Exponent Reports Second Quarter 2009 Results

MENLO PARK, Calif., July 22 /PRNewswire-FirstCall/ -- Exponent, Inc. today reported financial results for the second quarter ended July 3, 2009.

For the second quarter of 2009, total revenues increased 11% to $60,862,000, as compared to $54,956,000 in the second quarter of last year. Revenues before reimbursements increased 3% to $52,429,000 as compared to $50,801,000 in the second quarter of 2008. Net income was $6,025,000, or $0.40 per diluted share, as compared to $5,793,000, or $0.36 per diluted share, in the prior year period. EBITDA(1) increased to $10,938,000, as compared to $10,148,000, in the second quarter of 2008.

For the first half of 2009, total revenues increased 8% to $120,658,000, as compared to $111,216,000, in the same period of last year. Revenues before reimbursements increased 4% to $107,360,000, as compared to $102,823,000, in the same period of 2008. Net income was $11,783,000 or $0.79 per diluted share, as compared to $12,140,000, or $0.76 per diluted share, in the prior year period. EBITDA(1) in the first half of 2009 improved to $21,350,000, as compared to $21,119,000, in the first half of 2008.

"We are pleased with our overall performance in the second quarter, especially considering the general macroeconomic climate," commented Paul R. Johnston, President and CEO. "We continued to increase revenues and effectively manage our cost structure. We had good performances in our defense technology development and electrical practices, as well as our health and environmental science groups.

"For the second half of 2009, we believe the demand for our services will remain relatively resilient in spite of the economic downturn. However, due to the tight corporate spending environment we are cautious about seeing an increase in short-term demand. Additionally, we have been directly impacted by the bankruptcies in the automotive industry. As a result of these factors, we expect revenues before reimbursements for the full year, 2009, to be approximately flat with last year. As a reminder, in 2008 we had high product sales in technology development, a favorable foreign currency exchange rate environment, and an extra week in the fourth quarter.

"We remain optimistic about our future. Over the long term our consulting services will continue to be driven by products and processes becoming more technologically complex and society's demand for them to be safer, healthier and more environmentally sensitive. We believe that Exponent's differentiated market position as a multidisciplinary engineering and scientific consulting firm with unparalleled technical expertise and experience will allow us to translate these opportunities and market drivers into long-term shareholder value," concluded Dr. Johnston.

Today's Conference Call Information

Exponent will discuss its financial results in more detail on a conference call today, July 22, 2009, starting at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. The audio on the conference call is available by dialing 877-941-2068. A live webcast of the call will be available on the Investor Relations section of the Company's web site at http://www.exponent.com/investors. For those unable to listen to the live webcast, a replay of the call will also be available on the Exponent web site, or by dialing 800-406-7325 and entering reservation 4117488#.

About Exponent

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

This news release contains, and incorporates by reference, certain "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995, and the rules promulgated pursuant to the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended thereto under) that are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. Such forward-looking statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. When used in this document and in the documents incorporated herein by reference, the words "anticipate," "believe," "estimate," "expect" and similar expressions, as they relate to the Company or its management, identify such forward-looking statements. Such statements reflect the current views of the Company or its management with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company's actual results, performance, or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements. Factors that could cause or contribute to such material differences include the possibility that the demand for our services may decline as a result of changes in general and industry specific economic conditions, the timing of engagements for our services, the effects of competitive services and pricing, the absence of backlog related to our business, our ability to attract and retain key employees, the effect of tort reform and government regulation on our business, and liabilities resulting from claims made against us. Additional risks and uncertainties are discussed in our Annual Report on Form 10-K under the heading "Risk Factors" and elsewhere in the report. The inclusion of such forward-looking information should not be regarded as a representation by the Company or any other person that the future events, plans, or expectations contemplated by the Company will be achieved. The Company undertakes no obligation to release publicly any updates or revisions to any such forward-looking statements.

(1) EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. A reconciliation of the measures to GAAP is set forth below.

EXPONENT, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME For the Quarters Ended July 3, 2009 and June 27, 2008 (unaudited) (in thousands, except per share data) Quarter Ended Six Months Ended --------------- ------------------ July 3, June 27, July 3, June 27, 2009 2008 2009 2008 ---- ---- ---- ---- Revenues -------- Revenues before reimbursements $52,429 $50,801 $107,360 $102,823 Reimbursements 8,433 4,155 13,298 8,393 ----- ----- ------ ----- Revenues 60,862 54,956 120,658 111,216 ------ ------ ------- ------- Operating expenses ------------------ Compensation and related expenses 34,954 33,197 72,800 66,707 Other operating expenses 5,309 5,588 10,586 11,016 Reimbursable expenses 8,433 4,155 13,298 8,393 General and administrative expenses 3,227 3,207 5,859 6,196 ------ ------ ------- ------ 51,923 46,147 102,543 92,312 ------ ------ ------- ------ Operating income 8,939 8,809 18,115 18,904 Other income ------------- Interest income, net 200 463 434 965 Miscellaneous income, net 898 355 1,056 290 --- --- ----- --- 1,098 818 1,490 1,255 ----- --- ----- ----- Income before income taxes 10,037 9,627 19,605 20,159 Income taxes 4,012 3,834 7,822 8,019 ----- ----- ----- ----- Net income $6,025 $5,793 $11,783 $12,140 ====== ====== ======= ======= Net income per share: --------------------- Basic $0.43 $0.38 $0.83 $0.81 Diluted $0.40 $0.36 $0.79 $0.76 Shares used in per share computations: ------------------------- Basic 14,167 15,086 14,129 14,966 Diluted 15,013 16,100 14,998 16,050 EXPONENT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS July 3, 2009 and January 2, 2009 (unaudited) (in thousands) ============== July 3, January 2, 2009 2009 ---- ---- Assets Current assets: Cash and cash equivalents $39,109 $32,598 Short-term investments 12,953 24,772 Accounts receivable, net 73,405 62,208 Prepaid expenses and other assets 8,529 6,275 Deferred income taxes 4,845 4,455 ----- ----- Total current assets 138,841 130,308 Property, equipment and leasehold improvements, net 30,350 31,371 Goodwill 8,607 8,607 Other assets 15,917 12,804 ------ ------ $193,715 $183,090 ======== ======== Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued liabilities $5,369 $6,536 Accrued payroll and employee benefits 30,000 35,528 Deferred revenues 7,213 6,171 ----- ----- Total current liabilities 42,582 48,235 Other liabilities 7,734 4,968 Deferred rent 1,515 1,793 ----- ----- Total liabilities 51,831 54,996 ------ ------ Stockholders' equity: Common stock 16 16 Additional paid-in capital 80,876 72,734 Accumulated other comprehensive loss (387) (345) Retained earnings 132,788 127,127 Treasury stock, at cost (71,409) (71,438) ------- ------- Total stockholders' equity 141,884 128,094 ------- ------- $193,715 $183,090 ======== ======== EXPONENT, INC. EBITDA and EBITDAS (1) For the Quarters Ended July 3, 2009 and June 27, 2008 (unaudited) (in thousands) Quarter Ended Six Months Ended --------------- ------------------ July 3, June 27, July 3, June 27, 2009 2008 2009 2008 ---- ---- ---- ---- Net Income $6,025 $5,793 $11,783 $12,140 Add back (subtract): Income taxes 4,012 3,834 7,822 8,019 Interest income, net (200) (463) (434) (965) Depreciation and amortization 1,101 984 2,179 1,925 ----- --- ----- ----- EBITDA (1) 10,938 10,148 21,350 21,119 ------ ------ ------ ------ Stock-based compensation 1,649 1,759 4,744 4,626 ----- ----- ----- ----- EBITDAS (1) $12,587 $11,907 $26,094 $25,745 ======= ======= ======= =======

(1) EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to compliment operating income, net income and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP.

Exponent, Inc.

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

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

AnalogicTech Reports Financial Results for the Second Quarter 2009

SANTA CLARA, Calif., July 22 /PRNewswire-FirstCall/ -- Advanced Analogic Technologies, Inc. ("AnalogicTech" or the "Company") , a developer of total power management integrated circuits, today reported financial results for the second quarter ended June 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050829/SFTU089LOGO)

Net revenue for the second quarter of 2009 was $23.0 million, an increase of 9% over net revenue of $21.2 million for the second quarter of 2008 and a sequential increase of 39% from net revenue of $16.5 million for the first quarter of 2009.

In accordance with U.S. generally accepted accounting principles (GAAP), net loss for the second quarter of 2009 was $2.7 million, or $0.06 per diluted share. This compares to GAAP net loss of $3.8 million, or $0.08 per diluted share for the second quarter of 2008, and GAAP net loss of $5.2 million, or $0.12 per diluted share for the first quarter of 2009.

On a non-GAAP basis, excluding stock-based compensation expense, amortization of acquired intangibles, restructuring and other severance-related expenses, net of taxes, net loss for the second quarter of 2009 was $0.8 million, or $0.02 per diluted share. This compares to non-GAAP net loss of $1.8 million, or $0.04 per diluted share, for the second quarter of 2008 and non-GAAP net loss of $3.5 million, or $0.08 per diluted share, for the first quarter of 2009. Non-GAAP net loss for the second quarter of 2008 excluded stock-based compensation expense, amortization of acquired intangibles, in-process research and development, restructuring and other severance-related expense, net of taxes. Non-GAAP net loss for the first quarter of 2009 excluded stock-based compensation expense, amortization of acquired intangibles, restructuring and other severance-related expenses, net of taxes.

AnalogicTech reported gross margins of 48.3% for the second quarter of 2009, compared to 47.3% for the second quarter of 2008 and 44.9% for the first quarter of 2009. Non-GAAP gross margin was 48.9% for the second quarter of 2009, compared to 48.9% for the second quarter of 2008 and 45.6% for the first quarter of 2009. The Company ended the quarter with $104.7 million in cash, cash equivalents, and short-term investments.

"Our second quarter results significantly exceeded expectations with revenue increasing 39% sequentially," stated Richard K. Williams, President, CEO and CTO of AnalogicTech. "Sales across all major geographies were up, with the strongest growth occurring in China and Taiwan, driven by strong demand for our computing and communications products. We were also encouraged to see sales from both battery management and voltage regulation products more than double sequentially in the second quarter, reflecting our success in penetrating new applications with our expanding product portfolio. Revenue from our ModularBCD products also grew in the second quarter and continued to represent a strong percentage of our sales."

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially. AnalogicTech undertakes no obligation to update these statements.

For the third quarter ending September 30, 2009, AnalogicTech estimates revenue in the range of $24 million to $26 million, and net loss in the range of $0.07 to $0.05 per diluted share on a GAAP basis. The third quarter 2009 estimates include pre-tax quarterly share-based compensation expense in the range of $1.7 to $1.9 million.

Non-GAAP Reporting

In addition to GAAP reporting, AnalogicTech reports net income (loss), gross margin and earnings (loss) per share on a non-GAAP basis. This non-GAAP earnings information excludes certain items and their tax-related effects. AnalogicTech believes this non-GAAP earnings information provides meaningful insight into the Company's ongoing operational performance and has therefore chosen to provide this information to investors as an additional dimension of comparability to similar companies. AnalogicTech also uses this information internally to evaluate and manage company operations and to determine incentive compensation. A reconciliation between GAAP and non-GAAP net income (loss), gross margin and earnings (loss) per share is included in the tables below.

The non-GAAP information included in this press release is not necessarily comparable to non-GAAP information of other companies. Non-GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as measures of our profitability or liquidity. Users of this financial information should consider the types of events and transactions for which adjustments have been made.

Conference Call Details

The AnalogicTech second quarter 2009 teleconference and webcast is scheduled to begin at 4:30 p.m. Eastern Time on Wednesday, July 22, 2009. To participate in the live call, analysts and investors should dial 877-941-2068 or 480-629-9712 at least ten minutes prior to the call. AnalogicTech will also offer a live and archived webcast of the conference call, accessible from the company's investor relations website at http://www.aati.com/ in the "Webcasts" section. A telephonic replay of the conference call will also be available through July 27, 2009, by dialing 800-406-7325 and entering the passcode 4100954#. Callers outside the U.S. and Canada may access the replay by dialing 303-590-3030 and entering the passcode 4100954#.

About AnalogicTech

Advanced Analogic Technologies, Inc. (AnalogicTech) is a supplier of Total Power Management(TM) semiconductor solutions for a variety of consumer, communications, and computing systems. The company focuses its design and marketing efforts on the application-specific power management needs of such devices as mobile handsets, smartphones, digital cameras, netbooks / notebooks, personal navigation systems, and wireless LANs. AnalogicTech also develops and licenses device, process, package, and application-related technologies. AnalogicTech is headquartered in Santa Clara, CA and Macau, S.A.R., with offices in China, Hong Kong, Taiwan, Japan, Korea, and the U.K., as well as a worldwide network of sales reps and distributors. The company is listed on NASDAQ under the symbol AATI. For more information, please visit http://www.analogictech.com/. (AnalogicTech - F)

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

Statements contained in this release that are not historical facts are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including financial projections and forecasts, involve risks and uncertainties that could cause AnalogicTech's actual results to differ materially from our current expectations. Factors that could cause AnalogicTech's results to differ materially from those set forth in these forward-looking statements include customers' cancellation or modification of their orders; our failure to accurately forecast demand for our products; the loss of, or a significant reduction in orders from, any of our significant customers; consumer demand for cellular phones and other mobile consumer electronic devices; worldwide economic and political conditions, particularly in Asia; our ability to manage inventory levels, fluctuations in our operating results; our inability to develop and sell new products; defects in or failures of our products; the expense and uncertainty involved in our customer design-win efforts; the financial viability of the distributors of our products; fluctuations in our costs to manufacture our products; our reliance on third parties to manufacture, test, assemble and ship our products; our ability to retain and attract key personnel; our ability to compete with our competitors; and our ability to protect our intellectual property rights and not infringe the intellectual property rights of others. Other factors that may cause our actual results to differ from those set forth in the forward-looking statements contained in this press release and that may affect our prospects in general are described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2008. AnalogicTech undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or changed assumptions or circumstances.

AnalogicTech and the AnalogicTech logo are trademarks of Advanced Analogic Technologies, Inc. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands) Jun. 30, Dec. 31, 2009 2008(*) ---- ---- ASSETS CURRENT ASSETS Cash and cash equivalents $57,795 $52,094 Short-term investments 46,884 57,443 ------ ------ Total cash, cash equivalents and short term investments 104,679 109,537 Accounts receivable, net of allowances 11,355 6,654 Inventories 9,825 9,016 Prepaid expenses and other current assets 1,416 2,100 ----- ----- Total current assets 127,275 127,307 Property and equipment, net 4,644 5,050 Other assets 4,267 4,060 Deferred income taxes - noncurrent 282 326 Intangible assets, net 235 395 Goodwill 16,116 16,116 ------ ------ TOTAL ASSETS $152,819 $153,254 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $10,851 $4,601 Accrued liabilities 3,834 3,739 Income tax payable 73 28 --- --- Total current liabilities 14,758 8,368 Long-term income tax payable 4,277 3,326 Other long-term liabilities 256 228 --- --- Total liabilities 19,291 11,922 ------ ------ Total stockholders' equity 133,528 141,332 ------- ------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $152,819 $153,254 ======== ======== * Amounts as of December 31, 2008 were derived from the December 31, 2008 audited consolidated financial statements. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended Six Months Ended Jun. 30, Jun. 30, Mar. 31, Jun. 30, Jun. 30, 2009 2008 2009 2009 2008 ---- ---- ---- ---- ---- NET REVENUE $22,978 $21,173 $16,549 $39,527 $46,274 Cost of revenue 11,879 11,149 9,118 20,997 22,517 ------ ------ ----- ------ ------ GROSS PROFIT 11,099 10,024 7,431 18,530 23,757 OPERATING EXPENSES: Research and development 6,862 7,790 6,583 13,445 15,449 Sales, general and administrative 6,403 6,201 5,429 11,832 12,646 Patent litigation 385 482 301 686 744 --- --- --- --- --- Total operating expenses 13,650 14,473 12,313 25,963 28,839 ------ ------ ------ ------ ------ LOSS FROM OPERATIONS (2,551) (4,449) (4,882) (7,433) (5,082) OTHER INCOME, NET 315 766 353 668 1,910 --- --- --- --- ----- LOSS BEFORE INCOME TAXES (2,236) (3,683) (4,529) (6,765) (3,172) PROVISION FOR INCOME TAXES 439 147 679 1,118 211 --- --- --- ----- --- NET LOSS $(2,675) $(3,830) $(5,208) $(7,883) $(3,383) ======= ======= ======= ======= ======= NET LOSS PER SHARE: Basic $(0.06) $(0.08) $(0.12) $(0.18) $(0.07) ====== ====== ====== ====== ====== Diluted $(0.06) $(0.08) $(0.12) $(0.18) $(0.07) ====== ====== ====== ====== ====== WEIGHTED AVERAGE SHARES USED IN NET LOSS PER SHARE CALCULATION: Basic 42,938 45,687 43,052 42,995 45,589 ====== ====== ====== ====== ====== Diluted 42,938 45,687 43,052 42,995 45,589 ====== ====== ====== ====== ====== Note: Stock-based compensation recorded in each expense classification above is as follows: Cost of revenue $81 $95 $63 $144 $172 Research and development 787 773 700 1,487 1,563 Sales, general and administrative 951 1,034 812 1,764 1,894 --- ----- --- ----- ----- $1,819 $1,902 $1,575 $3,395 $3,629 ====== ====== ====== ====== ====== Financial Summary (Non-GAAP) (in thousands, except per share amounts) (unaudited) Three Months Ended GAAP TO NON-GAAP RECONCILIATION Jun. 30, Jun. 30, Mar. 31, 2009 2008 2009 ---- ---- ---- GROSS MARGIN: ------------- GROSS MARGIN $11,099 $10,024 $7,431 GROSS MARGIN % 48.3% 47.3% 44.9% Amortization of acquired intangibles 54 242 54 Stock-based compensation 81 95 63 NON-GAAP GROSS MARGIN 11,234 10,361 7,548 NON-GAAP GROSS MARGIN % 48.9% 48.9% 45.6% NET LOSS: --------- NET LOSS: $(2,675) $(3,830) $(5,208) Stock-based compensation 1,819 1,902 1,575 Amortization of acquired intangibles 64 290 64 In-process research and development - 255 - Restructuring and other severance expenses 3 167 124 Associated tax effects of above adjustments (353) (561) (345) Deferred tax asset valuation allowance 353 - 300 --- --- --- Total adjustments 1,886 2,053 1,718 ----- ----- ----- NET LOSS ON NON-GAAP BASIS: $(789) $(1,777) $(3,490) ===== ======= ======= EPS: ---- GAAP EPS, DILUTED $(0.06) $(0.08) $(0.12) NON-GAAP EPS, DILUTED $(0.02) $(0.04) $(0.08) Weighted average shares used to calculate Non-GAAP diluted EPS: 42,938 45,687 43,052

Photo: http://www.newscom.com/cgi-bin/prnh/20050829/SFTU089LOGO
http://photoarchive.ap.org/
PRN Photo Desk photodesk@prnewswire.com Advanced Analogic Technologies, Inc.

CONTACT: Investors, Brian McDonald, Chief Financial Officer of
AnalogicTech, +1-408-737-4788; or Lisa Laukkanen of The Blueshirt Group,
+1-415-217-4967, for Advanced Analogic Technologies, Inc.

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

NETGEAR(R) Reports Second Quarter 2009 ResultsHighlights: - Net revenue of $144.7 million, compared to $204.5 million in the comparable prior year quarter - Non-GAAP net loss of $522,000, compared to net income of $14.5 million in the comparable prior year quarter - Non-GAAP diluted loss per share of $0.02, compared to diluted earnings per share of $0.41 in the comparable prior year quarter - Third quarter 2009 net revenue guidance in the range of $150 million to $160 million, with non-GAAP operating margin guidance in the range of 5% to 7% - While there is no impact on the estimated annual tax provision based on the current projections, the Company is restating its Q1 2009 financials due to misapplication of FASB Interpretation No. 18 on interim quarter tax provisions

SAN JOSE, Calif., July 22 /PRNewswire-FirstCall/ -- NETGEAR, Inc. , a worldwide provider of technologically innovative, branded networking products, today reported financial results for the second quarter ended June 28, 2009.

Net revenue for the second quarter ended June 28, 2009 was $144.7 million, compared to $204.5 million for the second quarter ended June 29, 2008, and $152.0 million in the first quarter ended March 29, 2009. Net loss, computed in accordance with GAAP, for the second quarter of 2009 was $3.3 million, or $0.10 per diluted share. This compared to net income of $11.1 million for the second quarter of 2008 and net loss of $3.8 million in the first quarter of 2009. Diluted loss per share, computed in accordance with GAAP, was $0.11 for the first quarter of 2009 and diluted earnings per share, computed in accordance with GAAP, was $0.31 for the second quarter of 2008.

Gross margin on a non-GAAP basis in the second quarter of 2009 was 29.6%, compared to 33.2% in the second quarter of 2008, and 29.2% in the first quarter of 2009. Non-GAAP operating margin was 3.7% in the second quarter of 2009, compared to 11.5% in the second quarter of 2008, and 3.7% in the first quarter of 2009. Non-GAAP net loss was $0.02 per diluted share in the second quarter of 2009, compared to non-GAAP net income of $0.41 per diluted share in the second quarter of 2008, and non-GAAP net income of $0.04 per diluted share in the first quarter of 2009.

The differences between GAAP and non-GAAP financial measures include adjustments, net of any tax effect, for amortization of purchased intangibles, stock-based compensation, restructuring, acquisition related compensation, and litigation reserves. The accompanying schedules provide a reconciliation of financial measures computed on a GAAP basis to financial measures computed on a non-GAAP basis.

Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, "Due to normal seasonality, the second quarter is generally the slowest quarter of our fiscal year. Given this, we are pleased to achieve net revenue of $144.7 million, especially in light of the worldwide macroeconomic downturn, while at the same time reducing our "on-hand" and our distribution channels' inventory levels. Our net revenue from service providers was approximately 30% of total net revenue, as compared to 27% in the second quarter of 2008, and 27% in the first quarter of 2009. In addition, we are excited to have added Megacable of Mexico to our service provider customer list in the second quarter of 2009."

"We are keeping pace with our expectations in new product introductions and announced 12 new products in the second quarter. Among the notable launches, we introduced Stackable Power over Ethernet Smart Switches, High Performance Rackmount ReadyNAS network storage, Home Theater Powerline / Ethernet Connection Kit, and wireless router and DSL gateways for the Asian and African markets. We continue to focus on product development and will continue to launch new products. We intend to introduce another 12-15 new products in the third quarter in order to distance NETGEAR from our competition in technology and product leadership."

Christine Gorjanc, Chief Financial Officer of NETGEAR, said, "We ended the second quarter of 2009 with $224.5 million in cash, cash equivalents and short-term investments, compared to $200.3 million at the end of the first quarter of 2009, and $186.8 million at the end of the second quarter of 2008. Our net inventory ended at $75.0 million, compared to $92.0 million at the end of the first quarter of 2009 and $106.4 million at the end of the second quarter of 2008. We are also pleased to announce that our current year-to-date operating expense cost reductions is approximately $6.6 million, as compared to our total 2009 operating expense cost reduction target of $10.0 million, which was based on our annualized fourth quarter 2008 run rate."

Net revenue by geography comprises gross revenue less items such as marketing incentives paid to customers, sales returns and price protection. The following table shows net revenue by geography for the periods indicated:

Net revenue by geography: Three months ended ------------------------------------------------ June 28, 2009 March 29, 2009 June 29, 2008 ------------- -------------- ------------- North America $69,438 48% $65,219 43% $75,900 37% Europe, Middle-East and Africa 54,249 37% 74,166 49% 97,582 48% Asia Pacific 20,987 15% 12,633 8% 30,982 15% ------ -- ------ - ------ -- $144,674 100% $152,018 100% $204,464 100% -------- ---- -------- ---- -------- ----

NETGEAR also announced today that the Company will restate its financial statements for the first quarter ended March 29, 2009, due to a misapplication of FASB Interpretation No. 18, Accounting for Income Taxes in Interim Periods (FIN 18). As a result, the Audit Committee of the Board of Directors today has concluded that investors should no longer rely on the Company's previously filed financial statements for the quarter ended March 29, 2009.

The restatement relates solely to the correction of the recorded tax expense for the first quarter ended March 29, 2009. In its previously filed financial statements for the first quarter ended March 29, 2009, the Company incorrectly included a particular foreign entity with anticipated losses in calculating the Company's estimated annualized tax provision instead of calculating tax for that entity independently in accordance with FIN 18. As a result, based on the Company's preliminary analysis, the Company believes that it overstated the previously recorded tax benefit in the quarter ended March 29, 2009, by $3.8 million. Based on current projections, the Company does not expect its overall annual estimated tax provision to be affected for the entire year. The tax provision will, however, be allocated differently among the four quarters. Consequently, for the quarter ended March 29, 2009, the Company expects net income and earnings per share computed in accordance with GAAP to be negatively impacted by $3.8 million and $0.11 per share, respectively, and non-GAAP net income and earnings per share to decrease by $431,000 and $0.01 per share, respectively.

The Company will correct this misapplication by filing an amendment to its Quarterly Report on Form 10-Q with the Securities and Exchange Commission. We anticipate this amendment will be filed no later than July 30, 2009.

Mr. Lo said, "While we are disappointed to announce the restatement of our Q1 2009 financials, we would like to emphasize that this has no effect on our estimated annual 2009 tax provision based on current projections. FIN 18 requires us to allocate our overall annual tax expense among the four quarters of our fiscal year differently than how we allocated it in our previously filed Q1 2009 financials."

Looking ahead, Mr. Lo commented, "With inventory at healthy levels and currency exchange rates becoming more favorable, we expect improvement in both gross and operating margin in the third quarter of 2009. During the second half of 2009, we anticipate that sales into the channel will be roughly equivalent to sales out to end customers. In the third quarter 2009, we will introduce our full line of ProSecure security appliances and 12-Bay Super Performance Rackmount ReadyNAS network storage. Also, we anticipate that we will add several new service provider customers in the third quarter 2009. Finally, we believe we can continue to grow and gain market share in the U.S., Asia Pacific and other emerging markets. Specifically, for the third quarter 2009, we expect net revenue in the range of approximately $150 million to $160 million and non-GAAP operating margin to be in the range of 5% to 7%."

Investor Conference Call / Webcast Details

NETGEAR will review the second quarter 2009 results and discuss management's expectations for the third quarter of 2009 today, Wednesday, July 22, 2009 at 5 p.m. EDT (2 p.m. PDT). The dial-in number for the live audio call is (201) 689-8560. A live webcast of the conference call will be available on NETGEAR's website at http://www.netgear.com/. A replay of the call will be available 2 hours following the call through midnight EDT (9 p.m. PDT) on Wednesday, July 29, 2009 by telephone at (201) 612-7415 and via the web at http://www.netgear.com/. The account number to access the phone replay is 3055 and the conference ID number is 327526.

About NETGEAR, Inc.

NETGEAR designs innovative, branded technology solutions that address the specific networking, storage, and security needs of small- to medium-sized businesses and home users. The company offers an end-to-end networking product portfolio to enable users to share Internet access, peripherals, files, multimedia content, and applications among multiple computers and other Internet-enabled devices. Products are built on a variety of proven technologies such as wireless, Ethernet and powerline, with a focus on reliability and ease-of-use. NETGEAR products are sold in over 29,000 retail locations around the globe, and via more than 41,000 value-added resellers. The company's headquarters are in San Jose, Calif., with additional offices in 25 countries. NETGEAR is an ENERGY STAR partner. More information is available by visiting http://www.netgear.com/ or calling (408) 907-8000.

2009 NETGEAR, Inc. NETGEAR, the NETGEAR logo, ProSecure and ReadyNAS are trademarks or registered trademarks of NETGEAR, Inc. in the United States and/or other countries. The information contained herein is subject to change without notice. NETGEAR shall not be liable for technical or editorial errors or omissions contained herein. All rights reserved.

Contact: Joseph Villalta The Ruth Group (646) 536-7003 jvillalta@theruthgroup.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for NETGEAR, Inc.:

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words "anticipate", "expect", "believe", "will", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent NETGEAR, Inc.'s expectations or beliefs concerning future events based on information available at the time such statements were made and include statements, among others, regarding NETGEAR's expected revenue, earnings, gross and operating margin and operating income on both a GAAP and non-GAAP basis, the effect of the global economic environment on the company's business, our ability to continue implementing cost cutting measures to counteract the effects of the current economic environment, the long term future of NETGEAR's business, our ability to innovate new product offerings and continue product development efforts, current and future demand for the Company's existing and anticipated new products, our ability to continue channel inventory sales, our ability to increase distribution and market share for the Company's products domestically and worldwide and our filing of an amendment to our Form 10-Q for the quarter ended March 29, 2009 and the restated financial information therein. These statements are based on management's current expectations and are subject to certain risks and uncertainties, including, without limitation, the following: future demand for the Company's products may be lower than anticipated; consumers may choose not to adopt the Company's new product offerings or adopt competing products; product performance may be adversely affected by real world operating conditions; the Company may be unsuccessful or experience delays in manufacturing and distributing its new and existing products; telecommunications service providers may choose to slow their deployment of the Company's products or utilize competing products; the Company may be unable to collect receivables as they become due; the Company may fail to manage costs, including the cost of developing new products and manufacturing and distribution of its existing offerings; the Company may fail to successfully continue to effect operating expense savings, channel inventory information reported is estimated based on the average number of weeks of inventory on hand on the last Saturday of the quarter, as reported by certain of NETGEAR's customers; changes in the level of NETGEAR's cash resources and the company's planned usage of such resources, changes in the company's stock price and developments in the business that could increase the company's cash needs, fluctuations in foreign exchange rates, and the actions and financial health of our customers. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Further information on potential risk factors that could affect NETGEAR and its business are detailed in the Company's periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled "Part II - Item 1A. Risk Factors," pages 29 through 43, in the Company's Quarterly Report on Form 10-Q for the quarter ended March 29, 2009, filed with the Securities and Exchange Commission on May 7, 2009. NETGEAR undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Use of Non-GAAP Financial Information:

To supplement our consolidated financial statements presented on a GAAP basis, NETGEAR uses non-GAAP financial measures, which are adjusted to exclude certain expenses and tax benefits, where applicable, we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of NETGEAR's underlying operational results and trends and our marketplace performance. For example, the non-GAAP results are an indication of our baseline performance before charges that are considered by management to be outside of our core operating results. In addition, these adjusted non-GAAP results are among the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial measures prepared in accordance with generally accepted accounting principles in the United States.

-Financial Tables Attached- NETGEAR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 28, December 31, 2009 2008 ------- ----------- ASSETS Current assets: Cash and cash equivalents $224,496 $192,839 Short-term investments - 10,170 Accounts receivable, net 110,231 138,275 Inventories 75,039 112,240 Deferred income taxes 12,074 13,129 Prepaid expenses and other current assets 15,489 22,695 ------ ------ Total current assets 437,329 489,348 Property and equipment, net 17,486 20,292 Intangibles, net 10,804 13,311 Goodwill 61,439 61,400 Other non-current assets 4,767 1,858 ----- ----- Total assets $531,825 $586,209 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $25,986 $60,073 Accrued employee compensation 8,108 7,177 Other accrued liabilities 72,857 87,747 Deferred revenue 15,267 21,508 ------ ------ Total current liabilities 122,218 176,505 Non-current income taxes payable 13,741 12,357 Other non-current liabilities 6,450 6,389 ----- ----- Total liabilities 142,409 195,251 Stockholders' equity: Common stock 34 34 Additional paid-in capital 271,832 266,070 Cumulative other comprehensive income 44 67 Retained earnings 117,506 124,787 ------- ------- Total stockholders' equity 389,416 390,958 ------- ------- Total liabilities and stockholders' equity $531,825 $586,209 ======== ======== NETGEAR, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three months ended Six months ended ------------------------------- ---------------- June 28, March 29, June 29, June 28, June 29, 2009 2009 2008 2009 2008 (As Restated) -------- ----------- -------- -------- -------- Net revenue $144,674 $152,018 $204,464 $296,692 $402,618 Cost of revenue 103,414 109,087 138,055 212,501 272,346 ------- ------- ------- ------- ------- Gross profit 41,260 42,931 66,409 84,191 130,272 ------ ------ ------ ------ ------- Operating expenses: Research and development 7,496 7,353 8,584 14,849 17,322 Sales and marketing 24,464 25,902 31,192 50,366 64,220 General and administrative 7,855 8,237 7,877 16,092 15,190 Restructuring 18 676 - 694 - Litigation reserves, net 8 2,532 - 2,540 51 ------ ------ ------ ------ ------ Total operating expenses 39,841 44,700 47,653 84,541 96,783 ------ ------ ------ ------ ------ Income (loss) from operations 1,419 (1,769) 18,756 (350) 33,489 Interest income 178 304 1,040 482 2,552 Other income (expense), net (443) 1,047 (14) 604 2,829 ---- ----- --- --- ----- Income (loss) before income taxes 1,154 (418) 19,782 736 38,870 Provision for income taxes 4,434 3,352 8,718 7,786 16,580 ----- ----- ----- ----- ------ Net income (loss) $(3,280) $(3,770) $11,064 $(7,050) $22,290 ======= ======= ======= ======= ======= Net income (loss) per share: Basic $(0.10) $(0.11) $0.31 $(0.21) $0.63 ====== ====== ===== ====== ===== Diluted $(0.10) $(0.11) $0.31 $(0.21) $0.62 ====== ====== ===== ====== ===== Weighted average shares outstanding used to compute net income (loss) per share: Basic 34,399 34,351 35,354 34,375 35,335 ====== ====== ====== ====== ====== Diluted 34,399 34,351 35,792 34,375 35,881 ====== ====== ====== ====== ====== Stock-based compensation expense was allocated as follows: Cost of revenue $238 $242 $219 $480 $441 Research and development 512 520 863 1,032 1,664 Sales and marketing 1,027 1,055 881 2,082 1,728 General and administrative 919 1,099 978 2,018 1,906 NETGEAR, INC. NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Excluding amortization of purchased intangibles, stock-based compensation, restructuring, acquisition related compensation, and litigation reserves, net of tax. (In thousands, except per share data) (Unaudited) Three months ended Six months ended ------------------------------- ------------------ June 28, March 29, June 29, June 28, June 29, 2009 2009 2008 2009 2008 (As Restated) -------- ----------- -------- -------- ------- Net revenue $144,674 $152,018 $204,464 $296,692 $402,618 Cost of revenue 101,922 107,592 136,652 209,514 269,538 ------- ------- ------- ------- ------- Gross profit 42,752 44,426 67,812 87,178 133,080 ------ ------ ------ ------ ------- Operating expenses: Research and development 6,984 6,833 7,178 13,817 15,057 Sales and marketing 23,437 24,847 30,311 48,284 62,492 General and administrative 6,936 7,138 6,899 14,074 13,284 ------ ------ ------ ------ ------ Total operating expenses 37,357 38,818 44,388 76,175 90,833 ------ ------ ------ ------ ------ Income from operations 5,395 5,608 23,424 11,003 42,247 Interest income 178 304 1,040 482 2,552 Other income (expense), net (443) 1,047 (14) 604 2,829 ---- ----- --- --- ----- Income before income taxes 5,130 6,959 24,450 12,089 47,628 Provision for income taxes 5,652 5,544 9,925 11,196 18,999 ----- ----- ----- ------ ------ Net income (loss) $(522) $1,415 $14,525 $893 $28,629 ===== ====== ======= ==== ======= Net income (loss) per share: Basic $(0.02) $0.04 $0.41 $0.03 $0.81 ====== ===== ===== ===== ===== Diluted $(0.02) $0.04 $0.41 $0.03 $0.80 ====== ===== ===== ===== ===== Weighted average shares outstanding used to compute net income (loss) per share: Basic 34,399 34,351 35,354 34,375 35,335 ====== ====== ====== ====== ====== Diluted 34,399 34,602 35,792 34,691 35,881 ====== ====== ====== ====== ====== NETGEAR, INC. RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except per share data) (Unaudited) STATEMENT OF OPERATIONS DATA: Three months ended Six months ended ------------------------------- ------------------ June 28, March 29, June 29, June 28, June 29, 2009 2009 2008 2009 2008 (As Restated) -------- ----------- -------- -------- -------- GAAP gross profit $41,260 $42,931 $66,409 $84,191 $130,272 Amortization of intangible assets 1,254 1,253 1,184 2,507 2,367 Stock-based compensation expense 238 242 219 480 441 --- --- --- --- --- Non-GAAP gross profit $42,752 $44,426 $67,812 $87,178 $133,080 ======= ======= ======= ======= ======== Non-GAAP gross margin 29.6% 29.2% 33.2% 29.4% 33.1% GAAP research and development $7,496 $7,353 $8,584 $14,849 $17,322 Stock-based compensation expense (512) (520) (863) (1,032) (1,664) Acquisition related compensation - - (543) - (601) -- -- ---- -- ---- Non-GAAP research and development $6,984 $6,833 $7,178 $13,817 $15,057 ====== ====== ====== ======= ======= GAAP sales and marketing $24,464 $25,902 $31,192 $50,366 $64,220 Stock-based compensation expense (1,027) (1,055) (881) (2,082) (1,728) ------ ------ ---- ------ ------ Non-GAAP sales and marketing $23,437 $24,847 $30,311 $48,284 $62,492 ======= ======= ======= ======= ======= GAAP general and administrative $7,855 $8,237 $7,877 $16,092 $15,190 Stock-based compensation expense (919) (1,099) (978) (2,018) (1,906) ---- ------ ---- ------ ------ Non-GAAP general and administrative $6,936 $7,138 $6,899 $14,074 $13,284 ====== ====== ====== ======= ======= GAAP total operating expenses $39,841 $44,700 $47,653 $84,541 $96,783 Stock-based compensation expense (2,458) (2,674) (2,722) (5,132) (5,298) Restructuring (18) (676) - (694) - Acquisition related compensation - - (543) - (601) Litigation reserves (8) (2,532) - (2,540) (51) -- ------ -- ------ --- Non-GAAP total operating expenses $37,357 $38,818 $44,388 $76,175 $90,833 ======= ======= ======= ======= ======= NETGEAR, INC. RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED) (In thousands, except per share data) (Unaudited) STATEMENT OF OPERATIONS DATA (CONTINUED): Three months ended Six months ended ------------------------------- ------------------- June 28, March 29, June 29, June 28, June 29, 2009 2009 2008 2009 2008 (As Restated) ------ ----------- ------- ------- ------- GAAP operating income (loss) $1,419 $(1,769) $18,756 $(350) $33,489 Amortization of intangible assets 1,254 1,253 1,184 2,507 2,367 Stock-based compensation expense 2,696 2,916 2,941 5,612 5,739 Restructuring 18 676 - 694 - Acquisition related compensation - - 543 - 601 Litigation reserves 8 2,532 - 2,540 51 -- ----- -- ----- -- Non-GAAP operating income $5,395 $5,608 $23,424 $11,003 $42,247 ====== ====== ======= ======= ======= Non-GAAP operating margin 3.7% 3.7% 11.5% 3.7% 10.5% GAAP net income (loss) $(3,280) $(3,770) $11,064 $(7,050) $22,290 Amortization of intangible assets 1,254 1,253 1,184 2,507 2,367 Stock-based compensation expense 2,696 2,916 2,941 5,612 5,739 Restructuring 18 676 - 694 - Acquisition related compensation - - 543 - 601 Litigation reserves 8 2,532 - 2,540 51 Tax effect (1,218) (2,192) (1,207) (3,410) (2,419) ------ ------ ------ ------ ------ Non-GAAP net income (loss) $(522) $1,415 $14,525 $893 $28,629 ===== ====== ======= ==== ======= NET INCOME PER SHARE: Three months ended Six months ended ------------------------------- ------------------ June 28, March 29, June 29, June 28, June 29, 2009 2009 2008 2009 2008 (As Restated) ------ ----------- ------ ------ ------ GAAP net income (loss) per diluted share $(0.10) $(0.11) $0.31 $(0.21) $0.62 Amortization of intangible assets 0.04 0.04 0.03 0.07 0.07 Stock-based compensation expense 0.08 0.08 0.08 0.16 0.16 Restructuring 0.00 0.02 - 0.02 - Acquisition related compensation - - 0.02 - 0.02 Litigation reserves 0.00 0.07 - 0.07 0.00 Tax effect (0.04) (0.06) (0.03) (0.08) (0.07) ----- ----- ----- ----- ----- Non-GAAP net income (loss) per diluted share $(0.02) $0.04 $0.41 $0.03 $0.80 ====== ===== ===== ===== ===== NETGEAR, INC. SUPPLEMENTAL FINANCIAL INFORMATION (In thousands, except per share data) (Unaudited) Three months ended ----------------------------------------------------- June 28, March 29, December 31, September 28, June 29, 2009 2009 2008 2008 2008 ---- ---- ---- ---- ---- Cash, cash equivalents and short-term investments $224,496 $200,298 $203,009 $202,187 $186,828 Cash, cash equivalents and short-term investments per diluted share $6.53 $5.79 $5.84 $5.66 $5.22 Accounts receivable, net $110,231 $127,984 $138,275 $150,552 $159,039 Days sales outstanding (DSO) 69 74 81 76 71 Inventories $75,039 $92,023 $112,240 $125,711 $106,387 Ending inventory turns 5.5 4.7 4.0 3.7 5.2 Weeks of channel inventory: U.S. retail channel 12.6 10.0 9.6 11.4 13.6 U.S. distribution channel 3.8 5.4 5.2 5.5 5.1 EMEA distribution channel 5.0 5.6 5.7 5.1 6.0 APAC distribution channel 4.8 5.7 6.7 7.2 6.0 Deferred revenue $15,267 $19,375 $21,508 $13,346 $4,339 Headcount 567 568 579 568 563 Non-GAAP Diluted shares 34,399 34,602 34,780 35,721 35,792

NETGEAR, Inc.

CONTACT: Joseph Villalta of The Ruth Group, +1-646-536-7003,
jvillalta@theruthgroup.com

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

Amdocs Limited Reports Quarterly Revenue of $690 MillionKey highlights: - Third quarter revenue of $690 million, within the $670-$690 million guidance range - Third quarter non-GAAP operating income of $124 million; non-GAAP operating margin of 18.0%; GAAP operating income of $93 million - Third quarter diluted non-GAAP EPS of $0.53, excluding acquisition-related costs and equity-based compensation expense, net of related tax effects - Diluted GAAP EPS of $0.42 for the third quarter - Free cash flow of $96 million for the third quarter - 12-month backlog of $2.37 billion at the end of the third quarter - Fourth quarter fiscal 2009 guidance: Expected revenue of approximately $670-$690 million and diluted non-GAAP EPS of $0.47-$0.51, excluding acquisition-related costs and approximately $0.04-$0.05 per share of equity-based compensation expense, net of related tax effects. Diluted GAAP EPS is expected to be approximately $0.34-$0.39

ST. LOUIS, July 22 /PRNewswire-FirstCall/ -- Amdocs Limited today reported that for its fiscal third quarter ended June 30, 2009, revenue was $690.3 million, a decrease of 15.9% from last year's third quarter and down 2.9% sequentially. Net income on a non-GAAP basis was $108.6 million, or $0.53 per diluted share, compared to non-GAAP net income of $132.5 million, or $0.61 per diluted share, in the third quarter of fiscal 2008. Non-GAAP net income excludes amortization of purchased intangible assets and equity-based compensation expenses of $23.0 million, net of related tax effects, in the third quarter of fiscal 2009 and excludes such amortization, in-process research and development write-off and equity-based compensation expenses of $31.8 million, net of related tax effects, in the third quarter of fiscal 2008. The Company's GAAP net income for the third quarter of fiscal 2009 was $85.5 million, or $0.42 per diluted share, compared to GAAP net income of $100.7 million, or $0.46 per diluted share, in the prior year's third quarter.

"We are pleased with our results for the third fiscal quarter, particularly in light of the on-going strain in the global economy. Favorable foreign currency movements increased third quarter revenue and EPS relative to our expectations for the quarter. Even without currency benefits, our results were at or above the mid-point of our guidance ranges. Additionally, backlog remained stable and we continued to meet our profit and cash flow objectives, all of which are encouraging," said Dov Baharav, chief executive officer of Amdocs Management Limited.

Baharav continued, "Demand conditions, however, remain weak, particularly for large transformational projects, as our customers manage their budgets tightly. As a result, we anticipate that our revenue may continue to trend down sequentially, albeit at a moderating pace, until we see demand improve. This view is reflected in our fourth fiscal quarter guidance, and we believe this trend could persist into early fiscal 2010."

Baharav concluded, "While the pace of new deal activity is still slow, we signed important deals in the third quarter. We saw relative strength in our cable, managed services and Interactive domains, highlighted by several key wins."

-- For J:COM, Japan's largest multiple system and channel operator, Amdocs is fully modernizing the customer's billing system and replacing a competitor's CRM system, all based on the CES 7.5 product platform. -- Amdocs signed a six-year managed services contract with Elisa, a Finnish service provider, to consolidate eight billing systems across Elisa's wireless, wireline, Internet and cable TV lines of business onto the Amdocs Billing platform, as well as, deploy Amdocs Enterprise Product Catalog 7.5 to centralize information from five different existing catalogs. The new contract builds on an existing relationship with the customer, where Amdocs billing, ordering and CRM systems were previously deployed to support Elisa's wireless operations. -- Within Interactive, Amdocs signed several contracts during the third quarter, including two within the emerging markets. In Latin America, Amdocs signed a key contract with a large service provider to support its wireless portal development, digital commerce and personalization across all of its affiliates. Importantly, the deal included products based on both the QPass and ChangingWorlds technologies, demonstrating early synergies within our Interactive portfolio. Amdocs also signed two additional ChangingWorlds contracts, both in the Asia-Pacific region.

Free cash flow was $96 million for the quarter, comprised of cash flow from operations of $114 million less approximately $18 million in net capital expenditures and other.

Twelve-month backlog, which includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities, was $2.37 billion at the end of the third quarter of fiscal 2009.

Financial Outlook

Amdocs expects that revenue for the fourth quarter of fiscal 2009 will be approximately $670-$690 million. Amdocs expects diluted earnings per share on a non-GAAP basis for the fourth quarter to be $0.47-$0.51, excluding acquisition-related costs and approximately $0.04-$0.05 per share of equity-based compensation expense, net of related tax effects. Amdocs estimates GAAP diluted earnings per share for the fourth quarter will be $0.34-$0.39.

Amdocs will host a conference call on July 22, 2009 at 5 p.m. Eastern Time to discuss the Company's third quarter results. The call will be carried live on the Internet via the Amdocs website, http://www.amdocs.com/.

Non-GAAP Financial Measures

This release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, including free cash flow, non-GAAP cost of service, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP income taxes and non-GAAP net income. These non-GAAP measures exclude the following items:

-- amortization of purchased intangible assets; -- in-process research and development write-off; -- restructuring charges; -- equity-based compensation expense; and -- tax effects related to the above.

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

Amdocs believes that the presentation of non-GAAP diluted earnings per share and other financial measures, including free cash flow, non-GAAP cost of service, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP income taxes and non-GAAP net income, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations, as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.

For its internal budgeting process and in monitoring the results of the business, Amdocs' management uses financial statements that do not include amortization of purchased intangible assets, in-process research and development write-off, restructuring charges, equity-based compensation expense, and related tax effects. Amdocs' management also uses the foregoing non-GAAP financial measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Amdocs. In addition, Amdocs believes that significant groups of investors exclude these non-cash expenses in reviewing its results and those of its competitors, because the amounts of the expenses between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the expenses.

Amdocs further believes that, where the adjustments used in calculating non-GAAP diluted earnings per share are based on specific, identified amounts that impact different line items in the Consolidated Statements of Income (including cost of service, research and development, selling, general and administrative, operating income, income taxes and net income), it is useful to investors to understand how these specific line items in the Consolidated Statements of Income are affected by these adjustments.

Please refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.

About Amdocs

Amdocs is the market leader in customer experience systems innovation, enabling world-leading service providers to deliver an integrated, innovative and the intentional customer experience(TM) - at every point of service. Amdocs provides solutions that deliver customer experience excellence, combining the software, service and expertise to help its customers execute their strategies and achieve service, operational and financial excellence. A global company with revenue of $3.16 billion in fiscal 2008, Amdocs has approximately 17,000 employees and serves customers in more than 50 countries around the world. For more information, visit Amdocs at http://www.amdocs.com/.

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs ability to grow in the business markets that it serves, Amdocs ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2008 filed on December 8, 2008 and in our quarterly 6-K furnished on February 9, 2009 and May 12, 2009.

AMDOCS LIMITED Consolidated Statements of Income (in thousands, except per share data) Three months ended Nine months ended June 30, June 30, -------------------- ----------------------- 2009 2008 2009 2008 --------- --------- ----------- ---------- Revenue: License $ 26,075 $ 35,244 $ 107,879 $ 93,570 Service 664,190 785,044 2,047,309 2,243,249 --------- --------- ----------- ---------- 690,265 820,288 2,155,188 2,336,819 Operating expenses: Cost of license 537 555 2,097 2,267 Cost of service 441,777 528,437 1,381,825 1,493,134 Research and development 51,134 56,137 160,113 168,240 Selling, general and administrative 81,732 104,632 256,305 300,963 Amortization of purchased intangible assets 21,839 22,796 63,594 66,302 Restructuring charges and in-process research and development (1) - 1,780 20,780 1,780 --------- --------- ----------- ---------- 597,019 714,337 1,884,714 2,032,686 --------- --------- ----------- ---------- Operating income 93,246 105,951 270,474 304,133 Interest income (expense) and other, net 2,514 6,159 (1,014) 23,797 --------- --------- ----------- ---------- Income before income taxes 95,760 112,110 269,460 327,930 Income taxes 10,212 11,438 29,035 31,735 --------- --------- ----------- ---------- Net income $ 85,548 $ 100,672 $ 240,425 $ 296,195 ========= ========= =========== ========== Basic earnings per share $ 0.42 $ 0.49 $ 1.19 $ 1.43 ========= ========= =========== ========== Diluted earnings per share (2) $ 0.42 $ 0.46 $ 1.16 $ 1.36 ========= ========= =========== ========== Basic weighted average number of shares outstanding 202,750 206,329 202,624 207,069 ========= ========= =========== ========== Diluted weighted average number of shares outstanding 203,515 219,120 208,514 220,315 ========= ========= =========== ========== (1) Restructuring charges and in-process research and development for the nine months ended June 30, 2009 includes restructuring charges of $15,140, and in-process research and development of $5,640. (2) To reflect the impact of assumed conversion of the convertible notes, $0 and $1,486, representing interest expense and amortization of issuance costs, were added back to net income for the three and nine months ended June 30, 2009, respectively, and $985 and $2,955 were added back to net income for the three and nine months ended June 30, 2008, respectively, for the purpose of computing diluted earnings per share. AMDOCS LIMITED Selected Financial Metrics (in thousands, except per share data) Three months ended Nine months ended June 30, June 30, --------------------- ------------------------- 2009 2008 2009 2008 --------- --------- ----------- ----------- Revenue $ 690,265 $ 820,288 $ 2,155,188 $ 2,336,819 Non-GAAP operating income 124,482 146,608 388,179 415,925 Non-GAAP net income 108,555 132,463 329,680 382,400 Non-GAAP diluted earnings per share (1) $ 0.53 $ 0.61 $ 1.59 $ 1.75 Diluted weighted average number of shares outstanding 203,515 219,120 208,514 220,315 (1) To reflect the impact of assumed conversion of the convertible notes, $0 and $1,486, representing interest expense and amortization of issuance costs, were added back to net income for the three and nine months ended June 30, 2009, respectively, and $985 and $2,955 were added back to net income for the three and nine months ended June 30, 2008, respectively, for the purpose of computing diluted earnings per share. AMDOCS LIMITED Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP (in thousands) Three months ended June 30, 2009 ------------------------------------------------------ Reconciliation items --------------------------------- Amortization of purchased Equity based intangible compensation Tax GAAP assets expense effect Non-GAAP ------------------------------------------------------ Operating expenses: Cost of license $ 537 $ - $ - $ - $ 537 Cost of service 441,777 - (6,115) - 435,662 Research and development 51,134 - (1,238) - 49,896 Selling, general and administrative 81,732 - (2,044) - 79,688 Amortization of purchased intangible assets 21,839 (21,839) - - - ------------------------------------------------------ Total operating expenses 597,019 (21,839) (9,397) - 565,783 ------------------------------------------------------ ------------------------------------------------------ Operating income 93,246 21,839 9,397 - 124,482 ------------------------------------------------------ ------------------------------------------------------ Income taxes 10,212 - - 8,229 18,441 ------------------------------------------------------ ------------------------------------------------------ Net income $ 85,548 $ 21,839 $ 9,397 $ (8,229) $ 108,555 ------------------------------------------------------ Three months ended June 30, 2008 ------------------------------------------------------------ Reconciliation items -------------------------------------------- Amortization of In-process purchased research Equity based intangible and compensation Tax Non- GAAP assets development expense effect GAAP ------------------------------------------------------------ Operating expenses: Cost of license $ 555 $ - $ - $ - $ - $ 555 Cost of service 528,437 - - (5,998) - 522,439 Research and development 56,137 - - (1,104) - 55,033 Selling, general and administ- rative 104,632 - - (8,979) - 95,653 Amortization of purchased intangible assets 22,796 (22,796) - - - - Restruct- uring charges and in-process research and development 1,780 - (1,780) - - - ------------------------------------------------------------ Total operating expenses 714,337 (22,796) (1,780) (16,081) - 673,680 ------------------------------------------------------------ ------------------------------------------------------------ Operating income 105,951 22,796 1,780 16,081 - 146,608 ------------------------------------------------------------ ------------------------------------------------------------ Income taxes 11,438 - - - 8,866 20,304 ------------------------------------------------------------ ------------------------------------------------------------ Net income $100,672 $ 22,796 $ 1,780 $ 16,081 $(8,866) $132,463 ------------------------------------------------------------ AMDOCS LIMITED Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP (in thousands) Nine months ended June 30, 2009 --------------------------------------------------------------- Reconciliation items ----------------------------------------- Restruct- uring charges Amortiz- and Equity ation of in-process based purchased research compen- intangible and sation Tax Non- GAAP assets development expense effect GAAP --------------------------------------------------------------- Operating expenses: Cost of license $ 2,097 $ - $ - $ - $ - $ 2,097 Cost of service 1,381,825 - - (16,776) - 1,365,049 Research and develop- ment 160,113 - - (3,277) - 156,836 Selling, general and administ- rative 256,305 - - (13,278) - 243,027 Amortiz- ation of purchased intangible assets 63,594 (63,594) - - - - Restruct- uring charges and in- process research and develop- ment 20,780 - (20,780) - - - --------------------------------------------------------------- Total operating expenses 1,884,714 (63,594) (20,780) (33,331) - 1,767,009 --------------------------------------------------------------- --------------------------------------------------------------- Operating income 270,474 63,594 20,780 33,331 - 388,179 --------------------------------------------------------------- --------------------------------------------------------------- Income taxes 29,035 - - - 28,450 57,485 --------------------------------------------------------------- --------------------------------------------------------------- Net income $ 240,425 $ 63,594 $ 20,780 $ 33,331 $(28,450) $ 329,680 --------------------------------------------------------------- Nine months ended June 30, 2008 --------------------------------------------------------------- Reconciliation items ---------------------------------------- Amortiz- Equity ation of In-process based purchased research compen- intangible and sation Tax Non- GAAP assets development expense effect GAAP --------------------------------------------------------------- Operating expenses: Cost of license $ 2,267 $ - $ - $ - $ - $ 2,267 Cost of service 1,493,134 - - (17,711) - 1,475,423 Research and develop- ment 168,240 - - (3,626) - 164,614 Selling, general and administ- rative 300,963 - - (22,373) - 278,590 Amortiz- ation of purchased intangible assets 66,302 (66,302) - - - - Restruct- uring charges and in- process research and develop- ment 1,780 - (1,780) - - - --------------------------------------------------------------- Total operating expenses 2,032,686 (66,302) (1,780) (43,710) - 1,920,894 --------------------------------------------------------------- --------------------------------------------------------------- Operating income 304,133 66,302 1,780 43,710 - 415,925 --------------------------------------------------------------- --------------------------------------------------------------- Income taxes 31,735 - - - 25,587 57,322 --------------------------------------------------------------- --------------------------------------------------------------- Net income $ 296,195 $ 66,302 $1,780 $43,710 $(25,587) $ 382,400 --------------------------------------------------------------- AMDOCS LIMITED Condensed Consolidated Balance Sheets (in thousands) As of --------------------------- June 30, September 30, 2009 2008 ----------- ------------- ASSETS Current assets Cash, cash equivalents and short-term interest-bearing investments $ 1,280,289 $ 1,244,378 Accounts receivable, net, including unbilled of $44,439 and $48,264 respectively 507,507 573,764 Deferred income taxes and taxes receivable 106,906 84,515 Prepaid expenses and other current assets 95,224 102,930 ----------- ------------- Total current assets 1,989,926 2,005,587 Equipment and leasehold improvements, net 279,247 317,081 Goodwill and other intangible assets, net 1,790,572 1,796,922 Other noncurrent assets 439,104 459,473 ----------- ------------- Total assets $ 4,498,849 $ 4,579,063 =========== ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accruals $ 429,533 $ 600,285 Short-term portion of financing arrangements 1,037 1,660 Deferred revenue 185,097 197,851 Deferred income taxes and taxes payable 24,358 30,228 ----------- ------------- Total current liabilities 640,025 830,024 0.50% Convertible notes 1,020 450,000 Long-term loan 300,000 - Noncurrent liabilities and other 483,135 493,848 Shareholders' equity 3,074,669 2,805,191 ----------- ------------- Total liabilities and shareholders' equity $ 4,498,849 $ 4,579,063 =========== ============= AMDOCS LIMITED Consolidated Statements of Cash Flows (in thousands) Nine months ended June 30, -------------------------- 2009 2008 ----------- ---------- Cash Flow from Operating Activities: Net income $ 240,425 $ 296,195 Reconciliation of net income to net cash provided by operating activities: Depreciation and amortization 147,869 143,978 In-process research and development 5,640 1,780 Loss (gain) on sale of equipment 67 (55) Equity-based compensation expense 33,331 43,710 Deferred income taxes 13,097 6,378 Gain on repurchase of convertible notes (2,185) - Excess tax benefit from equity-based compensation (10) (209) Loss from short-term interest-bearing investments 5,821 1,771 Net changes in operating assets and liabilities, net of amounts acquired: Accounts receivable 63,843 (148,472) Prepaid expenses and other current assets 6,875 8,166 Other noncurrent assets 2,263 (40,420) Accounts payable, accrued expenses and accrued personnel (139,466) (20,728) Deferred revenue 8,815 12,283 Income taxes payable (12,638) (25,429) Noncurrent liabilities and other (38,268) 26,590 ----------- ---------- Net cash provided by operating activities 335,479 305,538 ----------- ---------- Cash Flow from Investing Activities: Proceeds from sale of equipment and leasehold improvements 429 1,103 Payments for purchase of equipment and leasehold improvements (65,474) (101,530) Proceeds from sale of short-term interest-bearing investments 601,844 575,602 Purchase of short-term interest-bearing investments (676,472) (513,462) Net cash paid for acquisition (61,890) (56,970) ----------- ---------- Net cash used in investing activities (201,563) (95,257) ----------- ---------- Cash Flow from Financing Activities: Borrowing under long-term financing arrangements 450,000 - Payments under long-term financing arrangements (150,000) - Redemption of convertible notes (330,780) (174) Repurchase of convertible notes (116,015) - Repurchase of shares (20,014) (172,339) Payments under capital lease and short-term financing arrangements (3,632) - Borrowing under short-term financing arrangements 540 - Proceeds from employee stock options exercised 2,026 33,755 Excess tax benefit from equity-based compensation 10 209 ----------- ---------- Net cash used in financing activities (167,865) (138,549) ----------- ---------- Net (decrease) increase in cash and cash equivalents (33,949) 71,732 Cash and cash equivalents at beginning of period 718,850 615,501 ----------- ---------- Cash and cash equivalents at end of period $ 684,901 $ 687,233 =========== ========== AMDOCS LIMITED Supplementary Information (in millions) ---------------------------------------------------------- Three months ended ---------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2009 2009 2008 2008 2008 -------- --------- ------------ ------------- -------- North America $ 527.7 $ 539.8 $ 561.6 $ 558.7 $ 570.5 Europe 84.4 105.0 111.4 150.9 133.0 Rest of World 78.2 66.3 80.8 115.7 116.8 -------- --------- ------------ ------------- -------- Total Revenue $ 690.3 $ 711.1 $ 753.8 $ 825.3 $ 820.3 ======== ========= ============ ============= ======== ---------------------------------------------------------- Three months ended ---------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2009 2009 2008 2008 2008 -------- --------- ------------ ------------- -------- Customer Experience $ 647.9 $ 668.0 $ 701.0 $ 756.5 $ 756.9 Systems Directory 42.4 43.1 52.8 68.8 63.4 -------- --------- ------------ ------------- -------- Total Revenue $ 690.3 $ 711.1 $ 753.8 $ 825.3 $ 820.3 ======== ========= ============ ============= ======== ---------------------------------------------------------- As of ---------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2009 2009 2008 2008 2008 -------- --------- ------------ ------------- -------- 12-Month Backlog $ 2,370 $ 2,370 $ 2,400 $ 2,420 $ 2,420 -------- --------- ------------ ------------- --------

Amdocs Limited

CONTACT: Thomas G. O'Brien, Treasurer and Vice President of Investor
Relations of Amdocs Limited, +1-314-212-8328, dox_info@amdocs.com

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

LSI Announces Agreement to Acquire ONStor, Inc.Combination to create expanded portfolio of network-attached and unified storage solutions to help enterprises address rapid growth of unstructured data

MILPITAS, Calif., July 22 /PRNewswire-FirstCall/ -- LSI Corporation today announced that it has signed a definitive agreement to acquire ONStor, Inc. for approximately $25 million in cash inclusive of assumed debt and other net liabilities.

ONStor, Inc., a privately held company based in Campbell, Calif., provides clustered network-attached storage (NAS) solutions designed to help enterprises consolidate, protect and manage the accelerating growth of unstructured data. ONStor(TM) products include NAS gateways, NAS systems and unified storage systems sold to end users through a worldwide network of channel partners and original equipment manufacturers (OEMs).

"The rapid growth of unstructured data is creating significant challenges for enterprises in provisioning, protecting and managing their storage in an efficient and cost-effective manner," said Abhi Talwalkar, LSI president and chief executive officer. "With the addition of ONStor products and technology, LSI will be well positioned to offer a comprehensive set of storage solutions to help enterprise customers effectively manage both their unstructured and structured data with ease."

The transaction is expected to close within thirty days and is subject to satisfaction of customary closing conditions.

LSI expects the acquisition to be roughly neutral to non-GAAP* earnings per share in 2009. The company expects to provide further details on July 29 when it reports second quarter results.

* GAAP refers to Generally Accepted Accounting Principles. Non-GAAP earnings per share exclude goodwill and other intangible asset impairment, stock-based compensation, amortization of acquisition-related intangibles, restructuring of operations and other items, net, purchase accounting effect on inventory, 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.

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: the successful consummation of the transaction announced above; our ability to successfully integrate and manage the ONStor business; our reliance on major customers and suppliers; our ability to keep up with rapid technological change; our ability to compete successfully in competitive markets; the successful transition of 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 & Design logo 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

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

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

RealNetworks Announces Preliminary Revenue and Impairment Charges for the Second Quarter of 2009

SEATTLE, July 22 /PRNewswire-FirstCall/ -- RealNetworks, Inc. today announced that it expects to report revenue of $134 million to $136 million for the second quarter of 2009. The company will release its second quarter earnings after the market closes on July 30, 2009, and will hold a conference call for analysts and investors at 2 p.m. PT on that day.

The company also expects to report a non-cash charge of up to $176 million to reflect an impairment to all or substantially all of the company's goodwill. The impairment results primarily from the company's market capitalization trading below its book value for a sustained period of time and does not reflect a change in the company's view of its business prospects or expected future results. The charge does not affect the company's cash position or cash flows from operating activities.

The company ended the second quarter of 2009 with $363 million in cash and cash equivalents. The decrease in cash and cash equivalents from the first quarter balance of $376 million was due primarily to working capital changes in the second quarter.

The company is performing the goodwill impairment assessment under SFAS 142 "Goodwill and Other Intangible Assets" for the period ended June 30, 2009, and expects to complete this analysis prior to the earnings announcement on July 30.

Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to RealNetworks' current expectations of operating results for, and impairment charges to be recorded in, the second quarter of 2009 and future operating results, cash position, cash flows and business prospects. Actual results may differ materially from the results predicted. Factors that could cause actual results to differ from the results predicted include changes based on the completion of the accounting and the audit of 2009 financial results. More information about potential risk factors that could affect RealNetworks' business and financial results is included in RealNetworks' annual report on Form 10-K for the most recent year ended December 31, and its quarterly reports on Form 10-Q and from time to time in other reports filed by RealNetworks with the Securities and Exchange Commission. The preparation of our financial statements and forward-looking financial guidance requires us to make estimates and assumptions that affect the reported amount of assets and liabilities and the reported amounts of revenues and expenses during the reported period. The company assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates.

About Real Networks

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

RealNetworks, Inc.

CONTACT: Marj Charlier, +1-206-892-6718, mcharlier@real.com, or
Elizabeth Pheasant, +1-206-674-2330, epheasant@real.com, both of RealNetworks,
Inc.

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

Alliance Data Reports Second-Quarter Results* Reiterates Full-Year Cash Earnings per Share Guidance of $5.15, up 17 percent from Prior Year * Epsilon Marketing Services Returns to Growth

DALLAS, July 22 /PRNewswire-FirstCall/ -- Alliance Data Systems Corporation , a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced results for the second quarter ended June 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20051024/ADSLOGO )

Total second-quarter 2009 revenue of $460 million, adjusted EBITDA of $125 million, net income of $29.4 million, net income per diluted share of $0.51 and cash earnings per diluted share of $0.95 represented declines of 9 percent, 23 percent, 37 percent, 15 percent, and 9 percent, respectively, versus the second quarter of 2008. See "Financial Measures" below for a discussion of adjusted EBITDA, cash earnings per diluted share and other non-GAAP financial measures.

Excluding changes in the foreign exchange rate for the Canadian dollar, revenue would have been $486 million, representing a 4-percent decline; adjusted EBITDA would have been $149 million, representing an 8-percent decline; and cash earnings per diluted share would have increased 16 percent to $1.21, compared to the second quarter of 2008 in each case.

The Company's previously issued second-quarter guidance for cash earnings per diluted share of $1.05 assumed an exchange rate of $0.80 US per Canadian dollar. Actual results reflect a significantly stronger Canadian dollar, which averaged $0.86 US per Canadian dollar for the quarter. The higher Canadian dollar benefited Canadian operations by approximately $3 million, but resulted in a $16 million foreign exchange loss on its U.S. dollar denominated investments. Thus, against guidance, results were impacted by a net $13 million foreign exchange loss, or $0.14 on a cash earnings per diluted share basis. Had the Canadian dollar tracked to the Company's guidance of an exchange rate of $0.80 US per Canadian dollar, cash earnings per diluted share would have been $1.09, or $0.04 above guidance.

The $0.14 incremental foreign exchange loss is not expected to impact the Company's ability to achieve its full-year guidance. It is expected that a stronger Canadian dollar will continue to benefit operations in the third and fourth quarters and mitigate the impact of the second-quarter loss.

In summary, in 2009 versus the prior year, the Company is facing three major headwinds: higher loss rates amounting to $90 million; interest only strip grow-over of $30 million related to the Company's securitization program; and an impact of $40 million due to foreign exchange rate fluctuations. In total, these headwinds equate to $160 million, or approximately $1.75 of a negative impact to cash earnings per diluted share. The Company expects the first half of the year to be the most challenging.

Ed Heffernan, president and chief executive officer of Alliance Data, commented, "Despite these significant headwinds that we faced this quarter and a challenging first half of the year, we saw positive trends in all of our businesses this quarter.

"We announced sizeable client wins, expansions and/or renewals across all three businesses and also successfully completed several capital raising transactions for securing additional liquidity for both corporate operations and Private Label funding."

Heffernan continued, "Our Loyalty Services segment, specifically the Canadian AIR MILES Reward Miles program, continued its strong performance. This quarter Epsilon has returned to solid organic growth, and our Private Label business is showing accelerated growth in sales, portfolio size, and statements, as well as lower funding costs and stabilizing delinquencies. Also, while the U.S. unemployment rate continues to increase above all initial estimates, we believe our strategy of continuing to grow our private label file through the addition of high-quality accounts while writing-off the less creditworthy accounts will serve as a stabilizing force against factors associated with higher macro unemployment.

"Combined, these positive factors are helping to mitigate many of the headwinds. With our plans to acquire additional private label files and continue with our highly accretive common stock repurchase program, we remain confident with meeting our full-year cash earnings per diluted share guidance. Looking ahead, 2010 is shaping up nicely as all three businesses are well positioned for growth, which along with a significantly lower share count and much of the headwinds behind us, should drive strong results and even more significant free cash flow per share."

SEGMENT REVIEW

Loyalty Services: On a constant currency basis, revenue was relatively flat as compared to the prior year period ($193 million for the second quarter of 2009 versus $200 million in the prior year) reflecting a slowdown in collectors redeeming their AIR MILES reward miles and lower revenue from other products. U.S. dollar reported segment revenue was $167 million, or a 16 percent decline. This suggests that collectors are "hoarding" reward miles and viewing them as a liquidity source to be tapped as needed until the recession recedes.

On a constant currency basis, adjusted EBITDA continued at a strong pace, growing 17 percent to $62 million versus $53 million last year. Results continue to be driven by prior years' strong issuance growth combined with firm pricing, virtually 100 percent client retention, a fully built-out infrastructure and strong leverage on reward costs. The slowdown in redemptions softened revenue but had little impact on earnings. Adjusted EBITDA margin expanded to 32 percent, reflecting continued leverage in the program and the impact of the reduced low-margin redemption and other product revenue. Operating EBITDA added $31 million of cash flow above the reported adjusted EBITDA, reflecting primarily the timing of cash receipts/disbursements.

Reward miles issued, a key metric to drive future earnings, as expected remained soft but is trending in the right direction. Issuance was down less than 2 percent in the second quarter versus the prior year period, reflecting a moderate improvement from the first quarter's decline of 4 percent. Soft issuance can be attributed to less usage on sponsors' credit card programs as consumers cut back on discretionary spend and the continued grow-over from high gas prices last year, which drove strong issuance.

Outlook: On a constant currency basis, full-year revenue is expected to increase in the single-digits reflecting the slowdown in reward miles redeemed, while adjusted EBITDA is expected to continue with strong double-digit organic growth for the year. Operating EBITDA is back on track and is expected to add approximately $40 million of cash flow to reported results for the year.

Reward miles issued growth is expected to turn positive in the third quarter and exit the year in the high single-digit growth range. The grow-over impact from issuances from high gas prices will anniversary in the third quarter and the fourth quarter, as will the softness in consumer spend on sponsors' credit cards in the fourth quarter. The combined impact of these anniversaries is expected to return reward miles issued to positive growth rates. As announced last week, the launch of BMO Bank of Montreal's new and increased value proposition on the bulk of its credit cards is expected to be a significant driver in additional issuance growth.

Finally, the headwind from a weaker Canadian dollar this year ($0.85 full-year 2009 estimate versus $0.94 in 2008) will continue to dissipate and finally anniversary in the fourth quarter. This impact from the lower exchange rate and foreign exchange losses on U.S. investments will hit 2009 for approximately $40 million in adjusted EBITDA (over $0.40 per share). Fortunately, two-thirds have been absorbed through the first half of 2009 and the full anniversary will occur in the fourth quarter leading to a strong start in 2010.

Epsilon Marketing Services: Epsilon returned to growth in the second quarter after two quarters of flat performance. Revenue grew 7 percent to $123 million, and adjusted EBITDA grew by 15 percent to $30 million versus the second quarter of last year. The segment's largest service offerings, including database and digital marketing solutions, continued to drive the results, and Epsilon's large database clients maintained or expanded their significant commitments to their loyalty programs. Additionally, Epsilon signed a record number of new digital clients in the first half of the year as marketing dollars continued to shift away from traditional spending verticals and into Epsilon's highly targeted ROI-based universe. The remaining one-third of Epsilon's business, consisting of proprietary data services including the Abacus catalog coalition, turned in a flat performance versus prior year. The Company views this as a positive trend that will lead to future growth.

Outlook: Epsilon's return to solid growth is consistent with the Company's previous guidance of approximately 7 percent top and bottom line organic growth for the full year. Despite tremendous cutbacks in marketing spend across the globe, the ongoing migration away from traditional channels and toward Epsilon's transactional and digital based offerings continues. The pipeline at Epsilon is the strongest in the history of the business, resulting from both signed deals and deals in progress.

Private Label Services and Private Label Credit: The financial performance for Private Label Services and Private Label Credit continued to negatively affect the Company's overall performance. For the second quarter of 2009, Private Label Services revenue and adjusted EBITDA were down 10 percent and 18 percent, respectively, versus the prior year. Private Label Credit revenue and adjusted EBITDA were down 17 percent and 39 percent, respectively, versus the prior year. On a combined basis, eliminating intercompany activity between the two, Private Label revenue of $159 million was down 16 percent from the second quarter 2008, and adjusted EBITDA of $63 million was down 33 percent, or $30 million, from the second quarter 2008. Despite this performance, new client signings and a return to positive trends, specifically credit sales, portfolio growth, funding and delinquencies, were seen. Recent signings from both Justice and Big M, Inc. following the first-quarter signings of HSN, Haband and Springstone Financial continue to demonstrate that private label programs provide retailers with a proven tool to drive their sales.

Credit losses increased to 9.8 percent during the quarter, reflecting both the expected seasonal upturn in losses as well as the more challenging macro environment for the Company's retail clients. Losses were up approximately 300 basis points versus the prior year, which resulted in a decrease of approximately $30 million on revenue and adjusted EBITDA for the quarter. The loss rate is running approximately 50 basis points above the unemployment rate, somewhat better than the expected spread, but offset by higher than expected unemployment levels. Delinquencies remained stable at 6.2 percent for the quarter. This marks the fourth consecutive quarter of stable delinquencies.

Credit sales growth continued to accelerate and grew 6 percent in the second quarter versus last year, double the 3 percent growth rate in the first quarter. This positive trend follows last year where sales were down 3 percent for the entire year. Portfolio growth continued to grow solidly and posted a 10 percent growth rate in the quarter, consistent with the Company's long-term average. Funding rates for the second quarter declined versus the prior year and benefited from the return of liquidity to the markets. Specifically, spreads on borrowings narrowed, and the Company placed $709 million in term fixed-rate borrowings and completed the renewal of a $550 million conduit facility, securing liquidity at favorable rates and ensuring additional available funding for both existing and new private label programs.

Statements generated for the second quarter grew approximately 2 percent versus the prior year, which is another positive growth trend following the first quarter's flat year-over-year performance.

Outlook: Improved performance is expected to accelerate from a combination of the positive trends outlined above, anticipated file acquisitions, and the diminishing spread in year-over-year credit losses. The Company expects adjusted EBITDA for the fourth quarter to be flat versus the prior year.

Of interest is the lessening of the spread between credit losses and the unemployment rate. Historically, credit losses run approximately 100-120 basis points above the unemployment rate. However, during the first quarter of 2009, the spread narrowed to approximately 70 basis points while in the second quarter it narrowed to approximately 50 basis points as a result of adding high-quality accounts and writing-off accounts that are no longer creditworthy. The Company expects this compression to continue. Additionally, this trend further supports the Company's belief that private label will move from a deficit to a flat position by the fourth quarter and return to positive growth in 2010.

Capital Structure and Liquidity

During the second quarter, the Company completed a $345 million convertible debt deal as well as a new $161 million bank facility. Over half the proceeds were used to pay off $250 million in private placement notes, which matured in May 2009. Much of the remaining proceeds were used to repurchase stock. The current net core debt to LTM Operating EBITDA ratio is 2.4x, well inside the Company's targeted level of 3x.

The Company also continued its stock repurchase program in the second quarter with more than $225 million in funds utilized, covering over 5 million shares. To date, the Company has completed $1.4 billion of its $1.8 billion program and has repurchased approximately 27 million shares, or one-third of fully-diluted shares outstanding when the program began.

At the corporate level, the Company has approximately $600 million in available liquidity to support operations. It consists of approximately $300 million of availability on existing bank loan facilities, approximately $100 million in cash on hand and an anticipated $200 million in cash flow from operations through year-end.

In addition to corporate liquidity, the Private Label business has secured approximately $5.5 billion of available funding via numerous sources, primarily consisting of FDIC insured CDs, bank conduits, existing term debt and new term debt via the TALF program. This provides $1.3 billion of excess capacity based on the current managed receivable portfolio size of $4.2 billion.

THIRD-QUARTER OUTLOOK

The Company's current guidance for third quarter cash earnings per diluted share is $1.34, up 10 percent over the prior year. The guidance uses the second-quarter cash earnings per diluted share of $0.95 as a starting point and adds the following factors: Epsilon seasonality $0.10; Private Label seasonality $0.10; the impact of the stock repurchase program $0.05; and non-recurrence of the second-quarter foreign exchange loss of $0.14. The exchange rate assumed for this guidance is $0.87 US to $1 CDN. On a constant currency basis, cash earnings per diluted share guidance is $1.40, up 15 percent over the third quarter of 2008.

FULL-YEAR 2009 OUTLOOK

The Company is maintaining full-year guidance of $5.15 cash earnings per diluted share, an increase of 17 percent versus the prior year. On a constant currency basis, cash earnings per diluted share guidance is $5.55, up 25 percent versus the prior year. Key factors assumed in meeting guidance for the full-year include: foreign exchange averages $0.87 US to $1 CDN for the balance of 2009; LoyaltyOne, Epsilon and Private Label businesses continue as expected and outlined; moderate size portfolio acquisition; and accretion from the Company's common stock repurchase program.

Financial Measures

In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, the Company presents financial measures that are non-GAAP measures, such as constant currency financial measures, adjusted EBITDA, operating EBITDA, cash earnings and cash earnings per diluted share. Constant currency eliminates the effect of foreign currency fluctuations. These non-GAAP financial measures exclude the loss associated with the sale of the Mail Services business unit, costs associated with the terminated merger with affiliates of The Blackstone Group and other costs. The Company believes that these non-GAAP financial measures, viewed in addition to and not in lieu of the Company's reported GAAP results, provide useful information to investors regarding the Company's performance and overall results of operations. These metrics are an integral part of the Company's internal reporting to measure the performance of reportable segments and the overall effectiveness of senior management. Reconciliations to comparable GAAP financial measures are available in the accompanying schedules and on the Company's website. The financial measures presented are consistent with the Company's historical financial reporting practices. The non-GAAP financial measures presented herein may not be comparable to similarly titled measures presented by other companies, and are not identical to corresponding measures used in our various agreements or public filings.

Conference Call

Alliance Data will host a conference call on July 22, 2009 at 5:00 p.m. (Eastern) to discuss the Company's second-quarter results. The conference call will be available via the Internet at http://www.alliancedata.com/. There will be several slides accompanying the webcast. Please go to the website at least 15 minutes prior to the call to register, download and install any necessary software. The recorded webcast will also be available on the Company's website.

If you are unable to participate in the conference call, a replay will be available. To access the replay, please dial 706-645-9291 and enter "18453283". The replay will be available from two hours after the end of the call until 11:59 P.M. (Eastern Time) on July 29, 2009.

About Alliance Data

Alliance Data and its family of businesses is a leading provider of loyalty and marketing solutions derived from transaction-rich data. Through the creation and deployment of customized solutions that measurably change consumer behavior, Alliance Data helps its clients to create and enhance customer loyalty to build stronger, mutually beneficial relationships with their customers. The Company manages millions of customer relationships for some of North America's largest and most recognizable brands, helping them grow their businesses and drive profitability. Headquartered in Dallas, Alliance Data employs approximately 7,000 associates at approximately 50 locations worldwide. Alliance Data is a leading provider of marketing-driven credit solutions, and is the parent company of Epsilon , a leading provider of multi-channel, data-driven technologies and marketing services, and LoyaltyOne(TM), which owns and operates the AIR MILES Reward Program, Canada's premier coalition loyalty program. For more information about the company, visit its web site, http://www.alliancedata.com/.

Alliance Data's Safe Harbor Statement/Forward Looking Statements

This release may contain 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. Such statements may use words such as "anticipate," "believe," "estimate," "expect," "intend," "predict," "project" and similar expressions as they relate to us or our management. When we make forward-looking statements, we are basing them on our management's beliefs and assumptions, using information currently available to us. Although we believe that the expectations reflected in the forward-looking statements are reasonable, these forward-looking statements are subject to risks, uncertainties and assumptions, including those discussed in our filings with the Securities and Exchange Commission.

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements contained in this presentation reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We have no intention, and disclaim any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this presentation regarding Alliance Data Systems Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K for the most recently ended fiscal year. Risk factors may be updated in Item 1A in each of the Company's Quarterly Reports on Form 10-Q for each quarterly period subsequent to the Company's most recent Form 10-K.

ALLIANCE DATA SYSTEMS CORPORATION SUMMARY FINANCIAL HIGHLIGHTS (In millions, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 Change 2009 2008 Change Revenue $460.4 $507.2 (9)% $940.7 $1,006.5 (7)% Net income $29.4 $46.9 (37)% $57.3 $96.3 (40)% Net income per share - diluted $0.51 $0.60 (15)% $0.96 $1.21 (21)% Adjusted EBITDA $124.7 $161.9 (23)% $276.7 $326.4 (15)% Operating EBITDA $156.0 $169.3 (8)% $294.8 $344.5 (14)% Cash Earnings $55.1 $81.7 (33)% $128.6 $162.5 (21)% Cash Earnings per share - diluted $0.95 $1.04 (9)% $2.15 $2.04 5% As of As of June 30, December 31, 2009 2008 ---- ---- Cash and cash equivalents $118.4 $156.9 Seller's interest and credit card receivables 691.3 639.6 Redemption settlement assets 524.7 531.6 Intangible assets, net 273.3 297.8 Goodwill 1,145.2 1,133.8 Total assets 4,369.4 4,342.0 Deferred revenue 1,028.4 995.6 Certificates of deposit 797.8 688.9 Debt(1) 1,732.6 1,491.3 Total liabilities 4,110.5 3,794.7 Stockholders' equity 258.9 547.3 (1) Excludes certificates of deposit. Included in debt is a discount of $329.5 million and $235.9 million as of June 30, 2009 and December 31, 2008, respectively, associated with the Company's convertible debt as a result of the adoption of FSP APB 14-1 - "Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Settlement)". ALLIANCE DATA SYSTEMS CORPORATION SUMMARY FINANCIAL HIGHLIGHTS (In millions) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 Change 2009 2008 Change Segment Revenue: Loyalty Services $167.4 $200.0 (16)% $328.0 $371.8 (12)% Epsilon Marketing Services 123.0 115.4 7 240.6 230.8 4 Private Label Services 85.8 95.8 (10) 184.2 190.4 (3) Private Label Credit 156.2 187.6 (17) 342.7 396.7 (14) Corporate/Other 10.7 1.6 Nm 23.1 2.1 Nm Intersegment (82.7) (93.2) (11) (177.9) (185.3) (4) $460.4 $507.2 (9)% $940.7 $1,006.5 (7)% Segment Adjusted EBITDA: Loyalty Services $38.4 $53.5 (28)% $93.3 $94.2 (1)% Epsilon Marketing Services 30.4 26.4 15 52.5 50.0 5 Private Label Services 24.6 29.9 (18) 54.5 56.9 (4) Private Label Credit 38.5 63.6 (39) 96.4 150.7 (36) Corporate/Other (7.2) (11.5) (37) (20.0) (25.4) (21) $124.7 $161.9 (23)% $276.7 $326.4 (15)% Key Performance Indicators: Private label statements generated 31.3 30.8 2% 63.3 62.6 1% Average managed receivables $4,207.7 $3,831.4 10% $4,243.5 $3,869.1 10% Private label credit sales $1,976.9 $1,863.8 6% $3,553.1 $3,401.9 4% AIR MILES Reward Miles issued 1,122.6 1,139.9 (2)% 2,108.8 2,162.9 (3)% AIR MILES Reward Miles redeemed 757.0 786.3 (4)% 1,554.0 1,487.9 4% Nm-Not Meaningful ALLIANCE DATA SYSTEMS CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Total revenue $460.4 $507.2 $940.7 $1,006.5 Total operating expenses 377.7 393.1 756.2 773.8 Operating income 82.7 114.1 184.5 232.7 Interest expense, net 34.6 13.9 66.2 31.0 Income from continuing operations before income taxes 48.1 100.2 118.3 201.7 Income tax expense 18.7 38.3 45.9 77.0 Income from continuing operations 29.4 61.9 72.4 124.7 Loss from discontinued operations, net of taxes - (15.0) (15.1) (28.4) Net income $29.4 $46.9 $57.3 $96.3 Per share data: Basic - Income from continuing operations $0.52 $0.81 $1.23 $1.61 Basic - Loss from discontinued operations - (0.20) (0.26) (0.37) Basic - Net income $0.52 $0.61 $0.97 $1.24 Diluted - Income from continuing operations $0.51 $0.79 $1.21 $1.57 Diluted - Loss from discontinued operations - (0.19) (0.25) (0.36) Diluted - Net income $0.51 $0.60 $0.96 $1.21 Weighted average shares outstanding - basic 56.9 76.6 59.0 77.5 Weighted average shares outstanding - diluted 57.8 78.6 59.7 79.5 ALLIANCE DATA SYSTEMS CORPORATION RECONCILIATION OF NON-GAAP INFORMATION (In millions, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Adjusted EBITDA and Operating EBITDA: Income from continuing operations (GAAP measure) $29.4 $61.9 $72.4 $124.7 Stock compensation expense 10.7 7.7 28.7 14.0 Income tax expense 18.7 38.3 45.9 77.0 Interest expense, net 34.6 13.9 66.2 31.0 Depreciation and other amortization 15.3 17.6 30.4 35.3 Amortization of purchased intangibles 15.9 16.8 30.1 34.0 Loss on sale of assets - - - 1.0 Merger and other costs 0.1 5.7 3.0 9.4 Adjusted EBITDA 124.7 161.9 276.7 326.4 Change in deferred revenue(1) 82.3 373.2 32.8 351.0 Change in redemption settlement assets(1) (10.4) (365.6) 6.9 (356.0) Foreign currency impact (40.6) (0.2) (21.6) 23.1 Operating EBITDA $156.0 $169.3 $294.8 $344.5 Cash Earnings: Income from continuing operations (GAAP measure) $29.4 $61.9 $72.4 $124.7 Add back non-cash non-operating items and merger and other costs: Stock compensation expense 10.7 7.7 28.7 14.0 Amortization of purchased intangibles 15.9 16.8 30.1 34.0 Non-cash interest expense(2) 14.0 - 26.1 - Loss on the sale of assets - - - 1.0 Merger and other costs 0.1 5.7 3.0 9.4 Income tax effect (3) (15.0) (10.4) (31.7) (20.6) Cash earnings $55.1 $81.7 $128.6 $162.5 Weighted average shares outstanding - diluted 57.8 78.6 59.7 79.5 Cash earnings per share - diluted $0.95 $1.04 $2.15 $2.04 (1) Increases to deferred revenue and redemption settlement assets in 2008 from a transaction completed with the Bank of Montreal in the second quarter of 2008. (2) Represents amortization of imputed interest expense associated with our convertible debt and the adoption of FSP APB No. 14-1 and related amortization of debt issuance costs. (3) Represents income taxes adjusted for the related tax benefit or expense for the non-GAAP measure adjustments. ALLIANCE DATA SYSTEMS CORPORATION RECONCILIATION OF SEGMENT ADJUSTED EBITDA (In millions) (Unaudited) Three months ended June 30, 2009 Merger & Depreciation Stock other non- Operating & compensation routine Adjusted Income amortization expense costs EBITDA(1) Loyalty Services $31.1 $5.0 $2.3 $- $38.4 Epsilon Marketing Services 10.7 17.8 1.9 - 30.4 Private Label Services 20.9 2.3 1.4 - 24.6 Private Label Credit 34.8 3.4 0.3 - 38.5 Corporate/ Other (14.8) 2.7 4.8 0.1 (7.2) $82.7 $31.2 $10.7 $0.1 $124.7 Three months ended June 30, 2008 Merger & Depreciation Stock other non- Operating & compensation routine Adjusted Income amortization expense costs EBITDA(1) Loyalty Services $42.3 $8.2 $3.0 $- $53.5 Epsilon Marketing Services 4.2 18.9 0.7 2.6 26.4 Private Label Services 25.9 2.2 1.2 0.6 29.9 Private Label Credit 60.4 2.8 0.4 - 63.6 Corporate/ Other (18.7) 2.3 2.4 2.5 (11.5) $114.1 $34.4 $7.7 $5.7 $161.9 Six Months ended June 30, 2009 Merger & Depreciation Stock other non- Operating & compensation routine Adjusted Income amortization expense costs EBITDA(1) Loyalty Services $77.0 $10.0 $6.3 $- $93.3 Epsilon Marketing Services 13.5 33.8 5.2 - 52.5 Private Label Services 46.2 4.6 3.7 - 54.5 Private Label Credit 88.3 7.1 1.0 - 96.4 Corporate/ Other (40.5) 5.0 12.5 3.0 (20.0) $184.5 $60.5 $28.7 $3.0 $276.7 Six Months ended June 30, 2008 Merger & Depreciation Stock other non- Operating & compensation routine Adjusted Income amortization expense costs EBITDA(1) Loyalty Services $73.2 $16.6 $4.4 $- $94.2 Epsilon Marketing Services 7.8 38.1 1.5 2.6 50.0 Private Label Services 48.9 4.5 2.0 1.5 56.9 Private Label Credit 144.3 5.6 0.8 - 150.7 Corporate/ Other (41.5) 4.5 5.3 6.3 (25.4) $232.7 $69.3 $14.0 $10.4 $326.4 (1) Represents segment Adjusted EBITDA and is equal to operating income plus depreciation, amortization, stock compensation expense and merger and other costs.

Photo: http://www.newscom.com/cgi-bin/prnh/20051024/ADSLOGO Alliance Data Systems Corporation

CONTACT: Investors/Analysts, Julie Prozeller of Financial Dynamics for
Alliance Data, +1-212-850-5721, alliancedata@fd.com; or Media, Shelley Whiddon
of Alliance Data, +1-972-348-4310, Shelley.Whiddon@AllianceData.com

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

Qualcomm Announces Third Quarter Fiscal 2009 ResultsRevenues $2.8 Billion, EPS $0.44 Pro Forma EPS $0.54 Raises Fiscal 2009 Revenue and Operating Income Guidance

SAN DIEGO, July 22 /PRNewswire-FirstCall/ -- Qualcomm Incorporated , a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the third quarter of fiscal 2009 ended June 28, 2009.

Third Quarter Results (GAAP) -- Revenues: $2.75 billion, compared to $2.76 billion in the prior year and $2.46 billion in the prior quarter. -- Operating income: $894 million, compared to $824 million in the prior year and an operating loss of $10 million in the prior quarter.* -- Net income: $737 million, compared to $748 million in the prior year and a net loss of $289 million in the prior quarter.* -- Diluted earnings per share: $0.44, compared to $0.45 in the prior year and diluted loss per share of $0.18 in the prior quarter.* -- Effective tax rate: 25 percent for the quarter. Fiscal 2009 estimated tax rate of approximately 33 percent. -- Operating cash flow: $1.09 billion, up 47 percent year-over-year; 39 percent of revenues. -- Return of capital to stockholders: $282 million, or $0.17 per share of cash dividends paid.

* The second quarter of fiscal 2009 results reflected a $748 million litigation settlement charge related to a settlement and patent agreement with Broadcom Corporation.

Pro Forma Third Quarter Results

Pro forma results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain estimated share-based compensation, certain tax items related to prior years and acquired in-process research and development (R&D) expense.

-- Revenues: $2.74 billion, compared to $2.76 billion in the prior year and $2.45 billion in the prior quarter. -- Operating income: $1.12 billion, compared to $1.06 billion in the prior year and $214 million in the prior quarter.* -- Net income: $903 million, compared to $915 million in the prior year and a net loss of $46 million in the prior quarter.* -- Diluted earnings per share: $0.54, compared to $0.55 in the prior year and diluted loss per share of $0.03 in the prior quarter.* The current quarter excludes $0.02 loss per share attributable to the QSI segment and $0.08 loss per share attributable to certain estimated share-based compensation. -- Effective tax rate: 25 percent for the quarter. Fiscal 2009 estimated tax rate of approximately 29 percent. -- Free cash flow: $1.04 billion, up 23 percent year-over-year; 38 percent of revenues (defined as net cash from operating activities less capital expenditures).

* The second quarter of fiscal 2009 results reflected a $748 million litigation settlement charge related to a settlement and patent agreement with Broadcom.

Detailed reconciliations between results reported in accordance with generally accepted accounting principles (GAAP) and pro forma results are included at the end of this news release. Prior period reconciliations are presented on Qualcomm's Investor Relations web page at http://www.qualcomm.com/.

"We delivered a strong quarter as the worldwide migration to 3G-enabled products and services remains robust," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "Our revenues were at the high end of our prior guidance, and our operating income exceeded our prior guidance. Our financial results reflect a record quarter for MSM chipset shipments, strong licensing and royalty revenues based on healthy end market demand in the March quarter and a 5 percent year-over-year reduction in combined R&D and SG&A expenses."

"Despite the global economic uncertainty, we anticipate another strong quarter for our chipset shipments in the fourth fiscal quarter. We believe the CDMA inventory channel has largely stabilized, yet remains near historically low levels consistent with our prior forecast. We are raising our fiscal 2009 revenue and operating income estimates given the strong underlying fundamentals of our business."

Cash and Marketable Securities

Our cash, cash equivalents and marketable securities totaled approximately $15.7 billion at the end of the third quarter of fiscal 2009, compared to $14.0 billion at the end of the second quarter of fiscal 2009 and $11.2 billion a year ago. On July 8, 2009, we announced a cash dividend of $0.17 per share, payable on September 25, 2009 to stockholders of record at the close of business on August 28, 2009.

We recorded net other-than-temporary impairments of $112 million, or approximately one percent of the recorded values of our cash, cash equivalents and marketable securities at June 28, 2009. Our net unrealized losses on marketable securities decreased by $873 million during the third quarter of fiscal 2009, due primarily to recent improvements in financial markets. As of June 28, 2009, we had net unrealized losses on marketable securities of $25 million as compared to $898 million as of March 29, 2009.

Research and Development Estimated Share-Based In-Process ($ in millions) Pro Forma Compensation R&D QSI GAAP --------- ------------ ---------- --- ---- Third quarter fiscal 2009 $523 $72 $- $23 $618 As a % of revenues 19% N/M 22% Third quarter fiscal 2008 $495 $64 $13 $24 $596 As a % of revenues 18% N/M 22% Year-over-year change($) 6% 13% N/M (4%) 4% N/M - Not Meaningful

Pro forma R&D expenses increased 6 percent year-over-year, primarily due to an increase in costs related to the development of integrated circuit products, next-generation CDMA and OFDMA technologies, the expansion of our intellectual property portfolio and other initiatives to support the acceleration of advanced wireless products and services. QSI R&D expenses were related to our FLO TV(TM) subsidiary.

Selling, General and Administrative Estimated Share-Based ($ in millions) Pro Forma Compensation QSI GAAP --------- ------------ ------ ----- Third quarter fiscal 2009 $285 $68 $24 $377 As a % of revenues 10% N/M 14% Third quarter fiscal 2008 $357 $65 $31 $453 As a % of revenues 13% N/M 16% Year-over-year change ($) (20%) 5% (23%) (17%)

Pro forma selling, general and administrative (SG&A) expenses decreased by 20 percent year-over-year, primarily due to lower litigation-related activities and cost reduction efforts. QSI SG&A expenses were primarily related to FLO TV.

Effective Income Tax Rate

Our fiscal 2009 effective income tax rates are estimated to be 33 percent for GAAP and 29 percent for pro forma. The third quarter effective tax rate of 25 percent for both GAAP and pro forma differ from the annual rates due to a $748 million pre-tax litigation settlement charge recorded in the second fiscal quarter with a discrete tax benefit computed at a rate less than the United States federal rate.

Qualcomm Strategic Initiatives

The QSI segment is composed of our strategic investments, including our FLO TV subsidiary. GAAP results for the third quarter of fiscal 2009 included a $0.02 loss per share for the QSI segment. The third quarter of fiscal 2009 QSI results included $86 million in operating expenses, primarily related to FLO TV.

Business Outlook

The following statements are forward looking and actual results may differ materially. The "Note Regarding Forward-Looking Statements" at the end of this news release provides a description of certain risks that we face, and our annual and quarterly reports on file with the Securities and Exchange Commission (SEC) provide a more complete description of risks.

We expect that the uncertainty in the worldwide economy may continue to impact demand for CDMA-based products in various regions. In addition, the weakness in financial markets has had, and may continue to have, an impact on the value of our marketable securities and net investment income. While we do not forecast impairments, we have temporary unrealized losses on marketable securities that could be recognized as other-than-temporary losses in future periods if market conditions do not improve. Given the market volatility and the significant judgments involved, accurately forecasting other-than-temporary impairments associated with our marketable securities is extremely difficult and actual results could vary materially. As a result, while we are providing revenue, operating income and our other standard guidance, we are not providing earnings per share guidance.

Moreover, our outlook does not include provisions for the consequences of injunctions, damages or fines related to any pending legal matters. In addition, due to their nature, certain income and expense items, such as realized investment gains or losses, gains and losses on certain derivative instruments or asset impairments, cannot be accurately forecast. Accordingly, we exclude forecasts of such items from our business outlook, and actual results may vary materially from the business outlook if we incur any such income or expense items.

We are advised that the Korea Fair Trade Commission (KFTC) will issue a decision in our case shortly. This follows seven days of hearings which focused on claims contained in the Examiners' Report charging that certain of our business practices in South Korea were anticompetitive. The practices at issue relate to integration of certain functions on our chips as well as rebates and discounts offered to our customers. The KFTC may order modifications to some or all of those practices. However, until the order is issued, we are unable to assess any impact. We are also anticipating that the KFTC will impose a fine and, while we cannot estimate the amount or a reasonable range of potential loss, we expect it will be substantial and could have a material impact on our results of operations. This by no means reflects our view of the merits of the case. We firmly believe that our practices do not violate South Korean competition law, are grounded in sound business practice and are consistent with our customers' desires. In the event of an adverse decision and the issuance of a formal order, which may take a number of months, we will seek a stay and pursue all avenues of appeal.

The following table summarizes GAAP and pro forma guidance based on the current business outlook. The pro forma business outlook provided below is presented consistent with the presentation of pro forma results elsewhere herein.

The following estimates are approximations and are based on the current business outlook:

Qualcomm's Business Outlook Summary FOURTH FISCAL QUARTER --------------------- Q4'08 Current Guidance Results(2) Q4'09 Estimates(3) -------------------------------------------------------------------------- Pro Forma Revenues $3.33B $2.55B - $2.75B Year-over-year change decrease 17% - 23% Operating income $1.58B $0.95B - $1.05B Year-over-year change decrease 33% - 40% -------------------------------------------------------------------------- GAAP Revenues $3.33B $2.55B - $2.75B Year-over-year change decrease 18% - 24% Operating income $1.34B $0.70B - $0.80B Year-over-year change decrease 40% - 48% Operating income (loss) attributable to QSI ($0.10B) ($0.10B) Operating income (loss) attributable to estimated share-based compensation ($0.15B) ($0.15B) -------------------------------------------------------------------------- Metrics MSM shipments approx. 86M approx. 88M - 92M CDMA/WCDMA devices shipped (1) approx. 119M* approx. 127M - 132M* CDMA/WCDMA device wholesale average selling price (1) approx. $216* approx. $189* *Shipments in June quarter, reported in Sept. quarter -------------------------------------------------------------------------- FISCAL YEAR FY 2008 Prior Guidance Current Guidance Results FY 2009 Estimates(3) FY 2009 Estimates(3) -------------------------------------------------------------------------- Pro Forma Revenues $11.13B $9.85B - $10.25B $10.25B - $10.45B Year-over-year change decrease 8% - 12% decrease 6% - 8% Operating income $4.60B $2.95B - $3.15B $3.30B - $3.40B Year-over-year change decrease 32% - 36% decrease 26% - 28% -------------------------------------------------------------------------- GAAP Revenues $11.14B $9.85B - $10.25B $10.25B - $10.45B Year-over-year change decrease 8% - 12% decrease 6% - 8% Operating income $3.73B $1.95B - $2.15B $2.34B - $2.44B Year-over-year change decrease 42% - 48% decrease 35% - 37% Operating income (loss) attributable to QSI ($0.32B) ($0.39B) ($0.35B) Operating income (loss) attributable to estimated share-based compensation ($0.54B) ($0.60B) ($0.60B) Operating income (loss) attributable to in-process R&D ($0.01B) ($0.01B) ($0.01B) -------------------------------------------------------------------------- Metrics Fiscal year* CDMA/WCDMA device wholesale average selling price (1) approx. $219 approx. $199 approx. $199 * Shipments in Sept. to June quarters, reported in Dec. to Sept. quarters -------------------------------------------------------------------------- CALENDAR YEAR Device Estimates (1) -------------------------------------------------------------------------- CDMA/WCDMA device shipments Prior Guidance Current Guidance Calendar 2008 Calendar 2009 Calendar 2009 Estimates Estimates Estimates -------------------------------------------------------------------------- March quarter approx. 107M approx. 109M - 111M approx. 111M June quarter approx. 119M not provided approx. 127M - 132M September quarter approx. 125M not provided not provided December quarter approx. 128M not provided not provided -------------------------------------------------------------------------- Calendar year range (approx.) 480M 540M - 590M 540M - 590M -------------------------------------------------------------------------- Midpoint Midpoint Midpoint CDMA/WCDMA units approx. 480M approx. 565M approx. 565M CDMA units approx. 216M approx. 217M approx. 217M WCDMA units approx. 264M approx. 348M approx. 348M -------------------------------------------------------------------------- (1) CDMA/WCDMA device shipments and average selling prices are for estimated worldwide device shipments, including shipments not reported to Qualcomm. (2) The fourth quarter of fiscal 2008 results included $560 million in revenues, or $0.20 diluted EPS, as a result of the execution of the license and settlement agreements with Nokia. (3) While we do not forecast impairments, we do have unrealized losses on marketable securities that could be recognized in future periods if market conditions do not improve. Sums may not equal totals due to rounding. Results of Business Segments (in millions, except per share data): Third Quarter - Fiscal Year 2009 Estimated Pro Forma Share- Reconciling Pro Based Segments QCT QTL QWI Items (1) Forma Compensation(2) QSI(3) GAAP -------------------------------------------------------------------------- Revenues $1,786 $807 $148 $3 $2,744 $- $9 $2,753 -------------------------------------------------------------------------- Change from prior year 1% 0% (22%) N/M (1%) 125% 0% -------------------------------------------------------------------------- Change from prior quarter 36% (15%) (16%) N/M 12% 13% 12% -------------------------------------------------------------------------- Operating income (loss) $1,122 $(151) $(77) $894 -------------------------------------------------------------------------- Change from prior year 6% (9%) 8% 8% -------------------------------------------------------------------------- Change from prior quarter 424% (8%) 1% N/M -------------------------------------------------------------------------- EBT $548 $663 $(3) $(7) $1,201 $(151) $(66) $984 -------------------------------------------------------------------------- Change from prior year 13% (1%) N/M N/M 8% (9%) 20% 12% -------------------------------------------------------------------------- Change from prior quarter 153% (21%) N/M N/M N/M (8%) 35% N/M -------------------------------------------------------------------------- EBT as a % of revenues 31% 82% (2%) N/M 44% N/M N/M 36% -------------------------------------------------------------------------- Net (loss) income $903 $(127) $(39) $737 -------------------------------------------------------------------------- Change from prior year (1%) (35%) 35% (1%) -------------------------------------------------------------------------- Change from prior quarter N/M 12% 30% N/M -------------------------------------------------------------------------- Diluted EPS $0.54 $(0.08) $(0.02) $0.44 -------------------------------------------------------------------------- Change from prior year (2%) (33%) 50% (2%) -------------------------------------------------------------------------- Change from prior quarter N/M 11% 33% N/M -------------------------------------------------------------------------- Diluted shares used 1,675 1,675 1,675 1,675 -------------------------------------------------------------------------- Second Quarter - Fiscal Year 2009 Pro Forma Reconciling Segments QCT QTL QWI Items (1)(4) Pro Forma (4) ---------------------------------------------------------------------- Revenues $1,316 $954 $176 $1 $2,447 ---------------------------------------------------------------------- Operating income (loss) 214 ---------------------------------------------------------------------- EBT 217 839 25 (934) 147 ---------------------------------------------------------------------- Net (loss) income (46) ---------------------------------------------------------------------- Diluted EPS $(0.03) ---------------------------------------------------------------------- Diluted shares used 1,651 ---------------------------------------------------------------------- Estimated Share-Based In-Process Segments Compensation (2) Tax Items(5) R&D QSI (3) GAAP (4) ------------------------------------------------------------------------- Revenues $- $- $- $8 $2,455 ------------------------------------------------------------------------- Operating income (loss) (140) - (6) (78) (10) ------------------------------------------------------------------------- EBT (140) - (6) (102) (101) ------------------------------------------------------------------------- Net (loss) income (145) (36) (6) (56) (289) ------------------------------------------------------------------------- Diluted EPS $(0.09) $(0.02) $- $(0.03) $(0.18) ------------------------------------------------------------------------- Diluted shares used 1,651 1,651 1,651 1,651 1,651 ------------------------------------------------------------------------- Third Quarter - Fiscal Year 2008 Pro Forma Reconciling Segments QCT QTL QWI Items (1) Pro Forma -------------------------------------------------------------------- Revenues $1,762 $803 $190 $3 $2,758 -------------------------------------------------------------------- Operating income (loss) 1,060 -------------------------------------------------------------------- EBT 487 670 (1) (40) 1,116 -------------------------------------------------------------------- Net income (loss) 915 -------------------------------------------------------------------- Diluted EPS $0.55 -------------------------------------------------------------------- Diluted shares used 1,654 -------------------------------------------------------------------- Estimated Share-Based In-Process Segments Compensation (2) R&D QSI (3) GAAP ------------------------------------------------------------ Revenues $- $- $4 $2,762 ------------------------------------------------------------ Operating income (loss) (139) (13) (84) 824 ------------------------------------------------------------ EBT (139) (13) (82) 882 ------------------------------------------------------------ Net income (loss) (94) (13) (60) 748 ------------------------------------------------------------ Diluted EPS $(0.06) $(0.01) $(0.04) $0.45 ------------------------------------------------------------ Diluted shares used 1,654 1,654 1,654 1,654 ------------------------------------------------------------ Fourth Quarter - Fiscal Year 2008 Pro Forma Reconciling Segments QCT QTL QWI Items (1) Pro Forma -------------------------------------------------------------------- Revenues $1,761 $1,374 $190 $4 $3,329 -------------------------------------------------------------------- Operating income (loss) 1,578 -------------------------------------------------------------------- EBT 449 1,247 (24) (315) 1,357 -------------------------------------------------------------------- Net income (loss) 1,058 -------------------------------------------------------------------- Diluted EPS $0.63 -------------------------------------------------------------------- Diluted shares used 1,678 -------------------------------------------------------------------- Estimated Share-Based Segments Compensation(2) QSI(3) GAAP ------------------------------------------------- Revenues $- $5 $3,334 ------------------------------------------------- Operating income (loss) (146) (97) 1,335 ------------------------------------------------- EBT (146) (104) 1,107 ------------------------------------------------- Net income (loss) (98) (82) 878 ------------------------------------------------- Diluted EPS $(0.06) $(0.05) $0.52 ------------------------------------------------- Diluted shares used 1,678 1,678 1,678 ------------------------------------------------- Twelve Months - Fiscal Year 2008 Pro Forma Reconciling Segments QCT QTL QWI Items (1) Pro Forma ------------------------------------------------------------------- Revenues $6,717 $3,622 $785 $6 $11,130 ------------------------------------------------------------------- Operating income (loss) 4,604 ------------------------------------------------------------------- EBT 1,833 3,142 (1) (290) 4,684 ------------------------------------------------------------------- Net income (loss) 3,740 ------------------------------------------------------------------- Diluted EPS $2.25 ------------------------------------------------------------------- Diluted shares used 1,660 ------------------------------------------------------------------- Estimated Share-Based In-Process Segments Compensation(2) R&D QSI GAAP ------------------------------------------------------------ Revenues $- $- $12 $11,142 ------------------------------------------------------------ Operating income (loss) (540) (14) (320) 3,730 ------------------------------------------------------------ EBT (540) (14) (304) 3,826 ------------------------------------------------------------ Net income (loss) (365) (13) (202) 3,160 ------------------------------------------------------------ Diluted EPS $(0.22) $(0.01) $(0.12) $1.90 ------------------------------------------------------------ Diluted shares used 1,660 1,660 1,660 1,660 ------------------------------------------------------------ Nine Months - Fiscal Year 2009 Pro Forma Reconciling Segments QCT QTL QWI Items (1)(4) Pro Forma (4) ---------------------------------------------------------------------- Revenues $4,436 $2,769 $494 $5 $7,704 ---------------------------------------------------------------------- Change from prior year (10%) 23% (17%) N/M (1%) ---------------------------------------------------------------------- Operating income (loss) $2,323 ---------------------------------------------------------------------- Change from prior year (23%) ---------------------------------------------------------------------- EBT $933 $2,376 $25 $(1,292) $2,042 ---------------------------------------------------------------------- Change from prior year (33%) 25% 9% N/M (39%) ---------------------------------------------------------------------- Net income (loss) $1,376 ---------------------------------------------------------------------- Change from prior year (49%) ---------------------------------------------------------------------- Diluted EPS $0.82 ---------------------------------------------------------------------- Change from prior year (49%) ---------------------------------------------------------------------- Diluted shares used 1,668 ---------------------------------------------------------------------- Estimated Share-Based In-Process Segments Compensation (2) Tax Items(5) R&D QSI (3) GAAP (4) -------------------------------------------------------------------------- Revenues $- $- $- $22 $7,726 -------------------------------------------------------------------------- Change from prior year 214% (1%) -------------------------------------------------------------------------- Operating income (loss) $(436) $- $(6) $(251) $1,630 -------------------------------------------------------------------------- Change from prior year (11%) N/M (13%) (32%) -------------------------------------------------------------------------- EBT $(436) $- $(6) $(266) $1,334 -------------------------------------------------------------------------- Change from prior year (11%) N/M (33%) (51%) -------------------------------------------------------------------------- Net income (loss) $(370) $(36) $(6) $(174) $790 -------------------------------------------------------------------------- Change from prior year (39%) N/A N/M (45%) (65%) -------------------------------------------------------------------------- Diluted EPS $(0.22) $(0.02) $- $(0.10) $0.47 -------------------------------------------------------------------------- Change from prior year (38%) N/A N/M (43%) (66%) -------------------------------------------------------------------------- Diluted shares used 1,668 1,668 1,668 1,668 1,668 -------------------------------------------------------------------------- Nine Months - Fiscal Year 2008 Pro Forma Reconciling Segments QCT QTL QWI Items (1) Pro Forma --------------------------------------------------------------------- Revenues $4,956 $2,248 $595 $2 $7,801 --------------------------------------------------------------------- Operating income (loss) 3,025 --------------------------------------------------------------------- EBT 1,383 1,895 23 25 3,326 --------------------------------------------------------------------- Net income (loss) 2,682 --------------------------------------------------------------------- Diluted EPS $1.62 --------------------------------------------------------------------- Diluted shares used 1,654 --------------------------------------------------------------------- Estimated Share-Based In-Process Segments Compensation (2) R&D QSI (3) GAAP ------------------------------------------------------------ Revenues $- $- $7 $7,808 ------------------------------------------------------------ Operating income (loss) (394) (14) (223) 2,394 ------------------------------------------------------------ EBT (394) (14) (200) 2,718 ------------------------------------------------------------ Net income (loss) (267) (13) (120) 2,282 ------------------------------------------------------------ Diluted EPS $(0.16) $(0.01) $(0.07) $1.38 ------------------------------------------------------------ Diluted shares used 1,654 1,654 1,654 1,654 ------------------------------------------------------------ (1) Pro forma reconciling items related to revenues consist primarily of other nonreportable segment revenues less intersegment eliminations. Pro forma reconciling items related to earnings before taxes consist primarily of certain investment income or losses, research and development expenses, sales and marketing expenses and a litigation settlement expense that are not allocated to the segments for management reporting purposes, nonreportable segment results and the elimination of intersegment profit. (2) Certain share-based compensation is included in operating expenses as part of employee-related costs but is not allocated to the Company's segments as such costs are not considered relevant by management in evaluating segment performance. (3) At fiscal year-end, the sum of the quarterly tax provisions for each column, including QSI, equals the annual tax provisions for each column computed in accordance with GAAP. In interim quarters, the tax provision for the QSI operating segment is computed by subtracting the pro forma tax provision, the tax items column and the tax provisions related to estimated share-based compensation and in- process R&D from the GAAP tax provision. (4) The second quarter of fiscal 2009 included a $748 million litigation settlement charge related to a settlement and patent agreement with Broadcom. (5) During the second quarter of fiscal 2009, the Company recorded a tax expense related to the adjustment of net deferred tax assets that were recorded in prior years to reflect the future impact of California budget legislation enacted on February 20, 2009. Sums may not equal totals due to rounding. Conference Call

Qualcomm's third quarter fiscal 2009 earnings conference call will be broadcast live on July 22, 2009 beginning at 1:45 p.m. Pacific Daylight Time (PDT) on the Company's web site at: http://www.qualcomm.com/. This conference call may contain forward-looking financial information. The conference call will include a discussion of "non-GAAP financial measures" as that term is defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company's financial results prepared in accordance with GAAP, as well as the other material financial and statistical information to be discussed in the conference call, will be posted on the Company's Investor Relations web site at http://www.qualcomm.com/ immediately prior to commencement of the call. A taped audio replay will be available via telephone on July 22, 2009, beginning at approximately 5:30 p.m. PDT through August 22, 2009 at 9:00 p.m. PDT. To listen to the replay, U.S. callers may dial (800) 642-1687 and international callers may dial (706) 645-9291. U.S. and international callers should use reservation number 16320448. An audio replay of the conference call will be available on the Company's web site at http://www.qualcomm.com/ for two weeks following the live call.

Qualcomm Incorporated is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 100 Index, the S&P 500 Index and is a 2009 FORTUNE 500 company. For more information, please visit http://www.qualcomm.com/.

Note Regarding Use of Non-GAAP Financial Measures

The Company presents pro forma financial information that is used by management (i) to evaluate, assess and benchmark the Company's operating results on a consistent and comparable basis, (ii) to measure the performance and efficiency of the Company's ongoing core operating businesses, including the Qualcomm CDMA Technologies, Qualcomm Technology Licensing and Qualcomm Wireless & Internet segments and (iii) to compare the performance and efficiency of these segments against each other and against competitors outside the Company. Pro forma measurements of the following financial data are used by the Company's management: revenues, R&D expenses, SG&A expenses, total operating expenses, operating income (loss), net investment income (loss), income (loss) before income taxes, effective tax rate, net income (loss), diluted earnings (loss) per share, operating cash flow and free cash flow. Management is able to assess what it believes is a more meaningful and comparable set of financial performance measures for the Company and its business segments by using pro forma information. As a result, management compensation decisions and the review of executive compensation by the Compensation Committee of the Board of Directors focus primarily on pro forma financial measures applicable to the Company and its business segments.

Pro forma information used by management excludes the QSI segment, certain estimated share-based compensation, certain tax items related to prior years and acquired in-process R&D. The QSI segment is excluded because the Company expects to exit its strategic investments at various times, and the effects of fluctuations in the value of such investments are viewed by management as unrelated to the Company's operational performance. Estimated share-based compensation, other than amounts related to share-based awards granted under a bonus program that may result in the issuance of unrestricted shares of the Company's common stock, is excluded because management views such share-based compensation as unrelated to the Company's operational performance. Moreover, it is generally not an expense that requires or will require cash payment by the Company. Further, share-based compensation related to options is affected by factors that are subject to change, including the Company's stock price, stock market volatility, expected option life, risk-free interest rates and expected dividend payouts in future years. Certain tax items related to prior years are excluded in order to provide a clearer understanding of the Company's ongoing pro forma tax rate and after tax earnings. The Company decided to include the benefit of the retroactive extension of the federal research and development tax credit in pro forma results starting in fiscal 2009 because it recurs with relative frequency and would have been included in the Company's pro forma results for the prior year if it had been reenacted in the prior fiscal year. Acquired in-process R&D is excluded because such expense is viewed by management as unrelated to the operating activities of the Company's ongoing core businesses.

The Company presents free cash flow, defined as net cash provided by operating activities less capital expenditures, to facilitate an understanding of the amount of cash flow generated that is available to grow its business and to create long-term shareholder value. The Company believes that this presentation is useful in evaluating its operating performance and financial strength. In addition, management uses this measure to evaluate the Company's performance, to value the Company and to compare its operating performance with other companies in the industry.

The non-GAAP pro forma financial information presented herein should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, "pro forma" is not a term defined by GAAP, and, as a result, the Company's measure of pro forma results might be different than similarly titled measures used by other companies. Reconciliations between GAAP results and pro forma results are presented herein.

Note Regarding Forward-Looking Statements

In addition to the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to risks associated with: the rate of deployment and adoption of our technologies in wireless networks and of wireless communications, equipment and services, including CDMA2000 1X, 1xEV-DO, WCDMA, HSPA and OFDMA both domestically and internationally; the current uncertainty of global economic conditions and its potential impact on demand for our products, services or applications and the value of our marketable securities; attacks on our business model, including results of current and future litigation and arbitration proceedings, as well as actions of governmental or quasi-governmental bodies, and the costs we incur in connection therewith, including potentially damaged relationships with customers and operators who may be impacted by the results of these proceedings; our dependence on major customers and licensees; foreign currency fluctuations; strategic loans, investments and transactions we have or may pursue; our dependence on third-party manufacturers and suppliers; our ability to maintain and improve operational efficiencies and profitability; the development, deployment and commercial acceptance of the FLO TV network and FLO(TM) technology; as well as the other risks detailed from time-to-time in our SEC reports.

Qualcomm is a registered trademark of Qualcomm Incorporated. FLO and FLO TV are trademarks of Qualcomm Incorporated. CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA USA). All other trademarks are the property of their respective owners.

Qualcomm Contact: John Gilbert Phone: 1-858-658-4813 e-mail: ir@qualcomm.com Qualcomm Incorporated CONSOLIDATED STATEMENTS OF OPERATIONS This schedule is to assist the reader in reconciling from Pro Forma results to GAAP results (In millions, except per share data) (Unaudited) Three Months Ended June 28, 2009 -------------------------------------------- Estimated Share-Based Pro Forma Compensation QSI GAAP --------- ------------- -------- ------- Revenues: Equipment and services $1,853 $- $9 $1,862 Licensing and royalty fees 891 - - 891 --------- ------------- -------- ------- Total revenues 2,744 - 9 2,753 --------- ------------- -------- ------- Operating expenses: Cost of equipment and services revenues 814 11 39 864 Research and development 523 72 23 618 Selling, general and administrative 285 68 24 377 --------- ------------- -------- ------- Total operating expenses 1,622 151 86 1,859 --------- ------------- -------- ------- Operating income (loss) 1,122 (151) (77) 894 Investment income (loss), net: Total other-than-temporary impairment losses (120) - (4) (124) Noncredit portion of losses recognized in other comprehensive income 8 - - 8 --------- ------------- -------- ------- Net impairment losses recognized in earnings (112) - (4) (116) Other investment income, net 191(a) - 15(b) 206 --------- ------------- -------- ------- Total investment income, net 79 - 11 90 --------- ------------- -------- ------- Income (loss) before income taxes 1,201 (151) (66) 984 Income tax (expense) benefit (298)(c) 24 27(d) (247)(c) --------- ------------- -------- ------- Net income (loss) $903 $(127) $(39) $737 ========= ============= ======== ======= Earnings (loss) per common share: Diluted $0.54 $(0.08) $(0.02) $0.44 ========= ============= ========= ======= Shares used in per share calculations: Diluted 1,675 1,675 1,675 1,675 ========= ============= ========= ======= Supplemental Financial Data: -------------------------------------------------------------------------- Operating cash flow $1,157 $(22)(f) $(48) $1,087 Operating cash flow as a % of revenues 42% N/M 39% Free cash flow (e) $1,039 $(22)(f) $(79) $938 Free cash flow as a % of revenues 38% N/M 34% -------------------------------------------------------------------------- (a) Included $130 million in interest and dividend income related to cash, cash equivalents and marketable securities, which were not part of the Company's strategic investment portfolio, $73 million in net realized gains on investments, partially offset by $7 million losses on derivatives and $5 million in interest expense. (b) Included $17 million in net realized gains on investments and $2 million in interest and dividend income, partially offset by $3 million in interest expense and $1 million in equity in losses of investees. (c) The third quarter effective tax rate of 25% for both GAAP and pro forma differ from the annual rates of 33% and 29%, respectively, primarily due to a $748 million pre-tax litigation settlement charge recorded in the second fiscal quarter with a discrete tax benefit computed at a rate less than the United States federal rate. (d) At fiscal year-end, the sum of the quarterly tax provisions for each column, including QSI, equals the annual tax provisions for each column computed in accordance with GAAP. In interim quarters, the tax provision for the QSI operating segment is computed by subtracting the pro forma tax provision, the tax items column and the tax provisions related to estimated share-based compensation and in- process R&D from the GAAP tax provision. (e) Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Reconciliation of these amounts is included in the Reconciliation of Pro Forma Free Cash Flows to Net Cash Provided by Operating Activities (GAAP) and other supplemental disclosures for the three months ended June 28, 2009, included herein. (f) Incremental tax benefits from stock options exercised during the period. Qualcomm Incorporated CONSOLIDATED STATEMENTS OF OPERATIONS This schedule is to assist the reader in reconciling from Pro Forma results to GAAP results (In millions, except per share data) (Unaudited) Nine Months Ended June 28, 2009 ------------------------------------------------------------ Estimated Share-Based In-Process Pro Forma Compensation Tax Items R&D QSI GAAP --------- ------------ --------- ---------- ------ ------- Revenues: Equipment and services $4,676 $- $- $- $22 $4,698 Licensing and royalty fees 3,028 - - - - 3,028 --------- ------------ --------- ---------- ----- ------ Total revenues 7,704 - - - 22 7,726 --------- ------------ --------- ---------- ----- ------ Operating expenses: Cost of equipment and services revenues 2,213 30 - - 114 2,357 Research and development 1,541 209 - 6 70 1,826 Selling, general and administrative 879 197 - - 89 1,165 Litigation settlement 748(a) - - - - 748(a) --------- ------------ --------- ---------- ----- ------ Total operating expenses 5,381 436 - 6 273 6,096 --------- ------------ --------- ---------- ----- ------ Operating income (loss) 2,323 (436) - (6) (251) 1,630 Investment loss, net: Total other- than-temporary impairment losses (707) - - - (18) (725) Noncredit portion of loss recognized in other comprehensive income 8 - - - - 8 --------- ------------ --------- ---------- ----- ------ Net impairment losses recognized in earnings (699) - - - (18) (717) Other investment income, net 418(b) - - - 3(c) 421 --------- ------------ --------- ---------- ----- ------ Total investment loss, net (281) - - - (15) (296) --------- ------------ --------- ---------- ----- ------ Income (loss) before income taxes 2,042 (436) - (6) (266) 1,334 Income tax (expense) benefit (666)(d) 66(e) (36)(e) - 92(f) (544)(d) --------- ------------ --------- -------- ----- ------ Net income (loss) $1,376 $(370) $(36) $(6) $(174) $790 ========= ============ ========= ======== ===== ======== Earnings (loss) per common share: Diluted $0.82 $(0.22) $(0.02) $(0.00) $(0.10) $0.47 ========= ============ ========= ======== ===== ======= Shares used in per share calculations: Diluted 1,668 1,668 1,668 1,668 1,668 1,668 ========= ============ ========= ======== ===== ======= Supplemental Financial Data: -------------------------------------------------------------------------- Operating cash flow $6,145 $(54)(h) $- $- $(240) $5,851 Operating cash flow as a % of revenues 80% N/M 76% Free cash flow (g) $5,612 $(54)(h) $- $- $(324) $5,234 Free cash flow as a % of revenues 73% N/M 68% -------------------------------------------------------------------------- (a) The second quarter of fiscal 2009 included a $748 million litigation settlement charge related to a settlement and patent agreement with Broadcom. (b) Included $387 million in interest and dividend income related to cash, cash equivalents and marketable securities, which were not part of the Company's strategic investment portfolio, $35 million in net realized gains on investments and $5 million gains on derivatives, partially offset by $9 million in interest expense. (c) Included $22 million in net realized gains on investments and $2 million in interest and dividend income, partially offset by $14 million in equity in losses of investees and $7 million in interest expense. (d) The first nine months of fiscal 2009 GAAP and pro forma effective tax rates of 41% and 33%, respectively, are higher than the estimated annual rates of 33% and 29%, respectively, primarily due to a $748 million pre-tax litigation settlement charge recorded in the second fiscal quarter with a discrete tax benefit computed at a rate less than the United States federal rate. (e) During the second quarter of fiscal 2009, the Company recorded a tax expense related to the adjustment of net deferred tax assets that were recorded in prior years to reflect the future impact of California budget legislation enacted on February 20, 2009. (f) At fiscal year-end, the sum of the quarterly tax provisions for each column, including QSI, equals the annual tax provisions for each column computed in accordance with GAAP. In interim quarters, the tax provision for the QSI operating segment is computed by subtracting the pro forma tax provision, the tax items column and the tax provisions related to estimated share-based compensation and in- process R&D from the GAAP tax provision. (g) Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Reconciliation of these amounts is included in the Reconciliation of Pro Forma Free Cash Flows to Net Cash Provided by Operating Activities (GAAP) and other supplemental disclosures for the nine months ended June 28, 2009, included herein. (h) Incremental tax benefits from stock options exercised during the period. Qualcomm Incorporated Reconciliation of Pro Forma Free Cash Flows to Net Cash Provided by Operating Activities (GAAP) and other supplemental disclosures (In millions) (Unaudited) Three Months Ended June 28, 2009 -------------------------------------------------- Estimated In- Share-Based Tax Process Pro Forma Compensation Items R&D QSI GAAP --------- -------- ----- --- ---- ---- Net cash provided (used) by operating activities $1,157 $(22)(a) $- $- $(48) $1,087 Less: capital expenditures (118) - - - (31) (149) --------- -------- ----- --- ---- ---- Free cash flow $1,039 $(22) $- $- $(79) $938 ========= ======== ===== === ==== ==== Other supplemental cash disclosures: Cash transfers from QSI (1) $3 $- $- $- $(3) $- Cash transfers to QSI (2) (88) - - - 88 $- --------- -------- ----- --- ---- ---- Net cash transfers $(85) $- $- $- $85 $- ========= ======== ===== === ==== ==== Nine Months Ended June 28, 2009 ------------------------------------------------- Estimated In- Share-Based Tax Process Pro Forma Compensation Items R&D QSI GAAP --------- -------- ----- --- ---- ---- Net cash provided (used) by operating activities $6,145 $(54)(a) $- $- $(240) $5,851 Less: capital expenditures (533) - - - (84) (617) --------- -------- ----- --- ---- ---- Free cash flow $5,612 $(54) $- $- $(324) $5,234 ========= ======== ===== === ==== ==== Other supplemental cash disclosures: Cash transfers from QSI (1) $26 $- $- $- $(26) $- Cash transfers to QSI (2) (361) - - - 361 - --------- -------- ----- --- ---- ---- Net cash transfers $(335) $- $- $- $335 $- ========= ======== ===== === ==== ==== (1) Cash from sale of strategic debt and equity investments and partial settlement of investment receivables. (2) Funding for strategic debt and equity investments, capital expenditures and other QSI operating expenses. Three Months Ended June 29, 2008 -------------------------------------------- Estimated In- Share-Based Process Pro Forma Compensation R&D QSI GAAP --------- ------------ ---- --- ---- Net cash provided (used) by operating activities $1,020 $(209)(a) $(13) $(59) $739 Less: capital expenditures (176) - - (379) (555) --------- ------------ ---- --- ---- Free cash flow $844 $(209) $(13) $(438) $184 ========= ============ ==== ===== ==== Nine Months Ended June 29, 2008 ------------------------------------------- Estimated In- Share-Based Process Pro Forma Compensation R&D QSI GAAP --------- ------------ --- --- ---- Net cash provided (used) by operating activities $3,090 $(310)(a) $(14) $(199) $2,567 Less: capital expenditures (368) - - (615) (983) --------- ------------ ---- --- ---- Free cash flow $2,722 $(310) $(14) $(814) $1,584 ========= ============ ==== ===== ==== (a) Incremental tax benefits from stock options exercised during the period. Qualcomm Incorporated CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except per share data) (Unaudited) ASSETS June 28, September 28, 2009 2008 ---------- ------------- Current assets: Cash and cash equivalents $3,721 $1,840 Marketable securities 6,159 4,571 Accounts receivable, net 943 4,038 Inventories 375 521 Deferred tax assets 286 289 Other current assets 247 464 ---------- ------------- Total current assets 11,731 11,723 Marketable securities 5,801 4,858 Deferred tax assets 822 830 Property, plant and equipment, net 2,311 2,162 Goodwill 1,512 1,517 Other intangible assets, net 3,138 3,104 Other assets 398 369 ---------- ------------- Total assets $25,713 $24,563 ========== ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable $561 $570 Payroll and other benefits related liabilities 459 406 Unearned revenues 447 394 Other current liabilities 905 921 ---------- ------------- Total current liabilities 2,372 2,291 Unearned revenues 3,528 3,768 Income taxes payable 263 227 Other liabilities 839 333 ---------- ------------- Total liabilities 7,002 6,619 ---------- ------------- Stockholders' equity: Preferred stock, $0.0001 par value; issuable in series; 8 shares authorized; none outstanding at June 28, 2009 and September 28, 2008 - - Common stock, $0.0001 par value; 6,000 shares authorized; 1,659 and 1,656 shares issued and outstanding at June 28, 2009 and September 28, 2008, respectively - - Paid-in capital 7,988 7,511 Retained earnings 10,716 10,717 Accumulated other comprehensive income (loss) 7 (284) ---------- ------------- Total stockholders' equity 18,711 17,944 ---------- ------------- Total liabilities and stockholders' equity $25,713 $24,563 ========== ============= Qualcomm Incorporated CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited) Three Months Ended Nine Months Ended ----------------- ----------------- June 28, June 29, June 28, June 29, 2009 2008 2009 2008 -------- -------- -------- -------- Revenues: Equipment and services $1,862 $1,867 $4,698 $5,295 Licensing and royalty fees 891 895 3,028 2,513 -------- -------- -------- -------- Total revenues 2,753 2,762 7,726 7,808 -------- -------- -------- -------- Operating expenses: Cost of equipment and services revenues 864 889 2,357 2,493 Research and development 618 596 1,826 1,660 Selling, general and administrative 377 453 1,165 1,261 Litigation settlement - - 748 - -------- -------- -------- -------- Total operating expenses 1,859 1,938 6,096 5,414 -------- -------- -------- -------- Operating income 894 824 1,630 2,394 Investment income (loss), net: Total other-than-temporary impairment losses (124) (83) (725) (202) Noncredit portion of loss recognized in other comprehensive income 8 - 8 - -------- -------- -------- -------- Net impairment losses recognized in earnings (116) (83) (717) (202) Other investment income, net 206 141 421 526 -------- -------- -------- -------- Total investment income (loss), net 90 58 (296) 324 -------- -------- -------- -------- Income before income taxes 984 882 1,334 2,718 Income tax expense (247) (134) (544) (436) -------- -------- -------- -------- Net income $737 $748 $790 $2,282 ======== ======== ======== ======== Basic earnings per common share $0.45 $0.46 $0.48 $1.40 ======== ======== ======== ======== Diluted earnings per common share $0.44 $0.45 $0.47 $1.38 ======== ======== ======== ======== Shares used in per share calculations: Basic 1,656 1,626 1,653 1,626 ======== ======== ======== ======== Diluted 1,675 1,654 1,668 1,654 ======== ======== ======== ======== Dividends per share paid $0.17 $0.16 $0.49 $0.44 ======== ======== ======== ======== Dividends per share announced $0.17 $0.16 $0.49 $0.44 ======== ======== ======== ======== Qualcomm Incorporated CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Three Months Ended Nine Months Ended ------------------ ------------------ June 28, June 29, June 28, June 29, 2009 2008 2009 2008 --------- -------- -------- --------- Operating Activities: Net income $737 $748 $790 $2,282 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 154 117 460 336 Revenues related to non-monetary exchanges (29) - (86) - Non-cash portion of income tax expense 56 66 222 148 Non-cash portion of share-based compensation expense 151 138 436 393 Incremental tax benefit from stock options exercised (22) (209) (54) (310) Net realized gains on marketable securities and other investments (90) (39) (57) (158) Net impairment losses on marketable securities and other investments 116 83 717 202 Other items, net (1) 11 (22) 1 Changes in assets and liabilities, net of effects of acquisitions: Accounts receivable, net (133) (186) 2,691 (178) Inventories 30 (7) 143 (142) Other assets 13 (7) (17) 35 Trade accounts payable 95 (24) (8) (4) Payroll, benefits and other liabilities 27 78 737 12 Unearned revenues (17) (30) (101) (50) --------- -------- -------- --------- Net cash provided by operating activities 1,087 739 5,851 2,567 --------- -------- -------- --------- Investing Activities: Capital expenditures (149) (555) (617) (983) Purchases of available- for-sale securities (2,201) (1,984) (6,497) (4,944) Proceeds from sale of available-for-sale securities 1,145 1,559 3,606 5,548 Cash received for partial settlement of investment receivables 32 - 349 - Other investments and acquisitions, net of cash acquired (7) (8) (47) (283) Change in collateral held under securities lending - 8 173 95 Other items, net - 4 6 30 --------- -------- -------- --------- Net cash used by investing activities (1,180) (976) (3,027) (537) --------- -------- -------- --------- Financing Activities: Proceeds from issuance of common stock 175 464 276 700 Incremental tax benefit from stock options exercised 22 209 54 310 Dividends paid (282) (261) (810) (716) Repurchase and retirement of common stock - - (285) (1,670) Change in obligations under securities lending - (8) (173) (95) Other items, net 3 - - - --------- -------- -------- --------- Net cash (used) provided by financing activities (82) 404 (938) (1,471) --------- -------- -------- --------- Effect of exchange rate changes on cash 4 - (5) - --------- -------- -------- --------- Net (decrease) increase in cash and cash equivalents (171) 167 1,881 559 Cash and cash equivalents at beginning of period 3,892 2,803 1,840 2,411 --------- -------- -------- --------- Cash and cash equivalents at end of period $3,721 $2,970 $3,721 $2,970 ========= ======== ======== =========

Qualcomm Incorporated

CONTACT: John Gilbert of Qualcomm Incorporated, +1-858-658-4813,
ir@qualcomm.com

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

Advanced Energy to Report Second Quarter 2009 Financial Results

FORT COLLINS, Colo., July 9 /PRNewswire-FirstCall/ -- Advanced Energy Industries, Inc. will release second quarter 2009 financial results on Thursday, July 23, 2009. Management's quarterly company update will also be held on July 23, 2009, beginning at 3:00 p.m. Mountain Time/5:00 p.m. Eastern Time.

To participate in the live conference call, dial 888-713-4717 approximately five minutes prior to the start of the meeting, and an operator will connect you. International participants should dial 816-650-2836. All participants will need to provide the operator with the conference pass code, 19233458, which has been reserved for this call.

A live and archived webcast of the call will also be available on the company's website. To access the webcast, visit the Investor Relations section of Advanced Energy's corporate website at http://ir.advanced-energy.com/, and link to the Q209 Webcast on the Investor Relations Home Page. The archived webcast will be available at the same location approximately two hours following the end of the live event.

A telephone replay will be available for 48 hours following the webcast. To access the replay, dial 800-642-1687 or 706-645-9291 and enter conference pass code 19233458.

About Advanced Energy

Advanced Energy® is a global leader in innovative power and control technologies for high-growth, thin-film manufacturing and solar power generation. Specifically, AE targets solar grid-tie inverters, solar cells, semiconductors, flat panel displays, data storage products, architectural glass and other advanced applications.

Photo: http://www.newscom.com/cgi-bin/prnh/20030825/AEISLOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Advanced Energy Industries, Inc.

CONTACT: Annie Leschin or Vanessa Lehr, both of Advanced Energy
Industries, Inc., +1-970-407-6555, ir@aei.com

Web Site: http://www.advanced-energy.com/
http://www.advanced-energy.com/

Optical Systems, Inc. Completes Re-Engineering of Business Development CenterDealerships enrolled in ASDI's BDC report increase in profitability and reduction in overhead

HOUSTON, July 22 /PRNewswire-FirstCall/ -- Optical Systems, Inc., (Pink Sheets: OPSY), a leading provider of software and customer service solutions for the automotive industry and developers of their Flagship Product Save-A-Deal, today announced that its wholly-owned subsidiary Automotive Software Designers, Inc. (ASDI) has completed the re-engineering of its Business Development Center (BDC) which provides Customer Relationship Management (CRM) products & services to car dealerships. This company wide process helped significantly reduce the company's operating expenses.

"We have been diligently working to formalize the Sales Manager and Service Manager programs for several months," said B.J. Grisaffi, Chairman and chief executive officer of Optical Systems, Inc. "The recent updates that we've made are proving to increase sales, productivity and profitability at car dealerships, and to reduce our own operating expenses by approximately $22,000 per-month. We are already seeing the benefits of this revitalized process for both our customers and our shareholders."

The ASDI BDC Sales Manager & Service Manager programs are an outsourced CRM solution that integrate seamlessly with a dealerships sales, finance and service department while setting appointments and driving traffic to the dealership. The company has already added 17 dealerships in two states delivering one or more of the Sales Manager and Service Manager programs to each, and expects to add 16 new dealerships to the Service Manager program and 3 new dealerships to the Sales Manager program by the end of the third-quarter of 2009.

"The ASDI BDC program allows dealers to focus on profitability," said Doug Wisdom of Orr Chevrolet Texarkana. "The Sales Manager and Service Manager programs help increase efficiencies, reduce overhead, allowing us to capture new business opportunities that would have otherwise fallen through the cracks. We have seen a steady increase in new business from old customers and our bottom line since enrolling in the program."

The Sales Manager program offers services including: -- Outbound Call Appointment Setting -- In-Bound Call Appointment Setting -- Visit Outcome Call Surveys -- Send e-mail & letters -- Works Internet leads in 15 minutes or less The Service Manager program offers services including: -- Outbound Call Appointment Setting -- Anniversary & Birthday Calls -- Send e-mail & letters -- Works Internet leads in 15 minutes or less -- Service Special Calls to Client List

The company plans to integrate all existing BDC customers into the newly-restructured program by December 31, 2009.

About Optical Systems, Inc.

Optical Systems, Inc., through its wholly owned operating subsidiary, Automotive Software Designers, Inc., provides products & services for automotive, recreational vehicle & Motorcycle dealerships that significantly improve a dealerships result by driving traffic to the dealership and saving deals.

For more information, visit http://www.opticalsystemsinc.com/. SAFE HARBOR STATEMENT

Safe Harbor Statement under the Private Securities litigation Reform Act of 1995: The statements, other than the statements of historical facts, may be deemed to contain forward-looking statements with respect to events, the occurrence of which involves risk and uncertainties, including, without limitation, demand and competition for the company's products and services, the availability to the company of adequate financing to support its anticipated activities, the ability of the company to generate cash flow from operations and the ability of the company to manage its operations. As statements regarding future events concern management's estimates of future results of operations, and as these estimates are based on many elements beyond management's control, differences from management's estimates may occur, and such difference may be material. Although Optical Systems, Inc. believes the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by Optical Systems, Inc. or any other person that the objective and plans of Optical Systems, Inc. will be achieved.

Contact: Ray Rogers: 877 781 2030 invest@a-s-d-i.org

Optical Systems, Inc.

CONTACT: Ray Rogers, 1-877-781-2030, invest@a-s-d-i.org, for Optical
Systems, Inc.

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

EXCHANGE MOBILE TELECOMMUNICATIONS CORP. assesses Mobile Wireless Applications

WEST PALM BEACH, FL, July 22 /PRNewswire-FirstCall/ -- Arshad Shah, President and CEO of Exchange Mobile Telecommunications Corp., (EXMT.PK) announces that the Company has begun to assess and evaluate various Mobile Wireless applications that are popular and sought after by the Mobile Wireless subscribers in China.

The Company is of the opinion that it can successfully implement and launch certain applications if it secures funding.

The Company has previously announced the following news releases since August 26, 2008.

1: EXCHANGE MOBILE EVALUATES NEW PRODUCTS LINE, August 26, 2008. 2: EXCHANGE MOBILE ANNOUNCES PRODUCT LINE, September 5, 2008. 3: EXCHANGE MOBILE AND HANGZHOU COMPANY TO PROVIDE INTER-NETWORKING SOLUTION FOR CONGO WIRELESS OPERATOR, September 15, 2008. Global GSM and 3GSM Mobile Connections : 3,870,521,467 July 22, 2009 About Exchange Mobile Technologies Corp.

Exchange Mobile is a mobile solutions company, focused on providing innovative means of enabling mobile subscribers to stay connected in various network environments. With its unique interoperable platform, global SMS network and patent pending/ trademarked technology; Exchange Mobile will SMS content worldwide with faster response time. Exchange Mobile will enable corporate clients to capture their audience in a whole new way; Exchange Mobile is the SMS solution of the future operating today!

FORWARD LOOKING STATEMENTS

The statements contained herein which are not historical are forward-looking statements that are subject to risk and uncertainties that could cause actual results to differ materially from those expressed, including but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's press releases.

Exchange Mobile Telecommunications Corp.

CONTACT: about Exchange Mobile Telecommunications Corp. please visit our
website at http://www.xcmobile.com/ or contact us at (604) 687-7472; Exchange Mobile
Telecommunications Corp., 1220 6TH Avenue, Suite 102, Vancouver, BC, Canada,
V6H 1A5, Phone: (604) 687-7472, Fax: (604) 677-0808, Email: info@xcmobile.com

Letter to Our ShareholdersDigital Utilities Ventures, Inc. (Stock Symbol: DUTV)

MIAMI, July 22 /PRNewswire-FirstCall/ -- To Our Shareholders:

Every innovative technology has a seminal moment when all the drivers of change coalesce and it breaks out of its embryonic stage and becomes a full-blown reality. This is where Digital Utilities Ventures, Inc. stands today.

(1) We have successfully tested and proven the viability of our patent pending "New Last Mile" technology. This means that we can deliver live programming of broadcast quality from anywhere in the world over the Internet directly: -- To TV sets without the aid of computers (IP ready) by simply piggybacking on existing broadband connections, and -- To cell phones via WIFI and Mobile Telephone Switching Office (MTSO) 3G networks worldwide. In effect, creating the first global "Virtual Cable Network(TM)". (2) We officially launched our global expansion program on Monday, July 20, 2009. Our main focus is to seed the market for companies racing to stake out IPTV territory in domestic and foreign markets, while building a global brand presence. (3) Rapid market penetration is central to Digital Utilities growth strategy. Accordingly, the Company's goal is to enter all the IPTV International markets in the next twelve months. (4) To achieve this goal, our international expansion strategy is to establish alliances with major Telecom, Cable, Satellite and Content Providers from around the world, where we provide the expansion platform via our breakthrough Internet to TV Delivery System, while relying on our Allies' marketing muscle to promote and sell the "New Last Mile" service enhancements to both prospective and existing subscribers. We are currently in talks with key players to implement this program. (5) This expansion strategy will be further reinforced by acquisitions of companies that can expand the scope and depth of our services.

About Digital Utilities Ventures, Inc. - Digital Utilities is an intellectual property company and advanced technology incubator incorporated in the State of Delaware in June 2006. The Company was formed to manufacture and market its innovative, Internet to TV and Cell Phone Communications System for the domestic and international Quad-Play/Convergence services industries. The Company went public on March 26, 2009. (Website: http://www.dutv.us/)

For further information contact: Garry McHenry President Digital Utilities Ventures, Inc. Phone: (561) 424-1965 E-mail: gmchenry@gmail.com

Digital Utilities Ventures, Inc.

CONTACT: Garry McHenry, President of Digital Utilities Ventures, Inc,
+1-561-424-1965, gmchenry@gmail.com

Web Site: http://www.dutv.us/

Hamilton Sundstrand Equipment Playing Key Role in Historic STS-127 Mission

WINDSOR LOCKS, Conn., July 22 /PRNewswire-FirstCall/ -- Hamilton Sundstrand equipment is playing a crucial role in NASA's STS-127 mission to the International Space Station (ISS). Hamilton Sundstrand is a subsidiary of United Technologies Corp. .

Much like 40 years ago -- when Hamilton Sundstrand equipment supported the historic July 20, 1969 Apollo moon landing -- Hamilton Sundstrand equipment will again support a significant milestone in the nation's rich space travel history when the STS-127 crew sets a record for the most people (13) in space at one time.

Many Hamilton Sundstrand systems will enable NASA and its international partners to reach that milestone. The company's One EVA program will provide space suits, tools and mission support for the mission's five scheduled spacewalks (EVAs) to continue critical assembly activities. Hamilton Sundstrand systems also provide the ISS with power and re-generable environmental control and life support.

Hamilton Sundstrand's expertise and highly technical systems will ensure air, water and electricity are available on the ISS to keep astronauts comfortable and safe. With the recently completed Electric Power System, activation of the Water Processor Assembly and use of the recently installed Oxygen Generation Assembly, systems provided by Hamilton Sundstrand, NASA and its partners enable astronauts to conduct critical science missions on board the ISS.

"Hamilton Sundstrand and its employees are proud to contribute to the successful implementation of the life support and various other systems for the space program," said G. Allen Flynt, Hamilton Sundstrand Energy, Space & Defense space systems general manager. "This mission, and every mission after it, will benefit from Hamilton Sundstrand's advanced technologies, which allow NASA to efficiently use critical resources in space."

STS-127 is the 127th shuttle flight and 29th mission to the International Space Station.

A partner in America's space program since its inception, Hamilton Sundstrand, provides a number of power and environmental control systems for the International Space Station, space shuttle and the Orion crew exploration vehicle now under development. The company has been the prime contractor to NASA for the space suit since the shuttle era began in 1981.

With 2008 revenues of $6.2 billion, Hamilton Sundstrand is headquartered in Windsor Locks, Conn. Among the world's largest suppliers of technologically advanced aerospace and industrial products, the company designs, manufactures and services aerospace systems and provides integrated system solutions for commercial, regional, corporate and military aircraft. It also is a major supplier for international space programs.

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

Contact: Dan Coulom

860-654-3469

Hamilton Sundstrand

CONTACT: Dan Coulom of Hamilton Sundstrand, +1-860-654-3469

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

EA et NetDragon concluent un accord pour le développement d'Ultima Online

HONG KONG, July 22 /PRNewswire/ --

Electronic Arts Inc. (Nasdaq : ERTS) et NetDragon Websoft Inc., un développeur et un exploitant de jeux de premier plan en Chine (<< NetDragon >>, connu, avec ses filiales, sous le nom de << Groupe >> ; code de la bourse de Hong Kong : 777), ont annoncé aujourd'hui un accord de licence pour le développement d'un nouveau jeu de rôle en ligne massivement multi-joueurs (MMORPG) s'inspirant de << Ultima Online >>(TM) d'Electronic Arts. Dans le cadre de l'accord, NetDragon développera le nouvel Ultima Online(TM) en collaboration avec Mythic Entertainment d'EA et possèdera la licence exclusive d'exploitation pour la Chine, Hong Kong, Macao et l'Inde.

<< Nous sommes ravis de nouer des liens encore plus étroits avec EA à travers le développement d'Ultima Online(TM) >>, déclare M. Liu Dejian, président du conseil d'administration et directeur exécutif de NetDragon. << Fort de notre capacité à créer une expérience de jeu en ligne mémorable, nous sommes convaincus qu'Ultima Online(TM) sera une réussite en Chine et obtiendra aussi des résultats remarquables dans les autres marchés où nous exploiterons le jeu. >>

De son côté, Jon Niermann, président d'EA Asia estime : << Ultima Online(TM) est un produit populaire d'EA et nous nous réjouissons de proposer le jeu aux fans de Chine, de Hong Kong, de Macao et d'Inde. NetDragon est un partenaire respecté et nous avons confiance en son expertise à développer et à proposer une excellente expérience ludique aux joueurs. >>

Rob Denton, directeur général et vice-président de Mythic Entertainment a ajouté : << Nous sommes ravis de pouvoir travailler avec NetDragon afin de proposer Ultima Online, un jeu précurseur, à un nouveau public dans des marchés particulièrement prometteurs. >>

À propos de NetDragon :

NetDragon Websoft Inc. est un des principaux développeurs et exploitants de jeux en ligne de la République populaire de Chine. Le portefeuille de jeux offert par le Groupe compte une gamme de jeux de rôle massivement multi-joueurs en ligne (MMORPG) qui correspondent à différents types de joueurs et de préférences de jeu. Le Groupe a mis au point et a commercialisé avec succès de nombreux titres en ligne populaires de styles variés. Son offre actuelle comprend les jeux << Way of the Five >>, << Eudemons Online >>, << Conquer Online >>, << Zero Online >>, << Tou Ming Zhuang Online >> et << Heroes of Might and Magic Online >>. Certains jeux sont également disponibles en langues étrangères, y compris en anglais, en français et en espagnol. Le groupe développe actuellement quatre jeux, dont << Tian Yuan >>, << Disney Fantasy Online >>, << Dungeon KeeperTM Online >> et << CJ7 Online >> qui devraient être lancés à partir de 2009.

À propos d'Electronic Arts

Electronic Arts Inc. (EA), dont le siège social se trouve à Redwood City, en Californie, est un leader mondial des logiciels de divertissement interactif. Fondée en 1982, la société développe, édite et distribue dans le monde entier des logiciels interactifs pour systèmes de jeux vidéo, ordinateurs personnels et Internet. Electronic Arts commercialise ses produits sous quatre marques : EA(TM), EA SPORTS(TM), EA Mobile(TM) et POGO(TM). Pour l'exercice 2009, EA a généré des produits d'exploitation nets PCGR de 4,2 milliards USD et a vendu 31 titres à plus d'un million d'exemplaires. La page d'accueil et le site de jeux en ligne d'EA sont disponibles sur http://www.ea.com. Des informations complémentaires sur les produits d'EA et le texte intégral des communiqués de presse sont disponibles à l'adresse http://info.ea.com .

EA, EA SPORTS, EA Mobile, POGO, Dungeon Keeper, Mythic Entertainment, Ultima et Ultima Online sont des marques déposées d'Electronic Arts Inc. aux États-Unis et/ou dans d'autres pays. Toutes les autres marques déposées sont la propriété de leurs propriétaires respectifs. Tous droits réservés.

NetDragon Websoft Inc.

NetDragon Websoft Inc. - Mme Maggie Zhou (service des relations avec les investisseurs), +86-591-8754-3120 (Tél.), ou +86-591-8754-1761 (Fax), ou ir@nd.com.hk; Electronic Arts Inc.- Claire Zhou, EA China, +86-21-6132-1516, ou czhou@ea.com; Tiffany Steckler, communications d'entreprise d'EA, +41-22-316-1322, ou tsteckler@europe.ea.com

SRS Labs Running Sweepstakes to Celebrate Flat Panel TV Market PenetrationParticipants May Enter for a Chance to Win One of Three ViewSonic VT2430 Flat Panel TVs Featuring SRS TruSurround XT

SANTA ANA, Calif., July 22 /PRNewswire-FirstCall/ -- SRS Labs , the industry leader in surround sound, audio, and voice technologies, announced today that, to celebrate its continued success in penetrating the flat-panel TV market, it is running a sweepstakes where participants are entered for a chance to win one of three new SRS TruSurround XT -equipped ViewSonic VT2430 HDTVs.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070322/LATH036LOGO)

The latest SRS Labs TV sweepstakes will conclude at 12:00 p.m. on August 17th with the three winners being selected at random and announced within 10 days of the conclusion of the promotion. To qualify for entry, participants are asked to complete a short survey regarding their TV usage habits and preferences, helping SRS and its manufacturing partners to sharpen their understanding of consumer needs and wants in today's TV marketplace.

The Viewsonic VT2430 is ViewSonic's first 24-inch, full HD 1080p TV and features SRS TruSurround XT, which provides viewers with an amazing surround sound experience from the built-in speakers. Offering razor sharp picture and crystal clear sound; the VT2430 is the perfect TV for a bedroom, office or den.

Those individuals that are interested in a chance of winning a new ViewSonic VT2430 HDTV must fill out SRS' survey at http://srslabs.com/tvsweeps, as well as read the contest rules for details regarding eligibility and restrictions.

About SRS Labs, Inc.

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

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

SRS Labs, Inc. Contact: Investor Relations Contact: Michael Bingham, PR Manager Matt Glover, Liolios Group, Inc. 949-442-5582 949-574-3860 michaelb@srslabs.com info@liolios.com Twitter: @SRSLabs

Photo: http://www.newscom.com/cgi-bin/prnh/20070322/LATH036LOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com SRS Labs, Inc.

CONTACT: Michael Bingham, PR Manager of SRS Labs, Inc., +1-949-442-5582,
michaelb@srslabs.com, Twitter: @SRSLabs; or Investor Relations, Matt Glover of
Liolios Group, Inc., +1-949-574-3860, info@liolios.com, for SRS Labs, Inc.

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

GameTech and Lancaster Bingo Company Enter Into Distribution Partnership for the Kentucky Market

RENO, Nev., July 22 /PRNewswire-FirstCall/ -- GameTech International, Inc. ("GameTech ") , a leading designer, developer and manufacturer of electronic bingo, gaming equipment, gaming systems, and video lottery terminals, announced today that it has entered into a distributor agreement with Lancaster Bingo Company, one of the leading distributors of bingo products, services and games in the Midwest.

With this agreement, Lancaster Bingo Company will market, sell and support GameTech products to bingo operators specifically in the Kentucky market. This agreement expands the opportunities for both GameTech and Lancaster to provide bingo customers in Kentucky with the most innovative and compelling bingo products and solutions in the market today.

"Kentucky is a unique and exciting market for charitable bingo," said Jay Meilstrup, GameTech President and Chief Executive Officer. "We are very happy to have the additional opportunities our partnership with Lancaster provides to further grow our business in Kentucky, and be able to reach even more customers with GameTech's products. We have seen from experience that every time we expand our market opportunities for our products, we are able to deliver real value and performance for our bingo customers. Our new Lancaster partnership will help us do just that."

GameTech International, Inc. is in the business of designing, manufacturing, and marketing computerized bingo and gaming equipment, systems, and services. Under the GameTech product brand the company provides electronic bingo systems and equipment, and is an innovator in advanced wireless gaming applications and devices. Under the Summit Gaming(TM) product brand the Company provides video lottery terminal devices, Class III gaming machines, and related software and content. GameTech International, Inc. serves customers in 43 U.S. States, Canada, Japan, Mexico, Norway, Philippines, and the United Kingdom. The company was incorporated in 1994 and is headquartered in Reno, Nevada.

Statements in this press release that are not historical facts are intended to be forward-looking statements subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. GameTech cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained herein. Such factors include risks associated with doing business in a regulated industry, our ability to retain customers and secure new customers, risks associated with rapid technological change, and those disclosed in documents filed by the Company with the Securities and Exchange Commission, including the Company's most recently filed Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. GameTech does not intend, and undertakes no obligation, to update our forward-looking statements to reflect future events or circumstances

GameTech International, Inc.

CONTACT: Investor Relations, Marcia Martin, or Sales and Marketing, Tim
Minard, both of GameTech International, Inc., +1-775-850-6000

Web Site: http://www.gametech-inc.com/

Lockheed Martin Agrees to Acquire Gyrocam Systems LLC

BETHESDA, Md., July 22 /PRNewswire-FirstCall/ -- Lockheed Martin Corporation has entered into a definitive agreement to acquire Gyrocam Systems LLC (Gyrocam). Gyrocam develops and supplies gyrostabalized optical surveillance systems and sustainment field services principally to the U.S. military. Terms of the transaction were not disclosed, but are not material to Lockheed Martin.

Gyrocam, a privately owned company headquartered in Sarasota, Fla. with personnel in Washington, D.C., Iraq and Afghanistan, provides combat forces greater situational awareness in virtually all conditions with real-time reconnaissance and threat identification and tracking from safe, stand-off distances. The company's Intelligence, Surveillance and Reconnaissance (ISR) products are primarily in use on ground vehicles operated by the Army, Marine Corps and Air Force.

Lockheed Martin Missiles and Fire Control, a unit of Lockheed Martin's Electronic Systems business area, with major facilities in Dallas, Texas and Orlando, Fla., will manage the Gyrocam business.

"The acquisition of Gyrocam enhances Lockheed Martin's ability to address our U.S. government customer's emphasis on ISR capabilities and to meet urgent warfighter needs," said Robert J. Stevens, Lockheed Martin's Chairman, President and Chief Executive Officer. "This transaction is a sound strategic fit that strengthens a core competency while addressing a customer priority, supports our commitment to build shareholder value and reinforces our standing as a global security leader."

"We are extremely pleased to join Lockheed Martin. This combination will allow the warfighter access to an expanded range of capabilities and will provide professional growth opportunities for our dedicated employees. Lockheed Martin shares a common commitment to performance excellence, ethics and integrity; our promise to partner with our customers; and our dedication to providing quality services and rapid response," said Darrell Egner, Chief Executive Officer of Gyrocam.

The transaction is subject to various approvals, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and satisfaction of other closing conditions. The transaction is expected to close in the third quarter of 2009.

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.

For additional information, visit our website: http://www.lockheedmartin.com/ LOCKHEED MARTIN Safe Harbor Statement / Forward-Looking Statements:

Some of the statements contained in this press release are considered "forward-looking statements" under the federal securities laws. Forward-looking statements include, but are not limited to statements regarding: (1) the expected closing date of the transaction; and (2) the potential for strengthened or expanded capabilities arising out of the transaction. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to: (a) the risk that the transaction may close more slowly than expected or not at all; (b) the risk that the potential demand for strengthened or expanded service offerings arising out of the transaction may not materialize; and (c) other risks and uncertainties described from time to time in Lockheed Martin's Form 10-K, including under the caption "Risk Factors", and other filings with the Securities and Exchange Commission. All information in this release is as of July 22, 2009. Lockheed Martin disclaims any duty to update forward-looking statements to reflect subsequent events, actual results or changes in expectations.

Lockheed Martin Corporation

CONTACT: Nettie Johnson of Lockheed Martin, +1-301-897-6352,
nettie.r.johnson@lmco.com

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

Coherent, Inc. to Webcast Third Fiscal Quarter 2009 Results

SANTA CLARA, Calif., July 22 /PRNewswire-FirstCall/ -- Coherent, Inc. , today announced that it plans to report its third quarter results after market close on August 4, 2009. The Company will host a conference call to discuss its financial results at 1:30 P.M. Pacific (4:30 P.M. Eastern) on August 4, 2009. A listen-only broadcast of the conference call can be accessed on the Company's website at either http://www.coherent.com/Investors/ or http://www.earnings.com/. For those who are not available to listen to the live broadcast, the call will be archived for approximately three months on both web sites.

Founded in 1966, Coherent, Inc. is a world leader in providing photonics based solutions to the commercial and scientific research markets and part of the Russell 2000. Please direct any questions to Leen Simonet, Executive Vice President and Chief Financial Officer at 408-764-4161. For more information about Coherent, visit the Company's web site at http://www.coherent.com/.

Coherent, Inc.

CONTACT: Leen Simonet of Coherent, Inc., +1-408-764-4161

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

Defentect, San Diego State University 'Visualization Lab' Unveil Homeland Security Demonstration Project; Fixed Radiation Detection Perimeter System

NORWALK, Conn., July 22 /PRNewswire-FirstCall/ -- Defentect (OTC Bulletin Board: SLNH) and San Diego State University's Department of Homeland Security Immersive Visualization Center ("Viz Lab") unveiled their joint Homeland Security project, a permanent, ongoing fixed radiation perimeter system featuring Defentect's gamma radiation detection technology. The deployment, at the entranceway to the Viz Lab courtyard on the SDSU campus, serves as a real time demonstration lab illustrating best practices and solutions to deter, detect and defend against the transport of radiological materials, core components of "dirty bombs."

According to Joey Dusina, Defentect's Vice President, Sales, "Defentect and SDSU now have a high profile place to highlight this vital security technology -- complete with radiological materials. We've garnered interest from a wide variety of organizations to participate in demos, including the San Diego Police Department, San Diego County HAZMAT and U.S. Customs and Border Patrol (CBP), as well as queries from several regional hospitals including Alvarado Hospital and Scripps Memorial Hospital La Jolla. Hospitals are grappling with how to quickly and accurately identify and alert to the presence of radiologically contaminated persons following a radiological incident so they can be treated, while lowering risk of exposure to hospital personnel and other patients."

"People can visit Viz Lab's courtyard and experience the system firsthand," said Dr. Eric Frost, Founder and Co-Director of SDSU Immersive Visualization Center and Co-Director of the Homeland Security Master's Degree Program at SDSU. "This program is one more way the Viz Lab is working to evaluate and enhance tools and technologies to help both public and private entities deal with potential hazards with accuracy and speed -- important in the face of mounting and unseen threats."

The installation features Defentect's groundbreaking management, monitoring and messaging software platform DM3(TM); GT2 gross gamma detection sensor; OnSSI Ocularis IP Video command and control software integrated with AXIS P3301 Fixed Dome Network; and 233D Network Dome cameras.

About Defentect

Defentect (http://www.defentect.com/) is a homeland security technology firm offering intelligent threat awareness solutions to fight the worldwide threat of terrorism. Defentect is a business unit of Splinternet Holdings, Inc. (OTC Bulletin Board: SLNH), http://www.splinter.net/.

Defentect

CONTACT: Carol Jenks of Defentect, +1-518-203-1957,
cjenks@defentect.com; or Julia Lehman of Black Ink, +1-415-845-9186,
julia.lehman@blackinkllc.com

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

Jedi Mind CEO Responds to Questions and Elaborates on Gaming Software Applications Being Developed for New Technology

CARDIFF, Calif., July 22 /PRNewswire-FirstCall/ -- Jedi Mind, Inc. (Pink Sheets: JEDM), CEO, Brent Fouch was interviewed for the second time yesterday by Tom Allinder of HotStockChat.com (http://www.hotstockchat.com/). Since the last interview in early July, Brent Fouch, CEO of Jedi Mind has received numerous questions regarding the Company's gaming software applications, and Emotiv's technology. Mr. Fouch has responded to those questions via a blog post at HotStockChat.com and through the interview conducted yesterday.

During the interview the following topics were discussed:

Extensive research has indicated that focus groups preferred games whereby two players can compete rather than one player competing against the computer. Focus groups research found that it is much more gratifying to "beat" another opponent rather than the computer. Jedi Mind's gaming software will enable players to use their minds rather than a joystick or mouse to play.

The relationship between Jedi Mind and Emotiv was discussed; Emotiv is Jedi Mind's strategic partner in gaming and Jedi Mind management has a close relationship with Tan Le, CEO of Emotiv.

Emotiv headsets are sold out due to higher than expected demand. There is approximately an 8 week backlog of orders for these headsets. Jedi Mind will begin selling these headsets via their website when available. The headsets will be priced competitively at $299 each.

It was pointed out that CNN Technology, USA Today, Inc.com and The Discovery Channel had written articles and had video presentations on the mind control technology. Many of the articles highlighted gaming as a big application for the Emotiv technology which Jedi Mind is producing games for.

Mr. Fouch confirmed they were only about 2 weeks away from filming for CNBC's "Inside Business" with Senator Fred Thompson which would be featured on CNN Headline news as well as more than 1,000 other media outlets. Mr. Fouch pointed out that the video article was exclusively about Jedi Mind's gaming software.

Mr. Fouch closed with remarks regarding the fact that there were still lots of information forthcoming and that he encouraged interested parties to contact him directly or through HotStockChat.com.

HotStockChat.com is a well respected financial portal focusing on small cap stocks poised for significant growth. The interview with CEO, Brent Fouch can be seen and heard on the website at HotStockChat.com.

About Jedi Mind, Inc.

Jedi Mind, Inc. develops software for thought controlled technologies, allowing the user to interact with the computer and other machines through the power of the mind. The technology involves the use of a wireless headset, developed by our strategic partner, which detects brainwaves on both the conscious and non-conscious level. This neural processing technology makes it possible for computers to interact directly with the human brain. The Company plans to create multiple video games that are controlled by the power of your mind, which will be sold individually or bundled with the wireless headset.

Safe Harbor:

From time to time, the Company may issue news releases that contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. This material may contain statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. For those statements, the Company claims the protection of the safe harbor for forward-looking statement provisions contained in the Private Securities Litigation Reform Act of 1995 and any amendments thereto. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance are not statements of historical fact and may be "forward-looking statements." "Forward-looking statements" are based upon expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties that could cause actual results or events to differ materially from those anticipated.

Contact: Investor Relations, 760-753-7163

Jedi Mind, Inc.

CONTACT: Investor Relations of Jedi Mind, Inc., +1-760-753-7163

tw telecom Launches New Co-location Facility; Fiber Network Connects Denver to Colorado Springs- Quadruples Denver, Colorado Springs co-location space - Responds to overwhelming demand to secure environmentally protected co-location space - Connects Denver and Colorado Springs customers over own fiber network - Delivers industry leading networking and communications capabilities to businesses, organizations and public entities across the Front Range

AURORA, Colo., July 22 /PRNewswire-FirstCall/ -- tw telecom, a leading national provider of managed voice, Internet and data networking solutions for businesses, today announced the addition of a new 6,200 square foot co-location facility to serve the data backup requirements of area businesses.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080626/LATH527LOGO)

"We built this new state-of-the art facility to meet the overwhelming demand for secure, environmentally protected co-location space in the Denver area," said Rick Corbett, vice president and general manager for tw telecom in Denver and Colorado Springs. "This facility enables us to be that strategic alternative as we meet customer requirements for, and in delivering high capacity, high speed services for enterprises, organizations and public entities between local offices, cities and across the country that are affordable, reliable, secure and scalable."

Customers are invited to attend a special open house at the new facility on Thursday, July 23 from 2-6 p.m. Please call Rob Timmons, tw telecom Denver sales director at 303-566-5863 to register to attend.

tw telecom recently connected its Denver and Colorado Springs metro networks so customers in both cities can send and receive voice, Internet and data traffic directly over the secure and reliable tw telecom fiber network, which can connect them across town and across the country. The company has nearly 300 route miles of fiber in Colorado serving the needs of enterprises in healthcare, financial services, manufacturing, education and government and military.

The new co-location facility has diverse fiber entries, the most efficient heating ventilation and air conditioning support and industry-leading biometric and digital camera security. It is easily accessible from either the Denver or Colorado Springs metro networks.

"Customers want and need cost-effective, efficient and reliable communications solutions that maximize their network capabilities, and they need to be able to easily back-up their data and other network capabilities in a highly secure co-location facility," Corbett said.

tw telecom solutions ride on a metro Ethernet platform considered one of the most comprehensive in the country for network reach and product breadth. It is a foundation for next generation services the company offers including IP VPN and managed services. tw telecom is one of the top three providers of retail Ethernet ports in the country, according to industry analyst firm Vertical Systems Group.

"Enterprises, organizations and public entities looking for secure and reliable connectivity from 2 Megs to 10 Gigs - and to be able to back-up their communications in a highly secure co-location facility will find the right solution from tw telecom," Corbett added. For more information about tw telecom, visit http://www.twtelecom.com/.

About tw telecom

tw telecom holdings inc., a unit of tw telecom inc., headquartered in Littleton, Colo., provides managed network services, specializing in Ethernet and transport data networking, Internet access, local and long distance voice, VoIP, VPN and security, to enterprise organizations and communications services companies throughout the U.S. As a leading provider of integrated and converged network solutions, tw telecom delivers customers overall economic value, quality, service, and improved business productivity. Please visit http://www.twtelecom.com/ for more information.

Photo: http://www.newscom.com/cgi-bin/prnh/20080626/LATH527LOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com tw telecom

CONTACT: Bob Meldrum of tw telecom, +1-303-566-1354,
bob.meldrum@twtelecom.com

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

Chinese Search Engine Youdao Uses TopCoder Competition Platform to Find Technical TalentSearch Engine Subsidiary of NetEase Attracts 17,000 Competitors in Algorithm Tournament for Cash and Jobs

GLASTONBURY, Conn., July 22 /PRNewswire/ -- TopCoder , Inc., today announced with China-based NetEase, , and its independently developed search engine subsidiary, Youdao, the winners of the NetEase/Youdao programming competition, a multi stage computer programming challenge seeking the best and brightest algorithmists from across China. Yi Yang, (TopCoder handle: ahyangyi), was awarded first prize of $7,300 with a score of 2804. Yang successfully answered all six algorithmic problems. Second place and $4,300 went to Huacheng Yu, (yuhch123), with a score of 1984, and third place was taken by TianCheng Lou, (ACRush) who earned $1,400 with his score of 1583.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080820/NYW078LOGO )

All three top finalists are Tsinghua University students and long time TopCoder members having achieved advanced placement in multiple TopCoder High School, Collegiate and Open tournaments. Yang was most recently TopCoder High School champion in 2008. More than 17,000 programmers registered in May for a chance to qualify and advance to Monday's onsite finals in Beijing and earn part of a grand total of more than $70,000 in prizes. Participants solved a series of algorithmic brain teasers in Java, C++, C# or VB.

"As a company driven by technology, NetEase has been focusing on the discovery and training of new technical talent," said Feng Zhou, NetEase Senior Vice President and Head of Youdao. "Youdao wanted to provide a stage for competitors and collaborating with a professional programming competition provider like TopCoder, brings a great dynamic into China's IT companies and accelerates the development of our industry. Youdao Nanti will continue as a competition brand in the future."

Top performers also discussed internship and employment opportunities with NetEase Youdao divisions such as NetEase Youdao Search, the NetEase Hangzhou Research Institute and the NetEase Guangzhou Game Development Department.

"TopCoder is very pleased and excited by the level of skills and dedication demonstrated by the competitors in this event," said Jack Hughes, Chairman and Founder of TopCoder, Inc. "Our Chinese members have been performing very well in our recent international events, which indicates the overall quality of the technical talent pool in China is making it one of the leading talent hot spots of the world."

TopCoder competitions offer sponsors a powerful branding platform within the TopCoder global community of proven developers that provides a unique opportunity to build valuable relationships and to hire some of the best developers in the world.

About TopCoder, Inc.

TopCoder is the world's largest competitive software development community with more than 210,000 developers representing over 200 countries. TopCoder hosts the largest and most comprehensive developer ratings and performance metrics available. The TopCoder community builds software for a wide-ranging client base through a competitive, rigorous, standards based methodology. This methodology results in a highly consistent set of software components allowing a software-as-parts approach to application development. TopCoder makes this large library of software components built through competition available to all of our clients. Utilizing a world-wide member base and this library, TopCoder seeks to lower the cost of software development while increasing both the speed at which applications can be developed and the quality of the ultimate application. For more information about sponsoring TopCoder events, recruiting TopCoder members and utilizing TopCoder's software services, visit http://www.topcoder.com/ .

TopCoder is a registered trademark of TopCoder, Inc. in the United States and other countries. All other product and company names herein may be trademarks of their respective owners.

Available Topic Expert: For information on the listed expert, click appropriate link.

Jack Hughes https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=87495 Jim McKeown TopCoder, Inc. 860.633.5540 jmckeown@topcoder.com

Photo: http://www.newscom.com/cgi-bin/prnh/20080820/NYW078LOGO TopCoder, Inc.

CONTACT: Jim McKeown, TopCoder, Inc., +1-860-633-5540,
jmckeown@topcoder.com

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

Diebold Evolves Self-Service Vault Access Solutions With Electronic Vault Attendant (EVA) EliteSolution improves employee efficiency and user satisfaction and mitigates risks

NORTH CANTON, Ohio, July 22 /PRNewswire-FirstCall/ -- To combat safe deposit box fraud and mitigate risk for both financial institutions and their customers, Diebold, Incorporated has introduced the Electronic Vault Attendant (EVA) Elite, the first solution of its kind to offer innovative, dual-controlled vault and safe deposit box access for financial institutions.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080725/DIEBOLDLOGO )

EVA Elite is a comprehensive, self-service solution utilizing identity management, biometrics and access control to offer secure customer access to safe deposit boxes, while eliminating the necessity of a vault attendant. Its dual controls include both physical access control to grant entry to the vault's daygate, as well as the use of both an electronic and physical key to enable safe deposit box owners to gain access to only their assigned boxes. By eliminating the need for a vault attendant, EVA Elite enables branch personnel to focus on core capabilities and higher-value, sales-focused tasks.

The EVA Elite solution can be customized depending upon the level of security desired by a financial institution. Numerous reader devices can be used singularly or combined with the system for enrollment and access to the vault daygate, including:

-- Fingerprint -- Hand geometry -- Card swipe -- Signature capture

Used in addition to both the physical and electronic safe deposit box keys, the EVA Elite solution integrates multiple access methods to increase security while enhancing the user experience.

Several months ago, Randolph Brooks Federal Credit Union of South Central Texas implemented the EVA Elite solution at its Bulverde, Texas, branch.

"We've been very pleased with the response we've received from members and the improved efficiency of our staff since we implemented EVA Elite," said Pat Tolle, vice president, technical services, Randolph Brooks Federal Credit Union. "The solution has greatly freed up employee time, and the additional layer of security has impressed our members. Members have expressed that they appreciate the self-service aspect, as well as the dual access control and the physical safe deposit box key which they maintain." Tolle also said he expects to implement the system at many of their other 31 Randolph Brooks Federal Credit Union branches.

Security is enhanced with the EVA Elite solution because dual control mitigates risk of both internal and external fraud by incorporating both electronic and physical access control. No other solution on the market combines daygate access control with electronic key access to the safe deposit box and a physical key managed by the customer. In addition, EVA Elite provides comprehensive record keeping, including historical reports, as well as reports about safe deposit box holders' usage.

"Today's economic environment makes fraud protection even more critical," said Bradley J. Stephenson, vice president, Diebold Security. "Our customers now have the ability to decrease their liability for safe deposit box fraud, while also more efficiently utilizing their personnel."

Diebold has been evolving self-service vault attendant technology for nearly a decade. Diebold's Electronic Vault Attendant is also available in a vault-access-only model, named EVA, which provides daygate access control. Both the EVA and EVA Elite solutions improve employee efficiencies and deliver an enhanced customer experience.

About Diebold Security

Diebold Security is a leading security integrator with representation in every region of the world. Focusing on the sale, installation and service of security components, Diebold Security provides comprehensive protection and detection solutions to the commercial, financial, government and retail markets. For more information, visit http://www.dieboldsecurity.com/.

About Diebold

Diebold, Incorporated is a global leader in providing integrated self-service delivery and security systems and services. Diebold employs more than 17,000 associates with representation in nearly 90 countries worldwide and is headquartered in Canton, Ohio, USA. Diebold is publicly traded on the New York Stock Exchange under the symbol 'DBD.' For more information, visit the company's Web site at http://www.diebold.com/, or visit http://www.diebold.com/150 to learn more about Diebold's 150-year history.

Photo: http://www.newscom.com/cgi-bin/prnh/20080725/DIEBOLDLOGO Diebold, Incorporated

CONTACT: Media Relations, DeAnn Zackeroff, +1-330-490-5220,
deann.zackeroff@diebold.com; or Investor Relations, Christopher Bast,
+1-330-490-6908, christopher.bast@diebold.com, both of Diebold Incorporated

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

HowStuffWorks.com Campaign Proves Determination and Curiosity More Powerful than GravityX-Treme Sports Celebrity 'Keeps Asking' People to Get Smarter and Test the Limits While Driving Awareness for Spina Bifida

ATLANTA, July 22 /PRNewswire/ -- HowStuffWorks.com has teamed up with Aaron 'Wheelz' Fotheringham, the first person to perform a back flip in a wheelchair and inventor of hardcore sitting, for the return of the highly acclaimed 'Keep Asking' campaign. This year's campaign is designed to demonstrate the power of determination and curiosity, while encouraging people to get smarter.

Fotheringham, who was born with Spina Bifida, mastered the back flip on July 13, 2006 in his hometown of Las Vegas, Nev. While looking for compelling footage for this year's campaign, the HowStuffWorks.com team found Fotheringham's footage, felt it embodied the spirit of the site and was compelled to help tell Aaron's story.

In addition to the commercial, Aaron also tells the world how the wheelchair back flip came to be on the site. For the summer campaign, HowStuffWorks.com has also partnered with the Spina Bifida Association to drive awareness and donations to the organization.

"Aaron's achievements are an example of overcoming life's challenges and soaring to amazing heights - literally," said Cindy Brownstein, president and chief executive officer, SBA. "He is one of the over 180,000 individuals living with Spina Bifida in this country for whom the SBA actively provides programs and support services in hopes of a better tomorrow. We're thrilled that the HowStuffWorks.com campaign captures Aaron's tremendous spirit while bringing greater understanding to Spina Bifida."

This year's campaign builds upon the success of 'Scuba Cat,' which launched last year and quickly became a viral sensation. As with last year's campaign, visitors to the site are encouraged to unleash and embrace their natural curiosity. The integrated on-air and online assets were developed to run across HowStuffWorks.com parent company, Discovery Communications', portfolio of assets.

"More than just an advertising campaign, 'Keep Asking' is at the heart of what we do at HowStuffWorks.com, encouraging and enabling people to explore, understand and be inspired by the world around them," said Dawn Whaley, executive vice president of marketing and strategic relations for HowStuffWorks.com.

In addition to the commercial featuring 'Wheelz,' the series includes a group of daredevils who opt to take the plunge in a convertible skydiving car and the original 'Scuba Cat.' The campaign was developed in partnership with Preston-Kelly, Inc. of Minneapolis.

About HowStuffWorks.com:

HowStuffWorks.com is an online source of credible, unbiased and easy-to-understand explanations of how the world actually works. The site has won hundreds of awards since its inception, including multiple Webby Awards, Time Magazine's "25 Web Sites We Can't Live Without" and PC Magazine's "Top 100 Web Sites." In December 2007, HowStuffWorks.com was acquired by Discovery Communications and became part of Discovery's digital media strategy. Headquartered in Atlanta, Ga., HowStuffWorks.com was a subsidiary of The Convex Group, a media and technology company, from 2003 to 2007.

Twitter Facebook RSS feeds Videos with Embed Codes

HowStuffWorks.com

CONTACT: Nick Mendoza of Zeno Group for HowStuffWorks.com,
+1-310-566-3984, nick.mendoza@zenogroup.com, or Juliet Farrell of
HowStuffWorks.com, +1-240-662-1707, Juliet_farrell@discovery.com

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

Pratt & Whitney Awarded $684 Million in New Contracts for F135 Engine Production

EAST HARTFORD, Conn., July 22 /PRNewswire-FirstCall/ -- The U.S. Department of Defense has awarded Pratt & Whitney a $571 million production contract for F135 engines to power the F-35 Lightning II. This low rate initial production (LRIP) contract covers production, sustainment, spare parts and engineering support for the third lot of F135 engines, including 10 conventional take-off and landing (CTOL) and 11 short-takeoff/vertical-landing (STOVL) engines for F-35 aircraft. Additionally, Pratt & Whitney has been awarded a $113 million contract for long lead material procurement to produce 32 F135 engines for the fourth lot of F135 engines. Pratt & Whitney is a United Technologies Corp. company.

"Pratt & Whitney is proud to be producing operational F135 engines scheduled for delivery later this year," said Warren Boley, vice president, Pratt & Whitney F135 programs. "These contracts demonstrate the maturity of the F135 engine program, which has completed more than 100 successful test flights and hover pit testing, meeting the demanding STOVL vertical thrust requirements."

"The F135 has demonstrated very high reliability during the F-35 flight test program, surpassing 130 flight test hours without a single engine event," Boley said. "This is a very significant year for the F135 engine and the F-35 Lightning II program. Pratt & Whitney continues to proudly support both Lockheed Martin and the F-35 Joint Program Office on this important program."

Pratt & Whitney has designed, developed and tested the F135 to deliver the most advanced fifth generation fighter engine for the U.S. Air Force, Marine Corps and Navy, as well as eight international partner countries. The F135 is derived from proven technology of the only operational fifth generation fighter engine, the Pratt & Whitney F119. It has been further enhanced with technologies developed in several Air Force and Navy technology programs.

The F135 is the only engine powering the F-35 Lightning II flight test program. The F135 propulsion system has proven it can meet diverse aircraft requirements, and the ground-and-flight-test experience demonstrates the maturity and the associated reliability of the F135 engine for armed forces around the world.

Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and building industries.

This press release contains forward-looking statements concerning future business opportunities. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to changes in funding related to the F-35 aircraft and F135 engines, changes in government procurement priorities and practices or in the number of aircraft to be built; challenges in the design, development, production and support of technologies; as well as other risks and uncertainties, including but not limited to those detailed from time to time in United Technologies Corp.'s Securities and Exchange Commission filings.

Erin Dick Matthew Perra Pratt & Whitney Military Engines Pratt & Whitney 860.726.8387 860.595.6515 erin.dick@pw.utc.com matthew.perra@pw.utc.com

Pratt & Whitney

CONTACT: Erin Dick of Pratt & Whitney Military Engines, +1-860-726-8387,
erin.dick@pw.utc.com, or Matthew Perra of Pratt & Whitney, +1-860-595-6515,
matthew.perra@pw.utc.com

Web Site: http://www.pratt-whitney.com/

MTV Games, Harmonix and EA Announce Rock Band(R) Country Track Pack(TM) Available Now in North America

CAMBRIDGE, Mass., July 22 /PRNewswire/ -- Harmonix, the leading developer of music-based games, and MTV Games, a part of Viacom's MTV Networks, , along with distribution partner Electronic Arts Inc. , today announced the release of Rock Band Country Track Pack(TM), the first Rock Band game focused exclusively on country music. The standalone software is available now at retail stores nationwide for the Xbox 360 video game and entertainment system from Microsoft, PLAYSTATION 3 computer entertainment system, PlayStation 2 computer entertainment system and Wii(TM) system. The suggested retail price for Rock Band Country Track Pack is $29.99.

Featuring 21 tracks from some of country's biggest artists, such as Willie Nelson, Alan Jackson, Kenny Rogers, Kenny Chesney, Jason Aldean and Shania Twain, Rock Band Country Track Pack is a standalone software product that allows owners of Rock Band and Rock Band 2 to keep the party going with a whole new setlist. (To view a full list of tracks please click here.) Thirteen of the on-disc tracks are brand new to the Rock Band platform and will be exclusive to the Rock Band Country Track Pack disc for a limited time before joining the Rock Band Music Store as downloadable content, including music from Keith Urban, Martina McBride, Montgomery Gentry, Sara Evans and more.

In addition, Rock Band Country Track Pack, like all Rock Band software, is compatible with all Rock Band controllers, as well as most Guitar Hero and authorized third-party controllers and microphones.

Fans who buy the Rock Band Country Track Pack for Xbox 360 or PLAYSTATION 3 system can play directly from the disc or download the songs onto their consoles' hard drives through a free offer with Xbox LIVE online entertainment network or the PlayStation Network. Once downloaded, the songs will automatically appear in the player's custom Rock Band library and can be integrated into setlists and played in all game modes. With more than 700 tracks available in the Rock Band music catalogue and regular releases of downloadable content every week, Rock Band Country Track Pack is yet another way music-lovers can continue to expand and customize their music libraries.

The Rock Band franchise is the ultimate platform for music fans and gamers to interact with music like never before. The game challenges players to put together a band and tour for fame and fortune -- all while learning to master lead/bass guitar, drums and vocals. Featuring the most master recordings of any music game ever by the world's biggest rock artists, the Rock Band music catalogue includes tracks that span every genre of rock, ranging from alternative and classic rock, to heavy metal and punk.

Rock Band Country Track Pack is rated "E10+" for Everyone 10+ with a descriptor of Lyrics by the ESRB. Rock Band and Rock Band 2 are currently available for Xbox 360, PLAYSTATION 3 and PlayStation 2 systems and Wii.

For more information on Rock Band and Harmonix Music Systems please visit http://www.rockband.com/ and http://www.harmonixmusic.com/.

About MTV Networks

MTV Networks, a division of Viacom , is one of the world's leading creators of entertainment content, with brands that engage and connect diverse audiences across television, online, mobile, games, virtual worlds and consumer products. The company's portfolio spans more than 150 television channels and 350 digital media properties worldwide, and includes MTV, VH1, CMT, Logo, Harmonix, Nickelodeon, Nick at Nite, Noggin, The N, AddictingGames, Neopets, COMEDY CENTRAL, Spike TV, TV Land, Atom, Gametrailers and Xfire.

About MTV Games

MTV Games is dedicated to creating, marketing and publishing high-quality, innovative interactive products that are relevant to the MTV audience and complement the core values of the MTV Networks brands.

About Harmonix Music Systems, Inc.

Harmonix Music Systems, Inc., based in Cambridge, MA, and established in 1995, is the leading developer of groundbreaking music-oriented videogames. Harmonix was founded by Alex Rigopulos and Eran Egozy, who formed the company to invent new ways for non-musicians to experience the unique joy that comes from making music and have pioneered music and rhythm gaming in the US. For more information please visit http://www.harmonixmusic.com/.

About Electronic Arts

Electronic Arts Inc. (EA), headquartered in Redwood City, California, is a leading global interactive entertainment software company. Founded in 1982, the Company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, wireless devices and the Internet. Electronic Arts markets its products under four brand names: EA(TM), EA SPORTS(TM), EA Mobile(TM) and POGO(TM). In fiscal 2009, EA posted GAAP net revenue of $4.2 billion and had 31 titles that sold more than one million copies. EA's homepage and online game site is http://www.ea.com/. More information about EA's products and full text of press releases can be found on the Internet at http://info.ea.com/.

2009 Harmonix Music Systems, Inc. All Rights Reserved. Harmonix, Rock Band and all related titles and logos are trademarks of Harmonix Music Systems, Inc., a MTV Networks company. Rock Band, Rock Band 2 and Rock Band Track Packs developed by Harmonix Music Systems, Inc. MTV: Music Television, MTV Games and all related titles and logos are trademarks of MTV Networks, a division of Viacom International Inc. All other marks are the property of their respective owners. EA, EA SPORTS, EA Mobile and POGO are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and/or other countries. Microsoft, Xbox. Xbox 360 and Xbox Live are trademarks of the Microsoft group of companies. "PlayStation", "PLAYSTATION" and "PS" Family logo are registered trademarks of Sony Computer Entertainment Inc. Guitar Hero is a registered trademark of Activision Publishing, Inc. All other marks are the property of their respective owners.

MTV Games

CONTACT: Tracie Snitker of Reverb Communications for Harmonix,
+1-209-586-1495, ext. 104, Tracie@reverbinc.com; or Jeff Castaneda of MTV
Communications, +1-212-846-6774, jeff.castaneda@mtvstaff.com; or Andrew Wong
of Electronic Arts, +1-650-628-2781, awong@ea.com

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

South Bay Community Services Receives Grant from Verizon Wireless' HopeLine Program for Local Collection Drive EffortsFunding to benefit Emergency Domestic Violence Shelter

SAN DIEGO, July 22 /PRNewswire/ -- South Bay Community Services, a non-profit that provides services and programs for families, children and individuals in South San Diego County affected by domestic violence, will be awarded $2,000 as the result of collecting more than 200 phones and accessories during the one-month collection drive by Verizon Wireless' HopeLine program. South Bay Community Services will be presented with the grant at the Verizon Wireless store at 223 Broadway, San Diego, Calif. 92101 on July 23 at 10 a.m.

South Bay Community Services (SBCS), a 2008 HopeLine grant recipient, teamed up with the recently opened Verizon Wireless Communications Store in San Diego, Calif. to collect no-longer-used mobile phones and accessories for a $2,000 grant through the HopeLine program. During the one-month phone drive, SBCS exceeded the collection drive goal, collecting 187 phones and 23 accessories.

"Domestic violence is an on-going issue in our community and it is crucial that emergency services remain available to those in need," said Kathryn Lembo, executive director of South Bay Community Services. "Assistance from community partners such as Verizon Wireless plays an incredibly important role in allowing South Bay Community Services to continue serving children, youth and families in need."

The regional phone collection drive is part of an overall community awareness program to highlight local domestic violence agencies and provide additional opportunities for HopeLine grants.

"It was extremely rewarding to participate in a national program like HopeLine at the regional level, benefitting the community we serve," said Luis Lopez, manager of the San Diego, Calif. Verizon Wireless Communications Store. "The HopeLine program is one of the many reasons we are proud to be a part of Verizon Wireless and we are happy to support this worthy cause."

Verizon Wireless' HopeLine program puts the nation's most reliable wireless network to work in our communities by turning unused wireless phones into support for victims of domestic violence. Verizon Wireless collects no-longer-used wireless phones, batteries and accessories in any condition from any wireless service provider at Verizon Wireless Communications Stores nationwide. Phones that can be refurbished are sold for reuse and those without value are disposed of in an environmentally sound way. Proceeds from the HopeLine program are used to provide wireless phones and cash grants to local shelters and non-profit organizations that focus on domestic violence prevention and awareness.

Since the HopeLine program's launch in 2001, Verizon Wireless has collected more than 5.6 million phones and donated more than $6.3 million in cash grants to organizations engaged in raising the awareness of domestic violence and its prevention. In 2008, HopeLine granted nearly 20 Southern California domestic violence prevention agencies with over $150,000 in grants to fund existing and new programs. For more information please visit http://www.verizonwireless.com/hopeline.

About South Bay Community Services

South Bay Community Services provides the most comprehensive range of services and programs for families, children and individuals in South San Diego County. The programs are for everyone at any time in their lives when they need them the most. With the continuous support from community members and generous sponsors, they are able to respond to the overwhelming needs of the community - touching the lives of more than 50,000 annually.

http://www.southbaycommunityservices.org/ About HopeLine

HopeLine accepts wireless phones and accessories in any condition from any manufacturer for reuse and recycling. All phones donated to HopeLine that can be refurbished are sold for reuse and those that are not salvageable are recycled in an environmentally sound way under a zero landfill policy. To find a store near you or for additional information about HopeLine, visit http://www.verizonwireless.com/hopeline.

About Verizon Wireless

Verizon Wireless operates the nation's most reliable and largest wireless voice and data network, serving more than 86.6 million customers. Headquartered in Basking Ridge, N.J., with more than 86,000 employees nationwide, Verizon Wireless is a joint venture of Verizon Communications and Vodafone (NYSE and LSE: VOD). For more information, visit http://www.verizonwireless.com/. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at http://www.verizonwireless.com/multimedia.

Verizon Wireless

CONTACT: Patricia E. Chavez of South Bay Community Services,
+1-619-997-7995, pchavez@csbcs.org; or Amanda Ansell of GolinHarris,
+1-714-662-5112, aansell@golinharris.com, for Verizon Wireless

Web Site: http://www.verizonwireless.com/
http://www.southbaycommunityservices.org/

Harris Corporation Deploys ONE Broadcast Communications System for the American Forces NetworkNew System Prepares AFN for Move to High-Definition Programming

CINCINNATI, July 22 /PRNewswire-FirstCall/ -- Harris Corporation , an international communications and information technology company, has installed a comprehensive high-definition (HD) broadcast communications system for the American Forces Network Broadcast Center (AFN-BC) at the Defense Media Center in Riverside, Calif. Comprising broadcast routing, automation, video server, core processing and asset management products, the Harris ONE system at AFN brings together highly integrated, cost-effective solutions that are ideal for organizations upgrading to HD services.

AFN delivers news, information and entertainment to almost one million troops worldwide outside of the United States. "AFN has been utilizing video server technology since 1995," said Jerry Shorter, chief of broadcast engineering for AFN. "We wanted to improve our legacy ingest and on-air video server capability, backup redundancy, and move toward receipt and delivery of all programming in digital format. Additionally, we wanted to advance from just receiving HD to providing a technical path of broadcasting it to troops globally."

Designed by systems integrator Snader and Associates, the Harris system at the AFN Broadcast Center employs 18 NEXIO AMP(TM) servers, which enable AFN to prepare for air and play out up to 12 standard-definition programs daily. Two Harris/Isilon Systems NXIQ(TM) clustered storage silos provide robust, reliable near-line storage for AFN content. To maximize speed and consistency in the quality assurance process, the Videotek QuiC(TM) media analysis server analyzes compressed digital content during ingest and enables problems to be corrected on the fly with no operator intervention. Invenio digital asset management oversees concurrent, mission-critical tasks taking place throughout the broadcast workflow and enables AFN to maximize the value of its digital assets.

CCS Navigator(TM) software enables AFN to streamline its day-to-day operational workflow by providing centralized, real-time control and monitoring of the entire broadcast system - including third-party products such as Dell Power Edge servers. With Navigator, operators can take control of any SNMP-enabled device on the network using a familiar, intuitive application, and drag and drop parameters and alarms from multiple devices to easily build virtual device control and monitoring surfaces.

In response to AFN-BC Engineering's performance work statement, hundreds of new custom user interface pages were designed to meet the specific requirements of the AFN workflow, improve control efficiency and effectively monitor hardware failures across the network.

"Because maintaining full operational control of a network is critical to today's multichannel broadcasters, this aspect of the new AFN system was key in terms of size and scope and the overall work that was put into this project," said Lucius Stone, director, Government Solutions, Harris Broadcast Communications. "Harris customized operator screens for audio and video processing, software routing control panels and more than 300 user interface pages for the AFN installation, which now represents one of our largest, single-site custom user interface implementations."

About American Forces Network

The Department of Defense operates AFN American Forces Network . AFN, a worldwide radio and television broadcast network, serves nearly one million American service men and women, Department of Defense civilians and their families overseas, stationed at bases in 175 countries as well as 140 U.S. Navy ships at sea. AFN broadcasts the most popular American radio and television programs from all the major networks. AFN is a service of the American Forces Radio and Television Service (AFRTS), a component of the Defense Media Activity (DMA). For more information about AFN's programming, please visit http://www.myafn.net/.

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 approximately $5 billion of annual revenue and 15,000 employees -- including nearly 7,000 engineers and scientists. Harris is dedicated to developing best-in-class assured communications products, systems, and services. Additional information about Harris Corporation is available at http://www.harris.com/.

Harris Corporation

CONTACT: Susan Sheppard, Government Solutions Unit, Harris Broadcast
Communications, +1-585-624-7969, susan.sheppard@harris.com

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

Japan's National Police Agency Selects Sikorsky S-92(R) Helicopter for Special Operations

STRATFORD, Conn., July 22 /PRNewswire-FirstCall/ -- Sikorsky Aircraft Corp. today announced the National Police Agency (NPA) in Japan has selected the S-92 helicopter to conduct search and rescue and special mission operations. Sikorsky is a subsidiary of United Technologies Corp.

(Logo: http://www.newscom.com/cgi-bin/prnh/20060403/SIKORSKYLOGO )

"Sikorsky is proud to continue our long association with the NPA and to provide them with a world-class, multi-mission solution," said Carey Bond, Vice President and Chief Marketing Officer for Sikorsky.

The NPA has employed Sikorsky helicopters since 1996, and today the agency's fleet includes two S-76B(TM) helicopters. These perform missions including search and rescue, transportation, utility and a variety of special requirements for the NPA.

The S-92 helicopter is the first helicopter in its class certified by the U.S. Federal Aviation Administration to the most rigorous standards, without any exceptions or waivers. The S-92 helicopter also is certified by the European Aviation Safety Agency to its very stringent safety standards.

Nearly 100 S-92 helicopters have been delivered to date, and the worldwide fleet has accumulated more than 160,000 flight hours. The aircraft perform diverse missions including the transport of heads of state in several nations and search and rescue operations off the U.K. coast. The S-92 helicopter also has become a helicopter of choice for transporting oil workers to offshore rigs, often in extreme climates such as the North Sea.

Sikorsky Aircraft Corp., based in Stratford, Connecticut, USA, is a world leader in helicopter design, manufacturing and service. United Technologies Corp., based in Hartford, Conn., provides a broad range of high technology products and support services to the aerospace and building systems industries.

Photo: http://www.newscom.com/cgi-bin/prnh/20060403/SIKORSKYLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Sikorsky Aircraft Corp.

CONTACT: Paul Jackson, +1-860-614-3899, Paul.Jackson@sikorsky.com, or
Marianne Heffernan, +1-203-386-4373, mheffernan@sikorsky.com, both of Sikorsky
Aircraft Corp.

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

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