelerating in the Earth's atmosphere and before it can deploy its warheads. The Missile Defense Agency manages the ABL program, which is executed by the U.S. Air Force from Kirtland Air Force Base, Albuquerque, N.M. The Boeing Company provides the modified aircraft and the Battle Management System and is the overall systems integrator. Boeing's ABL industry partners are Northrop Grumman , which supplies the High Energy Laser and the Beacon Illuminator Laser, and Lockheed Martin Space Systems Company, Sunnyvale, Calif., which provides the Beam Control/Fire Control System, including the nose-mounted turret.

Lockheed Martin is a world leader in systems integration and the development of air and missile defense systems and technologies, including the first operational hit-to-kill missile. The company makes significant contributions to most major U.S. missile defense systems and participates in several global missile defense partnerships.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 146,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2008 sales of $42.7 billion.

Media Contact: Lynn Fisher, 408-742-7606; e-mail lynn.m.fisher@lmco.com Approved for Public Release 09-MDA-4433 (3 APR 09)

Lockheed Martin

CONTACT: Lynn Fisher of Lockheed Martin, +1-408-742-7606,
lynn.m.fisher@lmco.com

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

New SoLo app Rockets to Victory: Nokia N97 Widget Competition Winner Announced

MONTE CARLO, Monaco, April 29 /PRNewswire-FirstCall/ -- David Emmanuel Castro Guerrero from Mexico and Plusmo from the United States were today named one of the hottest software designers and developers in the world having beaten strong competition to win the Nokia N97 Widget Competition. Created to celebrate the much anticipated launch of the Nokia N97, Guerrero's winning application, was Rocket, a social location widget (SoLo) which shows the nearest three friends in any given place was built on-site by the application developer.

Guerrero's victory was announced after a 24-hour Nokia Hackathon event where an elite group of world-class developers raced to build the shortlisted apps live and against the clock. The contest held in association with Forum Nokia's Calling All Innovators competition took place between 28-29 April in Monaco at the Nokia Developer Summit.

Not only does Guerrero win a brand new Nokia N97 pre-loaded with his widget on the home screen, the application will also have prime status on the homepage of the new Ovi Store, which launches soon, and will be free to download for Nokia N97 owners in all Ovi Store launch countries. These include Australia, Germany, Italy, Ireland, Russia, Singapore, Spain, United Kingdom and the United States.

The Nokia N97, which will begin shipping in June, defines mobile internet personalization. The 3.5 inch touch display with full QWERTY keyboard means friends, social networks and news can be fully customized with frequently updated widgets of favorite web services and social networking sites.

The competition's runners up - Marco Lobb from Italy, who designed the widget, Shoppy, a shopping list application and built on-site by Inova IT from Slovenia and Bruce Hopkins, who designed Travel Planner and built by PavingWays from Germany, will also be featured on the homepage of store.ovi.mobi.

"It's mind-blowing to think that my application could potentially be used by millions of people on their Nokia handsets," commented David Emmanuel Castro Guerrero. "It's been such a great experience to watch these masters at work and see how an app is build from start to finish."

"We received over 1,300 submissions, many of which were exceptional. Pitting the best Forum Nokia developers in the business against each other and watching the apps being built in front of summit delegates was so exciting," said Pekka Pohjakallio, Vice President, Services. "By distributing through Ovi Store by Nokia, developers benefit from Nokia's global scale to provide a potentially lucrative and unrivalled opportunity at reaching a global audience of consumers."

To view all of the submissions and for more information visit http://www.forum.nokia.com/

Notes to editors: The full list of the ten shortlisted widgets and designers is: - David Emmanuel Castro Guerrero (Mexico) - Social Location Widget - Marco Lobb (Italy) - Shopping List Widget - Bruce Hopkins (USA) - Travel Planner - Eric Liu (Canada) - Location Based Sightseeing/Events - Andrew Clarke (UK) - Price Comparison Widget - Gabriel Hall (Canada) - The World Around Me - Daniel Kleine-Albers (Germany) - Location Based Public Transport - Porfirio Busto BenAtez (Paraguay) - Now On TV! - Dmytriy Kovbasyuk (Canada) - Fuel-Up! - Tuba Tig (Turkey) - What Is Your Favourite Food? About Calling All Innovators

A global developer competition that challenges developers to create applications that will help to better society. There are three categories developers can participate in:

- Internet Innovation - Encouraging web developers to transform consumer-focused ideas into real applications on Nokia devices - Flash - Expanding the capabilities and user benefits of Flash Lite on Nokia S60 devices - Emerging Markets - Urging developers to create innovative applications across mobile technology platforms that meet the needs and improve the daily lives of millions living in rural and semi-urban areas worldwide

The total cash and prizes for the 2009 Calling All Innovators contest are worth more than $250,000, in addition to helping the winning developers distribute their mobile applications.

About Forum Nokia

Nokia's global developer program, Forum Nokia connects developers to tools, technical information, support, and distribution channels they can use to build and market applications around the globe. From offices in the U.S., Europe, India, Japan, China, and Singapore, Forum Nokia provides technical and business development support to developers and operators to assist them in achieving their goal of successfully launching applications and services to consumers and enterprises.

About Nokia

Nokia is the world's number one manufacturer of mobile devices by market share and a leader in the converging Internet and communications industries. We make a wide range of devices for all major consumer segments and offer Internet services that enable people to experience music, maps, media, messaging and games. We also provide comprehensive digital map information through NAVTEQ and equipment, solutions and services for communications networks through Nokia Siemens Networks.

http://www.nokia.com/

Nokia Corporation

CONTACT: Media Enquiries: Nokia, Communications, Tel. +358-7180-34900,
E-mail: press.services@nokia.com

Webcast Alert: Industrias Romi S/A Announces First Quarter 2009 Results Conference Call Webcast

SANTA BARBARA D'OESTE, Brazil, April 29 /PRNewswire-FirstCall/ -- Industrias Romi S/A (Bovespa: ROMI3) announces the following webcast:

What: Industrias Romi S/A First Quarter 2009 Results Conference Call When: Thursday, April 30, 2009 at 11:30 AM ET Where: http://www.prnewswireweb.com.br/player/?id=400

How: Live over the Internet -- Simply log on to the web at the address above.

Conference call dial-in phone numbers: From the U.S.: 1-800-860-2442; From Brazil: 11 4688-6301; From other countries: 1-412-858-4600. Access code: romi

For further information, click on the link below to open Industrias Romi's conference call invitation:

http://romi.infoinvest.com.br/ptb/703/c-703-ptb.html

Contact: Luiz Cassiano Rosolen from Industrias Romi S/A, +55 (19) 3455-9004, or e-mail, lrosolen@romi.com.br

If you are unable to participate during the live webcast, the call will be archived at http://www.romi.com.br. To access the replay, click on the Investor Relations section.

Audio: http://www.prnewswireweb.com.br/player/?id=400 Industrias Romi S/A

CONTACT: Luiz Cassiano Rosolen of Industrias Romi,
+011-55-19-3455-9004, lrosolen@romi.com.br

Web site: http://www.romi.com.br/

ABC Bank in Brazil Selects IBM for Green Data Center Solution

SAO PAULO, April 29 /PRNewswire-FirstCall/ -- IBM today announced that the ABC Brazil Bank has signed an agreement with IBM in Brazil to implement a scalable modular datacenter, following Information Infrastructure best practices.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090416/IBMLOGO )

In addition to occupying less space, the solution's objective is to increase energy efficiency. The solution will also deliver high availability of the information technology (IT) environment higher employee productivity and easy access to customers' data and information.

The initiative combines the capital and operational costs with the bank's IT requirements, allowing the directors to focus more on their business plan. The agreement includes 36 months of IBM online maintenance and support, storage and IBM Blade Center servers, as well as virtualization technology.

The agreement was signed in the first quarter of 2009. About IBM For further information about IBM, please visit http://www.ibm.com/ Media Contact: Vanessa Garcia, IBM Brasil vaneg@br.ibm.com 55 11 2132-7759 Aliza Fischer, IBM US afische@us.ibm.com 917-472-3721

Photo: http://www.newscom.com/cgi-bin/prnh/20090416/IBMLOGO
http://photoarchive.ap.org/ IBM

CONTACT: Vanessa Garcia, IBM Brasil, +55-11-2132-7759, vaneg@br.ibm.com,
or Aliza Fischer, IBM US, +1-917-472-3721, afische@us.ibm.com

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

Nevada and Tennessee Approve Merger of CenturyTel and EMBARQMerger on Track to Close in the Second Quarter

MONROE, La. and OVERLAND PARK, Kan., April 29 /PRNewswire-FirstCall/ -- CenturyTel, Inc. and EMBARQ today announced that CenturyTel's pending acquisition of EMBARQ has received approval from the Public Utilities Commission of Nevada and the Tennessee Regulatory Authority. Only five of the 33 states in which the two companies operate are still in the process of approving the merger.

"We are pleased to have received state approvals for our merger from Nevada and Tennessee, and are looking forward to securing the remaining approvals needed to close the transaction," said Glen F. Post III, CenturyTel's chairman and chief executive officer. "This merger will benefit customers and promote investment, and we appreciate the support of the commissions who have granted their approval."

"These state regulatory approvals are important milestones toward a successful closing, and we remain on track to close the merger in the second quarter of 2009," said Tom Gerke, EMBARQ's chief executive officer. "These approvals move us closer to providing the many customer benefits this transaction presents. We look forward to serving our customers and communities as a combined company."

In addition to the state regulatory approvals, CenturyTel and EMBARQ have already received the approvals of their respective shareholders, who overwhelmingly approved all proposals related to the merger on Jan. 27, 2009. On Nov. 24, 2008, the companies received early termination of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Combined, CenturyTel and EMBARQ will have approximately 7.7 million access lines, more than two million broadband customers and more than 400,000 video subscribers, based on data as of Dec. 31, 2008.

About CenturyTel

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

About EMBARQ

Embarq Corporation , headquartered in Overland Park, Kansas, offers a complete suite of communications services. EMBARQ has operations in 18 states and is in the Fortune 500(R) list of America's largest corporations. For consumers, EMBARQ offers an innovative portfolio of services that includes reliable local and long distance home phone service, high-speed Internet, wireless, and satellite TV from DISH Network(R) -- all on one monthly bill. For businesses, EMBARQ has a comprehensive range of flexible and integrated services designed to help businesses of all sizes be more productive and communicate with their customers. This service portfolio includes local voice and data services, long distance, Business Class High Speed Internet, wireless, satellite TV from DIRECTV(R), enhanced data network services, voice and data communication equipment and managed network services. For more information, visit embarq.com.

Forward Looking Statements

Except for the historical and factual information contained herein, the matters set forth in this press release, including statements as to the expected benefits of the acquisition such as efficiencies, cost savings, enhanced revenues, growth potential, market profile and financial strength, and the competitive ability and position of the combined company, and other statements identified by words such as "estimates," "expects," "projects," "plans," and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including receipt of required approvals by regulatory agencies, the possibility that the anticipated benefits from the acquisition cannot be fully realized or may take longer to realize than expected, the possibility that costs or difficulties related to the integration of EMBARQ operations into CenturyTel will be greater than expected, the ability of the combined company to retain and hire key personnel, the impact of regulatory, competitive and technological changes and other risk factors relating to our industry as detailed from time to time in each of CenturyTel's and EMBARQ's reports filed with the Securities and Exchange Commission (SEC). There can be no assurance regarding the timing of the consummation of the merger or that the proposed acquisition will in fact be consummated. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. Unless legally required, CenturyTel and EMBARQ undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

CenturyTel, Inc.

CONTACT: Analysts & Investors, Tony Davis, +1-318-388-9525,
tony.davis@centurytel.com, or Media, Annmarie Sartor, +1-318-388-9671,
annmarie.sartor@centurytel.com, both of CenturyTel; or Analysts & Investors,
Trevor Erxleben, 1-866-591-1964, investorrelations@embarq.com, or Media, Debra
Peterson, +1-913-323-4881, Debra.D.Peterson@embarq.com, both of EMBARQ

Web Site: http://www.centurytel.com/
http://www.embarq.com/

Microsoft Showcases the Today and Tomorrow of Datacenter, Client and Cloud ManagementCompany demonstrates management solutions for virtualized environments, Windows 7, and upcoming online service for business desktop management.

LAS VEGAS, April 29 /PRNewswire-FirstCall/ -- This week at the 10th annual Microsoft Management Summit 2009 (http://www.mms-2009.com/default.aspx), Microsoft Corp. showcased solutions for managing the complexity of today's diverse IT environments, which include highly virtualized systems, a mix of software and online services, cloud-based computing, and an explosion of mobile devices. As part of the conference keynote addresses, Microsoft executives announced and demonstrated currently shipping solutions, and future capabilities, that help dramatically reduce IT costs by making IT infrastructures more manageable, and help increase the productivity of IT staff.

(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO)

"In today's environment, IT is faced with a growing set of end-user demands and business-critical expectations around service availability," said Brad Anderson, general manager of the Management and Services Division at Microsoft. "Customers want familiar tools that provide a complete view of service levels, applications, infrastructure and clients. Microsoft empowers customers and partners today with an integrated suite of products and technologies, and we're investing today for future innovations so customers can accomplish great things."

In yesterday's keynote address Bob Kelly, corporate vice president of Infrastructure Server Marketing at Microsoft, announced expanded cloud computing initiatives, and invited customers and partners to create, deploy and manage the foundation for highly scalable, cloud-based solutions using Microsoft's familiar tools, products and online services. Microsoft discussed the opportunities that private and public cloud computing environments provide organizations to streamline costs in the datacenter and accelerate business solutions. Those who want more information can read the article about Kelly (http://www.microsoft.com/presspass/features/2009/Apr09/04-28CloudComputingBen efits.mspx) and watch his keynote address (http://www.microsoft.com/presspass/presskits/infrastructure/Default.aspx)

During today's keynote address, Anderson shared progress on Microsoft's user-centric client management strategy. The strategy focuses on empowering end users, and enabling IT professionals to orchestrate the delivery of business services to an expanded portfolio of devices and access scenarios. Anderson demonstrated how products such as Windows 7, the virtualization technologies in Microsoft Desktop Optimization Pack (MDOP), and Microsoft System Center management suite provide customers with the foundation for user-centric client management.

-- Anderson demonstrated how Microsoft System Center can help make Windows 7 deployments and life-cycle management cost-effective and efficient. Customers can use System Center to automatically discover and assess hardware and software readiness migration and compatibility, and help make more informed deployment decisions. These deployment decisions become easier when System Center Configuration Manager 2007 Service Pack 2 is used to deploy Windows 7. This service pack supports Windows technologies to help efficiently migrate user data on a system, reduce the deployment time of Windows and both virtual and physical applications, and update clients fast and easily. System Center Configuration Manager 2007 Service Pack 2 is scheduled to be available for beta testing within 90 days. -- Anderson announced that the next version of MDOP will be available within 90 days of the general availability of Windows 7. Customers will be able to deploy all MDOP components into production, except for Microsoft Enterprise Desktop Virtualization, which will be available for beta testing. -- Anderson demonstrated Microsoft System Center Service Manager, a platform for integrating and automating processes, IT activities and knowledge across the System Center suite. System Center Service Manager includes IT service management capabilities such as incident, problem, asset and change management processes, a self-service portal, reporting, and a configuration management database. A community technology preview of System Center Service Manager will be available in 60 days, and a public beta will be available in the second half of 2009. -- Anderson announced the development of System Center Online Desktop Manager, an integrated security and management tool that provides desktop management capabilities in the form of an online service. System Center Online Desktop Manager will help enable IT professionals to keep their businesses highly secure and up to date using a Web-based subscription service to monitor, troubleshoot, update and configure desktops. These online services will complement Microsoft's traditional management and security solutions. System Center Online Desktop Manager will be available to a private group of testers within 60 days, and available for public beta testing by the end of 2009.

As today's news demonstrates, organizations want tools to help create more dynamic desktop infrastructure, which offers greater control and end-user uptime, and accelerates software deployment and management. One example is Cox Communications Inc., the third-largest cable company in the United States. The company uses Microsoft Application Virtualization (App-V) to stream applications to users on demand to 27,500 computers. Cox Communications has created a user-centric desktop environment in which employees have the applications they need, when and where they need them, online or offline. Cox has reduced its desktop management work by hundreds of hours annually, reduced application testing and enhanced desktop security by better tracking of software updates.

"Using Microsoft App-V, we can dynamically stream applications to employees, no matter which computer they are using," said Chip Gandy, senior systems administrator at Cox Communications. "There's huge benefit in being able to move call-center personnel from one desk to another. If their computer fails for some reason, they simply move to another computer, and all their applications and even their phone number moves with them. There is no loss of productivity."

Microsoft Management Summit 2009 (http://www.mms-2009.com/) is the premier event of the year for IT professionals seeking deep technical information and training on the latest IT management solutions from Microsoft, partners and industry experts. This year's platinum sponsors are Dell Inc. and HP, and gold sponsors are 1E, Adaptiva, BridgeWays, Computer Associates Inc., Citrix Systems Inc., Intel Corporation, Novell Inc. and Quest Software Inc.

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

Photo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk photodesk@prnewswire.com Microsoft Corp.

CONTACT: Rapid Response Team of Waggener Edstrom Worldwide,
+1-503-443-7070, rrt@waggeneredstrom.com, for Microsoft

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

Logility Recognized as a Top Logistics IT Provider for the 12th Consecutive YearInbound Logistics names Logility to its annual listing of companies that support and enable logistics excellence

ATLANTA, April 29 /PRNewswire/ -- Logility, Inc. , a leading supplier of collaborative solutions to optimize the supply chain, announced today that Logility has been named an Inbound Logistics Top 100 Logistics IT Provider for 2009. This is the 12th consecutive year that Logility has received this prestigious recognition for enabling logistics excellence.

"Solutions providers such as Logility empower logistics and supply chain management, continuing to offer innovative and practical solutions in the face of demand volatility," said Felecia Stratton, editor, Inbound Logistics. "2009 continues to be a year where every opportunity and efficiency must be seized and Logility consistently provides the kinds of technology solutions business logistics managers need to successfully manage their global enterprises."

For over the past decade, Inbound Logistics editors recognize 100 logistics IT companies that support and enable logistics excellence. Drawn from a pool of more than 500 companies, using questionnaires, personal interviews, and other research, Inbound Logistics selects the Top 100 Logistics IT Providers for leading the way in 2009. All companies selected for the Top 100 reflect leadership by answering Inbound Logistics readers' needs for simplicity, ROI, and efficient implementation.

"It is an honor to be recognized again by Inbound Logistics for enabling our customers' logistics excellence for the past 12 years," said Mike Edenfield, president and CEO, Logility. "Building a more effective and cost efficient supply chain has never been more important and Logility Voyager Solutions(TM) help our customers achieve success by optimizing their supply chain to increase customer service levels while reducing costs."

Recognized industry-wide for quick implementation and ROI as well as ease-of-use, Logility Voyager Solutions is a complete supply chain management solution featuring performance monitoring capabilities that increases supply chain visibility and performance in key areas including demand, inventory and replenishment planning, sales and operations planning (S&OP), manufacturing planning and scheduling, transportation planning and management and warehouse management. Logility Voyager Transportation Planning and Management(TM) is a multi-modal solution that automates and optimizes shipment planning, shipment execution and freight accounting and enables manufacturers, retailers, distributors and 3PLs to manage carrier relationships to reduce costs, improve service and increase end-customer satisfaction. For more information, visit http://www.logility.com/.

About Inbound Logistics

Inbound Logistics is the pioneering publication of demand-driven logistics practices, also known as supply chain management. IL's educational mission is to guide businesses to efficiently manage logistics, reduce and speed inventory, and neutralize transportation cost increases by aligning supply to demand and adjusting enterprise functions to support that paradigm shift. More information about demand-driven logistics practices is available at http://www.inboundlogistics.com/

About Logility

With more than 1,250 customers worldwide, Logility is a leading provider of collaborative, best-of-breed supply chain solutions that help small, medium, large and Fortune 1000 companies realize substantial bottom-line results in record time. Logility Voyager Solutions is a complete supply chain management solution that features performance monitoring capabilities in a single Internet-based framework and provides supply chain visibility; demand, inventory and replenishment planning; Sales and Operations Planning (S&OP); inventory and supply optimization; manufacturing planning and scheduling; transportation planning and management; and warehouse management. Logility customers include McCain Foods, Pernod Ricard, Sigma Aldrich, and VF Corporation. Logility is a majority owned subsidiary of American Software . For more information about Logility, call 1-800-762-5207 or visit http://www.logility.com/.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to substantial risks and uncertainties. There are a number of factors that could cause actual results to differ materially from those anticipated by statements made herein. These factors include, but are not limited to, changes in general economic conditions, technology and the market for the Company's products and services including economic conditions within the e-commerce markets; the timely availability and market acceptance of these products and services; the effect of competitive products and pricing; the uncertainty of the viability and effectiveness of strategic alliances; and the irregular pattern of the Company's revenues. For further information about risks the Company could experience as well as other information, please refer to the Company's Form 10-K for the year ended April 30, 2008 and other reports and documents subsequently filed with the Securities and Exchange Commission. For more information about risks the Company could face as well as other information, contact Vincent C. Klinges, Chief Financial Officer, Logility, Inc., 470 East Paces Ferry Rd., Atlanta, GA 30305, (404) 261-9777. FAX: (404) 264-5206 INTERNET: http://www.logility.com/ or E-mail: asklogility@logility.com.

All trademarks are properties of their respective owners.

Logility, Inc.

CONTACT: Michelle Duke of Logility, Inc., +1-404-264-5485,
mduke@logility.com

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

SMIC Reports 2009 First Quarter ResultsAll currency figures stated in this report are in US Dollars unless stated otherwise. The financial statement amounts in this report are determined in accordance with US GAAP.

SHANGHAI, April 29 /PRNewswire-Asia/ -- Semiconductor Manufacturing International Corporation ("SMIC" or the "Company"), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended March 31, 2009.

First Quarter 2009 Highlights: -- Overall revenue decreased to $146.5 million in 1Q09, down by 46.2% QoQ from 4Q08 due to a 47.8% decrease in wafer shipments. -- Gross margin was -88.3% in 1Q09 compared to -27.4% in 4Q08 due to a significant decline in wafer shipment and fab utilization. -- The Company recorded a net loss of $178.4 million in 1Q09, compared to a net loss of $139.5 million in 4Q08. -- Despite a sharp reduction in fab utilization, the Company generated $78 million of net cash from operating activities in 1Q09. -- The Company has lined up new credit facilities totalling approximately $240 million. -- Simplified ASP increased to $869 in 1Q09, up 3.1% QoQ from $843 in 4Q08 and up 8.9% YoY from $798 in 1Q08. Second Quarter 2009 Guidance:

The following statements are forward looking statements which are based on current expectation and which involve risks and uncertainties, some of which are set forth under "Safe Harbor Statements" below.

-- Revenue is expected to increase 58% to 62%. -- Operating expenses excluding foreign exchange difference are expected to range from $79 million to $83 million. -- Capital expenditures are expected to range from $38 million to $43 million. -- Depreciation and amortization are expected to range from $203 million to $206 million

Commenting on the quarterly results, Dr. Richard Chang, Chief Executive Officer of SMIC, remarked, "In the first quarter our revenue exceeded our previous guidance by 7.5%, and our quarterly ASP increased 8.9% year-over-year. Among the total wafer revenue, logic products contributed 96.9%. We also witnessed significant month-over-month increases on wafer orders and fab movements since Chinese New Year. The strong order recovery was driven in part by the replenishment of depleted inventory and also from increased demand in Chinese domestic consumption on wireless LAN, mobile phones, digital displays and other consumer electronics. Global customers continue to utilize SMIC's strategic position to capture the China market, which has experienced faster recovery since the beginning of this year due to various domestic stimulus programs sponsored by the Chinese government. We expect our second quarter 2009 utilization rate to double compared to the first quarter.

From the advanced technology front, our 45nm low-power technology qualification progress is on-track and has shown qualification chip yield improvement. We completed licensed technology transfer from IBM on high-performance bulk-CMOS technology last quarter and process qualification is in progress in our Shanghai 300mm facility. Numerous customers are engaged in our lead-customer partnership and design-in activities, in parallel with SMIC's silicon verification with IBM's proven 45nm technologies. Furthermore, 65nm customer low-power product qualification is in its final stage. We are positioned to move into volume production in the third quarter of 2009.

In the first quarter, we have received strong orders reflecting recovering demand from 90nm and 130nm technology nodes. Furthermore, we see promising new tape-out activities in the first quarter, averaging more than one tape-out per day. We continue to forge more strategic alliances to better serve our customers; such as with Dolphin Integration for its ultra-low power digital-to-analog audio converters for the Portable Media Player market, and with FlipChip International for next-generation 300mm flip chip bumping and wafer level packaging. We remain committed to collaborating with global partners to enhance our product portfolio and service scope.

In the first quarter of 2009, we generated $78 million net cash from operating activities despite the challenging market conditions. In March 2009, we signed a memorandum on strategic cooperation with China Export-Import Bank ("China EXIM Bank"), under which China EXIM Bank intends to provide total credit facilities up to RMB 3 billion (US$438 million) to SMIC. As phase one of this cooperation, China EXIM Bank has already approved a $140 million 2-year credit facility to us. During the first quarter of 2009, the Company has lined up new credit facilities totalling approximately $240 million, which includes the $140 million credit facility referred to above. This has significantly strengthened our financial position.

Into the second quarter of 2009, we are encouraged by the increasing orders received. We anticipate approximately 60% quarter-over-quarter increase in revenue in the second quarter of 2009. We are hopeful that the worst is behind us, and we are working hard on all fronts to strengthen our operational and financial performance as the overall market continues to recover."

Conference Call / Webcast Announcement Date: April 30, 2009 Time: 8:30 a.m. Shanghai time

Dial-in numbers and pass code: U.S. 1-617-614-3672 / 1-800-260-8140 or HK 852-3002-1672 (Pass code: SMIC).

A live webcast of the 2009 first quarter announcement will be available at http://www.smics.com/ under the "Investor Relations" section. An archived version of the webcast, along with an electronic copy of this news release will be available on the SMIC website for a period of 12 months following the webcast.

About SMIC

Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) foundry and technology services at 0.35um to 45nm. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, a 200mm fab under construction in Shenzhen, and an in-house assembly and testing facility in Chengdu. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 200mm wafer fab in Chengdu owned by Cension Semiconductor Manufacturing Corporation and a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation.

For more information, please visit http://www.smics.com/ . Safe Harbor Statements (Under the Private Securities Litigation Reform Act of 1995)

This press release contains, in addition to historical information, "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements concerning expected increase in our second quarter 2009 utilization rate, anticipated timing for moving into volume production for 65nm customer low power product, future collaboration with global partners, anticipated future credit facilities, anticipated increase in revenue in the second quarter 2009, our expectations regarding market recovery, our ability to strengthen our operational and financial performance, our expectations regarding the amount of our capital expenditures in 2009, and statements under "Capex Summary" and "Second Quarter 2009 Guidance", are based on SMIC's current assumptions, expectations and projections about future events. SMIC uses words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of SMIC's senior management and involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC's actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, risks associated with cyclicality and market conditions in the semiconductor industry, the downturn in the global economy and the impact on China's economy, intense competition, timely wafer acceptance by SMIC's customers, timely introduction of new technologies, SMIC's ability to capture growth opportunities in China, SMIC's ability to strengthen its products portfolio, supply and demand for semiconductor foundry services, industry overcapacity, shortages in equipment, components and raw materials, orders or judgments from pending litigation, availability of manufacturing capacity and financial stability in end markets.

Investors should consider the information contained in SMIC's filings with the U.S. Securities and Exchange Commission (SEC), including its annual report on 20-F, as amended, filed with the SEC on November 28, 2008, especially in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections, and such other documents that SMIC may file with the SEC or SEHK from time to time, including on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on SMIC's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except as required by law, SMIC undertakes no obligation and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Material Litigation Recent TSMC Legal Developments:

On August 25, 2006, TSMC filed a lawsuit against the Company and certain subsidiaries, namely SMIC (Shanghai), SMIC (Beijing) and SMIC (Americas) in the Superior Court of the State of California, County of Alameda for alleged breach of a 2005 Settlement Agreement, alleged breach of promissory notes and alleged trade secret misappropriation by the Company. TSMC seeks, among other things, damages, injunctive relief, attorneys' fees, and the acceleration of the remaining payments outstanding under the Settlement Agreement.

In the present litigation, TSMC alleges that the Company has incorporated TSMC trade secrets in the manufacture of the Company's 0.13 micron or smaller process products. TSMC further alleges that as a result of this claimed breach, TSMC's patent license is terminated and the covenant not to sue set forth in the 2005 Settlement Agreement no longer in effect with respect to the Company's larger process products. The Company has vigorously denied all allegations of misappropriation. The Court has made no finding that TSMC's claims are valid.

On September 13, 2006, the Company announced that in addition to filing a response strongly denying the allegations of TSMC in the United States lawsuit, it filed on September 12, 2006, a cross-complaint against TSMC seeking, among other things, damages for TSMC's breach of contract and breach of implied covenant of good faith and fair dealing.

On November 16, 2006, the High Court in Beijing, the People's Republic of China, accepted the filing of a complaint by the Company and its wholly-owned subsidiaries, namely, SMIC (Shanghai) and SMIC (Beijing), regarding the unfair competition arising from the breach of bona fide (i.e. integrity, good faith) principle and commercial defamation by TSMC ("PRC Complaint"). In the PRC Complaint, the Company is seeking, among other things, an injunction to stop TSMC's infringing acts, public apology from TSMC to the Company and compensation from TSMC to the Company, including profits gained by TSMC from their infringing acts.

On August 14, 2007, the Company filed an amended cross-complaint against TSMC seeking, among other things, damages for TSMC's breach of contract and breach of patent license agreement. TSMC thereafter denied the allegations of the Company's amended cross-complaint and subsequently filed additional claims that the Company breached the Settlement Agreement by filing an action in the Beijing High Court. The Company has denied these additional claims by TSMC.

On August 15-17, 2007, the California Court held a preliminary injunction hearing on TSMC's motion to enjoin use of certain process recipes in certain of the Company's 0.13 micron logic process flows.

On September 7, 2007, the Court denied TSMC's preliminary injunction motion, thereby leaving unaffected the Company's development and sales. However, the court required the Company to provide 10 days' advance notice to TSMC if the Company plans to disclose logic technology to non-SMIC entities under certain circumstances, to allow TSMC to object to the planned disclosure.

In May 2008, TSMC filed a motion in the California Court for summary adjudication against the Company on several of the Company's cross claims. The Company opposed the motion and on August 6, 2008, the Court granted in part and denied in part TSMC's motion.

On June 23, 2008, the Company filed in the California court a cross-complaint against TSMC seeking, among other things, damages for TSMC's unlawful misappropriation of trade secrets from SMIC to improve its competitive position against SMIC.

On July 10, 2008, the California Court held a preliminary injunction hearing on TSMC's motion to enjoin disclosure of information on certain process recipes in the Company's 0.30 micron logic process flows to 3rd parties. On August 8, 2008, the Court granted-in-part TSMC's motion and preliminarily enjoined SMIC from disclosing fourteen 0.30um process steps. On October 3, 2008, SMIC filed a notice of appeal of the Court's August 8, 2008 Order with the California Court of Appeal. This appeal is currently pending.

During the pre-trial proceedings in the matter, questions arose regarding the actual terms of the 2005 Settlement Agreement between SMIC and TSMC. Accordingly, the California Court held a preliminary trial on January 13 to 16, 2009, limited to a determination of the terms of the Settlement Agreement and an interpretation of any requirements to "meet and confer" prior to institution of litigation. On March 10, 2009, the Court issued a Statement of Decision finding, in part, that an agreement between the parties was executed on January 30, 2005, and thereafter amended on February 2, 2005, as urged by TSMC. The Court's ruling may be appealed by SMIC following the filing of a final judgement by the Court in this matter.

The California Court has scheduled a trial upon all liability issues related to a selected list of TSMC trade secret claims and SMIC trade secret claims to commence on September 8, 2009.

In the Company's action in the Beijing High People's Court, following an unsuccessful challenge to that Court's jurisdiction by TSMC, the Court has held evidentiary hearings on October 15, October 29, and November 25, 2008. There are no further hearings scheduled by that Court and it is expected that the Court will issue a ruling based on the evidence presented to it.

Under the provisions of SFAS 144, the Company is required to make a determination as to whether or not this pending litigation represents an event that requires a further analysis of whether the patent license portfolio has been impaired. We believe that the lawsuit is at a discovery stage and we are still evaluating whether or not the litigation represents such an event. The Company expects further information to become available to us, which will aid us in making a determination. The outcome of any impairment analysis performed under SFAS 144 might result in a material impact to our financial position and results of operations. Because the case is in its discovery stage, the Company is unable to evaluate the likelihood of an unfavourable outcome or to estimate the amount or range of potential loss.

Summary of First Quarter 2009 Operating Results Amounts in US$ thousands, except for EPS and operating data 1Q09 4Q08 QoQ 1Q08(3) YoY Revenue 146,519 272,479 -46.2% 362,369 -59.6% Cost of sales 275,900 347,114 -20.5% 394,940 -30.1% Gross loss (129,381) (74,635) 73.4% (32,571) 297.2% Operating expenses 46,681 46,445 0.5% 170,151 -72.6% Loss from operations (176,062) (121,080) 45.4% (202,722) -13.2% Other expenses, net (4,480) (4,146) 8.1% (3,596) 24.6% Income tax (expenses) credit 3,305 (745) -- (19,142) -- Net loss after income taxes (177,237) (125,972) 40.7% (225,460) -21.4% Loss from equity investment (874) (92) 850.0% (241) 262.7% Net loss (178,111) (126,064) 41.3% (225,701) -21.1% Accretion of interest to non-controlling interest holder (259) (13,394) -98.1% 846 -- Loss attributable to holders of ordinary shares (178,370) (139,458) 27.9% (224,855) (20.7%) Gross margin -88.3% -27.4% -9.0% Operating margin -120.2% -44.4% -55.9% Net loss per ordinary share - basic (1) (0.01) (0.01) (0.01) Net loss per ADS - basic (0.40) (0.37) (0.61) Net loss per ordinary share - diluted (1) (0.01) (0.01) (0.01) Net loss per ADS - diluted (0.40) (0.37) (0.61) Wafers shipped (in 8" wafers)(2) 168,682 323,175 (47.8%) 454,259 (62.9%) Capacity utilization 34.9% 67.7% 92.1% Note: (1) Based on weighted average ordinary shares of 22,344 million (basic) and 22,344 million (diluted) in 1Q09, 18,948 million (basic) and 18,948 million (diluted) in 4Q08 and 18,579 million (basic) and 18,579 million (diluted) in 1Q08 (2) Including copper interconnects (3) As restated in "SMIC Reports 2008 Second Quarter Results" issued on July 28, 2008 -- Revenue decreased to $146.5 million in 1Q09, down 46.2% QoQ from $272.5 million in 4Q08 and down 59.6% YoY from $362.4 million in 1Q08 due to lower wafer shipments. -- Cost of sales decreased to $275.9 million in 1Q09, down 20.5% QoQ from $347.1 million in 4Q08, primarily due to a decrease in wafer shipments. -- Gross loss increased to $129.4 million in 1Q09, up 73.4% QoQ from $74.6 million in 4Q08 and up 297.2% YoY from $32.6 million in 1Q08. -- Gross margins decreased to -88.3% in 1Q09 from -27.4% in 4Q08 primarily due to a significant decrease in wafer shipments as well as fab utilization QoQ. -- Total operating expenses increased to $46.7 million in 1Q09 from $46.4 million, an increase of 0.5% QoQ primarily due to a decrease in government R&D subsidies received in 1Q09. Excluding foreign exchange gain, total operating expenses in 1Q09 was $52.6 million as compared to the 1Q09 guidance of $53 million to $56 million. -- R&D expenses increased to $18.5 million in 1Q09, up 47.7% QoQ from $12.5 million due to a decrease in government subsidies received in 1Q09. Excluding the government subsidies, R&D expenses decreased by 6.2% due primarily to a decrease in engineer experiment related expenses. -- G&A expenses decreased to $14.9 million in 1Q09 from $16.1 million in 4Q08 primarily due to an increase in the foreign exchange gain related to operating activities, from $2.1 million in 4Q08 to $5.9 million in 1Q09. -- Selling & marketing expenses decreased to $4.2 million in 1Q09, down 28.0% QoQ from $5.8 million in 4Q08. Analysis of Revenues Sales Analysis By Application 1Q09 4Q08 1Q08 Computer 4.2% 4.5% 12.8% Communications 50.9% 45.9% 54.3% Consumer 32.9% 37.5% 25.9% Others 12.0% 12.1% 7.0% By Service Type 1Q09 4Q08 1Q08 Logic (1) 85.3% 85.6% 78.4% DRAM 2.8% 2.6% 12.1% Management Services 4.1% 2.2% 2.5% Mask Making, testing, others 7.8% 9.6% 7.0% By Customer Type 1Q09 4Q08 1Q08 Fabless semiconductor companies 70.9% 65.0% 54.4% Integrated device manufacturers (IDM) 11.4% 15.2% 31.6% System companies and others 17.7% 19.8% 14.0% By Geography 1Q09 4Q08 1Q08 North America 60.4% 59.9% 53.6% Greater China (2) 32.3% 33.6% 27.7% Asia Pacific (3) 5.2% 4.1% 6.1% Europe 2.1% 2.4% 12.6% Wafer Revenue Analysis By Technology 1Q09 4Q08 1Q08 0.065um 0.1% -- -- 0.09um 8.1% 11.1% 19.8% 0.13um 30.8% 34.4% 25.0% 0.15um 0.8% 2.2% 4.2% 0.18um 31.5% 32.5% 32.1% 0.25um 0.4% 0.6% 0.5% 0.35um 28.3% 19.2% 18.4% Note: (1) Including 0.13mm copper interconnects (2) Includes Hong Kong and Taiwan (3) Excluding Greater China Capacity* Fab / (Wafer Size) 1Q09 4Q08 Shanghai Mega Fab (8")(1) 85,000 88,000 Beijing Mega Fab (12")(2) 33,750 40,500 Tianjin Fab (8") 32,000 32,000 Total monthly wafer fabrication capacity 150,750 160,500 Note: * Wafers per month at the end of the period in 8" wafers (1) Shanghai Mega Fab is now comprised of Fab 1, Fab 2, and Fab 3 (2) Beijing Mega Fab is now comprised of Fab 4, Fab 5, and Fab 6 -- The change in capacity is due primarily to a change in product mix. Shipment and Utilization 8" equivalent wafers 1Q09 4Q08 1Q08 Wafer shipments including copper interconnects 168,682 323,175 454,259 Utilization rate (1) 34.9% 67.7% 92.1% Note: (1) Capacity utilization based on total wafer out divided by estimated capacity -- Wafer shipments decreased 47.8% QoQ to 168,682 units of 8-inch equivalent wafers in 1Q09 from 323,175 units of 8-inch equivalent wafers in 4Q08, and down 62.9% YoY from 454,259 8-inch equivalent wafers in 1Q08. Detailed Financial Analysis Gross Profit Analysis Amounts in US$ thousands 1Q09 4Q08 QoQ 1Q08 YoY Cost of sales 275,900 347,114 -20.5% 394,940 -30.1% Depreciation 130,375 183,916 -29.1% 159,715 -18.4% Other manufacturing costs 138,791 156,446 -11.3% 227,731 -39.1% Deferred cost amortization 5,886 5,886 -- 5,886 -- Share-based compensation 848 866 -2.1% 1,608 -47.3% Gross Profit (129,381) (74,636) 73.3% (32,571) 297.2% Gross Margin -88.3% -27.4% -9.0% -- Cost of sales decreased to $275.9 million in 1Q09, down 20.5% QoQ from $347.1 million in 4Q08, primarily due to a decrease in wafer shipments. -- Gross loss increased to $129.4 million in 1Q09, up 73.4% QoQ from $74.6 million in 4Q08 and up 297.2% YoY from $32.6 million in 1Q08. -- Gross margins decreased to -88.3% in 1Q09 from -27.4% in 4Q08 primarily due to a significant decrease in wafer shipments as well as fab utilization QoQ. Operating Expense Analysis Amounts in US$ thousands 1Q09 4Q08 QoQ 1Q08 YoY Total operating expenses 46,681 46,445 0.5% 170,151 -72.6% Research and development 18,494 12,524 47.7% 34,233 -46.0% General and administrative 14,928 16,146 -7.5% 18,606 -19.8% Selling and marketing 4,208 5,843 -28.0% 4,884 -13.8% Amortization of intangible assets 9,031 11,564 -21.9% 6,784 33.1% Impairment loss of long-lived assets -- 967 -- 105,774 -- Loss (Income) from disposal of properties 20 (599) -- (130) -- -- Total operating expenses increased to $46.7 million in 1Q09 from $46.4 million, an increase of 0.5% QoQ primarily due to a decrease in government R&D subsidies received in 1Q09. Excluding foreign exchange gain, total operating expenses in 1Q09 was $52.6 million as compared to 1Q09 guidance of $53 million to $56 million. -- R&D expenses increased to $18.5 million in 1Q09, up 47.7% from $12.5 million due to a decrease in government subsidies received in 1Q09. Excluding the government subsidies, R&D expenses decreased by 6.2% due primarily to a decrease in engineer experiment related expenses. -- G&A expenses decreased to $14.9 million in 1Q09 from $16.1 million in 4Q08 primarily due to an increase in the foreign exchange gain related to operating activities, from $2.1 million in 4Q08 to $5.9 million in 1Q09. -- Selling & marketing expenses decreased to $4.2 million in 1Q09, down 28.0% QoQ from $5.8 million in 4Q08. Other Income (Expenses) Amounts in US$ thousands 1Q09 4Q08 QoQ 1Q08 YoY Other income (expenses) (4,480) (4,146) 8.1% (3,596) 24.6% Interest income 436 1,184 -63.2% 3,758 -88.4% Interest expense (5,498) (7,133) -22.9% (17,267) -68.2% Foreign currency exchange gain (loss) (357) (2,543) -86.0% 10,317 -- Other, net 939 4,346 -78.4% (404) -- -- Interest income declined in 1Q09 due to significantly lower bank deposit rate. -- Overall interest expense decreased to $5.5 million in 1Q09 from $7.1 million in 4Q08 primarily due to a lower average loan balance and lower interest rates; however, the effect was partially offset by lower government interest subsidies received in 1Q09. -- Foreign exchange loss arising from non-operating activities decreased to $0.4 million in 1Q09 from $2.5 million in 4Q08. Combined with the foreign exchange gain arising from operating activities, the Company recorded an overall foreign exchange gain of $5.5 million in 1Q09 as compared to a foreign exchange loss of $0.4 million in 4Q08. -- Other, net decreased to $0.9 million in 1Q09 from $4.3 million in 4Q08. Depreciation and Amortization -- Total depreciation and amortization in 1Q09 was $207.8 million as compared to $207.7 million in 4Q08. Liquidity Amounts in US$ thousands 1Q09 4Q08 Cash and cash equivalents 502,016 450,230 Restricted Cash 11,228 6,255 Short term investments 20,732 19,928 Accounts receivable 156,177 199,372 Inventory 154,783 171,637 Others 78,728 79,437 Total current assets 923,664 926,859 Accounts payable 135,352 185,919 Short-term borrowings 270,078 201,258 Current portion of long-term debt 359,080 360,629 Others 144,146 151,967 Total current liabilities 908,656 899,773 Cash Ratio 0.5x 0.5x Quick Ratio 0.7x 0.7x Current Ratio 1.0x 1.0x Capital Structure Amounts in US$ thousands 1Q09 4Q08 Cash and cash equivalents 502,016 450,230 Restricted Cash 11,228 6,255 Short-term investment 20,732 19,928 Current portion of promissory note 29,493 29,242 Promissory note 23,792 23,590 Short-term borrowings 270,078 201,258 Current portion of long-term debt 359,080 360,629 Long-term debt 533,090 536,518 Total debt 1,162,248 1,098,405 Shareholders' equity 2,573,891 2,749,365 Total debt to equity ratio 45.2% 40.0% -- The increase in debt to equity ratio as of end of 1Q09 is primarily due to a decrease in shareholders' equity as a result of the net income loss recorded in 1Q09. Cash Flow Amounts in US$ thousands 1Q09 4Q08 Net cash from operating activities 78,117 171,213 Net cash from investing activities (81,785) (120,085) Net cash from financing activities 54,846 6,460 Net change in cash 51,786 57,349 Capex Summary -- Capital expenditures for 1Q09 were $24 million as compared to the 1Q09 guidance of $40 million to $45 million. -- Total planned capital expenditures for 2009 will be approximately $190 million and will be adjusted based on market conditions. Recent Highlights and Announcements -- FlipChip International, LLC, Announces 300mm Strategic Partnership with SMIC [2009-3-16] -- Grant of Options [2009-2-17] -- Further Announcement [2009-2-10] -- Change in Directorate [2009-2-5] -- SMIC Reports 2008 Fourth Quarter Results [2009-2-5] -- Extraordinary General Meeting Held on February 3, 2009 Poll Results [2009-2-3] -- Change in Directorate [2009-1-29] -- SMIC releases preliminary version of three 65-nanometer Standard Cell Libraries [2009-1-21] -- Notice of Extraordinary General Meeting [2009-1-15] -- Letter to Shareholders: Website notification letter [2009-1-15] -- Non-Exempt Continuing Connected Transactions and Refreshment of General Mandate to Allot and Issue Shares [2009-1-15] -- Change in Directorate [2009-1-14] -- Closure of Register of Members [2009-1-12] -- Notification of Board Meeting [2009-1-9] -- SMIC Schedules Fourth Quarter 2008 Webcast Conference Call [2009-1-9] -- Non-Exempt Continuing Connected Transactions [2009-1-8] -- Unusual Increase in Share Trading Price [2009-1-7]

Please visit SMIC's website at http://www.smics.com/website/enVersion/Press_Center/pressRelease.jsp for further details regarding the recent announcements.

Semiconductor Manufacturing International Corporation CONSOLIDATED BALANCE SHEET (In US dollars) As of the end of March 31, December 31, 2009 2008 (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents 502,015,857 450,229,569 Restricted Cash 11,227,741 6,254,813 Short-term investments 20,731,562 19,928,289 Accounts receivable, net of allowances of $5,870,986 and $5,680,658 at March 31, 2009 and December 31, 2008, respectively 156,177,160 199,371,694 Inventories 154,783,494 171,636,868 Prepaid expense and other current assets 57,287,558 56,299,086 Receivable for sale of manufacturing equipment 21,440,494 23,137,764 Total current assets 923,663,866 926,858,083 Land use rights, net 79,234,650 74,293,284 Plant and equipment, net 2,792,875,058 2,963,385,840 Acquired intangible assets, net 191,028,492 200,059,106 Deferred cost, net 41,205,077 47,091,516 Equity investment 10,756,777 11,352,186 Other long-term prepayments 1,486,807 1,895,337 Deferred tax assets 51,969,380 45,686,470 TOTAL ASSETS 4,092,220,107 4,270,621,822 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Account payable 135,351,888 185,918,539 Accrued expenses and other current liabilities 114,185,387 122,173,803 Short-term borrowings 270,078,251 201,257,773 Current portion of promissory notes 29,492,873 29,242,001 Current portion of long-term debt 359,079,883 360,628,789 Income tax payable 467,869 552,006 Total current liabilities 908,656,151 899,772,911 Long-term liabilities: Promissory notes 23,792,341 23,589,958 Long-term debt 533,090,173 536,518,281 Long-term payables relating to license agreements 18,375,736 18,169,006 Deferred tax liabilities 373,727 411,877 Total long-term liabilities 575,631,977 578,689,122 TOTAL LIABILITIES 1,484,288,128 1,478,462,033 Non-controlling interest 34,040,748 42,795,288 Commitments Stockholders' equity: Ordinary shares $0.0004 par value, 50,000,000,000 shares authorized, shares issued and outstanding 22,350,521,609 and 22,327,784,827 at March 31, 2009 and December 31, 2008, respectively 8,940,209 8,931,114 Additional paid-in capital 3,491,661,468 3,489,382,267 Accumulated other comprehensive (loss) income 169,290 (439,123) Accumulated deficit (926,879,736) (748,509,757) Total stockholders' equity 2,573,891,231 2,749,364,501 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 4,092,220,107 4,270,621,822 Semiconductor Manufacturing International Corporation CONSOLIDATED STATEMENT OF OPERATIONS (In US dollars) For the three months ended March 31, December 31, 2009 2008 (Unaudited) (Unaudited) Sales 146,518,884 272,478,762 Cost of sales 275,899,824 347,114,296 Gross loss (129,380,940) (74,635,534) Operating expenses (income): Research and development 18,494,784 12,523,835 General and administrative 14,927,735 16,146,415 Selling and marketing 4,207,593 5,843,252 Amortization of acquired intangible assets 9,030,614 11,563,678 Impairment loss of long-lived assets -- 966,667 Loss (Income) from sale of equipment and other fixed assets 20,484 (598,819) Total operating expenses, net 46,681,210 46,445,028 Loss from operations (176,062,150) (121,080,562) Other income (expense): Interest income 436,294 1,183,576 Interest expense (5,498,154) (7,132,535) Foreign currency exchange gain loss (357,034) (2,542,966) Others, net 938,969 4,346,182 Total other expense, net (4,479,925) (4,145,743) Loss before income tax (180,542,075) (125,226,305) Income tax benefit (expense) 3,304,513 (745,310) Loss from equity investment (873,513) (92,319) Net loss (178,111,075) (126,063,934) Accretion of interest to non-controlling interest holder (258,904) (13,394,087) Loss attributable to holders of ordinary shares (178,369,979) (139,458,021) Net loss per share, basic (0.01) (0.01) Net loss per ADS, basic (0.40) (0.37) Net loss per share, diluted (0.01) (0.01) Net loss per ADS, diluted (0.40) (0.37) Ordinary shares used in calculating basic loss per ordinary share 22,343,640,476 18,947,602,493 Ordinary shares used in calculating diluted loss per ordinary share 22,343,640,476 18,947,602,493 Semiconductor Manufacturing International Corporation CONSOLIDATED STATEMENT OF CASH FLOWS (In US dollars) For the three months ended March 31, December 31, 2009 2008 (Unaudited) (Unaudited) Operating activities Net loss (178,111,075) (126,063,934) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred tax (6,321,059) (1,924,575) Loss (income) from sale of equipment and other fixed assets 20,484 (598,820) Depreciation and amortization 196,535,950 193,779,737 Amortization of acquired intangible assets 9,030,614 11,563,678 Share-based compensation 2,272,359 2,358,942 Non-cash interest expense on promissory note and long-term payable relating to license agreements 1,046,426 1,480,674 Loss from equity investment 873,513 92,320 Impairment loss of long-lived assets -- 966,667 Changes in operating assets and liabilities: Accounts receivable, net 43,194,535 86,502,133 Inventories 16,853,373 61,385,789 Prepaid expense and other current assets (579,942) (5,798,143) Accounts payable (6,456,221) (36,579,576) Accrued expenses and other current liabilities (158,281) (15,985,881) Income tax payable (84,138) 34,327 Net cash provided by operating activities 78,116,538 171,213,338 Investing activities: Purchase of plant and equipment and land use rights (72,018,394) (129,327,507) Proceeds from government grant to purchase plant and equipment 6,437,831 4,181,922 Proceeds from sale of equipment 1,700,577 913,738 Proceeds received from sale of assets held for sale 770,931 -- Purchases of acquired intangible assets (12,621,260) (23,315,762) Purchase of short-term investments (31,496,963) -- Purchase of equity investment (278,103) -- Sale of short-term investments 30,693,690 30,717,248 Changes in restricted cash (4,972,928) (3,254,813) Net cash used in investing activities (81,784,619) (120,085,174) Financing activities: Proceeds from short-term borrowing 182,644,921 57,407,359 Repayment of short-term borrowings (113,824,443) (68,750,000) Proceeds from long-term debt -- 39,397,145 Repayment of long-term debt (4,977,014) (174,736,605) Repayment of promissory notes -- (15,000,000) Proceeds from issuance of ordinary shares -- 168,100,000 Proceeds from exercise of employee stock options 15,937 42,307 Redemption of non-controlling interest (9,013,444) -- Net cash provided by financing activities 54,845,957 6,460,206 Effect of exchange rate changes 608,412 (239,821) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 51,786,288 57,348,549 CASH AND CASH EQUIVALENTS, beginning of period 450,229,569 392,881,020 CASH AND CASH EQUIVALENTS, end of period 502,015,857 450,229,569 Investor Contacts: En-Ling Feng Tel: +86-21-3861-0000 x16275 Email: Enling_Feng@smics.com Anne Wong Chen Tel: +86-21-3861-0000 x12804 Email: Anne_CAYW@smics.com Edith Kwan Tel: +852-2116-2624 Email: Edith_Kwan@smics.com

Semiconductor Manufacturing International Corporation

CONTACT: Semiconductor Manufacturing International Corporation, En-Ling
Feng, +86-21-3861-0000 x16275, Feng@smics.com and Anne Wong Chen,
+86-21-3861-0000 x12804, CAYW@smics.com and Edith Kwan, +852-2116-2624,
Kwan@smics.com

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

Avalara Joins NetSuite SuiteCloud Developer Network; Connects AvaTax to NetSuite Via SuiteCloudIntegration Extends NetSuite to Support Sales Tax Management Service Automation Giving Businesses the Benefit of Improved Efficiency and Time Savings

MOUNTAIN VIEW, Calif., April 29 /PRNewswire/ -- Avalara, a leading provider of Web-based sales tax automation solutions for businesses of all sizes, today announced that it has become a member of NetSuite's SuiteCloud Developer Network, a multi-tiered program that enables Independent Software Developers to quickly go to market with on-demand business applications that leverage the power of NetSuite's core business suite. As part of this strategic program, Avalara and NetSuite are jointly marketing AvaTax, Avalara's end-to-end, on-demand sales tax calculation and compliance service.

Designed as a fully automated sales tax solution, the AvaTax service is integrated with NetSuite using SuiteCloud, NetSuite's comprehensive offering of on-demand products, development tools and services designed to help customers and commercial software developers take advantage of the significant economic benefits of Cloud computing. From point-of-sale (POS) to electronic sales tax filing and payment, Avalara services streamline the cumbersome sales tax process for businesses and reduce the risk of loss or penalty in case of an audit. In the current economic climate, accurate calculation and compliance are more important than ever for businesses. Additionally, accounting personnel need assurance and the confidence of knowing their calculations and reports are accurate and compliant with state mandates. By combining real-time visibility from financial data provided by NetSuite and AvaTax's highly scalable sales tax engine, companies can significantly improve business efficiencies, which ultimately enable employees to focus on revenue generating activities.

According to Avalara's Executive VP, Strategic Accounts and User Experience, Marshal Kushniruk, "Our efforts are clearly in tandem with the SuiteCloud Developer Network and we are committed to bringing value to our joint customers. Together, we have a unique ability to offer customers a seamless solution for handling their most onerous sales tax compliance activities."

"We couldn't be more pleased as we move our NetSuite relationship forward," said Scott McFarlane, CEO Avalara. "Our on-demand end-to-end sales tax calculation solution is a natural fit for the majority of NetSuite customers and prospects, especially those companies who appreciate the value of automated processes. We are also excited that NetSuite has chosen and implemented AvaTax as their internal sales tax calculation solution of choice," McFarlane adds.

"Avatax for NetSuite is an excellent example of a partner leveraging our suite of seamless ERP, CRM and Ecommerce functionality," said Guido Haarmans, VP, SuiteCloud Developer Network of NetSuite. "In the current economic environment, the numerous benefits of the SaaS model - including lower costs, fast deployment, and reduced capital outlays - are increasingly compelling. But customers are not looking for siloed SaaS solutions - they want to optimize business processes across their companies. For sales tax, NetSuite and Avalara are a robust, combined SaaS offering to provide that."

About SuiteCloud

NetSuite's SuiteCloud is a comprehensive offering of on-demand products, development tools and services designed to help customers and commercial software developers take advantage of the significant economic benefits of Cloud computing. Based on NetSuite, the world's most widely used Software as a Service ERP Suite, SuiteCloud enables customers to run their core business operations in the Cloud, and software developers to target new markets quickly with newly-created mission-critical business applications built on top of mature and proven business processes. The complete SuiteCloud offering includes NetSuite's multi-tenant, always-on SaaS infrastructure; the NetSuite Business Suite of applications (Accounting/ERP, CRM, Ecommerce); the NS-BOS Development Platform; the SuiteCloud Developer Network (SDN), a comprehensive developer program for Independent Software Vendors (ISVs); and SuiteApp.com, a single-source online marketplace where ISVs, customers and solution providers can find applications to meet specific business process or industry-specific needs. For more information on SuiteCloud, please visit http://www.netsuite.com/portal/suiteapp/main.shtml.

About Avalara:

Avalara is transforming the sales and use tax compliance process for businesses of all sizes by delivering advanced technology solutions that provide fast, easy accurate and affordable way for companies to address their statutory tax requirements. Chosen by nearly 10,000 businesses throughout the U.S., Canada, and abroad, and a trusted provider over 100 million sales tax calculations annually, Avalara is a recognized leader in web-based sales tax services and solution. For more information, please visit http://www.avalara.com/

Avalara

CONTACT: Bryan Wiggins, VP Marketing of Avalara, +1-206-780-7050,
bryan.wiggins@avalara.com

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

Harris Corporation Awarded US$20 Million Contract for Falcon II(R) and Falcon III(R) Tactical Radios from the Polish Ministry of National Defense

ROCHESTER, New York, April 29 /PRNewswire/ --

- Land and Special Operations Forces Will Acquire Harris Multiband and HF Technology to Enable Communications Interoperability for U.S., NATO and Coalition Operations

Harris Corporation (NYSE: HRS), an international communications and information technology company, has been awarded a contract totaling US$20 million from the Polish Ministry of National Defense (MoND) to deliver a combination of multiband and HF tactical radios for Poland's Land and Special Operations Command Forces.

(Photo: http://www.newscom.com/cgi-bin/prnh/20090429/FL07552 )

Harris is providing Poland with a range of products from its industry-leading Falcon(R) family, including the AN/PRC-152(C) multiband handheld radio; the AN/PRC-117F(C) multiband manpack radio and the AN/PRC-150(C) high frequency (HF) manpack radio. These radios will provide Polish forces with secure voice and data communications and provide seamless interoperability with U.S., NATO and coalition forces. All of the radios feature Harris software-defined architecture, enabling adaptability to changing mission requirements through software upgrades. In addition, the new technology will maintain interoperability with Harris legacy radios already deployed by Polish forces.

"The Polish armed forces are continuing to play a vital role in complex, multi-national peacekeeping missions around the world," said Brigadier General Slawomir Szczepaniak, Director of the Armed Forces Procurement Department. "This requires our troops to be equipped with the most reliable and capable communications equipment possible. Technology from Harris - as has been proven in past deployments - will ensure our forces have continuous secure communications amongst our own forces as well as with our allies in the field. This is the first large contract signed by Armed Forces Procurement Department, based on an FMS program using Polish national funds."

Used by U.S. and allied forces around the world, the Harris(R) Falcon III(R) AN/PRC-152(C) is the most widely deployed JTRS-approved radio. The Falcon II(R) AN/PRC-117F(C) manpack radio will deliver multiband communications capability including advanced tactical satellite voice and data capabilities.

Polish forces will also be leveraging Harris secure HF technology with the Falcon II AN/PRC-150(C) manpack - capable of providing reliable, beyond line-of-sight communications - making it ideal for use in obstructed mountainous environments or for long haul, reach-back requirements.

"Harris is honored to have been selected to deliver this suite of tactical communication solutions, helping empower Polish forces to work safely and effectively with their coalition partners," said Dana Mehnert, president, Harris RF Communications.

Harris RF Communications is the leading global supplier of secure radio communications and embedded high-grade encryption solutions for military, government and commercial organizations. The company's Falcon family of software-defined tactical radio systems encompasses manpack, handheld and vehicular applications. Falcon III is the next-generation of radios supporting the U.S. military's Joint Tactical Radio System (JTRS) requirements as well as network-centric operations worldwide. Harris also provides the Unity family of multiband radios for the public safety market.

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 US$5.4 billion and 16,000 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 www.harris.com.

Harris Corporation

Kevin Aman, RF Communications, +1-585-241-8186, Kevin.Aman@harris.com; Jim Burke, Corporate Headquarters, +1-321-727-9131, Jim.Burke@harris.com. Photo: http://www.newscom.com/cgi-bin/prnh/20090429/FL07552

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