Eaton Vance Credit Opportunities Fund Declares Monthly Distribution

BOSTON, Nov. 2 /PRNewswire-FirstCall/ -- Eaton Vance Credit Opportunities Fund , a closed-end management investment company, today declared a monthly distribution of $0.062 per common share. As portfolio and market conditions change, the rate of future distributions may change. The distribution is expected to be paid on November 30, 2009, to shareholders of record on November 12, 2009. The ex-dividend date is November 9, 2009.

At this time the Fund believes that a portion of the November distribution may be comprised of amounts from sources other than net investment income. If that is the case, you will be notified in writing. Further information will be available prior to the payment date at http://individuals.eatonvance.com/. The final determination of tax characteristics of the Fund's distributions will occur after the end of the year, at which time it will be reported to the shareholders.

The Fund is managed by Eaton Vance Management, a subsidiary of Eaton Vance Corp. , based in Boston, one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $157.0 billion in assets as of September 30, 2009, offering individuals and institutions a broad array of investment products and wealth management solutions. The Company's long record of providing exemplary service and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors. For more information about Eaton Vance, visit http://www.eatonvance.com/.

Eaton Vance Management

CONTACT: Investor Contact, +1-800-262-1122

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

SuccessFactors Names Industry Leaders and Commentators as Key Presenters for SuccessConnect EuropeEuropean User Conference to Highlight Customer Presentations, Panel Debate and Keynote Presentation from Author and Renowned Financial Times Journalist, Richard Donkin

LONDON, Nov. 2 /PRNewswire-FirstCall/ -- Today SuccessFactors , the global leader in business execution software, announced the full details of its upcoming annual European user conference, SuccessConnect, to be held at The Hilton, Barcelona, Spain, 9-10 November. The conference will be keynoted by Richard Donkin, author of Blood Sweat and Tears, The Evolution of Work and Financial Times columnist on work and careers, and Lars Dalgaard, founder and CEO of SuccessFactors, as well as attracting raft of industry leaders, C-level executives, analysts and commentators from across Europe. Attendees will discuss and exchange best practice methodology, delivering insight into how to drive business performance and business execution.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090602/SF26086LOGO)

SuccessConnect will also feature customer-led sessions from Hilti Corporation, Novozymes and Celsa Group. In addition, SuccessFactors' experts will present "Product Tracks" which discuss emerging products for compensation management, core performance and analytics, along with a "Prospect Session", "Breakout Sessions" and a panel debate featuring SuccessFactors customers discussing business execution and how other organisations are leveraging technology to execute more effectively and drive real, bottom-line results. This session will be moderated by keynote speaker, author and journalist, Richard Donkin.

Agenda Highlights at a Glance Include: -- Keynote Presentation, The Future of Work, Richard Donkin, author and journalist - Richard Donkin, author of the new book, The Future of Work, has been investigating the dominant forces that will be shaping the international workforce in the next 20 years. How will these forces shape the thinking of employees and how will they influence the development of performance management in companies? When talent is one of our most precious commodities, how can we make the best of it in business? -- Keynote Presentation, Execution is the Difference(TM), Lars Dalgaard, CEO and Founder, SuccessFactors - Hear SuccessFactors leader demonstrate HOW execution is all about people - aligning them, preparing them and engaging them, and WHY -- Panel Debate, Executing in Today's Environment - Moderator: Richard Donkin - Hear how other organisations are leveraging technology to execute more effectively and drive real, bottom-line results. -- Customer Session, Gaining Executive Support for People Performance on a Global Basis - Hilti Corporation, Eivind Slaaen, Sr. Vice President, Human Resources - Based in Liechtenstein, Hilti provides tools and services for construction professionals world-wide. In this presentation, you will hear how Hitli's executive team supports People Performance, see examples of how the importance of talent development align with Hilti's corporate strategy, and how that strategy is communicated by the Executive Board to more than 20,000 employees in 50 countries.

As one of the market's leading cloud-computing vendors, SuccessFactors recently unveiled its Business Execution (BizX) Software suite, which enables companies to bridge the gap between strategy and execution. The Business Execution Software suite empowers the C-level and human resources professionals alike to tie the performance of their people directly to overall business goals and execute more effectively everyday.

About SuccessFactors, Inc.

SuccessFactors is the global leader in Business Execution Software. The SuccessFactors Business Execution Suite improves business alignment and people performance for companies of all sizes. More than 5 million users and 2,800 companies use SuccessFactors every day. For more information, visit: http://www.successfactors.com/.

Execution Is The Difference(TM) Follow us: http://twitter.com/SuccessFactors Fan us: http://facebook.com/SuccessFactors Contacts: SuccessFactors Dominic Paschel, 415-262-4641 Director of Public & Investor Relations dpaschel@successfactors.com Vanessa Land, +44 (0) 870 242 7469 (U.K. Public Relations Agency for SuccessFactors) vanessa@devonshiremarketing.com

Photo: http://www.newscom.com/cgi-bin/prnh/20090602/SF26086LOGO
http://photoarchive.ap.org/
PRN Photo Desk photodesk@prnewswire.com SuccessFactors, Inc.

CONTACT: Dominic Paschel, Director of Public & Investor Relations of
SuccessFactors, +1-415-262-4641, dpaschel@successfactors.com; or Vanessa Land,
U.K. Public Relations Agency for SuccessFactors, +44 (0) 870 242 7469,
vanessa@devonshiremarketing.com

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

Uroplasty Reports Results for Second Quarter FY2010- Macroplastique(R) Year-over-Year U.S. Sales Continue Strong Growth - - SUmiT Trial Results Recommended for Publication in Journal of Urology - - Conference Call to be Held Today at 3:30 pm Central Time -

MINNEAPOLIS, Nov. 2 /PRNewswire-FirstCall/ -- Uroplasty, Inc. (NYSE Amex: UPI), a medical device company that develops, manufactures and markets innovative proprietary products to treat voiding dysfunctions, today reported financial results for the second fiscal quarter ended September 30, 2009.

"Our team continues to execute our strategy for the current fiscal year by growing U.S. Macroplastique sales and maximizing the potential for gaining a unique CPT code for Urgent PC® treatments," said David Kaysen, President & CEO. "During the quarter, we learned that a manuscript of the results from the SUmiT Trial has been recommended for publication in The Journal of Urology® and is tentatively scheduled to appear in the April 2010 issue. This study reports on a 220-subject, multicenter, randomized, controlled clinical trial designed to directly compare the effectiveness of PTNS using Urgent PC to a validated sham intervention over a 12-week period and is a major component of our strategy to expand and support third-party reimbursement coverage of Urgent PC treatments. The investigators' submission of this manuscript was ahead of the original timetable. We fully anticipate submitting an application to the American Medical Association (AMA) for a unique CPT code for PTNS prior to the November 11, 2009 deadline.

"While our fiscal second quarter and first half financial performance is below year-ago results, we are encouraged by the continued strong growth of our U.S. Macroplastique product sales," continued Mr. Kaysen. "Sales of our Macroplastique product in the U.S. through six months of our current fiscal year have about doubled in each quarter over the corresponding year-ago quarter. At the same time, Urgent PC sales in the U.S., while continuing to be challenged by the uncertain insurance reimbursement environment, have stabilized at about $1 million per quarter in each of the last two quarters. While European sales continue to be impacted by a competitive product launch, we saw growth in sales in the second fiscal quarter from distributors in two major European markets which had recorded a decline in the first fiscal quarter. At the same time, with the SUmiT clinical study expenses largely behind us, and our vigilant efforts to manage expenses to conserve cash, we have adequate liquidity to meet our needs for the next 12 months."

Fiscal Second Quarter and First Half Results for the Period Ended September 30, 2009

Net sales for the three months ended September 30, 2009 were $3.0 million versus $3.9 million for the second quarter of fiscal 2009. Net sales for the six months ended September 30, 2009 were $5.8 million versus $8.4 million for same period a year ago.

Net sales to customers in the U.S. during the three months ended September 30, 2009 totaled $1.5 million, as compared to net sales of $2.2 million for the three months ended September 30, 2008. Sales of Urgent PC of $960,000 declined from $2.0 million in the year-ago quarter. The trend in decline of Urgent PC sales over corresponding year-ago periods began in the second half of fiscal 2009 due to reimbursement related issues. Partially offsetting this decline was an increase in Macroplastique product sales to $528,000 from $254,000 in the year-ago quarter. Sales of Macroplastique have steadily increased because of increased sales and marketing focus. Net sales of Macroplastique to customers in the U.S. for the first half of fiscal 2010 totaled $949,000 versus $441,000 for the first six months of fiscal 2009.

Sales to customers outside of the U.S. for the three months ended September, 2009 were $1.5 million, down from $1.7 million in the year-ago period. Excluding the translation impact of fluctuations in foreign currency exchange rates, sales decreased by approximately 5%. The second fiscal quarter is normally the weakest of the year for the Company's international business. The sales decrease as compared to last year is mainly attributed to increased competition from a newly-introduced product competitive with Uroplasty's Macroplastique.

Sales to customers outside of the U.S. for the first half of fiscal 2010 were $2.8 million as compared to $4.0 million, a decrease of 29%, for the six months ended September 30, 2008. Excluding the translation impact of fluctuations in foreign currency exchange rates, sales decreased by approximately 20%. Also contributing to the decline in sales is the discontinuation in the current fiscal year in the U.K. of our I-Stop urethral sling product which accounted for approximately $101,000 in sales for the six months ended September 30, 2009 and $191,000 in sales in fiscal 2009.

Net loss for the second fiscal quarter ended September 30, 2009 was $875,000, or $0.06 per diluted share, versus a net loss of $561,000, or $0.04 per diluted share for the second quarter of last year. For the first half of fiscal 2010, the net loss was $2.2 million, or $0.15 per diluted share as compared with a net loss for the first half of fiscal 2009 of $968,000, or $0.06 per diluted share.

At September 30, 2009, cash and cash equivalents, and short-term investments were $5.8 million compared with $6.3 million at June 30, 2009 and $7.8 million as of March 31, 2009.

"Looking ahead, we expect U.S. sales of Macroplastique to continue to grow during the remainder of the fiscal year as we expect to benefit from our increased sales and marketing effort," continued Mr. Kaysen. "However, we do not expect that we will be able to return to significant sales growth or return to the historic sales level of Urgent PC in the U.S. until a new listed CPT code is assigned and payors create coverage policies that provide adequate reimbursement.

"For the past four quarters we have implemented a comprehensive program designed to educate Medicare carriers and private payer medical directors about the clinical efficacy of Urgent PC. I am pleased with how we have executed this strategy, and we are well ahead of our planned publication and presentation schedule. Phase I OrBIT data, published in September 2009 demonstrated that PTNS had comparable efficacy to the leading anticholinergic drug prescribed for overactive bladder. The data demonstrating sustained symptom improvement at one year from Phase 2 of the OrBIT study has been accepted for publication in the January 2010 edition of The Journal of Urology. With SUmiT study results available in spring 2010, we believe these publications, as well as others, will lead the medical directors to reaffirm or reinstate reimbursement, as well as aid us in our CPT Code application. Our overall goal remains to obtain a unique CPT code that will encourage broader use of Urgent PC. We are confident that we are moving closer toward attaining that goal," Mr. Kaysen concluded.

Conference Call

Uroplasty will host an audio conference call today at 3:30 pm Central, 4:30 pm Eastern, to review the financial results for the second fiscal quarter of 2010. David Kaysen, President and Chief Executive Officer and Medi Jiwani, Vice President, Chief Financial Officer and Treasurer will host the call. Individuals wishing to participate in the conference call should dial 866-561-1721 (domestic) or 480-629-9868 (international). An audio replay will be available for 30 days following the call at 800-406-7325 (domestic) or 303-590-3030 (international), with the passcode 4171526#.

About Uroplasty, Inc.

Uroplasty, Inc., headquartered in Minnetonka, Minnesota, with wholly-owned subsidiaries in

The Netherlands and the United Kingdom, is a medical device company that develops, manufactures and markets innovative proprietary products for the treatment of voiding dysfunctions. Our focus is the continued commercialization of our Urgent PC system, which we believe is the only FDA-approved minimally invasive nerve stimulation device designed for office-based treatment of urinary urgency, urinary frequency and urge incontinence - symptoms often associated with overactive bladder.

We also offer Macroplastique Implants, an injectable urethral bulking agent for the treatment of adult female stress urinary incontinence primarily due to intrinsic sphincter deficiency. For more information on the company and its products, please visit Uroplasty, Inc. at http://www.uroplasty.com/.

Forward-Looking Information

This press release contains forward-looking statements, which reflect our best estimates regarding future events and financial performance. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our anticipated results. We discuss in detail the factors that may affect the achievement of our forward-looking statements in our Annual Report on Form 10-K filed with the SEC. Further, we cannot assure you that our SUmiT clinical trial will produce favorable results, that even if it does produce favorable results third-party payors will provide or continue to provide coverage and reimbursement, or reimburse the providers an amount sufficient to cover their costs and expenses, or that we will timely obtain, or even succeed at all at obtaining, a specific "listed" CPT reimbursement code from the AMA for Urgent PC treatments. We further cannot assure that reimbursement or other issues will not further impact our fiscal 2010 results.

For Further Information: Uroplasty, Inc. David Kaysen, President and CEO, or Medi Jiwani, Vice President, CFO, and Treasurer 952.426.6140 EVC Group Doug Sherk (Investors) 415.896.6820 Chris Gale (Media) 646.201.5431 UROPLASTY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net sales $2,986,475 $3,920,516 $5,812,404 $8,446,138 Cost of goods sold 535,074 549,199 1,087,044 1,257,166 ------- ------- --------- --------- Gross profit 2,451,401 3,371,317 4,725,360 7,188,972 --------- --------- --------- --------- Operating expenses General and administrative 713,040 918,394 1,561,591 1,957,108 Research and development 435,898 327,978 963,713 733,498 Selling and marketing 1,968,054 2,505,598 4,025,342 5,125,632 Amortization 211,503 210,966 423,316 421,941 ------- ------- ------- ------- 3,328,495 3,962,936 6,973,962 8,238,179 --------- --------- --------- --------- Operating loss (877,094) (591,619) (2,248,602) (1,049,207) -------- -------- ---------- ----------- Other income (expense) Interest income 24,230 63,542 55,629 138,656 Interest expense (1,788) (6,750) (9,694) (13,585) Foreign currency exchange gain (loss) (7,365) 5,038 (14,697) (732) Other, net 2,000 (4,687) (183) (4,687) ----- ------ ---- ------ 17,077 57,143 31,055 119,652 ------ ------ ------ ------- Loss before income taxes (860,017) (534,476) (2,217,547) (929,555) Income tax expense 14,642 26,487 22,887 38,057 ------ ------ ------ ------ Net loss $(874,659) $(560,963) $(2,240,434) $(967,612) ========= ========== =========== ========= Basic and diluted loss per common share $(0.06) $(0.04) $(0.15) $(0.06) Weighted average common shares outstanding: Basic and diluted 14,946,540 14,916,540 14,942,179 14,916,540 UROPLASTY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS September 30, March 31, 2009 2009 (unaudited) ---------- ---------- Assets Current assets: Cash and cash equivalents & Short-term investments $5,792,867 $7,776,299 Accounts receivable, net 1,196,518 1,214,049 Inventories 486,269 495,751 Other 326,278 279,898 ------- ------- Total current assets 7,801,932 9,765,997 Property, plant, and equipment, net 1,389,493 1,401,229 Intangible assets, net 2,955,332 3,378,648 Prepaid pension asset 86,687 66,130 Deferred tax assets 79,367 68,793 ------ ------ Total assets $12,312,811 $14,680,797 =========== =========== Liabilities and Shareholders' Equity Current liabilities: Current portion - deferred rent $35,000 $35,000 Accounts payable 431,016 604,593 Income tax payable - 56,785 Accrued liabilities 902,718 1,231,620 ------- --------- Total current liabilities 1,368,734 1,927,998 Deferred rent - less current portion 130,114 147,576 Accrued pension liability 283,008 296,646 ------- ------- Total liabilities 1,781,856 2,372,220 --------- --------- Total shareholders' equity 10,530,955 12,308,577 ---------- ---------- Total liabilities and shareholders' equity $12,312,811 $14,680,797 =========== =========== UROPLASTY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended September 30, ------------- 2009 2008 ---- ---- Cash flows from operating activities: Net loss $(2,240,434) $(967,612) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 567,238 566,949 Loss on disposal of equipment 186 4,687 Share-based consulting expense - 36,409 Share-based compensation expense 291,462 453,592 Deferred income taxes (3,249) (10,164) Deferred rent (17,500) (17,500) Changes in operating assets and liabilities: Accounts receivable 91,206 537,959 Inventories 47,499 (11,128) Other current assets and income tax receivable (102,998) (108,041) Accounts payable (185,406) (145,610) Accrued liabilities (348,381) (634,851) Accrued pension liability, net and income tax payable (58,492) (44,772) ------- ------- Net cash used in operating activities (1,958,869) (340,082) ---------- -------- Cash flows from investing activities: Proceeds from sale of short-term investments 2,500,000 8,808,304 Purchase of short-term investments (2,000,000) (7,891,373) Purchases of property, plant and equipment (61,334) (130,421) Proceeds from sale of property, plant and equipment 2,000 - ----- --- Net cash provided by investing activities 440,666 786,510 ------- ------- Cash flows from financing activities: Repayment of debt obligations - (455,913) --- -------- Net cash used in financing activities - (455,913) --- -------- Effect of exchange rates on cash and cash equivalents 34,771 (194,967) ------ -------- Net decrease in cash and cash equivalents (1,483,432) (204,452) Cash and cash equivalents at beginning of period 3,276,299 3,880,044 --------- --------- Cash and cash equivalents at end of period $1,792,867 $3,675,592 ========== ========== Supplemental disclosure of cash flow information: Cash paid during the period for interest $6,145 $13,612 Cash paid during the period for income taxes 105,877 35,474

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

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

Our non-GAAP operating loss of approximately $475,000 for the three months ended September 30, 2009 was greater than the $98,000 operating loss in same period in fiscal 2009. Our non-GAAP operating loss was approximately $1,390,000 for the six months ended September 30, 2009 compared to an operating income of $8,000 in same period fiscal in 2009. We attribute the increased operating loss primarily to the decrease in sales and a lower gross margin rate, offset partially by a decrease in cash operating expenses.

Three Months Ended Six Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Gross Profit GAAP gross profit $2,451,401 $3,371,317 $4,725,360 $7,188,972 % of sales 82% 86% 81% 85% Share-based compensation 4,903 8,879 18,448 25,253 Depreciation expense 14,150 13,057 28,299 25,847 ------ ------ ------ ------ Non-GAAP gross profit 2,470,454 3,393,253 4,772,107 7,240,072 --------- --------- --------- --------- Operating Expenses GAAP operating expenses 3,328,495 3,962,936 6,973,962 8,238,179 Share-based compensation 113,909 198,131 273,014 464,748 Depreciation expense 57,546 62,104 115,623 119,161 Amortization expense 211,503 210,966 423,316 421,941 ------- ------- ------- ------- Non-GAAP operating expenses 2,945,537 3,491,735 6,162,009 7,232,329 --------- --------- --------- --------- Operating Loss GAAP operating loss (877,094) (591,619) (2,248,602) (1,049,207) Share-based compensation 118,812 207,010 291,462 490,001 Depreciation expense 71,696 75,161 143,922 145,008 Amortization expense 211,503 210,966 423,316 421,941 ------- ------- ------- ------- Non-GAAP operating income (loss) $(475,083) $(98,482) $(1,389,902) $7,743 --------- -------- ----------- ------

Uroplasty, Inc.

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

Web Site: http://uroplasty.com/

IPC The Hospitalist Company Reports Third Quarter 2009 Results

NORTH HOLLYWOOD, Calif., Nov. 2 /PRNewswire-FirstCall/ -- IPC The Hospitalist Company, Inc. , a leading national hospitalist physician group practice, today announced financial results for the third quarter ended September 30, 2009.

Third Quarter 2009 Highlights (comparisons are to third quarter 2008): -- Net revenue increased 23% to $77.5 million, with same-market area net revenue growth of 20% -- Patient encounters increased 19% to 823,000 -- Income from operations rose 38% to $7.4 million -- Operating margin improved 110 basis points to 9.6% -- Net income increased 47% to $4.6 million, or $0.28 per diluted share

Nine Months Ended September 30, 2009 Highlights (comparisons are to the nine months ended September 30, 2008)

-- Net revenue increased 25% to $228.4 million, with same-market area net revenue growth of 20% -- Patient encounters increased 19% to 2,429,000 -- Income from operations rose 41% to $22.0 million -- Operating margin improved 110 basis points to 9.6% -- Net income increased 49% to $13.3 million, or $0.81 per diluted share

Adam D. Singer, M.D., Chief Executive Officer of IPC The Hospitalist Company, stated, "Our strong third quarter year over year revenue growth of 23%, driven by a 20% increase in same-market revenue, clearly demonstrates the continued expansion potential within our existing markets. Strong revenue growth from our new market acquisitions in New Jersey and Southeast Florida also contributed to our overall top-line growth."

Dr. Singer added, "In line with our growth strategy, we have completed six acquisitions to date in 2009. We believe there is a significant opportunity for consolidation in this highly fragmented industry. Our acquisition pipeline remains robust and we continue to evaluate opportunities across the hospitalist sector. We remain confident that we will continue to penetrate current and new markets through this combination of organic growth and acquisitions."

Third Quarter 2009

Patient encounters for the three months ended September 30, 2009 increased 18.9% to 823,000, compared to 692,000 for the same period last year. Net revenue for the three months ended September 30, 2009 was $77.5 million, an increase of $14.3 million, or 22.7%, from $63.2 million for the three months ended September 30, 2008. Of this $14.3 million increase, $11.9 million, or 83.2%, was attributable to same-market area growth and $2.4 million was attributable to revenue generated from new market acquisitions. IPC completed one new market acquisition in the third quarter of 2008 and entered a second new market with two practice acquisitions, one each in the second and third quarters of 2009. The change in same-market area net revenue was largely the result of a 16.1% increase in patient encounters and a 3.2% increase in patient revenue per encounter.

Physician practice salaries, benefits and other expenses for the three months ended September 30, 2009 were $56.8 million, or 73.2% of net revenue, compared to $45.8 million, or 72.5% of net revenue, for the three months ended September 30, 2008. The increase in physician costs as a percentage of revenue is the result of more practices under development.

General and administrative expenses increased $1.4 million, or 12.5%, to $12.8 million, or 16.5% of net revenue, for the three months ended September 30, 2009, as compared to $11.4 million, or 18.0% of net revenue, for the three months ended September 30, 2008.

Income from operations increased $2.0 million, or 37.9%, to $7.4 million, as compared to $5.4 million for the same period in the prior year. The operating margin increased to 9.6% for the three months ended September 30, 2009, compared to 8.5% for the three months ended September 30, 2008.

The effective tax rate for the three months ended September 30, 2009 was 37.8%, compared to 42.0% for the three months ended September 30, 2008. The decrease in the effective tax rate reflects a new enterprise zone tax credit recorded for the first time in the fourth quarter of 2008 and benefit from utilization of net operating losses previously subject to a valuation allowance.

Net income increased to $4.6 million for the three months ended September 30, 2009, as compared to $3.2 million for the three months ended September 30, 2008, and the net income margin increased to 6.0% from 5.0% for the same period in the prior year. The net income margin increase to 6.0% is primarily the result of leveraging general and administrative expenses over a larger revenue base as IPC grows its practices and acquires new practices.

Nine Months Ended September 30, 2009

Patient encounters for the nine months ended September 30, 2009 increased 19.3% to 2,429,000, compared to 2,036,000 for the same period last year. Net revenue for the nine months ended September 30, 2009 was $228.4 million, an increase of $45.5 million, or 24.9%, from $182.9 million for the nine months ended September 30, 2008. Of this $45.5 million increase, $35.5 million, or 78.0%, was attributable to same-market area growth and $10.0 million was attributable to revenue generated from new market acquisitions. IPC completed one new market acquisition in the third quarter of 2008 and entered a second new market with two practice acquisitions, one each in the second and third quarters of 2009. The change in same-market area net revenue was primarily the result of a 14.0% increase in patient encounters and a 4.2% increase in patient revenue per encounter.

Physician practice salaries, benefits and other expenses for the nine months ended September 30, 2009 were $166.7 million, or 73.0% of net revenue, compared to $133.0 million, or 72.7% of net revenue, for the nine months ended September 30, 2008.

General and administrative expenses increased $5.2 million, or 15.9%, to $37.9 million, or 16.6% of net revenue, for the nine months ended September 30, 2009, as compared to $32.7 million, or 17.9% of net revenue, for the nine months ended September 30, 2008.

Income from operations increased $6.4 million, or 41.0%, to $22.0 million, as compared to $15.6 million for the same period in the prior year. The operating margin increased to 9.6% for the nine months ended September 30, 2009, compared to 8.5% for the nine months ended September 30, 2008.

The effective tax rate for the nine months ended September 30, 2009 was 39.2%, compared to 42.0% for the nine months ended September 30, 2008.

Net income increased to $13.3 million for the nine months ended September 30, 2009, as compared to $8.9 million for the nine months ended September 30, 2008, and the net income margin increased to 5.8% from 4.9% for the same period in the prior year.

Net cash provided by operating activities for the nine months ended September 30, 2009 increased to $24.2 million, compared to $17.6 million for the same period of 2008. Days sales outstanding (DSO) decreased to 55 DSO at the end of the period, compared to 60 DSO as of December 31, 2008. During the first nine months of 2009, $14.4 million was used for physician practice acquisitions and earn-out payments attributable to prior acquisitions, compared to $16.3 million in the same period of the prior year. In addition, in late June 2009, the Company paid off all remaining debt of $7.3 million under its Term Loan and equipment financing loans.

2009 Guidance Update

The Company is updating its guidance for the full year 2009 and expects revenue to be in the range of $308 million to $310 million and earnings per diluted share to be in the range of $1.09 to $1.14. The Company has provided this outlook based on the following assumptions: (i) weighted average shares outstanding of 16.5 million for the year; (ii) a 39.4% effective tax rate. Not included in the assumptions are (i) practice acquisitions completed after today's date; (ii) gains or losses related to changes in estimates of earn-outs related to practice acquisitions that close subsequent to December 31, 2008.

Conference Call Information

IPC The Hospitalist Company will host an investor conference call to review the quarterly results at 5:00 p.m. ET (2:00 p.m. PT) today. To participate in the conference call, please dial 888-668-1648 (USA) or 913-312-1510 (International). In addition, a dial-up replay of the conference call will be available beginning November 2, 2009 at 8:00 p.m. ET (5:00 p.m. PT) and ending on November 16, 2009. The replay telephone number is 888-203-1112 (USA) or 719-457-0820 (International) Replay Passcode: 9515054. A live webcast of the call will also be available from the Investor Relations section on the corporate website at http://www.hospitalist.com/. A webcast replay can be accessed on the corporate website beginning November 2, 2009 at approximately 8:00 p.m. ET (5:00 p.m. PT) and will remain available until November 16, 2009 at 11:59 p.m.

About IPC The Hospitalist Company

IPC The Hospitalist Company, Inc. is a leading national hospitalist physician group practice focused on the delivery of hospitalist medicine services. IPC's physicians and affiliated providers manage the care of hospitalized patients in coordination with primary care physicians and specialists. The Company provides its hospitalists with the comprehensive training, information technology, and management support systems necessary to improve the quality and reduce the cost of inpatient care in the facilities it serves. For more information, visit the IPC website at http://www.hospitalist.com/.

Safe Harbor Statement

Certain statements and information in this press release may be deemed to be "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release may include, but are not limited to, those statements set forth under the section titled "Guidance" regarding projected operating results, revenues, earnings, and IPC's growth opportunities and strategy. Forward-looking statements are often characterized by terminology such as "believe", "hope", "may", "anticipate", "should", "intend", "plan", "will", "expect", "estimate", "project", "positioned", "strategy" and similar expressions. Any forward-looking statements are necessarily based on a variety of estimates and assumptions which, though considered reasonable by the Company, may not be realized and are inherently subject to significant business, economic, competitive, industry, regulatory, market and financial uncertainties and contingencies, many of which are and will be beyond IPC's control. Important risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by any forward-looking statements are described in IPC's most recent Annual Report on Form 10-K, including the section titled "Risk Factors" and actual results could differ materially from those anticipated in forward-looking statements.

In particular the following risks and uncertainties may have such an impact:

-- failure to comply with complex and intensive government regulation of our industry; -- the adequacy of IPC's insurance coverage and insurance reserves; -- IPC's ability to recruit and retain qualified physicians; -- IPC's ability to successfully complete and integrate new acquisitions; -- the effect of changes in rates or methods of third-party reimbursement; and -- the high level of competition in IPC's industry.

IPC undertakes no obligation following the date of this press release to update or revise any such statements or projections whether as a result of new information, future events, or otherwise.

Contacts: Amy Glynn/Nick Laudico Devra Shapiro The Ruth Group IPC The Hospitalist Company, Inc. (646) 536-7023/7030 (818) 766-3502 aglynn@theruthgroup.com nlaudico@theruthgroup.com IPC The Hospitalist Company, Inc. Consolidated Balance Sheets (dollars in thousands, except for share data) September 30, December 31, 2009 2008 ---- ---- (unaudited) Assets Current assets: Cash and cash equivalents $37,829 $37,394 Accounts receivable, net 46,297 44,474 Prepaid expenses and other current assets 3,858 8,081 ----- ----- Total current assets 87,984 89,949 Furniture and equipment, net 2,780 2,452 Goodwill 83,471 63,893 Other intangible assets, net 2,526 2,905 Deferred tax assets, net 3,492 3,492 ----- ----- Total assets $180,253 $162,691 ======== ======== Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued liabilities $4,991 $4,664 Accrued compensation 16,161 11,232 Payables for practice acquisitions 7,926 2,476 Medical malpractice and self-insurance reserves, current portion 372 539 Deferred tax liabilities 481 481 Short-term debt and current portion of capital leases - 3,471 --- ----- Total current liabilities 29,931 22,863 Long-term debt and capital leases, less current portion - 5,368 Medical malpractice and self- insurance reserves, less current portion 11,510 11,220 Other long-term liabilities 255 293 --- --- Total liabilities 41,696 39,744 Stockholders' equity: Preferred stock, $0.001 par value, 15,000,000 shares authorized, none issued - - Common stock, $0.001 par value, 50,000,000 shares authorized, 16,135,924 and 16,068,835 shares issued and outstanding at September 30, 2009 and December 31, 2008, respectively 16 16 Additional paid-in capital 124,373 122,024 Retained earnings 14,168 907 ------ --- Total stockholders' equity 138,557 122,947 -------- -------- Total liabilities and stockholders' equity $180,253 $162,691 ======== ======== IPC The Hospitalist Company, Inc. Condensed Consolidated Statements of Income (dollars in thousands, except for per share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net revenue $77,521 $63,164 $228,361 $182,877 Operating expenses: Cost of services-physician practice salaries, benefits and other 56,768 45,816 166,716 132,996 General and administrative 12,784 11,368 37,927 32,727 Depreciation and amortization 536 591 1,699 1,535 --- --- ----- ----- Total operating expenses 70,088 57,775 206,342 167,258 ------ ------ ------- ------ Income from operations 7,433 5,389 22,019 15,619 Investment income 13 186 78 493 Interest expense (23) (144) (271) (724) --- ---- ---- ---- Income before income taxes 7,423 5,431 21,826 15,388 Income tax provision 2,804 2,281 8,565 6,462 ----- ----- ----- ----- Net income 4,619 3,150 13,261 8,926 Income allocable to preferred stockholders - - - (696) --- --- --- ---- Net income attributable to common stockholders $4,619 $3,150 $13,261 $8,230 ====== ====== ======= ====== Per share data: Net income per share attributable to common stockholders-historical: Basic $0.29 $0.20 $0.82 $0.59 ===== ===== ===== ===== Diluted $0.28 $0.20 $0.81 $0.58 ===== ===== ===== ===== Weighted average shares: Basic 16,122,506 15,784,261 16,104,732 14,037,183 ========== ========== ========== ========== Diluted 16,455,740 15,987,343 16,308,935 14,308,025 ========== ========== ========== ========== Net income per share attributable to common stockholders-pro forma: Basic N/A N/A N/A $0.60 === === === ===== Diluted N/A N/A N/A $0.59 === === === ===== Weighted average shares: Basic N/A N/A N/A 14,881,071 === === === ========== Diluted N/A N/A N/A 15,098,553 === === === ========== IPC The Hospitalist Company, Inc. Consolidated Statements of Cash Flows (dollars in thousands) (unaudited) Nine Months Ended September 30, -------------------- 2009 2008 -------- -------- Operating activities Net income $13,261 $8,926 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,699 1,535 Stock-based compensation expense 1,470 641 Tax liability reduction for uncertain tax positions (38) - Changes in assets and liabilities: Accounts receivable (1,823) (1,835) Prepaid expenses and other current assets 4,223 6,355 Accounts payable 327 (81) Accrued compensation 4,929 (120) Medical malpractice and self-insurance reserves 123 2,169 --- ----- Net cash provided by operating activities 24,171 17,590 ------ ------ Investing activities Acquisitions of physician practices (14,407) (16,252) Purchase of furniture and equipment (1,369) (1,545) ------ ------ Net cash used in investing activities (15,776) (17,797) ------- ------- Financing activities Repayments of long-term debt and capital leases, net (8,839) (17,014) Net proceeds from issuance of common stock 599 65,022 Excess tax benefits from stock-based compensation 280 315 --- --- Net cash (used in) provided by financing activities (7,960) 48,323 ------ ------ Net increase in cash and cash equivalents 435 48,116 Cash and cash equivalents, beginning of period 37,394 6,976 ------ ----- Cash and cash equivalents, end of period $37,829 $55,092 ======= ======= IPC The Hospitalist Company, Inc. Operating Data Patient Encounter Data (unaudited): The following is a summary of the quarterly patient encounters for the seven consecutive quarters ended September 30, 2009: For Quarter Ended Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 2008 2008 2008 2008 2009 2009 2009 ---- ---- ---- ---- ---- ---- ---- Patient encounters 684,000 660,000 692,000 754,000 810,000 796,000 823,000 ======= ======= ======= ======= ======= ======= =======

IPC The Hospitalist Company, Inc.

CONTACT: Devra Shapiro, IPC The Hospitalist Company, Inc.,
+1-818-766-3502; or Amy Glynn, +1-646-536-7023, aglynn@theruthgroup.com, or
Nick Laudico, +1-646-536-7030, nlaudico@theruthgroup.com, both of The Ruth
Group

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

Netlist Reports Third Quarter, Nine-Month ResultsStrong Sequential Revenue Growth

IRVINE, Calif., Nov. 2 /PRNewswire-FirstCall/ -- Netlist, Inc. today reported financial results for the third quarter and nine months ended October 3, 2009. Revenues for the third quarter and nine months ended October 3, 2009, were $6.4 million and $11.8 million, respectively, compared to $28.9 million and $60.4 million for the third quarter and nine months ended September 27, 2008. Revenue for the 2009 third quarter doubled from the $3.2 million in this year's second quarter.

The year-over-year decline in revenues was driven by a reduction in demand from the Company's customer base mainly due to the commoditization of certain product offerings. In response to the current lower base of revenue, costs have been aggressively managed downward to better match those levels of revenue. The Company continues to invest heavily in R&D as it executes on the planned technology transition to its next-generation memory subsystems.

"We are very pleased by the progress of our next-generation product development," Chief Executive Officer Chun K. Hong said. "We remain on track to launch the first of our new products before the end of the year. The improving market for high-performance computing, firming prices for memory and the early interest from OEMs in our chip-based technologies have given us reason for optimism as we look into 2010 and beyond."

Gross profit for the third quarter ended October 3, 2009, was $1.6 million, or a gross margin of 24.3 percent, compared to $2.0 million, or a gross margin of 7.1 percent for the third quarter ended September 27, 2008. This is an improvement from the second quarter gross profit of $244,000, or a gross margin of 7.7 percent. Gross profit for the nine months ended October 3, 2009, was $1.3 million, or a gross margin of 10.8 percent, compared to gross profit of $7.8 million, or a gross margin of 13.0 percent in the year-earlier period.

Net loss for the 2009 third quarter was $2.1 million, or $0.11 loss per share, compared to a net loss in the prior year period of $7.4 million, or $0.37 loss per share. Net loss for the 2009 first nine months was $9.9 million, or $0.50 loss per share, compared to a net loss of $10.3 million, or a $0.52 loss per share. These results include stock-based compensation expense in the third quarter and nine months ended October 3, 2009 of $631,000 and $1.2 million, respectively, compared with $362,000 and $981,000 in the prior year periods.

During the third quarter, the Company remained focused on preserving cash. As of October 3, 2009, cash, cash equivalents, and investments in marketable securities were $16.4 million, total assets were $27.1 million, working capital was $14.5 million, total long-term debt was $192,000, and stockholders' equity was $21.6 million.

Conference Call Information

As previously announced, Netlist is conducting a conference call today to be broadcast live over the Internet at 5:00 pm Eastern Time to discuss and review the financial results for the third quarter and nine months ended October 3, 2009. The dial-in number for the call is 1-877-941-8602. The live webcast and archived replay of the call can be accessed in the Investors section of Netlist's website at http://www.netlist.com/.

About Netlist, Inc.

Netlist designs and manufactures high-performance memory subsystems for the server and high-performance computing and communications markets. The Company's memory subsystems are developed for applications in which high-speed, high-capacity memory, functionality, small form factor, and heat dissipation are key requirements. These applications include tower-servers, rack-mounted servers, blade servers, high-performance computing clusters, engineering workstations, and telecommunication equipment. Netlist maintains its headquarters in Irvine, California with manufacturing facilities in Suzhou, China.

Safe Harbor Statement

This news release contains forward-looking statements regarding future events and the future performance of Netlist, including future opportunities and growth for the company's business. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expected or projected. These risks and uncertainties include, but are not limited to, the rapidly-changing nature of technology; volatility in the pricing of DRAM ICs and NAND; changes in and uncertainty of customer demand, including delays in product qualifications; delays in the Company's and its customers' product releases and development; introductions of new products by competitors; changes in end-user demand for technology solutions; the Company's ability to attract and retain skilled personnel; the Company's reliance on suppliers of critical components; fluctuations in the market price of evolving industry standards; and the political and regulatory environment in the People's Republic of China. Other risks and uncertainties are described in the Company's annual report on Form 10-K, dated March 30, 2009, and subsequent filings with the U.S. Securities and Exchange Commission made by the Company from time to time. Netlist undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

TABLES FOLLOW Netlist, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended Nine Months Ended ------------------- ------------------ October September October September 3, 27, 3, 27, 2009 2008 2009 2008 -------- --------- ------- --------- Net sales $6,446 $28,876 $11,781 $60,409 Cost of sales(1) 4,879 26,832 10,507 52,575 ----- ------ ------ ------ Gross profit 1,567 2,044 1,274 7,834 ----- ----- ----- ----- Operating expenses: Research and development(1) 1,975 1,651 5,619 4,943 Selling, general and administrative(1) 2,115 3,364 6,170 10,142 ----- ----- ----- ------ Total operating expenses 4,090 5,015 11,789 15,085 ----- ----- ------ ------ Operating loss (2,523) (2,971) (10,515) (7,251) ------ ------ ------- ------ Other income: Interest (expense) income, net (25) 38 75 381 Other income (expense), net 4 13 134 (55) - -- --- --- Total other income (expense), net (21) 51 209 326 --- -- --- --- Loss before provision (benefit) for income taxes (2,544) (2,920) (10,306) (6,925) Provision (benefit) for income taxes (458) 4,502 (409) 3,332 ---- ----- ---- ----- Net loss $(2,086) $(7,422) $(9,897) $(10,257) ======= ======= ======= ======== Net loss per common share: Basic and diluted $(0.11) $(0.37) $(0.50) $(0.52) Weighted-average common shares outstanding: Basic and diluted 19,855 19,855 19,855 19,845 (1) Amounts include stock-based compensation expense as follows: Cost of sales $146 $44 $213 $106 Research and development 156 55 262 140 Selling, general and administrative 329 263 753 735 Netlist, Inc. Unaudited Condensed Consolidated Balance Sheets (in thousands) October 3, January 3, 2009 2009 ASSETS Current assets: Cash and cash equivalents $11,501 $15,214 Investments in marketable securities 3,115 5,199 Accounts receivable, net 2,732 1,917 Inventories 1,886 1,829 Income taxes receivable - 1,880 Prepaid expenses and other current assets 636 761 --- --- Total current assets 19,870 26,800 Property and equipment, net 5,202 6,939 Long-term investments in marketable securities 1,742 960 Other assets 252 234 --- --- Total assets $27,066 $34,933 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $1,969 $1,786 Current portion of long-term debt 115 474 Current portion of deferred gain on sale and leaseback transaction 118 118 Income taxes payable 78 - Accrued expenses and other current liabilities 3,093 2,083 ----- ----- Total current liabilities 5,373 4,461 Long-term debt, net of current portion 77 130 Deferred gain on sale and leaseback transaction, net of current portion 19 108 -- --- Total liabilities 5,469 4,699 Commitments and contingencies Stockholders' equity: Common stock, $0.001 par value - 90,000 shares authorized; 19,855 shares issued and outstanding 20 20 Additional paid-in capital 70,611 69,383 Accumulated deficit (49,010) (39,113) Accumulated other comprehensive loss (24) (56) --- --- Total stockholders' equity 21,597 30,234 ------ ------ Total liabilities and stockholders' equity $27,066 $34,933 ======= ======= Contact: Allen & Caron Inc Gail Itow Jill Bertotti (investors) Chief Financial Officer jill@allencaron.com Netlist, Inc. Len Hall (media) (949) 435-0025 len@allencaron.com (949) 474-4300

Netlist, Inc.

CONTACT: Investors, Jill Bertotti, jill@allencaron.com, or Media, Len
Hall, len@allencaron.com, both of Allen & Caron Inc, +1-949-474-4300, for
Netlist, Inc.; or Gail Itow, Chief Financial Officer of Netlist, Inc.,
+1-949-435-0025

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

Impac Mortgage Holdings, Inc. Announces Major Strategic Accomplishment

IRVINE, Calif., Nov. 2 /PRNewswire-FirstCall/ -- Impac Mortgage Holdings, Inc. (Pink Sheets: IMPM), a Maryland corporation, or the "Company," is pleased to announce a major accomplishment regarding its strategic initiative to restructure its balance sheet.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070305/LAM033LOGO)

The Company has executed a settlement agreement with its last warehouse lender. As part of the settlement agreement, the Company settled the warehouse borrowing by transferring the loans to the lender, making a cash payment and entering into a term loan to pay off the balance. This settlement retires the current facility and removes any further exposure associated with the warehouse borrowing or the loans that secured the borrowing.

Since 2007, the Company has focused on strategic initiatives to restructure its balance sheet by settling or restructuring its debt obligations. The Company has accomplished the following:

-- During the first and second quarters of 2009, the Company was successful in settling a large portion of the trust preferred obligations at a significant discount and restructuring more than half of the original balance to a 2% interest rate for the next five years, reducing the annual interest obligation from approximately $8 million to $2 million. -- In the second quarter of 2009, the Company successfully completed a tender offer for its preferred stock allowing it to purchase back and retire over 2/3 of its preferred stock as well as amend the terms of the remaining preferred stock to eliminate any continuing obligation to pay approximately $15 million in annual dividends. -- The successful tender offer coupled with our trust preferred settlements, will save the Company in excess of $20 million a year in dividend and interest obligations. -- Through this settlement with our last warehouse lender, the Company has completed its last restructuring initiative, which began in 2007 and resolves the final outstanding issue regarding its previous warehouse lenders. The settlement agreement eliminates any further shortfall risk on the loans that secured this facility.

Mr. Joseph R. Tomkinson, Chairman and Chief Executive Officer of Impac Mortgage Holdings, Inc. commented that, "This milestone for the Company allows us to execute on our new strategic business plan without the overhang of these legacy loans and the warehouse facility."

About the Company

The Company's operations include the management of the long-term mortgage portfolio to mitigate losses and maximize cash flows and the mortgage and real estate related fee-based businesses, including loan modifications, real estate disposition, monitoring and surveillance services and real estate brokerage and lending services.

For additional information, questions or comments, please call Justin Moisio in Investor Relations at (949) 475-3988 or email jmoisio@impaccompanies.com. Web site: http://www.impaccompanies.com/

Photo: http://www.newscom.com/cgi-bin/prnh/20070305/LAM033LOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Impac Mortgage Holdings, Inc.

CONTACT: Justin Moisio, Investor Relations of Impac Mortgage Holdings,
Inc., +1-949-475-3988, jmoisio@impaccompanies.com

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

Union Drilling Reports 2009 Third Quarter Results

FORT WORTH, Texas, Nov. 2 /PRNewswire-FirstCall/ -- Union Drilling, Inc. announced today financial and operating results for the three and nine months ended September 30, 2009.

Revenues for the third quarter of 2009 were $35.2 million compared to $82.4 million in the third quarter of 2008. Union Drilling reported a net loss of $4.0 million for the quarter, or $0.17 per share, compared to net income of $5.9 million, or $0.27 per diluted share, during the third quarter of 2008.

EBITDA for the third quarter of 2009 totaled $6.8 million compared to $22.6 million reported in the same period last year. For additional information regarding EBITDA as a non-GAAP financial measure, please refer to the disclosures contained at the end of this release.

Christopher D. Strong, Union Drilling's President and Chief Executive Officer, commented, "Union Drilling continues to operate as efficiently as possible given the challenging industry environment. We have aggressively cut costs, enabling the Company to generate positive cash flow and pay down debt. As a result, I'm pleased to report that our debt-to-capital ratio was below 5% as of September 30th. Operationally, utilization appears to have bottomed in July, and we expect it to continue to rise in the fourth quarter. However, the current pricing environment means that an increase in utilization is unlikely to produce any near-term increase in earnings."

Operating Statistics

Union Drilling's average marketed rig utilization for the third quarter was 30.6%, down from 73.8% in the same period last year. Revenue days totaled 2,000 compared to 4,823 for the third quarter of 2008. Average revenue per revenue day was $17,592 for the third quarter of 2009, compared to $17,093 last year. The increase for 2009 reflects $428 per day related to 2 rigs that are on stand-by as well as decreased utilization in our smaller rigs which earn a smaller dayrate. Operating expenses for the quarter totaled $22.3 million, or $11,167 per revenue day, compared to $52.5 million, or $10,879 per day, in the same period in 2008. Drilling margins totaled $12.9 million, or 37% of revenues, for the third quarter of 2009 versus $30.0 million, or 36% of revenues, in the third quarter of 2008. Average drilling margin per revenue day during the third quarter was $6,425 in 2009 versus $6,214 in the prior year period. For additional information regarding drilling margin as a non-GAAP financial measure, please refer to the disclosures contained at the end of this release.

2009 Year-To-Date Results

For the nine months ended September 30, 2009, Union Drilling reported a net loss of $9.1 million, or $0.43 per share, on revenues of $128.4 million, compared to net income of $11.5 million, or $0.52 per diluted share, on revenues of $221.9 million for the same period in 2008. The net loss for the first nine months of 2009 includes $2.9 million, or $0.14 per diluted share, of non-cash charges for asset impairments. Year-to-date 2009 EBITDA was $26.1 million, excluding the non-cash impairment charge, compared to $54.1 million in 2008.

Drilling margin for the first nine months of 2009 totaled $45.7 million, or 36% of revenues, compared to $77.1 million, or 35% of revenues for the same period last year. The Company totaled 7,282 revenue days on 37.6% utilization year to date in 2009 versus 13,004 revenue days on 66.8% utilization last year. Revenue and drilling margin averaged $17,626 and $6,275 respectively per revenue day in 2009 compared to $17,064 and $5,926 during the same period in 2008.

Conference Call

Union Drilling's management team will be holding a conference call on Tuesday, November 3, 2009, at 10:30 a.m. Eastern time. To participate in the call, dial (480) 629-9773 ten minutes before the conference call begins and ask for the Union Drilling conference call. To listen to the live call on the Internet, please visit Union Drilling's website fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live call, a telephonic replay will be available through November 10, 2009 and may be accessed by calling (303) 590-3030 and using the pass code 4175170. Also, an archive of the webcast will be available after the call for a period of 60 days on the "Investor Relations" section of the Company's website at http://www.uniondrilling.com/.

About Union Drilling

Union Drilling, Inc., headquartered in Fort Worth, Texas, provides contract land drilling services and equipment, primarily to natural gas producers, in the United States. Union Drilling currently owns and markets 71 rigs and specializes in unconventional drilling techniques.

This press release contains various forward-looking statements and information that are based on management's belief as well as assumptions made by and information currently available to management. Forward-looking information includes statements regarding the Company's anticipated growth, demand from the Company's customers, capital spending by oil and gas companies and the Company's expectations regarding its new rigs and the U.S. land drilling sector. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, among other matters: general and regional economic conditions and industry trends; the continued strength or weakness of the contract land drilling industry in the geographic areas where the Company operates; decisions about onshore exploration and development projects to be made by oil and gas companies; the highly competitive nature of the contract land drilling business; the Company's future financial performance, including availability, terms and deployment of capital; the continued availability of qualified personnel; and changes in governmental regulations, including those relating to workplace safety and the environment. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. These risks, as well as others, are discussed in greater detail in the Company's public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K.

Union Drilling, Inc. Statements of Operations (in thousands, except share and per share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenues Total revenues $35,184 $82,439 $128,353 $221,906 Cost and expenses Operating expenses 22,334 52,471 82,657 144,840 Depreciation and amortization 12,191 11,590 35,643 33,254 Impairment charge - - 2,929 - General and administrative 5,825 8,593 19,606 23,347 ----- ----- ------ ------ Total cost and expenses 40,350 72,654 140,835 201,441 ------ ------ ------- ------- Operating (loss) income (5,166) 9,785 (12,482) 20,465 Interest expense (189) (172) (558) (672) (Loss) gain on disposal of assets (209) 1,169 (98) 255 Other income 32 62 98 151 ------ ------ ------- ------ (Loss) income before income taxes (5,532) 10,844 (13,040) 20,199 Income tax (benefit) expense (1,560) 4,897 (3,897) 8,734 ------- ----- ------- ----- Net (loss) income $(3,972) $5,947 $(9,143) $11,465 ======== ====== ======== ======= (Loss) earnings per common share: Basic $(0.17) $0.27 $(0.43) $0.52 ======= ===== ======= ===== Diluted $(0.17) $0.27 $(0.43) $0.52 ======= ===== ======= ===== Weighted-average common shares outstanding: Basic 23,123,103 22,022,664 21,349,931 22,001,947 ========== ========== ========== ========== Diluted 23,123,103 22,120,262 21,349,931 22,143,461 ========== ========== ========== ========== Union Drilling, Inc. Operating Statistics (in thousands, except day and per day data) Three Months Nine Months Ended Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenues $35,184 $82,439 $128,353 $221,906 Operating expenses $22,334 $52,471 $82,657 $144,840 Drilling margins $12,850 $29,968 $45,696 $77,066 Revenue days 2,000 4,823 7,282 13,004 Marketed rig utilization 30.6% 73.8% 37.6% 66.8% Revenue per revenue day $17,592 $17,093 $17,626 $17,064 Operating expenses per revenue day $11,167 $10,879 $11,351 $11,138 Drilling margin per revenue day $6,425 $6,214 $6,275 $5,926 Union Drilling, Inc. Balance Sheets (in thousands, except share and per share data) September 30, December 31, 2009 2008 ---- ---- (unaudited) Assets: Current assets: Cash and cash equivalents $15 $406 Accounts receivable (net of allowance for doubtful accounts of $1,381 and $1,495 at September 30, 2009 and December 31, 2008, respectively) 18,105 44,712 Inventories 2,108 1,536 Income tax recoverable 4,234 7,607 Prepaid expenses, deposits and other receivables 1,738 4,010 Deferred taxes 126 406 ------ ------ Total current assets 26,326 58,677 Intangible assets (net of accumulated amortization of $543 and $412 at September 30, 2009 and December 31, 2008, respectively) 1,657 1,788 Property, buildings and equipment (net of accumulated depreciation of $181,755 and $145,315 at September 30, 2009 and December 31, 2008, respectively) 260,584 275,757 Other assets 253 383 -------- -------- Total assets $288,820 $336,605 ======== ======== Liabilities and Stockholders' Equity: Current liabilities: Accounts payable $5,639 $25,361 Current portion of notes payable for equipment 548 3,126 Current portion of customer advances - 484 Accrued expense and other liabilities 5,914 9,127 ------ ------ Total current liabilities 12,101 38,098 Revolving credit facility 9,967 42,645 Long-term notes payable for equipment 168 1,974 Deferred taxes 47,872 48,633 Customer advances and other long-term liabilities 133 542 ------ ------- Total liabilities 70,241 131,892 Stockholders' equity: Common stock, par value $.01 per share; 75,000,000 shares authorized; 25,123,103 shares and 22,024,381 shares issued at September 30, 2009 and December 31, 2008, respectively 251 220 Additional paid in capital 168,654 141,113 Retained earnings 60,137 69,280 Treasury stock; 2,000,000 shares and 1,714,818 shares at September 30, 2009 and December 31, 2008, respectively (10,463) (8,900) ------- ------- Total stockholders' equity 218,579 201,713 ------- ------- Total liabilities and stockholders' equity $288,820 $333,605 ======== ========

EBITDA is earnings before net interest, income taxes, depreciation and amortization and non-cash impairment. The Company believes EBITDA is a useful measure of evaluating its financial performance because it is used by external users, such as investors, commercial banks, research analysts and others, to assess: (1) the financial performance of Union Drilling's assets without regard to financing methods, capital structure or historical cost basis, (2) the ability of Union Drilling's assets to generate cash sufficient to pay interest costs and support its indebtedness, and (3) Union Drilling's operating performance and return on capital as compared to those of other entities in our industry, without regard to financing or capital structure. EBITDA is not a measure of financial performance under generally accepted accounting principles. However, EBITDA is a common alternative measure of operating performance used by investors, financial analysts and rating agencies. A reconciliation of EBITDA to net earnings is included below. EBITDA as presented may not be comparable to other similarly titled measures reported by other companies.

Union Drilling, Inc. (in thousands) Three Months Nine Months Ended Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Calculation of EBITDA: Net (loss) income $(3,972) $5,947 $(9,143) $11,465 Impairment charge - - 2,929 - --- --- ----- --- Net (loss) income excluding impairment charge (3,972) 5,947 (6,214) 11,465 Interest expense 189 172 558 672 Income tax (benefit) expense (1,560) 4,897 (3,897) 8,734 Depreciation and amortization 12,191 11,590 35,643 33,254 ------ ------- ------- ------- EBITDA $6,848 $22,606 $26,090 $54,125 ------ ------- ------- -------

Drilling margin represents contract drilling revenues less contract drilling costs. Union Drilling believes that drilling margin is a useful measure for evaluating its financial performance, although it is not a measure of financial performance under generally accepted accounting principles. However, drilling margin is a common measure of operating performance used by investors, financial analysts, rating agencies and Union Drilling's management. A reconciliation of drilling margin to operating income is included below. Drilling margin as presented may not be comparable to other similarly titled measures reported by other companies.

Union Drilling, Inc. (in thousands, except day and per day data) Three Months Nine Months Ended Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Calculation of drilling margin: Operating (loss) income $(5,166) $9,785 $(12,482) $20,465 Depreciation and amortization 12,191 11,590 35,643 33,254 Impairment charge - - 2,929 - General and administrative 5,825 8,593 19,606 23,347 ------- ------- ------- ------- Drilling margin $12,850 $29,968 $45,696 $77,066 Revenue days 2,000 4,823 7,282 13,004 Drilling margin per revenue day $6,425 $6,214 $6,275 $5,926 Contacts: Union Drilling, Inc. Christopher D. Strong, CEO 817-735-8793 DRG&E Ken Dennard / Ben Burnham 713-529-6600 UDRL-E

Union Drilling, Inc.

CONTACT: Christopher D. Strong, CEO of Union Drilling, Inc.,
+1-817-735-8793; or Ken Dennard, or Ben Burnham, both of DRG&E,
+1-713-529-6600, for Union Drilling, Inc.

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

ProAssurance Reports Third Quarter 2009 Results

BIRMINGHAM, Ala., Nov. 2 /PRNewswire-FirstCall/ -- ProAssurance reports Operating Income of $52.2 million, or $1.58 per diluted share for the third quarter of 2009. Net Income in the quarter was $55.2 million, or $1.67 per diluted share. For the nine months ended September 30, 2009, Operating Income was $135.8 million, or $4.08 per diluted share, and Net Income was $137.4 million, or $4.13 per diluted share.

(Logo: http://www.newscom.com/cgi-bin/prnh/20081024/PROASSURANCELOGO )

Gross Premiums Written increased 34% compared to the year-ago quarter, to $168.6 million, primarily due to recent acquisitions. Book Value per share is $50.50, an 18% increase since year-end.

Unaudited Consolidated Financial Summary (in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Gross Premiums Written $168,559 $126,122 $434,714 $374,393 ======== ======== ======== ======== Net Premiums Written $158,705 $116,409 $401,634 $343,609 ======== ======== ======== ======== Net Premiums Earned $131,956 $113,449 $363,591 $349,794 ======== ======== ======== ======== Net Investment Income $38,573 $39,845 $112,839 $122,218 ======= ======= ======== ======== Equity in Earnings (Loss) of Unconsolidated Subsidiaries $1,637 $(1,967) $328 $(3,916) ====== ======= ==== ======= Net Realized Investment Gains (Losses) $7,275 $(34,236) $4,822 $(41,011) ====== ======== ====== ======== Total Revenues $182,594 $118,088 $488,804 $430,779 ======== ======== ======== ======== Guaranty Fund Assessments (Recoupments) $(152) $(356) $(630) $(995) ===== ===== ===== ===== Interest Expense $808 $1,141 $2,638 $5,855 ==== ====== ====== ====== Loss on Extinguishment of Debt $2,839 $- $2,839 $- ====== == ====== == Total Expenses $103,118 $90,891 $295,081 $294,358 ======== ======= ======== ======== Tax Expense $24,275 $4,950 $56,274 $34,988 ======= ====== ======= ======= Net Income $55,201 $22,247 $137,449 $101,433 ======= ======= ======== ======== Operating Income $52,219 $44,269 $135,751 $127,443 ======= ======= ======== ======== Net Cash Provided by Operating Activities $3,867 $43,432 $15,941 $144,887 ====== ======= ======= ======== Earnings per Share Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Weighted average number of common shares outstanding Basic 32,701 33,496 32,988 32,519 Diluted 33,023 33,866 33,267 34,561 Operating Income per share (Basic) $1.60 $1.32 $4.12 $3.92 ===== ===== ===== ===== Operating Income per share (Diluted) $1.58 $1.31 $4.08 $3.73 ===== ===== ===== ===== Net Income per share (Basic) $1.69 $0.66 $4.17 $3.12 ===== ===== ===== ===== Net Income per share (Diluted) $1.67 $0.66 $4.13 $2.98 ===== ===== ===== ===== Key Ratios Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Current Accident Year Loss Ratio 84.9% 83.9% 83.5% 84.0% Prior Accident Year Loss Ratio (32.2%) (26.4%) (26.9%) (23.2%) ------ ------ ------ ------ Net Loss Ratio 52.7% 57.5% 56.6% 60.8% Expense Ratio 21.9% 21.5% 22.5% 21.6% ----- ----- ----- ----- Combined Ratio 74.6% 79.0% 79.1% 82.4% ===== ===== ===== ===== Operating Ratio 45.4% 43.9% 48.1% 47.5% ===== ===== ===== ===== Return on Equity 13.9% 6.9% 11.9% 10.5% ===== ==== ===== =====

ProAssurance's Chief Executive Officer, W. Stancil Starnes, said, "In our historical professional liability book we are adding new insureds who value our commitment to Treated Fairly and the financial security that we offer. At the same time, we are bringing in substantial new premium writings from The PICA Group and our other recent acquisitions, which validates the effectiveness of our strategy of profitable growth through carefully thought out M&A. We believe this level of success clearly demonstrates the power of our disciplined operating philosophy."

Non-GAAP Financial Measures

Operating Income is a "Non-GAAP" financial measure that is widely used in our industry to evaluate the performance of underwriting operations. Operating Income excludes the after-tax effects of realized gains or losses, guaranty fund assessments and debt retirement loss, and we believe it presents a more appropriate view of the performance of our insurance operations. While we believe disclosure of certain Non-GAAP information is appropriate, you should not consider this information without also considering the information we present in accordance with GAAP, which includes the effect of net realized gains and losses incurred during the quarter and nine month period ended September 30, 2009. The following table is a reconciliation of Net Income to Operating Income.

Reconciliation of Net Income to Operating Income (in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net Income $55,201 $22,247 $137,449 $101,433 Adjustments, net of tax effects: Add: Net Realized Investment Losses $- $22,253 $- $26,657 Debt Retirement Loss $1,845 $- $1,845 $- Subtract: Net Realized Investment Gains $4,728 $- $3,133 $- Guaranty Fund Recoupments 99 231 410 647 -- --- --- --- Operating Income $52,219 $44,269 $135,751 $127,443 ======= ======= ======== ======== Per diluted common share: Net Income $1.67 $0.66 $4.13 $2.98 Effect of adjustments $(0.09) $0.65 $(0.05) $0.75 ------ ----- ------ ----- Operating Income per diluted common share $1.58 $1.31 $4.08 $3.73 ===== ===== ===== ===== Business Commentary -- The PICA Group, which writes approximately 50% of its business in the third quarter, accounted for $43.1 million of new business for ProAssurance in the quarter ($56.9 million for the year). -- Retention, which is calculated on renewing physician policies, remained at 89% for the quarter and year-to-date in our historical medical liability book. PICA's retention was also steady at 95% for the quarter and year-to-date. -- Premium rates on policies renewing in our historical medical liability book declined three percent in the quarter, and four percent year-to-date as a result of improvements in overall loss trends over the past few years. This compares to a seven percent decline last year. Premium rates on renewing business at PICA held steady for the quarter and year-to-date. -- Favorable net loss reserve development was $42.5 million in the third quarter. Year-to-date, our favorable net loss reserve development has been $98.0 million. This favorable development is principally the result of a reduction in expected loss costs, primarily from accident years 2004 through 2007. There was no reserve development at PICA. Investment Commentary -- The improvement in our income from investments in unconsolidated subsidiaries was principally due to improved market conditions and helped offset a three percent decline in net investment income in the quarter. Net Investment income was down primarily due to lower interest rates on both short term and fixed income securities. The PICA Group added $1.9 million to our investment result in the quarter ($4.0 million for the year). -- Gains in our trading portfolio and net proceeds from the sale of securities resulted in $7.3 million in net realized investment gains in the quarter. This compares to net realized investment losses of $34.2 million in the same period a year ago. -- We have updated the online disclosure of our investment portfolio to provide details of our holdings at September 30, 2009. The disclosure is available under Supplemental Investor Information in the Investor Relations section of our website, http://www.proassurance.com/. Balance Sheet Highlights September 30, December 31, 2009 2008 ---------- ---------- Shareholders' Equity $1,649,460 $1,423,585 Total Investments $3,863,396 $3,575,942 Total Assets $4,669,440 $4,280,938 Policy Liabilities $2,853,794 $2,693,101 Accumulated Other Comprehensive Income (Loss) $76,394 $(35,898) Goodwill $118,997 $72,213 Book Value per Share $50.50 $42.69 Capital Management -- In the third quarter we purchased approximately 41,000 shares of our common stock on the open market at a cost of $2.1 million. That brought the total share repurchase through the first nine months of the year to approximately 881,000 shares, purchased at a cost of $38.1 million. Since the end of the third quarter we have purchased approximately 250,000 shares at a cost of $12.9 million. This leaves $116.3 million left in our outstanding authorization, which includes the additional $100 million authorized for repurchase by our Board in September, 2009. -- In September we redeemed $7.0 million of Surplus Notes we acquired in our transaction with PICA. As previously disclosed, this resulted in a pre-tax loss of approximately $2.8 million ($1.8 million after-tax). About ProAssurance

ProAssurance Corporation is the nation's fifth largest writer of medical professional liability insurance, based on the 2008 writing of its subsidiaries. ProAssurance is recognized as one of the top performing insurance companies in America by virtue of its inclusion in the Ward's 50 for the past three years. ProAssurance is rated "A" by Fitch Ratings and the ProAssurance Group is rated "A" (Excellent) by A.M. Best.

Conference Call Information -- Live: Tuesday, November 3, 2009, 10:00 am et. Investors may dial (888) 587-0595 (toll free) or (719) 325-2104. The call will also be webcast on our website, http://www.proassurance.com/, and on StreetEvents.com. -- Replay: By telephone, through November 20, 2009 at (888) 203-1112 or (719) 457-0820, using access code 5246524. The replay will also be available through November 27, 2009 on our website, http://www.proassurance.com/, and on StreetEvents.com. -- Podcast: A replay, and other information about ProAssurance, is available on a free subscription basis through a link on the ProAssurance website or through Apple's iTunes. Caution Regarding Forward-Looking Statements

Statements in this news release that are not historical fact or that convey our view of future business, events or trends are specifically identified as forward-looking statements. Forward-looking statements are based upon our estimates and anticipation of future events and highlight certain risks and uncertainties that could cause actual results to vary materially from our expected results. We expressly claim the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, for any forward-looking statements in this news release.

Forward-looking statements represent our outlook only as of the date of this news release. Except as required by law or regulation, we do not undertake and specifically decline any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Forward-looking statements are generally identified by words such as, but not limited to, "anticipate," "believe," "estimate," "expect," "hope," "hopeful," "intend," "may," "optimistic," "potential," "preliminary," "project," "should," "will," and other analogous expressions. When we address topics such as liquidity and capital requirements, the value of our investments, return on equity, financial ratios, net income, premiums, losses and loss reserves, premium rates and retention of current business, competition and market conditions, the expansion of product lines, the development or acquisition of business in new geographical areas, the availability of acceptable reinsurance, actions by regulators and rating agencies, court actions, legislative actions, payment or performance of obligations under indebtedness, payment of dividends, and other, similar matters, we are making forward-looking statements.

The following important factors are among those that could affect the actual outcome of future events:

-- general economic conditions, either nationally or in our market areas, that are different than anticipated; -- regulatory, legislative and judicial actions or decisions that could affect our business plans or operations; -- the enactment or repeal of tort reforms; -- formation of state-sponsored malpractice insurance entities that could remove some physicians from the private insurance market; -- the impact of deflation or inflation; -- changes in the interest rate environment; -- the effect that changes in laws or government regulations affecting the U.S. economy or financial institutions, including the Emergency Economic Stabilization Act of 2008 and the American Recovery and Reinvestment Act of 2009, may have on the U.S. economy and our business; -- performance of financial markets affecting the fair value of our investments or making it difficult to determine the value of our investments; -- changes in accounting policies and practices that may be adopted by our regulatory agencies and the Financial Accounting Standards Board or the Securities and Exchange Commission; -- changes in laws or government regulations affecting medical professional liability insurance or the financial community; -- the effects of changes in the health care delivery system; -- uncertainties inherent in the estimate of loss and loss adjustment expense reserves and reinsurance, and changes in the availability, cost, quality, or collectability of insurance/reinsurance; -- the results of litigation, including pre-or post-trial motions, trials and/or appeals we undertake; bad faith litigation which may arise from our handling of any particular claim, including failure to settle; -- the loss of independent agents; -- changes in our organization, compensation and benefit plans; -- our ability to retain and recruit senior management; -- our ability to purchase reinsurance and collect payments from our reinsurers; -- increases in guaranty fund assessments; -- our ability to achieve continued growth through expansion into other states or through acquisitions or business combinations; -- changes to the ratings assigned by rating agencies to our insurance subsidiaries, individually or as a group; -- changes in competition among insurance providers and related pricing weaknesses in our markets; and -- the expected benefits from completed and proposed acquisitions may not be achieved or may be delayed longer than expected due to business disruption, loss of customers and employees, increased operating costs or inability to achieve cost savings, and assumption of greater than expected liabilities, among other reasons.

Additional risk factors that may cause outcomes that differ from our expectations or projections are described in various documents we file with the Securities and Exchange Commission, such as our current reports on Form 8-K, and our regular reports on Forms 10-Q and 10-K, particularly in "Item 1A, Risk Factors."

Photo: http://www.newscom.com/cgi-bin/prnh/20081024/PROASSURANCELOGO ProAssurance

CONTACT: Frank B. O'Neil, Sr. Vice President, Corporate Communications &
Investor Relations, +1-800-282-6242, +1-205-877-4461, foneil@ProAssurance.com

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

Parkway Properties, Inc. Reports 2009 Third Quarter Results

JACKSON, Miss., Nov. 2 /PRNewswire-FirstCall/ --

Highlights -- Achieves FFO of $0.76 per diluted share -- Achieves same-store average occupancy of 88.8% -- Average same-store rent per square foot increases 2.8% to $23.12 -- Increases FFO earnings outlook range for 2009 to $3.17 to $3.27 per diluted share

Parkway Properties, Inc. today announced results for its third quarter ended September 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20030513/PARKLOGO )

Steven G. Rogers, President and Chief Executive Officer stated, "We are pleased to report funds from operations ("FFO") of $0.76 per diluted share for the third quarter, while maintaining average portfolio occupancy and average rent per square foot at the high end of our previous earnings outlook. While the U.S. is beginning its economic recovery, office leasing trends will continue to lag the overall economic recovery. We will continue to play good defensive ball while positioning our balance sheet for future growth."

Consolidated Financial Results -- FFO available to common shareholders totaled $16.2 million, or $0.76 per diluted share, for the three months ended September 30, 2009, as compared to $14.0 million, or $0.92 per diluted share, for the three months ended September 30, 2008. For the nine months ended September 30, 2009, FFO totaled $48.9 million, or $2.59 per diluted share, compared to $43.9 million, or $2.90 per diluted share for the nine months ended September 30, 2008. For the nine months ended September 30, 2009, the Company recorded an unusual item of $742,000, or $0.04 per diluted share, related to the partial recognition of a gain on involuntary conversion from Hurricane Ike.

Included in FFO per diluted share are the following amounts (in thousands, except average rent per square foot and average occupancy):

YTD YTD Description Q3 2009 Q3 2008 2009 2008 ------------------------------------------------------------------------- Unusual Items: Gain on involuntary conversion from Hurricane Ike $- $- $742 $- Hurricane Ike expense $- $(640) $- $(640) Non-cash purchase accounting adjustment $- $- $- $(657) Loss on extinguishment of debt $- $(2,140) $- $(2,153) Other Items of Note: Lease termination fees (1) $349 $2,371 $429 $3,652 Straight-line rent (1) $1,419 $391 $3,762 $1,038 Amortization of above market rent (1) $(49) $(152) $(196) $(537) Bad debt expense (1) $(384) $(361) $(1,652) $(999) Portfolio Information: Average rent per square foot (2)(3) $23.12 $22.27 $22.99 $22.04 Average occupancy (2)(4) 88.7% 91.2% 89.4% 90.9% Same-store average rent per square foot (2)(3) $23.12 $22.49 $22.86 $22.25 Same-store average occupancy (2)(4) 88.8% 90.9% 89.6% 90.7% Total office square feet under ownership (2) 13,362 13,350 13,362 13,350 Total office square feet under management (5) 14,179 15,162 14,179 15,162 (1) These items include 100% of amounts from wholly-owned assets plus the Company's allocable share of these items recognized from the assets held in consolidated joint ventures and unconsolidated joint ventures. (2) These items include total office square feet of wholly-owned assets, consolidated joint ventures and unconsolidated joint ventures. (3) Average rent per square foot is defined as the weighted average annual gross rental rate, including escalations for operating expenses, divided by occupied square feet. (4) Average occupancy is defined as average occupied square feet divided by average total rentable square feet. (5) Total office square feet under management includes wholly-owned assets, consolidated joint ventures, unconsolidated joint ventures and third-party management agreements at the end of the period. -- Funds available for distribution ("FAD") totaled $7.3 million, or $0.34 per diluted share, for the three months ended September 30, 2009, as compared to $7.5 million, or $0.49 per diluted share, for the three months ended September 30, 2008. FAD for the three months ended September 30, 2009 was affected by the leasing costs related to three large new leases totaling approximately 160,000 square feet in the amount of $2.0 million. FAD totaled $27.6 million, or $1.46 per diluted share, for the nine months ended September 30, 2009, compared to $27.9 million, or $1.84 per diluted share for the nine months ended September 30, 2008. -- Net loss available to common shareholders for the three months ended September 30, 2009, was $2.8 million, or $0.13 per diluted share, as compared to net income available to common shareholders of $18.5 million, or $1.23 per diluted share, for the three months ended September 30, 2008. Net loss available to common shareholders for the nine months ended September 30, 2009, was $5.0 million, or $0.27 per diluted share as compared to net income available to common shareholders of $11.6 million, or $0.77 per diluted share, for the nine months ended September 30, 2008. Net gains on the sale of real estate and involuntary conversion of $1.2 million were included in net loss available to common shareholders for the nine months ended September 30, 2009. Net gains on the sale of real estate of $22.6 million were included in net income available to common shareholders for the three months and nine months ended September 30, 2008. Operations and Leasing -- The Company's average rent per square foot increased 3.8% to $23.12 during the third quarter 2009 as compared to $22.27 for the third quarter 2008 and increased 4.3% to $22.99 during the nine months ended September 30, 2009, as compared to $22.04 for the nine months ended September 30, 2008. On a same-store basis, the Company's average rent per square foot increased 2.8% to $23.12 during the third quarter 2009 as compared to $22.49 during the third quarter 2008, and increased 2.7% to $22.86 during the nine months ended September 30, 2009, as compared to $22.25 during the nine months ended September 30, 2008. -- The Company's average occupancy for the third quarter 2009 was 88.7% as compared to 91.2% for the third quarter 2008, and was 89.4% for the nine months ended September 30, 2009, as compared to 90.9% for the nine months ended September 30, 2008. On a same-store basis, the Company's average occupancy for the third quarter 2009 was 88.8% as compared to 90.9% for the third quarter 2008. For the nine months ended September 30, 2009, same-store average occupancy was 89.6% as compared to 90.7% for the nine months ended September 30, 2008. -- At October 1, 2009, the Company's office portfolio occupancy was 88.3% as compared to 88.7% at July 1, 2009, and 90.4% at October 1, 2008. Not included in the October 1, 2009, occupancy rate are 23 signed leases totaling 133,000 square feet, which commence in the fourth quarter of 2009 through the first quarter of 2010. Including these leases, the Company's portfolio was 89.3% leased at October 12, 2009. -- Parkway's customer retention rate was 58.0% for the quarter ending September 30, 2009, as compared to 68.8% for the quarter ending June 30, 2009, and 66.7% for the quarter ending September 30, 2008. Customer retention for the nine months ended September 30, 2009, and September 30, 2008, was 61.0% and 71.5%, respectively. -- During the third quarter 2009, 65 leases were renewed or expanded on 464,000 rentable square feet at an average rent per square foot of $21.23, representing a 6.1% increase, and at a cost of $2.45 per square foot of the lease term in annual leasing costs. During the nine months ending September 30, 2009, 191 leases were renewed or expanded on 1.3 million rentable square feet at an average rent per square foot of $20.75, representing a 3.0% decrease, and at a cost of $2.32 per square foot per year of the lease term in annual leasing costs. -- During the third quarter 2009, 39 new leases were signed on 203,000 rentable square feet at an average rent per square foot of $22.18 and at a cost of $5.06 per square foot of the lease term in annual leasing costs. During the nine months ending September 30, 2009, 87 new leases were signed on 511,000 rentable square feet at an average rent per square foot of $21.26 and at an average cost of $4.66 per square foot per year of the lease term in annual leasing costs. -- On a same-store basis, the Company's share of net operating income ("NOI") decreased $1.2 million or 4.0% for the third quarter 2009 as compared to the same period of the prior year on a GAAP basis. On a cash basis, the Company's share of same-store NOI decreased $2.1 million or 7.1% for the third quarter 2009 as compared to the same period of the prior year. The Company's share of same-store NOI for the nine months ended September 30, 2009, decreased $1.3 million or 1.6% compared to the same period of 2008 on a GAAP basis and decreased $3.7 million or 4.3% on a cash basis. The decrease in same-store NOI on a cash basis is primarily attributable to a decrease in lease termination fees of $3.2 million and an increase in ad valorem taxes of $880,000, partially offset by an increase in rent income of $1.1 million due to a 2.7% increase in average rent per square foot for the nine months ending September 30, 2009, as compared to the same period of 2008. Capital Structure -- On September 30, 2009, the Company owed $100.0 million related to its $311.0 million line of credit and has $35.6 million in cash and cash equivalents. The Company has no outstanding debt maturities remaining in 2009 and $123.8 million in 2010. Included in the 2010 debt maturities is a $60.0 million mortgage related to its Capital City Plaza asset, which is currently 93.1% leased. The mortgage on Capital City Plaza has a one-year extension option at the Company's discretion. Assuming the extension option is exercised, the Company's total maturities for 2010 would be $63.8 million, and its existing line of credit capacity could be utilized to pay such debt maturities. -- The Company's previously announced cash dividend of $0.325 per share for the quarter ended September 30, 2009, represents a payout of approximately 42.9% of FFO per diluted share for the quarter. The third quarter dividend was paid on September 30, 2009. The dividend was the ninety-second (92nd) consecutive quarterly distribution to Parkway's shareholders of Common Stock, representing an annualized dividend rate of $1.30 per share and a yield of 7.4% based on the closing stock price on October 30, 2009 of $17.65. -- At September 30, 2009, the Company's debt to EBITDA multiple was 6.6 times as compared to 6.5 times at June 30, 2009, and 7.0 times at September 30, 2008. The decrease in the debt to EBITDA multiple at September 30, 2009 compared to the prior year is primarily due to the reduction in debt as a result of the second quarter 2009 $85.0 million common stock offering. Revised Outlook for 2009

The Company is increasing its 2009 FFO outlook from $2.80 to $3.15 per diluted share to $3.17 to $3.27 per diluted share. The reconciliation of forecasted earnings per diluted share ("EPS") to forecasted FFO per diluted share is as follows:

Outlook for 2009 Range --------------------------------------------------------- ------------- Fully diluted EPS ($0.43-$0.33) Plus: Real estate depreciation and amortization $4.57-$4.57 Plus: Depreciation on unconsolidated joint ventures $0.04-$0.04 Less: Gain on sale of real estate ($0.02-$0.02) Less: Noncontrolling interest depreciation/amortization ($0.99-$0.99) ------------- FFO per diluted share $3.17-$3.27 =============

The revised earnings outlook for 2009 is based on the Company's actual FFO for the nine months ended September 30, 2009 of $2.59 per diluted share, which includes $0.04 per diluted share related to the partial recognition of a gain on involuntary conversion from Hurricane Ike, and the Company's 2009 fourth quarter FFO forecast, as adjusted for the core operating assumptions described below. The revised earnings outlook does not include the impact of possible future gains or losses on early extinguishment of debt, possible future acquisitions or dispositions, possible future impairment charges or other unusual charges that may occur during the remainder of the year. These assumptions reflect the Company's expectations based on its knowledge of current market conditions and historical experience.

Revised 2009 Core Operating Assumptions: -- An average annual same-store occupancy range of 89.0% to 89.5%. -- An average annual same-store rental rate per square foot of $22.50 to $23.00. -- Recurring same-store net operating income decrease of (2.5%) to (1.0%) on a GAAP basis. On a recurring cash basis, annual same-store net operating income is expected to decline by (5.0%) to (3.5%). -- Net general and administrative expenses are expected to be in the range of $6.4 million to $6.6 million. -- Total capital expenditures are projected to be in the range of $25.0 million to $30.0 million, as compared to $24.0 million in 2008. -- Assumes annual weighted average diluted shares of 19.4 million for 2009. About Parkway Properties

Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 65 office properties located in 11 states with an aggregate of approximately 13.4 million square feet of leasable space at November 2, 2009. Included in the portfolio are 21 properties totaling 3.9 million square feet that are owned jointly with other investors, representing 28.8% of the portfolio. Fee-based real estate services are offered through the Company's wholly-owned subsidiary, Parkway Realty Services, which also manages and/or leases approximately 1.3 million square feet for third-party owners at November 2, 2009.

Additional Information

The Company will conduct a conference call to discuss the results of its third quarter operations on Tuesday, November 3, 2009, at 11:00 a.m. Eastern Time. The number for the conference call is 888-245-0920. A taped replay of the call can be accessed 24 hours a day through November 13, 2009, by dialing 888-203-1112 and using the pass code of 8245324. An audio replay will be archived and indexed in the investor relations section of the Company's website at http://www.pky.com/. A copy of the Company's 2009 third quarter supplemental financial and property information package is available by accessing the Company's website, emailing your request to rjordan@pky.com or calling Rita Jordan at 6019484091. Please participate in the visual portion of the conference call by accessing the Company's website and clicking on the "3Q Call" icon.

Additional information on Parkway Properties, Inc., including an archive of corporate press releases and conference calls, is available on the Company's website. The Company's third quarter 2009 Supplemental Operating and Financial Data, which includes a reconciliation of Non-GAAP financial measures, is available on the Company's website.

Forward Looking Statement

Certain statements in this release that are not in the present or past tense or discuss the Company's expectations (including the use of the words anticipate, believe, forecast, intends or project) are forward-looking statements within the meaning of the federal securities laws and as such are based upon the Company's current belief as to the outcome and timing of future events. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets; the demand for and market acceptance of the Company's properties for rental purposes; the amount and growth of the Company's expenses; tenant financial difficulties and general economic conditions, including interest rates, as well as economic conditions in those areas where the Company owns properties; the risks associated with the ownership and development of real property; the failure to acquire or sell properties as and when anticipated; and other risks and uncertainties detailed from time to time on the Company's SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company's results could differ materially from those expressed in the forward-looking statements. The Company does not undertake to update forward-looking statements.

Company's Use of FFO, FAD and EBITDA

FFO, FFO per diluted share, FAD, FAD per diluted share and EBITDA are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs and should be evaluated along with GAAP net income and income per diluted share (the most directly comparable GAAP measures), as well as cash flow from operating activities, investing activities and financing activities, in evaluating the operating performance of equity REITs. Management believes that FFO, FFO per diluted share, FAD, FAD per diluted share and EBITDA are helpful to investors as supplemental performance measures because these measures exclude the effect of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, these non-GAAP measures can facilitate comparisons of operating performance between periods and among other equity REITs. FFO, FAD and EBITDA do not represent cash generated from operating activities in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs as disclosed in the Company's Consolidated Statements of Cash Flows. FFO, FAD and EBITDA should not be considered as an alternative to net income as an indicator of the Company's operating performance or as an alternative to cash flows as a measure of liquidity.

Parkway Properties, Inc. FOR FURTHER INFORMATION: 188 E. Capitol Street, Suite 1000 Steven G. Rogers Jackson, MS 39201 President & Chief Executive Officer http://www.pky.com/ J. Mitchell Collins (601) 948-4091 Chief Financial Officer PARKWAY PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share data) September 30 December 31 2009 2008 ---- ---- (Unaudited) Assets Real estate related investments: Office and parking properties $1,732,454 $1,737,549 Real estate development 609 609 Accumulated depreciation (323,721) (282,919) -------- -------- 1,409,342 1,455,239 Land available for sale 750 750 Mortgage loan 7,965 7,519 Investment in unconsolidated joint ventures 11,332 11,057 ------ ------ 1,429,389 1,474,565 Rents receivable and other assets 112,011 118,512 Intangible assets, net 66,794 79,460 Cash and cash equivalents 35,635 15,318 ------ ------ $1,643,829 $1,687,855 ========== ========== Liabilities Notes payable to banks $100,000 $185,940 Mortgage notes payable 856,232 869,581 Accounts payable and other liabilities 96,874 98,894 ------ ------ 1,053,106 1,154,415 --------- --------- Equity Parkway Properties, Inc. shareholders' equity 8.00% Series D Preferred stock, $.001 par value, 2,400,000 shares authorized, issued and outstanding 57,976 57,976 Common stock, $.001 par value, 67,600,000 shares authorized, 21,621,552 and 15,253,396 Shares issued and outstanding in 2009 and 2008, respectively 22 15 Common stock held in trust, at cost, 71,255 and 85,300 shares in 2009 and 2008, respectively (2,399) (2,895) Additional paid-in capital 514,757 428,367 Accumulated other comprehensive loss (5,821) (7,728) Accumulated deficit (93,553) (69,487) ------- ------- Total Parkway Properties, Inc. shareholders' equity 470,982 406,248 Noncontrolling interest - real estate partnerships 119,741 127,192 ------- ------- Total equity 590,723 533,440 ------- ------- $1,643,829 $1,687,855 ========== ========== PARKWAY PROPERTIES, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) Three Months Ended September 30 ------------------ 2009 2008 ---- ---- (Unaudited) Revenues Income from office and parking properties $66,474 $69,857 Management company income 340 449 --- --- Total revenues 66,814 70,306 ------ ------ Expenses Property operating expense 31,600 34,295 Depreciation and amortization 23,401 22,755 Management company expenses 577 432 General and administrative 1,783 2,055 ----- ----- Total expenses 57,361 59,537 ------ ------ Operating income 9,453 10,769 Other income and expenses Interest and other income 672 346 Equity in earnings of unconsolidated joint ventures 48 255 Interest expense (13,835) (14,843) ------- ------- Loss from continuing operations (3,662) (3,473) Discontinued operations: Loss from discontinued operations - (2,001) Gain on sale of real estate from discontinued operations - 22,588 --- ------ Total discontinued operations - 20,587 --- ------ Net income (loss) (3,662) 17,114 Net loss attributable to noncontrolling interest - real estate partnerships 2,107 2,584 ----- ----- Net income (loss) for Parkway Properties, Inc. (1,555) 19,698 Dividends on preferred stock (1,200) (1,200) ------ ------ Net income (loss) available to common stockholders $(2,755) $18,498 ======= ======= Net income (loss) per common share attributable to Parkway Properties, Inc.: Basic: Loss from continuing operations attributable to Parkway Properties, Inc. $(0.13) $(0.14) Discontinued operations - 1.37 --- ---- Net income (loss) attributable to Parkway Properties, Inc. $(0.13) $1.23 ====== ===== Diluted: Loss from continuing operations attributable to Parkway Properties, Inc. $(0.13) $(0.14) Discontinued operations - 1.37 --- ---- Net income (loss) attributable to Parkway Properties, Inc. $(0.13) $1.23 ====== ===== Dividends per common share $0.325 $0.65 ====== ===== Weighted average shares outstanding: Basic 21,313 15,031 ====== ====== Diluted 21,313 15,031 ====== ====== PARKWAY PROPERTIES, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) Nine Months Ended September 30 ------------------ 2009 2008 ---- ---- (Unaudited) Revenues Income from office and parking properties $200,751 $198,144 Management company income 1,486 1,356 ----- ----- Total revenues 202,237 199,500 ------- ------- Expenses Property operating expense 97,058 95,708 Depreciation and amortization 68,701 66,659 Management company expenses 1,710 1,353 General and administrative 4,734 6,443 ----- ----- Total expenses 172,203 170,163 ------- ------- Operating income 30,034 29,337 Other income and expenses Interest and other income 1,283 1,020 Equity in earnings of unconsolidated joint ventures 475 802 Gain on involuntary conversion 742 - Gain on sale of real estate 470 - Interest expense (41,936) (44,954) ------- ------- Loss from continuing operations (8,932) (13,795) Discontinued operations: Loss from discontinued operations - (760) Gain on sale of real estate from discontinued operations - 22,588 --- ------ Total discontinued operations - 21,828 --- ------ Net income (loss) (8,932) 8,033 Net loss attributable to noncontrolling interest - real estate partnerships 7,508 7,134 ----- ----- Net income (loss) for Parkway Properties, Inc. (1,424) 15,167 Dividends on preferred stock (3,600) (3,600) ------ ------ Net income (loss) available to common stockholders $(5,024) $11,567 ======= ======= Net income (loss) per common share attributable to Parkway Properties, Inc.: Basic: Loss from continuing operations attributable to Parkway Properties, Inc. $(0.27) $(0.68) Discontinued operations - 1.45 --- ---- Net income (loss) attributable to Parkway Properties, Inc. $(0.27) $0.77 ====== ===== Diluted: Loss from continuing operations attributable to Parkway Properties, Inc. $(0.27) $(0.68) Discontinued operations - 1.45 --- ---- Net income (loss) attributable to Parkway Properties, Inc. $(0.27) $0.77 ====== ===== Dividends per common share $0.975 $1.95 ====== ===== Weighted average shares outstanding: Basic 18,827 15,019 ====== ====== Diluted 18,827 15,019 ====== ====== PARKWAY PROPERTIES, INC. RECONCILIATION OF FUNDS FROM OPERATIONS AND FUNDS AVAILABLE FOR DISTRIBUTION TO NET INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (In thousands, except per share data) Three Months Ended Nine Months Ended September 30 September 30 -------------- -------------- 2009 2008 2009 2008 ---- ---- ---- ---- (Unaudited) (Unaudited) Net Income (Loss) $(1,555) $19,698 $(1,424) $15,167 Adjustments to Net Income (Loss): Preferred Dividends (1,200) (1,200) (3,600) (3,600) Depreciation and Amortization 23,401 22,755 68,701 66,659 Depreciation and Amortization - Discontinued Operations - 171 - 1,873 Noncontrolling Interest Depreciation and Amortization (4,625) (5,011) (14,939) (14,119) Adjustments for Unconsolidated Joint Ventures 221 200 630 555 Gain on Sale of Real Estate - (22,588) (470) (22,588) --- ------- ---- ------- Funds From Operations Available to Common Shareholders (1) $16,242 $14,025 $48,898 $43,947 ======= ======= ======= ======= Funds Available for Distribution Funds From Operations Available to Common Shareholders $16,242 $14,025 $48,898 $43,947 Add (Deduct) : Adjustments for Unconsolidated Joint Ventures (70) (116) (588) (297) Adjustments for Noncontrolling Interest in Real Estate Partnerships 1,179 673 3,562 2,053 Straight-line Rents (2,103) (824) (5,334) (2,690) Straight-line Rents - Discontinued Operations - 13 - 61 Amortization of Above/Below Market Leases (8) (49) (98) 198 Amortization of Share-Based Compensation 659 463 1,940 1,381 Capital Expenditures: Building Improvements (1,668) (1,185) (3,546) (3,058) Tenant Improvements - New Leases (3,227) (1,500) (7,077) (4,221) Tenant Improvements - Renewal Leases (845) (2,545) (3,761) (5,585) Leasing Costs - New Leases (1,304) (967) (2,279) (1,765) Leasing Costs - Renewal Leases (1,537) (510) (4,077) (2,075) ------ ---- ------ ------ Funds Available for Distribution (1) $7,318 $7,478 $27,640 $27,949 ====== ====== ======= ======= Diluted Per Common Share/Unit Information (**) FFO per share $0.76 $0.92 $2.59 $2.90 FAD per share $0.34 $0.49 $1.46 $1.84 Dividends paid $0.325 $0.65 $0.975 $1.95 Dividend payout ratio for FFO 42.91% 70.33% 37.67% 67.24% Dividend payout ratio for FAD 95.24% 131.90% 66.65% 105.74% Weighted average shares/units outstanding 21,445 15,174 18,894 15,155 Other Supplemental Information Upgrades on Acquisitions $1,104 $3,043 $5,623 $12,275 Gain on Involuntary Conversion $- $- $742 $- **Information for Diluted Computations: Basic Common Shares/Units Outstanding 21,314 15,032 18,828 15,021 Dilutive Effect of Other Share Equivalents 131 142 66 134 (1) Parkway computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition. FFO is defined as net income, computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains or losses from the sales of properties, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. There is not a standard definition established for FAD. Therefore, our measure of FAD may not be comparable to FAD reported by other REITs. We define FAD as FFO, excluding the amortization of restricted shares, amortization of above/below market leases and straight line rent adjustments, and reduced by non-revenue enhancing capital expenditures for building improvements, tenant improvements and leasing costs. Adjustments for unconsolidated partnerships and joint ventures are included in the computation of FAD on the same basis. PARKWAY PROPERTIES, INC. CALCULATION OF EBITDA AND COVERAGE RATIOS FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (In thousands) Three Months Ended Nine Months Ended September 30 September 30 ------------------ ----------------- 2009 2008 2009 2008 ---- ---- ---- ---- (Unaudited) (Unaudited) Net Income (Loss) $(1,555) $19,698 $(1,424) $15,167 Adjustments to Net Income (Loss): Interest Expense 13,288 14,659 40,164 44,647 Amortization of Financing Costs 547 450 1,772 1,322 Prepayment Expense - Early Extinguishment of Debt - 2,140 - 2,153 Depreciation and Amortization 23,401 22,926 68,701 68,532 Amortization of Share-Based Compensation 659 463 1,940 1,381 Net Gain on Real Estate and Involuntary Conversion - (22,588) (1,212) (22,588) Tax Expense 2 2 2 2 EBITDA Adjustments - Unconsolidated Joint Ventures 349 331 1,014 945 EBITDA Adjustments - Noncontrolling Interest in Real Estate Partnerships (7,769) (8,141) (24,356) (23,067) ------ ------ ------- ------- EBITDA (1) $28,922 $29,940 $86,601 $88,494 ======= ======= ======= ======= Interest Coverage Ratio: EBITDA $28,922 $29,940 $86,601 $88,494 ======= ======= ======= ======= Interest Expense: Interest Expense $13,288 $14,659 $40,164 $44,647 Capitalized Interest - 258 - 601 Interest Expense - Unconsolidated Joint Ventures 126 128 376 382 Interest Expense - Noncontrolling Interest in Real Estate Partnerships (3,075) (3,061) (9,209) (8,750) ------ ------ ------ ------ Total Interest Expense $10,339 $11,984 $31,331 $36,880 ======= ======= ======= ======= Interest Coverage Ratio 2.80 2.50 2.76 2.40 ==== ==== ==== ==== Fixed Charge Coverage Ratio: EBITDA $28,922 $29,940 $86,601 $88,494 ======= ======= ======= ======= Fixed Charges: Interest Expense $10,339 $11,984 $31,331 $36,880 Preferred Dividends 1,200 1,200 3,600 3,600 Principal Payments (Excluding Early Extinguishment of Debt) 3,472 3,231 10,083 10,481 Principal Payments - Unconsolidated Joint Ventures 35 14 108 40 Principal Payments - Noncontrolling Interest in Real Estate Partnerships (279) (78) (695) (250) ---- --- ---- ---- Total Fixed Charges $14,767 $16,351 $44,427 $50,751 ======= ======= ======= ======= Fixed Charge Coverage Ratio 1.96 1.83 1.95 1.74 ==== ==== ==== ==== Modified Fixed Charge Coverage Ratio: EBITDA $28,922 $29,940 $86,601 $88,494 ======= ======= ======= ======= Modified Fixed Charges: Interest Expense $10,339 $11,984 $31,331 $36,880 Preferred Dividends 1,200 1,200 3,600 3,600 ----- ----- ----- ----- Total Modified Fixed Charges $11,539 $13,184 $34,931 $40,480 ======= ======= ======= ======= Modified Fixed Charge Coverage Ratio 2.51 2.27 2.48 2.19 ==== ==== ==== ==== The following table reconciles EBITDA to cash flows provided by operating activities: EBITDA $28,922 $29,940 $86,601 $88,494 Amortization of Above (Below) Market Leases (8) (49) (98) 198 Amortization of Mortgage Loan Discount (154) (131) (447) (380) Operating Distributions from Unconsolidated Joint Ventures 69 194 392 855 Interest Expense (13,288) (14,659) (40,164) (44,647) Prepayment Expense - Early Extinguishment of Debt - (2,140) - (2,153) Tax Expense (2) (2) (2) (2) Change in Deferred Leasing Costs (2,950) (1,833) (7,413) (6,527) Change in Receivables and Other Assets (3,073) (6,335) 2,680 3,559 Change in Accounts Payable and Other Liabilities 11,070 6,729 6,640 1,896 Adjustments for Noncontrolling Interests 5,662 5,557 16,848 15,933 Adjustments for Unconsolidated Joint Ventures (397) (586) (1,489) (1,747) ---- ---- ------ ------ Cash Flows Provided by Operating Activities $25,851 $16,685 $63,548 $55,479 ======= ======= ======= ======= (1) Parkway defines EBITDA, a non-GAAP financial measure, as net income before interest expense, income taxes, depreciation, amortization, losses on early extinguishment of debt and other gains and losses. EBITDA, as calculated by us, is not comparable to EBITDA reported by other REITs that do not define EBITDA exactly as we do. EBITDA does not represent cash generated from operating activities in accordance with generally accepted accounting principles, and should not be considered an alternative to operating income or net income as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of liquidity. PARKWAY PROPERTIES, INC. NET OPERATING INCOME FROM OFFICE AND PARKING PROPERTIES THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (In thousands, except number of properties data) Net Operating Average Income Occupancy ------------- ------------ Number of Percentage of Properties Portfolio (1) 2009 2008 2009 2008 ---------- ------------- ----------------- ------------ Same-store properties (2): Wholly-owned 44 68.99% $25,405 $26,545 88.8% 90.8% Parkway Properties Office Fund LP 13 22.74% 8,375 8,285 88.0% 89.2% Other consolidated joint venture 1 1.52% 561 438 87.5% 88.2% Unconsolidated joint ventures 7 5.30% 1,951 2,827 90.9% 97.2% --- ---- ----- ----- ---- ---- Total same-store properties 65 98.55% 36,292 38,095 88.8% 90.9% Office property development 1 1.44% 528 (16) 82.8% N/A Assets sold - 0.01% 5 310 N/A N/A --- ---- --- --- Net operating income from office and parking properties 66 100.00% $36,825 $38,389 --- ------ ------- ------- (1) Percentage of portfolio based on 2009 net operating income. (2) Parkway defines Same-Store Properties as those properties that were owned for the entire three-month periods ended September 30, 2009 and 2008 and excludes properties classified as discontinued operations. Same-Store net operating income ("SSNOI") includes income from real estate operations less property operating expenses (before interest and depreciation and amortization) for Same-Store Properties. SSNOI as computed by Parkway may not be comparable to SSNOI reported by other REITs that do not define the measure exactly as we do. SSNOI is a supplemental industry reporting measurement used to evaluate the performance of the Company's investments in real estate assets. The following table is a reconciliation of net income to SSNOI: Three Months Ended Nine Months Ended September 30 September 30 ------------------ ----------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net income (loss) for Parkway Properties, Inc. $(1,555) $19,698 $(1,424) $15,167 Add (deduct): Interest expense 13,835 14,843 41,936 44,954 Depreciation and amortization 23,401 22,755 68,701 66,659 Management company expenses 577 432 1,710 1,353 General and administrative expenses 1,783 2,055 4,734 6,443 Equity in earnings of unconsolidated joint ventures (48) (255) (475) (802) Gain on involuntary conversion - - (742) - Gain on sale of real estate - - (470) - Net loss attributable to noncontrolling interests - real estate partnerships (2,107) (2,584) (7,508) (7,134) Loss from discontinued operations - 2,001 - 760 Gain on sale of real estate from discontinued operations - (22,588) - (22,588) Management company income (340) (449) (1,486) (1,356) Interest and other income (672) (346) (1,283) (1,020) ---- ---- ------ ------ Net operating income from consolidated office and parking properties 34,874 35,562 103,693 102,436 Net operating income from unconsolidated joint ventures 1,951 2,827 7,223 8,366 Less: Net operating income from non same-store properties (533) (294) (5,316) (2,867) ---- ---- ------ ------ Same-store net operating income $36,292 $38,095 $105,600 $107,935 ------- ------- -------- --------

Photo: http://www.newscom.com/cgi-bin/prnh/20030513/PARKLOGO Parkway Properties, Inc.

CONTACT: Steven G. Rogers, President & Chief Executive Officer, or J.
Mitchell Collins, Chief Financial Officer, both of Parkway Properties, Inc.,
+1-601-948-4091

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

First Mercury Financial Corporation Announces Third Quarter 2009 Financial Results

SOUTHFIELD, Mich., Nov. 2 /PRNewswire-FirstCall/ -- First Mercury Financial Corporation ("First Mercury" or the "Company") today announced results for the third quarter and nine months ended September 30, 2009.

Highlights for the third quarter 2009 include: -- Gross written premium growth of 6.2 percent -- Net income of $15.6 million, or $0.89 per diluted share -- Operating net income of $6.8 million, or $0.39 per diluted share -- Book value per share of $17.90, an increase of 22.0 percent from December 31, 2008 -- Commission and fee income growth of 56.5 percent -- Net investment income growth of 35.3 percent -- Repurchase of 413,665 shares of common stock for $5.4 million at an average cost of $13.06 per share -- Authorization of a new Share Repurchase Program for up to 1,000,000 shares -- Second consecutive quarterly dividend of $0.025 per share

"We are pleased with another solid quarter," said Richard H. Smith, Chairman, President and Chief Executive Officer. "Our new initiatives resulted in gross written premium growth of 6.2 percent, while we maintained underwriting discipline as demonstrated by our underwriting results. Our continued positive investment performance and underwriting results contributed to a 22.0 percent increase in book value per share to $17.90 since year end," continued Smith.

Net income for the third quarter of 2009 was $15.6 million compared to $0.1 million for the same period of 2008. Net income for the first nine months of 2009 was $35.9 million compared to $38.5 million for the same period of 2008. Net income for the nine months ended September 30, 2008 included $23.1 million of income from discontinued operations, which includes a gain on the sale of ARPCO of $20.9 million. Operating net income for the third quarter of 2009 was $6.8 million compared to $7.4 million for the same period of 2008. Operating net income for the first nine months of 2009 was $19.6 million compared to $23.5 million for the same period of 2008.

For the three months ended September 30, 2009, gross written premiums were $81.8 million, a 6.2 percent increase from the gross written premiums during the same period in 2008. For the nine months ended September 30, 2009, gross written premiums were $242.2 million, a 1.7 percent increase from the gross written premiums during the same period in 2008.

Net earned premiums during the three months ended September 30, 2009 were $51.5 million, a 4.9 percent increase from the same period of 2008. For the nine months ended September 30, 2009, net earned premiums were $155.5 million, a 11.7 percent increase from the same period in 2008.

Net investment income earned during the three months ended September 30, 2009 was $7.5 million, up 35.3 percent from the same period of 2008. Net investment income earned during the nine months ended September 30, 2009 was $21.1 million, up 35.0 percent from the same period of 2008.

Net realized gains on investments during the three months ended September 30, 2009 were $13.8 million compared to net realized losses on investments of $7.1 million during the same period of 2008. Net realized gains on investments during the nine months ended September 30, 2009 were $25.2 million compared to net realized losses on investments of $8.7 million during the same period of 2008. The net realized gains for the three and nine months ended September 30, 2009 included mark-to-market adjustments of $12.4 million and $21.1 million, respectively, on the Company's convertible securities portfolio, high yield convertible fund and structured finance fund. Other-than-temporary impairment losses on investments during the three months ended September 30, 2009 were $0.3 million compared to other-than-temporary impairment losses on investments of $3.5 million during the same period of 2008. Other-than-temporary impairment losses on investments during the nine months ended September 30, 2009 were $0.4 million compared to other-than-temporary impairment losses on investments of $3.7 million during the same period of 2008. In addition, the Company recorded $18.2 million of pretax net unrealized gains on its available for sale investment portfolio during the three months ended September 30, 2009. The Company recorded $32.5 million of pretax net unrealized gains on its available for sale investment portfolio during the nine months ended September 30, 2009.

Total operating revenues for the three months ended September 30, 2009 increased 63.8 percent to $80.0 million compared to $48.8 million for the same period of 2008. Total operating revenues for the nine months ended September 30, 2009 increased 42.3 percent to $225.3 million compared to $158.3 million for the same period of 2008.

The combined ratio for the three months ended September 30, 2009 was 92.5 percent compared to 86.3 percent for the same period of 2008. The combined ratio for the three months ended September 30, 2009 includes a loss ratio of 58.9 percent and an expense ratio of 33.6 percent. These compare to a loss ratio of 56.1 percent and an expense ratio of 30.2 percent for the comparable period in 2008. The combined ratio for the nine months ended September 30, 2009 was 93.5 percent compared to 82.0 percent for the same period of 2008. The combined ratio for the nine months ended September 30, 2009 includes a loss ratio of 61.9 percent and an expense ratio of 31.6 percent. These compare to a loss ratio of 55.1 percent and an expense ratio of 26.9 percent for the comparable period in 2008.

The higher than anticipated property losses the Company experienced during the three months ended June 30, 2009 did not recur during the three months ended September 30, 2009. The Company's property underwriting results for the nine months ended September 30, 2009 include the previously disclosed $2.4 million, or $0.09 per diluted share, net of taxes, of storm losses and $5.2 million, or $0.19 per diluted share, net of taxes, of higher than expected commercial property fires and other losses and loss adjustment expenses recorded during the second quarter of 2009. During the three and nine months ended September 30, 2008, the Company recorded $2.9 million of net losses from Hurricane Ike.

During the three months ended September 30, 2009, there was $1.3 million, or $0.05 per diluted share, net of taxes, of favorable development of prior years' loss and loss adjustment expense reserves. For the nine months ended September 30, 2009, there was $5.7 million, or $0.21 per diluted share, net of taxes, of favorable development of prior years' loss and loss adjustment expense reserves. For the three and nine months ended September 30, 2008, there was $4.8 million of favorable development of prior years' loss and loss adjustment expense reserves.

During the three months ended September 30, 2009, the Company repurchased 413,665 shares of common stock for $5.4 million at an average cost of $13.06 per share. During the nine months ended September 30, 2009, the Company repurchased 801,423 shares of common stock for $10.5 million at an average cost of $13.09 per share. The Company fulfilled 100 percent of the authorization under the Company's August 2008 Share Repurchase Program. On August 20, 2009, the Company's Board of Directors approved a new Share Repurchase Program to repurchase up to 1,000,000 shares of outstanding common stock through August 20, 2010. As of September 30, 2009, the Company has not repurchased any shares under the new authorization.

The Company paid a quarterly cash dividend of $0.025 per share on September 30, 2009. This represents the Company's second consecutive quarterly dividend.

Smith concluded, "We believe we have good visibility on the fourth quarter given the normalizing of our property results. As such, we are narrowing the range of our guidance of operating net income per diluted share from between $1.30 to $1.60 to between $1.45 to $1.55 for the full year 2009."

Conference Call Details

The Company will host a conference call on November 3, 2009 at 11:00 a.m. Eastern Time to discuss third quarter results. The call can be accessed live by dialing 888-219-1420 or by visiting the Company's website at http://www.firstmercury.com/.

Investors may access a replay by dialing 888-203-1112, passcode 5117848, which will be available through November 10, 2009. The webcast replay will also be archived in the "Investor Relations" section of the Company's website.

About First Mercury Financial Corporation

First Mercury Financial Corporation provides insurance products and services primarily to the specialty commercial insurance markets, focusing on niche and underserved segments where we believe that we have underwriting expertise and other competitive advantages. During the Company's 36 years of underwriting risks, First Mercury has developed the underwriting expertise and cost-efficient infrastructure which has enabled us to effectively underwrite such risks. Our risk-taking subsidiaries offer insurance products through our distribution subsidiaries: CoverX®, FM Emerald and AMC, which are recognized brands among insurance producers.

Non-GAAP Financial Measures

Operating net income and operating net income per share are non-GAAP financial measures, and management believes that investors' understanding of core operating performance is enhanced by First Mercury's disclosure of these financial measures. Operating net income consists of net income adjusted to exclude the impact of net realized gains (losses) on investments, other-than-temporary impairment losses on investments, the change in fair value of derivative instruments, income from discontinued operations, and taxes related to these adjustments. Definitions of these items may not be comparable to the definitions used by other companies. Net income and net income per share are the GAAP financial measures that are most directly comparable to operating net income and operating net income per share.

Safe Harbor Statement

This release contains forward-looking statements that relate to future periods and includes statements regarding our anticipated performance. Generally, the words "anticipates," "believes," "expects," "intends," "estimates," "projects," "plans" and similar expressions identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements or industry results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. These risks, uncertainties and other important factors include, among others: recent and future events and circumstances impacting financial, stock, and capital markets, and the responses to such events by governments and the financial communities; the impact of catastrophic events and the occurrence of significant severe weather conditions on our operating results; our ability to maintain or the lowering or loss of one of our financial or claims-paying ratings; our actual incurred losses exceeding our loss and loss adjustment expense reserves; the failure of reinsurers to meet their obligations; our estimates for accrued profit sharing commissions are based on loss ratio performance and could be reduced if the underlying loss ratios deteriorate; our inability to obtain reinsurance coverage at reasonable prices; the failure of any loss limitations or exclusions or changes in claims or coverage; our lack of long-term operating history in certain specialty classes of insurance; our ability to acquire and retain additional underwriting expertise and capacity; the concentration of our insurance business in relatively few specialty classes; the increasingly competitive property and casualty marketplace; fluctuations and uncertainty within the excess and surplus lines insurance industry; the extensive regulations to which our business is subject and our failure to comply with these regulations; our ability to maintain our risk-based capital at levels required by regulatory authorities; our inability to realize our investment objectives; an economic downturn or other economic conditions adversely affecting our financial position; and the risks identified in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K. Given these uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. We assume no obligation to update or revise them or provide reasons why actual results may differ.

The Company uses the Investor Relations page of its website at http://www.firstmercury.com/ to make information available to its investors and the public.

Financial Tables Follow... First Mercury Financial Corporation Condensed Consolidated Statements of Income (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ---------------- ---------------- 2009 2008 2009 2008 ---- ---- ---- ---- (Dollars in thousands, except share and per share data) Operating Revenue Net earned premiums $51,512 $49,092 $155,539 $139,222 Commissions and fees 7,445 4,757 23,916 15,896 Net investment income 7,540 5,571 21,105 15,635 Net realized gains (losses) on investments 13,766 (7,128) 25,204 (8,714) Other-than-temporary impairment losses on investments (292) (3,476) (426) (3,701) ---- ------ ---- ------ Total Operating Revenues 79,971 48,816 225,338 158,338 ------ ------ ------- ------- Operating Expenses Losses and loss adjustment expenses, net 30,345 27,537 96,301 76,713 Amortization of deferred acquisition expenses 13,960 10,798 40,889 28,107 Underwriting, agency and other expenses 10,169 8,999 28,919 26,599 Amortization of intangible assets 559 553 1,709 1,466 --- --- ----- ----- Total Operating Expenses 55,033 47,887 167,818 132,885 ------ ------ ------- ------- Operating Income 24,938 929 57,520 25,453 Interest Expense 1,446 1,440 4,278 4,380 Change in Fair Value of Derivative Instruments (171) (64) (401) 110 ---- --- ---- --- Income (Loss) from Continuing Operations Before Income Taxes 23,663 (447) 53,643 20,963 Income Taxes 8,018 (948) 17,707 5,592 ----- ---- ------ ----- Income from Continuing Operations 15,645 501 35,936 15,371 Income (Loss) from Discontinued Operations, Net of Income Taxes - (447) - 23,106 --- ---- --- ------ Net Income $15,645 $54 $35,936 $38,477 ======= === ======= ======= Basic Net Income Per Share: Income from Continuing Operations $0.90 $0.03 $2.03 $0.84 Income (Loss) from Discontinued Operations - (0.02) - 1.27 --- ----- --- ---- Total $0.90 $0.01 $2.03 $2.11 ===== ===== ===== ===== Diluted Net Income Per Share: Income from Continuing Operations $0.89 $0.03 $1.99 $0.82 Income (Loss) from Discontinued Operations - (0.02) - 1.23 --- ----- --- ---- Total $0.89 $0.01 $1.99 $2.05 ===== ===== ===== ===== Weighted Average Shares Outstanding: Basic 17,144,077 18,206,904 17,537,754 18,190,915 ========== ========== ========== ========== Diluted 17,486,020 18,726,246 17,877,126 18,778,070 ========== ========== ========== ========== GAAP Underwriting Ratios: Loss ratio 58.9% 56.1% 61.9% 55.1% Expense ratio 33.6% 30.2% 31.6% 26.9% ---- ---- ---- ---- Combined ratio 92.5% 86.3% 93.5% 82.0% ==== ==== ==== ==== First Mercury Financial Corporation Condensed Consolidated Balance Sheets (Unaudited) September 30, December 31, 2009 2008 ---- ---- ASSETS (Dollars in thousands, except share and per share data) Investments Debt securities $631,033 $495,799 Equity securities and other 32,224 15,089 Short-term 10,754 32,142 ------ ------ Total Investments 674,011 543,030 Cash and cash equivalents 16,205 31,833 Premiums and reinsurance balances receivable 52,468 56,398 Accrued investment income 5,940 5,400 Accrued profit sharing commissions 13,841 11,315 Reinsurance recoverable on paid and unpaid losses 167,802 135,617 Prepaid reinsurance premiums 59,784 48,921 Deferred acquisition costs 26,310 27,369 Intangible assets, net of accumulated amortization 37,642 39,351 Goodwill 25,483 25,483 Deferred federal income taxes - 2,161 Other assets 23,771 16,775 ------ ------ Total Assets $1,103,257 $943,653 ========== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Loss and loss adjustment expense reserves $448,265 $372,721 Unearned premium reserves 150,655 147,849 Long-term debt 67,013 67,013 Funds held under reinsurance treaties 67,093 49,419 Premiums payable to insurance companies 31,363 27,831 Reinsurance payable on paid losses 1,179 1,167 Deferred federal income taxes 14,504 - Accounts payable, accrued expenses, and other liabilities 15,713 16,016 ------ ------ Total Liabilities 795,785 682,016 ------- ------- Stockholders' Equity Common stock, $0.01 par value; authorized 100,000,000 shares; issued and outstanding 17,174,906 and 17,836,337 shares 172 178 Paid-in-capital 153,752 161,957 Accumulated other comprehensive income (loss) 16,306 (3,027) Retained earnings 139,090 103,028 Treasury stock; 130,600 and 33,600 shares (1,848) (499) ------ ---- Total Stockholders' Equity 307,472 261,637 ------- ------- Total Liabilities and Stockholders' Equity $1,103,257 $943,653 ========== ======== Book Value Per Share $17.90 $14.67 ====== ====== First Mercury Financial Corporation Summary Financial Data Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- (Dollars in thousands, except per share data) Gross Written Premiums: Security $14,991 $15,004 $43,835 $49,864 Specialty 30,053 33,566 90,887 111,000 Contract Underwriting 15,336 15,290 48,745 47,092 FM Emerald 13,024 11,294 43,613 25,268 Professional Liability 6,094 - 8,491 - Hospitality 99 - 99 - AUIC 2,211 1,845 6,537 4,895 ----- ----- ----- ----- Gross written premiums $81,808 $76,999 $242,207 $238,119 ======= ======= ======== ======== Net Written Premiums: Security $9,487 $10,405 $28,346 $35,985 Specialty 19,758 23,922 59,824 82,332 Contract Underwriting 8,555 7,929 32,166 27,276 FM Emerald 3,898 5,445 18,858 9,803 Professional Liability 2,349 - 3,794 - Hospitality 67 - 67 - AUIC 2,211 1,845 6,537 4,895 ----- ----- ----- ----- Net written premiums $46,325 $49,546 $149,592 $160,291 ======= ======= ======== ======== Commissions and Fees: Insurance underwriting commissions and fees $1,272 $(619) $3,989 $2,136 Insurance services commissions and fees 6,173 5,376 19,927 13,760 ----- ----- ------ ------ Total commissions and fees $7,445 $4,757 $23,916 $15,896 ====== ====== ======= ======= Cash and Cash Equivalents: Net cash provided by operating activities - continuing operations $7,531 $33,089 $66,606 $91,712 Net cash provided by (used in) operating activities - discontinued operations - (447) - 1,928 Net cash used in investing activities - continuing operations (11,507) (27,614) (72,513) (128,185) Net cash provided by investing activities - discontinued operations - - - 41,830 Net cash used in financing activities (3,393) (3,223) (9,721) (3,122) ------ ------ ------ ------ Net increase (decrease) in cash and cash equivalents $(7,369) $1,805 $(15,628) $4,163 ======= ====== ========= ====== Operating Net Income: (1) Net Income $15,645 $54 $35,936 $38,477 Adjust for Net realized gains and losses on investments, net of tax (8,948) 4,633 (16,383) 5,664 Adjust for Other-than-temporary impairment losses on investments, net of tax 190 2,260 277 2,406 Adjust for Change in fair value of derivative instruments, net of tax (111) (42) (261) 72 Adjust for Discontinued operations, net of tax - 447 - (23,106) --- --- --- ------- Operating net income $6,776 $7,352 $19,569 $23,513 ====== ====== ======= ======= Operating Net Income Per Share: (1) Diluted $0.39 $0.39 $1.09 $1.25 ===== ===== ===== ===== FOOTNOTES (1) See discussion of use of non-GAAP financial measures above.

First Mercury Financial Corporation

CONTACT: Edward A. LaFramboise, Vice President - Finance of First
Mercury Financial Corporation, +1-248-213-0406, elaframboise@firstmercury.com

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

Lockheed Martin Awarded $292 Million Contract to Provide Support for Pentagon NetworksCompany to support network infrastructure for the Information Technology Agency

ARLINGTON, Va., Nov. 2 /PRNewswire/ -- The Pentagon's network infrastructure will continue to receive top tier operations and maintenance support now with an award of a $292.7 million contract to Lockheed Martin by the U.S. Army Information Technology Agency (ITA).

Lockheed Martin will continue to provide network operations maintenance, management, and security support for all data networks within the Pentagon and the National Capital Region. The program provides constant, round-the-clock support through the Network Infrastructure Service Center.

"We're thrilled to continue to support the critical mission of the Pentagon by ensuring top quality, secure networks," said Ron Stefano, Vice President for Information Systems & Global Service-Defense. "It is truly a testament to the solid partnership our team has with our military customer. Their mission is our mission, and we are proud to support them."

In 2000, Lockheed Martin won a 10- year contract with the U.S. Army to serve as the Pentagon's Information Technology provider under the Information Technology Agency (ITA) contract. During this period a massive Pentagon renovation effort was under way, and Lockheed Martin was responsible for providing the IT infrastructure and network management from the customers wall plate all the way out to the networks.

On March 1, 2009, the Army awarded a sole source six month contract to Lockheed Martin to bridge the gap between the previous and current contracts, consolidating two separate existing contracts at the Pentagon - the Network Infrastructure Services Operation (NISO) and the Pentagon Primary Technical Control Facility contracts.

The program recently achieved International Organization for Standardization (ISO) 20000 certification for the ITA Enterprise Transport Management program, providing the customer with the satisfaction and advantage of a third party verification that Lockheed Martin uses the best IT practices in the world to support their mission.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 140,000 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

CONTACT: John O'Sullivan of Lockheed Martin, +1-301-623-4497,
john.r.o'sullivan@lmco.com

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

Providence Service Corporation Expects to Record Non-recurring Tax Benefit of $1.4 Million, or $0.11 Per Share, in Third Quarter 2009

TUCSON, Ariz., Nov. 2 /PRNewswire-FirstCall/ -- The Providence Service Corporation today announced that it expects to record an income tax benefit of approximately $1.4 million, or $0.11 per diluted share, in its third quarter ended September 30, 2009. The unanticipated, non-recurring tax benefit is primarily attributed to the recent true up of its 2008 income tax provision with the actual 2008 federal and state tax returns filed in 2009.

The tax benefit was not included in Company guidance issued on October 19, 2009 that anticipated diluted earnings per share for the quarter ended September 30, 2009 of $0.20 to $0.22 and earnings per diluted share of $1.37 to $1.41 for the full year.

For the fourth quarter of 2009, and for the year 2010, the Company anticipates a tax rate of approximately 40%.

About Providence

The Providence Service Corporation, through its owned and managed entities, provides home and community based social services and non-emergency transportation services management to government sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections. Providence does not own or operate beds, treatment facilities, hospitals or group homes, preferring to provide services in the client's own home or other community setting. The Company provides a range of services through its direct and managed entities to over 78,000 clients through 925 active contracts at June 30, 2009, with an estimated 6.7 million individuals eligible to receive the Company's non-emergency transportation services. Combined, the Company has a nearly $1 billion book of business including managed entities.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "demonstrate," "expect," "estimate," "anticipate," "should" and "likely" and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to the global credit crisis, capital market conditions, and other risks detailed in Providence's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2008. Providence is under no obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.

The Providence Service Corporation

CONTACT: Fletcher McCusker, Chairman and CEO, or Kate Blute, Director of
Investor and Public Relations, both of The Providence Service Corporation,
+1-520-747-6600; or Alison Ziegler of Cameron Associates, +1-212-554-5469, for
The Providence Service Corporation

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

Eaton Vance Limited Duration Income Fund Declares Increase in Monthly Distribution

BOSTON, Nov. 2 /PRNewswire-FirstCall/ -- Eaton Vance Limited Duration Income Fund (NYSE Amex: EVV), a closed-end management investment company, today declared a monthly distribution of $0.1158 per common share. As portfolio and market conditions change, the rate of future distributions may change. The distribution is expected to be paid on November 19, 2009, to shareholders of record on November 12, 2009. The ex-dividend date is November 9, 2009. The November distribution is an increase of $0.0075 per share, or 6.9%, from the October 2009 monthly distribution rate. The last change in the Fund's monthly distribution was in November 2008.

The increased monthly distribution reflects a rise in the Fund's net earnings rate. This is primarily due to a decrease in the Fund's cost of leverage coupled with an increased allocation to high yield corporates.

At this time the Fund believes that a portion of the November distribution may be comprised of amounts from sources other than net investment income. If that is the case, you will be notified in writing. Further information will be available prior to the payment date at http://individuals.eatonvance.com/. The final determination of tax characteristics of the Fund's distributions will occur after the end of the year, at which time it will be reported to the shareholders.

The Fund is managed by Eaton Vance Management, a subsidiary of Eaton Vance Corp. , based in Boston, one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $157.0 billion in assets as of September 30, 2009, offering individuals and institutions a broad array of investment products and wealth management solutions. The Company's long record of providing exemplary service and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors. For more information about Eaton Vance, visit http://www.eatonvance.com/.

Eaton Vance Management

CONTACT: Eaton Vance Management, Investors, +1-800-262-1122

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

Microfluidics International Corporation Announces Third Quarter 2009 Financial ResultsCompany Reports Net Income, Strong Demand by Vaccine Developers and Manufacturers

NEWTON, Mass., Nov. 2 /PRNewswire-FirstCall/ -- Microfluidics International Corporation (BULLETIN BOARD: MFLU) , today reported unaudited financial results for the third quarter ended September 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090811/NE59652LOGO ) Third quarter accomplishments: -- Earned net income for the third quarter of $425,000 -- Achieved $650,000 in earnings before interest, taxes, depreciation and amortization (EBITDA) -- Delivered strong bookings in the third quarter of $4.8 million and a backlog of $4.75 million as of September 30, 2009 -- Generated $4.5 million in revenue for the third quarter, a 27% increase over the same period in 2008

"I am pleased to report that the strategic plan we implemented a year ago has led us to our first profitable quarter since my joining the Company," said Michael C. Ferrara, Chief Executive Officer of Microfluidics. "We will continue to innovate with new products, increase international representative and distributor coverage, streamline costs and improve quality in support of our customers as we strive to carry this positive momentum through the second half of the year and into 2010."

"The initiatives and strong cost controls implemented in the first half of the year are yielding tangible results," said Peter Byczko, Vice President of Finance and Chief Accounting Officer. "Demand in our product line remains strong, especially within our core biopharmaceutical markets and customers are exhibiting increased interest in value-added services as they realize the importance of maximizing machine uptime and availability. We are pleased with our results and will continue to work to improve the financial position of the Company."

Third Quarter Financial Results:

Revenues for the three months ended September 30, 2009 were $4.5 million, an increase of $1.0 million, or 27%, as compared to revenues of $3.5 million for the three months ended September 30, 2008. North American revenues were $3.2 million, an increase of 63% as compared to $2.0 million in the third quarter of 2008. The increase in North America was offset by a 19% decrease in foreign sales from $1.5 million for the third quarter of 2008 to $1.3 million for the third quarter of 2009. Our gross margin increased to 66% in the third quarter of 2009. This increase is attributable to pricing actions taking effect and appropriately adjusting our pricing to cover additional services requested by our customers. Net income was $425,000, or $0.04 per diluted share, for the three months ended September 30, 2009 as compared to a net loss of $1.1 million, or $0.10 per diluted share, for the same period in 2008.

EBITDA was $650,000 for the three months ended September 30, 2009 compared with a $930,000 EBITDA loss for the same period in 2008. EBITDA is a Non-GAAP financial measure. A reconciliation of GAAP net income to Non-GAAP EBITDA is provided in the financial tables that accompany this release and is discussed under the section below titled "Non-GAAP Financial Measures."

Year to Date Financial Results:

Revenues for the nine months ended September 30, 2009 were $11.5 million, an increase of $83,000, or 1%, as compared to revenues of $11.4 million for the nine months ended September 30, 2008. Net loss was $442,000, or $0.04 per diluted share, for the nine months ended September 30, 2009 as compared to $2.3 million net loss, or $0.22 per diluted share, for the same period in 2008.

EBITDA was $230,000 for the nine months ended September 30, 2009 compared with $2.1 million EBITDA loss for the same period in 2008.

Live Webcast:

Microfluidics International Corporation will host a webcast on Monday, November 2, 2009 at 4:30 p.m. Eastern Time. Participants are invited to attend the call by visiting http://www.microfluidicscorp.com/ or by dialing 866-356-4281 (within the United States) or 617-597-5395 (outside the United States). The passcode for participants is 96732749.

A replay will be available approximately two hours after the live call through November 9, 2009. To access the replay, dial 888-286-8010 (within the United States) or 617-801-6888 (outside the United States). The passcode for participants is 69691770. A replay will also be posted on the Company's website approximately two hours after the live call and will be available for a period of 30 days.

About Microfluidics International Corporation

Microfluidics International Corporation designs, manufactures and distributes patented and proprietary high performance Microfluidizer® materials processing and formulation equipment to the biotechnology, pharmaceutical, chemical, cosmetics and inkjet ink industries. The Company applies its 20 plus years of high pressure processing experience to produce the most uniform and smallest liquid and suspended solid particles available and has provided manufacturing systems for nanoparticle products for more than 15 years.

Microfluidics is a leader in advanced materials processing equipment for laboratory, pilot scale and manufacturing applications, offering innovative technology and comprehensive solutions for nanoparticles and other materials processing and production. More than 3,000 systems are in use and afford significant competitive and economic advantages to the Company's equipment customers.

Non-GAAP Financial Measures:

In addition to the results reported in accordance with generally accepted accounting standards (GAAP) within this release, the Company may reference certain information that is considered a non-GAAP financial measure, including EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation, and amortization, excluding non-cash stock compensation expense recognized and severance payments. Management believes these measures are useful and relevant to management for operational planning and decision making purposes, and informative to investors in their analysis of the Company's underlying business and operating performance. Non-GAAP financial measures should not be considered a substitute for any GAAP measures. Additionally, non-GAAP measures as presented by the Company may not be comparable to similarly titled measures reported by other companies. A reconciliation of GAAP to non-GAAP financial information discussed in this release is contained in the attached exhibits.

Safe Harbor for Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they use words such as "anticipate," "believe," "estimate," "expect," "intend," "project," "plan," "outlook," and other words and terms of similar meaning. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: our ability to access sufficient working capital, including a new working capital line; our continued compliance with the representations, warranties and covenants under our existing convertible debenture; our continued history of losses, which includes net losses in three of the last five fiscal years; the timing and size of customer orders for our products; the adoption, timing and performance of new technology and products developed by us; changes and advances in technology that may make our products obsolete or reduce demand for our products; our ability to protect and maintain the confidentiality of our intellectual property; our ability to retain key employees and our reliance on a new management team; changes in governmental rules and regulations, including those regulating the exportation of goods; and general economic and business conditions and the financial crisis, including those adversely effecting the pharmaceutical and biotechnology industries. For a more detailed discussion of risks and uncertainties which could cause actual results to differ from those contained in our forward-looking statements, see Item 1A, "Risk Factors" of our most recently filed Quarterly Report on Form 10-Q for the quarter ended June 30, 2009 and our other periodic reports filed with the SEC. You should not place undue reliance on our forward-looking statements, which speak only as of the date they are made. We are providing this information as of this date, and we do not undertake to update the information included in this press release, whether as a result of new information, future events or otherwise.

--Financial Charts to Follow-- MICROFLUIDICS INTERNATIONAL CORPORATION Condensed Consolidated Balance Sheets (Unaudited - in thousands, except share and per share amounts) September 30, December 31, 2009 2008 ---- ---- ASSETS Current assets: Cash and cash equivalents $1,694 $1,895 Accounts receivable, net of allowance of $44 at both September 30, 2009 and December 31, 2008 2,582 2,181 Inventories 2,802 2,723 Prepaid and other current assets 338 320 --- --- Total current assets 7,416 7,119 Property and equipment, net 954 1,121 Other non-current assets 447 480 --- --- Total assets $8,817 $8,720 ====== ====== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $820 $986 Accrued expenses 1,140 1,233 Customer advances 1,039 436 ----- --- Total current liabilities 2,999 2,655 Long-term liabilities Convertible debt 4,666 4,625 ----- ----- Total liabilities 7,665 7,280 ----- ----- Stockholders' equity: Common stock; $.01 par value; 30,000,000 and 20,000,000 shares authorized; 10,622,728 and 10,592,228 shares issued; 10,387,282 and 10,356,782 shares outstanding as of September 30, 2009 and December 31, 2008, respectively. 106 106 Additional paid-in capital 18,196 18,042 Accumulated deficit (16,481) (16,039) Treasury stock, 235,446 shares, at cost, as of September 30, 2009 and December 31, 2008 (669) (669) ---- ---- Total stockholders' equity 1,152 1,440 ----- ----- Total liabilities and stockholders' equity $8,817 $8,720 ====== ====== MICROFLUIDICS INTERNATIONAL CORPORATION Condensed Consolidated Statements of Operations (Unaudited - in thousands, except share and per share amounts) For The Three Months Ended For The Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Revenues $4,462 $3,511 $11,490 $11,407 Cost of sales 1,533 1,708 4,679 5,542 Gross profit 2,929 1,803 6,811 5,865 Operating expenses: Research and development 418 569 1,263 1,631 Selling 995 1,199 3,123 3,327 General and administrative 965 1,057 2,491 3,174 Total operating expenses 2,378 2,825 6,877 8,132 Income (loss) from operations 551 (1,022) (66) (2,267) Interest expense (126) (39) (378) (50) Interest income - - 2 21 Net Income (loss) $425 $(1,061) $(442) $(2,296) Net loss per common share: Basic $0.04 $(0.10) $(0.04) $(0.22) Diluted $0.04 $(0.10) $(0.04) $(0.22) Weighted average number of common and common equivalent shares outstanding: Basic 10,387,282 10,299,938 10,376,949 10,278,633 Diluted 10,474,532 10,299,938 10,376,949 10,278,633 For The Three Months For The Nine Months Ended September 30, Ended September 30, --------------------- --------------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net income (loss) $425 $(1,061) $(442) $(2,297) Net interest expense (income) 126 39 378 29 Depreciation and amortization 96 91 291 174 -- -- --- --- EBITDA (Non-GAAP Measure) 647 (931) 227 (2,094) Severance - - 415 164 Non-cash compensation 56 63 144 171 -- -- --- --- Adjusted EBITDA $703 $(868) $786 $(1,759) ==== ===== ==== ======= Weighted average number of common and common equivalent shares outstanding: Basic: 10,387,282 10,299,938 10,376,949 10,278,633 Diluted: 10,474,532 10,299,938 10,376,949 10,278,633 EBITDA per common share (Non-GAAP Measure): Basic: $0.04 $(0.10) $(0.04) $(0.22) Diluted: $0.04 $(0.10) $(0.04) $(0.22)

Photo: http://www.newscom.com/cgi-bin/prnh/20090811/NE59652LOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Microfluidics International Corporation

CONTACT: Peter Byczko, Microfluidics International Corporation,
+1-617-969-5452 ext. 243

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

The Hanover Insurance Group Reports Third Quarter Net Income of $49.7 million, or $0.97 Per Share, Book Value Per Share Up 10% in the Quarter to $48.06

WORCESTER, Mass., Nov. 2 /PRNewswire-FirstCall/ --

Third Quarter 2009 Financial Highlights -- Net income of $49.7 million, or $0.97 per share, compared to a net loss of $61.8 million, or $1.21 per share in the third quarter of 2008. The third quarter of 2008 reflected substantial catastrophe losses from hurricanes Ike and Gustav, a high level of realized losses on investments, and a loss from the discontinued FAFLIC business -- Segment income after tax(1) of $45.3 million, or $0.89 per share, compared to $3.3 million, or $0.07 per share in the prior-year quarter -- Combined ratio of 97.6%, compared to 107.8% in the prior-year quarter; ex-catastrophe combined ratio(2) of 93.7%, compared to 92.0% in the prior-year quarter -- Net premiums written of $688.8 million, 5.7% higher than the prior-year quarter -- Book value per share increased to $48.06, an increase of 10% from June 30, 2009, and a 30% increase from year end 2008 -- As previously announced, The Hanover's Board of Directors approved a 67% increase in the company's annual shareholder dividend and increased its existing stock repurchase authorization by $100 million (Logo: http://www.newscom.com/cgi-bin/prnh/20051031/NEM023LOGO ) Financial Highlights $in millions, except per share amounts Quarter ended September 30 -------------------------------------- --------------- 2009 2008 ==== ==== Total Segment Income after taxes $45.3 $3.3 Federal income tax settlement - 6.4 Net realized investment losses - (52.8) Retirement of corporate debt 0.2 - Income tax benefit (expense) on non-segment income 3.1 (0.4) --- ----- Income (Loss) from Continuing Operations 48.6 (43.5) Discontinued Operations 1.1 (18.3) --- ------ Net Income (Loss) $49.7 $(61.8) ----- ------- Net Income (Loss) per share (Diluted)(3) $0.97 $(1.21) ======================================= ===== ====== (1) Segment income (pre-tax), segment income after-tax and segment income after-tax per share are non-GAAP measures. The reconciliation of these measures to the closest GAAP measure, income from continuing operations, is provided on page 12 of this press release. See "Non-GAAP financial measures", starting on page 9 of this press release. (2) Ex-catastrophe combined ratio is a non-GAAP measure. The closest GAAP measure is the combined ratio. See "Non-GAAP financial measures", starting on page 9 of this press release. (3) Per share data for the quarter ended September 30, 2008 represents basic loss per share due to anti-dilution.

The Hanover Insurance Group, Inc. today reported net income for the third quarter of 2009 of $49.7 million, or $0.97 per share, compared to a loss of $61.8 million, or $1.21 per share, in the third quarter of the prior year. The third quarter of 2008 included $52.8 million of realized losses on investments, or $1.04 per share, and a loss from discontinued operations of $18.3 million, or $0.36 per share. The third quarter of 2009 included $3.1 million, or $0.06 per share, of federal income tax benefit on non-segment income related to a release of a tax valuation allowance associated with realized investment losses recorded earlier in 2009.

Total Property and Casualty pre-tax segment income was $73.6 million in the third quarter of 2009, compared to $13.8 million in the third quarter of the prior year. The third quarter of 2009 included significantly lower pre-tax catastrophe losses of $24.7 million, compared to $98.2 million in the prior-year quarter. Excluding the pre-tax net impact of catastrophes, Property and Casualty pre-tax segment income would have been $98.3 million in the third quarter of 2009, compared to $112.0 million in the third quarter of 2008.

"Our core business continues to demonstrate strong fundamentals and we are pleased with the momentum we have in all of our strategic initiatives," said Frederick H. Eppinger, chief executive officer at The Hanover. "Our growth for the quarter of 6%, which was driven by our increasingly specialized commercial business, is ahead of industry averages and is notable given contractions in the economy. We also achieved growth in book value per share of 10% during the quarter."

"Our company is in excellent financial condition and our balance sheet is extremely strong, as underscored by our board of directors' decision two weeks ago to increase our common stock dividend by 67% and move to a quarterly dividend schedule next year. Our recent decision to increase our share repurchase authorization by $100 million also highlights the strength of our capital position."

The following table details pre-tax segment income (loss). $in millions, except per share amounts Quarter ended Year-to-date September 30 September 30 -------------------------------------- ------------- ------------ 2009 2008(1) 2009 2008 ---- ------ ---- ---- Personal Lines(2) $27.4 $18.1 $56.1 $83.8 Commercial Lines(3) 38.7 (6.6) 137.2 114.1 Other Property and Casualty 7.5 2.3 6.5 6.8 --- --- --- --- Total Property & Casualty 73.6 13.8 199.8 204.7 Interest expense on corporate debt (6.3) (10.0) (27.2) (29.9) ---- ----- ----- ----- Total pre-tax segment income 67.3 3.8 172.6 174.8 Federal income tax expense (22.0) (0.5) (56.9) (58.4) ----- ---- ----- ----- Total segment income after taxes (4) $45.3 $3.3 $115.7 $116.4 ----- ---- ------ ------ Per share(4) $0.89 $0.07 $2.25 $2.25 ========= ===== ===== ===== ===== (1) Per share data for the quarter ended September 30, 2008 represents basic loss per share due to anti-dilution. (2) Includes Personal Lines pre-tax net impact of catastrophes of $15.4 million and $39.7 million for the third quarters of 2009 and 2008, respectively. (3) Includes Commercial Lines pre-tax net impact of catastrophes of $9.3 million and $58.5 million for the third quarters of 2009 and 2008, respectively. (4) See reconciliation from segment income to net income (loss) at the end of this document.

The following table summarizes the components of the GAAP combined ratio for the Property and Casualty segment:

Quarter ended Year-to-date September 30 September 30 ------------- ------------ 2009 2008 2009 2008 ---- ---- ---- ---- Personal Lines losses (excluding catastrophes) 56.1% 54.1% 56.8% 54.5% Personal Lines catastrophe-related losses 4.2% 10.8% 5.9% 6.8% Total Personal Lines losses 60.3% 64.9% 62.7% 61.3% Commercial Lines losses (excluding catastrophes) 43.3% 44.1% 41.8% 38.0% Commercial Lines catastrophe-related losses 3.4% 23.2% 3.5% 10.7% Total Commercial Lines losses 46.7% 67.3% 45.3% 48.7% Total P&C Losses 53.0% 65.8% 54.8% 56.2% Loss adjustment expenses 10.3% 10.5% 9.7% 10.5% Policy acquisition and other underwriting expenses 34.3% 31.5% 33.9% 32.4% Combined Ratio 97.6% 107.8% 98.4% 99.1% Combined Ratio (excluding catastrophes) 93.7% 92.0% 93.5% 90.7% ========================= ==== ==== ==== ==== Personal Lines

Personal Lines pre-tax segment income was $27.4 million in the third quarter of 2009, compared to $18.1 million in the third quarter of 2008. The Personal Lines GAAP combined ratio was 100.2% in the current quarter, compared to 102.8% in the prior-year quarter. The pre-tax net impact of catastrophes was $15.4 million, or 4.2 points of the combined ratio in the third quarter of 2009, compared to $39.7 million, or 10.8 points in the third quarter of 2008. Excluding the pre-tax net impact of catastrophes, Personal Lines pre-tax segment income would have been $42.8 million in the current quarter, compared to $57.8 million in the prior-year quarter.

The year-over-year decline in ex-catastrophe earnings is primarily the result of higher expenses, lower favorable development of prior-year loss reserves, lower net investment income and an increase in our ex-catastrophe current accident year losses, driven by elevated non-catastrophe weather losses in our homeowners line.

Higher underwriting expenses were driven by continued investments in our Personal Lines business and higher pension expenses. The year-over-year comparison was also affected by a reduction of variable compensation expenses made in the third quarter of 2008.

Favorable development of prior-year loss and LAE reserves in the third quarter of 2009 was $11.0 million, or 3.0 points of the combined ratio, compared to $15.7 million, or 4.3 points in the prior-year quarter.

Net premiums written were $396.7 million in the third quarter of 2009, compared to $397.5 million in the third quarter of 2008. A reduction in the average written premium per policy, offset by improved pricing, drove the relatively flat year-over-year results. The lower average written premium per policy is primarily the result of planned changes in business mix toward more desirable account business.

Commercial Lines

Commercial Lines pre-tax segment income was $38.7 million in the third quarter of 2009, compared to a loss of $6.6 million in the third quarter of 2008. The Commercial Lines GAAP combined ratio was 97.8% in the third quarter of 2009, compared to 115.1% in the third quarter of 2008. Catastrophe related losses were $9.3 million or 3.4 points of the third quarter combined ratio in 2009, compared to $58.5 million, or 23.2 points in the prior-year quarter. Excluding the pre-tax net impact of catastrophes, Commercial Lines pre-tax segment income would have been $48.0 million in the third quarter of 2009, compared to $51.9 million in the prior-year quarter, primarily due to higher underwriting expenses, partially offset by lower ex-catastrophe accident year losses.

The higher expenses result from continued investments in our Commercial Lines businesses, including expenses related to recently acquired subsidiaries. As in Personal Lines, higher pension costs in the third quarter of 2009 and a reduction of variable compensation expenses in the third quarter of 2008 also negatively impacted the year-over-year expense comparison.

Accident year losses were lower in the third quarter compared to the prior-year quarter, attributable to lower commercial multi-peril lines large losses, which were partially offset by a moderate increase in the severity of losses in other lines of business, which we believe were driven by economic conditions.

Favorable development of prior-year loss and LAE reserves in the third quarter of 2009 was $21.3 million, or 7.8 points of the combined ratio, compared to $22.4 million, or 8.9 points in the prior-year quarter.

Net premiums written were $292.1 million in the third quarter of 2009, compared to $254.1 million in the third quarter of 2008. Growth in the company's specialty businesses, including AIX Holdings, Inc., which was acquired in November 2008, commercial niches, marine and Hanover Professionals accounted for the year-over-year growth in net written premium.

Other Property & Casualty

Other Property & Casualty's pre-tax segment income was $7.5 million in the third quarter of 2009, compared to $2.3 million in the prior-year quarter. The increase is attributable to favorable reserve development of $10.5 million from our run-off voluntary pools business, primarily as a result of a third party actuarial study. This was partially offset by higher pension expenses and lower net investment income due to a lower level of holding company invested assets.

Investment Results

Net investment income from continuing operations decreased by $3.4 million, to $62.1 million for the third quarter of 2009, compared to $65.5 million in the same period in 2008. This decrease is primarily due to our utilization of fixed maturities to fund the 2009 repurchase of corporate debt, which also resulted in a $3.7 million lower pre-tax interest expense during the quarter, compared to the same period in 2008.

In the third quarter of 2009, the company recognized impairment charges to earnings of $6.1 million on certain fixed maturity and equity securities, which were offset by pre-tax net investment gains of $6.1 million from sales of fixed maturity securities. In the third quarter of 2008, the company recognized impairments of $53.1 million on fixed maturity securities, partially offset by pre-tax net realized gains on sales of securities of $0.3 million.

Realized gains/(losses) related to continuing operations: --------------------------------------------- Quarter ended September 30, 2009 ($in millions) ------------- ------------- Net gains on sales of securities $6.1 -------------------------------- ---- Impairment charges to earnings: ------------------------------- Investment grade fixed maturities (1.7) --------------------------------- ---- Below investment grade fixed maturities (3.9) --------------------------------------- ---- Equity securities (0.5) ----------------- ---- Total net realized gains (losses) $- ================================ == Investment Portfolio

The Company held $5.3 billion in cash and investment assets at September 30, 2009, including cash and investment assets associated with the discontinued accident and health business.

Fixed maturities and cash with a carrying value of $5.2 billion represented 97% of our investment portfolio. Approximately 93% of our fixed maturity portfolio is rated investment grade. The following table provides information about the company's fixed maturity and other investments as of September 30, 2009:

$ in millions Investment Type Weighted Amortized Carrying Net Average Cost Value Unrealized Quality Gain (Loss) Corporates:(1) NAIC 1 A $902.1 $936.3 $34.2 NAIC 2 BBB 1,059.8 1,103.5 43.7 NAIC 3 or below B+ 298.2 294.6 (3.6) ----- ----- ---- Total Corporates BBB+ 2,260.1 2,334.4 74.3 MBS/CMBS/ABS: MBS AA+ 922.1 938.4 16.3 CMBS AA+ 336.7 337.8 1.1 ABS A- 67.3 70.1 2.8 Municipals: Taxable AA- 631.2 635.9 4.7 Tax Exempt A+ 204.8 208.2 3.4 U.S. Government AAA 385.8 388.6 2.8 ----- ----- --- Total Fixed Maturities A+ 4,808.0 4,913.4 105.4 Perpetual Preferred Securities 32.4 36.3 3.9 Common Equity Securities 77.4 85.7 8.3 ---- ---- --- Total fixed maturities and equity securities 4,917.8 5,035.4 117.6 Cash and cash equivalents 241.3 241.3 - Mortgage loans 20.4 20.4 - Other long-term investments 14.7 16.7 2.0 ---- ---- --- $5,194.2 $5,313.8 $119.6 ======== ======== ====== (1) NAIC 1 is generally equivalent to an investment grade rating agency designation of "A" or above; NAIC 2 is generally equivalent to an investment grade rating agency designation of "BBB"; and NAIC 3 or below is generally equivalent to an non-investment grade rating agency designation of "BB" or below. Book Value and Capital Management

The following exhibit provides a roll forward of book value for the quarter ended September 30, 2009:

Quarter Ended September 30, 2009 ================== $in millions, except per share $Amounts $Per Share ------------------------------ -------- ---------- Beginning of Period Book Value $2,221.1 $43.75 Net Income Continuing Operations 48.6 0.97 Discontinued Operations 1.1 0.02 Change in AOCI, net of tax Change in Pension and Postretirement Related Benefits 3.2 0.07 Change in Net Unrealized Investment Position 159.0 3.18 Shares repurchased at cost (1) (29.1) -- Common Stock Net Activity 3.2 0.07 --- ---- Ending of Period Book Value $2,407.1 $48.06 =========================== ======== ====== (1) Includes the per share effect of repurchases on beginning book value.

At September 30, 2009, book value per share was $48.06, a 10% increase from June 30, 2009.

During the third quarter 2009, the company repurchased approximately 725,000 of its common shares for $29.0 million. At the end of the quarter, the company had $103.7 million of capacity remaining under its recently expanded $200 million stock repurchase program.

As was announced on October 20, 2009, the company's Board of Directors declared an annual dividend of $0.75 per share, which represents an increase of 30 cents, or 67% from the dividend paid last year. The board also announced its intention to move to a quarterly dividend in 2010.

Additionally, as was announced on September 25, 2009, the company completed the process of refinancing a portion of the $211.6 million senior and subordinated debt that it had previously repurchased and retired, by drawing a loan from the Federal Home Loan Bank in the amount of $125.0 million at a fixed rate of 5.5% over a 20-year term.

Earnings Conference Call

The Hanover will host a conference call to discuss the company's third quarter results on Tuesday, November 3, at 10:00 a.m. Eastern Time. A PowerPoint slide presentation will accompany prepared remarks and has been posted on the company's Web site. Interested investors and others can listen to the call and access the presentation through The Hanover's Web site, located at http://www.hanover.com/. Web-cast participants should go to the Web site 15 minutes early to register, download, and install any necessary audio software. A re-broadcast of the conference call will be available on this Web site approximately two hours after the call.

Statistical Supplement

The Hanover's third quarter earnings news release and statistical supplement are available in the Investors section at http://www.hanover.com/.

Forward-Looking Statements and Non-GAAP Financial Measures Forward-looking statements

Certain statements in this release or in the above referenced conference call, may be forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Use of the words "believes," "anticipates," "expects," "projections," "outlook," "should," "could," "confident," "plan," "guidance," "on track to" and similar expressions is intended to identify forward-looking statements. The company cautions investors that any such forward-looking statements are estimates or projections which involve significant judgment and not guarantees of future performance, and actual results could differ materially. In particular, statements in the above referenced conference call regarding expectations for 2009, 2010 and beyond, including with respect to net written premium and policies in force growth, retention, new business growth, the ability to achieve rate increases, net investment income, the potential impact of capital actions and business investments, our financial strength, accident year loss ratios, the impact of product, account-based and geographic mix changes on future profitability, prior-year loss and loss adjustment expense reserve development from our continuing and run-off operations, segment income, expenses and expense ratios, effective tax rates, weighted shares outstanding and returns on equity are forward-looking statements. Statements regarding the possible impact of the current disruption in the credit markets and in the property and casualty industry, including the effect of current economic conditions on our business and investment portfolio, and with respect to the anticipated pricing environment, are also forward looking statements. Investors should consider the risks and uncertainties in our business and under current financial market conditions that may affect such estimates and future performance, including (i) the inherent difficulties in arriving at such estimates, particularly with respect to current accident year results and loss reserve development; (ii) the complexity of estimating losses from large catastrophe events or with respect to emerging issues such as "Chinese drywall" where circumstances may delay reporting of the existence, nature or extent of losses or where "demand surge," regulatory assessments, litigation, coverage and technical complexities or other factors may significantly impact the ultimate amount of such losses; (iii) the difficulties of estimating the impact of the current financial turmoil on the value of our investment portfolio and future investment income, including the amount of realized losses and impairments which will be recognized in future financial reports and our ability and intent to hold such investments until recovery; (iv) the uncertainties in current circumstances of future rating agency requirements, which could affect the company as well as the company's investment portfolio; and (v) the impact on our capital and liquidity of the current financial turmoil.

Investors are directed to consider the risks and uncertainties in the company's business that may affect future performance and that are discussed in readily available documents, including the company's annual report and other documents filed by The Hanover with the Securities and Exchange Commission and which are also available at http://www.hanover.com/ under "Investors." These uncertainties include the possibility of adverse catastrophe experiences (including terrorism) and severe weather, the uncertainty in estimating weather-related losses, the uncertainties in estimating property and casualty losses (particularly with respect to products with longer tails or involving emerging issues and with respect to losses incurred as the result of new lines of business), the possibility of adverse judicial decisions, including those which expand policy coverage beyond its intended scope, the ability to increase or maintain certain property and casualty insurance rates, the impact of new product introductions (such as our Management Liability products) and expansion in geographic areas, the impact of the company's acquisition of AIX Holdings, Inc., adverse loss development and adverse trends in mortality and morbidity and medical costs, changes in frequency and loss trends, the ability to improve renewal rates and increase new property and casualty policy counts, investment impairments (which may be affected by, among other things, our ability and willingness to hold investment assets until they recover in value), heightened competition (including increasing rate pressure, particularly in Commercial Lines), the continued deterioration of the economic environment, particularly in the state of Michigan, where the company has a significant portion of its business, adverse state and federal legislation or regulation or regulatory actions (including in the state of Michigan where the Governor announced efforts to freeze automobile rates and to initiate actions to reduce automobile insurance rates and to make them "affordable...fair...and equitable"), financial ratings actions, uncertainties in estimating FIN 45 liabilities recorded in conjunction with indemnity obligations undertaken in connection with the sale of various businesses, including our former life companies, and increased uncertainties in general economic conditions and in investment and financial markets, which, among other things, could result in increased impairments of fixed income investments or the inability to collect from reinsurers and the performance of the discontinued voluntary pools, including the inherent uncertainty regarding the types of claims in this pool and the uncertainty whether the reserves would be sufficient.

Non-GAAP financial measures

The Hanover uses non-GAAP financial measures as important measures of the Company's operating performance, including total segment income, segment income after tax, segment income after-tax per share, property and casualty segment income, and measures of segment income and loss ratios excluding catastrophe losses and reserve development.

Segment income (sometimes referred to as Property and Casualty segment income) is net income, excluding federal income taxes and net realized investment gains and losses, including gains or losses on certain derivative instruments, because fluctuations in these gains and losses are determined by interest rates, financial markets and the timing of sales. Segment income also excludes net gains and losses on disposals of businesses, discontinued operations, restructuring costs, extraordinary items, the cumulative effect of accounting changes and certain other items. Segment income is the sum of the segment income from: Personal Lines, Commercial Lines, and Other Property and Casualty. The Hanover believes that measures of total segment income provide investors with a valuable measure of the performance of the Company's ongoing businesses because they highlight net income attributable to the core operations of the business.

The Hanover also provides measures of segment income and loss ratios that exclude the effects of catastrophe losses. A catastrophe is a severe loss, resulting from natural or manmade events, including risks such as fire, hurricane, earthquake, windstorm, explosion, terrorism or other similar events. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or loss amount in advance. The Hanover believes that a discussion of the effect of catastrophes is meaningful for investors to understand the variability of periodic earnings and loss ratios.

Reserve development, which can be favorable or unfavorable, represents changes in our estimate of the costs to pay claims from prior years. We believe that a discussion of segment income excluding reserve development is helpful to investors since it provides some insight into our estimate of current year accident results.

Income from continuing operations is the most directly comparable GAAP measure for total segment income and measures of segment income that exclude the effects of catastrophe losses or reserve development. Segment income and measures of segment income that exclude the effects of catastrophe losses or reserve development should not be construed as substitutes for net income determined in accordance with GAAP. A reconciliation of income from continuing operations to segment income for the quarters ended September 30, 2009 and 2008 is set forth in the table at the end of this document and in the statistical supplement. Loss ratios calculated in accordance with GAAP are the most directly comparable GAAP measure for loss ratios calculated excluding the effects of catastrophe losses. The presentation of loss ratios calculated excluding the effects of catastrophe losses should not be construed as a substitute for loss ratios determined in accordance with GAAP.

The Hanover Insurance Group, Inc., based in Worcester, Mass., is the holding company for a group of insurers that includes The Hanover Insurance Company, also based in Worcester, Citizens Insurance Company of America, headquartered in Howell, Michigan, and their affiliates. The Hanover offers a wide range of property and casualty products and services to individuals, families and businesses through an extensive network of independent agents, and has been meeting its obligations to its agent partners and their customers for more than 150 years. Taken as a group, The Hanover ranks among the top 30 property and casualty insurers in the United States.

Contact Information Investors: Media: Oksana Lukasheva Michael F. Buckley E-mail: olukasheva@hanover.com E-mail: mibuckley@hanover.com 1-508-855-2063 1-508-855-3099 Definition of Reported Segments

Our continuing operations include three Property and Casualty operating segments: Personal Lines, Commercial Lines, and Other Property and Casualty. The Personal Lines segment markets automobile, homeowners and ancillary coverages to individuals and families. The Commercial Lines segment offers a suite of products targeted at the small to mid-size business markets, which include commercial multiple peril, commercial automobile, workers' compensation and other commercial coverages, such as fidelity and surety bonds, and inland marine. The Other Property and Casualty segment includes Opus Investment Management, Inc., which provides investment management services to institutions, pension funds and other organizations, as well as a block of run-off voluntary pools business, in which we have not actively participated since 1995.

THE HANOVER INSURANCE GROUP, INC. $in millions, except per share amounts Quarter ended -------------------------------------- September 30 ------------- 2009 2008 ---- ---- Net income (loss) $49.7 $(61.8) Net income (loss) per share (diluted)(1) $0.97 $(1.21) Weighted average shares(2) 51.2 51.0 ================================ ==== ==== (1) Per share data for the quarter ended September 30, 2008 represents basic loss per share due to anti-dilution. (2) Weighted average shares outstanding for the quarter ended September 30, 2008 represents basic shares outstanding due to anti-dilution.

The following is a reconciliation from segment income to net income (loss) (1):

Quarter ended September 30 $in millions, except per share 2009 2008 ---------------------------------- ------------------------- Per Per $ Share(3) $ Share(2) Property and Casualty Personal Lines $27.4 $-- $18.1 $-- Commercial Lines 38.7 -- (6.6) -- Other Property & Casualty 7.5 -- 2.3 -- --- --- Total Property and Casualty 73.6 -- 13.8 -- Interest expense on corporate debt (6.3) -- (10.0) -- ----- --- ----- --- Total segment income 67.3 1.32 3.8 0.08 Federal income tax expense on segment income (22.0) (0.43) (0.5) (0.01) ----- ----- ----- ----- Total segment income after federal income taxes 45.3 0.89 3.3 0.07 Federal income tax settlement -- -- 6.4 0.13 Net realized investment losses -- -- (52.8) (1.04) Gain on retirement of corporate debt 0.2 -- -- -- Federal income tax benefit (expense) on non-segment income 3.1 0.06 (0.4) (0.01) --- ---- ----- ----- Income (loss) from continuing operations, net of taxes 48.6 0.95 (43.5) (0.85) Gain (loss) from discontinued FAFLIC businesses (including loss on assets held-for-sale of $6.1 and $72.2 in 2008) 0.4 0.01 (21.7) (0.42) Gain (loss) from discontinued accident and health business 0.7 0.01 -- -- Income from operations of AMGRO (including gain on disposal of $11.1 in 2008) -- -- -- -- Gain on disposal of variable life and annuity business -- -- 2.7 0.05 Other -- -- 0.7 0.01 --- --- --- ---- Net income (loss)(4) $49.7 $0.97 $(61.8) $(1.21) ==================== ===== ===== ====== ====== Nine months ended September 30 $in millions, except per share 2009 2008 ---------------------------------- ------------------------- Per Per $ Share(3) $ Share(2) Property and Casualty Personal Lines $56.1 $-- $83.8 -- Commercial Lines 137.2 -- 114.1 -- Other Property & Casualty 6.5 -- 6.8 -- --- --- Total Property and Casualty 199.8 -- 204.7 -- Interest expense on corporate debt (27.2) -- (29.9) -- ------ --- ------ --- Total segment income 172.6 3.36 174.8 3.37 Federal income tax expense on segment income (56.9) (1.11) (58.4) (1.12) ------ ------ ------ ----- Total segment income after federal income taxes 115.7 2.25 116.4 2.25 Federal income tax settlement -- -- 6.4 0.12 Net realized investment losses (9.7) (0.19) (60.7) (1.17) Gain on retirement of corporate debt 34.5 0.67 -- -- Federal income tax benefit (expense) on non-segment income (8.6) (0.16) (0.4) (0.01) ----- ------ ----- ----- Income (loss) from continuing operations, net of taxes 131.9 2.57 61.7 1.19 Gain (loss) from discontinued FAFLIC businesses (including loss on assets held-for-sale of $6.1 and $72.2 in 2008) 6.3 0.12 (92.9) (1.80) Gain (loss) from discontinued accident and health business (2.4) (0.05) Income from operations of AMGRO (including gain on disposal of $11.1 in 2008) -- -- 10.1 0.20 Gain on disposal of variable life and annuity business 4.1 0.08 8.1 0.16 Other -- -- (0.5) (0.01) --- --- ----- ----- Net income (loss)(4) $139.9 $2.72 $(13.5) $(0.26) ==================== ====== ===== ======= ====== (1) In accordance with generally accepted accounting principles, the separate financial information of each segment is presented consistent with the way results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management evaluates the results of the aforementioned segments on a pre-tax basis. Segment income is determined by adjusting net income for net realized investment gains and losses because fluctuations in these gains and losses are determined by interest rates, financial markets and the timing of sales. Also, segment income excludes net gains and losses on disposals of businesses, discontinued operations, restructuring costs, extraordinary items, the cumulative effect of accounting changes and certain other items. (2) Per share data represents basic loss per share due to anti-dilution. (3) Per share data is per diluted share of common stock. (4) Per share data from the quarter ended September 30, 2008 represents basic loss per share due to anti-dilution. Basic income (loss) per share was $0.98 for quarter ended September 30, 2009, and $2.75 and $(0.26) for the nine months, 2009 and 2008, respectively.

Photo: http://www.newscom.com/cgi-bin/prnh/20051031/NEM023LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com The Hanover Insurance Group, Inc.

CONTACT: Investors, Oksana Lukasheva, +1-508-855-2063,
olukasheva@hanover.com, or Media, Michael F. Buckley, +1-508-855-3099,
mibuckley@hanover.com, both of The Hanover Insurance Group

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

LeapFrog Announces Third Quarter 2009 Financial ResultsCash Flow Improves Despite Decrease in Net Sales

EMERYVILLE, Calif., Nov. 2 /PRNewswire-FirstCall/ -- LeapFrog Enterprises, Inc. today announced financial results for the third quarter ended September 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090219/LFLOGO)

Net sales for the quarter were $111.9 million, down 42.5% compared to $194.6 million in the same quarter a year ago. Net sales were impacted by high retail inventory levels remaining from 2008 which have now reached levels substantially lower than a year ago.

Despite the decline in net sales, cash and cash equivalents were $29.5 million at September 30, 2009, an improvement of $5.9 million compared to $23.6 million a year ago. Gross margin for the quarter was 42.7%, compared to a gross margin of 43.8% a year ago. Operating expenses for the quarter were $38.7 million, down 30.8% compared to $55.9 million a year ago. Net income per share for the quarter was $0.11 per share, compared to net income per share of $0.38 a year ago.

Retail point-of-sale, or POS, dollars continue to be higher year over year and were up 2% for the 39-weeks ended October 3, 2009 compared to the 39-weeks ended October 4, 2008. (Please see Description of Retail Point-of-Sale Dollars below for an explanation of this operating metric.)

"Over the past nine months, our net sales declined substantially as we worked with our retail partners to bring down unusually high inventory levels from last year. We are pleased that current retail inventory levels are now over 30% lower than a year ago," said Jeffrey Katz, Chairman and Chief Executive Officer. "But in this tough environment, we have also grown retail point-of-sales dollars year over year, we have increased our market share, we have our lowest operating expenses since we went public in 2002, and we expect to see sales growth in the fourth quarter."

"We are also pleased to be starting to see early benefits from our Learning Path strategy which builds direct 'one-to-one' relationships with consumers. For example, POS and tie ratios of software for Tag, our first connected product, are well beyond what we experienced with the highly successful LeapPad at the same point in its lifecycle. We have over one million connected consumers today, and we have the capability to market to them directly in a personalized manner based on consumer information we have through the Learning Path. At the end of the holiday season, we expect to have substantially more connected consumers and to see earnings benefits grow further as a result," continued Mr. Katz.

Third Quarter 2009 Financial Results Net Sales

Net sales for the quarter were $111.9 million, down 42.5% compared to $194.6 million for the same quarter a year ago. Excluding the impact of currency fluctuations, the decline in net sales would have been 41.5%. Net sales were down year over year primarily as a result of fewer new platform launches, lower product shipments to retailers due to high retailer inventory levels at the end of 2008, and more conservative sales expectations for the holidays compared to the prior year.

Segment Results

Net sales from the United States segment for the quarter were $89.9 million, down 42.5% compared to $156.4 million a year ago. Net sales from the international segment were $22.0 million, down 42.3% compared to $38.2 million a year ago. Excluding the impact of currency fluctuations, the decline in international sales would have been 38.0%.

Gross Profit and Gross Margin

Gross profit for the quarter was $47.8 million, down 44.0% compared to $85.3 million a year ago as a result of lower sales in the quarter. Gross margin for the third quarter 2009 was 42.7% compared to 43.8% in the third quarter 2008. Gross margin declined year over year as a result of increased sales promotions and lower sales relative to a fixed cost base partially offset by lower warehousing and logistics costs and a higher margin product mix primarily due to a higher mix of reading product sales.

Operating Expenses

Operating expenses for the quarter were $38.7 million, down 30.8% compared to $55.9 million a year ago, an improvement of $17.2 million. Selling, general and administrative expenses were $21.7 million, down 20.1% from $27.2 million a year ago reflecting the impact of lower headcount. Research and development expenses were $7.4 million, down 36.8% from $11.7 million a year ago as a result of lower headcount and development costs. Advertising expenses were $7.1 million, down 51.3% from $14.6 million a year ago primarily due to less television advertising as LeapFrog shifted its strategy this year towards more retail trade promotions. Advertising expenses were 6.4% of net sales in the third quarter of 2009, compared to 7.5% in the third quarter of 2008.

Income from Operations

Income from operations for the quarter was $9.1 million, compared to $29.4 million a year ago.

Net Income

Net income for the quarter was $7.2 million, or $0.11 per share, compared to $24.1 million, or $0.38 per share, a year ago.

Financial Position

Cash and equivalents were $29.5 million at September 30, 2009, an increase of $5.9 million compared with $23.6 million at September 30, 2008. Inventories were $71.6 million at September 30, 2009, compared with $95.7 million at September 30, 2008. The company has no debt outstanding on its asset-backed line of credit.

"Financial results for the quarter were as we expected. Sales and earnings were down substantially year over year due to high beginning-of-year retail inventory levels, the weaker retail environment, and the timing of product launches compared to last year. Despite the significant sales decline and the promotional environment, our gross margin held fairly steady due to strong sales of software content and reading products and cost reductions. Operating expenses were down 31% as a result of us taking significant long-term costs out of the business and, as a result, we reported an operating profit of $9.1 million in the quarter. Most important, our cash balance increased $5.9 million compared to last year," said Bill Chiasson, Chief Financial Officer.

Guidance For the fourth quarter of 2009, we expect: -- Net sales to be between $155 million and $170 million, compared to $138 million in the fourth quarter of 2008 -- Gross margin to be between 40% and 45% -- Operating expenses to be down approximately 40% compared to the fourth quarter of 2008

"Looking to the fourth quarter of 2009, we expect sales and earnings growth, as well as gross margin expansion and a significant reduction in operating expenses, relative to the fourth quarter of 2008. We will continue our efforts to reduce costs and improve margins. We are looking to be breakeven on cash flow as of year-end or in January depending on the timing of collection of the receivables. When we enter next year, we believe that lean retail inventory levels together with our lower cost structure, leading brand, strong product portfolio and Learning Path strategy will position LeapFrog for profitable growth," said Bill Chiasson, Chief Financial Officer.

Conference Call and Webcast

LeapFrog will hold a conference call to discuss third quarter 2009 financial results today, November 2, 2009, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time).

The conference call will be webcast and can be accessed at LeapFrog's investor web site at http://www.leapfroginvestor.com/. To participate in the call, please dial (706) 634-0183 and request Conference ID 36222756. A replay of the call will be available for one month. To access the replay, please dial (706) 645-9291 and use conference ID 36222756.

Description of Retail Point-of-Sale Dollars

Retail point-of-sale dollars is a non-audited operating metric that represents a measure of U.S. retailers' sales of LeapFrog products to consumers. Retail point-of-sale dollars differs significantly from LeapFrog's reported net sales, which reflect all products sold by LeapFrog to its retailer customers in all markets and also includes other sources of revenue. The point-of-sale data is provided to LeapFrog by retailers. LeapFrog believes this represents approximately 95% of our U.S. retailers' dollar sales of LeapFrog products to consumers, based on historical shipments by us to such retailers. LeapFrog management uses point-of-sale data to evaluate the retail channel sales environment and develop net sales forecasts.

About LeapFrog

LeapFrog Enterprises, Inc. is a leading designer, developer, and marketer of innovative, technology-based learning products and related proprietary content, dedicated to making learning effective and engaging for all ages, at home and in schools, around the world. The company was founded in 1995 and is based in Emeryville, California. LeapFrog has developed a family of learning platforms that come to life with an extensive library of software titles covering important subjects such as phonics, reading, writing, math, music, geography, social studies, spelling, vocabulary and science. In addition, the company has created a broad line of stand-alone educational products for children. LeapFrog's award-winning products are available in four languages at major retailers in more than 44 countries around the world and in more than 100,000 classrooms across the United States. NOTE: LEAPFROG, the LeapFrog logo, TAG, and LEAPPAD are trademarks or registered trademarks of LeapFrog Enterprises, Inc.

Forward-Looking Statements

Cautionary Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements, including statements regarding: anticipated financial results, including net sales, consumer sales, inventory levels, gross margin, operating expenses, accounts receivable, collections and operating results; the timing of changes in economic conditions; consumer buying patterns and reactions to our marketing and products and services, including the number of connected customers we expect to have at the end of the holiday season; and the effects of our current strategies, products and services. These forward-looking statements involve risks and uncertainties, including risks related to the recession and its effect on retail business, overall consumer sentiment and trends relating to children's products and their effect on retailer buying behavior, the rates of acceptance by consumers of our web-based products and services, our ability to respond quickly to changes in demand for our products, and our ability to provide high-quality experiences to consumers with all of our products and services. These and other risks and uncertainties detailed from time to time in our SEC filings, including our 2008 annual report on Form 10-K filed on March 11, 2009, and our Form 10-Q filed on August 4, 2009, could cause the company's actual results to differ materially from those discussed in this release. All forward-looking statements are based on information available to the company on the date hereof, and the company assumes no obligation to update such statements.

Contact Information Investors: Media: Karen Sansot Mischa Dunton Investor Relations Corporate Communications (510) 420-4803 (510) 596-5441 LeapFrog Enterprises, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------- -------------------- 2009 2008 2009 2008 -------- -------- -------- -------- Net sales $111,906 $194,626 $191,197 $321,240 Cost of sales 64,119 109,300 116,583 187,896 ------ ------- ------- ------- Gross profit 47,787 85,326 74,614 133,344 Operating expenses: Selling, general and administrative 21,738 27,172 62,135 83,945 Research and development 7,387 11,688 26,900 36,674 Advertising 7,107 14,590 13,608 26,915 Depreciation and amortization 2,485 2,484 8,023 7,201 ----- ----- ----- ----- Total operating expenses 38,717 55,934 110,666 154,735 ------ ------ ------- ------- Income (Loss) from operations 9,070 29,392 (36,052) (21,391) Other income (expense): Interest income 108 246 456 2,047 Interest expense (4) (106) (30) (140) Other, net (864) (1,589) (1,632) (4,049) ----- ------- ------- ------- Total other expense (760) (1,449) (1,206) (2,142) ----- ------- ------- ------- Income (Loss) before income taxes 8,310 27,943 (37,258) (23,533) Provision for (Benefit from) income taxes 1,092 3,892 (5,138) 421 ----- ----- ------- --- Net income (loss) $7,218 $24,051 $(32,120) $(23,954) ====== ======= ======== ======== Net income (loss) per share: Class A and B - basic and diluted $0.11 $0.38 $(0.50) $(0.38) Weighted average shares outstanding: Class A and B - basic 64,106 63,683 63,873 63,589 Class A and B - diluted 64,262 63,923 63,873 63,589 LeapFrog Enterprises, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, --------------- --------------- 2009 2008 2009 2008 ---- ---- ---- ---- Operating activities: Net income (loss) $7,218 $24,051 $(32,120) $(23,954) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 4,652 6,358 14,820 15,614 Unrealized foreign exchange (gain) loss (100) 1,003 (1,668) 1,826 Deferred income taxes (6,362) 406 (6,236) 330 Stock-based compensation expense 2,982 2,903 8,554 8,015 Impairment of investment in auction rate securities 403 1,091 426 2,822 Loss on disposal of long-term assets 1,130 -- 1,130 41 Allowance for doubtful accounts 93 373 (1,356) 942 Other changes in operating assets and liabilities: Accounts receivable, net (58,902) (111,583) 35 (36,096) Inventories (8,254) (11,356) (13,812) (45,918) Prepaid expenses and other current assets 767 11,788 1,005 7,079 Other assets (1,640) 192 (1,434) 502 Accounts payable 27,682 21,164 2,975 31,358 Accrued liabilities 5,007 13,834 (13,225) (13,123) Long-term liabilities 5,365 1,870 (964) 531 Income taxes payable 764 69 400 94 Other (53) (1,764) 1,648 (1,826) --- ------ ----- ------ Net cash used in operating activities (19,248) (39,601) (39,822) (51,763) Investing activities: Purchases of property and equipment (1,373) (3,438) (4,095) (7,483) Capitalization of product costs (2,116) (1,231) (5,628) (9,777) Other long-term assets (235) -- (235) -- ---- ---- ---- ---- Net cash used in investing activities (3,724) (4,669) (9,958) (17,260) Financing activities: Proceeds from stock option exercises and employee stock purchase plans 36 204 77 623 Net cash paid for payroll taxes on restricted stock unit releases (184) (337) (263) (731) ---- ---- ---- ---- Net cash (used in) provided by financing activities (148) (133) (186) (108) Effect of exchange rate changes on cash (176) (261) 402 (685) ---- ---- --- ---- Net change in cash and cash equivalents (23,296) (44,664) (49,564) (69,816) Cash and cash equivalents, beginning of period 52,833 68,308 79,101 93,460 ------ ------ ------ ------ Cash and cash equivalents, end of period $29,537 $23,644 $29,537 $23,644 ======= ======= ======= ======= LeapFrog Enterprises, Inc. Consolidated Balance Sheets (In thousands) (Unaudited) September 30, December 31, ----------------------- ------------ 2009 2008 2008 ---- ---- ---- (Audited) Assets Current assets: Cash and cash equivalents $29,537 $23,644 $79,101 Accounts receivable, net of allowances for doubtful accounts of $1,389, $588 and $3,872 92,323 160,192 89,918 Inventories 71,570 95,732 56,937 Prepaid expenses and other current assets 9,948 13,121 10,822 Deferred income taxes 3,182 3,072 3,189 ----- ----- ----- Total current assets 206,560 295,761 239,967 Long-term investments 5,000 8,701 4,962 Deferred income taxes 511 216 497 Property and equipment, net 14,396 19,202 19,611 Capitalized product costs, net 15,083 17,133 16,227 Goodwill 19,549 19,549 19,549 Other assets 6,478 7,901 5,260 ----- ----- ----- Total assets $267,577 $368,463 $306,073 ======== ======== ======== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $58,678 $76,001 $55,098 Accrued liabilities 31,128 43,839 44,596 Income taxes payable 629 187 229 --- --- --- Total current liabilities 90,435 120,027 99,923 Long-term deferred income taxes 14,442 20,868 22,404 Other long-term liabilities 2,562 2,156 3,820 Stockholders' equity: Class A Common Stock - par value $0.0001 Authorized: 139,500 shares; Issued and Outstanding: 36,881, 36,141 and 36,627 4 4 4 Class B Common Stock - par value $0.0001 Authorized: 40,500 shares Issued and Outstanding: 27,141, 27,614 and 27,141 3 3 3 Treasury stock (185) (185) (185) Additional paid-in capital 375,205 361,763 364,657 Accumulated other comprehensive income (loss) (271) 2,023 (2,055) Accumulated deficit (214,618) (138,196) (182,498) -------- -------- -------- Total stockholders' equity 160,138 225,412 179,926 ------- ------- ------- Total liabilities and stockholders' equity $267,577 $368,463 $306,073 ======== ======== ======== LeapFrog Enterprises, Inc. Supplemental Financial Information (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net sales $111,906 $194,626 $191,197 $321,240 Cost of sales (1) 64,119 109,300 116,583 187,896 ------ ------- ------- ------- Gross profit 47,787 85,326 74,614 133,344 Operating expenses: (2)(3) Selling, general and administrative 21,738 27,172 62,135 83,945 Research and development 7,387 11,688 26,900 36,674 Advertising 7,107 14,590 13,608 26,915 Depreciation and amortization 2,485 2,484 8,023 7,201 ----- ----- ----- ----- Total operating expenses 38,717 55,934 110,666 154,735 ------ ------ ------- ------- Income (Loss) from operations 9,070 29,392 (36,052) (21,391) Other income (expense): Interest income 108 246 456 2,047 Interest expense (4) (106) (30) (140) Other, net (4) (864) (1,589) (1,632) (4,049) ---- ------ ------ ------ Total other expense (760) (1,449) (1,206) (2,142) ---- ------ ------ ------ Income (Loss) before income taxes 8,310 27,943 (37,258) (23,533) Provision for (Benefit from) income taxes 1,092 3,892 (5,138) 421 ----- ----- ------ --- Net income (loss) $7,218 $24,051 $(32,120) $(23,954) ====== ======= ======== ======== (1) Includes depreciation and amortization 2,167 3,874 6,797 8,413 (2) Includes stock-based compensation as follows: Selling, general and administrative 2,601 2,367 7,455 6,887 Research and development 381 536 1,100 1,128 (3) Includes severance costs as follows: Selling, general and administrative (50) 564 779 1,010 Research and development 22 116 539 130 (4) Includes impairment of auction rate securities 403 1,091 426 2,823

Photo: http://www.newscom.com/cgi-bin/prnh/20090219/LFLOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com LeapFrog Enterprises, Inc.

CONTACT: Investors, Karen Sansot, Investor Relations, +1-510-420-4803,
or Media, Mischa Dunton, Corporate Communications, +1-510-596-5441, both of
LeapFrog Enterprises, Inc.

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

Meadowbrook Insurance Group, Inc. Reports Third Quarter Results

SOUTHFIELD, Mich., Nov. 2 /PRNewswire-FirstCall/ --

-- Net operating income up 6.9% to $11.7 million, or $0.20 per diluted share -- Net income up 162.5% to $11.0 million, or $0.19 per diluted share -- Combined Ratio of 95.3% -- Gross Written Premium up 40.6% -- Book Value per share of $8.91, up 16.6% year to date -- Increased quarterly dividend to $0.03 per share Third Quarter 2009 Highlights and Overview: -- Net operating income, a non-GAAP measure, increased 6.9% to $11.7 million, or $0.20 per diluted share on 57.6 million shares, in the third quarter of 2009 compared to $10.9 million, or $0.23 per diluted share on 47.6 million shares, in the third quarter of 2008. -- Net income increased $6.8 million to $11.0 million, or $0.19 per diluted share, in the third quarter of 2009 compared to $4.2 million, or $0.09 per diluted share for the third quarter of 2008. -- The combined ratio was 95.3% in the third quarter of 2009, compared to 96.7% for the third quarter of 2008. -- Book value per share increased by 16.6% year to date to $8.91 per share compared to $7.64 per share at December 31, 2008. Unrealized gains, net of tax, increased book value by $0.68 per share since December 31, 2008. -- Increased quarterly dividend by $0.01 per share to $0.03 per share. September 30, 2009 Year to Date Highlights: -- 2009 year to date net operating income, a non-GAAP measure, increased 50.5% to $40.0 million, or $0.69 per diluted share on 57.5 million shares, compared to $26.5 million, or $0.65 per diluted share on 40.7 million shares, for the same period in 2008. -- 2009 year to date net income increased 83.9% to $36.2 million, or $0.63 per diluted share, compared to $19.7 million, or $0.48 per diluted share for the same period in 2008. -- The 2009 year to date combined ratio improved to 91.9% compared to 94.0% for the same period in 2008. -- Gross written premiums for the first nine months of 2009 grew by 58.5% to $505.9 million compared to $319.3 for the period ended September 30, 2008.

Meadowbrook Insurance Group, Inc. reported that third quarter net operating income, a non-GAAP measure, grew by 6.9% to $11.7 million, or $0.20 per diluted share, compared to $10.9 million, or $0.23 per diluted share in the third quarter of 2008. Net income increased $6.8 million to $11.0 million, or $0.19 per diluted share in the third quarter of 2009 compared to $4.2 million, or $0.09 per diluted share in the third quarter of 2008. Third quarter 2009 net income includes after-tax losses of $3.7 million related to isolated hail and tornado storm losses and one large fire loss. Third quarter 2008 net income included the after-tax impact of $5.4 million in losses related to Hurricanes Gustav and Ike and a $6.7 million after-tax realized loss primarily due to the other than temporary impairments of Freddie Mac, Fannie Mae and Lehman Brothers preferred stock.

The third quarter 2009 GAAP combined ratio was 95.3%, compared to 96.7% for the third quarter of 2008. The loss ratio for the third quarter of 2009 was 64.5% compared to 65.7% for the third quarter of 2008. The third quarter 2009 loss ratio includes 4.5 percentage points of favorable prior year reserve development, compared to 5.5 percentage points of favorable prior year reserve development in the third quarter of 2008. The expense ratio for the third quarter of 2009 was 30.8% compared to 31.0% for the third quarter of 2008.

Third quarter 2009 gross written premium increased 40.6% to $189.0 million compared to $134.4 million in the third quarter of 2008. The increase in gross written premium in the third quarter of 2009 was primarily due to programs we initiated in 2008 and 2009. Additionally, third quarter 2009 gross written premiums include the full three months of premium from Century, but due to the timing of the merger in 2008, only two months of Century's premium are included for the third quarter of 2008.

Net commission and fee revenue for the third quarter of 2009 declined as expected to $10.8 million compared to $12.3 million in the third quarter of 2008. The decline was primarily the result of lower premium volume due to mandatory rate reductions and competition. Additionally, a program for which we previously provided policy administration services decided to perform those functions in-house.

Commenting on the results, Meadowbrook President and Chief Executive Officer Robert S. Cubbin stated: "While pricing remains adequate, we continue to see selective growth and as a result we are positioned to achieve results at the high end of the range we previously set of $46 million to $52 million of net operating income for 2009. This generates operating EPS at around $0.90 per share. Growth in gross written premium was 40.6% for the quarter, due primarily to select new programs that we implemented during 2008 and 2009. These program opportunities demonstrate our capability to grow in a manner that leverages our regional underwriting expertise with programs that have a history of underwriting profitability. Excluding the premium from the Century acquisition, our gross written premium grew by 36.2% during the third quarter and 18.6% on a year to date basis. In the context of our historically good operating results, our strong capital position and our expectations for the future, we increased our dividend by $0.01 per share in the third quarter to $0.03 per share. Also during the third quarter, we repurchased 300,000 shares, and given our current book value and share price, opportunities may emerge where we may be more active in the share repurchase market."

Year to Date September 30, 2009 Overview

Net operating income for the nine months ended September 30, 2009 increased 50.5% to $40.0 million, or $0.69 per diluted share on 57.5 million shares, compared to $26.5 million, or $0.65 per diluted share on 40.7 million shares for the same period in 2008. Net income for the first nine months of 2009 increased 83.9% to $36.2 million or $0.63 per share compared to $19.7 million or $0.48 per share for the same period in 2008. Our year to date results for 2009, include $3.3 million of other than temporary impairment charges on our investment portfolio compared to $7.6 million in other than temporary impairment charges for the first nine months of 2008. For the first nine months of 2009, pre-tax fee-for-service income, excluding amortization, declined by 72.0% to $2.7 million from $9.7 million for the nine months ended September 30, 2008.

For the nine months ended September 30, 2009, gross written premiums increased $186.6 million, or 58.5%, to $505.9 million compared to $319.3 million for the same period last year. Excluding Century Insurance Group premium, gross written premium grew by 18.6% for the comparative nine month period.

Our year to date GAAP combined ratio for 2009 improved to 91.9% compared to 94.0% for the year to date period ended September 30, 2008. The loss ratio for the nine months ended September 30, 2009 was 60.7% compared to 63.2% for the same period in 2008. The expense ratio for the nine months ended September 30, 2009 was 31.2% compared to 30.8% for same period in 2008. The year to date 2009 combined ratio includes 5.3 points of favorable prior year development compared to 4.6 points of favorable prior year development for year to date 2008.

Other Matters Shareholders' Equity:

At September 30, 2009, shareholders' equity was $509.3 million, or $8.91 per common share compared to $438.2 million, or $7.64 per common share, at December 31, 2008. The book value increase of 16.6% includes unrealized gains from our investment portfolio of $0.68 per share since December 31, 2008.

At September 30, 2009, our debt-to-equity ratio was 26.2% compared to 32.2% at December 31, 2008. Our debt to equity ratio excluding debentures was 10.3% at September 30, 2009 compared to 13.8% at December 31, 2008.

Dividend and Share Repurchases:

On October 30, 2009, our Board of Directors declared a quarterly dividend of $0.03 per share payable on November 30, 2009 to shareholders of record as of November 13, 2009, up from $0.02 per share in the prior quarter.

We repurchased 300,000 shares during the third quarter of 2009 at $7.72 per share. As of September 30, 2009, we have available up to 1,900,000 shares remaining under our current share repurchase plan.

Investment Portfolio:

At September 30, 2009 our pre-tax book yield was 4.6%. The duration of the portfolio was 4.5 years at September 30, 2009, compared to 4.5 years at September 30, 2008. The year to date average reinvestment yield is 5.0% and the average pre-tax book yield on new purchases during the third quarter of 2009 was 4.4%.

Net investment income for the third quarter of 2009 was $12.8 million, up from $10.6 million in the third quarter of 2008. For the nine months ended September 30, 2009 net investment income was $37.5 million compared to $24.7 million for the same period in 2008. The increases in net investment income for the quarter and year to date periods are primarily related to investment income from the Century Insurance portfolio.

2009 and 2010 Expectations

Our 2009 annualized outlook for gross written premium and net operating income has not changed. We continue to expect gross written premium in a range of $695.0 million to $715.0 million and net operating income at the higher end of a range of $46.0 million to $52.0 million, or $0.80 to $0.90 per share.

For 2010, we expect net operating income to be in a range of $48.5 million to $54.5 million. We expect gross written premium in a range of $790 million to $815 million, and the combined ratio should be in a range of 95.5% to 96.5%. Achieving results within these ranges would result in net operating income in a range of $0.85 to $0.95 per share.

Commenting on the 2010 outlook, Mr. Cubbin stated: "As our new program initiatives from 2008 and 2009 continue to develop and gain traction, we expect that we can continue to grow profitably while maintaining price adequacy. We expect the market to remain competitive and somewhat unpredictable into 2010. While our guidance range for 2010 is rather wide at this point, we expect to be in a better position to narrow the range as we complete 2009 and begin 2010."

Conference Call

Meadowbrook's 2009 third quarter and year to date results will be discussed by management in more detail on Tuesday, November 3, 2009 at 9:00 a.m. Eastern Time.

To listen to the call, please dial 1-877-407-0782 approximately five minutes prior to the start of the call and ask for the Meadowbrook conference call. Additionally, the conference call will be broadcast live over the Internet and can be accessed by all interested parties via the investor relations section of our website at http://www.meadowbrook.com/ or http://www.investorcalendar.com/.

For those who cannot listen to the live conference call, a replay of the call will be available through Tuesday November 10, 2009 by dialing 1-877-660-6853 and referring to conference ID 335080 and account number 286. The webcast will be archived and available for replay through Wednesday, March 3, 2010.

About Meadowbrook Insurance Group

Meadowbrook Insurance Group, Inc., based in Southfield, Michigan, is a leader in the specialty program management market. Meadowbrook includes several agencies, claims and loss prevention facilities, self-insured management organizations and seven property and casualty insurance underwriting companies, including one in Bermuda. Meadowbrook has twenty-six locations in the United States. Meadowbrook is a risk management organization, specializing in specialty risk management solutions for agents, professional and trade associations, and small to medium-sized insureds. Meadowbrook Insurance Group, Inc. common shares are listed on the New York Stock Exchange under the symbol "MIG". For further information, please visit Meadowbrook's corporate web site at http://www.meadowbrook.com/.

Certain statements made by Meadowbrook Insurance Group, Inc. in this release may constitute forward-looking statements including, but not limited to, those statements that include the words "believes," "expects," "anticipates," "estimates," or similar expressions. Please refer to the Company's most recent 10-K, 10-Q, and other Securities and Exchange Commission filings for more information on risk factors. Actual results could differ materially. These forward-looking statements involve risks and uncertainties including, but not limited to the following: the frequency and severity of claims; uncertainties inherent in reserve estimates; catastrophic events; a change in the demand for, pricing of, availability or collectability of reinsurance; increased rate pressure on premiums; obtainment of certain rate increases in current market conditions; investment rate of return; changes in and adherence to insurance regulation; actions taken by regulators, rating agencies or lenders; obtainment of certain processing efficiencies; changing rates of inflation; and general economic conditions. Meadowbrook is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

MEADOWBROOK INSURANCE GROUP, INC. FINANCIAL INFORMATION SUPPLEMENT TO THE EARNINGS RELEASE UNAUDITED BALANCE SHEET INFORMATION SEPTEMBER DECEMBER 30, 31, (In Thousands, Except Per Share Data) 2009 2008 ------------------------------------- ----------- ----------- BALANCE SHEET DATA ASSETS Cash and invested assets $1,186,585 $1,085,648 Premium & agents balances 146,083 117,675 Reinsurance recoverable 273,065 268,703 Deferred policy acquisition costs 65,879 56,454 Prepaid reinsurance premiums 33,408 31,885 Goodwill 118,842 119,028 Other assets 130,152 134,523 ----------- ----------- Total Assets $1,954,014 $1,813,916 =========== =========== LIABILITIES Loss and loss adjustment expense reserves $924,227 $885,697 Unearned premium reserves 316,777 282,086 Debt 52,688 60,250 Debentures 80,930 80,930 Other liabilities 70,108 66,783 ----------- ----------- Total Liabilities 1,444,730 1,375,746 STOCKHOLDERS' EQUITY Common stockholders' equity 509,284 438,170 ----------- ----------- Total Liabilities & Stockholders' Equity $1,954,014 $1,813,916 =========== =========== Book value per common share $8.91 $7.64 Book value per common share excluding unrealized gain/loss, net of deferred taxes $8.29 $7.70 MEADOWBROOK INSURANCE GROUP, INC. FINANCIAL INFORMATION SUPPLEMENT TO THE EARNINGS RELEASE UNAUDITED INCOME STATEMENT INFORMATION (In Thousands, Except Share & Per Share Data FOR THE QUARTER FOR THE NINE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, SUMMARY DATA 2009 2008 2009 2008 ------------ ---- ---- ---- ---- Gross written premiums $188,985 $134,418 $505,867 $319,256 Net written premiums 158,705 112,465 426,745 259,935 REVENUES Net earned premiums $137,399 $104,243 $393,577 $247,296 Net commissions and fees 10,753 12,309 29,386 33,972 Net investment income 12,764 10,622 37,503 24,687 Net realized losses (742) (7,290) (3,692) (7,467) Total Revenues 160,174 119,884 456,774 298,488 EXPENSES Net losses & loss adjustment expenses (1) 83,553 63,932 223,804 145,135 Salaries & employee Benefits 19,629 17,056 59,401 43,954 Interest expense 2,620 2,333 8,061 4,898 Policy acquisition and other underwriting expenses (1) 28,824 19,470 79,932 45,333 Amortization expense 1,422 1,531 4,350 4,645 Other administrative expenses 9,013 8,055 29,323 24,847 ----- ----- ------ ------ Total Expenses 145,061 112,377 404,871 268,812 INCOME BEFORE INCOME TAXES AND EQUITY EARNINGS 15,113 7,509 51,903 29,676 Income tax expense 4,167 3,338 15,868 10,128 Equity earnings of affiliates 73 26 169 143 -- -- --- --- NET INCOME $11,019 $4,197 $36,204 $19,691 ======= ====== ======= ======= NET OPERATING INCOME (2) $11,688 $10,938 $39,956 $26,549 ======= ======= ======= ======= Amortization expense 1,422 1,531 4,350 4,645 NET OPERATING INCOME, excluding amortization expense (3) $13,110 $12,469 $44,306 $31,194 ======= ======= ======= ======= Diluted earnings per common share Net income $0.19 $0.09 $0.63 $0.48 Net operating income $0.20 $0.23 $0.69 $0.65 Net operating income, excluding amortization expense $0.23 $0.26 $0.77 $0.77 Diluted weighted average common shares outstanding 57,563,263 47,595,572 57,531,391 40,657,894 GAAP ratios: Loss & LAE ratio 64.5% 65.7% 60.7% 63.2% Other underwriting expense ratio 30.8% 31.0% 31.2% 30.8% ---- ---- ---- ---- GAAP combined ratio 95.3% 96.7% 91.9% 94.0% ==== ==== ==== ==== (1) Both the loss and loss adjustment and expense ratios are calculated based upon the unconsolidated insurance company operations. The following supplemental information sets forth the intercompany fees, which are eliminated upon consolidation. (2) While net operating income is a non-GAAP disclosure, management believes this information is beneficial to reviewing the financial statements. Net operating income is net income less realized gains (losses) net of taxes associated with such gains (losses). (3) While net operating income, excluding amortization expense, is a non- GAAP disclosure, management believes this information is beneficial to reviewing the financial statements. Management believes this information is beneficial as amortization expense reflects an interim non-cash charge and in the long-term cash earnings will reflect GAAP earnings as we complete the amortization periods associated with current acquisitions. Net operating income, excluding amortization expense, is net income less realized gains (losses) net of taxes associated with such gains (losses) and less amortization expense. MEADOWBROOK INSURANCE GROUP, INC. FINANCIAL INFORMATION SUPPLEMENT TO THE EARNINGS RELEASE UNAUDITED UNCONSOLIDATED GAAP DATA FOR THE QUARTER FOR THE NINE ENDED MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, (In Thousands) 2009 2008 2009 2008 ---- ---- ---- ---- Unconsolidated GAAP data - Ratio Calculation Table: Net earned premiums $137,399 $104,243 $393,577 $247,296 Consolidated net loss and LAE (1) $83,553 $63,932 $223,804 $145,135 Intercompany claim fees 5,049 4,508 15,152 11,243 ----- ----- ------ ------ Unconsolidated net loss and LAE $88,602 $68,440 $238,956 $156,378 ======= ======= ======== ======== GAAP loss and LAE ratio 64.5% 65.7% 60.7% 63.2% Consolidated policy acquisition and other underwriting expenses (1) $28,824 $19,537 $79,932 $45,400 Intercompany administrative and other underwriting fees 13,428 12,821 42,995 30,741 ------ ------ ------ ------ Unconsolidated policy acquisition and other underwriting expenses $42,252 $32,358 $122,927 $76,141 ======= ======= ======== ======= GAAP other underwriting expense ratio 30.8% 31.0% 31.2% 30.8% GAAP combined ratio 95.3% 96.7% 91.9% 94.0% ---- ---- ---- ---- 2009 2008 2009 2008 ---- ---- ---- ---- Unconsolidated GAAP data -Gross Commissions and Fees: Managed programs: Management fees $6,142 $6,972 $15,241 $17,178 Claims fees 1,802 2,304 5,774 6,789 Loss control fees 493 467 1,502 1,602 Reinsurance Brokerage 333 177 488 571 --- --- --- --- Total managed programs 8,770 9,920 23,005 26,140 Agency commissions 2,031 2,631 6,996 8,640 Intersegment revenue (48) (241) (615) (807) --- ---- ---- ---- Net commissions and fees 10,753 12,310 29,386 33,973 Intercompany commissions and fees 18,477 17,329 58,147 41,984 ------ ------ ------ ------ Gross commissions and fees $29,230 $29,639 $87,533 $75,957 ======= ======= ======= ======= Fee-for-service pre-tax income, excluding amortization $1,506 $5,471 $2,719 $9,717 ====== ====== ====== ====== Pre-tax margin on fee-for-service income 5.2% 18.5% 3.1% 12.8% (1) Both the loss and loss adjustment and expense ratios are calculated based upon the unconsolidated insurance company operations. The above table sets forth the intercompany fees, which are eliminated in consolidation. The GAAP combined ratio is the sum of the GAAP loss and loss adjustment expense ratio and the GAAP expense ratio. The GAAP loss and loss adjustment expense ratio is the unconsolidated net loss and loss adjustment expense in relation to net earned premium. The GAAP expense ratio is the unconsolidated policy acquisition and other underwriting expenses in relation to net earned premium. MEADOWBROOK INSURANCE GROUP, INC. FINANCIAL INFORMATION SUPPLEMENT TO THE EARNINGS RELEASE UNAUDITED ADJUSTED GAAP EXPENSE RATIO SUMMARY FOR THE QUARTER FOR THE NINE ENDED MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, (In Thousands) 2009 2008 2009 2008 ---- ---- ---- ---- Net earned premiums $137,399 $104,243 $393,577 $247,296 Less: Unconsolidated net loss and LAE 88,602 68,440 238,956 156,378 Unconsolidated policy acquisition and other underwriting expenses 42,252 32,358 122,927 76,141 ------ ------ ------- ------ Underwriting income $6,545 $3,445 $31,694 $14,777 ====== ====== ======= ======= GAAP combined ratio as reported 95.3% 96.7% 91.9% 94.0% Specialty risk management operations pre-tax income $20,501 $11,857 $68,787 $40,386 Less: Underwriting income 6,545 3,445 31,694 14,777 Net investment income and capital losses 12,022 3,332 33,811 17,220 ------ ----- ------ ------ Fee-based operations pre-tax income 1,934 5,080 3,282 8,389 Agency operations pre-tax (loss) income (428) 391 (563) 1,328 ---- --- ---- ----- Total fee-for-service pre-tax income $1,506 $5,471 $2,719 $9,717 ====== ====== ====== ====== GAAP expense ratio as reported 30.8% 31.0% 31.2% 30.8% Adjustment to include pre-tax income from total fee-for-service income (1) 1.1% 5.2% 0.7% 3.9% --- --- --- --- GAAP expense ratio as adjusted (2) 29.7% 25.8% 30.5% 26.9% GAAP loss and LAE ratio as reported 64.5% 65.7% 60.7% 63.2% ---- ---- ---- ---- GAAP combined ratio as adjusted 94.2% 91.5% 91.2% 90.1% ==== ==== ==== ==== Reconciliation of Consolidated pre-tax income: Specialty risk management operations pre-tax income: Fee-based operations pre-tax income $1,934 $5,080 $3,282 $8,389 Underwriting income 6,545 3,445 31,694 14,777 Net investment income and capital losses 12,022 3,332 33,811 17,220 ------ ----- ------ ------ Total specialty risk management operations pre-tax income 20,501 11,857 68,787 40,386 Agency operations pre-tax (loss) income (428) 391 (563) 1,328 Less: Holding company expenses 918 875 3,910 2,495 Interest expense 2,620 2,333 8,061 4,898 Amortization expense 1,422 1,531 4,350 4,645 ----- ----- ----- ----- Consolidated pre-tax income $15,113 $7,509 $51,903 $29,676 ======= ====== ======= ======= (1) Adjustment to include pre-tax income from total fee-for-service income is calculated by dividing total fee-for-service income by net earned premiums. (2) While the adjusted GAAP expense ratio is a non-GAAP disclosure, management believes this information is beneficial to reviewing the financial statements. The adjusted GAAP expense ratio is the GAAP expense ratio, as reported, less the adjustment to include pre-tax income from total fee-for-service income. Management believes this information is beneficial as our GAAP expense ratio includes the impact of the margin associated with our fee-based operations. If the profit margin from our fee-for-service business is recognized as an offset to our underwriting expense, a more realistic picture of our operating efficiency emerges. MEADOWBROOK INSURANCE GROUP, INC. FINANCIAL INFORMATION SUPPLEMENT TO THE EARNINGS RELEASE UNAUDITED HISTORICAL INCOME STATEMENT INFORMATION (In Thousands, Except Share & Per Share Data) ------------------------- 2006A 2007A ----- ----- SUMMARY DATA ------------ Gross written premiums $330,872 $346,451 Net written premiums 262,668 280,211 INCOME STATEMENT ---------------- REVENUES Net earned premiums $254,920 $268,197 Commissions and fees (net) 41,172 45,988 Net investment income 22,075 26,400 Net realized gains (losses) 69 150 -- --- Total Revenues 318,236 340,735 EXPENSES Net losses & loss adjustment expenses 146,293 150,969 Policy acquisition and other underwriting expenses 50,479 53,717 Other administrative expenses 28,824 32,269 Salaries & employee benefits 54,569 56,433 Amortization expense 590 1,930 Interest expense 5,976 6,030 ----- ----- Total Expenses 286,731 301,348 INCOME BEFORE TAXES AND EQUITY EARNINGS 31,505 39,387 Income tax expense 9,599 11,726 Equity earnings of affiliates 128 331 --- --- NET INCOME $22,034 $27,992 Net realized capital gain (loss), net of tax 45 97 -- -- OPERATING INCOME $21,989 $27,895 ======= ======= Amortization expense 590 1,930 OPERATING INCOME, excluding amortization expense $22,579 $29,825 ======= ======= Weighted average common shares outstanding 29,566,141 33,101,965 Shares O/S at end of the period 29,107,818 36,996,287 PER SHARE DATA (Diluted) Net income $0.75 $0.85 Net realized gain (loss), net of tax $0.01 $0.01 Operating income $0.74 $0.84 Operating income, excluding amortization expense $0.76 $0.90 OPERATING RATIO ANALYSIS ------------------------ GAAP Loss & LAE ratio 62.3% 61.2% GAAP Expense ratio 34.5% 34.2% ---- ---- GAAP Combined ratio 96.8% 95.4% ==== ==== Unconsolidated GAAP data - Ratio Calculation Table: --------------------------- -------- -------- Net earned premiums $254,920 $268,197 Consolidated net loss and LAE $146,293 $150,969 Intercompany claim fees 12,553 13,058 ------ ------ Unconsolidated net loss and LAE $158,846 $164,027 ======== ======== GAAP Net loss and LAE ratio 62.3% 61.2% Consolidated Policy acquisition and other underwriting expenses $50,479 $53,717 Intercompany administrative and other underwriting fees 37,442 37,890 ------ ------ Unconsolidated policy acquisition and other underwriting expenses $87,921 $91,607 ======= ======= GAAP Expense ratio 34.5% 34.2% GAAP Combined Ratio 96.8% 95.4% ---- ---- Unconsolidated Commissions & Fees Managed programs: Management fees $18,714 $23,963 Claims fees 8,776 9,025 Loss control fees 2,216 2,151 Reinsurance brokerage 735 929 --- --- Total managed programs 30,441 $36,068 Agency commissions 12,285 11,316 Intersegment commissions and fees (1,554) (1,396) ------ ------ Net Commissions and fees 41,172 45,988 Intercompany commissions and fees 49,995 50,948 ------ ------ Gross commissions and fees $91,167 $96,936 ======= ======= Q108A Q208A Q308A Q408A ----- ----- ----- ----- SUMMARY DATA ------------ Gross written premiums $90,468 $94,370 $134,418 $138,427 Net written premiums 71,399 76,071 112,465 115,259 INCOME STATEMENT ---------------- REVENUES Net earned premiums $66,022 $77,031 $104,243 $122,425 Commissions and fees (net) 12,031 9,632 12,309 8,932 Net investment income 7,148 6,917 10,622 11,937 Net realized gains(losses) (31) (146) (7,290) (3,955) --- ---- ------ ------ Total Revenues 85,170 93,434 119,884 139,339 EXPENSES Net losses & loss adjustment expenses 37,661 43,542 63,932 67,750 Policy acquisition and other underwriting expenses 13,147 12,716 19,470 23,961 Other administrative expenses 8,832 7,960 8,055 10,153 Salaries & employee benefits 12,755 14,143 17,056 18,908 Amortization expense 1,551 1,563 1,531 1,665 Interest expense 1,311 1,254 2,333 2,783 ----- ----- ----- ----- Total Expenses 75,257 81,178 112,377 125,220 INCOME BEFORE TAXES AND EQUITY EARNINGS 9,913 12,256 7,509 14,119 Income tax expense 2,911 3,879 3,338 6,539 Equity earnings of affiliates 56 61 26 126 -- -- -- --- NET INCOME $7,058 $8,438 $4,199 $7,706 Net realized capital gain (loss), net of tax (20) (95) (6,739) (4,562) --- --- ------ ------ OPERATING INCOME $7,078 $8,533 $10,938 $12,268 ====== ====== ======= ======= Amortization expense 1,551 1,563 1,531 1,665 OPERATING INCOME, excluding amortization expense $8,629 $10,096 $12,469 $13,933 ====== ======= ======= ======= Weighted average common shares outstanding 37,103,270 37,126,911 47,595,572 57,780,625 Shares O/S at end of the period 37,021,032 37,021,032 57,644,022 57,341,989 PER SHARE DATA (Diluted) Net income $0.19 $0.23 $0.09 $0.13 Net realized gain (loss), net of tax $- $- $(0.14) $(0.08) Operating income $0.19 $0.23 $0.23 $0.21 Operating income, excluding amortization expense $0.23 $0.27 $0.26 $0.24 OPERATING RATIO ANALYSIS ------------------------ GAAP Loss & LAE ratio 61.7% 61.2% 65.7% 59.5% GAAP Expense ratio 32.2% 29.3% 31.0% 32.3% ---- ---- ---- ---- GAAP Combined ratio 93.9% 90.5% 96.7% 91.8% ==== ==== ==== ==== Unconsolidated GAAP data - Ratio Calculation Table: ------------------- ------- ------- -------- -------- Net earned premiums $66,022 $77,031 $104,243 $122,425 Consolidated net loss and LAE $37,661 $43,542 $63,932 $67,750 Intercompany claim fees 3,106 3,629 4,508 5,053 ----- ----- ----- ----- Unconsolidated net loss and LAE $40,767 $47,171 $68,440 $72,803 ======= ======= ======= ======= GAAP Net loss and LAE ratio 61.7% 61.2% 65.7% 59.5% Consolidated Policy acquisition and other underwriting expenses $13,147 $12,716 $19,537 $23,949 Intercompany administrative and other underwriting fees 8,088 9,832 12,821 15,630 ----- ----- ------ ------ Unconsolidated policy acquisition and other underwriting expenses $21,235 $22,548 $32,358 $39,579 ======= ======= ======= ======= GAAP Expense ratio 32.2% 29.3% 31.0% 32.3% GAAP Combined Ratio 93.9% 90.5% 96.7% 91.8% ---- ---- ---- ---- Unconsolidated Commissions & Fees Managed programs: Management fees $6,032 $4,174 $6,972 $3,990 Claims fees 2,180 2,305 2,304 2,090 Loss control fees 510 625 467 467 Reinsurance brokerage 296 98 177 157 --- -- --- --- Total managed programs 9,018 7,202 9,920 6,704 Agency commissions 3,328 2,681 2,631 2,425 Intersegment commissions and fees (315) (251) (241) (197) ---- ---- ---- ---- Net Commissions and fees 12,031 9,632 12,310 8,932 Intercompany commissions and fees 11,194 13,461 17,329 20,683 ------ ------ ------ ------ Gross commissions and fees $23,225 $23,093 $29,639 $29,615 ======= ======= ======= ======= 2008A Q109A Q209A Q309A ----- ----- ----- ----- SUMMARY DATA ------------ Gross written premiums $457,683 $159,991 $156,891 $188,985 Net written premiums 375,194 133,516 134,524 158,705 INCOME STATEMENT ---------------- REVENUES Net earned premiums $369,721 $129,038 $127,140 $137,399 Commissions and fees (net) 42,904 10,237 8,396 10,753 Net investment income 36,624 12,342 12,397 12,764 Net realized gains (losses) (11,422) (1,992) (958) (742) ------- ------ ---- ---- Total Revenues 437,827 149,625 146,975 160,174 EXPENSES Net losses & loss adjustment expenses 212,885 69,787 70,464 83,553 Policy acquisition and other underwriting expenses 69,294 23,969 27,139 28,824 Other administrative expenses 35,000 10,393 9,917 9,013 Salaries & employee benefits 62,862 19,827 19,945 19,629 Amortization expense 6,310 1,508 1,420 1,422 Interest expense 7,681 2,782 2,659 2,620 ----- ----- ----- ----- Total Expenses 394,032 128,266 131,544 145,061 INCOME BEFORE TAXES AND EQUITY EARNINGS 43,797 21,359 15,431 15,113 Income tax expense 16,667 7,874 3,827 4,167 Equity earnings of affiliates 269 55 41 73 --- -- -- -- NET INCOME $27,401 $13,540 $11,645 $11,019 Net realized capital gain (loss), net of tax (11,416) (2,797) (287) (669) ------- ------ ---- --- OPERATING INCOME $38,817 $16,337 $11,932 $11,688 ======= ======= ======= ======= Amortization expense 6,310 1,508 1,420 1,422 OPERATING INCOME, excluding amortization expense $45,127 $17,845 $13,352 $13,110 ======= ======= ======= ======= Weighted average common shares outstanding 44,995,712 57,410,327 57,516,750 57,563,263 Shares O/S at end of the period 57,341,989 57,447,707 57,447,707 57,147,872 PER SHARE DATA (Diluted) Net income $0.61 $0.24 $0.20 $0.19 Net realized gain (loss), net of tax $(0.25) $(0.04) $(0.01) $(0.01) Operating income $0.86 $0.28 $0.21 $0.20 Operating income, excluding amortization expense $1.00 $0.31 $0.23 $0.23 OPERATING RATIO ANALYSIS ------------------------ GAAP Loss & LAE ratio 62.0% 58.0% 59.4% 64.5% GAAP Expense ratio 31.3% 29.7% 33.3% 30.8% ---- ---- ---- ---- GAAP Combined ratio 93.3% 87.7% 92.7% 95.3% ==== ==== ==== ==== Unconsolidated GAAP data - Ratio Calculation Table: ------------------- -------- -------- -------- -------- Net earned premiums $369,721 $129,038 $127,140 $137,399 Consolidated net loss and LAE $212,885 $69,787 $70,464 $83,553 Intercompany claim fees 16,296 5,108 4,995 5,049 ------ ----- ----- ----- Unconsolidated net loss and LAE $229,181 $74,895 $75,459 $88,602 ======== ======= ======= ======= GAAP Net loss and LAE ratio 62.0% 58.0% 59.4% 64.5% Consolidated Policy acquisition and other underwriting expenses $69,349 $23,969 $27,139 $28,824 Intercompany administrative and other underwriting fees 46,371 14,366 15,201 13,428 ------ ------ ------ ------ Unconsolidated policy acquisition and other underwriting expenses $115,720 $38,335 $42,340 $42,252 ======== ======= ======= ======= GAAP Expense ratio 31.3% 29.7% 33.3% 30.8% GAAP Combined Ratio 93.3% 87.7% 92.7% 95.3% ---- ---- ---- ---- Unconsolidated Commissions & Fees Managed programs: Management fees $21,168 $5,278 $3,821 $6,142 Claims fees 8,879 1,966 2,006 1,802 Loss control fees 2,069 489 520 493 Reinsurance brokerage 728 65 90 333 --- -- -- --- Total managed programs $32,844 7,798 6,437 8,770 Agency commissions 11,065 2,794 2,171 2,031 Intersegment commissions and fees (1,004) (355) (212) (48) ------ ---- ---- --- Net Commissions and fees 42,905 10,237 8,396 10,753 Intercompany commissions and fees 62,667 19,474 20,196 18,477 ------ ------ ------ ------ Gross commissions and fees $105,572 $29,711 $28,592 $29,230 ======== ======= ======= =======

Meadowbrook Insurance Group, Inc.

CONTACT: Karen M. Spaun, SVP & Chief Financial Officer, +1-248-204-8178,
Holly Moltane, Controller - GAAP Financial Reporting, +1-248-204-8590

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

SWS Group, Inc. Reports First Quarter Net Income of $3.1 Million or 11 Cents per Share

DALLAS, Nov. 2 /PRNewswire-FirstCall/ -- SWS Group, Inc. today announced net income of $3.1 million, or diluted earnings per share (EPS) of 11 cents, for its fiscal first quarter ended September 25, 2009, compared with net income of $7.0 million, or diluted EPS of 26 cents, for the first quarter of its prior fiscal year. Net revenues (total revenues less interest expense) were $99.5 million compared with $87.8 million in the first fiscal quarter a year ago.

Results for the quarter just ended included a previously announced pre-tax loss of $6.3 million resulting from a clearing correspondent's unauthorized trading. The prior fiscal year's first quarter included a $5.4 million pre-tax write-off of a Lehman Brothers counterparty obligation.

"Our businesses are meeting the challenges presented by the current economic environment," said SWS Group President and CEO Donald W. Hultgren. "While the U.S. government has reported preliminary third quarter GDP growth of 3.5 percent, high unemployment and tight credit markets persist and are continuing to have an impact on our business. Despite these difficulties, the company's fixed income businesses continue to perform at a high level, and we are beginning to see some stabilization and improvement in our operating environment."

Net revenues in the first quarter of fiscal 2010 increased by $11.7 million over those reported for the comparable period of the prior fiscal year. The largest components of the increase were commissions, $6.9 million, net gains on principal transactions, $12.1 million, and other revenue, $3.2 million. The increase in commissions was driven primarily by an $8.2 million increase in the institutional segment, as volatility and lack of liquidity resulted in wider spreads and led to increased client activity and higher transaction levels in the taxable fixed income business. This was partially offset by a $1.3 million decrease in commissions in the retail segment, which continued to operate in a difficult market environment. Volatility and wider spreads in fixed income primarily accounted for the increase in net gains on principal transactions. The increase in other revenue resulted primarily from a $1.5 million increase in income earned on deferred compensation investments and a $1.0 million decrease in losses related to the company's investment in a venture capital fund. These increases were partially offset by an $8.2 million decrease in net interest, which resulted from a 34 percent decline in the average stock loaned balance and a decrease in spreads earned on securities lending balances.

Operating expenses for the first quarter of fiscal 2010 increased $17.5 million over those reported for the first quarter of the prior fiscal year. The largest increases were in commissions and other employee compensation, $9.6 million, and other expenses, $6.9 million. The institutional segment accounted for $9.2 million of the increased expenses in commissions and other employee compensation. The previously mentioned $6.3 million loss resulting from a correspondent's unauthorized trading accounted for most of the increase in other expenses.

Clearing segment net revenues declined $3.0 million in the first quarter of fiscal 2010 to $5.2 million from $8.2 million in the first quarter of the prior fiscal year, and the segment reported a pre-tax loss of $5.7 million versus pre-tax income of $2.3 million for the same periods. Tickets processed in the first fiscal quarter of 2010 declined significantly as tickets for high-volume trading firms dropped to under 400,000 from 5.4 million in the first quarter of the prior fiscal year. Tickets processed for general securities broker/dealers increased modestly, and the revenue per ticket increased by $3.80 as a result of the changed mix of business. Other expenses for the clearing segment increased $5.2 million, primarily as a result of the previously mentioned $6.3 million loss.

Retail segment net revenues decreased $3.6 million in the first quarter of fiscal 2010 to $25.1 million from $28.7 million in the first quarter of the prior fiscal year. The retail segment recorded a $1.0 million pre-tax loss for the first quarter of fiscal 2010 compared with $1.5 million in pre-tax income in the first quarter of fiscal 2009. The decline in retail segment revenues resulted from a $1.7 million reduction in private client group commission revenues and a $1.1 million reduction in fees as a result of the closure of Tower Asset Management, LLC. Total customer assets were $12.7 billion at September 25, 2009 compared with $10.8 billion a year earlier. Retail operating expenses declined $1.2 million from the prior year's first quarter, primarily as a result of an 8 percent decrease in commission expense, the main component of operating expenses in the retail segment.

Institutional segment net revenues increased $11.1 million in the first quarter of fiscal 2010 to $49.1 million from $38.1 million in the comparable period of the prior fiscal year. The institutional segment also increased pre-tax income by $5.5 million to $17.8 million in the first fiscal quarter of 2010 from $12.3 million a year ago. Institutional segment commissions increased $8.2 million in the first quarter of fiscal 2010 compared with the same period of the prior fiscal year, while net gains on principal transactions increased $12.2 million to $14.7 million from $2.4 million a year ago. Institutional segment operating expenses increased $5.5 million year over year, primarily because higher revenues resulted in increased commission expense.

Banking segment net revenues increased $4.0 million in the first quarter of fiscal 2010 to $19.3 million from $15.3 million in the first quarter of the prior fiscal year, while pre-tax income declined to $3.0 million from $4.5 million. The bank's net interest revenue increased to $18.0 million in the first quarter of fiscal 2010 from $14.7 million in the same period a year ago, as loan volume increased and the cost of funds declined. Banking segment operating expenses increased to $16.3 million from $10.8 million in a comparison of year-to-year first quarters. An increase in the bank's loan loss provision and real estate owned provision of $3.8 million and $1.4 million, respectively, along with costs associated with maintaining real estate and other foreclosed property accounted for most of the rise in operating expenses.

The bank has seen some stabilization in its residential construction loan portfolio; however, that improvement has been offset by continued deterioration in commercial real estate loans. The bank's management expects overall non-performing assets to stabilize over the next few quarters but remain at historically high levels for some time. The allowance for loan losses increased to $16.9 million at September 30, 2009 from $14.7 million at June 30, 2009. The allowance represents 1.44 percent of loans held for investment at September 30, 2009, up from 1.28 percent at June 30, 2009 and 0.77 percent at September 30, 2008.

SWS Group, Inc. is a Dallas-based financial services holding company offering a broad range of services through its subsidiaries. The company's common stock is listed and traded on the New York Stock Exchange under the symbol, SWS. Subsidiaries include Southwest Securities, Inc, SWS Financial Services, Inc., and Southwest Securities, FSB.

This news release contains forward-looking statements. Readers are cautioned that any forward-looking statements, including those predicting or forecasting future events or results, which depend on future events for their accuracy, embody projections or assumptions, or express the intent, belief or current expectations of the company or management, are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially as a result of various factors, some of which are out of our control, including, but not limited to, volume of trading in securities, volatility of securities prices and interest rates, availability of lines of credit, customer margin loan activity, creditworthiness of our correspondents and customers, demand for housing, and other factors discussed in our Annual Report on Form 10-K and in our other reports filed with and available from the Securities and Exchange Commission.

Segment Results (In thousands) Net Revenues Pre-Tax Income Three Months Ended Three Months Ended ---------------------- ------------------------ Sept. 25, Sept. 26, Sept. 25, Sept. 26, 2009 2008 2009 2008 ---------- --------- --------- --------- Clearing $5,156 $8,176 $(5,688) $2,272 Retail 25,075 28,714 (997) 1,491 Institutional 49,148 38,095 17,826 12,310 Bank 19,302 15,327 2,968 4,548 Other consolidated entities 772 (2,544) (9,132) (9,828) ------- ------- ------ ------- Consolidated $99,453 $87,768 $4,977 $10,793 ======= ======= ====== ======= FINANCIAL TABLES FOLLOW SWS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Financial Condition September 25, 2009 and June 26, 2009 (In thousands, except par values and share amounts) September 25, 2009 June 26, (Unaudited) 2009 ---------- ---------- Assets Cash and cash equivalents $142,793 $96,253 Assets segregated for regulatory purposes 300,405 313,153 Receivable from brokers, dealers and clearing organizations 1,927,649 1,892,739 Receivable from clients, net of allowances 187,671 158,032 Loans held for sale 235,325 262,780 Loans, net 1,157,117 1,138,602 Securities owned, at market value 202,230 175,030 Securities purchased under agreements to resell - 21,622 Goodwill 7,552 7,552 Marketable equity securities available for sale 1,139 4,094 Other assets 138,373 129,182 ---------- ---------- Total assets $4,300,254 $4,199,039 ========== ========== Liabilities and Stockholders' Equity Short-term borrowings $38,000 $10,000 Payable to brokers, dealers and clearing organizations 1,844,067 1,853,544 Payable to clients 463,375 426,300 Deposits 1,337,161 1,292,366 Securities sold under agreements to repurchase - 4,462 Securities sold, not yet purchased, at market value 74,694 53,236 Drafts payable 24,104 27,457 Advances from Federal Home Loan Bank 115,850 117,492 Other liabilities 61,825 73,825 ---------- ---------- Total liabilities 3,959,076 3,858,682 Commitments and contingencies Stockholders' equity: Preferred stock of $1.00 par value. Authorized 100,000 shares; none issued - - Common stock of $.10 par value. Authorized 60,000,000 shares, issued 28,309,139 and outstanding 27,371,943 shares at September 25, 2009; issued 28,309,139 and outstanding 27,262,923 shares at June 26, 2009 2,831 2,831 Additional paid-in capital 270,232 271,131 Retained earnings 76,540 75,918 Accumulated other comprehensive income - unrealized holding gain, net of tax 134 180 Deferred compensation, net 2,849 2,639 Treasury stock (937,196 shares at September 25, 2009 and 1,046,216 shares at June 26, 2009, at cost) (11,408) (12,342) ---------- ---------- Total stockholders' equity 341,178 340,357 ---------- ---------- Total liabilities and stockholders' equity $4,300,254 $4,199,039 ========== ========== SWS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income and Comprehensive Income For the three months ended September 25, 2009 and September 26, 2008 (In thousands, except per share and share amounts) (Unaudited) Three Months Three Months Ended Ended September September 25, 2009 26, 2008 ---------- ---------- Revenues: Net revenues from clearing operations $2,626 $3,296 Commissions 42,612 35,745 Interest 41,437 66,780 Investment banking, advisory and administrative fees 9,270 10,924 Net gains on principal transactions 14,819 2,704 Other 6,121 2,899 ---------- ---------- Total revenue 116,885 122,348 Interest expense 17,432 34,580 ---------- ---------- Net revenues 99,453 87,768 ---------- ---------- Non-Interest Expenses: Commissions and other employee compensation 62,026 52,411 Occupancy, equipment and computer service costs 8,390 7,740 Communications 3,248 3,161 Floor brokerage and clearing organization charges 959 917 Advertising and promotional 1,005 799 Other 18,848 11,947 ---------- ---------- Total non-interest expenses 94,476 76,975 ---------- ---------- Income before income tax expense 4,977 10,793 Income tax expense 1,892 3,770 ---------- ---------- Net income 3,085 7,023 Net loss recognized in other comprehensive income (46) (868) ---------- ---------- Comprehensive income $3,039 $6,155 ========== ========== Earnings per share - basic Net income $0.11 $0.26 ========== ========== Weighted average shares outstanding - basic 27,151,162 27,022,556 ========== ========== Earn Earnings per share - diluted Net income $0.11 $0.26 ========== ========== Weighted average shares outstanding - diluted 27,264,710 27,198,585 ========== ==========

SWS Group, Inc.

CONTACT: Jim Bowman, Vice President - Corporate Communications, of SWS
Group, Inc., +1-214-859-9335, jbowman@swst.com

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

Ever-Glory Schedules Third Quarter 2009 Earnings Release and Conference Call

NANJING, China, Nov. 2 /PRNewswire-Asia-FirstCall/ -- Ever-Glory International Group, Inc. (the "Company," "Ever-Glory") (NYSE Amex: EVK) today announced that the Company will report its third quarter 2009 financial results on Monday, November 9, 2009 before the market opens.

The Company will hold a conference call with senior management to discuss the financial results the same day at 8:30 a.m. Eastern Time. Listeners can access the conference call by dialing #1-913-981-4900. The conference call will also be broadcast live over the Internet and can be accessed at the Company's web site at the following URL: http://www.everglorygroup.com/ .

A replay of the call will be available from November 9, 2009 through November 16, 2009 by calling #1-719-457-0820; pin number: 3006456.

About Ever-Glory International Group, Inc.

Based in Nanjing, China, Ever-Glory International Group, Inc. is a leading apparel supply chain manager and retailer in China. Ever-Glory is the first Chinese apparel company listed on the American Stock Exchange (now called NYSE Amex), and has a focus on middle-to-high grade casual wear, outerwear, and sportswear brands. The Company maintains global strategic partnerships in Europe, the United States, Japan and China, conducting business with several well-known brands and retail chain stores. In addition, Ever-Glory operates its own domestic chain of retail stores known as "LA GO GO."

Safe Harbor Statement

Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's products and projects, the Company's continued access to capital, currency exchange rate fluctuation and other risks and uncertainties. The actual results the Company achieves may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements. Readers should carefully review the risks and uncertainties described in the Company's latest Annual Report on Form 10-K and other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.

Ever-Glory International Group, Inc.

CONTACT: Company Contact - Ever-Glory International Group, Inc., Yan Guo,
Chief Financial Officer, +86-25-5209-6222; Or Investor Relations - In the U.S.,
Brian M. Prenoveau, CFA of ICR, Inc., +1-203-682-8200 or In Asia, Yuening
Jiang, +86-10-6599-7965

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

ATS Medical Announces Third Quarter 2009 Results- Third quarter 2009 revenue increases 17% compared to the third quarter 2008 - Company delivers 11th consecutive quarter of double-digit revenue growth and 3rd consecutive quarter of positive EBITDA - Company generates positive cash flow for the third quarter

MINNEAPOLIS, Nov. 2 /PRNewswire-FirstCall/ -- ATS Medical, Inc. , manufacturer and marketer of state-of-the-art cardiac surgery products and services, today reported financial results for its third quarter ended October 3, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040202/ATSILOGO) Third Quarter 2009 Results

Revenue for the quarter was $18.8 million, or 17.3% higher than the third quarter of 2008. Revenue from the Company's heart valve therapy products, consisting of mechanical valves, tissue valves and repair products, was up 20.5% on a year-over-year basis to $14.2 million. Revenue from the Company's ATS CryoMaze® cryoablation products for the treatment of cardiac arrhythmias was $4.5 million, an increase of 12.0% compared to the third quarter of 2008. Excluding the impact of foreign currency fluctuations revenue growth for the quarter was 19.4% overall, 23.0% for heart valve therapy products and 12.6% for cryoablation products.

Gross profit margin for the third quarter of 2009 was 62.9% vs. 59.1% in the third quarter of 2008, continuing the trend of significant margin improvement. Year-over-year gross margin improvements were primarily the result of lower mechanical valve and ATS CryoMaze product costs resulting from increased production.

Operating loss for the third quarter of 2009 was $0.6 million compared with an operating loss of $2.8 million in the third quarter of 2008. The net loss for the third quarter of 2009 was $1.0 million, or $0.01 per share, compared with $3.7 million, or $0.06 per share, in the third quarter of 2008.

The Company also reported non-GAAP earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter of 2009 of $1.1 million compared to an EBITDA loss of $1.6 million in the third quarter of 2008. A reconciliation of net loss to non-GAAP EBITDA for these periods is provided in a schedule accompanying this press release. The Company ended the third quarter with $12.1 million in cash and generated positive cash flow during the quarter of $770,000.

"Our third quarter financial performance was strong, once again yielding robust sales growth, margin expansion and profitability improvements, which are particularly gratifying given the challenging global economic environment," said Michael Dale, President and Chief Executive Officer. "Importantly, in the third quarter we generated positive cash flow of more than $700,000. The leverage we are experiencing in our business significantly enhances our ability to capitalize on our strategic initiatives and related new product development."

Product Highlights Mechanical Heart Valves -- Mechanical valve revenue was $11.6 million in the third quarter of 2009, an increase of 10% over the third quarter of 2008. -- The Company saw significant ATS Open Pivot® Mechanical Heart Valve sales growth in Asia and continued to benefit from the recent launch of the AP360 valve in Japan. -- Two significant long-term Open Pivot valve studies were made public in Q3. The authors Van Nooten and Sezai both report very positive 15 year experiences with the Open Pivot valve with excellent outcomes and low complication rates. These papers are a strong addition to the growing body of science supporting the lower propensity for thromboembolic complications with the fundamentally superior Open Pivot design. Tissue Heart Valves -- Tissue valve revenue during the third quarter of 2009 was $1.4 million compared to $0.3 million in the comparable quarter of 2008. -- In September, the Company announced that Columbia University Medical Center achieved a milestone 100 implants of the ATS 3f® Aortic Bioprosthesis. The Columbia University surgeons have utilized the ATS 3f® Aortic Bioprosthesis predominantly in small aortic roots where conventional stented tissue valves often involve a tradeoff in terms of clinical performance. -- ATS sponsored a 3f Revolution Symposium at the EACTS meeting in Vienna that included a faculty of key opinion leaders in aortic valve surgery. Professor Sven Martens from JW Goethe University in Frankfurt, Germany presented his results with the ATS 3f® Enable(TM) valve demonstrating excellent pressure gradients and good outcomes. Professor Thierry Carrel from the University of Berne, in Berne Switzerland presented on his surgical approach in performing a biological Bentall procedure Heart Valve Repair -- Heart valve repair revenue in the third quarter of 2009 was $1.2 million, an increase of 29% compared to the third quarter of 2008. -- The Company announced FDA approval and first implants of a new ATS Simulus semi-rigid band. The semi-rigid band expands the Company's annuloplasty repair product portfolio to meet broader clinical applications. The Company anticipates at least one additional repair product launch prior to the end of 2009. Surgical Ablation -- Cryoablation revenues of $4.5 million in the third quarter of 2009 increased 12% over third quarter of 2008. -- The third quarter saw the early stages of U.S. launch for the new ATS CryoMaze® 10-S Surgical Cryoablation Probe, which offers increased support throughout the length of the ablation segment. The increased rigidity of the probe addresses the preference of some surgeons to have a cryoablation probe with the feel of a more substantial surgical instrument. The ATS CryoMaze 10-S Probe has optimal shape retention while remaining distinctly malleable by hand. This combination of attributes makes the probe particularly useful in minimally invasive cardiac arrhythmia procedures. -- The Company received CE Mark for the new ATS CryoMaze 10-S Probe in October. European launch of the 10-S Probe will begin in the fourth quarter.

"Our focused R&D investments continue to deliver new products that are specifically designed to meet the unique needs of our cardiac surgeon customers around the world," commented Mr. Dale. "We have confidence that we have the right portfolio of current and upcoming products to deliver continued growth and expand our market presence in all segments."

2009 Guidance

For the full year 2009 the Company re-affirmed its previous revenue guidance of $77 to $79 million. Additionally, the Company anticipates it may generate net income in the fourth quarter of 2009.

Conference Call Today

ATS management will host a conference call today, November 2, 2009, at 5:00 p.m. ET to discuss its 2009 third quarter financial results and current corporate developments. The dial-in number for the conference call is 866-700-0161 for domestic participants and 617-213-8832 for international participants with a passcode of 96839682. A live webcast of the call can also be accessed at http://www.atsmedical.com/ by clicking on the Investors icon.

A taped replay of the conference call will also be available beginning approximately one hour after the call's conclusion and will remain available for seven days. The replay can be accessed by dialing 888-286-8010 for domestic participants and 617-801-6888 for international callers, using the passcode 52986153.

Disclosure of Non-GAAP Financial Measures

ATS reports its financial results in accordance with generally accepted accounting principles (GAAP). In addition, from time to time, we include other measures in our releases which are not prepared in accordance with GAAP. Investors should consider these non-GAAP financial measures in addition to, not as a substitute for or as superior to, financial reporting measures prepared in accordance with GAAP. Non-GAAP financial measures used by ATS may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. In this release we have included disclosures of earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP financial measure, for the third quarter and first nine months of 2009 and 2008. We use EBITDA in our internal analysis and review of our operational performance. We believe that this non-GAAP measure provides investors with useful information in comparing our operational performance over different periods. By using this non-GAAP measure we believe investors get a better picture of the performance of our underlying business. We have also included as an attachment to this release a schedule which reconciles net loss reported in accordance with GAAP to the EBITDA amounts presented above.

About ATS Medical

ATS Medical, Inc. is dedicated to "Advancing The Standards" of cardiac surgery through the development, manufacturing and marketing of innovative products and services for the treatment of structural heart disease. ATS Medical serves the cardiac surgery community by focusing on two distinct but operationally synergistic market segments: heart valve disease therapy and surgical ablation of cardiac arrhythmias.

ATS was originally founded to develop the ATS Open Pivot® heart valve as a new mechanical heart valve standard of care. Today the Open Pivot heart valve is the preferred mechanical heart valve in many markets around the world and the fastest growing mechanical prosthesis in the market. Building on this legacy and addressing the largest market segment in heart valve therapy, the ATS 3f® brand encompasses an innovative tissue heart valve portfolio to address conventional open surgery requirements as well as the growing demand for less invasive, sutureless procedures. The ATS 3f® portfolio includes offerings at various stages including early product development, pivotal clinical trials, and market commercialization. Completing the portfolio in heart valve therapy is the ATS Simulus® annuloplasty product line. Simulus products assist the surgeon in repairing a patient's native heart valve as an alternative to replacement. Continuing ATS Medical's focus on serving the cardiac surgery community are the ATS CryoMaze® products for surgical cryoablation of cardiac arrhythmias. ATS CryoMaze® products are used by surgeons to treat patients suffering from cardiac arrhythmias, the largest and fastest growing form of structural heart disease in populations over 60 years of age. The ATS Medical web site is http://www.atsmedical.com/.

Cautionary Statements

This Press Release contains forward-looking statements that may include statements regarding intent, belief or current expectations of the Company and its management. Actual results could differ materially from those projected in the forward looking statements as a result of a number of important factors, including the results of clinical trials, the timing of regulatory approvals, the integration of 3f Therapeutics and the surgical cryoablation business of CryoCath Technologies, Inc., regulatory actions, competition, pricing pressures, supplier actions and management of growth. For a discussion of these and other risks and uncertainties that could affect the Company's activities and results, please refer to the Company's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2008 and its most recent quarterly report on Form 10-Q.

ATS Medical, Inc. Condensed Consolidated Statements of Operations (in thousands except per share amounts) --------------------------------------- Quarter Ended Nine Months Ended ------------- ----------------- October September October September 3, 27, 3, 27, 2009 2008 2009 2008 ---- ---- ---- ---- Net sales $18,827 $16,044 $57,011 $47,789 Cost of goods sold 6,983 6,570 20,153 19,077 ----- ----- ------ ------ Gross profit 11,844 9,474 36,858 28,712 Operating expenses: Sales and marketing 6,950 7,059 21,976 20,693 Research and development 2,226 1,843 6,087 6,351 General and administrative 2,438 2,431 7,345 8,199 Amortization of intangibles 812 891 2,412 2,672 --- --- ----- ----- Total operating expenses 12,426 12,224 37,820 37,915 ------ ------ ------ ------ Operating loss (582) (2,750) (962) (9,203) Interest expense, net (644) (700) (2,057) (1,976) Other income (expense), net 383 (241) 501 637 --- ----- --- --- Net loss before income taxes (843) (3,691) (2,518) (10,542) Income tax expense (132) (55) (314) (284) ----- ---- ----- ----- Net loss ($975) ($3,746) ($2,832) ($10,826) ===== ======= ======= ========= Net loss per share: Basic and diluted ($0.01) ($0.06) ($0.04) ($0.18) ======= ======= ======= ======= Weighted average number of shares outstanding: Basic and diluted 71,941 62,300 71,626 60,691 ====== ====== ====== ====== ATS Medical, Inc. Condensed Consolidated Balance Sheets (in thousands) -------------- October 3, December 31, 2009 2008 ---- ---- Assets Cash and short-term investments $12,092 $20,895 Accounts receivable 14,416 14,532 Inventories, net 21,352 20,208 Prepaid expenses 2,160 958 ----- --- Total current assets 50,020 56,593 Property and equipment, net 6,613 7,031 Intangible assets 46,738 49,131 Other assets 1,526 2,226 ----- ----- Total assets $104,897 $114,981 ======== ======== Liabilities & shareholders' equity Accounts payable $3,780 $4,054 Accrued compensation 2,349 3,537 Current maturities of bank notes payable 2,646 2,646 Payable to CryoCath Technologies Inc. - 1,910 Payable to CarboMedics Inc. - 4,500 Other accrued liabilities 2,648 2,257 ----- ----- Total current liabilities 11,423 18,904 Convertible senior notes payable 17,626 17,533 Bank notes payable 1,764 3,969 Shareholders' equity 74,084 74,575 ------ ------ Total liabilities & shareholders' equity $104,897 $114,981 ======== ======== ATS Medical, Inc. Consolidated Condensed Statements of Cash Flow (in thousands) -------------- Nine Months Ended ----------------- October September 3, 27, 2009 2008 ---- ---- Operating activities Net loss ($2,832) ($10,826) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 3,828 4,331 Stock-based compensation expense 1,885 1,184 Deferred income taxes 201 144 Non-cash interest expense 601 499 Change in value of warrant liability and derivative liability bifurcated from convertible senior notes (26) (286) Changes in operating assets and liabilities (8,045) (1,167) ------- ------- Net cash used in operating activities (4,388) (6,121) Investing activities Maturities of short-term investments, net of purchases - 4,189 Payments for business acquisitions (2,000) (2,000) Purchases of furniture, machinery and equipment (990) (1,208) Other 460 - --- --- Net cash provided by (used in) investing activities (2,530) 981 Financing activities Payments on notes payable (2,205) (1,323) Net proceeds from issuance of common stock 236 4,002 Other 29 108 -- --- Net cash provided by (used in) financing activities (1,940) 2,787 Effect of foreign exchange rate changes 55 (615) --- ----- Decrease in cash and cash equivalents ($8,803) ($2,968) ======== ======= ATS Medical, Inc. Selected Revenue Information (in thousands) -------------- Quarter Ended Nine Months Ended ------------- ----------------- October September October September 3, 27, 3, 27, 2009 2008 2009 2008 ---- ---- ---- ---- Heart valve therapy $14,163 $11,755 $42,144 $34,529 Surgical arrhythmia 4,491 4,011 14,117 12,245 Surgical tools & accessories 173 278 750 1,015 --- --- --- ----- Total revenue $18,827 $16,044 $57,011 $47,789 ======= ======= ======= ======= ATS Medical, Inc. Reconciliation of GAAP Net Loss to Non-GAAP EBITDA (Unaudited, in thousands) ------------------------- Quarter Ended Nine Months Ended ------------- ----------------- October September October September 3, 27, 3, 27, 2009 2008 2009 2008 ---- ---- ---- ---- Net loss, as reported $(975) $(3,746) $(2,832) $(10,826) Adjustments to net loss: Interest expense 648 729 2,081 2,151 Income tax expense 132 55 314 284 Depreciation 476 494 1,416 1,659 Amortization of intangibles 812 891 2,412 2,672 --- --- ----- ----- Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) $1,093 $(1,577) $3,391 $(4,060) ====== ======== ====== =======

Photo: http://www.newscom.com/cgi-bin/prnh/20040202/ATSILOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com ATS Medical, Inc.

CONTACT: Michael Dale, President, CEO, +1-763-553-7736, or Michael
Kramer, CFO, +1-763-557-2222, both of ATS Medical; or Investors, Parice
Halbert, CFA of Westwicke Partners, +1-443-213-0500, for ATS Medical

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

OncoGenex Pharmaceuticals to Release Third Quarter 2009 Financial Results

BOTHELL, WA and VANCOUVER Nov. 2 /PRNewswire-FirstCall/ -- OncoGenex Pharmaceuticals, Inc. announced today that the Company will announce third quarter financial results after the market closes on Thursday, November 5, 2009. OncoGenex will host a conference call and live webcast at 4:30 p.m. ET that afternoon to provide a business update and discuss the third quarter results.

A live webcast will be available through the Events and Presentations Web page found in the Investor Relations section of the OncoGenex Web site at http://www.ir.oncogenex.com/. Alternatively, you may access the live conference call by dialing 888-466-4520 (U.S. & Canada) or 719-457-2729 (International). A webcast replay will be available approximately two hours after the call and will be archived at the same Web location for 90 days.

About OncoGenex Pharmaceuticals

OncoGenex is a biopharmaceutical company committed to the development and commercialization of new therapies that address unmet needs in the treatment of cancer. OncoGenex has a deep oncology pipeline, with each product candidate having a distinct mechanism of action and representing a unique opportunity for cancer drug development. OGX-011, the lead candidate that has completed five phase 2 clinical trials in prostate, lung and breast cancers, is designed to inhibit the production of a specific protein associated with treatment resistance; OGX-427 is in phase 1 clinical development; SN2310 has completed a phase 1 clinical trial; and CSP-9222 and OGX-225 are currently in pre-clinical development. More information about OncoGenex is available at http://www.oncogenex.com/.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the intended use and sufficiency of the Company's cash, cash equivalents and short-term investments, the company's manufacturing and clinical trial readiness, prospects for securing a co-development and commercialization partner and planned phase 3 trials. Such forward-looking statements are subject to risks and uncertainties, including, among others: the risk factors set forth in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for fiscal year 2008. The Company undertakes no obligation to update the forward-looking statements contained herein or to reflect events or circumstances occurring after the date hereof, other than as may be required by applicable law.

OncoGenex Pharmaceuticals, Inc.

CONTACT: OncoGenex Contact: Scott Cormack, President & CEO, (604)
736-3678, scormack@oncogenex.com; Media and Investor Contact: Jason Spark,
Porter Novelli Life Sciences, (619) 849-6005, jspark@pnlifesciences.com

BRE Properties Announces Third Quarter 2009 Conference Call Webcast

SAN FRANCISCO, Oct. 30 /PRNewswire-FirstCall/ -- BRE PROPERTIES, INC. announces the following Webcast:

What: BRE Properties Third Quarter 2009 Conference Call When: Tuesday, November 3, 2009 at 11:00 a.m. Eastern / 8:00 a.m. Pacific Where: Live Webcast at http://www.breproperties.com/. Click on Investors. How: Simply click on the Webcast link. Contact: Thomas Mierzwinski, BRE Properties, 415.445.6525.

If you are unable to participate during the live Webcast, the call will be available for one month at http://www.breproperties.com/ in the Investors section, on the Corporate Profile page.

About BRE Properties

BRE Properties, based in San Francisco, Calif., owns and manages apartment communities convenient to its residents' work, shopping, entertainment and transit in supply-constrained Western U.S. markets. BRE directly owns and operates 74 apartment communities totaling 21,485 units in California, Arizona and Washington. The company invests in communities through acquisition and development, and currently has five properties in various stages of development and construction, totaling 1,526 units, and joint venture interests in 13 additional apartment communities, totaling 4,080 units. BRE Properties is a real estate investment trust (REIT) listed in the S&P MidCap 400 Index. For more information on BRE Properties, please visit our Web site at http://www.breproperties.com/. (Property data as of 06/30/09)

(Minimum Requirements to listen to broadcast: The Windows Media Player software, downloadable free from http://www.microsoft.com/windows/windowsmedia/EN/default.asp/ and at least a 28.8Kbps connection to the Internet. If you experience problems listening to the broadcast, send an email to isproducers@prnewswire.com .)

BRE Properties, Inc.

CONTACT: Thomas Mierzwinski of BRE Properties, +1-415-445-6525

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

Gentiva(R) Health Services to Present at the Credit Suisse Healthcare Conference

ATLANTA, Nov. 2 /PRNewswire-FirstCall/ -- Gentiva Health Services, Inc. , a leading provider of comprehensive home health services, announced today that it plans to present at the Credit Suisse Healthcare Conference in Phoenix, Arizona at 2:00 p.m. to 2:30 p.m. ET (12:00 p.m. to 12:30 p.m. local time), Thursday, November 12, 2009.

The presentations will be available to the public via a live audio web cast, which may be accessed by visiting http://investors.gentiva.com/events.cfm. Visitors to this site will also be able to request advance notifications of this or other upcoming Gentiva events.

Gentiva executives will give attendees an overview of the Company's operations and strategic priorities, and review opportunities for growth as the U.S. home health industry provides more services to an aging population.

About Gentiva Health Services, Inc.

Gentiva Health Services, Inc. is a leading provider of comprehensive home health services, delivering innovative, high quality care to patients across the United States. Gentiva is a single source for skilled nursing; physical, occupational, speech and neurorehabilitation services; hospice services; social work; nutrition; disease management education; help with daily living activities; respiratory therapy and home medical equipment; infusion therapy services; and other therapies and services. For more information, visit Gentiva's web site, http://www.gentiva.com/, and its investor relations section at http://investors.gentiva.com/. GTIV-G

Forward-Looking Statement

Certain statements contained in this news release, including, without limitation, statements containing the words "believes," "anticipates," "intends," "expects," "assumes," "trends" and similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon the Company's current plans, expectations and projections about future events. However, such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, among others, the following: economic and business conditions, including the ability to access capital markets; demographic changes; changes in, or failure to comply with, existing governmental regulations; legislative proposals for healthcare reform; changes in Medicare and Medicaid reimbursement levels; effects of competition in the markets in which the Company operates; liability and other claims asserted against the Company; ability to attract and retain qualified personnel; availability and terms of capital; loss of significant contracts or reduction in revenues associated with major payer sources; ability of customers to pay for services; business disruption due to natural disasters or terrorist acts; ability to successfully integrate the operations of acquisitions the Company may make and achieve expected synergies and operational efficiencies within expected time-frames; effect on liquidity of the Company's debt service requirements; and changes in estimates and judgments associated with critical accounting policies and estimates. For a detailed discussion of certain of these and other factors that could cause actual results to differ from those contained in this news release, please refer to the Company's various filings with the Securities and Exchange Commission (SEC), including the "Risk Factors" section contained in the Company's annual report on Form 10-K for the year ended December 28, 2008.

Financial and Investor Contact: John R. Potapchuk 631-501-7035 john.potapchuk@gentiva.com or Brandon Ballew 770-221-6700 brandon.ballew@gentiva.com Media Contact: Scott Cianciulli Brainerd Communicators 212-986-6667 cianciulli@braincomm.com

Gentiva Health Services, Inc.

CONTACT: Financial and Investors, John R. Potapchuk, +1-631-501-7035,
john.potapchuk@gentiva.com, or Brandon Ballew, +1-770-221-6700,
brandon.ballew@gentiva.com; or Media, Scott Cianciulli, Brainerd
Communicators, +1-212-986-6667, cianciulli@braincomm.com

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

Navios Maritime Holdings Inc. Announces Closing of $400 Million 8-7/8% First Priority Ship Mortgage Notes Due 2017 Offering

PIRAEUS, Greece, Nov. 2 /PRNewswire-FirstCall/ -- Navios Maritime Holdings Inc. (''Navios Holdings") announced today that it and Navios Maritime Finance (US) Inc., its wholly-owned finance subsidiary ("NMF" and, together with Navios Holdings, "Navios") completed the sale of $400 million of 8-7/8% first priority ship mortgage notes due 2017 (the ''Notes''). The Notes were offered and sold in the United States only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the ''Securities Act''), and in offshore transactions to non-United States persons in reliance on Regulation S under the Securities Act.

The Notes are guaranteed by all of the subsidiaries that provide a guarantee of Navios Holdings' 9-1/2% senior notes due 2014. As of the closing date, the Notes are secured by first priority ship mortgages on 13 drybulk vessels owned by certain subsidiary guarantors.

$105 million of the offering proceeds have been escrowed to provide additional financing to complete the purchase of two new vessels expected to be delivered in late 2009 and early 2010 (which will then become part of the collateral securing the Notes). The balance of the offering proceeds have been used to repay borrowings under certain of Navios Holdings' existing credit facilities and to pay transaction and related expenses.

The Notes and related guarantees have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States or to or for the benefit of U.S. persons unless so registered except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable securities laws in other jurisdictions. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes and the related guarantees, nor shall there by any sale of the Notes and the related guarantees in any jurisdiction in which such offer, solicitation or sale is unlawful. Any offer of the Notes and related guarantees will be made only by means of a private offering memorandum. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

About Navios Maritime Holdings Inc.

Navios Maritime Holdings Inc. is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of drybulk commodities including iron ore, coal and grain. For more information please visit our website: http://www.navios.com/.

Forward Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and Navios Holdings' growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenues and time charters. Although Navios Holdings believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Holdings. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for drybulk vessels, competitive factors in the market in which Navios Holdings operates; risks associated with operations outside the United States; and other factors listed from time to time in Navios Holdings' filings with the Securities and Exchange Commission. Navios expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Holdings' expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Public & Investor Relations Contact: Navios Maritime Holdings Inc. Investor Relations +1.212.279.8820 investors@navios.com

Navios Maritime Holdings Inc.

CONTACT: Navios Maritime Holdings Inc., Investor Relations,
+1-212-279-8820, investors@navios.com

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

Iconix Brand Group, Inc. Closes Acquisition of 51% Controlling Interest in Ecko Brands

NEW YORK, Nov. 2 /PRNewswire-FirstCall/ -- Iconix Brand Group, Inc. ("Iconix" or the "Company"), today announced that it has completed the acquisition of a 51% controlling interest in the Ecko portfolio of brands through a newly formed joint venture company, IP Holdings Unltd LLC. The Ecko portfolio includes Ecko Unlimited, Marc Ecko, the Rhino logo, and Zoo York, which in the aggregate represent over $1 billion of annual global retail sales.

For this acquisition, Iconix paid $63.5 million in cash, and the joint venture obtained $90 million of financing. Iconix's effective purchase price for it's 51% interest in the joint venture was approximately $109 million.

Iconix Brand Group Inc. owns, licenses and markets a growing portfolio of consumer brands including CANDIE'S (R), BONGO (R), BADGLEY MISCHKA (R), JOE BOXER (R) RAMPAGE (R) MUDD (R), LONDON FOG (R), MOSSIMO (R) OCEAN PACIFIC (R), DANSKIN (R) ROCA WEAR(R), CANNON (R), ROYAL VELVET (R), FIELDCREST (R), CHARISMA (R), STARTER (R) and WAVERLY (R). In addition, Iconix owns an interest in the ARTFUL DODGER (R) and ED HARDY (R) brands. The Company licenses its brands to a network of leading retailers and manufacturers that touch every major segment of retail distribution from the luxury market to the mass market in both the U.S. and around the world. Iconix, through its in-house advertising, promotion and public relations agency, markets its brands to continually drive greater consumer awareness and equity.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. The statements that are not historical facts contained in this press release are forward looking statements that involve a number of known and unknown risks, uncertainties and other factors, all of which are difficult or impossible to predict and many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, uncertainty regarding the results of the Company's acquisition of additional licenses, continued market acceptance of current products and the ability to successfully develop and market new products particularly in light of rapidly changing fashion trends, the impact of supply and manufacturing constraints or difficulties relating to the Company's licensees' dependence on foreign manufacturers and suppliers, uncertainties relating to customer plans and commitments, the ability of licensees to successfully market and sell branded products, competition, uncertainties relating to economic conditions in the markets in which the Company operates, the ability to hire and retain key personnel, the ability to obtain capital if required, the risks of litigation and regulatory proceedings, the risks of uncertainty of trademark protection, the uncertainty of marketing and licensing acquired trademarks and other risks detailed in the Company's SEC filings, including the prospectus supplement relating to the offering. The words "believe," "anticipate," "expect," "confident," "will," "project," "provide," "guidance" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date the statement was made. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information: Jaime Sheinheit Investor Relations Iconix Brand Group 212.730.0030

Iconix Brand Group, Inc.

CONTACT: Jaime Sheinheit, Investor Relations, Iconix Brand Group,
+1-212-730-0030

Web Site: http://iconixbrand.com/

Enterprise Acquisition Corp. Files Supplement to Proxy Statement

BOCA RATON, Fla., Nov. 2 /PRNewswire-FirstCall/ -- Enterprise Acquisition Corp. (NYSE Amex, Units: "EST.U", Common Stock: "EST," Warrants: "EST.WS") ("Enterprise") announced today that it has filed a supplement to its definitive proxy materials (the "Supplement") relating to the previously announced proposed business combination with ARMOUR Residential REIT, Inc. ("ARMOUR"). The Supplement is available through the Securities and Exchange Commission's website at http://www.sec.gov/. Stockholders and warrantholders are urged to read this supplement carefully as it includes important information with respect to the proposed business combination.

As detailed in the Supplement, the Merger Agreement among Enterprise, ARMOUR and ARMOUR Merger Sub Corp., a Delaware corporation and a wholly-owned subsidiary of ARMOUR, has been amended to delete, as a condition to the closing of the merger, the requirement that Enterprise have at least $100 million in its trust account at the effective time of closing, after taking into account payment of certain expenses. Enterprise also announced that it had entered into additional forward contracts with institutional investors, bringing the aggregate number of shares subject to such forward contracts, and that will vote in favor of the merger at the special meetings, to approximately 5.2 million. Despite having removed such minimum cash requirement and entered into such forward contracts, as of November 2, 2009, Enterprise would need approximately 4.5 million additional votes in favor of the merger to consummate the merger. Enterprise continues to seek additional votes in favor of the proposals set forth below.

The special meetings will be held on Thursday, November 5, 2009 at 9:00 a.m. Eastern time at the offices of Akerman Senterfitt, One Southeast 3rd Avenue, Suite 2500, Miami, Florida 33131.

At the special meeting of stockholders, Enterprise stockholders will be asked to approve (i) amendments to the terms of its amended and restated certificate of incorporation to allow for the consummation of the proposed transaction with ARMOUR; (ii) the merger agreement with ARMOUR and the business combination contemplated by such merger agreement; and (iii) an increase from 30% to 50% the threshold contained in Enterprise's amended and restated certificate of incorporation regarding the amount of shares of common stock issued in Enterprise's initial public offering that may seek conversion without preventing a business combination from being consummated. In addition, at the special meeting of warrantholders, Enterprise warrantholders will be asked to approve an amendment to the warrant agreement to (i) increase the exercise price of Enterprise's warrants from $7.50 per share to $11.00 per share and (ii) extend the expiration date of the warrants from November 7, 2011 to November 7, 2013.

About Management

Upon consummation of the business combination, ARMOUR's investment team will be led by Co-Chief Executive Officers Scott J. Ulm and Jeffrey J. Zimmer. Mr. Ulm has 23 years of structured finance and debt capital markets experience, including mortgage-backed securities. Since 2005, Mr. Ulm has been Chief Executive Officer of Litchfield Capital Holdings, a structured finance manager. From 1986-2005, he held a variety of senior positions at Credit Suisse both in New York and London including Global Head of Asset-Backed securities, Head of United States and European Debt Capital Markets, and Global Co-Head of Collateralized Debt Obligations. While at Credit Suisse, Mr. Ulm was responsible for the underwriting and execution of more than $100 billion of mortgage and asset-backed securities.

Mr. Zimmer has worked in the mortgage securities market for 25 years. From September 2003 through March 2008 he was Chief Executive Officer of Bimini Capital Management, Inc., a publicly traded REIT which managed over $4 billion of agency mortgage assets, approximately $4 billion in short term repurchase liabilities, and $100 million in long term debt. Prior to 2003, he was a managing director at RBS/Greenwich Capital in the Mortgage-Backed and Asset-Backed Department where since 1990, he held various positions that included working closely with some of the nation's largest hedge funds, mortgage banks and investment management firms on various mortgage-backed securities investments. Mr. Zimmer was employed at Drexel Burnham Lambert in the institutional mortgage-backed sales area from 1984-1990.

Enterprise Acquisition Corp.

Located in Boca Raton, Florida, Enterprise Acquisition Corp. (http://www.enterpriseacq.com/) is a blank check company formed for effecting a merger, capital stock exchange, asset acquisition or other similar business combination with one or more operating businesses. The prospective target is not limited to a particular industry.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about Enterprise, ARMOUR and their combined business after completion of the proposed acquisition. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of Enterprise's and ARMOUR's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the failure of Enterprise stockholders to approve the merger agreement and the transactions contemplated thereby; the number and percentage of Enterprise's stockholders voting against the acquisition and electing conversion rights; changing interpretations of generally accepted accounting principles; continued compliance with government regulations; legislation or regulatory environments; cyclical business trends; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks detailed in Enterprise's filings with the SEC. The information set forth herein should be read in light of such risks. Neither Enterprise nor ARMOUR assumes any obligation to update the information contained in this press release.

Enterprise and ARMOUR caution that the foregoing list of factors is not exclusive. Additional information concerning these and other risk factors is contained in Enterprise and ARMOUR's filings with the SEC. All subsequent written and oral forward-looking statements concerning Enterprise and ARMOUR, the merger, the related transactions or other matters and attributable to Enterprise and ARMOUR or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Enterprise and ARMOUR caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Enterprise and ARMOUR do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based.

Additional Information and Where to Find It

This communication is being made in respect of the proposed business combination involving Enterprise and ARMOUR. In connection with the proposed transaction, ARMOUR filed Amendment No. 3 to the Registration Statement on Form S-4 with the SEC on October 9, 2009, and the definitive Proxy Statement/Prospectus for Enterprise was mailed to stockholders and warrantholders of Enterprise on October 14, 2009. INVESTORS AND SECURITY HOLDERS OF ENTERPRISE ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the definitive Proxy Statement/Prospectus and other documents filed with the SEC by Enterprise and ARMOUR through the website maintained by the SEC at http://www.sec.gov/. Free copies of the definitive Proxy Statement/Prospectus and other documents filed with the SEC can also be obtained by directing a request to Enterprise Acquisition Corp., 6800 Broken Sound Parkway, Boca Raton, Florida 33487 Attention: Investor Relations.

Participants in Solicitation

Enterprise and ARMOUR and their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Enterprise's directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2008, which was filed with the SEC on March 16, 2009, and information regarding ARMOUR's directors and executive officers is available in the definitive Proxy Statement/Prospectus filed with the SEC on October 13, 2009 by Enterprise and ARMOUR. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the definitive Proxy Statement/Prospectus and other relevant materials filed with the SEC.

Investor Contact Ezra Shashoua Chief Financial Officer Enterprise Acquisition Corp. (561) 988-1700

Enterprise Acquisition Corp.

CONTACT: Investors; Ezra Shashoua, Chief Financial Officer, Enterprise
Acquisition Corp., +1-561-988-1700

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

FDA Transparency Task Force to Hold 2nd Public Meeting on Ensuring That Agency Information is Useful, Understandable, AccessibleFDA NOTE TO CORRESPONDENTS

SILVER SPRING, Md., Nov. 2 /PRNewswire-USNewswire/ -- The U.S. Food and Drug Administration will seek comments on three specific issues related to transparency at the agency during a daylong public meeting on Tuesday, Nov. 3, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090824/FDALOGO)

The meeting is scheduled for 9 a.m. to 3 p.m. at the National Transportation Safety Board Conference Center, 429 L'Enfant Plaza, S.W., Washington, D.C., 20594. Directions to the NTSB Conference Center are at http://www.ntsb.gov/events/newlocation.htm

The purpose of the meeting is to receive detailed comments on the following three specific issues related to transparency at the FDA:

-- Early communication about emerging safety issues concerning FDA-regulated products -- Disclosure of information about product applications that are abandoned, i.e., no work is being done or will be undertaken to have the application approved, or withdrawn by the applicant before approval -- Communication of agency decisions about pending product applications.

The FDA formed an internal Transparency Task Force in response to the Obama Administration's commitment to achieve "an unprecedented level of openness in Government." The Task Force is developing recommendations for making useful and understandable information about FDA activities and decision-making more readily available in a timely manner and in a user-friendly format, while appropriately protecting confidential information.

The task force held its first daylong meeting in June 2009.

Those interested can submit electronic or written comments by Nov. 6, 2009. Submit electronic comments to http://www.regulations.gov/. Submit written comments to the Division of Dockets Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Room 1061, Rockville, MD 20852.

There is no fee to register for the public meeting. Registration on the day of the meeting will be permitted on a space-available basis, beginning at 7:30 a.m. Those who cannot attend the meeting can view it via live Webcast at http://www.capitolconnection.net/capcon/fda/110309/FDAlive.htm

The Webcast will be archived on the FDA Transparency Task Force page http://www.fda.gov/AboutFDA/WhatWeDo/FDATransparencyTaskForce/default.htm

A media room with dial-up Internet access will be provided. Please note there is no wireless service within the NTSB Conference Center.

For more information Hypothetical Case Studies for November 3 Public Meeting on Transparency

http://www.fda.gov/AboutFDA/WhatWeDo/FDATransparencyTaskForce/ucm187750.ht m

November 3 Public Meeting on Transparency http://www.fda.gov/AboutFDA/WhatWeDo/FDATransparencyTaskForce/ucm188633.htm

Media Inquiries: Raymond Formanek Jr., 301-796-4677; raymond.formanek@fda.hhs.gov

Other Inquiries: Afia Asamoah, 301-796-4625; afia.asamoah@fda.hhs.gov

Photo: http://www.newscom.com/cgi-bin/prnh/20090824/FDALOGO
PRN Photo Desk, photodesk@prnewswire.com U.S. Food and Drug Administration

CONTACT: Raymond Formanek Jr. of the FDA, +1-301-796-4677,
raymond.formanek@fda.hhs.gov

Web Site: http://www.fda.gov/

Quest Diagnostics To Speak At The Oppenheimer 20th Annual Healthcare Conference

MADISON, N.J., Nov. 2 /PRNewswire-FirstCall/ -- Quest Diagnostics Incorporated , the world's leading provider of diagnostic testing, information and services, announced that it is scheduled to speak at the Oppenheimer 20th Annual Healthcare Conference in New York City. The presentation is scheduled for Wednesday, November 4, 2009 at 11:25 a.m. Eastern Time.

During the conference, the company will reaffirm its 2009 guidance for revenue growth to approximate 3%, operating income to exceed 18% of revenues, and diluted earnings per share from continuing operations to range from $3.80 to $3.85.

The presentation will be webcast live during the conference and will be available to registered investors on the following site: http://www.veracast.com/webcasts/opco/healthcare09/75206492.cfm and to the public on http://www.questdiagnostics.com/investor. In addition, the archived webcast will be available one hour after the conclusion of the live event and will remain available until December 4, 2009.

Quest Diagnostics is the world's leading provider of diagnostic testing, information and services that patients and doctors need to make better healthcare decisions. The company offers the broadest access to diagnostic testing services through its network of laboratories and patient service centers, and provides interpretive consultation through its extensive medical and scientific staff. Quest Diagnostics is a pioneer in developing innovative diagnostic tests and advanced healthcare information technology solutions that help improve patient care. Additional company information is available at http://www.questdiagnostics.com/.

The statements in this press release which are not historical facts may be forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management's current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, changes in government regulations, changing relationships with customers, payers, suppliers and strategic partners and other factors discussed in "Business," in "Risk Factors," "Cautionary Factors that May Affect Future Results," "Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk" in the company's 2008 Annual Report on Form 10-K and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk" and "Risk Factors" in the company's 2009 Quarterly Reports on Form 10-Q and other items throughout the Form 10-K and the company's 2009 Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Contacts: Kathleen Valentine (Investors): 973-520-2900 Wendy Bost (Media): 973-520-2800

Quest Diagnostics

CONTACT: Kathleen Valentine (Investors), +1-973-520-2900; or Wendy Bost
(Media), +1-973-520-2800

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

Jose Cuervo Commemorates Ancestry, Prestige, Tradition and Historic Milestone With Luxury Tequila OfferingTenth Generation of Jose Cuervo Descendants Celebrate with Release of Limited Edition, Ultra-Premium Extra Anejo Tequila

NEW YORK, Nov. 2 /PRNewswire-FirstCall/ -- Jose Cuervo, the world's most renowned Tequila company, today celebrates two and a half centuries of family lineage dedicated to making the world's finest Tequila with the introduction of Jose Cuervo® 250 Aniversario(TM). This limited-edition Tequila commemorates the historic birth of Tequila production and the establishment of 10 generations of Cuervo family tradition: on November 2, 1758 Don Jose Antonio de Cuervo obtained the first plot of land on which to cultivate Agave.

"Jose Cuervo 250 Aniversario celebrates the passion and dedication 10 generations of the Cuervo family have brought to the craft of Tequila-making since the original land grant was given to us in 1758," said Juan Domingo Beckmann, Executive Director, Casa Cuervo and the 10th generation of Jose Cuervo descendants. "This superior, rare Tequila, which honors the Jose Cuervo family motto of ancestry, prestige and tradition, will be savored by those who purchase or receive one of our individually numbered bottles."

In anticipation of the 250th anniversary, expert Jose Cuervo jimadores planted Blue Agave on the same land obtained in 1758 and used these estate-grown plants exclusively in the production of Jose Cuervo 250 Aniversario. This precision was utilized to ensure every decanter maintains a direct link to this historic event and pays tribute to the centuries of labor and family passion that led to the creation of an industry.

Double-cask Method Results in Unrivaled Clarity, Silkiness and Taste

Jose Cuervo 250 Aniversario is a 100 percent blue agave Extra Anejo Tequila blended from the most select tequilas in the family's reserve and aged in a unique double-cask method. The best of these Extra Anejos, aged in toasted new American Oak barrels for a minimum of three years, are selected by the master distiller and blended together to achieve a superior tequila. The distinctive blend is then finished for 10 months in Sherry casks originating from Spain.

This method further symbolizes the historical significance of Jose Cuervo 250 Aniversario -- a new world liquid enhanced by the old world's distillation practices inherited from the Spaniards. This unique double-cask technique imposes a limited product yield, increasing the rarity of the warm, deep, auburn hue liquid.

In a recent taste test conducted by the Academia Mexicana de Catedores de Tequila (Mexican Academy of Tequila Masters), Jose Cuervo 250 Aniversario was deemed one of the best Tequila's ever produced. The Academy considered it the best in terms of complex flavor, bold character, full body and rich finish.

Jose Cuervo 250 Aniversario's initial aromas are peppery with dried fruit overtones. Following aeration, the aroma becomes elegant, dry and earthy with hints of rich butterscotch and vanilla. The first sips continue to reveal the richness and the refined flavors of Agave notes, sweet honey, cocoa and dark chocolate. Enjoying the Tequila neatly in a Riedel tasting glass is recommended to fully appreciate the character and full flavor profile.

Luxurious Packaging and Exclusively Numbered Bottles

Jose Cuervo 250 Aniversario's elegant and dramatic decanter was inspired by the original Damajuana, the first glass bottle used by Jose Cuervo to ship Tequila to towns throughout Mexico. Casa Cuervo maintains the largest private collection in the world of these antique, rare glass vessels. The decanters are packaged in elegant oak gift boxes for safe keeping. Each exquisite decanter of Jose Cuervo 250 Aniversario will have its sequential number etched into the glass, certifying the product's rarity and authenticity.

The limited edition Jose Cuervo 250 Aniversario will be available in the U.S. for a suggested retail price $2,250.00 for a 750 ml bottle.

About Jose Cuervo

Jose Cuervo is the largest producer of tequila throughout Mexico and around the world. The Jose Cuervo portfolio of tequilas includes Jose Cuervo Especial Gold, the number one tequila worldwide, Jose Cuervo Especial Silver, Jose Cuervo Black Medallion, Jose Cuervo Tradicional, Jose Cuervo Platino, Jose Cuervo Reserva de la Familia, Jose Cuervo Golden Margaritas, Authentic Jose Cuervo Margaritas and Jose Cuervo Margarita Mix. For more information, visit http://www.josecuervo.com/.

About DIAGEO

Jose Cuervo Tequilas are imported and marketed in the United States by Diageo North America, a subsidiary of Diageo plc. Diageo (Dee-AH-Gee-O) is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, Crown Royal, Beaulieu Vineyard and Sterling Vineyards wines. Diageo is a global company, trading in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands and performance, visit us at http://www.diageo.com/. For our global resource that promotes responsible drinking through the sharing of best practice tools, information and initiatives, visit DRINKiQ.com.

When enjoying this new product, and all its products, Diageo reminds its adult consumers to drink responsibly. As the world's largest spirits, wine and beer company, Diageo is committed to social responsibility and the responsible marketing of its brands. The Diageo Marketing Code is one of the most stringent in the industry. Diageo is a founding member and major supporter of The Century Council, a not-for-profit organization whose programs are designed to combat drunk driving and underage drinking.

Celebrating life, every day, everywhere, responsibly. Media Contacts: Elizabeth Balduino Greg Leonard Taylor Diageo 212-714-5726 646-223-2111 ebalduino@taylorpr.com greg.leonard@diageo.com

Diageo

CONTACT: Elizabeth Balduino, Taylor, +1-212-714-5726,
ebalduino@taylorpr.com; or Greg Leonard, Diageo, +1-646-223-2111,
greg.leonard@diageo.com

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

page 1     page 2     page 3     page 4     page 5     page 6     page 7     page 8     page 9     page 10     page 11     page 12     page 13    

News archive of November 2009
1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30