RELM Wireless to Host Third Quarter Conference Call on Thursday, November 12, 2009

WEST MELBOURNE, Fla., Nov. 3 /PRNewswire-FirstCall/ -- RELM Wireless Corporation (NYSE Amex: RWC), which designs, manufactures and markets two-way radio communications equipment, will host an investor conference call to discuss its operating results for the third quarter and first nine months of 2009 on Thursday, November 12, 2009 at 9:00 am EST. On the call will be David Storey, President and Chief Executive Officer, and William Kelly, Executive Vice President and Chief Financial Officer.

The Company will release its third quarter and nine-month operating results after the close of stock market trading on Tuesday, November 10, 2009.

Shareholders and interested parties may participate in the conference call by dialing 800-860-2442 (international and local participants dial 412-858-4600) and asking to be connected to the "RELM Wireless Corporation Conference Call". The call will also be webcast at http://www.relm.com/. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the webcast. An online archive of the webcast will be available on the Company's website for 30 days following the call at http://www.relm.com/. A replay of the conference call will be available one hour after completion of the call until Thursday, November 19, 2009 at 5:00 pm EST by dialing 877-344-7529 (international/local participants dial 412-317-0088) and entering conference I.D. # 435360.

About RELM Wireless

As an American Manufacturer for more than 60 years, RELM Wireless Corporation has produced high-specification two-way communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies, as well as radios for use in a wide range of commercial and industrial applications. Advances include a broad new line of leading digital twoway radios compliant with APCO Project 25 specifications. RELM's products are manufactured and distributed worldwide under BK Radio and RELM brand names. The Company maintains its headquarters in West Melbourne, Florida and can be contacted through its web site at http://www.relm.com/ or directly at 18008212900. The Company's common stock trades on the NYSE Amex market under the symbol "RWC".

RELM Wireless Corporation

CONTACT: William P. Kelly, EVP & CFO, RELM Wireless Corporation,
+1-321-984-1414; or Investor Relations Contact: RJ Falkner & Company, Inc., R
Jerry Falkner, CFA, +1-800-377-9893, info@rjfalkner.com

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

IntercontinentalExchange Reports Record Quarterly Revenues of $256 Million, up 27%; Diluted EPS Up 13% to $1.18 for Third Quarter- Operating Income up 17% to $140 MM - Record Quarterly Futures Volume - OTC Energy ADC of $1.25 MM - $3.5 Trillion in CDS Cleared to Date Globally

ATLANTA, Nov. 3 /PRNewswire-FirstCall/ -- IntercontinentalExchange, Inc. , a leading operator of regulated global exchanges, clearing houses and over-the-counter (OTC) markets, today reported record consolidated revenues of $256 million in the third quarter of 2009, an increase of 27% from third quarter 2008 revenues of $201 million. Consolidated net income for the third quarter grew 16% to $87 million from $75 million in the prior third quarter. Diluted earnings per share (EPS) in the third quarter were $1.18, up 13% from third quarter 2008 diluted EPS of $1.04.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090727/CL51999LOGO )

Said ICE Chairman and CEO Jeffrey C. Sprecher: "ICE has brought innovation to the financial services sector to help ensure the health of the markets we serve, while maintaining a focus on growth. Over the past year, our markets have shown resilience as customers worldwide increasingly demand the trading and risk management services we offer. We believe that the financial market reforms currently under way will provide greater certainty to market participants, as well as additional opportunities for ICE to leverage the valuable exchange, technology and clearing infrastructure that it has developed over the past decade."

ICE CFO Scott Hill added: "Our results in the third quarter reflect strong performance in our core business, as well as ongoing investment in and successful execution of newer initiatives, such as OTC clearing. In addition to top-line growth, our operating margins again improved sequentially, and we delivered increased earnings and cash flow. Our consistent cash generation, strong balance sheet and disciplined investment throughout the market downturn position us well to deliver increasing value to our customers and shareholders."

Third Quarter 2009 Results

ICE's third quarter 2009 consolidated revenues increased 27% to $256 million, compared to $201 million in the third quarter of 2008. Consolidated transaction and clearing fee revenues in the quarter grew 34% to $229 million, from $171 million in the third quarter of 2008. The increase in transaction and clearing fee revenues was driven primarily by new products, strong trading volume in ICE's futures and OTC energy segments, continued growth since the launch of ICE Clear Europe in November 2008 and the addition of OTC credit derivatives execution, processing and clearing services.

Transaction and clearing fee revenues in ICE's futures segment totaled $104 million in the third quarter of 2009, an increase of 28% from $81 million in the same period in 2008. Average daily volume (ADV) for ICE's futures exchanges increased 24% from the same period in the prior year to a record 1,062,429 contracts, and total volume in the quarter rose to a record 68 million contracts. ICE Futures Europe ADV was a record 676,020 contracts, an increase of 19% from the third quarter of 2008, and total volume reached a record 43.3 million contracts. The rate per contract (RPC) for ICE Futures Europe in the third quarter of 2009 was $1.53.

ICE Futures U.S. ADV was 375,772 contracts, which was 34% higher than third quarter 2008 ADV of 280,317 contracts. RPC for ICE Futures U.S. agricultural futures and options contracts was $2.08, and RPC for financial contracts averaged $0.89 in the third quarter of 2009. ADV for ICE Futures Canada was 10,637 contracts during the third quarter, an increase of 12% compared to 9,526 contracts in the year-ago period. ICE Futures U.S. and ICE Futures Canada recorded third quarter volume of 24.0 million and 0.7 million contracts, respectively.

Third quarter 2009 transaction and clearing fee revenues in ICE's global OTC segment increased 39% to $125 million, compared to $90 million for the comparable period in 2008. Average daily commissions (ADC) for ICE's OTC energy business were $1.25 million, an increase of 12% from $1.11 million in the same period of 2008. Cleared contracts accounted for 96% of OTC energy contract volume during the third quarter of 2009. In ICE's credit derivative markets, third quarter transaction and clearing fee revenues were $43 million, up 6% versus the same period in 2008 on a pro-forma basis. ICE acquired Creditex in August 2008.

Consolidated market data revenues were $25 million in the third quarter of 2009, a decline of 3% from the same period in 2008. Consolidated other revenues were $3 million during the third quarter of 2009, compared to $5 million in the third quarter of 2008.

Consolidated operating expenses increased 41% to $116 million in the quarter, compared to $82 million in third quarter of 2008. This increase is primarily attributable to a $27 million rise in expenses relating to ICE's credit derivatives execution, processing and clearing initiatives, including compensation expenses and amortization of intangibles. After acquiring Creditex in August 2008, ICE acquired The Clearing Corporation (TCC) in March 2009 and launched credit default swaps (CDS) clearing via ICE Trust and ICE Clear Europe in March and July 2009, respectively. Though the credit business continued to require heavy investment common to start-up initiatives, the underlying operating margins improved, and the business was cash positive in the quarter. The expense growth was also due, to a lesser extent, to ICE recording a full quarter of amortization expense in the third quarter of 2009 for its Russell license agreement totaling $6.5 million, compared to $685,000 in the prior third quarter.

Consolidated operating income in the quarter grew 17% to $140 million, compared to third quarter 2008 operating income of $119 million. Operating margin was 55%, compared to 54% in the second quarter of 2009, and 59% in the prior third quarter.

The effective tax rate for the quarter was 36.8%, compared to 36.6% for the third quarter of 2008.

First Nine Months of 2009 Results

Consolidated revenues in the first nine months of 2009 were $738 million, an increase of 22% from same period of 2008. Futures volumes in the first three quarters grew 10% to 195.2 million contracts, driving consolidated futures transaction and clearing fee revenue growth of 16% compared to same period of 2008. ICE's global OTC transaction revenues were $348 million in the first nine months of the year, an increase of 40% from the same period in 2008, driven primarily by the addition of revenues related to Creditex and CDS clearing. ICE's OTC energy business delivered ADC of $1.16 million in the first nine months of the year, a decline of 4% from the same period of 2008. Consolidated market data revenues were $76 million, in-line with the first three quarters of 2008. Consolidated operating margins were 53% for the first nine months of 2009.

For the first nine months of 2009, consolidated net income was $231 million on a GAAP basis, with EPS of $3.13. During the first quarter of 2009, consolidated operating expenses also included pre-tax charges of $11 million related to ICE's acquisition of TCC and other restructuring charges. In addition, in the second quarter of 2009, ICE took a pre-tax, non-cash impairment charge of $9 million related to its investment in the National Commodity Derivatives Exchange in India (NCDEX). Excluding these first quarter charges and the NCDEX impairment in the second quarter of 2009, net of taxes, adjusted consolidated net income for the first three quarters of 2009 was $251 million and adjusted diluted EPS were $3.39, compared to $252 million and $3.51 for the first nine months of 2008. Adjusted consolidated net income and diluted EPS declined 1% and 3%, respectively, compared to the first nine months of 2008.

Cash flows from operations totaled $291 million in the first nine months of 2009, compared to $299 million in the same period of 2008. Capital expenditures and capitalized software development costs totaled $29 million during the first nine months of 2009, down $1 million from the same period in 2008.

Unrestricted cash and investments were $424 million as of September 30, 2009, up $134 million from December 31, 2008. At the end of the quarter, ICE had $330 million in outstanding debt.

Guidance and Additional Information -- ICE had 821 employees as of September 30, 2009. By the end of the year, headcount is expected to increase 1% to 2% as certain contractors transition to full time status at TCC. This guidance excludes any personnel additions relating to merger and acquisition activity in the remainder of 2009. -- ICE's diluted share count for the fourth quarter of 2009 is expected to be in the range of 74.2 million to 74.8 million weighted average shares outstanding, and the diluted share count for fiscal year 2009 is expected to be in the range of 73.6 million to 74.6 million weighted average shares outstanding. -- ICE's remaining capacity in its share repurchase program is $200 million. Earnings Conference Call Information

ICE will hold a conference call today, November 3, at 8:30 a.m. ET to review its third quarter 2009 financial results. A live audio webcast of the earnings call will be available on the company's website at http://www.theice.com/ under About ICE/Investors & Media. Participants may also listen via telephone by dialing (800) 341-3130 if calling from the United States, or (913) 981-5517 if dialing from outside of the United States. For participants on the telephone, please place your call ten minutes prior to the start of the call.

The call will be archived on the company's website for replay. A telephone replay of the earnings call will also be available at (888) 203-1112 for callers within the United States and at (719) 457-0820 for callers outside of the United States. The passcode for the replay is 2546103.

Historical futures volume and OTC commission data can be found at: http://ir.theice.com/supplemental.cfm About IntercontinentalExchange

IntercontinentalExchange® operates leading regulated exchanges, trading platforms and clearing houses serving the global markets for agricultural, credit, currency, emissions, energy and equity index markets. ICE Futures Europe® hosts trade in half of the world's crude and refined oil futures. ICE Futures U.S.® and ICE Futures Canada® list agricultural, currency and Russell Index markets. ICE® offers trade execution and processing for the credit derivatives markets through Creditex® and ICE Link(TM), respectively, and CDS clearing through ICE Trust(TM) and ICE Clear Europe®. A component of the Russell 1000® and S&P 500 indexes, ICE serves customers in more than 50 countries and is headquartered in Atlanta, with offices in New York, London, Chicago, Winnipeg, Calgary, Houston and Singapore. http://www.theice.com/

The following are trademarks of IntercontinentalExchange, Inc. and/or its affiliated companies: IntercontinentalExchange, ICE, ICE and block design, ICE Futures, ICE Futures Canada, ICE Futures Europe, ICE Futures U.S., ICE Trust U.S., ICE Clear, ICE Clear Europe, ICE Clear U.S., ICE Clear Canada, ICE Link and Creditex. All other trademarks are the property of their respective owners. For more information regarding registered trademarks owned by IntercontinentalExchange, Inc. and/or its affiliated companies, see https://www.theice.com/terms.jhtml.

Forward-Looking Statements

This press release may contain "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding IntercontinentalExchange's business that are not historical facts are forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. These statements are not guarantees of future performance and actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statement. The factors that might affect our performance include, but are not limited to: our business environment; conditions in global financial markets; increasing competition and consolidation in our industry; changes in domestic and foreign regulations or government policy; our ability to minimize the risks associated with operating multiple clearing houses in multiple jurisdictions; technological developments, including clearing developments; the success of our initiative to clear CDS transactions; the success of our global clearing strategy; the accuracy of our cost estimates and expectations; our belief that cash flows will be sufficient to service our debt and fund our working capital needs and capital expenditures at least through the end of 2010; our ability to increase the connectivity to our marketplace; maintaining existing market participants and attracting new ones; our ability to develop new products and services and pursue strategic acquisitions and alliances on a timely, cost-effective basis; protecting our intellectual property rights; not violating the intellectual property rights of others; potential adverse litigation results; our belief in our electronic platform and disaster recovery system technologies; our ability to gain access to comparable products and services if our key technology contracts were terminated; and the risk that acquired businesses will not be integrated successfully or the revenue opportunities, cost savings and other anticipated synergies from mergers may not be fully realized or may take longer to realize than expected. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2008, as filed with the SEC on February 11, 2009. These filings are also available in the Investors & Media section of our website. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Except for any obligations to disclose material information under the Federal securities laws, ICE undertakes no obligation to publicly update any forward-looking statements to reflect events or circumstances after the date of this press release.

Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited) Nine Months Ended Three Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenues: Transaction and clearing fees, net $655,301 $515,070 $228,868 $170,974 Market data fees 76,490 75,984 24,891 25,771 Other 6,443 14,764 2,505 4,699 ----- ------ ----- ----- Total revenues 738,234 605,818 256,264 201,444 ------- ------- ------- ------- Operating expenses: Compensation and benefits 166,231 102,788 55,928 41,186 Professional services 32,047 22,989 9,866 9,089 Selling, general and administrative 68,457 47,643 22,613 17,626 Depreciation and amortization 82,750 36,191 27,868 14,401 ------ ------ ------ ------ Total operating expenses 349,485 209,611 116,275 82,302 ------- ------- ------- ------ Operating income 388,749 396,207 139,989 119,142 ------- ------- ------- ------- Other income (expense): Interest and investment income 1,252 9,141 298 3,297 Interest expense (16,534) (13,614) (4,374) (4,438) Other income (expense), net (9,163) 606 1,493 281 ------- --- ----- --- Total other expense, net (24,445) (3,867) (2,583) (860) -------- ------- ------- ----- Income before income taxes 364,304 392,340 137,406 118,282 Income tax expense 133,142 140,223 50,524 43,319 ------- ------- ------ ------ Net income $231,162 $252,117 $86,882 $74,963 -------- -------- ------- ------- Net loss attributable to noncontrolling interest 572 - 572 - --- --- --- --- Net income attributable to IntercontinentalExchange, Inc. $231,734 $252,117 $87,454 $74,963 -------- -------- ------- ------- Earnings per share attributable to IntercontinentalExchange, Inc. common shareholders: Basic $3.18 $3.56 $1.20 $1.05 ----- ----- ----- ----- Diluted $3.13 $3.51 $1.18 $1.04 ----- ----- ----- ----- Weighted average common shares outstanding: Basic 72,887 70,816 73,137 71,483 ------ ------ ------ ------ Diluted 73,949 71,728 74,204 72,424 ------ ------ ------ ------ Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited) Sept. 30, Dec. 31, 2009 2008 ---- ---- ASSETS Current assets: Cash and cash equivalents $391,629 $283,522 Short-term restricted cash 76,402 30,724 Short-term investments 2,004 3,419 Customer accounts receivable, net 132,559 81,248 Margin deposits and guaranty funds 16,427,943 12,117,820 Income taxes receivable 37,419 180 Prepaid expenses and other current assets 26,634 35,675 ------ ------ Total current assets 17,094,590 12,552,588 ---------- ---------- Property and equipment, net 86,590 88,952 ------ ------ Other noncurrent assets: Goodwill 1,476,810 1,434,816 Other intangible assets, net 718,265 728,855 Long-term restricted cash 128,223 105,740 Long-term investments 30,326 3,065 Cost method investments 15,385 32,724 Other noncurrent assets 11,549 12,841 ------ ------ Total other noncurrent assets 2,380,558 2,318,041 --------- --------- Total assets $19,561,738 $14,959,581 ----------- ----------- LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $59,772 $49,663 Accrued salaries and benefits 33,371 41,096 Current portion of licensing agreement 14,536 12,686 Current portion of long-term debt 96,000 46,875 Income taxes payable 34,850 17,708 Margin deposits and guaranty funds 16,427,943 12,117,820 Other current liabilities 20,914 25,794 ------ ------ Total current liabilities 16,687,386 12,311,642 ---------- ---------- Noncurrent liabilities: Noncurrent deferred tax liability, net 208,760 194,301 Long-term debt 234,000 332,500 Noncurrent portion of licensing agreement 76,375 82,989 Other noncurrent liabilities 17,756 24,901 ------ ------ Total noncurrent liabilities 536,891 634,691 ------- ------- Total liabilities 17,224,277 12,946,333 ---------- ---------- Redeemable stock put - 1,068 --- ----- EQUITY IntercontinentalExchange, Inc. shareholders' equity: Common stock 773 765 Treasury stock, at cost (345,958) (355,520) Additional paid-in capital 1,653,277 1,608,344 Retained earnings 964,871 732,752 Accumulated other comprehensive income 29,321 19,890 ------ ------ Total IntercontinentalExchange, Inc. shareholders' equity 2,302,284 2,006,231 Noncontrolling interest in consolidated subsidiaries 35,177 5,949 ------ ----- Total equity 2,337,461 2,012,180 --------- --------- Total liabilities and equity $19,561,738 $14,959,581 ----------- ----------- Non-GAAP Financial Measures and Reconciliation

ICE provides adjusted net income and adjusted earnings per common share as additional information regarding our operating results. ICE uses these non-GAAP measures internally to evaluate the company's performance and in making financial and operational decisions. ICE believes that its presentation of these measures provides investors with greater transparency and supplemental data relating to its financial condition and results of operations. In addition, ICE believes the presentation of these measures is useful for period-to-period comparison of results because the charges identified below do not reflect historical operating performance. These measures are not in accordance with, or an alternative to, U.S. generally accepted accounting principles, or GAAP, and may be different from non-GAAP measures used by other companies. Investors should not rely on any single financial measure when evaluating our business. ICE strongly recommends that investors review the GAAP financial measures included in this press release and its Quarterly Report on Form 10-Q, including ICE's consolidated financial statements and the notes thereto.

When viewed in conjunction with ICE's GAAP results and the accompanying reconciliation, ICE believes adjusted net income and adjusted earnings per share provide a more complete understanding of factors affecting our business than GAAP measures alone. ICE management uses adjusted net income and adjusted earnings per share to evaluate operating performance and management decisions made during the reporting period by excluding certain items that the company believes have less significance on, or do not impact, the day-to-day performance of the business. ICE's internal budgets are based on adjusted net income and adjusted earnings per share, and the company reports its adjusted net income and adjusted earnings per share to ICE's Audit Committee and its Board of Directors. In addition, adjusted net income is one of the criteria considered in determining performance-based compensation. ICE understands that analysts and investors regularly rely on non-GAAP financial measures, such as adjusted net income and adjusted earnings per share, to assess operating performance. ICE uses adjusted net income and adjusted earnings per share because they more clearly highlight trends in the business that may not otherwise be apparent when relying solely on GAAP financial measures, since adjusted net income and adjusted earnings per share eliminates from the company's results specific financial items that have less bearing on ICE's operating performance.

Nine Months Ended September 30, 2009 ------------------ (In thousands, except per share amounts) Net income attributable to ICE $231,734 Add: NCDEX impairment charge 9,276 Add: Transaction costs incurred for the TCC acquisition 5,609 Add: First quarter of 2009 employee termination costs from Creditex acquisition 2,902 Add: Costs incurred to vacate office space 2,980 Less: Income tax expense for non recurring expenses (1,774) ------ Adjusted net income $250,727 ======== Earnings per share attributable to ICE common shareholders: Basic $3.18 ===== Diluted $3.13 ===== Adjusted earnings per share attributable to ICE common shareholders: Adjusted basic $3.44 ===== Adjusted diluted $3.39 ===== Weighted average common shares outstanding: Basic 72,887 ====== Diluted 73,949 ======

The tax impact of the NCDEX impairment loss was additional tax expense of $1.8 million due to the recording of a valuation allowance, related to the deferred tax benefit recorded in the three months ended December 31, 2008, which was in excess of the tax benefit recorded in the nine months ended September 30, 2009.

Photo: http://www.newscom.com/cgi-bin/prnh/20090727/CL51999LOGO IntercontinentalExchange

CONTACT: Investor Contacts: Kelly Loeffler, VP, Investor Relations &
Corp. Communications, +1-770-857-4726, kelly.loeffler@theice.com, or Sarah
Stashak, Director, Investor & Public Relations, +1-770-857-0340,
sarah.stashak@theice.com, both of IntercontinentalExchange

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

Ness Technologies Announces Third Quarter 2009 Financial ResultsAll-Time Record Operating Cash Flow, EPS In-Line With Company Expectations on Lower Revenue Mainly due to European Recession; Ness to Streamline Selected Operations in Q4, Preparing for Growth in 2010

HACKENSACK, New Jersey, November 3 /PRNewswire-FirstCall/ -- Ness Technologies, Inc. , a global provider of IT services and solutions, today announced financial results for the quarter ended September 30, 2009.

Third Quarter 2009 Highlights: - On a GAAP basis: - Revenues were $132.7 million, down 19% year-over-year mainly due to weaker than expected revenues in Europe. Approximately 30%, or $9.3 million, of the decrease was due to foreign currency translation effects on non-dollar revenues. - Operating income was $2.1 million, down 91% compared to the third quarter last year (which included a net gain in operating income of $18.4 million from the sale of the company's Israeli SAP sales and Distribution operations). - Net income was $0.8 million, down 95% year-over-year. - Diluted net earnings per share were $0.02, compared to $0.41 in the third quarter of 2008. - On a non-GAAP basis, excluding stock-based compensation expenses, amortization of intangibles and, in the comparative period, a gain related to the sale of the company's Israeli SAP sales and distribution operations in the third quarter of last year, net of related expenses and other charges (1): - Operating income was $5.1 million, down 58% year-over-year. - Net income was $3.3 million, down 65% year-over-year. - Diluted net earnings per share were $0.09, compared to $0.24 in the third quarter of 2008. - Cash and cash equivalents and short-term bank deposits were $71.1 million as of September 30, 2009, up sequentially from $59.2 million as of June 30, 2009. - Operating cash flows for the quarter were an all-time third quarter record $16.1 million, with record year-to-date operating cash flows of $34.5 million. - Backlog as of September 30, 2009 was $655 million, down 4% sequentially and 14% year-over-year. Excluding the negative effect of foreign currency translation effects from the stronger U.S. dollar, backlog was down 11% year-over-year. - Headcount was approximately 7,780 as of September 30, 2009.

"The global economic downturn continued to impact our business in the third quarter," said Sachi Gerlitz, president and chief executive officer of Ness Technologies. "We continue to see signs of recovery, our pipeline continues to perk up and our focus remains on execution - including streamlining the parts of the business that were most affected by the recession such as Europe and Asia Pacific and investing in sales activity. A number of recent large wins give us confidence in improved conversion of pipeline to revenue in 2010 and returning to top line and bottom line growth."

- Results by operating segment: - The company's Software Product Engineering segment, which provides outsourced software product research and development services to companies who build or rely on software to generate revenues, continued to perform well in the third quarter, with solid operating margins on flat sequential revenues. - The company's System Integration and Application Development segment continued to be impacted significantly in the third quarter by the recession, especially in Europe and Asia Pacific, and higher than expected costs in certain projects. - The company's Software Distribution segment, which resells third-party enterprise software licenses, underperformed in the third quarter, turning in an operating loss on a moderate sequential revenue decline, largely due to the continued deferral of large software licensing deals in Europe.

"We delivered record operating cash flows," said Ofer Segev, executive vice president and chief financial officer. "Our balance sheet is strong, with an increasing cash balance and minimal net debt, and our liquidity is excellent. We are continuing to control costs very effectively, and we plan to fix certain small unprofitable operations in the fourth quarter - which will make us stronger in the future."

Business Outlook

The lingering recession is affecting the company's top line, especially in Europe. The resulting revenue contraction has also had a direct impact on the company's earnings.

Ness is lowering its 2009 full year guidance of revenues to the range of $540 million to $550 million to account for the company's revenue shortfall in the third quarter and anticipated top line pressure in the fourth quarter, both primarily attributable to the protracted deep economic recession in Europe.

This revenue level implies diluted earnings per share at the lower end of our prior guidance for the "business as usual" scenario for the fourth quarter. As the company prepares for a resumption of growth in 2010, it now intends to restructure some small business units which are not contributing due to their small scale, and also to restructure certain projects in order to expand profitability in the future. The company expects to take a restructuring charge of $7 to $9 million. This charge is excluded from the company's non-GAAP guidance.

Therefore, the company is lowering its diluted net earnings per share in the range shown in the reconciliation table below:

Full year diluted net earnings (loss) per share ($) Low High GAAP basis $ (0.14) $ (0.04) Stock-based compensation; amortization of intangible assets; insurance settlement in respect of 2007 arbitration expense, net of related expenses; severance expenses; earn-out payment for prior acquisition; net of taxes.... 0.27 0.26 Anticipated fourth quarter restructuring charge 0.23 0.18 Non-GAAP basis $ 0.36 $ 0.40

The company's GAAP guidance assumes that no material acquisitions or stock-based compensation grants will be effected in the fourth quarter of 2009; and the company's GAAP and non-GAAP guidance further assumes that foreign currency exchange rates will remain at their average levels for October.

For the reasons set forth elsewhere in this release, Ness' management believes that non-GAAP earnings per share financial guidance provides the best comparative basis for investors to understand and assess the company's on-going operations and prospects for the future.

Goodwill Impairment Test

At the end of each calendar year, the company is required to perform an impairment test on its goodwill. If the company determines any portion of goodwill is impaired, it would recognize a non-cash charge that would impact GAAP earnings and earnings per share for the quarter and year ended December 31, 2009. Such a charge would not impact the non-GAAP financial information presented in this press release.

Conference Call Details

Sachi Gerlitz, president and chief executive officer of Ness Technologies, and Ofer Segev, executive vice president and chief financial officer, will conduct a conference call to discuss the third quarter 2009 results. The call, which will be simultaneously webcast, will begin at 10:00 AM Eastern Time / 7:00 AM Pacific Time on Tuesday, November 3, 2009.

To access the Ness Technologies third quarter 2009 earnings conference call, participants in North America should dial 1-800-399-0427 and international participants should dial +1-973-200-3375. A live audio webcast of the conference call will be available on the investor relations page of the Ness Technologies corporate web site at http://investor.ness.com/. Please visit the web site at least 15 minutes early to register for the teleconference webcast and download any necessary audio software. A replay of the call will be available on the web site approximately two hours after the conference call is completed.

About Ness Technologies

Ness Technologies is a global provider of IT and business services and solutions with specialized expertise in software product engineering; system integration, application development and consulting; and software distribution. Ness delivers its portfolio of solutions and services using a global delivery model combining offshore, near-shore and local teams. With about 7,800 employees, Ness maintains operations in 18 countries, and partners with numerous software and hardware vendors worldwide. For more information about Ness Technologies, visit http://www.ness.com/.

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Ness uses various non-GAAP measures of net income and earnings per share, including adjustments from results based on GAAP to exclude (a) non-cash stock-based compensation expenses in accordance with SFAS 123R and amortization of intangible assets, net of taxes; (b) a gain related to the sale of the company's Israeli SAP sales and distribution operations in the third quarter of 2008, net of related expenses and other charges, net of taxes; (c) an insurance settlement related to a 2007 arbitration expense, net of related expenses, net of taxes; and (d) severance expenses, net of taxes. Ness' management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Ness' on-going core operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating the business internally and as such has determined that it is important to provide this information to investors.

Ness uses these non-GAAP measures also in the formulation of its financial guidance. This requires Ness management to make assumptions regarding certain factors that could affect future net income and earnings per share, such as the timing and size of future potential acquisitions (which could result in additional non-cash amortization of intangibles), the timing and size of future potential stock-based compensation grants (which could result in additional non-cash stock-based compensation expense), and the timing and size of any one-time income or expenses. The company discloses such assumptions in conjunction with its financial guidance.

Forward Looking Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often are preceded by words such as "believes," "expects," "may," "anticipates," "plans," "intends," "assumes," "will" or similar expressions. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Ness' actual results could differ materially from those anticipated in these forward looking statements as a result of various factors. Some of the factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the "Risk Factors" described in Ness' Annual Report of Form 10-K filed with the Securities and Exchange Commission on March 16, 2009. Ness is under no obligation, and expressly disclaims any obligation, to update or alter its forward-looking statements, whether as a result of such changes, new information, subsequent events or otherwise.

NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME U.S. dollars in thousands (except per share data) Three months ended Nine months ended September 30, September 30, 2008 2009 2008 2009 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues.................. $ 164,111 $ 132,733 $ 494,429 $ 406,410 Cost of revenues............ 120,945 96,753 353,330 298,186 Gross profit................. 43,166 35,980 141,099 108,224 Selling and marketing 13,487 12,094 41,233 35,047 General and administrative. 24,986 21,809 73,908 70,740 Gain from sale of Israeli SAP sales and distribution operations, net (18,366) - (18,366) - Insurance settlement related to 2007 arbitration expense, net of related expenses - - - (2,610) Commissions related to the sale of Israeli SAP sales and distribution operations - - - (2,534) Total operating expenses..... 20,107 33,903 96,775 100,643 Operating income 23,059 2,077 44,324 7,581 Financial expenses, net (1,187) (399) (3,635) (2,431) Other expenses, net (392) - (392) - Income before taxes on income 21,480 1,678 40,297 5,150 Taxes on income 5,333 836 9,166 1,738 Net income $ 16,147 $ 842 $ 31,131 $ 3,412 Basic net earnings per share $ 0.41 $ 0.02 $ 0.79 $ 0.09 Diluted net earnings per Share $ 0.41 $ 0.02 $ 0.78 $ 0.09 Weighted average number of shares (in thousands) used in computing basic net earnings per share 39,435 38,451 39,284 38,653 Weighted average number of shares (in thousands) used in computing diluted net earnings per share 39,832 38,864 39,929 39,181 NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME U.S. dollars in thousands Three months ended Nine months ended September 30, September 30, 2008 2009 2008 2009 Segment Data (1): (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues: Software Product $ 26,092 $ 25,621 $ 71,360 $ 76,275 Engineering System Integration and Application Development. 126,552 100,202 377,672 307,772 Software 11,467 6,910 45,397 22,363 Distribution $ 164,111 $ 132,733 $ 494,429 $ 406,410 Operating Income (Loss): Software Product $ 3,181 $ 3,609 $ 6,443 $ 11,819 Engineering System Integration and Application Development 10,233 2,150 28,749 6,783 Software Distribution 13,268 (782) 18,317 928 Unallocated Expenses (3,623) (2,900) (9,185) (11,949) $ 23,059 $ 2,077 $ 44,324 $ 7,581 Geographic Data: Revenues: Israel $ 54,834 $ 41,905 $ 175,336 $ 129,546 Europe 55,092 42,177 163,691 130,297 North America 46,540 42,115 133,460 128,138 Asia and the Far East 7,645 6,536 21,942 18,429 $ 164,111 $ 132,733 $ 494,429 $ 406,410 (1) Effective October 1, 2008, the company reorganized its reportable segments to correspond to its three primary service lines. Prior period segment data has been reclassified to reflect the current organization of the segments. NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Nine months ended September 30, 2008 2009 (Unaudited) (Unaudited) Cash flows from operating activities: Net Income $ 31,131 $ 3,412 Adjustments required to reconcile net income to net cash provided by operating activities: Stock-based compensation-related expenses 2,227 2,619 Currency fluctuation of long-term debt 68 - Depreciation and amortization 12,571 14,245 Arbitration settlement and related Charges (9,452) - Loss (gain) on sale of property and equipment and impairment and sale of cost investments 501 (138) Gain from sale of Israeli SAP sales and distribution operations, net (18,366) - Commissions related to the sale of Israeli SAP sales and distribution Operations - (2,534) Decrease in trade receivables, Net 10,393 62,996 Decrease (increase) in unbilled Receivables (8,525) 4,722 Decrease (increase) in other accounts receivable and prepaid expenses 626 (3,516) Increase in work-in-progress (1,101) (714) Decrease (increase) in long-term Prepaid expenses 1,193 (260) Deferred income taxes, net 6,897 (92) Decrease in trade Payables (5,845) (20,779) Increase (decrease) in advances from customers and deferred revenues 3,073 (3,305) Increase in other long-term Liabilities 694 498 Decrease in other accounts payable and accrued expenses (5,447) (19,969) Decrease in accrued severance pay, net (2,253) (2,726) Net cash provided by operating activities 18,385 34,459 Cash flows from investing activities: Proceeds from sale of investment at cost 219 - Proceeds from sale of Israeli SAP sales and distribution operations, net 13,145 - Additional payments in connection with acquisitions of subsidiaries in prior periods (5,973) (15,451) Proceeds from maturity of (investment in) short-term bank deposits, net 1,267 (16,822) Proceeds from sale of property and equipment 115 796 Purchase of property and equipment and capitalization of software developed for internal use (10,595) (9,746) Net cash used in investing Activities (1,822) (41,223) Cash flows from financing activities: Exercise of options 4,317 - Repurchase of Shares - (2,037) Acquired subsidiary's dividend to its former shareholder (10,048) (1,430) Short-term bank loans and credit, Net 13,737 (4,970) Proceeds from long-term debt 25,483 15,000 Principal payments of long-term debt (2,447) (4,411) Net cash provided by financing Activities 31,042 2,152 Effect of exchange rate changes on cash and cash equivalents (10,291) (93) Increase (decrease) in cash and cash Equivalents 37,314 (4,705) Cash and cash equivalents at the beginning of the period 43,097 50,659 Cash and cash equivalents at the end of the period $ 80,411 $ 45,954 NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands December September 31, 2008 30, 2009 (Unaudited) CURRENT ASSETS: Cash and cash Equivalents $ 50,659 $ 45,954 Restricted Cash 2,331 2,398 Short-term bank Deposits 5,703 22,703 Trade receivables, net of allowance for doubtful accounts 200,118 138,419 Unbilled receivables 35,585 36,278 Other accounts receivable and prepaid expenses 31,344 37,248 Work in Progress 1,532 3,445 Total current Assets 327,272 286,445 LONG-TERM ASSETS: Long-term prepaid expenses and other assets 6,806 7,225 Unbilled receivables 9,220 5,238 Deferred income taxes, net 8,356 6,629 Severance pay fund 46,478 51,117 Property and equipment, net 36,733 37,903 Intangible assets, Net 22,073 16,836 Goodwill 290,055 299,019 Total long-term assets 419,721 423,967 Total assets $ 746,993 $ 710,412 CURRENT LIABILITIES: Short-term bank credit $ 18,072 $ 12,983 Current maturities of long-term debt 7,089 23,205 Trade Payables 47,072 23,830 Advances from customers and deferred revenues 33,280 30,348 Other accounts payable and accrued expenses 124,697 87,520 Total current liabilities 230,210 177,886 LONG-TERM LIABILITIES: Long-term debt, net of current maturities 60,973 57,434 Other long-term liabilities 6,444 7,375 Deferred income taxes 2,673 2,014 Accrued severance pay 55,014 56,781 Total long-term liabilities 125,104 123,604 Total stockholders' equity 391,679 408,922 Total liabilities and stockholders' equity $ 746,993 $ 710,412 NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION EXCLUDING STOCK-BASED COMPENSATION; AMORTIZATION OF INTANGIBLE ASSETS; GAIN FROM SALE OF ISRAELI SAP SALES AND DISTRIBUTION OPERATIONS, NET OF RELATED EXPENSES AND OTHER CHARGES; INSURANCE SETTLEMENT RELATED TO 2007 ARBITRATION EXPENSE, NET OF RELATED EXPENSES; SEVERANCE EXPENSES; ALL NET OF TAXES U.S. dollars in thousands (except per share data) Three months ended Nine months ended September 30, September 30, 2008 2009 2008 2009 (Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP revenues $ 164,111 $ 132,733 $ 494,429 $ 406,410 Write-off of trade receivables resulting from sale of Israeli SAP sales and distribution operations 3,155 - 3,155 - Non-GAAP revenues $ 167,266 $ 132,733 $ 497,584 $ 406,410 GAAP gross profit $ 43,166 $ 35,980 $ 141,099 $ 108,224 Stock-based compensation 64 63 209 183 Amortization of intangible assets 221 205 667 581 Write-off of trade receivables resulting from sale of Israeli SAP sales and distribution operations 3,155 - 3,155 - Severance expenses - - - 966 Non-GAAP gross profit $ 46,606 $ 36,248 $ 145,130 $ 109,954 GAAP operating income $ 23,059 $ 2,077 $ 44,324 $ 7,581 Stock-based Compensation 688 863 2,227 2,619 Amortization of intangible Assets 1,365 2,207 4,322 6,240 Gain from sale of Israeli SAP sales and distribution operations, net (18,366) - (18,366) - Costs and expenses resulting from sale of Israeli SAP sales and distribution operations and other charges 5,631 - 5,631 - Insurance settlement related to 2007 arbitration expense, net of related expenses - - - (2,610) Severance expenses - - - 2,646 Non-GAAP operating income $ 12,377 $ 5,147 $ 38,138 $ 16,476 GAAP operating margin 14.1% 1.6% 9.0% 1.9% Non-GAAP operating margin 7.4% 3.9% 7.7% 4.1% GAAP net income $ 16,147 $ 842 $ 31,131 $ 3,412 Stock-based compensation; amortization of intangible assets; gain from sale of Israeli SAP sales and distribution operations, net of related expenses and other charges; insurance settlement in respect of 2007 arbitration expense, net of related expenses; severance expenses; all net of taxes (6,778) 2,468 (3,244) 7,222 Non-GAAP net income $ 9,369 $ 3,310 $ 27,887 $ 10,634 GAAP diluted net earnings per share $ 0.41 $ 0.02 $ 0.78 $ 0.09 Stock-based compensation; amortization of intangible assets; gain from sale of Israeli SAP sales and distribution operations, net of related expenses and other charges; insurance settlement in respect of 2007 arbitration expense, net of related expenses; severance expenses; all net of taxes (0.17) 0.06 (0.08) 0.18 Non-GAAP diluted net earnings per share $ 0.24 $ 0.09 $ 0.70 $ 0.27

(1) See "Use of Non-GAAP Financial Information" below for more information regarding Ness' use of non-GAAP financial measures.

Media Contact: David Kanaan Intl: +972-54- 425-5307 Email: media.int@ness.com Investor Relations Contact: Drew Wright USA: +1-201-488-3262 Email: investor@ness.com

Ness Technologies Inc

CONTACT: Media Contact: David Kanaan, Intl: +972-54-425-5307, Email:
media.int@ness.com; Investor Relations Contact: Drew Wright, USA:
+1-201-488-3262, Email: investor@ness.com

Sonic Foundry to Webcast EDUCAUSE Annual Conference 2009, Face-to-Face and OnlineVirtual attendees arrive on-site with Mediasite

DENVER, Nov. 3 /PRNewswire-FirstCall/ -- (booth #443) -- Even with campus travel bans and budget cuts, the higher education community can still attend the 2009 EDUCAUSE Annual Conference. Sonic Foundry, Inc. , an EDUCAUSE Gold Partner and the recognized market leader for rich media webcasting and knowledge management, today announced that its Mediasite platform will be used to create a blended event by recording and streaming online presentations from EDUCAUSE 2009, taking place November 3 - 6 in Denver, Colorado.

The EDUCAUSE Annual Conference, "The Best Thinking in Higher Ed IT," delivers thought leadership, community interaction and educational insights to all professionals in higher education. This year, EDUCAUSE is offering a virtual conference pass. The online event includes 13 featured sessions plus concurrent presentations, a campus facilitator kit with tools and tips for hosting events and a pass to EDUCAUSE Central Online, a community hub provided for virtual collaboration.

While the conference has streamed sessions on-demand via Mediasite for several years, last year marked the first time the conference streamed live webcasts to a virtual audience. Due to the positive response, the organization created EDUCAUSE 2009 Online, where online attendees can learn and network with colleagues without leaving campus.

Live and on-demand presentation recordings are included with the online package. Key sessions include:

-- Sean Brown, vice president of education, Sonic Foundry to present The Past, Present, and Future of Academic Webcasting, Wednesday at 3:50 p.m., Korbel Ballroom 3B. -- Jim Jorstad, director of educational technologies, University of Wisconsin-La Crosse to present Lost in Space: Finding Your Way Around Effective Learning Space Creation, Wednesday 10:30 a.m., meeting room 603, and Houston, We Have a Problem: Leading Through Failure, Thursday at 3:45 p.m., meeting room 605.

EDUCAUSE 2009 is being webcasted by Sonic Foundry's Event Services group, a leading provider of webcasting for blended conferences and high-profile training events. The group and its strategic partners use the patented Mediasite webcasting platform to complement conferences or events with viewing over the web. Since its launch in January 2007, the Event Services group has provided live and on-demand webcasting for clients ranging from Fortune 500 corporations and university associations to sporting events and charitable organizations.

To view sessions from EDUCAUSE 2008 visit http://www.sonicfoundry.com/educause2008/catalog/.

About EDUCAUSE

EDUCAUSE is a nonprofit association and the foremost community of IT leaders and professionals committed to advancing higher education. EDUCAUSE programs and services are focused on analysis, advocacy, community building, professional development, and knowledge creation because IT plays a transformative role in higher education. EDUCAUSE supports those who lead, manage, and use information technology through a comprehensive range of resources and activities. For more information, visit http://www.educause.edu/.

About Sonic Foundry®, Inc.

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

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

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

Sonic Foundry, Inc.

CONTACT: Tammy Kramer of Sonic Foundry, tammyk@sonicfoundry.com

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

Cameron Third Quarter Earnings Per Share $0.56- Earnings total $0.56 per share, including charge of $0.02 for severance-related costs - Backlog increases, driven by subsea orders

HOUSTON, Nov. 3 /PRNewswire-FirstCall/ -- Cameron reported net income of $124.9 million, or $0.56 per diluted share, for the quarter ended September 30, 2009, compared with net income of $163.0 million, or $0.71 per diluted share, for the third quarter of 2008. The third quarter 2009 results include a pretax charge of $5.9 million, or $0.02 per share, for severance-related costs.

Total revenues were $1,231.8 million for the quarter, down 18 percent from 2008's $1,504.7 million, while income before income taxes was $168.6 million, down 30 percent from the $242.2 million of a year ago. Cameron President and Chief Executive Officer Jack B. Moore said, "The results reflect a continued focus on exceptional execution by our team in a difficult market." Moore also noted that margins held up well during the quarter.

Orders in subsea business drive increase in backlog

Orders received during the third quarter of 2009 totaled $1,343.0 million, up from the levels of the first two quarters of 2009. "Drilling & Production Systems' orders benefited from the bookings associated with a multi-year frame agreement for subsea equipment offshore Brazil," Moore said, "as well as a significant order for multiphase pumping systems booked by Petreco, Cameron's process systems business." He also noted that orders in Valves & Measurement and Compression Systems reached their highest quarterly totals to date during 2009; as a result, Cameron's total orders exceeded revenues during the quarter for the first time since the third quarter of 2008, driving an increase in the Company's total backlog.

At September 30, 2009, Cameron's backlog totaled $5.12 billion, up from the $5.02 billion level at the end of the second quarter.

Cash flow supporting reinvestment in business

Moore said that Cameron's cash flow from operations totaled $184.1 million through the first nine months of 2009. "Year-to-date capital expenditures total $163.7 million, compared with $160.4 million for the 2008 period, and our current estimate for full-year spending is about $240 million," he noted. "We have spent approximately $60 million so far this year on our new Romanian surface equipment plant, which opened in early October and is ramping up its manufacturing capabilities, and on the continuing expansion of our subsea facility in Malaysia."

Moore said that Cameron's financial position remains solid. "At September 30, 2009, the cash and cash equivalents on our balance sheet totaled $1.53 billion, and exceeded our total debt by approximately $237 million," he said. "We continue to evaluate possible acquisition opportunities, and we expect to resume our share repurchase program once the restrictions associated with the pending NATCO acquisition are lifted."

NATCO transaction expected to close during fourth quarter

Cameron expects to close the acquisition of NATCO Group Inc. during the fourth quarter of 2009, subject to the resolution of remaining antitrust issues and approval by NATCO's stockholders. Moore said that the related Registration Statement on Form S-4 was declared effective on October 16, NATCO's Proxy Statement was mailed to its stockholders beginning October 19, and that NATCO's stockholders are expected to approve the transaction at a November 18 special meeting. "We expect to be in a position to close the acquisition once the stockholder approval is confirmed, perhaps as soon as the day of the special meeting," Moore noted. "We look forward to completing the closing process and moving ahead with the integration of NATCO's people and businesses with those of Cameron."

Full-year earnings per share expected to be $2.26 to $2.30

"Cameron's full-year earnings, excluding any charges or gains, are expected to be in the range of approximately $2.26 to $2.30 per share," Moore said. "As always, the results will depend on such factors as customers' spending, our project execution and effective cost management." Moore noted that this guidance does not include any impact from the pending NATCO acquisition.

Cameron is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries.

Website: http://www.c-a-m.com/

In addition to the historical data contained herein, this document includes forward-looking statements regarding order levels, revenues and earnings of the Company (including fourth quarter and full-year 2009 earnings per share estimates), as well as expectations regarding profitability, cash flow, full-year capital spending, capital spending for construction of new facilities, and completion of pending acquisitions, made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual results may differ materially from those described in forward-looking statements. Such statements are based on current expectations of the Company's performance and are subject to a variety of factors, some of which are not under the control of the Company, which can affect the Company's results of operations, liquidity or financial condition. Such factors may include overall demand for, and pricing of, the Company's products; the size and timing of orders; the Company's ability to successfully execute the large subsea systems and drilling projects it has been awarded; the Company's ability to convert backlog into revenues on a timely and profitable basis; the Company's ability to successfully implement its capital expenditures program; the impact of acquisitions the Company has made or may make; changes in the price of (and demand for) oil and gas in both domestic and international markets; raw material costs and availability; political and social issues affecting the countries in which the Company does business; fluctuations in currency markets worldwide; and variations in global economic activity. In particular, current and projected oil and gas prices historically have generally directly affected customers' spending levels and their related purchases of the Company's products and services. Additionally, changes in oil and gas price expectations may impact the Company's financial results due to changes it makes as a result thereof in its cost structure, staffing or spending levels.

Because the information herein is based solely on data currently available, it is subject to change as a result of changes in conditions over which the Company has no control or influence, and should not therefore be viewed as assurance regarding the Company's future performance. Additionally, the Company is not obligated to make public indication of such changes unless required under applicable disclosure rules and regulations.

Cameron Unaudited Consolidated Condensed Results of Operations ($ and shares in millions except per share data) Three Months Nine Months Ended September 30, Ended September 30, ------------------- ------------------- 2008 2008 2009 (as revised) 2009 (as revised) (1) (1) ---- ------------ ---- ------------ Revenues: Drilling & Production Systems $791.5 $957.0 $2,459.1 $2,773.6 Valves & Measurement 294.7 383.7 882.6 1,095.1 Compression Systems 145.6 164.0 417.1 455.9 ----- ----- ----- ----- Total revenues 1,231.8 1,504.7 3,758.8 4,324.6 ------- ------- ------- ------- Costs and Expenses: Cost of sales (exclusive of depreciation and amortization shown separately below) 828.0 1,050.8 2,512.4 3,079.4 Selling and administrative expenses 169.7 165.3 517.2 484.5 Depreciation and amortization 38.4 32.5 112.3 95.7 Interest income (1.4) (9.7) (5.4) (22.2) Interest expense 22.6 23.6 73.8 46.1 Restructuring expense 5.9 - 39.0 - --- --- ---- --- Total costs and expenses 1,063.2 1,262.5 3,249.3 3,683.5 ------- ------- ------- ------- Income before income taxes 168.6 242.2 509.5 641.1 Income tax provision (43.7) (79.2) (131.3) (206.3) ------ ------ ------- ------- Net income $124.9 $163.0 $378.2 $434.8 ====== ====== ====== ====== Earnings per common share: Basic $0.57 $0.75 $1.74 $2.00 ===== ===== ===== ===== Diluted $0.56 $0.71 $1.71 $1.88 ===== ===== ===== ===== Shares used in computing earnings per common share: Basic 219.6 218.5 217.8 217.3 ===== ===== ===== ===== Diluted 221.9 229.2 221.2 231.0 ===== ===== ===== ===== EBITDA: ------- Drilling & Production Systems $171.8 $188.4 $549.2 $504.5 Valves & Measurement 65.8 92.8 186.6 245.4 Compression Systems 24.6 32.3 71.2 84.1 Corporate and other(2) (34.0) (24.9) (116.8) (73.3) ------ ------ ------- ------ Total $228.2 $288.6 $690.2 $760.7 ====== ====== ====== ====== (1) Amounts have been retrospectively revised as a result of the adoption, effective January 1, 2009, of FASB Accounting Standards Codification Topic 470-20, Debt with Conversion and Other Options. (2) Corporate EBITDA amounts include $5.9 million and $39.0 million of restructuring expense for the three- and nine-month periods ended September 30, 2009. Cameron Consolidated Condensed Balance Sheets ($ millions) September 30, December 31, 2009 2008 ------------- ------------ (unaudited) Assets: Cash and cash equivalents $1,527.5 $1,621.0 Receivables, net 877.7 950.4 Inventories, net 1,698.6 1,336.9 Other 216.8 148.1 ----- ----- Total current assets 4,320.6 4,056.4 Plant and equipment, net 1,045.6 931.7 Goodwill 720.7 709.2 Other assets 220.0 205.1 ----- ----- Total Assets $6,306.9 $5,902.4 ======== ======== Liabilities and Stockholders' Equity: Current portion of long-term debt $61.1 $161.3 Accounts payable and accrued liabilities 1,867.6 1,854.4 Accrued income taxes 38.1 95.5 ---- ---- Total current liabilities 1,966.8 2,111.2 Long-term debt 1,229.1 1,218.6 Deferred income taxes 119.7 99.2 Other long-term liabilities 112.9 128.9 ----- ----- Total liabilities 3,428.5 3,557.9 ------- ------- Stockholders' Equity: Common stock, par value $.01 per share, 400,000,000 shares authorized, 239,473,764 shares issued at September 30, 2009 (236,316,873 shares issued at December 31, 2008) 2.4 2.4 Capital in excess of par value 1,268.0 1,254.5 Retained earnings 2,188.1 1,809.9 Accumulated other elements of comprehensive income 44.0 (84.2) Less: Treasury stock, 18,807,197 shares at September 30, 2009 (19,424,120 shares at December 31, 2008) (624.1) (638.1) ------- ------- Total stockholders' equity 2,878.4 2,344.5 ------- ------- Total Liabilities and Stockholders' Equity $6,306.9 $5,902.4 ======== ======== Cameron Unaudited Consolidated Condensed Statements of Cash Flows ($ millions) Three Months Nine Months Ended September 30, Ended September 30, ------------------- ------------------- 2009 2008(1) 2009 2008(1) ---- ------ ---- ------ Cash flows from operating activities: Net income $124.9 $163.0 $378.2 $434.8 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 28.3 25.2 82.3 72.6 Amortization 10.1 7.3 30.0 23.1 Non-cash stock compensation expense 6.1 7.6 22.0 23.6 Tax benefit of employee stock compensation plan transactions and deferred income taxes 30.3 (19.0) 22.9 (20.3) Changes in assets and liabilities, net of translation, acquisitions and non-cash items: Receivables 28.0 (47.5) 111.0 (190.4) Inventories (12.4) (12.7) (305.5) (31.3) Accounts payable and accrued liabilities 27.3 86.6 (40.7) 116.0 Other assets and liabilities, net (67.8) 52.8 (116.1) 84.6 ----- ---- ------ ---- Net cash provided by operating activities 174.8 263.3 184.1 512.7 ----- ----- ----- ----- Cash flows from investing activities: Capital expenditures (56.0) (64.4) (163.7) (160.4) Acquisitions, net of cash acquired - (40.2) (23.2) (97.7) Proceeds from sale of plant and equipment 0.8 0.8 3.5 1.7 --- --- --- --- Net cash used for investing activities (55.2) (103.8) (183.4) (256.4) ----- ------ ------ ------ Cash flows from financing activities: Short-term loan borrowings (repayments), net (12.0) (59.6) 23.0 20.7 Redemption of convertible debt securities (131.1) (106.9) (131.1) (106.9) Issuance of long-term senior notes - - - 747.9 Debt issuance costs - - - (5.5) Purchase of treasury stock - (60.8) (7.1) (215.3) Proceeds from stock option exercises, net of tax payments from stock compensation plan transactions 1.6 7.0 5.1 17.1 Excess tax benefits from employee stock compensation plan transactions 1.2 2.7 3.5 17.2 Principal payments on capital leases (1.6) (1.8) (5.2) (5.2) ---- ---- ---- ---- Net cash (used for) provided by financing activities (141.9) (219.4) (111.8) 470.0 ------ ------ ------ ----- Effect of translation on cash 12.1 (38.7) 17.6 (30.7) ---- ----- ---- ------ Increase (decrease) in cash and cash equivalents (10.2) (98.6) (93.5) 695.6 ----- ----- ----- ----- Cash and cash equivalents, beginning of period 1,537.7 1,534.1 1,621.0 739.9 ------- ------- ------- ----- Cash and cash equivalents, end of period $1,527.5 $1,435.5 $1,527.5 $1,435.5 ======== ======== ======== ======== (1) Amounts have been retrospectively revised as a result of the adoption, effective January 1, 2009, of FASB Accounting Standards Codification Topic 470-20, Debt with Conversion and Other Options. Cameron Orders and Backlog ($ millions) Orders Three Months Nine Months Ended September 30, Ended September 30, ------------------- ------------------- 2009 2008 2009 2008 ---- ---- ---- ---- Drilling & Production Systems $961.8 $1,945.4 $2,186.1 $4,511.0 Valves & Measurement 253.4 475.4 680.7 1,260.5 Compression Systems 127.8 191.0 361.3 596.6 ----- ----- ----- ----- Total $1,343.0 $2,611.8 $3,228.1 $6,368.1 ======== ======== ======== ======== Backlog September 30, December 31, September 30, 2009 2008 2008 ------------- ------------ ------------- Drilling & Production Systems $4,195.0 $4,416.8 $4,809.6 Valves & Measurement 537.8 749.2 829.9 Compression Systems 384.8 440.5 511.3 ----- ----- ----- Total $5,117.6 $5,606.5 $6,150.8 ======== ======== ======== Cameron Reconciliation of GAAP to Non-GAAP Financial Information ($ millions) Three Months Ended September 30, 2009 ------------------------------------- Drilling & Production Valves & Compression Systems Measurement Systems Corporate Total ---------- ----------- ----------- --------- ----- Income (loss) before income taxes $149.7 $56.5 $20.5 $(58.1) $168.6 Depreciation & amortization 22.1 9.3 4.1 2.9 38.4 Interest income - - - (1.4) (1.4) Interest expense - - - 22.6 22.6 ----- ----- ---- ---- ----- EBITDA $171.8 $65.8 $24.6 $(34.0) $228.2 ====== ===== ===== ======= ====== Three Months Ended September 30, 2008 ------------------------------------- Drilling & Production Valves & Compression Systems Measurement Systems Corporate Total ---------- ----------- ----------- --------- ----- Income (loss) before income taxes $171.5 $84.7 $28.4 $(42.4) $242.2 Depreciation & amortization 16.9 8.1 3.9 3.6 32.5 Interest income - - - (9.7) (9.7) Interest expense - - - 23.6 23.6 --- --- --- ---- ---- EBITDA $188.4 $92.8 $32.3 $(24.9) $288.6 ====== ===== ===== ====== ====== Cameron Reconciliation of GAAP to Non-GAAP Financial Information ($ millions) Nine Months Ended September 30, 2009 ------------------------------------ Drilling & Production Valves & Compression Systems Measurement Systems Corporate Total ---------- ----------- ----------- --------- ----- Income (loss) before income taxes $486.6 $160.1 $58.8 $(196.0) $509.5 Depreciation & amortization 62.6 26.5 12.4 10.8 112.3 Interest income - - - (5.4) (5.4) Interest expense - - - 73.8 73.8 ---- ---- ---- ---- ---- EBITDA $549.2 $186.6 $71.2 $(116.8) $690.2 ====== ====== ===== ======== ====== Nine Months Ended September 30, 2008 ------------------------------------ Drilling & Production Valves & Compression Systems Measurement Systems Corporate Total ---------- ----------- ----------- --------- ----- Income (loss) before income taxes $453.7 $221.7 $72.9 $(107.2) $641.1 Depreciation & amortization 50.8 23.7 11.2 10.0 95.7 Interest income - - - (22.2) (22.2) Interest expense - - - 46.1 46.1 ---- ---- ---- ---- ---- EBITDA $504.5 $245.4 $84.1 $(73.3) $760.7 ====== ====== ===== ====== ======

Cameron

CONTACT: R. Scott Amann, Vice President, Investor Relations of Cameron,
+1-713-513-3344

Web Site: http://www.c-a-m.com/

Northgate Reports Third Quarter Cash Flow of $50.5 millionCash on Hand Reaches $235.9 millionNotice: Conference Call and Webcast Today at 10:00 am ET Dial in: +416-644-3425 or 1-800-594-3790

VANCOUVER, Nov. 3 /PRNewswire-FirstCall/ -- (All figures in US dollars except where noted) - Northgate Minerals Corporation ("Northgate" or the "Corporation") (TSX: NGX; NYSE Amex: NXG) today announced its financial and operating results for the fiscal quarter ended September 30, 2009.

Third Quarter 2009 Highlights - Generated excellent cash flow from operations of $50.5 million or $0.20 per share, for a year-to-date total of $145.7 million - Reported adjusted net earnings of $7.7 million or $0.03 per share - Produced 80,791 ounces of gold and 11.9 million pounds of copper at an average net cash cost of $539 per ounce of gold - Sold 85,397 ounces of gold at a realized price of $982 per ounce and 12.8 million pounds of copper at a realized price of $3.39 per pound - Successfully completed an equity offering for net proceeds of $88.5 million to fund the development of the Young-Davidson mine - Northgate's cash balance at the end of the third quarter 2009 was $235.9 million - Successful organic growth at Northgate's operations: - Discovered a significant extension of mineralization at Fosterville, confirming that the Phoenix fault system continues down plunge - Discovered a new gold zone located 300 metres (m) east of current reserves at Young-Davidson. The new zone is completely open down dip. In addition to this discovery, Northgate also reported drill results for 29 shallow diamond drill holes located in and around historic mine workings immediately east of current reserves, which have the potential to add to the 2.8 million ounces of reserves already on the property - Identified approximately 870,000 tonnes of additional mineral reserves containing 93,000 ounces at Stawell, extending the mine- life until Q2-2012

Ken Stowe, President and CEO, stated: "Northgate continued to generate excellent cash flow from operations in the third quarter and is poised to generate our highest annual operating cash flow in 2009, which is highlighted by another record year of gold production. In addition to this milestone, we have made great strides at the Young-Davidson project through the signing of an Impact and Benefits Agreement with the Matachewan First Nation, the completion of a positive pre-feasibility study and an $88.5 million equity offering at the end of September to fund the development of the new Young-Davidson mine. The feasibility study is well underway and we have approved the restart of ramp development and shaft dewatering in the fourth quarter in advance of breaking ground on construction of the new mine infrastructure in 2010. With our treasury in excellent shape, we look forward to building Young-Davidson over the next two years and creating additional value for our shareholders during the same period through continued reserve additions at our mines and projects."

Financial Performance

Northgate recorded consolidated revenue of $120.2 million in the third quarter of 2009, compared with $99.3 million in the same period last year. Revenues were higher due to a 25% increase in gold production over the same period last year combined with higher realized metal prices for gold and copper in the most recent quarter. Revenues for the nine month period ending September 30, 2009 were $374.3 million.

The net loss for the quarter was $8.6 million or $0.03 per share compared with a net loss of $29.4 million or $0.12 per share in the corresponding quarter of 2008. Adjusted net earnings were $7.7 million or $0.03 per share in the third quarter of 2009, which was significantly higher than the adjusted net loss of $28.4 million or $0.11 per share in the same period last year. Adjusted net earnings do not include certain non-cash items from its calculation of net earnings prepared in accordance with Canadian generally accepted accounting principles. Northgate has prepared this figure as it may be a useful indicator to investors. Non-cash items in the third quarter of 2009 include a $10.4 million write-down of investments in auction rate securities and a $5.8 million (net of tax) mark-to-market loss on Northgate's copper forward sales contracts.

During the third quarter of 2009, Northgate generated excellent cash flow from operations of $50.5 million or $0.20 per share, which was a dramatic improvement over the $0.6 million or $0.00 per share generated in the corresponding quarter of 2008. In the first three quarters of 2009, Northgate has generated cash flow from operations of $145.7 million.

In the third quarter of 2009, Northgate's cash and cash equivalents increased by $115.2 million following the completion of a bought deal financing with net proceeds of $88.5 million and strong free cash flow from operations. Northgate's balance sheet now boasts cash and cash equivalents of $235.9 million and each operation is expected to generate strong operating cash flow for the balance of the year.

Results from Operations Fosterville Gold Mine

During the third quarter of 2009, a total of 201,130 tonnes of ore were mined, following on the excellent performance of 206,829 tonnes of ore mined in the previous quarter. In addition, mine development advanced a record 2,362m during the quarter. Year-to-date mining rates have increased by over 60% since Northgate took ownership of the mine in February 2008.

A total of 201,866 tonnes of ore were milled at a grade of 4.51 grams per tonne (g/t) during the third quarter. Although the mill continued to operate at higher than plan throughput, mill head grades during the quarter were lower than expected due to dilution on some of the stopes mined and lower development grades. Mill head grades are expected to improve in the fourth quarter with the availability of higher grade stopes.

Fosterville produced a total of 25,550 ounces of gold during the quarter, which was 65% higher than the 15,491 ounces produced in the corresponding quarter last year. However, production was lower than plan as a result of lower than expected head grades mined, delays in the start up of the carbon-in-leach (CIL) tails retreat and a five-day mill shutdown in late September due to a process upset in the BIOX(R) circuit caused by a power outage at site. These issues have since been resolved and gold production forecast in the fourth quarter remains unchanged at 28,000 ounces. Fosterville is expected to produce over 105,000 ounces of gold for the full year 2009, which is a dramatic improvement over the 66,959 ounces produced in the previous year.

The net cash cost of production during the quarter was $612 per ounce of gold, dramatically lower than the $940 per ounce recorded in the same period last year, but significantly higher than the costs recorded earlier in 2009 due to the rapid appreciation of the Australian dollar relative to the US dollar.

Stawell Gold Mine

Record quarterly ore production was achieved at Stawell in the third quarter, as 193,538 and 195,813 tonnes of ore were mined and milled, respectively. Underground mine development advanced a record 1,937m, which will allow for more mining front flexibility in the future. Gold production of 20,319 ounces was lower than forecast as lower grade ore was mined due to changes in the stoping sequence. However, the record development advance in the third quarter has established additional production fronts, which has improved ore availability. Stawell is forecast to produce 25,000 ounces of gold in the fourth quarter, for a total of 88,000 ounces of gold in 2009.

Unit operating costs were at record lows during the quarter, as mining costs were A$56 per tonne of ore mined and milling costs were A$23 per tonne of ore milled.

The net cash cost of production during the quarter was $694 per ounce of gold, which was lower than the $738 per ounce of gold recorded in the same period last year. The net cash cost in the most recent quarter was also adversely affected by the strength of the Australian dollar relative to the US dollar.

Kemess South

During the quarter, Kemess posted gold and copper production of 34,922 ounces and 11.9 million pounds, respectively, which was in line with Northgate's production forecast. The net cash cost of production was $395 per ounce of gold, which was significantly lower than the $597 per ounce reported in the corresponding quarter of 2008. For the full year 2009, Kemess is forecast to produce 172,000 ounces of gold and 51.8 million pounds of copper at a net cash cost of $403 per ounce. While gold and copper production is in line with guidance, the net cash cost is forecast to be significantly lower, as a result of higher copper prices.

During the third quarter of 2009, approximately 8.3 million tonnes of ore and waste were removed from the open pit compared to 5.9 million tonnes during the corresponding quarter of 2008. The higher tonnes moved in the most recent quarter resulted in significantly lower unit mining costs of Cdn$1.25 per tonne moved compared with Cdn$1.99 per tonne moved in the same period last year.

Gold and copper recoveries in the third quarter were higher at 63% and 79%, respectively, compared with 60% and 69% reported in the third quarter of last year. Recoveries in the most recent quarter are dramatically higher due to improvements in the metallurgical process made earlier in the year, which have made the flotation circuit more efficient in processing lower grade ore with higher sulphide content. These improvements are noteworthy, as they will continue to have a positive impact on the profitability of the lower grade ore, which currently makes up the remaining reserves at Kemess.

2009 Production Forecast

Northgate's production forecast is set to achieve an annual record of 365,000 ounces of gold at a net cash cost of $493 per ounce, which has been revised slightly downwards form the previous forecast of 382,500 ounces. The annual production forecast for Kemess is in line with initial estimates, however, the production forecasts for Stawell and Fosterville have been reduced as previously discussed. Cash costs for the balance of 2009 are expected to be slightly higher as a result of the stronger Canadian and Australian dollar relative to the US dollar and declining ore reserves at Kemess. Northgate's production forecast for the balance of 2009 is outlined in the following table:

Forecast Forecast Actual (ounces) (ounces) 2009 --------------------------------------- Total Cash Cost Q1 Q2 Q3 Q4 (ounces) ($/oz)(1) ------------------------------------------------------------------------- Fosterville 25,779 25,416 25,550 28,000 105,000 $555 Stawell 22,392 20,066 20,319 25,000 88,000 $596 Kemess 59,306 47,895 34,922 30,000 172,000 $403 ------------------------------------------------------------------------- 107,477 93,377 80,791 83,000 365,000 $493 ------------------------------------------------------------------------- (1) Assuming copper price of $2.75/lb and exchange rates of US$/Cdn$0.95 and US$/A$0.925 for Q4 2009. Moving Ahead with Young-Davidson

In July, Northgate released positive results from its pre-feasibility study for the Young-Davidson project and based on these results, immediately began work on a final feasibility study. During the third quarter, a trade-off study was completed on the underground shaft design required for mine operation. The decision was made to deepen the existing Matachewan Consolidated Mine (MCM) shaft to provide access to raise (rather than sink) a new Young-Davidson production shaft, with the potential to advance the start of underground ore production by up to one year. As a result, the MCM shaft dewatering activities and driving of the underground ramp at site have resumed. The feasibility study is progressing on schedule and is expected to be completed by the end of 2009.

Northgate took a critical step toward its goal of building a new mine at Young-Davidson during the quarter with the successful closing of an $88.5 million equity issue to fund the development of the mine. Preparations are underway to begin construction at Young-Davidson in 2010.

Environmental and permitting activities continued throughout the quarter in support of the project. In addition, the Young-Davidson management team continued to work with local First Nations, with consultations taking place on environmental permit applications and on the implementation of the recently signed IBA.

Exploration Overview Fosterville Gold Mine

During the third quarter, Northgate's exploration efforts at Fosterville continued to deliver excellent results. Drilling in the Phoenix Deeps returned an intersection of 10.1 g/t gold over 6.7m, including 17.6 g/t gold over 3.7m, confirming that the Phoenix fault system continues down plunge. Follow-up drilling is now underway to confirm the width and grade of the mineralization in the area.

Drilling on the Phoenix Extension located just south of existing reserves was conducted in order to upgrade inferred mineral resources to reserve classification. Drilling in this area confirmed the continuity of mineralization down plunge from the current Phoenix orebody, indicating that any reserves ultimately defined can be mined using the existing infrastructure from the current production zone.

In the fourth quarter of the year, drilling will continue in the Phoenix extension area and these results combined with the results of the Harrier exploration program will be incorporated into an updated year-end reserve statement, which will be released in the first quarter of 2010.

Stawell Gold Mine

Following the increase in mineral reserves and resources announced in August, the exploration focus at Stawell has turned to definition and exploration drilling at newly discovered and existing zones in support of resource conversion and further mine-life extensions. To date, 39 holes totalling 39,600m have been completed.

Young-Davidson

At Young-Davidson, a new area of gold mineralization was discovered 300m east of current ore reserves when two geotechnical/condemnation holes intersected what appears to be the faulted off extension of the current syenite hosted Young-Davidson ore body. Several follow-up holes are currently being drilled to examine the extent of the mineralization in the area.

In addition, 29 shallow exploration holes totalling 2,424m were drilled immediately east of the current ore reserve in and around historic mine workings. The purpose of the drill program was to assess the potential for high-grade mafic volcanic hosted gold mineralization within 50m of surface, which would have the potential to add open pit reserves in and around existing mine workings.

The mafic volcanic exploration program returned a substantial number of gold intercepts: hole YD09-120 intersected 7.6 g/t gold over 13.5m and hole YD09-114 intersected 13.8 g/t gold over 2.0m and 7.1 g/t gold over 3.8m. Future work will include additional holes along strike to the east and a compilation of data to determine if there are further open pit resources.

Summarized Consolidated Results (Thousands of US dollars, except where noted) Q3 2009 Q3 2008 YTD 2009 YTD 2008(1) ------------------------------------------------------------------------- Financial Data Revenue $ 120,163 $ 99,267 $ 374,278 $ 324,240 Adjusted net earnings(2) 7,660 (28,385) 45,030 9,871 Per share (diluted) 0.03 (0.11) 0.18 0.04 Net earnings (8,563) (29,438) 18,249 (7,926) Per share (diluted) (0.03) (0.12) 0.07 (0.03) Cash flow from operations 50,452 638 145,651 56,947 Cash and cash equivalents 235,929 71,700 235,929 71,700 Total assets $ 787,940 $ 608,589 $ 787,940 $ 608,589 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating Data Gold production (ounces) Fosterville 25,550 15,491 76,745 40,561(3) Stawell 20,319 20,956 62,777 72,126 Kemess 34,922 28,141 142,123 123,848 --------------------------------------------------- Total gold production 80,791 64,588 281,645 236,535 --------------------------------------------------- Gold sales (ounces) Fosterville 27,114 14,866 78,352 32,551 Stawell 20,172 22,367 64,415 55,651 Kemess 38,111 27,452 149,886 122,303 --------------------------------------------------- Total gold sales 85,397 64,685 292,653 210,505 --------------------------------------------------- Realized gold price ($/ounce)(4) 982 868 944 900 --------------------------------------------------- Net cash cost ($/ounce)(5) Fosterville 612 940 526 1,086 Stawell 694 738 573 650 Kemess 395 597 373 212 --------------------------------------------------- Average net cash cost ($/ounce) 539 725 459 465 --------------------------------------------------- Copper production (pounds) 11,934 9,195 40,746 37,515 Copper sales (pounds) 12,816 8,633 40,795 38,089 Realized copper price ($/pound)(4) 3.39 2.04 2.70 3.49 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Gold sales, cash costs and Financial Data in YTD 2008 include the results for Fosterville and Stawell from the date of acquisition of February 19, 2008. (2) Adjusted net earnings is a non-GAAP measure. See section entitled "Non-GAAP Measures" in the Corporation's third quarter MD&A Report. (3) Production in YTD 2008 for Fosterville excludes the change in gold- in-circuit inventory previously recorded. (4) Metal pricing quotational period for Kemess is three months after the month of arrival (MAMA) at the smelting facility for copper and gold. Therefore, realized prices reported will differ from the average quarterly reference prices, since realized price calculations incorporate the actual settlement price for prior period sales, as well as the forward price profiles of both metals for unpriced sales at the end of the quarter. (5) Net cash cost per ounce of production is a non-GAAP measure. See section entitled "Non-GAAP Measures" in the Corporation's third quarter MD&A Report. Cash costs in YTD 2008 include the results for Fosterville and Stawell from the date of acquisition of February 19, 2008. Interim Consolidated Balance Sheets September 30 December 31 Thousands of US dollars 2009 2008 ------------------------------------------------------------------------- (Unaudited) Assets Current Assets Cash and cash equivalents $ 235,929 $ 62,419 Trade and other receivables 32,126 18,310 Income taxes receivable - 6,837 Inventories (note 3) 35,914 41,546 Prepaids 886 1,989 Future income tax asset 6,670 5,259 ------------------------------------------------------------------------- 311,525 136,360 Other assets 27,172 53,606 Deferred transaction costs (note 6) - 775 Future income tax asset 4,638 3,741 Mineral property, plant and equipment 408,491 357,725 Investments (note 4) 36,114 39,422 ------------------------------------------------------------------------- $ 787,940 $ 591,629 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current Liabilities Accounts payable and accrued liabilities $ 51,026 $ 56,469 Income taxes payable 26,891 - Short-term loan (note 5) 41,825 43,096 Capital lease obligations 4,996 4,533 Provision for site closure and reclamation costs 24,905 8,420 Future income tax liability - 1,895 ------------------------------------------------------------------------- 149,643 114,413 Capital lease obligations 4,014 6,211 Other long-term liabilities 5,903 3,368 Site closure and reclamation obligations 25,564 37,849 Future income tax liability - 14,350 ------------------------------------------------------------------------- 185,124 176,191 Shareholders' Equity Common shares (note 6) 401,993 311,908 Contributed surplus 6,091 5,269 Accumulated other comprehensive loss (11,281) (89,503) Retained earnings 206,013 187,764 ------------------------------------------------------------------------- 602,816 415,438 ------------------------------------------------------------------------- $ 787,940 $ 591,629 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The accompanying notes form an integral part of these unaudited interim consolidated financial statements. Interim Consolidated Statements of Operations and Comprehensive Income (Loss) Thousands of US dollars, except share and per share amounts, Three Months Ended Sep 30 Nine Months Ended Sep 30 unaudited 2009 2008 2009 2008 ------------------------------------------------------------------------- Revenue $ 120,163 $ 99,267 $ 374,278 $ 324,240 ------------------------------------------------------------------------- Cost of sales (note 3) 81,959 83,720 228,011 249,087 Depreciation and depletion 27,804 20,172 77,393 49,005 Administrative and general 2,424 2,963 7,062 9,190 Net interest income (112) (1,157) (1,022) (6,320) Exploration 3,132 10,247 11,872 27,765 Currency translation loss (gain) 1,262 (40) 4,638 (6,947) Accretion of site closure and reclamation obligations 802 665 2,301 1,619 Write-down of auction rate securities (note 4) 10,440 16,912 10,948 16,912 Other expense (income) (note 11) (125) (106) (953) (10,682) ------------------------------------------------------------------------- 127,586 133,376 340,250 329,629 ------------------------------------------------------------------------- Earnings (loss) before income taxes (7,423) (34,109) 34,028 (5,389) Income tax recovery (expense) Current (5,333) 2,779 (30,453) (5,658) Future 4,193 1,892 14,674 3,121 ------------------------------------------------------------------------- (1,140) 4,671 (15,779) (2,537) ------------------------------------------------------------------------- Net earnings (loss) for the period (8,563) (29,438) 18,249 (7,926) Other comprehensive income (loss) Unrealized gain (loss) on available for sale securities (3,622) (15,713) (3,308) (22,838) Unrealized gain (loss) on translation of self-sustaining operations 29,527 (59,809) 70,582 (44,124) Reclassification of other than temporary loss on available for sale securities to net earnings 10,440 16,912 10,948 16,912 ------------------------------------------------------------------------- 36,345 (58,610) 78,222 (50,050) ------------------------------------------------------------------------- Comprehensive income (loss) $ 27,782 $ (88,048) $ 96,471 $ (57,976) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings (loss) per share Basic $ (0.03) $ (0.12) $ 0.07 $ (0.03) Diluted (0.03) (0.12) 0.07 (0.03) Weighted average shares outstanding Basic 256,014,978 255,467,109 255,876,448 255,157,746 Diluted 256,014,978 255,467,109 256,390,058 255,157,746 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The accompanying notes form an integral part of these interim consolidated financial statements. Interim Consolidated Statements of Cash Flows Thousands of US dollars, Three Months Ended Sep 30 Nine Months Ended Sep 30 unaudited 2009 2008 2009 2008 ------------------------------------------------------------------------- Operating activities: Net earnings (loss) for the period $ (8,563) $ (29,438) $ 18,249 $ (7,926) Non-cash items: Depreciation and depletion 27,804 20,172 77,393 49,005 Unrealized currency translation loss (gain) 3,828 (42) 3,819 (4,311) Unrealized gain on derivative - - - (9,836) Accretion of site closure and reclamation obligations 802 665 2,301 1,619 Loss on disposal of assets 93 156 276 112 Amortization of deferred charges 89 54 196 161 Stock-based compensation 352 417 1,106 1,730 Accrual of employee severance costs 197 662 1,527 969 Future income tax recovery (4,193) (1,892) (14,674) (3,121) Change in fair value of forward contracts 8,262 (22,984) 22,619 15,537 Writedown of auction rate securities 10,440 16,912 10,948 16,912 Changes in operating working capital and other (note 12) 11,341 15,956 21,891 (3,903) ------------------------------------------------------------------------- 50,452 638 145,651 56,948 ------------------------------------------------------------------------- Investing activities: Release of restricted cash - 14,340 - 67,496 Increase in restricted cash (302) (811) (438) (24,723) Purchase of plant and equipment (7,945) (3,445) (26,833) (20,524) Mineral property development (15,047) (10,664) (32,667) (23,959) Transaction costs paid - (679) - (2,912) Acquisition of Perseverance, net of cash acquired - - - (196,590) Repayment of Perseverance hedge portfolio - - - (45,550) Proceeds from sale of equipment 21 13 331 3,234 ------------------------------------------------------------------------- (23,273) (1,246) (59,607) (243,528) ------------------------------------------------------------------------- Financing activities: Repayment of capital lease obligations (1,145) (1,508) (3,804) (4,916) Financing from credit facility 139 389 398 8,745 Repayment of credit facility (468) (797) (1,667) (9,961) Repayment of other long-term liabilities (4) - (328) (746) Issuance of common shares 88,525 173 88,801 1,700 ------------------------------------------------------------------------- 87,047 (1,743) 83,400 (5,178) ------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents 944 (2,825) 4,066 (2,587) ------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents 115,170 (5,176) 173,510 (194,345) Cash and cash equivalents, beginning of period 120,759 76,876 62,419 266,045 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 235,929 $ 71,700 $ 235,929 $ 71,700 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Supplementary cash flow information (note 12) Interim Consolidated Statement of Shareholders' Equity Number of Common Thousands of US dollars, Common Shares Contributed except common shares, unaudited Shares Amount Surplus ------------------------------------------------------------------------- Balance at December 31, 2007 254,452,862 $ 309,455 $ 3,940 Transitional adjustment on adoption of inventory standard - - - Shares issued under employee share purchase plan 382,909 406 - Shares issued on exercise of options 881,300 1,846 (492) Stock-based compensation - 201 1,821 Net earnings - - - Other comprehensive income - - - ------------------------------------------------------------------------- Balance at December 31, 2008 255,717,071 311,908 5,269 Shares issued under new equity offering (note 6) 34,300,000 89,234 - Shares issued under employee share purchase plan 243,864 301 - Shares issued on exercise of options 144,000 398 (132) Stock-based compensation - 152 954 Net earnings - - - Other comprehensive income - - - ------------------------------------------------------------------------- Balance at September 30, 2009 290,404,935 $ 401,993 $ 6,091 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Accumulated Other Thousands of US dollars, Comprehensive Retained except common shares, unaudited Income (loss) Earnings Total ------------------------------------------------------------------------- Balance at December 31, 2007 $ (3,282) $ 176,663 $ 486,776 Transitional adjustment on adoption of inventory standard - 381 381 Shares issued under employee share purchase plan - - 406 Shares issued on exercise of options - - 1,354 Stock-based compensation - - 2,022 Net earnings - 10,720 10,720 Other comprehensive income (86,221) - (86,221) ------------------------------------------------------------------------- Balance at December 31, 2008 (89,503) 187,764 415,438 Shares issued under new equity offering (note 6) - - 89,234 Shares issued under employee share purchase plan - - 301 Shares issued on exercise of options - - 266 Stock-based compensation - - 1,106 Net earnings - 18,249 18,249 Other comprehensive income 78,222 - 78,222 ------------------------------------------------------------------------- Balance at September 30, 2009 $ (11,281) $ 206,013 $ 602,816 ------------------------------------------------------------------------- -------------------------------------------------------------------------

The accompanying notes form an integral part of these interim consolidated financial statements.

---------------------

This press release should be read in conjunction with the Corporation's third quarter MD&A report and accompanying unaudited interim consolidated financial statements, which can be found on Northgate's website at http://www.northgateminerals.com/, in the "Investor Info" section, under "Financial Reports - Quarterly Reports".

--------------------- Q3 2009 Financial Results - Conference Call and Webcast

You are invited to participate in today's live conference call and webcast discussing our third quarter financial results. The conference call and webcast will be held at 10:00 am Toronto time.

You may participate in the Northgate Conference Call by calling 416-644-3425 or toll free in North America at 1-800-594-3790. To ensure your participation, please call five minutes prior to the scheduled start of the call.

A live audio webcast and presentation package will be available on Northgate's homepage at http://www.northgateminerals.com/.

Conference Replay

A replay of the conference call will be available beginning on November 3, 2009 at 12:00 p.m. ET until November 17, 2009 at 11:59 p.m. ET.

Replay Access # 416-640-1917 Passcode: 4167 983 followed by the number sign Replay Access # 877-289-8525 Passcode: 4167 983 followed by the number sign --------------------

Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. The company is forecasting record gold production of 365,000 ounces in 2009 and is targeting growth through further acquisition opportunities in stable mining jurisdictions around the world.

-------------------- Cautionary Note Regarding Forward-Looking Statements and Information:

This Northgate press release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, concerning Northgate's future financial or operating performance and other statements that express management's expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "budget", "scheduled", "estimates", "forecasts", "intends", "plans" and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would" or "might" "be taken", "occur" or "be achieved". Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Northgate operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Northgate cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Northgate's actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to gold and copper price volatility; fluctuations in foreign exchange rates and interest rates; the impact of any hedging activities; discrepancies between actual and estimated production, between actual and estimated reserves and resources or between actual and estimated metallurgical recoveries; costs of production; capital expenditure requirements; the costs and timing of construction and development of new deposits; and the success of exploration and permitting activities. In addition, the factors described or referred to in the section entitled "Risk Factors" in Northgate's Annual Information Form for the year ended December 31, 2008 or under the heading "Risks and Uncertainties" in Northgate's 2008 Annual Report, both of which are available on the SEDAR website at http://www.sedar.com/, should be reviewed in conjunction with the information found in this press release. Although Northgate has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this press release is made as of the date of this press release, and Northgate disclaims any intention or obligation to update or revise such information, except as required by applicable law.

Northgate Minerals Corporation

CONTACT: Ms. Keren R. Yun, Director, Investor Relations, Tel: (416)
363-1701 ext. 233, Email: ngx@northgateminerals.com, Website:
http://www.northgateminerals.com/

Northern Trust Named Best Private Bank in North America

LONDON, November 3 /PRNewswire/ --

- Professional Wealth Management & The Banker award recognizes need for transparency, trusted advice

Northern Trust, a leading provider of financial services for affluent individuals and institutions, has been named Best Private Bank in North America by Professional Wealth Management and The Banker magazines, both published by the Financial Times Group.

"The North American award category was a particularly competitive one, with a number of powerful players making impressive submissions," said Yuri Bender, Editor in Chief of Professional Wealth Management. "The judges chose Northern Trust as the winner for factors including a fiduciary mindset that attempts to put the client first, its family focus and investment in customer-facing technology."

"We are deeply honored to receive this recognition," said Sherry Barrat, president of Northern Trust Personal Financial Services. "Our clients place a high premium on trusted advice, transparency, and financial strength - principles that have been at the core of Northern Trust over its 120-year history. We are passionate about placing our clients at the center of everything we do, and helping them reach their financial goals."

The award, one of several Global Private Banking inaugural awards, was presented by Professional Wealth Management and The Banker, at an Oct. 27 ceremony in Geneva. Private banks and wealth managers worldwide entered the awards and winners were selected following examination of quantitative and qualitative aspects of the private banking/wealth management business.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2009, Northern Trust had assets under custody of US$3.6 trillion, and assets under investment management of US$611 billion. For 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com.

Northern Trust operates in Australia as a foreign authorised deposit-taking institution (foreign ADI) and is regulated by the Australian Prudential Regulation Authority.

Northern Trust in Hong Kong is a securities company regulated by the Securities and Futures Commission.

Northern Trust in Singapore is a foreign wholesale bank regulated by the Monetary Authority of Singapore.

Northern Trust operates in China as a Representative Office and is regulated by the China Banking Regulatory Commission.

Northern Trust (Guernsey) Limited, Northern Trust Fiduciary Services (Guernsey) Limited, Northern Trust Fiduciary Company (Guernsey) Limited and Northern Trust International Fund Administration Services (Guernsey) Limited are licensed by the Guernsey Financial Services Commission.

Northern Trust International Fund Administrators (Jersey) Limited and Northern Trust Fiduciary Services (Jersey) Limited are regulated by the Jersey Financial Services Commission.

Northern Trust Global Services is authorised and regulated in the Netherlands by De Nederlandsche Bank.

Northern Trust Global Services Limited Luxembourg Branch is authorised and regulated by the Financial Services Authority and in Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF) and Northern Trust Luxembourg Management Company S.A. is regulated by the CSSF.

Northern Trust Global Services Limited - Abu Dhabi. Representative Office, Licence number 13/238/2008.

Where Northern Trust's UK entities undertake regulated business, they are authorised and regulated in the United Kingdom by the Financial Services Authority.

Northern Trust International Fund Administration Services (Ireland) Limited and Northern Trust Fiduciary Services (Ireland) Limited are regulated by the Financial Regulator.

The Northern Trust Company operates in Canada as The Northern Trust Company, Canada Branch which is an authorized foreign bank branch under the Bank Act (Canada). Trustee related services in Canada are provided by the wholly owned subsidiary The Northern Trust Company, Canada, an authorized trust company under the Trust & Loans Companies Act (Canada). Deposits with The Northern Trust Company and its affiliates and subsidiaries are not insured by the Canada Deposit Insurance Corporation.

Northern Trust Global Services Ltd (UK) Sweden Filial is a BCD Passported branch of Northern Trust Global Services Ltd a firm authorised and regulated in the UK by the Financial Services Authority ('FSA').

Northern Trust Corporation

Doug Holt, +1-312-557-1571, Doug_Holt@ntrs.com, Camilla Greene, +44-(0)-20-7982-2176, Camilla_Greene@ntrs.com, both of Northern Trust Corporation

MDS Inc. and Danaher Corporation Receive Second Request for Information from U.S. Federal Trade Commission for MDS Analytical Technologies Sale

TORONTO, and WASHINGTON, D.C., Nov. 3 /PRNewswire-FirstCall/ -- MDS Inc. (TSX: MDS; NYSE: MDZ), a leading provider of products and services to the global life sciences markets, and Danaher Corporation , a diversified technology leader, today announced that they have each received a Second Request for information from the Federal Trade Commission (FTC) regarding the sale of MDS Analytical Technologies.

The Second Request relates to a global market segment that MDS and Danaher estimate generates less than $50 million in annual revenues for all sellers combined.

The information request was issued under notification requirements of the Hart Scott Rodino Antitrust Improvements Act of 1976, as amended (HSR Act). The effect of the Second Request is to extend the waiting period imposed by the HSR Act for a period of 30 calendar days from the date of the parties' substantial compliance with the request, unless the waiting period is earlier terminated.

MDS Inc. and Danaher Corporation continue to cooperate with the FTC and currently expect the transaction, which was announced on September 2, 2009 and received approval from MDS shareholders on October 20, 2009, to close before the end of the first calendar quarter of 2010, subject to the satisfaction of the conditions to closing.

About Danaher Corporation

Danaher is a diversified technology leader that designs, manufactures, and markets innovative products and services to professional, medical, industrial, and commercial customers. Our portfolio of premier brands is among the most highly recognized in each of the markets we serve. Driven by a foundation provided by the Danaher Business System, our 50,000 associates serve customers in more than 125 countries and generated $12.7 billion of revenue in 2008. For more information, please visit our Website: http://www.danaher.com/

About MDS Inc.

MDS Inc. (TSX: MDS; NYSE: MDZ) is a global life sciences company that provides market-leading products and services that customers need for the development of drugs and diagnosis and treatment of disease. MDS Inc. is a leading global provider of pharmaceutical contract research, medical isotopes for molecular imaging, radiotherapeutics, and analytical instruments. MDS has more than 3,600 highly skilled people in 13 countries. Find out more at http://www.mdsinc.com/ or by calling 1-888-MDS-7222, 24 hours a day.

MDS Inc.

CONTACT: MDS CONTACTS: MEDIA: Janet Ko, (905) 267-4226,
janet.ko@mdsinc.com; INVESTORS: Peter Dans, (905) 267-4230,
peter.dans@mdsinc.com; DANAHER CONTACT: MEDIA AND INVESTORS: Matt McGrew,
(202) 828-0850, matt.mcgrew@danaher.com

Ritchie Bros. Auctioneers reports strong results through the third quarter of 2009

VANCOUVER, Nov. 3 /PRNewswire-FirstCall/ -- Ritchie Bros. Auctioneers Incorporated (NYSE and TSX: RBA) announces net earnings for the nine months ended September 30, 2009 of $71.6 million, or $0.68 per diluted share, and adjusted net earnings of $71.0 million, or $0.67 per diluted share. This represents adjusted earnings per share growth of over 7% compared to adjusted net earnings of $66.3 million, or $0.63 per diluted share, for the first nine months of 2008. Adjusted net earnings is a non-GAAP financial measure and is defined below. Financial statement net earnings for the first nine months of 2008 were $74.3 million, or $0.70 per diluted share. The Company conducted 138 industrial auctions in 12 countries throughout North America, Europe, the Middle East, Central America, Asia and Australia during the first nine months of 2009, and set eight regional gross auction proceeds records. During the quarter, the Company held its first ever auction in India and held its first auction in Panama since 1999. All dollar amounts in this release are presented in United States dollars.

Quarterly dividend

The Company is also announcing the declaration of another quarterly cash dividend of $0.10 per common share payable on December 18, 2009 to shareholders of record on November 27, 2009.

Gross auction proceeds and auction revenues

Gross auction proceeds for the nine months ended September 30, 2009 were $2.60 billion, 4% lower than the first nine months of 2008. Auction revenues were $280.1 million for the nine months ended September 30, 2009, a 3% increase compared to the first nine months of 2008. Gross auction proceeds and auction revenues in local currency, primarily the US, Canadian and Australian dollar and the Euro, increased 3% and 11%, respectively, in the first nine months of 2009 compared to the same period in 2008. The Company's auction revenue rate (auction revenues as a percentage of gross auction proceeds) was 10.77% in the first nine months of 2009, compared to 10.07% in the first nine months of 2008, mainly due to the superior performance of its underwritten business.

The Company achieved gross auction proceeds of $693.3 million in the third quarter of 2009, a 10% decrease compared to $767.7 million in the third quarter of 2008. The growth in the Company's gross auction proceeds in Canada was more than offset by a decline in gross auction proceeds in the United States. Auction revenues were $75.9 million for the three months ended September 30, 2009, compared to $75.9 million for the third quarter of 2008. The Company's auction revenue rate was 10.95% for the third quarter of 2009, higher than the auction revenue rate of 9.89% in the third quarter of 2008 mainly due to the superior performance of its underwritten business and the mix of equipment sold.

Net earnings for the quarter

Net earnings for the three months ended September 30, 2009 were $12.9 million, or $0.12 per diluted share, compared to net earnings for the three months ended September 30, 2008 of $11.9 million, or $0.11 per diluted share. Adjusted net earnings for the three months ended September 30, 2009 were $12.9 million, or $0.12 per diluted share, compared to adjusted net earnings of $13.0 million, or $0.12 per diluted share for the three months ended September 30, 2008.

Numbers of bidders, buyers and sellers

The Company had almost 247,000 bidder registrations at its unreserved industrial auctions in the first nine months of 2009, of which almost 72,000 were successful buyers. In the first nine months of 2008, the Company had almost 198,000 bidder registrations, of which almost 60,000 were buyers.

Ritchie Bros. worked with a large number of truck, equipment and other asset sellers in the first nine months of 2009, selling close to 209,000 lots on behalf of over 27,000 consignors. In the first nine months of 2008, Ritchie Bros. sold close to 178,000 lots for over 27,000 consignors.

Average Ritchie Bros. auction

The Company's auctions varied in size over the 12 months ended September 30, 2009, but the average Ritchie Bros. industrial auction attracted over 1,600 bidders who competed for over 1,400 lots consigned by 185 consignors. For the 12 months ended September 30, 2008, the average industrial auction attracted over 1,400 bidders, who competed for almost 1,300 lots consigned by 191 consigners. The average gross auction proceeds per industrial auction for the 12 months ended September 30, 2009 was approximately $16.9 million (12 months ended September 30, 2008 - $18.1 million).

Online bidding statistics

Ritchie Bros. sold over $600 million of trucks, equipment, and other assets to online bidders during the first nine months of 2009, representing a 20% increase compared to the first nine months of 2008 (first nine months of 2008 - over $500 million). Almost 123,000 unique customers from over 180 countries have now registered and received approval to bid online at Ritchie Bros. auctions (September 30, 2008 - more than 93,000 customers from almost 180 countries). Internet bidders represented approximately 30% of the total registered bidders at Ritchie Bros. industrial auctions for the nine month period ended September 30, 2009, and they were the buyer or runner up bidder on 35% of the lots offered online at these auctions (first nine months of 2008 - 29%). Since launching its real-time online bidding service in 2002, the Company has now sold almost $3.1 billion worth of trucks, equipment, and other assets to online bidders (September 30, 2008 - $2.3 billion) confirming Ritchie Bros.' position as the largest seller in the world of used equipment and trucks to online buyers.

Summary comments

"We are very pleased with our sustained earnings per share growth in 2009, as we continue to demonstrate success executing our strategy in the face of challenging market conditions in some of our markets. The ongoing uncertainty in the market has been impacting our customers' decision making, particularly in the United States" said Peter Blake, Ritchie Bros.' CEO. "In some regions, a significant number of used equipment owners continue to delay the sale of their surplus assets in anticipation of a rebound in the economy or more certainty about the future, which has affected our gross auction proceeds growth in 2009. In addition, the mix of equipment we have sold in 2009 included more lower value lots compared to 2008, impacting our average GAP per lot and positively impacting our commission rate."

"Our business model and long term growth strategy remain intact in spite of the challenging market conditions," continued Mr. Blake. "We're attracting record numbers of bidders and introducing many first-time buyers and sellers to our unreserved public auctions in established and frontier markets around the world, mainly because we deliver value. Our first ever auction in India and first auction in Central America since 1999 were both resounding successes, and we're looking forward to conducting our second auction in Poland and first ever auction in Turkey later this year. This has been a challenging year for many people. We can't fix the economy, but we can continue to give our customers the certainty of a fair, transparent and efficient means of buying and selling used equipment."

The Company defines adjusted net earnings as financial statement net earnings excluding the after-tax effects of excess property sales and significant foreign exchange gains or losses resulting from financing activities that are not expected to recur, and has provided a reconciliation below. Adjusted net earnings is a non-GAAP financial measure that does not have a standardized meaning, and is therefore unlikely to be comparable to similar measures presented by other companies. The Company believes that comparing adjusted net earnings as defined above for different financial periods provides more useful information about the growth or decline of its net earnings for the relevant financial period and identifies the impact of items which the Company does not consider to be part of its normal operating results.

Gross auction proceeds represent the total proceeds from all items sold at Ritchie Bros. auctions. The Company's definition of gross auction proceeds may differ from those used by other participants in its industry. Gross auction proceeds is an important measure the Company uses in comparing and assessing its operating performance. It is not a measure of the Company's financial performance, liquidity or revenue and is not presented in its consolidated financial statements. The Company believes that auction revenues, which is the most directly comparable measure in its Statements of Operations, and certain other line items, are best understood by considering their relationship to gross auction proceeds. Auction revenues represent the revenues earned by Ritchie Bros. in the course of conducting its auctions, and consist primarily of commissions earned on consigned equipment and net profit on the sale of equipment purchased by the Company and sold in the same manner as consigned equipment.

About Ritchie Bros.

Established in 1958, Ritchie Bros. Auctioneers (NYSE and TSX: RBA) is the world's largest industrial auctioneer, selling more equipment to on-site and online bidders than any other company in the world. The Company has over 110 locations in more than 25 countries, including 39 auction sites worldwide. Ritchie Bros. sells, through unreserved public auctions, a broad range of used and unused industrial assets, including equipment, trucks and other assets utilized in the construction, transportation, agricultural, material handling, mining, forestry, petroleum and marine industries. The Company maintains a web site at http://www.rbauction.com/ and sponsors an equipment wiki at http://www.ritchiewiki.com/.

Earnings Conference Call

Ritchie Bros. is hosting a conference call to discuss its financial results for the nine months ended September 30, 2009 at 8:00am Pacific Time (11:00am Eastern Time) on November 3, 2009. To access a live broadcast of the conference call, please go to the Ritchie Bros. website http://www.rbauction.com/, click on 'About Ritchie Bros.' then click on 'Investor Information'. Please go to the website at least fifteen minutes early to download and install any necessary audio software. A replay will be available on the website shortly after the call.

Forward-looking Statements

The discussion in this press release relating to future events or operating periods contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) that involve risks and uncertainties, including, in particular, statements regarding anticipated results for future periods; growth and demand for our services during challenging economic times; and our business model and growth strategy. These risks and uncertainties include: the numerous factors that influence the supply of and demand for used equipment; fluctuations in the market values of used equipment; seasonal and periodic variations in operating results; actions of competitors; the success of the Company's online bidding initiatives; economic and other conditions in local, regional and global markets; ongoing access to capital; our ability to attract and retain key employees, develop additional auction sites and successfully execute our strategic initiatives; and other risks and uncertainties as detailed from time to time in the Company's SEC and Canadian securities filings, including the Company's Management's Discussion and Analysis of Financial Condition and Results of Operations for the year ended December 31, 2008 and for the nine months ended September 30, 2009, available on the SEC, SEDAR and Company's websites. Actual results may differ materially from those forward-looking statements. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

Consolidated Statements of Operations Nine months Nine months (Amounts in table and related ended ended footnotes are in USD thousands, September 30, September 30, except share and per share amounts) 2009 2008 (unaudited) (unaudited) ------------------------------ Gross auction proceeds $ 2,600,910 $ 2,713,233 -------------- ------------- -------------- ------------- Auction revenues $ 280,068 $ 273,125 Direct expenses 35,481 36,736 -------------- ------------- 244,587 236,389 Expenses Depreciation and amortization 22,419 18,223 General and administrative(1) 123,308 126,221 -------------- ------------- Earnings from operations 98,860 91,945 Other income (expense) Interest expense (365) (743) Interest income 1,770 3,618 Foreign exchange gain (loss)(1)(2) (737) 523 Gain (loss) on disposition of capital assets(3) (138) 6,813 Other income 1,471 992 -------------- ------------- Earnings before income taxes 100,861 103,148 Income taxes 29,243 28,888 -------------- ------------- Net earnings(2)(3) $ 71,618 $ 74,260 -------------- ------------- -------------- ------------- Net earnings per share $ 0.68 $ 0.71 Net earnings per share - diluted $ 0.68 $ 0.70 Weighted average shares outstanding 105,064,864 104,676,734 Diluted weighted average shares outstanding 105,681,072 105,711,309 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings in accordance with Canadian GAAP $ 71,618 $ 74,260 Less: after-tax foreign exchange impact of financing transactions(2) (664) (708) Less: after-tax gain on sale of property(3) - (7,295) -------------- ------------- Adjusted net earnings $ 70,954 $ 66,257 -------------- ------------- -------------- ------------- Adjusted net earnings per share $ 0.68 $ 0.63 Adjusted net earnings per share - diluted $ 0.67 $ 0.63 (1) Figures have been reclassified to conform with presentation adopted at December 31, 2008. (2) Net earnings for the first nine months of 2009 included a foreign exchange gain of $759 ($664 after tax, or $0.01 per diluted share) on U.S. dollar denominated bank debt held by a subsidiary that has the Canadian dollar as its functional currency. The equivalent amount in the first nine months of 2008 was a foreign exchange loss of $2,057 ($1,759 after tax, or $0.02 per diluted share). The bank debt was assigned in January 2009 to a U.S. dollar denominated subsidiary to eliminate this foreign exchange exposure. In addition, the foreign exchange gain recorded in the first nine months of 2008 included the reclassification to net earnings of foreign currency translation gains of $2,769 ($2,467 after tax, or $0.02 per diluted share). These gains were previously recorded in the cumulative translation adjustment account and were reclassified in the first nine months of 2008 as a result of the settlement of a number of foreign currency denominated intercompany loans that had been considered long-term in nature. No long-term intercompany loans were settled in the first nine months of 2009 that resulted in a significant foreign exchange adjustment. The Company has highlighted these amounts because it does not expect such foreign exchange gains or losses relating to financial transactions to recur in future periods. (3) Net earnings for the first nine months of 2008 included total gains of $8,304 ($7,295 after tax) recorded on the sale of excess property. The Company highlighted this amount because it does not consider this gain to be part of the normal course of its operations. Consolidated Statements of Operations Three months Three months (Amounts in table and related ended ended footnotes are in USD thousands, September 30, September 30, except share and per share amounts) 2009 2008 (unaudited) (unaudited) ------------------------------ Gross auction proceeds $ 693,288 $ 767,718 -------------- ------------- -------------- ------------- Auction revenues $ 75,934 $ 75,909 Direct expenses 10,515 10,240 -------------- ------------- 65,419 65,669 Expenses Depreciation and amortization 7,823 6,636 General and administrative(1) 42,106 41,294 -------------- ------------- Earnings from operations 15,490 17,739 Other income (expense) Interest expense (139) (229) Interest income 550 1,272 Foreign exchange loss(1)(2) (1,267) (1,922) Loss on disposition of capital assets (41) (497) Other income 773 315 -------------- ------------- Earnings before income taxes 15,366 16,678 Income taxes 2,474 4,744 -------------- ------------- Net earnings(2) $ 12,892 $ 11,934 -------------- ------------- -------------- ------------- Net earnings per share $ 0.12 $ 0.11 Net earnings per share - diluted $ 0.12 $ 0.11 Weighted average shares outstanding 105,228,846 104,759,284 Diluted weighted average shares outstanding 106,183,300 105,780,001 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings in accordance with Canadian GAAP $ 12,892 $ 11,934 Less: after-tax foreign exchange impact of financing transactions(2) - 1,091 -------------- ------------- Adjusted net earnings $ 12,892 $ 13,025 -------------- ------------- -------------- ------------- Adjusted net earnings per share $ 0.12 $ 0.12 Adjusted net earnings per share - diluted $ 0.12 $ 0.12 (1) Figures have been reclassified to conform with presentation adopted at December 31, 2008. (2) Net earnings for the third quarter of 2008 included a foreign exchange loss of $1,276 ($1,091 after tax, or $0.01 per diluted share) on U.S. dollar denominated bank debt held by a subsidiary that has the Canadian dollar as its functional currency. The bank debt was assigned in January 2009 to a U.S. dollar denominated subsidiary to eliminate this foreign exchange exposure. The Company has highlighted this amount because it does not expect such foreign exchange gains or losses relating to financial transactions to recur in future periods. Selected Balance Sheet Data September 30, December 31, (USD thousands) 2009 2008 (unaudited) ------------------------------ Current assets $ 441,457 $ 193,940 Current liabilities 389,623 146,831 -------------- ------------- Working capital $ 51,834 $ 47,109 Total assets 1,064,244 689,488 Long-term debt 128,533 67,411 Total shareholders' equity 534,597 465,162 Selected Operating Data (unaudited) Nine months Nine months ended ended September 30, September 30, 2009 2008 ------------------------------ Auction revenues as percentage of gross auction proceeds 10.77% 10.07% Number of consignments at industrial auctions 27,014 27,068 Number of bidders at industrial auctions 246,967 197,824 Number of buyers at industrial auctions 71,984 59,625 Number of permanent auction sites 31 30 Number of regional auction units 8 8

Ritchie Bros. Auctioneers

CONTACT: Jeremy Black, Vice President, Business Development, Corporate
Secretary, Phone: (778) 331-5500, Fax: (778) 331-4628, Email:
ir@rbauction.com

World Energy and SOCIALCARBON Standard Partner to Streamline Voluntary Global Carbon TradingMove Provides More Quality, Choice and Registry-Backed Supply on World Green Exchange

SAO PAULO, Brazil and WORCESTER, MA, Nov. 3 /PRNewswire-FirstCall/ -- World Energy Solutions, Inc. (NASDAQ: XWES; TSX: XWE), an operator of online exchanges for energy and green commodities, today announced a new partnership agreement with SOCIALCARBON(C) Standard, one of the world's top voluntary standards. The alliance paves the way for more projects with the SOCIALCARBON imprimatur to be posted on the World Green Exchange, one of the world's largest primary carbon marketplaces.

To date, World Energy has partnered with three leading carbon standards, including the Gold Standard, Canadian Standards Association, and now SOCIALCARBON Standard, developed by the Ecologica Institute, a Brazilian NGO. This backing not only provides buyers added assurance that the carbon commodities they purchase on the World Green Exchange are of high quality and independently verified, but, in the case of SOCIALCARBON, it also brings the added benefit of tight integration with a leading registry, Markit Environmental Registry (formerly TZ1 Registry), also a World Green Exchange partner. As a result, the World Green Exchange offers a "closed loop" between project supply, registry and exchange, which can streamline the purchase of verified emission reductions (VERs).

Most SOCIALCARBON projects have been developed by the Social Carbon Company (SCC), a for-profit offset project developer based in Brazil, which is the first organization accredited by the Ecologica Institute to use SOCIALCARBON(R). SCC will provide SOCIALCARBON credits to the World Green Exchange. The Ecologica Institute is now accrediting other companies and project developers with the goal of widening the geographical reach of SOCIALCARBON projects.

"We believe that measures World Energy has taken to help buyers and sellers on the World Green Exchange transact with confidence are in keeping with the goals of SOCIALCARBON," said Luiz Leal, Director at Ecologica Institute. "This commitment, built on the premise of project and commodity transparency, supports the approach SOCIALCARBON has embraced to bring high value, high quality projects to market."

Added Kenneth Ivanic, Vice President, Environmental Markets at World Energy: "Standards, registries and exchanges each play a distinct and pivotal role in the effective operation of the carbon market. The addition of SOCIALCARBON to the family of top standards bodies bringing projects to the World Green Exchange is an important step in the evolution of our platform and in the overall positive experience of the world's carbon commodities buyers."

The World Green Exchange(R) is an open, information-rich marketplace that enables buyers and sellers of carbon commodities to transact with confidence. Working with leading standards, registries, consultants, project developers and banks, the World Green Exchange streamlines the procurement process while delivering transparency, quality, choice and value. Over 100 million green commodities, spanning CERs, VERs, RECs, Alberta offsets and RGGI allowances, have been transacted on the World Green Exchange, making it one of the largest primary carbon marketplaces in the world.

SOCIALCARBON(R) is a standard developed to strengthen co-benefits of carbon offset projects (http://www.socialcarbon.org/). It was developed by the Ecologica Institute (Brazil) as a set of analytical tools that assesses the social, environmental and economic performance of projects, thereby demonstrating, through continual monitoring, the project's contribution to sustainable development.

About Ecologica Institute

The Ecologica Institute is a Non-Profit Organization, located in northern Brazil, that carries out projects in the Amazon Rainforest. Ecologica Institute's mission is to help reduce the effects of climate change through scientific research, conservation, environmental preservation, and sustainable community development. For more information please visit http://www.socialcarbon.org/.

About World Energy Solutions, Inc.

World Energy (NASDAQ: XWES; TSX: XWE) operates online exchanges for energy and green commodities. For buyers and sellers of electricity, natural gas, capacity, and green-energy assets who are impacted by today's volatile markets, World Energy's proven approach has transformed the normally complex procurement process into a powerful, streamlined vehicle for cost savings. In addition to enabling customers to seek competitive pricing on traditional energy commodities, World Energy is taking a leadership position in the emerging environmental-commodities markets. Its award-winning World Green Exchange(R) supports the ground-breaking Regional Greenhouse Gas Initiative's (RGGI) cap and trade program for CO(2) emissions. For more information, please visit http://www.worldenergy.com/.

This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to: our revenue is dependent on actual future energy purchases pursuant to completed procurements; the demand for our services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; we depend on a small number of key energy consumers, suppliers and channel partners; there are factors outside our control that affect transaction volume in the electricity market; and there are other factors identified in our Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.

World Energy Solutions, Inc.

CONTACT: Investor Relations: Phil Adams, World Energy Solutions, Inc.,
(508) 459-8100, padams@worldenergy.com or Craig Armitage, The Equicom Group,
(416) 815-0700 x278, carmitage@equicomgroup.com; Media Relations: Dan Mees,
World Energy Solutions, Inc., (508) 459-8156, dmees@worldenergy.com or Cecilia
Michellis, Ecologica Institute, +55 11 2649 0036, cecilia@socialcarbon.org

Rigel Announces Third Quarter 2009 Financial Results

SOUTH SAN FRANCISCO, Calif., Nov. 3 /PRNewswire-FirstCall/ -- Rigel Pharmaceuticals, Inc. today reported financial results for the third quarter and nine months ended September 30, 2009.

For the third quarter of 2009, Rigel reported a net loss of $26.7 million, or $0.70 per share, compared to a net loss of $37.7 million, or $1.03 per share, in the third quarter of 2008. Weighted average shares outstanding for the third quarters of 2009 and 2008 were 38.1 million and 36.6 million, respectively.

Rigel reported total operating expenses of $26.7 million in the third quarter of 2009, compared to $38.7 million in the third quarter of 2008. The decrease in operating expenses was primarily due to the completion of two Phase 2b clinical trials (TASKi2 and TASKi3) in July, a decrease in stock-based compensation expense, and cost savings resulting from our restructuring implemented in the first quarter of 2009. Stock-based compensation expenses decreased from $6.0 million in the third quarter of 2008 to $3.5 million in the third quarter of 2009, primarily due to a higher valuation of options granted in the first quarter of 2008 and full expense recognition of the majority of those options by the end of 2008.

For the nine months ended September 30, 2009, Rigel reported a net loss of $86.5 million, or $2.32 per share, compared to a net loss of $99.0 million in the first nine months of 2008, or $2.76 per share.

As of September 30, 2009, Rigel had cash, cash equivalents and available for sale securities of $156.1 million, compared to $134.5 million as of December 31, 2008. In September 2009, Rigel completed a public offering in which it sold 14,950,000 shares of common stock at a public offering price of $7.25 per share. The aggregate net proceeds of the offering were approximately $101.5 million after deducting underwriting discounts and commissions, and offering expenses.

R788 in RA Clinical Update

Last week, Rigel met with representatives of the U.S. Food and Drug Administration (FDA) to discuss the clinical profile of R788, and Rigel's proposed Phase 3 development plan for patients with rheumatoid arthritis. As a result of that meeting, Rigel expects to move forward with the plan it proposed to the FDA, including the initiation of a Phase 3 trial in the first half of 2010, pending the completion of a collaboration agreement. Rigel plans to interact with representatives of the European Medicines Agency (EMEA) by the end of 2009 to discuss the European approval requirements.

"Our recent successful public offering following the completion of our Phase 2b trials indicates that interest in our clinical programs, and R788 in particular, remains strong," said James M. Gower, chairman and chief executive officer of Rigel. "We still expect to enter into a corporate collaboration agreement before initiation of our planned Phase 3 trial of R788 in rheumatoid arthritis patients in the first half of 2010," he added.

About Rigel

Rigel is a clinical-stage drug development company that discovers and develops novel, small-molecule drugs for the treatment of inflammatory/autoimmune diseases and metabolic diseases. Our pioneering research focuses on intracellular signaling pathways and related targets that are critical to disease mechanisms. Rigel's productivity has resulted in strategic collaborations with large pharmaceutical partners to develop and market our product candidates. Rigel has product development programs in inflammatory/autoimmune diseases such as rheumatoid arthritis, thrombocytopenia and asthma, as well as in cancer.

This press release contains "forward-looking" statements, including statements related to Rigel's plans to pursue further clinical development of R788 and the timing thereof and Rigel's ability to enter into a corporate collaboration agreement with respect to R788 on the anticipated timing, or at all. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as "expect," plan," will," and similar expressions are intended to identify these forward-looking statements. These forward-looking statements are based upon Rigel's current expectations and involve risks and uncertainties. There are a number of important factors that could cause Rigel's results to differ materially from those indicated by these forward-looking statements, including, without limitation, risks associated with the timing and success of clinical trials and the commercialization of product candidates, potential problems that may arise in the research and development and approval process and risks associated with Rigel's ability to enter into a collaboration agreement with respect to R788 and reliance on a corporate partner, as well as other risks detailed from time to time in Rigel's filings with the SEC, including under the heading "Risk Factors" in the prospectus supplement related to Rigel's recent public offering filed with the Securities and Exchange Commission on September 17, 2009. Rigel does not undertake any obligation to update forward-looking statements and expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein.

Contact: Ryan D. Maynard Phone: 650.624.1284 Email: invrel@rigel.com Contact: Raul R. Rodriguez Phone: 650.624.1302 Email: invrel@rigel.com STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- (unaudited) (unaudited) Revenues: Contract revenues $- $- $- $- Operating expenses: Research and development (see Note A) 21,082 31,232 70,568 81,268 General and administrative (see Note A) 5,573 7,450 15,226 21,436 Restructuring charges (see Note A) - - 1,141 - --- --- ----- --- Total operating expenses 26,655 38,682 86,935 102,704 ------ ------ ------ ------- Loss from operations (26,655) (38,682) (86,935) (102,704) Interest income, net 4 991 388 3,722 --- --- --- ----- Loss before income taxes (26,651) (37,691) (86,547) (98,982) Income tax benefit - - 93 - --- --- --- --- Net loss $(26,651) $(37,691) $(86,454) $(98,982) ======== ======== ======== ======== Net loss per share, basic and diluted $(0.70) $(1.03) $(2.32) $(2.76) ====== ====== ====== ====== Weighted average shares used in computing net loss per share, basic and diluted 38,135 36,581 37,185 35,837 ====== ====== ====== ====== ---------- Note A Stock-based compensation expense included in: Research and development $2,356 $3,035 $6,309 $9,229 General and administrative 1,176 3,001 3,226 8,572 Restructuring charges - - 122 - --- --- --- --- $3,532 $6,036 $9,657 $17,801 ====== ====== ====== ======= SUMMARY BALANCE SHEET DATA (in thousands) September 30, December 31, 2009 2008(1) ---- ------ (unaudited) Cash, cash equivalents and available for sale securities $156,078 $134,477 Total assets 164,295 143,858 Stockholders' equity 130,308 104,165 (1) Derived from audited financial statements

Photo: http://www.newscom.com/cgi-bin/prnh/20030226/RIGLLOGO
http://photoarchive.ap.org/
PRN Photo Desk photodesk@prnewswire.com Rigel Pharmaceuticals, Inc.

CONTACT: Ryan D. Maynard, +1-650-624-1284, or Raul R. Rodriguez,
+1-650-624-1302, both of Rigel Pharmaceuticals, Inc., invrel@rigel.com

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

Concur Mobile for iPhone Now Available on Apple's App StoreFree mobile application enables Concur Travel & Expense clients to easily change or update itineraries, capture expenses and approve expense reports - all from their iPhone

REDMOND, Wash., Nov. 3 /PRNewswire-FirstCall/ -- Concur , the world's leading provider of on-demand Employee Spend Management services, today announced that Concur® Mobile for the iPhone is now available as a free download from the Apple App Store. This powerful extension to Concur® Travel & Expense - Concur's innovative end-to-end travel and expense management service - enables iPhone users to manage their itinerary, conduct in-policy business travel transactions, capture T&E expense data and approve expense reports - all while on the road. See a video of Concur Mobile for iPhone.

Already in use by thousands of business travelers on BlackBerry or Windows Mobile devices, Concur Mobile is the business travel companion that makes life easier for the mobile workforce while also helping companies more tightly control the significant amount of unmanaged employee spend that occurs during business travel. Now that Concur Mobile is available as a free download for iPhone users, for the first time ever, organizations can provide their business travelers with a choice from among the three leading smartphone platforms to better manage and control business travel and T&E spend.

"Apple's iPhone is a transformative mobile device that has become an indispensable productivity tool for business travelers around the globe," said Katherine Sullivan, Senior Director, Solution Marketing for Concur. "We're excited that the millions of users of Concur's powerful enterprise application - Concur Travel & Expense - can now leverage this intuitive mobile platform to help them manage their travel and expenses while on the road. This is yet another example of Concur's continuous innovation to help clients increase T&E policy compliance and drive down costs, while making life easier for the mobile workforce."

Concur Mobile enables travelers to quickly view their itinerary booked through Concur Travel & Expense, change existing flights and add or delete items such as hotels, rental cars, dining reservations and taxis - all from their mobile phone and all within policy. The solution also lets business travelers quickly and easily capture miscellaneous out-of-pocket purchases and tips, ensuring that these commonly forgotten transactions are automatically and accurately accounted for within the expense report.

Busy managers can even review their employees' expense reports in detail, right from their hand-held device, allowing them to approve or reject expense reports quickly, no matter where they are. By seamlessly connecting to Concur Travel & Expense, Concur Mobile helps drive compliance and minimize program leakage by delivering access to in-policy travel choices and accurately capturing the resulting spend.

"The mobile worker is a growing and important component of the global workforce, which accounted for 847.8 million workers globally in 2008," according to Sean Ryan, research analyst for Mobile Enterprise at IDC, and co-author of the recent IDC report Enterprise Mobility in the Cloud. "The mobile solutions now emerging from on-demand service providers like Concur provide a template for how companies can leverage mobility to extend the value of their enterprise applications," says Robert Mahowald, co-author of the report and research director for SaaS and Cloud Services at IDC.

Apple and iPhone are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

About Concur

Concur is the world's leading provider of on-demand Employee Spend Management services. Trusted by thousands of organizations to reach millions of employees, Concur's award-winning solutions streamline business travel and expense reporting, and improve invoice processing - delivering rapid ROI by helping companies increase efficiency, control employee spend and drive down operational costs. Learn more at http://www.concur.com/.

Concur

CONTACT: Stefanie Johansen of Weber Shandwick, +1-425-452-5468,
SJohansen@WeberShandwick.com, for Concur

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

Data for EntreMed's ENMD-2076 to Be Presented at the Upcoming AACR-NCI-EORTC ConferenceData from the ENMD-2076 Phase 1 Leukemia Trial to be Included

ROCKVILLE, Md., Nov. 3 /PRNewswire-FirstCall/ -- EntreMed, Inc. , a clinical-stage pharmaceutical company developing therapeutics for the treatment of cancer today announced presentations for its Aurora A/angiogenic kinase inhibitor, ENMD-2076, at the AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics to be held November 15-19, 2009 in Boston, Massachusetts. Presentations are listed below.

(Logo: http://www.newscom.com/cgi-bin/prnh/20010620/ENMDLOGO ) -- Poster Session: Monday, November 16, 2009 - 12:30 p.m. - 2:30 p.m. Abstract No.: A106, "A Phase 1 study of ENMD-2076 in patients with relapsed or refractory acute myeloid leukemia (AML)," Halls C-D, 2nd floor. -- Poster Session: Monday, November 16, 2009 - 12:30 p.m. - 2:30 p.m. Abstract No.: A156, "Mechanisms of resistance to Aurora kinase B inhibitors in leukemia: development and characterization of in vitro models," Halls C-D, 2nd floor. -- Poster Session: Wednesday, November 18, 2009 - 12:30 p.m. - 2:30 p.m. Abstract No: C75, "A novel multi-targeted Aurora A and VEGFR2 kinase inhibitor, ENMD-2076, demonstrates synergistic antiproliferative and proapoptotic effects in combination with chemotherapy and trastuzumab in breast cancer cell lines," Halls C-D, 2nd floor. About ENMD-2076

ENMD-2076 is an orally-active, Aurora A/angiogenic kinase inhibitor with a unique kinase selectivity profile and multiple mechanisms of action. Preclinical studies with ENMD-2076 demonstrate significant antitumor activity, including tumor regression, in multiple solid and hematological malignancies. ENMD-2076 has been shown to inhibit a distinct profile of angiogenic tyrosine kinase targets in addition to Aurora A kinase and other oncogenic proteins. Aurora kinases are key regulators of mitosis (cell division), and are often over-expressed in human cancers. ENMD-2076 targets a defined set of kinases, including Flt-3 and FGFR3, which have been shown to play important roles in the pathology of hematological cancers.

About EntreMed

EntreMed, Inc. is a clinical-stage pharmaceutical company committed to developing primarily ENMD-2076, a selective angiogenic kinase inhibitor, for the treatment of cancer. ENMD-2076 is currently in Phase 1 studies in advanced cancers, multiple myeloma, and leukemia. The Company's other therapeutic candidates include MKC-1, an oral cell-cycle regulator with activity against the mTOR pathway currently in multiple Phase 2 clinical trials for cancer, and ENMD-1198, a novel antimitotic agent currently in Phase 1 studies in advanced cancers. The Company also has an approved IND application for Panzem® in rheumatoid arthritis. Additional information about EntreMed is available on the Company's web site at http://www.entremed.com/ and in various filings with the Securities and Exchange Commission.

Forward Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for expectations for future financial or business performance (including the timing of royalty revenues and future R&D expenditures), strategies, expectations and goals. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and no duty to update forward-looking statements is assumed. Actual results could differ materially from those currently anticipated due to a number of factors, including those set forth in Securities and Exchange Commission filings under "Risk Factors," including risks relating to the need for additional capital and the uncertainty of additional funding; variations in actual sales of Thalomid®, risks associated with the Company's product candidates; the early-stage products under development; results in preclinical models are not necessarily indicative of clinical results, uncertainties relating to preclinical and clinical trials; success in the clinical development of any products; dependence on third parties; future capital needs; and risks relating to the commercialization, if any, of the Company's proposed products (such as marketing, safety, regulatory, patent, product liability, supply, competition and other risks).

CONTACT: Ginny Dunn Associate Director, Corporate Communications & Investor Relations EntreMed, Inc. 240.864.2643

EntreMed

CONTACT: Ginny Dunn, Associate Director, Corporate Communications &
Investor Relations of EntreMed, Inc., +1-240-864-2643

Web Site: http://www.entremed.com/
http://www.newscom.com/cgi-bin/prnh/20010620/ENMDLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

James River Coal Company Reports Third Quarter 2009 Operating Results- Q-3 Earnings per Share of $0.36 Compared to ($.86) in 2008 - Q-3 Adjusted EBITDA of $33.2 Million Compared to $7.1 Million in 2008 - Cash Costs in CAPP Decline by $1.82 Per Ton Compared with Q-2 Despite Lower Production Levels - Cash Margin in CAPP of $22.73 Per Ton Compared with $5.43 in Q-3 2008 - New Contracts for CAPP at an Average of $73.16 Per Ton and Midwest at an Average of $44.57 - Temporary Amendment to Shareholder Rights Plan to Preserve Substantial NOL Tax Assets

RICHMOND, Va., Nov. 3 /PRNewswire-FirstCall/ -- James River Coal Company , a producer of steam and industrial-grade coal, today announced that it had net income of $9.8 million or $0.36 per fully diluted share for the third quarter of 2009 and net income of $54.2 million or $1.97 per fully diluted share for the nine months ended September 30, 2009. This is compared to a net loss of $21.7 million or $0.86 per fully diluted share for the third quarter of 2008 and a net loss of $62.4 million or $2.62 per fully diluted share for the nine months ended September 30, 2008.

Peter T. Socha, Chairman and Chief Executive Officer commented: "This was a relatively quiet quarter at James River Coal Company. We are continuing to post very strong financial results for our shareholders. In the operations area, we have continued to invest in both people and equipment in preparation for the next strong coal market. In the sales area, we have continued to maintain very close relationships with our domestic utility customers and international market participants. In the financial area, we have continued to strengthen our balance sheet through paying down a substantial amount of debt and starting to accumulate a cash balance. In summary, we are pleased with our results today, but we are also very busy planning and taking actions that will lead to an even better tomorrow."

FINANCIAL RESULTS

The following tables show selected operating results for the quarter ended September 30, 2009 compared to the quarter ended September 30, 2008 (in 000's except per ton amounts).

Three Months Ended Nine Months Ended Total Results September 30, September 30, ---------------- ------------------ 2009 2008 2009 2008 ----- ----- ----- ----- Total Total Total Total ----- ----- ----- ----- Company and contractor production (tons 2,390 2,731 7,743 8,379 Coal purchased from other sources (tons) 17 30 79 227 -- -- -- --- Total coal available to ship (tons) 2,407 2,761 7,822 8,606 Coal shipments (tons) 2,439 2,777 7,477 8,591 Coal sales revenue $168,320 $151,842 $532,090 $427,733 Cost of coal sold 128,361 138,873 388,789 393,470 Depreciation, depletion, & amortization 15,572 17,158 45,967 52,000 Gross profit (loss) 24,387 (4,189) 97,334 (17,737) Selling, general & administrative 10,266 9,057 30,112 25,123 Adjusted EBITDA (1) $33,169 $7,099 $123,399 $17,774 (1) Adjusted EBITDA is defined under "Reconciliation of Non-GAAP Measures" in this release. Adjusted EBITDA is used to determine compliance with financial covenants in our senior secured credit facilities. Segment Results Three Months Ended September 30, --------------- -------------------------------- 2009 2008 ---- ---- CAPP Midwest CAPP Midwest ---- ------- ---- ------- Company and contractor production (tons) 1,606 784 1,892 839 Coal purchased from other sources (tons) 17 - 30 - -- -- -- -- Total coal available to ship (tons) 1,623 784 1,922 839 Coal shipments (tons) 1,647 792 1,932 845 Coal sales revenue $141,371 26,949 $123,691 28,151 Average sales price per ton 85.84 34.03 64.02 33.31 Cost of coal sold $103,946 24,415 $113,187 25,686 Cost of coal sold per ton 63.11 30.83 58.59 30.40 Segment Results Nine Months Ended September 30, --------------- ------------------------------- 2009 2008 ---- ---- CAPP Midwest CAPP Midwest ---- ------- ---- ------- Company and contractor production (tons) 5,324 2,419 6,063 2,316 Coal purchased from other sources (tons) 79 - 227 - -- -- --- -- Total coal available to ship (tons) 5,403 2,419 6,290 2,316 Coal shipments (tons) 5,092 2,385 6,290 2,301 Coal sales revenue $453,859 78,231 $353,388 74,345 Average sales price per ton 89.13 32.80 56.18 32.31 Cost of coal sold $319,382 69,407 $322,549 70,921 Cost of coal sold per ton 62.72 29.10 51.28 30.82 Cost Bridge Q-2 2009 vs. Q-3 2009 ----------- --------------------- CAPP Midwest ---- ------- Beginning cash costs (Q-2 2009) $64.93 29.49 Labor and benefits (1.49) 0.23 Plant repairs - 0.42 Other (0.33) 0.69 ----- ---- Ending cash costs (Q-3 2009) $63.11 30.83 ====== =====

C.K. Lane, Senior Vice President and Chief Operating Officer commented: "We continue to be very pleased with our safety results. Our NFDL (Non-Fatal Days Lost) rate has been reduced 36% from the comparable period in 2008, which is well below the national average. Our Central Appalachia operations continued to perform well. We reduced our costs by $1.82 per ton compared to the second quarter while decreasing production by 81,000 tons to better manage inventories. We are continuing to make minor adjustments to our production schedules to match our contract portfolio and the needs of our customers. Beyond normal mine and train operations issues, we have not had to delay or defer any utility shipments this year. Our Illinois Basin operations had another strong quarter. Surface production was reduced from the second quarter to match shipping schedules for our customers."

LIQUIDITY AND CASH FLOW

As of September 30, 2009, the Company had available liquidity of $42.6 million calculated as follows (in millions):

Cash and Cash Equivalents $7.6 Availability under the Revolver 35.0 Drawn under the Revolver - ----- Available Liquidity $42.6 =====

The Company was in compliance with all of the covenants in its senior secured credit facilities as of September 30, 2009.

For the three months ended September 30, 2009 capital expenditures were $18.3 million.

Mr. Socha commented: "Our liquidity position and the strength of our balance sheet continues to improve dramatically. In addition to beginning to accumulate a cash balance, we have paid down our revolver by $18 million and we have reduced our trade accounts payable by approximately $5 million this year."

SALES POSITION AND MARKET COMMENTS

As of October 31, 2009, we had the following agreements to ship coal at a fixed and known price (in 000's except per ton amounts):

2010 Priced ------------------------------------------------------------ As of July 31, 2009 As of October 31, 2009 Change Avg Price Avg Price Avg Price Tons Per Ton Tons Per Ton Tons Per Ton CAPP 4,782 $100.60 5,171 $98.49 389 $72.62 ---- ----- ------- ----- ------ --- ------ Midwest (1) 2,642 $41.47 2,642 $41.47 - $- ---------- ----- ------ ----- ------ -- -- 2011 Priced ------------------------------------------------------------ As of July 31, 2009 As of October 31, 2009 Change Avg Price Avg Price Avg Price Tons Per Ton Tons Per Ton Tons Per Ton CAPP 2,350 $122.51 2,389 $121.80 39 $78.57 ---- ----- ------- ----- ------- -- ------ Midwest (1) 375 $45.47 1,375 $44.66 1,000 $44.36 ---------- --- ------ ----- ------ ----- ------ 2012 Priced ------------------------------------------------------------ As of July 31, 2009 As of October 31, 2009 Change Avg Price Avg Price Avg Price Tons Per Ton Tons Per Ton Tons Per Ton CAPP 350 $108.31 350 $108.31 - $- ---- --- ------- --- ------- -- -- Midwest (1) - $- 500 $45.00 500 45.00 ----------- -- -- --- ------ --- ----- (1) The prices for the Midwest in 2010 are minimum base price amounts adjusted for projected fuel escalators.

Mr. Socha added: "We were very pleased to reach agreement for future deliveries from both our CAPP and our Midwest operations this quarter. In particular, we are beginning to see increased activity for industrial coal and flex coal that is capable of moving from the utility market to the metallurgical market. As widely reported, the market for domestic utility steam coal continues to be very soft. This is a result of high inventories and lower demand from electric utilities. While we can see a number of items that should improve the overall domestic coal market in the future, it is still very early. We continue to look for the coal market in Europe to improve in the first half of 2010 and the market in the United States to improve in late 2010 or early 2011. Our customer relationships and our contract portfolio allow us to be patient with our contracting activities."

MODIFICATION TO SHAREHOLDER RIGHTS PLAN

The Company also announced today that its Board of Directors has amended its Rights Agreement dated May 25, 2004, as amended, in order to preserve the Company's ability to utilize substantial net operating loss (NOL) carryforwards to offset future taxable income under the Internal Revenue Code. The amendment will be effective on November 3, 2009.

As of December 31, 2008, the Company had regular federal NOL carryforwards of approximately $240 million and federal alternative minimum tax (AMT) NOL carryforwards of approximately $150 million.

The Company's ability to use these tax attributes would be substantially limited if there were an "ownership change" as defined under Section 382 of the Internal Revenue Code and IRS rules. In general, an "ownership change" would be deemed to occur if there is a cumulative change of more than 50% over a rolling three year period by shareholders owning more than 5% of the total outstanding shares.

Previously under the Rights Agreement, a triggering event occurred with the acquisition of beneficial ownership of 20% of the stock of the Company. Pursuant to the amendment approved by the Board, this threshold has been lowered to 4.9 %.

The amendment exempts shareholders whose ownership exceeds 4.9 % at the effective date of the amendment so long as they do not acquire more than an additional 0.5% of the stock of the Company without the advance approval of the Company's board.

The lower threshold of 4.9 % will expire on December 5, 2010, at which time the threshold will revert to the previous level.

The amendment to the Rights Agreement is similar to tax benefit preservation plans recently adopted by numerous other public companies with significant tax attributes. The amendment is designed to protect shareholder value by safeguarding valuable tax attributes of the Company.

The amendment also expands the definition of beneficial ownership to capture all derivatives and synthetic equity positions within the definition of beneficial ownership for purposes of the Rights Agreement.

Additional information regarding the amendment will be contained in a Form 8-K and in an amendment to our Registration Statement on Form 8-A to be filed with the Securities and Exchange Commission

CONFERENCE CALL, WEBCAST AND REPLAY: The Company will hold a conference call with management to discuss the second quarter earnings on November 3, 2009 at 11:00 a.m. Eastern Time. The conference call can be accessed by dialing 877-397-0298, or through the James River Coal Company website at http://www.jamesrivercoal.com/. International callers, please dial 719-325-4834. A replay of the conference call will be available on the Company's website and also by telephone, at 888-203-1112 for domestic callers. International callers, please dial 719-457-0820: pass code 7718234.

James River Coal Company mines, processes and sells bituminous steam and industrial-grade coal primarily to electric utility companies and industrial customers. The Company's mining operations are managed through six operating subsidiaries located throughout eastern Kentucky and in southern Indiana.

FORWARD-LOOKING STATEMENTS: Certain statements in this press release, and other written or oral statements made by or on behalf of us 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. These forward-looking statements, are subject to a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, the following: changes in the demand for coal by electric utility customers; the loss of one or more of our largest customers; inability to secure new coal supply agreements or to extend existing coal supply agreements at market prices; failure to diversity our operations; failure to exploit additional coal reserves; the risk that reserve estimates are inaccurate; increased capital expenditures; encountering difficult mining conditions; increased costs of complying with mine health and safety regulations; our dependency on one railroad for transportation of a large percentage of our products; bottlenecks or other difficulties in transporting coal to our customers; delays in the development of new mining projects; increased costs of raw materials; lack of availability of financing sources; our compliance with debt covenants; the effects of litigation, regulation and competition; and the other risks detailed in our reports filed with the Securities and Exchange Commission (SEC). Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

JAMES RIVER COAL COMPANY AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, except share data) September 30, 2009 December 31, 2008 ------------------ ----------------- Assets (unaudited) Current assets: Cash and cash equivalents $7,635 3,324 Receivables: Trade 46,372 33,086 Other 211 475 --- --- Total receivables 46,583 33,561 ------ ------ Inventories: Coal 28,379 6,847 Materials and supplies 11,279 9,581 ------ ----- Total inventories 39,658 16,428 ------ ------ Prepaid royalties 5,023 2,803 Other current assets 5,422 5,094 ----- ----- Total current assets 104,321 61,210 ------- ------ Property, plant, and equipment, at cost: Land 7,239 6,693 Mineral rights 230,932 229,841 Buildings, machinery and equipment 353,560 320,982 Mine development costs 40,178 39,596 ------ ------ Total property, plant, and equipment 631,909 597,112 Less accumulated depreciation, depletion, and amortization 285,193 252,264 ------- ------- Property, plant and equipment, net 346,716 344,848 Goodwill 26,492 26,492 Other assets 30,255 30,996 ------ ------ Total assets $507,784 463,546 ======== ======= JAMES RIVER COAL COMPANY AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, except share data) September 30, 2009 December 31, 2008 ------------------ ----------------- Liabilities and Shareholders' Equity (unaudited) Current liabilities: Current maturities of long-term debt $- 18,000 Accounts payable 51,947 57,068 Accrued salaries, wages, and employee benefits 10,015 6,642 Workers' compensation benefits 9,300 9,300 Black lung benefits 1,539 1,539 Accrued taxes 5,729 4,457 Other current liabilities 16,497 19,165 ------ ------ Total current liabilities 95,027 116,171 ------ ------- Long-term debt, less current maturities 150,000 150,000 Other liabilities: Noncurrent portion of workers' compensation benefits 48,707 46,477 Noncurrent portion of black lung benefits 30,330 29,029 Pension obligations 20,097 19,693 Asset retirement obligations 39,370 36,409 Other 586 529 --- --- Total other liabilities 139,090 132,137 ------- ------- Total liabilities 384,117 398,308 ------- ------- Commitments and contingencies Shareholders' equity: Preferred stock, $1.00 par value. Authorized 10,000,000 shares - - Common stock, $.01 par value. Authorized 100,000,000 shares; issued and outstanding 27,553,964 and 27,393,493 shares as of September 30, 2009 and December 31, 2008, respectively 276 274 Paid-in-capital 275,431 272,366 Accumulated deficit (133,555) (187,712) Accumulated other comprehensive loss (18,485) (19,690) ------- ------- Total shareholders' equity 123,667 65,238 ------- ------ Total liabilities and shareholders' equity $507,784 463,546 ======== ======= JAMES RIVER COAL COMPANY AND SUBSIDIARIES Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Three Months Ended Ended September 30, 2009 September 30, 2008 ------------------ ------------------ Revenues $168,320 151,842 Cost of sales: Cost of coal sold 128,361 138,873 Depreciation, depletion and amortization 15,572 17,158 Total cost of sales 143,933 156,031 ------- ------- Gross profit (loss) 24,387 (4,189) Selling, general and administrative expenses 10,266 9,057 Total operating income (loss) 14,121 (13,246) ------ ------- Interest expense 3,923 4,625 Interest income (5) (55) Charges associated with repayment and amendment of debt - 4,223 Miscellaneous income, net (43) (327) --- ---- Total other expense, net 3,875 8,466 ----- ----- Income (loss) before income taxes 10,246 (21,712) Income tax expense 438 - --- - Net income (loss) $9,808 (21,712) ====== ======= Earnings (loss) per common share Basic earnings (loss) per common share $0.36 (0.86) ===== ===== Diluted earnings (loss) per common share $0.36 (0.86) ===== ===== JAMES RIVER COAL COMPANY AND SUBSIDIARIES Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Nine Months Nine Months Ended Ended September 30, 2009 September 30, 2008 ------------------ ------------------ Revenues $532,090 427,733 Cost of sales: Cost of coal sold 388,789 393,470 Depreciation, depletion and amortization 45,967 52,000 Total cost of sales 434,756 445,470 ------- ------- Gross profit (loss) 97,334 (17,737) Selling, general and administrative expenses 30,112 25,123 Total operating income (loss) 67,222 (42,860) ------ ------- Interest expense 11,790 13,700 Interest income (55) (317) Charges associated with repayment and amendment of debt - 7,236 Miscellaneous income, net (187) (1,073) ---- ------ Total other expense, net 11,548 19,546 ------ ------ Income (loss) before income taxes 55,674 (62,406) Income tax expense 1,517 - ----- - Net income (loss) $54,157 (62,406) ======= ======= Earnings (loss) per common share Basic earnings (loss) per common share $1.97 (2.62) ===== ===== Diluted earnings (loss) per common share $1.97 (2.62) ===== ===== JAMES RIVER COAL COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Nine Months Nine Months Ended Ended September 30, 2009 September 30, 2008 ------------------ ------------------ Cash flows from operating activities: Net income (loss) $54,157 (62,406) Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation, depletion, and amortization 45,967 52,000 Accretion of asset retirement obligations 2,385 2,018 Amortization of deferred financing costs 880 1,118 Stock-based compensation 4,533 3,614 Gain on sale or disposal of property, plant, and equipment (24) (163) Deferred tax expense 150 - Write-off of deferred financing costs - 2,383 Changes in operating assets and liabilities: Receivables (13,022) 5,661 Inventories (21,096) (3,740) Prepaid royalties and other current assets (2,548) (2,033) Other assets (289) 662 Accounts payable (5,121) 5,958 Accrued salaries, wages, and employee benefits 3,373 2,107 Accrued taxes (269) (1,265) Other current liabilities (3,025) 6,327 Workers' compensation benefits 2,230 1,828 Black lung benefits 1,301 1,027 Pension obligations 1,609 (1,218) Asset retirement obligation (422) (978) Other liabilities 57 161 -- --- Net cash provided by operating activities 70,826 13,061 ------ ------ Cash flows from investing activities: Additions to property, plant, and equipment (48,651) (59,498) Proceeds from sale of property, plant, and equipment 61 1,108 -- ----- Net cash used in investing activities (48,590) (58,390) ------- ------- Cash flows from financing activities: Borrowings under Revolver 12,500 21,500 Repayments under Revolver (30,500) (8,500) Repayment of long-term debt - (22,025) Net proceeds from issuance of common stock - 93,955 Debt issuance costs - (486) Proceeds from exercise of stock option 75 542 -- --- Net cash provided by (used in) financing activities (17,925) 84,986 ------- ------ Increase (decrease) in cash 4,311 39,657 Cash at beginning of period 3,324 5,413 ----- ----- Cash at end of period $7,635 45,070 ====== ====== JAMES RIVER COAL COMPANY AND SUBSIDIARIES Reconciliation of Non-GAAP Measures (in thousands) (unaudited)

EBITDA is a measure used by management to measure operating performance. We define EBITDA as net income or loss plus interest expense (net), income tax expense (benefit) and depreciation, depletion and amortization (EBITDA), to better measure our operating performance. We regularly use EBITDA to evaluate our performance as compared to other companies in our industry that have different financing and capital structures and/or tax rates. In addition, we use EBITDA in evaluating acquisition targets.

Adjusted EBITDA is the amount used in several of the covenants in our senior secured credit facilities. Adjusted EBITDA is defined as EBITDA further adjusted for certain cash and non-cash charges. Adjusted EBITDA is used to determine compliance with financial covenants and our ability to engage in certain activities such as incurring additional debt and making certain payments.

Cash margin per ton is an additional measure used by management to better measure our operating performance. Cash margin per ton is a measure to evaluate a company's profitability from produced tons sold. Cash margin per ton is defined as gross profit or loss plus depreciation, depletion and amortization divided by tons sold for the period.

EBITDA, Adjusted EBITDA and cash margin are not recognized terms under GAAP and are not an alternative to net income, operating income or any other performance measures derived in accordance with GAAP or an alternative to cash flow from operating activities as a measure of operating liquidity. Because not all companies use identical calculations, this presentation of EBITDA, Adjusted EBITDA and cash margin may not be comparable to other similarly titled measures of other companies. Additionally, EBITDA and Adjusted EBITDA are not intended to be a measure of free cash flow for management's discretionary use, as they do not reflect certain cash requirements such as tax payments, interest payments and other contractual obligations.

Three Months Ended Nine Months Ended --------------------------- --------------------------- September 30, September 30, September 30, September 30, 2009 2008 2009 2008 ------------- ------------- ------------- ------------- Net income (loss) $9,808 (21,712) 54,157 (62,406) Income tax expense 438 - 1,517 - Interest expense 3,923 4,625 11,790 13,700 Interest income (5) (55) (55) (317) Depreciation, depletion, and amortization 15,572 17,158 45,967 52,000 ------ ------ ------ ------ EBITDA (before adjustments) $29,736 16 113,376 2,977 ------- -- ------- ----- Other adjustments specified in our current debt agreement: Charges associated with repayment of debt - 4,223 - 7,236 Other adjustments 3,433 2,860 10,023 7,561 ----- ----- ------ ----- Adjusted EBITDA $33,169 7,099 123,399 17,774 ======= ===== ======= ====== CONTACT: James River Coal Company Elizabeth M. Cook Director of Investor Relations (804) 780-3000

James River Coal Company

CONTACT: Elizabeth M. Cook, Director of Investor Relations of James
River Coal Company, +1-804-780-3000

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

West Announces Third Quarter 2009 Results- Reports $0.50 per Diluted Share, $0.45 per Diluted Share Excluding Unusual Items - - Revises 2009 Adjusted Diluted EPS(1) Estimate to between $2.08 and $2.13 - - Announces Fourth Quarter Restructuring Plans for Business Units - - Conference Call Scheduled for 9 a.m. Today -

LIONVILLE, Pa., Nov. 3 /PRNewswire-FirstCall/ -- West Pharmaceutical Services, Inc. today announced its results for the third quarter of 2009. Summary comparative results were as follows:

($millions, except per-share data) Three Months Ended September 30 2009 2008 Net Sales $258.9 $256.2 Gross Profit 71.7 66.0 Reported Operating Profit 25.9 17.9 Adjusted Operating Profit (1) 22.0 19.7 Reported Diluted EPS $0.50 $0.40 Adjusted Diluted EPS(1) $0.45 $0.37 (1) See "Restructuring and Other Items" section of the release and "Supplemental Information and Notes to Non-GAAP Financial Measures" in the tables following the text of this release.

Consolidated sales were 1.0% higher in the quarter when compared to the prior year period including $8.2 million, or 3.3 percentage points, of adverse effects of foreign currency translation. Excluding currency translation effects, consolidated sales were 4.3% higher than in the prior year quarter, with component sales for H1N1 flu vaccinations contributing substantially. The resulting growth in the Pharmaceutical Systems segment more than compensated for lower sales in the Tech Group segment.

Consolidated gross profit margin was 27.7% in the quarter, compared to 25.7% in the third quarter of 2008. The two margin point increase includes the combined effect of overall higher selling prices and lower raw material costs, net of higher depreciation charges. As a result of improved margins, gross profit increased $5.7 million, to $71.7 million in the current quarter, net of $1.8 million of adverse foreign currency translation.

Adjusted Operating Profit grew by 11.7% compared to the prior year period. The effect of the consolidated gross margin improvement was muted by $2.8 million in higher U.S. pension expense and $0.7 million of unfavorable foreign currency translation, net of $0.6 million in lower stock-based compensation expense.

The Company announced plans to restructure certain business operations, which will result in the elimination of approximately 100 jobs, and to re-evaluate certain business initiatives and assets. These will result in total charges in the range of $8.0 million to $10.0 million. Approximately $7.0 million of charges are expected to be included in the Company's reported results for the fourth quarter of 2009. The restructuring is expected to result in annual savings of approximately $6.0 million in 2010 and approximately $8.0 million annually thereafter.

Executive Commentary

"The growth that we are seeing in sales of packaging components and systems, excluding currency translation, is the best indicator we have that inventories in the supply chain are at or near the low point for this cycle," said Donald E. Morel Jr., Ph.D., the Company's Chairman and Chief Executive Officer. "Demand for flu vaccine added to that growth and should continue to contribute through the next two quarters, during which we expect overall demand to firm. In the Tech Group, sales under existing manufacturing contracts remain sluggish. The restructuring plan we announced today will improve operating efficiencies in both business segments, enhancing our strategic focus on maintaining and building our proprietary injectable drug delivery product portfolio. The Tech Group will continue to provide critical engineering and manufacturing support to those development efforts, which we believe will accelerate West's growth in the longer term."

"In revenue terms, this third quarter was relatively strong compared to the first half of the year. We expect the unusual seasonality of 2009 to continue and that fourth-quarter sales will be the strongest of the year, despite some continued weakness in the Tech Group. Our revised guidance is for 2009 Adjusted Diluted EPS of between $2.08 and $2.13. We expect the overall improvements we've seen during the last four months to continue through the fourth quarter and into 2010, and are forecasting revenue growth of between 3% and 5% for next year, excluding the effects of currency translation."

Pharmaceutical Systems Segment

Pharmaceutical Systems segment sales for the third quarter of 2009 were $198.1 million, $7.6 million higher than those reported in the third quarter of 2008. Unfavorable foreign currency translation reduced comparable quarterly sales by $7.2 million, or 3.8%. Excluding the effects of currency translation, sales grew by $14.8 million, or 7.8%.

H1N1 flu vaccination-related sales of $9.7 million, primarily for serum stoppers, were augmented by growth in components used in the processing and packaging of freeze-dried pharmaceutical products, and components for prefillable syringes and cartridges. In each of those categories, Westar® processing and West's component coating technologies contributed to the sales value of the incremental units. Geographically, and excluding the effects of currency translation, revenue growth was strongest in North America and Asia.

Gross profit in the quarter was $63.4 million, compared to $56.2 million in the 2008 quarter, and gross margin was 32.0%, 2.5 percentage points higher than in the prior-year period. Currency translation reduced gross profit by $1.6 million. The increase in gross profit compared to the prior-year period was primarily due to the $9.8 million combined effects of higher overall selling prices and a more profitable sales mix, as well as to $1.9 million in lower raw material costs. This is the first quarterly improvement in material costs in 2009 because the benefit of lower market prices for petroleum products through the first half of the year was delayed until the current quarter under the terms of West's purchase agreements for certain materials. Those improvements were partially offset by $2.5 million of higher depreciation costs and $1.2 million of increased labor costs.

Pharmaceutical Systems SG&A costs were substantially unchanged in the third quarter compared to the 2008 period, and as a result were lower as a percentage of the higher sales. Currency translation reduced reported costs of foreign operations by $1.0 million, with those lower reported costs offset by increases in compensation and depreciation expenses. Research spending was $0.4 million higher than in the prior-year quarter. Adjusted operating profit increased 29.4% to $29.9 million, an increase of $6.8 million, net of $0.5 million of adverse currency translation effects.

Tech Group Segment

Tech Group segment sales were $62.9 million in the third quarter, down from $68.3 million in the prior-year period. Foreign currency translation reduced reported revenue by $1.0 million and contractually mandated price reductions, associated with lower plastic resin costs, accounted for $1.6 million in lower revenue. Excluding those items, revenues were $2.8 million lower, on mixed, but generally lower, demand from customers for their custom-manufactured products. Launch-quantity orders from customers introducing new products contributed substantial revenue in the quarter but were more than offset by the lower demand for more mature products and by product withdrawals that have occurred since the 2008 period. Tooling and development revenues were $1.5 million lower than in the prior year.

Acquisitions and dispositions affect comparisons to the prior-year quarter. Third quarter results include for the first time the operations acquired from Plastef Investissements SA in July 2009, which contributed $4.0 million in sales of proprietary safety needle products. 2009 results do not include revenues from the Tech Group's former Mexico facility, which was sold in the fourth quarter of 2008. That facility generated $2.7 million of primarily industrial contract manufacturing revenue in the third quarter of 2008 that was not transferred to other West locations following the sale of the facility.

Gross profit was $8.3 million in the quarter, $1.5 million lower than the $9.8 million reported in third quarter of 2008, and gross profit margin was 13.2% compared to 14.4% in the prior year period. Acquisitions and dispositions had no material effect on gross profit. The decline was primarily the result of the negative marginal effect of reduced sales revenue and production throughput, which outpaced the net positive effects of lower raw material and energy costs. SG&A costs increased $0.7 million on higher information technology and compensation costs. Operating profit for the third quarter of 2009 was $2.6 million, compared to $5.1 million in the prior year quarter, reflecting the inefficiencies associated with the lower revenue and utilization.

Corporate and Other

U.S. pension expense was $4.3 million in the current quarter, a $2.8 million increase over the third quarter of 2008, primarily as a result of substantial investment losses incurred by the U.S. pension plan assets during 2008. Similar effects are being reported in each 2009 quarter.

Stock-based compensation expense decreased by $0.6 million compared to the prior year quarter, due primarily to a change in the estimated cost of the Company's long-term incentive plan. Other corporate general and administrative costs were substantially unchanged compared to the prior year quarter as increases in depreciation and short-term incentive plan costs were offset by reduced utilization of external service providers.

Net interest expense was $0.4 million lower compared to the prior-year period. The Company's reported tax expense reflects an expected 2009 annual effective tax rate of 23.8% on operating earnings, as well as the tax effects of "Restructuring and Other Items." The comparable expected annual tax rate in the 2008 period was 26.1%. The primary reason for the rate reduction is the expected distribution of international earnings for 2009.

Restructuring and Other Items

West today announced operational restructuring plans in both the Tech Group and Pharmaceutical Systems segments, a substantial part of which will be reflected in the fourth-quarter 2009 reported results.

The Tech Group plan will consolidate manufacturing operations and support functions to better align capacity to contract manufacturing activity. Approximately 65 positions will be eliminated by the plan, which is expected to cost between $2.0 million and $3.0 million. Approximately $1.0 million is expected to be included in the results of operations in the fourth quarter of 2009 and the balance will be expended in 2010. The Company expects that it will experience revenue losses of approximately $1.0 million per year of lower margin business, but expects to generate overall annual operating cost savings of approximately $2.0 million in 2010 and $4.0 million once the restructuring is complete.

The Pharmaceutical Systems plan includes: exiting certain specialized laboratory service offerings; retiring information technology applications and associated support; and abandoning plans to expand its U.S. metals facility. Approximately 35 positions are being eliminated. The costs of the plan are expected to be between $6.0 million and $7.0 million, of which approximately $6.0 million is expected to be included in the results of operations in the fourth quarter of 2009. The balance will be expended in 2010. The plan is expected to generate cost savings in the range of $4.0 million annually.

During the third quarter of 2009, the Company recognized $3.9 million in pre-tax ($1.7 million after-tax) benefits as a result of relief from penalties, administrative charges and interest associated with certain tax deficiencies in Brazil that were recorded in 2007. The relief is pursuant to an amnesty program initiated by the Brazilian government. In addition, the Company recognized a $0.4 million reduction to tax expense in the quarter from the resolution of prior-year tax contingencies. During the third quarter of 2008, the Company reduced certain prior-year tax contingency reserves, recognizing income of $2.2 million in that quarter.

2008 third quarter results included $1.8 million of pre-tax charges for costs that were reimbursed under a contract settlement agreement with Nektar Therapeutics for converting the former Exubera® device production facility. The settlement had no impact on results in the current quarter.

Financial Guidance

The Company revised its 2009 guidance and previewed revenue expectations for 2010. The changes are intended to reflect management's current expectations and include revisions to revenue, gross profit and Adjusted Diluted EPS(1) estimates. Revised full-year 2009 financial guidance, at assumed exchange rates(3), is summarized as follows:

2009 Guidance ------------- Consolidated Sales(3) $1.03 to $1.05 billion Pharmaceutical Systems Revenue(3) $790 to $800 million Pharmaceutical Systems Gross Profit as a Percent of Sales 33.4% Tech Group Revenue (includes $12 million of inter-company sales)(3) Tech Group Gross Profit as a Percent of Sales $250 to $255 million 14.6% Consolidated Gross Profit Margin 29.2% Full Year Adjusted Diluted EPS(1)(2)(3) $2.08 to $2.13 (2) (3) See corresponding notes under "Supplemental Information and Notes to Non-GAAP Financial Measures" in the tables following the text of this release. The principal currency assumption in these estimates is for the translation of the Euro at $1.48 to euro 1.00 for the remainder of 2009. The Company's earlier guidance reflected the Euro at $1.40 for the remainder of 2009.

During the fourth quarter of 2009, the Company expects to recognize charges described under "Restructuring and Other Items" of approximately $7.0 million pre-tax, or $0.12 per diluted share. These charges are excluded from the guidance for 2009 Adjusted Diluted EPS.

The revised guidance reflects, among other factors, the following expectations: no unusual slowness of customer orders for delivery in the current quarter; demand associated with government-sponsored vaccinations against the H1N1(A) virus strain will sustain through the quarter; anticipated pricing changes under existing contracts will be realized and lower raw material costs will continue. The Company continues to expect that 2009 capital spending will be between $110 million and $120 million.

The Company expects consolidated 2010 sales revenue to grow 3% to 5% from the expected 2009 revenue at constant exchange rates. The expectation is based upon a recovery in volume demand associated with expected improvements in overall economic conditions globally, but does not include significant overall changes in pricing. The Company will provide further 2010 guidance when it announces results for the fourth quarter and full year 2009, in February 2010.

Third-Quarter Conference Call

The Company will host a conference call to discuss the results and business expectations at 9:00 a.m. Eastern Standard Time today. To participate on the call, please dial 210-839-8398 or 888-790-3758. The passcode is WST.

A live broadcast of the conference call will be available through the Company's web site, http://www.westpharma.com/, in the "Investor" section. Please allow extra time prior to the call to visit the site and download the streaming media software required to listen to the Internet broadcast. An online archive of the broadcast will be available at the site two hours after the live call and will be available through Tuesday, November 17, 2009, by dialing 866-346-1326 or 203-369-0000 and entering conference ID# 4311.

Exubera® is a registered trademark of Pfizer, Inc. WEST PHARMACEUTICAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in millions, except per share data) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net sales $258.9 100% $256.2 100% $762.3 100% $806.3 100% Cost of goods and services sold 187.2 72 190.2 74 542.6 71 573.3 71 ----- -- ----- -- ----- -- ----- -- Gross profit 71.7 28 66.0 26 219.7 29 233.0 29 Research and development 5.1 2 4.6 2 14.1 2 14.8 2 Selling, general and administrative expenses 44.3 17 41.5 16 132.3 17 122.5 15 Restructuring and other items (3.9) -1 1.8 1 (2.8) - (3.6) - Other expense, net 0.3 - 0.2 - 0.3 - 0.8 - --- -- --- -- --- -- --- -- Operating profit 25.9 10 17.9 7 75.8 10 98.5 12 Interest expense, net 3.5 1 3.9 2 10.5 1 10.5 1 --- -- --- -- ---- -- ---- -- Income before income taxes 22.4 9 14.0 5 65.3 9 88.0 11 Income tax expense 6.0 2 0.8 - 14.6 2 20.0 3 Equity in net income of affiliated companies 0.8 - 0.3 - 1.6 - 0.8 - --- -- --- -- --- -- --- -- Net Income 17.2 7% 13.5 5% 52.3 7% 68.8 8% Less: net income attributable to noncontrolling interests - 0.2 - 0.5 -- --- -- --- Net income attributable to common shareholders $17.2 $13.3 $52.3 $68.3 ===== ===== ===== ===== Net income per share attributable to common shareholders: Basic $0.52 $0.41 $1.60 $2.11 Assuming Dilution $0.50 $0.40 $1.53 $1.98 ----- ----- ----- ----- Average common shares outstanding 32.9 32.5 32.8 32.4 Average shares assuming dilution 36.4 36.2 36.3 36.1 WEST PHARMACEUTICAL SERVICES REPORTING SEGMENT INFORMATION (UNAUDITED) (in millions) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- Net Sales: 2009 2008 2009 2008 ---- ---- ---- ---- Pharmaceutical Systems $198.1 $190.5 $579.2 $610.6 Tech Group 62.9 68.3 192.0 204.3 Eliminations (2.1) (2.6) (8.9) (8.6) ---- ---- ---- ---- Consolidated Total $258.9 $256.2 $762.3 $806.3 ====== ====== ====== ====== Operating Profit (Loss): Pharmaceutical Systems $29.9 $23.1 $91.5 $107.0 Tech Group 2.6 5.1 13.4 13.5 General corporate costs (3.7) (3.9) (13.1) (14.0) Stock-based compensation expense (2.5) (3.1) (6.3) (7.1) U.S. pension expense (4.3) (1.5) (12.5) (4.5) Restructuring and other items 3.9 (1.8) 2.8 3.6 --- ---- --- --- Consolidated Total $25.9 $17.9 $75.8 $98.5 ===== ===== ===== ===== WEST PHARMACEUTICAL SERVICES NON-GAAP MEASURES (UNAUDITED) THREE MONTHS ENDED SEPTEMBER 30, 2009 (in millions, except per share data) As Reported Non-GAAP September 30, Brazil Tax September 30, 2009 Tax Benefits Amnesty 2009 ---- ------------ ------- ---- Operating profit $25.9 $- $(3.9) $22.0 Interest expense, net 3.5 - - 3.5 --- -- -- --- Income before income taxes 22.4 - (3.9) 18.5 Income tax expense 6.0 0.4 (2.2) 4.2 Equity in net income of affiliated companies 0.8 - - 0.8 --- -- -- --- Net income 17.2 (0.4) (1.7) 15.1 Less: net income attributable to noncontrolling interests - - - - -- -- -- -- Net income attributable to common shareholders $17.2 $(0.4) $(1.7) $15.1 ----- ----- ----- ----- Net income per diluted share attributable to common shareholders $0.50 $(0.01) $(0.04) $0.45 ----- ------ ------ ----- WEST PHARMACEUTICAL SERVICES NON-GAAP MEASURES (UNAUDITED) THREE MONTHS ENDED SEPTEMBER 30, 2008 (in millions, except per share data) As Reported Contract Non-GAAP September 30, settlement September 30, 2008 costs(income) Tax Benefits 2008 ---- ------------ ------------ ---- Operating profit $17.9 $1.8 $- $19.7 Interest expense, net 3.9 - - 3.9 --- -- -- --- Income before income taxes 14.0 1.8 - 15.8 Income tax expense 0.8 0.7 2.2 3.7 Equity in net income of affiliated companies 0.3 - - 0.3 --- -- -- --- Net income 13.5 1.1 (2.2) 12.4 Less: net income attributable to noncontrolling interests 0.2 - - 0.2 --- -- -- --- Net income attributable to common shareholders $13.3 $1.1 $(2.2) $12.2 ----- ---- ----- ----- Net income per diluted share attributable to common shareholders $0.40 $0.03 $(0.06) $0.37 ----- ----- ------ ----- Please refer to the "Notes to Non-GAAP financial measures" for more information. Non-GAAP measures are intended to explain or aid in the use of, not as a substitute for, the related GAAP financial measure. WEST PHARMACEUTICAL SERVICES NON-GAAP MEASURES (UNAUDITED) NINE MONTHS ENDED SEPTEMBER 30, 2009 (in millions, except per share data) As Reported Non-GAAP September 30, Brazil Tax Tax September 30, 2009 Restructuring Amnesty benefits 2009 ---- ------------- ------- -------- ---- Operating profit $75.8 $1.1 $(3.9) $- $73.0 Interest expense, net 10.5 - - - 10.5 ---- -- -- -- ---- Income before income taxes 65.3 1.1 (3.9) - 62.5 Income tax expense 14.6 0.4 (2.2) 2.1 14.9 Equity in net income of affiliated companies 1.6 - - - 1.6 --- -- -- -- --- Net income 52.3 0.7 (1.7) (2.1) 49.2 Less: net income attributable to noncontrolling interests - - - - - -- -- -- -- -- Net income attributable to common shareholders $52.3 $0.7 $(1.7) $(2.1) $49.2 ----- ---- ----- ----- ----- Net income per diluted share attributable to common shareholders $1.53 $0.02 $(0.04) $(0.06) $1.45 ----- ----- ------ ------ ----- WEST PHARMACEUTICAL SERVICES NON-GAAP MEASURES (UNAUDITED) NINE MONTHS ENDED SEPTEMBER 30, 2008 (in millions, except per share data) Contract As Reported settlement Non-GAAP September 30, cost Tax September 30, 2008 Restructuring (income) benefits 2008 ---- ------------- -------- -------- ---- Operating profit $98.5 $2.5 $(6.1) $- $94.9 Interest expense, net 10.5 - - - 10.5 ---- -- -- -- ---- Income before income taxes 88.0 2.5 (6.1) - 84.4 Income tax expense 20.0 0.9 (2.1) 3.3 22.1 Equity in net income of affiliated companies 0.8 - - - 0.8 --- -- -- -- --- Net income 68.8 1.6 (4.0) (3.3) 63.1 Less: net income attributable to noncontrolling interests 0.5 - - - 0.5 --- -- -- -- --- Net income attributable to common shareholders $68.3 $1.6 $(4.0) $(3.3) $62.6 ----- ---- ----- ----- ----- Net income per diluted share attributable to common shareholders $1.98 $0.05 $(0.11) $(0.09) $1.83 ----- ----- ------ ------ ----- Please refer to the "Notes to Non-GAAP financial measures" for more information. Non-GAAP measures are intended to explain or aid in the use of, not as a substitute for, the related GAAP financial measure. West Pharmaceutical Services, Inc. SUPPLEMENTAL INFORMATION AND NOTES TO NON-GAAP FINANCIAL MEASURES

For additional details, please see the attached financial schedules and Safe Harbor Statement.

(1) "Adjusted operating profit" and its components and "adjusted diluted earnings per share (EPS)" are defined as reported operating profit and reported diluted EPS excluding the impact of restructuring costs, discrete tax items and certain other significant items, as described below. Management uses adjusted operating profit and adjusted diluted EPS to measure the business and compare operating results to prior periods. Adjusted operating profit and adjusted EPS also are used, together with other measures, to set performance goals for determining payouts under annual and long-term incentive programs. We believe that investors' understanding of our performance is enhanced by disclosing these measures.

The items excluded from adjusted operating profit and adjusted diluted EPS are:

Brazil Tax Amnesty Benefit: During September 2009, we enrolled in a Brazil amnesty program which entitled us to a reduction in certain tax-related penalties, interest and other costs in exchange for our irrevocable declaration of all specified obligations. As these tax-related obligations were previously accrued, the impact was a pre-tax gain of $3.9 million, or $1.7 million after-tax.

Restructuring Charges: During both 2009 and 2008, we incurred restructuring and other related charges as part of our December 2007 plan to align the plant capacity and workforce of our Tech Group with its revised business outlook and as part of a longer-term strategy of focusing the business on proprietary products. The majority of these charges related to severance and other employee benefits and a smaller portion resulted from asset write-offs and other related costs. The restructuring program was substantially completed during the second quarter of 2009.

2008 Contract Settlement Costs (Income): Under a February 2008 agreement reached with our former customer, Nektar Therapeutics, we received full reimbursement for, among other things, severance-related employee costs, inventory on hand, leases and other facility costs associated with the shutdown of operations at the former Exubera® device manufacturing facility. During the first and second quarters of 2008, we received contract settlement payments from Nektar which more than offset related raw material, severance and facility costs, resulting in a net gain for the year-to-date period ended September 30, 2009.

Tax Benefits: During the first nine months of both 2009 and 2008, we recognized discrete tax provision benefits as follows:

-- In 2009, we recognized a $2.1 million net income tax provision benefit principally resulting from the completion of a tax audit and the expiration of open tax periods in various tax jurisdictions. -- In 2008, an agreement reached with the Republic of Singapore reduced our income tax rate in that country for a period of 10 years, on a retroactive basis back to July 2007, resulting in a $1.0 million tax benefit. -- Also in 2008, we recognized a $2.3 million net tax provision benefit resulting from the expiration of open tax audit years in certain foreign tax jurisdictions.

(2) Reconciliation of 2009 Adjusted Guidance to 2009 Reported Guidance is as follows:

Full Year 2009 Guidance (3) Diluted Earnings Per Share -------------------------- Adjusted guidance $2.08 to $2.13 Restructuring, net of tax (0.14) Brazil tax amnesty, net of tax 0.04 Discrete tax benefits 0.06 Reported guidance $2.04 to $2.09

(3) Reflects relative currency valuations, most significantly the Euro, which is reflected in our estimates for the remainder of the year at $1.48 per Euro.

WEST PHARMACEUTICAL SERVICES CASH FLOW ITEMS (UNAUDITED) (in millions) Nine Months Ended September 30, ------------------------------- 2009 2008 ---- ---- Depreciation and amortization $49.8 $45.4 Operating cash flow $85.1 $91.0 Capital expenditures $(76.4) $(88.2) ------ ------ WEST PHARMACEUTICAL SERVICES FINANCIAL CONDITION (UNAUDITED) (in millions) As of As of September 30, 2009 December 31, 2008 ------------------ ----------------- Cash and Cash Equivalents $79.5 $87.2 Debt $397.0 $386.0 Equity $565.7 $487.1 Net Debt to Total Invested Capital* 35.9% 38.0% Working Capital $236.3 $207.1 ------ ------ * Net Debt and Total Invested Capital are Non-GAAP measures. Net Debt is determined by reducing total debt by the amount of cash and cash equivalents. Total Invested Capital is the sum of Net Debt and Equity. Forward Looking Statements

This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on management's beliefs and assumptions, current expectations, estimates and forecasts. Statements that are not historical facts, including statements that are preceded by, followed by, or that include, words such as "estimate," "expect," "intend," "believe," "plan," "anticipate" and other words and terms of similar meaning are forward-looking statements. West's estimated or anticipated future results, product performance or other non-historical facts are forward-looking and reflect our current perspective on existing trends and information.

Many of the factors that will determine the Company's future results are beyond the ability of the Company to control or predict. These statements are subject to known or unknown risks or uncertainties, and therefore, actual results could differ materially from past results and those expressed or implied in any forward-looking statement. You should bear this in mind as you consider forward-looking statements. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.

Important factors that may affect future results include, but are not limited to, the following:

Revenue and profitability: -- sales demand and our ability to meet that demand; -- competition from other providers in the Company's businesses, including customers' in-house operations, and from lower-cost producers in emerging markets, which can impact unit volume, price and profitability; -- customers' changing inventory requirements and manufacturing plans that alter existing orders or ordering patterns for the products we supply to them; -- the timing, regulatory approval and commercial success of customer products that incorporate our products, including the availability and scope of relevant public and private health insurance reimbursement for prescription products, medical devices and components and medical procedures in which our customers' products are employed or consumed; -- average profitability, or mix, of products sold in any reporting period; -- maintaining or improving production efficiencies and overhead absorption; -- the timeliness and effectiveness of capital investments, particularly capacity expansions, including the effects of delays and cost increases associated with construction, availability and cost of capital goods, and necessary internal, governmental and customer approvals of planned and completed projects, and the demand for goods to be produced in new facilities; -- dependence on third-party suppliers and partners, some of which are single-source suppliers of critical materials and products, including our Japanese partner and affiliate Daikyo Seiko, Ltd.; -- the availability and cost of skilled employees required to meet increased production, managerial, research and other needs of the Company, including professional employees and persons employed under collective bargaining agreements; -- interruptions or weaknesses in our supply chain, which could cause delivery delays or restrict the availability of raw materials and key bought-in components and finished products; -- raw-material price escalation, particularly petroleum-based raw materials, and our ability to pass raw-material cost increases on to customers through price increases; -- deflation of selling prices under contract requiring periodic price adjustments based on published cost-of-living or similar indices; and -- claims associated with product quality, including product liability, and the related costs of defending and obtaining insurance indemnifying us for the cost of such claims. Other Risks: -- the cost and progress of development, regulatory approval and marketing of new products as a result of the Company's research and development efforts; -- the defense of self-developed or in-licensed intellectual property, including patents, trade and service marks and trade secrets; -- dependence of normal business operations on information and communication systems and technologies provided, installed or operated by third parties, including costs and risks associated with planned upgrades to existing business systems; -- the effects of a prolonged U.S. and global economic downturn or recession; -- the relative strength of the U.S. dollar in relation to other currencies, particularly the Euro, British Pound, Danish Krone, Singapore Dollar, and Japanese Yen; -- changes in tax law or loss of beneficial tax incentives; -- the conclusion of unresolved tax positions inconsistent with currently expected outcomes; -- continued significant losses on investments of pension plan assets, relative to expected returns on those assets, could further increase our pension expense and funding obligations in future periods; -- the potential delay, suspension or elimination of customers' research and development efforts and overall spending resulting from continued uncertainty regarding federal healthcare reform efforts; and

other risks and uncertainties detailed in West's filings with the Securities and Exchange Commission, including our annual report on Form 10-K and our periodic reports on Form 10-Q and Form 8-K. You should evaluate any statement in light of these important factors.

Contacts: Investors and Financial Media: West FD Michael A. Anderson Evan Smith / Matt Duch Vice President and Treasurer (212) 850-5600 (610) 594-3345 wst@fd.com

West Pharmaceutical Services, Inc.

CONTACT: Michael A. Anderson, Vice President and Treasurer, West,
+1-610-594-3345, Investors and Financial Media: Evan Smith, or Matt Duch, both
of FD, +1-212-850-5600, wst@fd.com

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

Drinks Americas Reduces Short Term Liabilities By $1 Million

WILTON, Conn., Nov. 3 /PRNewswire/ -- (http://www.myprgenie.com/) -- Drinks Americas Holdings, Ltd. (BULLETIN BOARD: DKAM) , a leading owner, developer and marketer of premium beverages associated with renowned icons, including Kid Rock, Donald Trump, Dr. Dre, & Willie Nelson, announced that it has reduced its debt in the aggregate amount of $1,002,450. The Company reached agreements with the CEO and members of its Board of Directors to satisfy obligations owed to them for a portion of an outstanding loan by issuing to them 1,763,607 shares of our common stock and warrants to acquire 9,838,793 shares of our common stock. Under this arrangement, the valuation of the common stock and the exercise price of the warrants will be $.15 per share. This agreement reduces the companies debt by 15%. The conversion price is a 250 percent premium to the current market price of Drinks Americas shares. Fifty percent of the warrants can be exercised at anytime during the ten year term and the other 50 percent will only be exercisable at such time as the Company has achieved positive EBITDA for two successive quarters. If this profitably standard is not realized by management during the term of the warrants, 50 percent of the warrants will be forfeited.

J. Patrick Kenny, CEO Drinks Americas, stated, "In addition to strengthening the balance sheet of the Company, we are converting these obligations at a 250% premium to the trading price today and staking half or the warrants on our profitability in the future. We appreciate the confidence of our board. Our intention is that our willingness to convert these obligations at this premium, further contingent on profitability, sends a strong signal to our shareholders. Our credit facility is back in place supporting production and shipping of goods. We will continue to take steps like this to move the company to a stronger financial position."

To see press release go to http://myprgenie.com/2886

Contact: Charles Davidson, cdavidson@drinksamericas.com, 203-762-7000

Drinks Americas Holdings, Ltd.

CONTACT: Charles Davidson, +1-203-762-7000,
cdavidson@drinksamericas.com

VIVUS Announces Promotion of Peter Tam to PresidentTam Also Appointed to VIVUS Board of Directors

MOUNTAIN VIEW, Calif., Nov. 3 /PRNewswire-FirstCall/ -- VIVUS, Inc. today announced the promotion of Peter Tam to president of VIVUS. In this position, Mr. Tam will lead and have overall responsibility for VIVUS' development and business functions, including corporate and product strategy, business development, clinical and preclinical development, regulatory affairs and chemistry, manufacturing and controls. Leland Wilson, formerly president and chief executive officer, will remain CEO of VIVUS. Mr. Tam was also appointed to the Board of Directors.

"Peter's promotion to president, and appointment to the VIVUS board of directors, acknowledges his outstanding leadership qualities, vast experience and passionate commitment to VIVUS' mission to develop and deliver truly innovative therapies for large markets," stated Mr. Wilson. "Throughout his 16-year tenure at VIVUS, Peter has made major contributions to the company, including the early work that served as the foundation for the in-licensing and development of Qnexa, business development activities that led to the successful partnering/out-licensing of Evamist and the overall development strategy for avanafil. He clearly has the strategic vision, leadership skills, and operational effectiveness to create value for VIVUS and its shareholders at this critical juncture for the company. We are pleased to promote Peter to president of VIVUS."

Mr. Tam has held various leadership positions at VIVUS over the last 16 years, including director of clinical and corporate development, senior vice president of product and corporate development and chief operating officer. His responsibilities have included clinical development, strategic planning, and corporate/business development. Prior to VIVUS, Mr. Tam held various research and clinical development positions at Genentech from 1991 through 1993 and XOMA Corporation from 1987 to 1991. Mr. Tam received a B.S. in Chemistry from University of California Berkeley and his M.B.A. at Santa Clara University.

About VIVUS

VIVUS is a biopharmaceutical company developing innovative, next-generation therapies to address unmet needs in obesity, diabetes and sexual health. The company's lead product in clinical development, Qnexa(TM), has recently completed phase 3 clinical trials for the treatment of obesity. Qnexa is also in phase 2 clinical development for the treatment of type 2 diabetes. In the area of sexual health, VIVUS is in phase 3 development with avanafil, a potentially best-in-class PDE5 inhibitor, and in phase 2 development of Luramist(TM) for the treatment of hypoactive sexual desire disorder (HSDD) in women. MUSE® (alprostadil), a first generation therapy for the treatment of ED, is already on the market and generating revenue for VIVUS. For more information about the company, please visit http://www.vivus.com/.

Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as "anticipate," "believe," "forecast," "estimated" and "intend," among others. These forward-looking statements are based on VIVUS' current expectations and actual results could differ materially. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, substantial competition; uncertainties of patent protection and litigation; uncertainties of government or third party payer reimbursement; reliance on sole source suppliers; limited sales and marketing efforts and dependence upon third parties; risks related to the development of innovative products; and risks related to failure to obtain FDA clearances or approvals and noncompliance with FDA regulations. As with any pharmaceutical under development, there are significant risks in the development, regulatory approval and commercialization of new products. There are no guarantees that future clinical studies discussed in this press release will be completed or successful or that any product will receive regulatory approval for any indication or prove to be commercially successful. VIVUS does not undertake an obligation to update or revise any forward-looking statement. Investors should read the risk factors set forth in VIVUS' Form 10-K for the year ended December 31, 2008 and periodic reports filed with the Securities and Exchange Commission.

CONTACT: VIVUS, Inc. Investor Relations: The Trout Group Timothy E. Morris Brian Korb Chief Financial Officer 646-378-2923 650-934-5200 Media Relations: Pure Communications, Inc. Dan Budwick 973-271-6085

VIVUS, Inc.

CONTACT: Timothy E. Morris, Chief Financial Officer of VIVUS, Inc.,
+1-650-934-5200; or Investor Relations, Brian Korb of The Trout Group,
+1-646-378-2923; or Media, Dan Budwick of Pure Communications, Inc.,
+1-973-271-6085

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

NBTY to Web Cast Fiscal Fourth Quarter Conference Call

RONKONKOMA, N.Y., Nov. 3 /PRNewswire-FirstCall/ -- NBTY, Inc. (http://www.nbty.com/), a leading global manufacturer and marketer of nutritional supplements, today announced it will web cast a conference call to review fiscal fourth quarter results on the Company web site, (http://www.nbty.com/), on Monday, November 9, 2009 at 4:30 PM (ET). A press release announcing results for the fiscal fourth quarter results will be issued at 4:00 PM (ET) that day.

In addition to the online broadcast, a replay of the conference call will be available until Monday, November 16, 2009 at midnight by calling 1-706-645-9291; the Pin Code Number to enter is 38537434.

ABOUT NBTY

NBTY is a leading global vertically integrated manufacturer, marketer and distributor of a broad line of high-quality, value-priced nutritional supplements in the United States and throughout the world. Under a number of NBTY and third party brands, the Company offers over 25,000 products, including products marketed by the Company's Nature's Bounty® (http://www.naturesbounty.com/), VitaminWorld® (http://www.vitaminworld.com/), Puritan'sPride® (http://www.puritan.com/), Holland & Barrett® (http://www.hollandandbarrett.com/), Rexall® (http://www.rexall.com/), Sundown® (http://www.sundownnutrition.com/), MET-Rx® ( http://www.metrx.com/), Worldwide Sport Nutrition® (http://www.sportnutrition.com/ ), American Health® (http://www.americanhealthus.com/), GNC (UK)® (http://www.gnc.co.uk/), DeTuinen® (http://www.detuinen.nl/), LeNaturiste(TM) (http://www.lenaturiste.com/), SISU® (http://www.sisu.com/), Solgar® (http://www.solgar.com/ ), Good 'n' Natural® ( http://www.goodnnatural.com/), Home Health(TM) (http://www.homehealthus.com/), Julian Graves,(http://www.juliangraves.com/) and Ester-C® (http://www.ester-c.com/) brands. NBTY routinely posts information that may be important to investors on its web site.

Contact: Harvey Kamil Carl Hymans NBTY, Inc. G.S. Schwartz & Co. President & Chief Financial Officer 212-725-4500, ext. 304 631-200-2020 carlh@schwartz.com

NBTY, Inc.

CONTACT: Harvey Kamil, President & Chief Financial Officer, NBTY, Inc.,
+1-631-200-2020, or Carl Hymans, G.S. Schwartz & Co., +1-212-725-4500, ext.
304, carlh@schwartz.com

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

A Warm Retreat: Miami Hotels & Attractions for the Ultimate Weekend Getaway

BETHESDA, Md., Nov. 03 /PRNewswire/ -- Although much of the country is wrapped in chilly weather, Miami is still welcoming guests with 80-degree days and plenty of sunshine. And with sophisticated, affordable Miami hotels -- and exciting outdoor attractions -- Marriott International, Inc. , one of the world's leading lodging companies, is helping travelers plan getaways that will bring back the thrill of summer without breaking the bank.

From Downtown to the Coconut Grove, Midtown to Little Havana, Marriott's Miami hotels provide easy access to some of the city's best places to enjoy the sun, including:

-- Haulover Beach. This spacious beach features picnic areas with barbecue grills, pedestrian tunnels, which link to the park and marina on Biscayne Bay, plus a nine-hole golf course, tennis and volleyball courts, a kite-flying area and kite shop. -- Little Havana. Teeming with cafes, shops and galleries, visitors to Miami's Little Havana can spend the day sampling the sights, sounds and flavors of Cuba. Along the neighborhood's Calle Ocho, guests will find the famous Versailles Restaurant and the Walkway of the Stars. -- Everglades National Park. Covering 1.5 million acres in the heart of Florida, Everglades National Park boasts miles of trails along which visitors can hike, fish, boat, canoe or kayak. While here, guests should watch out for the Florida panther, the American crocodile and the West Indian manatee -- all of these unique animals call the park home. -- Biscayne National Park. Just minutes from many Downtown Miami hotels, Biscayne National Park offers visitors a glimpse at the only living tropical reef within the continental United States. For outdoor enthusiasts, the park offers glass-bottom boat trips, island excursions, snorkeling and canoe trips. -- South Beach. With upscale boutiques, cafes, clubs and white sand beaches, plus more than 800 examples well-preserved Art Deco buildings, South Beach offers endless ways to spend an afternoon in the sun.

With a wide range of packages and full concierge service, Marriott's Miami hotels can help make planning a warm-weather getaway easy. For additional information about accommodations, attractions and travel specials in "The Magic City," visit http://www.marriott.com/city/miami-hotels.

About Marriott

MARRIOTT INTERNATIONAL, Inc. is a leading lodging company with more than 3,200 lodging properties in 66 countries and territories. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club, The Ritz-Carlton Destination Club and Grand Residences by Marriott brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers. The company is headquartered in Bethesda, Maryland, USA.

CONTACT: Jeff Gold (301) 380-4213 jeff.gold@marriott.com

Marriott International, Inc.

CONTACT: Jeff Gold of Marriott, +1-301-380-4213, jeff.gold@marriott.com

Web Site: http://www.marriott.com/city/miami-hotels

London Hotels & Attractions for Budget Travelers

BETHESDA, Md., Nov. 3 /PRNewswire/ -- Although London is widely regarded as one of the most expensive cities to live in, it can be an affordable place to visit; which is why Marriott International, Inc. , one of the world's leading lodging companies, has created a mini-guide featuring free activities throughout the city.

With sophisticated, affordable London hotels and some well-chosen sites, travelers can experience many of the city's top attractions and a few hidden treasures without spending a dime, such as:

-- Tate Modern. On the banks of the Thames, the Tate Modern is Britain's national museum of international modern art and boasts an array of works by Cezanne, Matisse, Picasso, Rothko, Dali, Pollock and Warhol, as well as many up-and-coming artists. With the exception of special exhibitions, admission to Tate Modern is free. -- Tower Bridge. Just a short walk from Tate Modern and many London hotels, the Tower Bridge is one of the city's most iconic structures. Visitors can watch as the bridge is raised and lowered to allow boats to pass beneath it, then walk across the bridge and discover stunning city views. -- St. James's Park. Located next to Westminster (the Houses of Parliament), St James's Palace and Buckingham Palace, St James's Park is London's oldest Royal Park. In addition to breathtaking castle views, it also boasts a restaurant, a lake and gardens. -- Trafalgar Square. In the heart of the city, visitors to Trafalgar Square will find cultural events and an array of activities taking place throughout the square. And for those days when something special isn't happening, visitors can see Nelson's Column, several fountains, the famous stone lions and the infamous fourth plinth. -- Kenwood House. In Hampstead Heath, near many London hotels, this 17th century manor features panoramic city views, lush gardens with wooded paths and, although the home is largely void of furnishings, it boasts a world-class art collection - with paintings by Rembrandt, Turner, Reynolds, Gainsborough and Vermeer.

In addition to conveniently located London hotels, Marriott offers full concierge service to assist guests in planning their stay. For more information about accommodations, attractions and travel specials in London, visit http://www.marriott.com/city/london-hotels.

About Marriott

MARRIOTT INTERNATIONAL, Inc. is a leading lodging company with more than 3,200 lodging properties in 66 countries and territories. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club, The Ritz-Carlton Destination Club and Grand Residences by Marriott brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers. The company is headquartered in Bethesda, Maryland, USA.

CONTACT: Jeff Gold (301) 380-4213 jeff.gold@marriott.com

Marriott International, Inc.

CONTACT: Jeff Gold, +1-301-380-4213, jeff.gold@marriott.com

Web Site: http://www.marriott.com/city/london-hotels

Experience the Glamour of the Holidays with One-of-a-Kind Las Vegas Hotels & Events

BETHESDA, Md., Nov. 3 /PRNewswire/ -- Marriott International, Inc. , one of the world's leading lodging companies, is reminding travelers this holiday season that there's more to Las Vegas than its casinos and all-night parties. There's also plenty of holiday cheer near many Las Vegas hotels where guests can enjoy the magic of the season.

Some of the city's top holiday attractions include: -- Ethel M Chocolate Factory and Botanical Cactus Gardens. All dressed up for the holidays, this unique garden features four acres of drought-tolerant ornamentals, cacti and other succulents outfitted in 500,000 lights and surrounded by seasonal displays. Local choirs and Santa will make appearances throughout the season. The garden is open nightly, from sundown to 10 p.m., from Nov. 18 to Jan. 1, except on Christmas. -- The Strip. Although The Strip is lit up all year long, the holidays add even more lights to this already-shimmering boulevard. Not only do many Las Vegas hotels and casinos decorate for the season, but with the addition of festive shop windows and holiday revelers virtually everywhere, The Strip becomes the city's epicenter for celebration. -- Holiday Shows. Throughout the winter holidays, performers flock to Las Vegas to help ring in the season. From Wynonna and Andy Williams to Lee Greenwood and Mannheim Steamroller, there are holiday shows nearly every night of the week. Visitors should check with their Las Vegas hotel's concierge to find out which performers will be in town during their stay. -- Cowboy Christmas Gift Show. For 10 days, from Dec. 3 to Dec. 12, vacationers can shop for holiday gifts at the "only 'original' gift show of the Wrangler National Finals Rodeo." Located at the Las Vegas Convention Center, visitors can explore more than 400 "boutiques" featuring custom jewelry, western wear, boots and spurs, furniture, art, crafts and pottery.

In addition to information about area attractions, Marriott's Las Vegas hotels provide full concierge service to assist guests with planning every detail of their stay. To learn more about this season's special events, dining options, spa getaways and golf vacations, visit http://www.marriott.com/city/las-vegas-hotels.

About Marriott

MARRIOTT INTERNATIONAL, Inc. is a leading lodging company with more than 3,200 lodging properties in 66 countries and territories. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club, The Ritz-Carlton Destination Club and Grand Residences by Marriott brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers. The company is headquartered in Bethesda, Maryland, USA.

CONTACT: Jeff Gold (301) 380-4213 jeff.gold@marriott.com

Marriott International, Inc.

CONTACT: Jeff Gold, +1-301-380-4213, jeff.gold@marriott.com

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

Fuel Your Passion for Adventure - Experience Hawaii Hotels & Attractions Designed to Thrill

BETHESDA, Md., Nov. 3 /PRNewswire/ -- Marriott International, Inc. , one of the world's leading lodging companies, is making island adventures easier to plan by offering travelers information about Hawaii hotels and thrilling sites at four of the state's top island destinations.

Grouped by location, some of Hawaii's top places to experience pulse-pounding adventures include:

Kauai -- Zipline Treetop Tour. On this Just Live, Inc. eco-tour, thrill-seekers can spend 3.5 hours on seven zipline runs and five bridge crossings that will leave them flying above forests of pine, mango and eucalyptus trees. -- Princeville Ranch Stables. Located on 2,500 acres of private land, Princeville Stables is a working cattle ranch that offers guests the opportunity to ride horses across pastures, swim beneath waterfalls, help move cattle or take trails to ocean bluffs where they can see Bali Hai and the Kilauea Lighthouse. Oahu -- Surfing Lessons. Within minutes of many Hawaii hotels, Oahu's beaches feature big waves and endless hours of fun. For those who have never surfed, or who need a refresher course, nearly every beach offers surfing lessons by experienced guides. Visitors should check with their Hawaii hotel's concierge to find the best local spots to learn to surf. -- SCUBA Diving. Hanauma Bay Dive Tours leads snorkeling, SNUBA and SCUBA expeditions at the Hanauma Bay Nature Preserve. Here, participants can expect to see a wide range of fish, coral and sea turtles. Maui -- Haleakala National Park. Explore this expansive park by car, bike or on foot and discover Haleakala Crater, an active, but not currently erupting volcano. Hiking trails offer some of the island's best views and guided hikes provide insight into the area's unique eco-system. -- Deep-Sea Fishing. In Lahaina Harbor, Start Me Up Sportfishing offers deep-sea fishing on a 42-foot yacht. Targeted catches include marlin, ono, mahi, ahi and spearfish. Hawaii's Big Island -- Hawaii Volcanoes National Park. At this 377-square-mile park, visitors can get an "up-close" look at both Mauna Loa and Kilauea, hike miles of rocky trails and experience the park's living museum, which offers an intimate look at this awe-inspiring natural phenomenon. -- Waipio Valley. On the northern Hamakua Coast, the Waipio Valley offers visitors a glimpse (via guided van tour or horseback tour) at the boyhood home of King Kamehameha, where ancient waterfalls, taro fields and rivers slice through the valley.

For more information about Marriott's Hawaii hotels, vacation packages and local adventures, visit http://www.marriott.com/city/hawaii-hotels.

About Marriott

MARRIOTT INTERNATIONAL, Inc. is a leading lodging company with more than 3,200 lodging properties in 66 countries and territories. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club, The Ritz-Carlton Destination Club and Grand Residences by Marriott brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers. The company is headquartered in Bethesda, Maryland, USA.

CONTACT: Jeff Gold (301) 380-4213 jeff.gold@marriott.com

Marriott International, Inc.

CONTACT: Jeff Gold, +1-301-380-4213, jeff.gold@marriott.com

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

Viacom Reports Third Quarter 2009 Results- Operating Income Increased 14% with Gains in Filmed Entertainment and Media Networks - Adjusted Net Earnings from Continuing Operations Grew 24% - Adjusted Diluted EPS of $0.69 Rose 25% versus the Prior Year's Adjusted Results

NEW YORK, Nov. 3 /PRNewswire-FirstCall/ -- Viacom Inc. today reported a 14% increase in operating income and a 24% rise in adjusted net earnings for the third quarter ended September 30, 2009, with growth in Filmed Entertainment and Media Networks.

2009 Results Quarter Ended Nine Months Ended September 30, B/(W) September 30, B/(W) (in millions, except 2009 vs. 2009 vs. per share amounts) 2009 2008 2008 2009 2008 2008 Revenues $3,317 3,408 (3%) $9,521 10,382 (8%) Operating income 784 689 14% 1,812 2,048 (12%) Adjusted operating income(1) 784 689 14% 1,845 2,048 (10%) Net earnings from continuing operations attributable to Viacom 443 385 15% 897 1,061 (15%) Adjusted net earnings from continuing operations attributable to Viacom(1) 421 339 24% 896 1,027 (13%) Diluted EPS from continuing operations 0.73 0.62 18% 1.48 1.68 (12%) Adjusted diluted EPS(1) $0.69 0.55 25% $1.47 1.63 (10%) (1)Adjusted measures referenced in this release are detailed in the Supplemental Disclosures at the end of this release.

During the third quarter 2009, Viacom revenues decreased 3% to $3.32 billion, primarily reflecting lower home entertainment and advertising sales, which more than offset increases in affiliate sales and theatrical revenues. The gain in operating income in the quarter was driven primarily by an $88 million increase in the Filmed Entertainment segment. Adjusted net earnings from continuing operations attributable to Viacom were $421 million, up 24% over the third quarter 2008 results, with adjusted diluted earnings per share (EPS) of $0.69, a 25% increase over the prior year's results.

Sumner M. Redstone, Executive Chairman of Viacom, said, "As we enter a period of economic recovery, Viacom is already beginning to reap the benefits of a highly focused and well executed strategy. With our strong brands and growing global footprint, we are well positioned to capitalize on future opportunities."

Philippe Dauman, President and Chief Executive Officer of Viacom, said, "We continued to take a number of actions to strengthen our financial position, tighten our operations and improve execution across our businesses. The third quarter proved to be an opportune time to extend our long-term debt maturities at favorable rates, which allowed us to further strengthen our balance sheet. We continue to build on our leadership position in the cable networks business by strengthening our brands and working closely with our marketing partners to develop comprehensive, multiplatform solutions. A stronger programming slate drove ratings gains at several core networks and MTV delivered another record-setting Video Music Awards. And fans young and old have come together to celebrate The Beatles: Rock Band.

"At Paramount, the release of Transformers: Revenge of the Fallen late in the second quarter coupled with the mid-summer release of G.I. Joe: The Rise of Cobra continued to draw audiences into theatres, driving the studio's theatrical revenues and positioning us well for fourth quarter DVD sales."

Revenues Revenues Quarter Ended B/(W) Nine Months Ended B/(W) September 30, 2009 vs. September 30, 2009 vs. (in millions) 2009 2008 2008 2009 2008 2008 Media Networks $2,124 $2,128 - $5,955 $6,281 (5%) Filmed Entertainment 1,224 1,309 (6%) 3,691 4,226 (13%) Eliminations (31) (29) N/M (125) (125) N/M Total revenues $3,317 $3,408 (3%) $9,521 $10,382 (8%) N/M = Not Meaningful

Third Quarter 2009 revenues of $3.32 billion declined 3% from $3.41 billion in 2008. Media Networks revenues were essentially flat at $2.12 billion, with solid growth in affiliate sales offset by lower advertising and ancillary revenues. Worldwide affiliate revenues grew 10% in the quarter. Domestic advertising revenues were down 4%, which is a 2-percentage point sequential improvement over the second quarter 2009 results. Worldwide advertising revenues declined 5%. Strong sales of The Beatles: Rock Band video game were offset by lower home entertainment and consumer products revenues, resulting in a 3% decrease in worldwide ancillary revenues. Filmed Entertainment revenues were down 6% year-over-year to $1.22 billion as weakness in home entertainment sales more than offset growth in theatrical revenues. Transformers: Revenge of the Fallen and G.I. Joe: The Rise of Cobra fueled a 16% increase in worldwide theatrical revenues. Worldwide home entertainment revenues decreased 21%, which primarily reflects a difficult comparison with the strong performance of the DVD release of Iron Man in the third quarter of 2008. Television license fees were down 8% in the quarter.

Operating Income Operating Income Quarter Ended B/(W) Nine Months Ended B/(W) (Loss) September 30, 2009 vs. September 30, 2009 vs. (in millions) 2009 2008 2008 2009 2008 2008 Media Networks $773 $761 2% $2,089 $2,220 (6%) Filmed Entertainment 69 (19) N/M (62) 4 N/M Corporate (59) (53) (11%) (181) (176) (3%) Eliminations 1 - N/M (1) - N/M Total adjusted operating income $784 $689 14% $1,845 $2,048 (10%) Adjustments(1) - - N/M (33) - N/M Total operating income $784 $689 14% $1,812 $2,048 (12%) N/M = Not Meaningful (1) Adjustments, which affect the nine-month period, are detailed in the Supplemental Disclosures at the end of this release.

Third Quarter 2009 operating income increased 14% to $784 million compared with $689 million in the third quarter of 2008. This result was driven by the Filmed Entertainment segment which swung from a loss in the previous year to a $69 million profit in the third quarter of 2009, reflecting the strong performance of Transformers: Revenge of the Fallen and the positive impact of the 2008 restructuring and other cost-saving initiatives. Media Networks operating income grew 2% to $773 million, reflecting continued growth in affiliate revenues as well as the benefits from the 2008 restructuring and other cost-saving initiatives.

Third Quarter 2009 adjusted net earnings from continuing operations attributable to Viacom increased $82 million, or 24%, to $421 million, principally due to higher operating income. Adjusted diluted earnings per share for the quarter were $0.69, a 25% increase over $0.55 in the third quarter of 2008. These results exclude the favorable impact of discrete tax benefits as well as an after-tax loss related to the extinguishment of debt in the quarter.

Debt

At September 30, 2009, total debt outstanding, including capital lease obligations, decreased to $6.85 billion, compared with $8.00 billion at December 31, 2008. The Company's cash balances decreased to $249 million at September 30, 2009 compared with $792 million at December 31, 2008.

About Viacom

Viacom, consisting of BET Networks, MTV Networks and Paramount Pictures, is the world's leading entertainment content company. It engages audiences on television, motion picture and digital platforms through many of the world's best known entertainment brands, including MTV, VH1, CMT, Logo, Nickelodeon, Nick at Nite, Nick Jr., COMEDY CENTRAL, Spike TV, TV Land, BET, Rock Band, AddictingGames, Atom, Neopets, Shockwave and Paramount Pictures. Viacom's global reach includes approximately 170 channels and 400 online properties in more than 160 countries and territories.

For more information about Viacom and its businesses, visit http://www.viacom.com/.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains both historical and forward-looking statements. All statements that are not statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements reflect the Company's current expectations concerning future results, objectives, plans and goals, and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause actual results, performance or achievements to differ. These risks, uncertainties and other factors include, among others: the worsening of current economic conditions generally, and in advertising and retail markets in particular; the public acceptance of the Company's programs, motion pictures and games on the various platforms on which they are distributed; competition for audiences and distribution; technological developments and their effect in the Company's markets and on consumer behavior; fluctuations in the Company's results due to the timing, mix and availability of the Company's motion pictures and games; changes in the Federal communications laws and regulations; the impact of piracy; other domestic and global economic, business, competitive and/or regulatory factors affecting the Company's businesses generally; and other factors described in the Company's news releases and filings with the Securities and Exchange Commission, including its 2008 Annual Report on Form 10-K and reports on Form 10-Q and Form 8-K. The forward-looking statements included in this document are made only as of the date of this document, and the Company does not have any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.

VIACOM INC. CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Quarter Ended Nine Months Ended (in millions, except earnings September 30, September 30, per share amounts) 2009 2008 2009 2008 Revenues $3,317 $3,408 $9,521 $10,382 Expenses: Operating 1,790 1,945 5,481 5,992 Selling, general and administrative 663 682 1,986 2,061 Depreciation and amortization 80 92 242 281 Total expenses 2,533 2,719 7,709 8,334 Operating income 784 689 1,812 2,048 Interest expense, net (107) (123) (325) (363) Equity in losses of investee companies (1) (32) (57) (48) Loss on extinguishment of debt (84) - (84) - Other items, net (13) (23) (47) (38) Earnings from continuing operations before provision for income taxes 579 511 1,299 1,599 Provision for income taxes (133) (122) (392) (526) Net earnings from continuing operations 446 389 907 1,073 Discontinued operations, net of tax 20 16 20 17 Net earnings (Viacom and noncontrolling interests) 466 405 927 1,090 Less: Net earnings attributable to noncontrolling interest (3) (4) (10) (12) Net earnings attributable to Viacom $463 $401 $917 $1,078 Amounts attributable to Viacom: Net earnings from continuing operations $443 $385 $897 $1,061 Discontinued operations, net of tax 20 16 20 17 Net earnings attributable to Viacom $463 $401 $917 $1,078 Basic earnings per share attributable to Viacom: Continuing operations $0.73 $0.62 $1.48 $1.69 Discontinued operations $0.03 $0.03 $0.03 $0.02 Net earnings per share of Viacom $0.76 $0.65 $1.51 $1.71 Diluted earnings per share attributable to Viacom: Continuing operations $0.73 $0.62 $1.48 $1.68 Discontinued operations $0.03 $0.03 $0.03 $0.03 Net earnings per share of Viacom $0.76 $0.65 $1.51 $1.71 Weighted average number of common shares outstanding: Basic 607.3 618.9 607.0 629.2 Diluted 608.6 619.3 607.9 630.1 VIACOM INC. CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, December 31, 2009 2008 (in millions, except par value) ASSETS Current assets: Cash and cash equivalents $249 $792 Receivables, net (including retained interests in securitizations) 1,866 2,271 Inventory, net 854 881 Deferred tax assets, net 258 203 Prepaid and other assets 378 355 Total current assets 3,605 4,502 Property and equipment, net 1,042 1,145 Inventory, net 3,993 4,133 Goodwill 11,498 11,470 Intangibles, net 593 674 Other assets 576 563 Total assets $21,307 $22,487 LIABILITIES AND EQUITY Current liabilities: Accounts payable $238 $574 Accrued expenses 1,015 1,304 Participants' share and residuals 1,097 1,537 Program rights obligations 427 384 Deferred revenue 393 442 Current portion of long-term debt 101 105 Other liabilities 436 496 Total current liabilities 3,707 4,842 Long-term debt 6,751 7,897 Participants' share and residuals 544 488 Program rights obligations 576 621 Deferred tax liabilities, net 282 12 Other liabilities 1,233 1,556 Redeemable noncontrolling interest 170 148 Commitments and contingencies Viacom stockholders' equity: Class A Common stock, par value $0.001, 375.0 authorized; 57.4 and 57.4 outstanding, respectively - - Class B Common stock, par value $0.001, 5,000.0 authorized; 550.0 and 549.4 outstanding, respectively 1 1 Additional paid-in capital 8,256 8,186 Treasury stock (5,725) (5,725) Retained earnings 5,408 4,496 Accumulated other comprehensive income (loss) 89 (49) Total Viacom stockholders' equity 8,029 6,909 Noncontrolling interests 15 14 Total equity 8,044 6,923 Total liabilities and equity $21,307 $22,487 VIACOM INC. SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION The following tables reconcile the Company's results for the quarter and nine months ended September 30, 2009 and 2008, respectively, to adjusted results that exclude the impact of severance charges, an impairment charge of a minority investment, early extinguishment of debt and net discrete tax benefits. The Company uses adjusted operating income, adjusted net earnings from continuing operations attributable to Viacom and adjusted diluted EPS as applicable, among other measures, to evaluate the Company's operating performance in the absence of certain items and for planning and forecasting of future periods. The Company believes that the adjusted results provide relevant and useful information for investors because it allows investors to view performance in a manner similar to the method used by the Company's management, improves their ability to understand the Company's operating performance and makes it easier to compare the Company's results with other companies. Since adjusted operating income, adjusted net earnings from continuing operations attributable to Viacom and adjusted diluted EPS are not measures of performance calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for operating income, net earnings from continuing operations attributable to Viacom and diluted EPS as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies. Consolidated Results (in millions, except per Quarter Ended share amounts) September 30, 2009 Net Earnings Pre-tax from Continuing Earnings from Operations Operating Continuing Attributable to Income Operations (1) Viacom (2) Diluted EPS Reported results $784 $579 $443 $0.73 Adjustments: Extinguishment of debt(3) - 84 52 0.08 Discrete tax benefits(4) - - (74) (0.12) Adjusted results $784 $663 $421 $0.69 (in millions, except per Nine Months Ended share amounts) September 30, 2009 Net Earnings Pre-tax from Continuing Earnings from Operations Operating Continuing Attributable to Income Operations (1) Viacom (2) Diluted EPS Reported results $1,812 $1,299 $897 $1.48 Adjustments: Severance charges(5) 33 33 21 0.03 Extinguishment of debt(3) - 84 52 0.08 Discrete tax benefits(4) - - (74) (0.12) Adjusted results $1,845 $1,416 $896 $1.47 VIACOM INC. SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION Consolidated Results, con't. (in millions, except per Quarter Ended share amounts) September 30, 2008 Net Earnings Pre-tax from Continuing Earnings from Operations Operating Continuing Attributable to Income Operations (1) Viacom (2) Diluted EPS Reported results $689 $511 $385 $0.62 Adjustments: Discrete tax benefits(4) - - (46) (0.07) Adjusted results $689 $511 $339 $0.55 (in millions, except per Nine Months Ended share amounts) September 30, 2008 Net Earnings Pre-tax from Continuing Earnings from Operations Operating Continuing Attributable to Income Operations (1) Viacom (2) Diluted EPS Reported results $2,048 $1,599 $1,061 $1.68 Adjustments: Impairment of investment(6) - 12 12 0.02 Discrete tax benefits(4) - - (46) (0.07) Adjusted results $2,048 $1,611 $1,027 $1.63 (1)Pre-tax earnings from continuing operations represent earnings before provision for income taxes. (2)The tax impact of adjustments has been calculated where appropriate using the applicable rates in effect for the period presented. (3)For the quarter and nine months ended September 30, 2009, adjusted results exclude an $84 million pre-tax loss on the early extinguishment of a portion of the Company's 5.75% Senior Notes due 2011. (4)2009 and 2008 adjusted results exclude $74 million and $46 million, respectively, of net discrete tax benefits for the quarter and nine months ended September 30, 2009 and 2008. The majority of the discrete tax benefits were the result of effectively settled audits. (5)For the nine months ended September 30, 2009, adjusted results exclude $33 million of severance expenses attributable to the Media Networks and Filmed Entertainment segments, which occurred in the 2nd quarter of 2009. (6)For the nine months ended September 30, 2008, adjusted results exclude a $12 million pre-tax non-cash investment impairment charge, which occurred in the 1st quarter of 2008. VIACOM INC. SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION There were no adjustments to operating income in the quarter ended September 30, 2009 or in the quarter and nine months ended September 30, 2008. Segment Results (in millions, except per Nine Months Ended share amounts) September 30, 2009 Total Media Filmed Operating Networks Entertainment Corporate Eliminations Income Reported results $2,073 $(79) $(181) $(1) $1,812 Adjustments: Severance charges(1) 16 17 - - 33 Adjusted results $2,089 $(62) $(181) $(1) $1,845 (1)For the nine months ended September 30, 2009, adjusted operating income excludes $33 million of severance expenses attributable to the Media Networks and Filmed Entertainment segments, which occurred in the 2nd quarter of 2009.

Viacom Inc.

CONTACT: Press: Carl Folta, Executive Vice President, Corporate
Communications, +1-212-258-6352, carl.folta@viacom.com, or Kelly McAndrew,
Vice President, Corporate Communications, +1-212-846-7455,
kelly.mcandrew@viacom.com, or Investors: James Bombassei, Senior Vice
President, Investor Relations, +1-212-258-6377, james.bombassei@viacom.com, or
Pamela Yi, Director, Investor Relations, +1-212-846-7581,
pamela.yi@viacom.com, all of Viacom Inc.

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

Regeneron Reports Third Quarter 2009 Financial and Operating Results

TARRYTOWN, N.Y., Nov. 3 /PRNewswire-FirstCall/ -- Regeneron Pharmaceuticals, Inc. today announced financial and operating results for the third quarter of 2009. The Company reported a net loss of $1.0 million, or $0.01 per share (basic and diluted), for the third quarter of 2009 compared with a net loss of $19.1 million, or $0.24 per share (basic and diluted), for the third quarter of 2008. The Company reported a net loss of $31.3 million, or $0.39 per share (basic and diluted), for the nine months ended September 30, 2009 compared with a net loss of $49.6 million, or $0.63 per share (basic and diluted), for the same period in 2008. During the third quarter of 2009, the Company recognized as revenue a $20.0 million milestone payment from Bayer HealthCare, as described below.

At September 30, 2009, cash, restricted cash, and marketable securities totaled $438.6 million compared with $527.5 million at December 31, 2008.

Current Business Highlights ARCALYST® (rilonacept) - Inflammatory Diseases

The Company shipped $5.3 million of ARCALYST® (rilonacept) Injection for Subcutaneous Use to its U.S. distributors during the third quarter of 2009, compared to $4.3 million in the same quarter of 2008. Shipments during the first nine months of 2009 were $15.0 million compared to $6.7 million for the same period of 2008. ARCALYST, an interleukin-1 (IL-1) blocker, was approved in the United States in February 2008 for the treatment of Cryopyrin-Associated Periodic Syndromes (CAPS), including Familial Cold Auto-inflammatory Syndrome (FCAS) and Muckle-Wells Syndrome (MWS) in adults and children 12 and older. The Company currently projects shipments of ARCALYST to its U.S. distributors to total approximately $20 million in 2009. In October 2009, rilonacept was approved under exceptional circumstances by the European Medicines Agency (EMEA) for the treatment of CAPS with severe symptoms in adults and children aged 12 years and older.

ARCALYST is in a Phase 3 clinical development program for the treatment of gout. The program includes four clinical trials, all of which are currently enrolling patients. Two Phase 3 clinical trials (called PRE-SURGE 1 and PRE-SURGE 2) are evaluating ARCALYST versus placebo for the prevention of gout flares in patients initiating urate-lowering drug therapy. A third Phase 3 trial in acute gout (SURGE) is evaluating treatment with ARCALYST alone versus ARCALYST in combination with a non-steroidal anti-inflammatory drug (NSAID) versus an NSAID alone. The fourth Phase 3 trial is a placebo-controlled safety study (RE-SURGE). The Company expects to report initial data from the Phase 3 program in the first half of 2010. Regeneron owns worldwide rights to ARCALYST (rilonacept).

Aflibercept (VEGF Trap) - Oncology

Aflibercept, an anti-angiogenic protein product candidate designed to bind all forms of vascular endothelial growth factor A (VEGF-A), is being developed worldwide by Regeneron and its collaborator, sanofi-aventis. At the end of the third quarter of 2009, more than 80 percent of the planned number of patients were enrolled in each of three Phase 3 trials that are evaluating combinations of aflibercept with standard chemotherapy regimens for the treatment of cancer. One trial (called VELOUR) is evaluating aflibercept as a 2nd line treatment for metastatic colorectal cancer in combination with FOLFIRI (folinic acid (leucovorin), 5-fluorouracil, and irinotecan). A second trial (VITAL) is evaluating aflibercept as a 2nd line treatment for metastatic non-small cell lung cancer in combination with docetaxel. The third trial (VENICE) is evaluating aflibercept as a 1st line treatment for metastatic androgen-independent prostate cancer in combination with docetaxel/prednisone. All three trials are studying the current standard of chemotherapy care for the cancer being studied with and without aflibercept. Analyses of the data from these studies will be conducted when a prespecified number of events have occurred in each trial. Based on current enrollment and event rates, an interim analysis of the Phase 3 study in colorectal cancer is expected to be conducted by an independent data monitoring committee (IDMC) in the second half of 2010. Complete results from this study in colorectal cancer and from the study in non-small cell lung cancer are anticipated in the first half of 2011. Based on the current enrollment and number of events, an interim analysis of the prostate study is expected to be conducted by an IDMC in mid-2011, with complete results anticipated in 2012. In addition, a Phase 2 study (AFFIRM) is being conducted of aflibercept in 1st line metastatic colorectal cancer in combination with folinic acid (leucovorin), 5-fluorouracil, and oxaliplatin.

In September 2009, as previously reported, a fourth Phase 3 trial (VANILLA) that was evaluating aflibercept as a 1st line treatment for metastatic pancreatic cancer in combination with gemcitabine was discontinued at the recommendation of an IDMC. As part of a planned interim efficacy analysis, the Committee determined that the addition of aflibercept to gemcitabine would be unable to demonstrate a statistically significant improvement in the primary endpoint of overall survival compared to placebo plus gemcitabine in this study. The types and frequencies of adverse events reported on the combination arm with aflibercept were generally as anticipated.

VEGF Trap-Eye - Ophthalmologic Diseases

VEGF Trap-Eye, a specially purified and formulated form of VEGF Trap for use in intraocular treatment of retinal disease, is being developed by Regeneron and its collaborator, Bayer HealthCare. Two Phase 3 studies (VIEW 1 and VIEW 2) evaluating VEGF Trap-Eye in patients with the neovascular form of Age-related Macular Degeneration (wet AMD) are now fully enrolled, and we expect initial data from this program to be reported in late 2010. A Phase 2 study (called DA VINCI) of VEGF Trap-Eye for the treatment of the Diabetic Macular Edema (DME) is also fully enrolled, with data expected during the first half of 2010. Additionally, two Phase 3 studies in Central Retinal Vein Occlusion (CRVO) are enrolling patients; data from the first of these studies are anticipated to be available in the first half of 2011.

During October 2009, 24-month results of the extension stage of the Phase 2 study of VEGF Trap-Eye in wet AMD (CLEAR-IT 2) were presented at the 2009 American Academy of Ophthalmology meeting. After receiving VEGF Trap-Eye for one year, the 117 patients who elected to enter the extension stage were dosed on a 2.0 mg PRN basis, irrespective of the dose at which they were treated earlier in the study. On a combined basis, for these 117 patients, the mean gain in visual acuity was 7.3 letters (p<0.0001 versus baseline) at the three-month primary endpoint of the original Phase 2 study, 8.4 letters (p<0.0001 versus baseline) at one year, and 6.1 letters (p<0.0001 versus baseline) at month 12 of the extension study. Thus, after 24 months of dosing with VEGF Trap-Eye in the Phase 2 study, patients continued to maintain a highly significant improvement in visual acuity versus baseline, while receiving, on average, only 4.6 injections over the 21-month PRN dosing phase that extended from month three to month 24. The most common adverse events were those typically associated with intravitreal injection.

Bayer HealthCare has rights to market VEGF Trap-Eye outside the United States, where the companies will share equally in profits from any future sales of VEGF Trap-Eye. Regeneron maintains exclusive rights to VEGF Trap-Eye in the United States.

Monoclonal Antibodies

During the third quarter of 2009, REGN475, an antibody to Nerve Growth Factor (NGF), a novel target for pain, began a dose ranging study in osteoarthritis of the knee. Trial results are expected during the first half of 2010. A Phase 1 study of REGN475 in healthy volunteers is also continuing, and Phase 1 studies are in progress with REGN88, an antibody to the interleukin-6 receptor (IL-6R) that is being evaluated in rheumatoid arthritis, and REGN421, an antibody to Delta-like ligand-4 (Dll4) that is being studied in patients with advanced malignancies. REGN475, REGN88, and REGN421 are fully human monoclonal antibodies generated by Regeneron using the VelocImmune® technology and developed within the Company's human antibody collaboration with sanofi-aventis. Regeneron and sanofi-aventis expect to enter two more human monoclonal antibodies into clinical development this year and to advance an average of two to three into clinical development each year thereafter over the next several years.

Financial Results Revenues

Total revenues increased to $117.5 million in the third quarter of 2009 from $65.6 million in the same quarter of 2008 and increased to $282.5 million for the first nine months of 2009 from $182.6 million for the same period of 2008. The Company's revenue was comprised of contract research and development revenue, a 2009 research progress payment, technology licensing revenue, and net product sales.

Contract Research and Development Revenue

Contract research and development revenue relates primarily to the Company's aflibercept and antibody collaborations with sanofi-aventis and the Company's VEGF Trap-Eye collaboration with Bayer HealthCare. Contract research and development revenue for the three and nine months ended September 30, 2009 and 2008 consisted of the following:

Three months ended Nine months ended September 30, September 30, ------------------ ----------------- (In millions) 2009 2008 2009 2008 ---- ---- ---- ---- Contract research & development revenue Sanofi-aventis $68.5 $42.0 $178.9 $116.3 Bayer HealthCare 12.2 9.0 34.9 28.2 Other 1.8 1.9 5.3 5.4 --- --- --- --- Total contract research & development revenue $82.5 $52.9 $219.1 $149.9 ===== ===== ====== ======

For the three and nine months ended September 30, 2009 and 2008, contract research and development revenue from sanofi-aventis consisted of the following:

Three months ended Nine months ended September 30, September 30, ------------------ ----------------- (In millions) 2009 2008 2009 2008 ---- ---- ---- ---- Aflibercept: Regeneron expense reimbursement $7.0 $7.3 $21.6 $29.3 Recognition of deferred revenue related to up-front payments 2.5 2.1 7.4 6.2 --- --- --- --- Total aflibercept 9.5 9.4 29.0 35.5 --- --- ---- ---- Antibody: Regeneron expense reimbursement 55.7 29.5 139.8 72.4 Recognition of deferred revenue related to up-front payment 2.6 2.6 7.9 7.9 Recognition of revenue related to VelociGene((R)) agreement 0.7 0.5 2.2 0.5 --- --- --- --- Total antibody 59.0 32.6 149.9 80.8 ---- ---- ----- ---- Total sanofi-aventis contract research & development revenue $68.5 $42.0 $178.9 $116.3 ===== ===== ====== ======

Sanofi-aventis' reimbursement of Regeneron's aflibercept expenses decreased for the three and nine months ended September 30, 2009, compared to the same periods in 2008, primarily due to lower Company costs associated with internal research activities and, for the nine months ended September 30, 2009, lower costs related to manufacturing clinical drug supplies. Sanofi-aventis also incurs aflibercept development expenses directly, including costs related to the Phase 3 clinical trials sanofi-aventis is overseeing in the oncology program.

Sanofi-aventis' reimbursement of Regeneron's expenses under the antibody collaboration increased for the three and nine months ended September 30, 2009, compared to the same periods in 2008, due to an increase in research activities conducted under the collaboration's discovery agreement and increases in development activities for antibody candidates, including REGN88, REGN421, and REGN475, under the collaboration's license agreement.

For the three and nine months ended September 30, 2009 and 2008, contract research and development revenue from Bayer HealthCare consisted of the following:

Three months ended Nine months ended September 30, September 30, ------------------ ----------------- (In millions) 2009 2008 2009 2008 ---- ---- ---- ---- Cost-sharing of Regeneron VEGF Trap-Eye development expenses $9.7 $5.7 $27.5 $18.3 Recognition of deferred revenue related to up-front and non-substantive milestone payments 2.5 3.3 7.4 9.9 --- --- --- --- Total Bayer HealthCare contract research & development revenue $12.2 $9.0 $34.9 $28.2 ===== ==== ===== =====

In periods when the Company recognizes VEGF Trap-Eye development expenses that the Company incurs under the collaboration with Bayer HealthCare, the Company also recognizes, as contract research and development revenue, the portion of those VEGF Trap-Eye development expenses that is reimbursable by Bayer HealthCare. The Company incurred higher VEGF Trap-Eye development expenses under the collaboration for the three and nine months ended September 30, 2009, compared to the same period in 2008, primarily in connection with the collaboration's clinical development programs in wet AMD, DME, and CRVO.

Research Progress Payment

In July 2009, the Company received a $20.0 million substantive milestone payment from Bayer HealthCare in connection with the dosing of the first patient in a Phase 3 trial of VEGF Trap-Eye in CRVO. The payment was recognized in revenues as a research progress payment for the three and nine months ended September 30, 2009.

Technology Licensing Revenue

Regeneron has entered into non-exclusive license agreements with AstraZeneca and Astellas that allow those companies to utilize VelocImmune® technology in their internal research programs to discover human monoclonal antibodies. Each company is required to make six $20.0 million annual, non-refundable payments, subject to the ability to terminate their agreements after making a total of four such payments. To date, the Company has received $60.0 million in payments from each of AstraZeneca and Astellas under these agreements. Upon receipt, these payments are deferred and recognized as revenue ratably over the ensuing year of each agreement. Regeneron will also receive a mid-single-digit royalty on sales of any antibodies discovered utilizing VelocImmune.

Net Product Sales

Revenue and deferred revenue from product sales are recorded net of applicable provisions for prompt pay discounts, product returns, estimated rebates payable under governmental programs (including Medicaid), distributor fees, and other sales-related costs. For the three and nine months ended September 30, 2009, the Company recognized as revenue $5.0 million and $13.4 million of ARCALYST® (rilonacept) net product sales, respectively, for which the right of return no longer exists and rebates can be reasonably estimated, compared to $2.7 million for three and nine months ended September 30, 2008. At September 30, 2009 and 2008, deferred revenue related to ARCALYST net product sales totaled $5.0 million and $3.8 million, respectively.

Expenses

Total operating expenses for the third quarter of 2009 were $118.7 million, 42 percent higher than the same period in 2008, and $317.2 million for the first nine months of 2009, 34 percent higher than the same period in 2008. Average headcount increased to 998 in the third quarter of 2009 from 851 in the same period of 2008 and increased to 967 for the first nine months of 2009 from 778 in the same period of 2008, due primarily to the Company's expanding research and development activities principally in connection with the sanofi-aventis antibody collaboration. Operating expenses included non-cash compensation expense related to employee stock option and restricted stock awards of $7.5 million in the third quarter of 2009 and $22.6 million for the first nine months of 2009, compared with $8.2 million and $24.7 million, respectively, for the same periods of 2008.

Research and development (R&D) expenses increased to $105.4 million in the third quarter of 2009 from $72.1 million in the comparable quarter of 2008, and to $280.0 million in the first nine months of 2009 from $200.3 million in the same period of 2008. In the third quarter and first nine months of 2009, the Company incurred higher R&D costs primarily related to additional R&D headcount, clinical development costs for ARCALYST, VEGF Trap-Eye, and monoclonal antibodies, research and preclinical development costs associated with the antibody programs, and facility-related costs to support expanded R&D activities.

Selling, general, and administrative (SG&A) expenses increased to $12.8 million in the third quarter of 2009 from $11.1 million in the comparable quarter of 2008, and to $35.9 million in the first nine months of 2009 from $35.7 million in the same period of 2008. In the third quarter and for the first nine months of 2009, the Company incurred higher compensation and facility-related expenses due primarily to increases in administrative headcount to support the expanded research and development activities, higher patent-related costs, and higher expenses related to ARCALYST® (rilonacept), partially offset by lower market research costs related to various programs and a decrease in recruitment costs for administrative headcount.

Other Income and Expense

Investment income decreased to $0.9 million in the third quarter of 2009 from $3.7 million in the comparable quarter of 2008 and to $3.9 million in the first nine months of 2009 compared to $15.5 million in the first nine months of 2008. The decrease in investment income was due to lower yields on, and lower balances of, cash and marketable securities in 2009 compared to 2008.

Interest expense decreased to $0.6 million in the third quarter of 2009 from $1.8 million in the comparable quarter of 2008, and to $0.6 million in the first nine months of 2009 from $7.5 million in the same period of 2008. Interest expense in 2009 was attributable to the imputed interest portion of the Company's payments to its landlord to lease newly constructed laboratory and office facilities in Tarrytown, New York, which commenced in the third quarter of 2009. Interest expense in 2008 was attributable to the Company's 5.5 percent Convertible Senior Subordinated Notes; no Notes were outstanding in 2009. During the first nine months of 2008, the Company repurchased $82.5 million in principal amount of its 5.5 percent Convertible Senior Subordinated Notes. In connection with the repurchased notes, the Company recognized a $0.9 million loss on early extinguishment of debt. The remaining $117.5 million of these notes were repaid in full upon their maturity in October 2008.

Income Tax Expense

In the third quarter of 2008, the Company incurred and paid income tax expense, consisting primarily of alternative minimum tax, of $3.1 million, which resulted from the utilization of certain net operating loss carry-forwards for tax purposes that would otherwise have expired over the next several years.

Revision of Previously Issued Financial Statements

The Company has revised its financial statements at December 31, 2008 and for the three and nine months ended September 30, 2008 in connection with the application of authoritative guidance issued by the Financial Accounting Standards Board (FASB) to the Company's December 2006 lease, as amended, of laboratory and office facilities in Tarrytown, New York. The revisions consisted entirely of non-cash adjustments, primarily to the Company's balance sheet at December 31, 2008, and had no impact to the Company's business operations, existing capital resources, or the Company's ability to fund its operating needs, including the development of its product candidates. The revisions, and a description of the basis for the revisions, are more fully described in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009.

About Regeneron Pharmaceuticals

Regeneron is a fully integrated biopharmaceutical company that discovers, develops, and commercializes medicines for the treatment of serious medical conditions. In addition to ARCALYST® (rilonacept) Injection for Subcutaneous Use, its first commercialized product, Regeneron has therapeutic candidates in clinical trials for the potential treatment of cancer, eye diseases, inflammatory diseases, and pain, and has preclinical programs in other diseases and disorders. Additional information about Regeneron and recent news releases are available on Regeneron's web site at http://www.regeneron.com/.

This news release discusses historical information and includes forward-looking statements about Regeneron and its products, development programs, finances, and business, all of which involve a number of risks and uncertainties, such as risks associated with preclinical and clinical development of Regeneron's drug candidates, determinations by regulatory and administrative governmental authorities which may delay or restrict Regeneron's ability to continue to develop or commercialize its product and drug candidates, competing drugs that are superior to Regeneron's product and drug candidates, uncertainty of market acceptance of Regeneron's product and drug candidates, unanticipated expenses, the availability and cost of capital, the costs of developing, producing, and selling products, the potential for any collaboration agreement, including Regeneron's agreements with the sanofi-aventis Group and Bayer HealthCare, to be canceled or to terminate without any product success, risks associated with third party intellectual property, and other material risks. A more complete description of these and other material risks can be found in Regeneron's filings with the United States Securities and Exchange Commission (SEC), including its Form 10-K for the year ended December 31, 2008 and Form 10-Q for the quarter ended September 30, 2009. Regeneron does not undertake any obligation to update publicly any forward-looking statement, whether as a result of new information, future events, or otherwise unless required by law.

Contacts Information: Peter Dworkin Laura Lindsay Investor Relations Media Relations 914.345.7640 914.345.7800 peter.dworkin@regeneron.com laura.lindsay@regeneron.com REGENERON PHARMACEUTICALS, INC. CONDENSED BALANCE SHEETS (Unaudited) (In thousands) September 30, December 31, 2009 2008 ------------ ------------ (Revised)* ASSETS Cash, restricted cash, and marketable securities $438,596 $527,461 Receivables 67,766 35,212 Property, plant, and equipment, net 215,169 142,035 Other assets 20,661 19,512 ------ ------ Total assets $742,192 $724,220 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $55,291 $36,168 Deferred revenue 198,546 209,925 Facility lease obligation 62,571 54,182 Other long-term liabilities 3,341 2,431 Stockholders' equity 422,443 421,514 ------- ------- Total liabilities and stockholders' equity $742,192 $724,220 ======== ======== * Revised as described in the paragraph of this press release titled "Revision of Previously Issued Financial Statements." REGENERON PHARMACEUTICALS, INC. CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) For the three months For the nine months ended September 30, ended September 30, 2009 2008 2009 2008 ---- ---- ---- ---- (Revised)* (Revised)* Revenues Contract research and development $82,482 $52,878 $219,104 $149,914 Research progress payments 20,000 20,000 Technology licensing 10,000 10,000 30,000 30,000 Net product sales 4,973 2,706 13,364 2,706 ----- ----- ------ ----- 117,455 65,584 282,468 182,620 ------- ------ ------- ------- Expenses Research and development 105,434 72,089 279,972 200,335 Selling, general, and administrative 12,840 11,103 35,892 35,652 Cost of goods sold 472 292 1,299 292 --- --- ----- --- 118,746 83,484 317,163 236,279 ------- ------ ------- ------- Loss from operations (1,291) (17,900) (34,695) (53,659) ------ ------- ------- ------- Other income (expense) Investment income 857 3,674 3,935 15,513 Interest expense (581) (1,772) (581) (7,457) Loss on early extinguishment of debt (7) (938) --- ----- ----- ----- 276 1,895 3,354 7,118 --- ----- ----- ----- Net loss before income tax expense (1,015) (16,005) (31,341) (46,541) Income tax expense 3,079 3,079 ----- ----- ------ ----- Net loss $(1,015) $(19,084) $(31,341) $(49,620) ======= ======== ======== ======== Net loss per share amounts, basic and diluted $(0.01) $(0.24) $(0.39) $(0.63) Weighted average shares outstanding, basic and diluted 79,866 78,937 79,663 78,706 * Revised as described in the paragraph of this press release titled "Revision of Previously Issued Financial Statements."

Regeneron Pharmaceuticals, Inc.

CONTACT: Peter Dworkin, Investor Relations, +1-914-345-7640,
peter.dworkin@regeneron.com; or Laura Lindsay, Media Relations,
+1-914-345-7800, laura.lindsay@regeneron.com

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

Och-Ziff Capital Management Group LLC Reports 2009 Third Quarter Results2009 Third Quarter Dividend of $0.07 per Class A Share

NEW YORK, Nov. 3 /PRNewswire-FirstCall/ -- Och-Ziff Capital Management Group LLC (the "Company" or "Och-Ziff") today reported a GAAP Net Loss(1) of $80.0 million, or $1.02 per basic and $1.06 per diluted Class A Share, for the third quarter ended September 30, 2009. The Company also declared a $0.07 per share third quarter cash dividend on its Class A Shares.

Summary Highlights -- Distributable Earnings of $34.2 million, or $0.08 per Adjusted Class A Share, for the 2009 third quarter -- Assets under management of $22.6 billion as of November 1, 2009, compared to $22.1 billion as of October 1, 2009 -- Year-to-date net returns through October 31, 2009 of the OZ Master Fund of 21.3%, the OZ Europe Master Fund of 15.6%, the OZ Asia Master Fund of 28.0% and the OZ Global Special Investments Master Fund of 7.2%

"We continued to generate very strong investment performance across all of our funds during the third quarter and in the month of October," said Daniel Och, Chairman and Chief Executive Officer of Och-Ziff. "We have now surpassed the high water marks for the majority of our capital. Our diversified, multi-strategy approach, which adheres to disciplined investment and risk management processes and the limited use of leverage, has driven the consistency and low volatility of our investment returns since our founding in 1994 and this year has been no different.

"We believe that redemptions have now normalized to historical levels for the hedge fund industry as a whole as market conditions have further improved and investor confidence has increased. We remain confident that as investors re-deploy capital to alternative investments, we will be a leading beneficiary of those flows because of our track record, infrastructure, transparency and the consistency of our model."

(1) References to the Company's GAAP Net Loss throughout this press release refer to the Company's GAAP Net Loss Allocated to Class A Shareholders.

GAAP Net Loss Allocated to Class A Shareholders

For the 2009 third quarter, Och-Ziff reported a GAAP Net Loss of $80.0 million, or $1.02 per basic and $1.06 per diluted Class A Share, compared to a GAAP Net Loss of $69.4 million, or $0.94 per basic and $1.07 per diluted Class A Share, for the 2008 third quarter. The primary drivers of the year-over-year increase were a decline in Management Fees due to lower assets under management and higher compensation expenses, as discussed below.

For the first nine months of 2009, Och-Ziff reported a GAAP Net Loss of $250.2 million, or $3.23 per basic and $3.25 per diluted Class A Share, compared to a GAAP Net Loss of $398.4 million, or $5.37 per basic and diluted Class A Share, for the first nine months of 2008. The primary driver of the year-over-year decrease was an increase in the Net Loss Allocated to Partners' and Others' Interests in Income of Consolidated Subsidiaries resulting from the adoption of SFAS No. 160, partially offset by a decline in Management Fees due to lower assets under management and higher compensation expenses, as discussed below.

The GAAP Net Loss in the 2009 third quarter and first nine months primarily resulted from non-cash expenses of $417.5 million and $1.3 billion, respectively, associated with the Company's reorganization in connection with its initial public offering ("IPO") in November 2007. These expenses are related to the amortization of Och-Ziff Operating Group A Units ("Group A Units"), which represent equity interests in the Company's principal operating subsidiaries (the "Och-Ziff Operating Group") that were issued to the Company's pre-IPO owners in exchange for their pre-IPO interests in those subsidiaries. The Group A Units vest annually over five years until November 2012. Accordingly, the amortization of these expenses is expected to result in a GAAP Net Loss each quarter through the end of 2012. Once vested, the Group A Units may be exchanged on a one-to-one basis for Class A Shares.

Additionally, the GAAP Net Loss in the 2009 third quarter and first nine months were driven by non-cash expenses of $33.5 million and $86.1 million, respectively, for the amortization of equity-based compensation. This expense relates primarily to Class A Restricted Share Units ("RSUs") awarded to all of the Company's employees in connection with the IPO, which vest annually over four years from the closing of the IPO, and subsequent compensation-related grants. Each RSU represents the right to receive one Class A Share upon vesting.

Also contributing to the GAAP Net Loss in the 2009 third quarter and first nine months was compensation expense relating to the accrual of estimated discretionary cash bonuses. These cash bonuses are funded by total annual revenues, which are significantly influenced by incentive income earned by the Company at the end of the year. In the second quarter of 2009, the Company began to accrue for the estimated discretionary cash bonuses that it expected to pay its employees at year-end. The Company did this in order to provide a competitive compensation structure taking into account the high-water marks in its funds, which if not recovered could preclude it from earning any incentive income, and the fact that its funds had generated strong year-to-date investment performance due to the efforts of the Company's employees. In the third quarter of 2009, management revised its annual discretionary bonus compensation methodology for years in which high-water marks are in effect. During the second and third quarter, the Company accrued a total of $31.5 million. Any remaining amount will be expensed in the fourth quarter. The actual cash bonuses paid in the 2009 fourth quarter may vary materially from management's current estimate as discretionary cash bonuses are based on total annual revenues, including any year-end incentive income, which is influenced by, among other things, the Company's funds' investment performance, the level of assets under management, the ability of its funds to continue to satisfy the high-water marks at the end of the year and global economic and market conditions. As the Company has done historically, it will determine the actual amount of annual discretionary cash bonuses in the fourth quarter of this year.

Throughout this press release, the Company presents financial measures that are not prepared in accordance with GAAP. For a discussion of all of the Company's non-GAAP financial measures, please see the discussion "Non-GAAP and Segment Financial Measures" at the end of this press release.

Distributable Earnings (NON-GAAP)

The Company's Distributable Earnings for the 2009 third quarter were $34.2 million, or $0.08 per Adjusted Class A Share, compared with $52.7 million, or $0.13 per Adjusted Class A Share, in the 2008 third quarter. Distributable Earnings for the first nine months of 2009 were $73.9 million, or $0.18 per Adjusted Class A Share, compared with $156.2 million, or $0.39 per Adjusted Class A Share, in the first nine months of 2008. The year-over-year reduction in Distributable Earnings for both periods was primarily attributable to the decline in Management Fees due to lower assets under management and higher compensation expenses (as discussed above), partially offset by lower Non-compensation Expenses and lower taxes.

Distributable Earnings is a non-GAAP financial measure. For reconciliations of Distributable Earnings to the respective GAAP Net Losses for the periods described above, please see Exhibits 3 through 6 of the financial tables that accompany this press release. Additionally, please see the discussion of "Non-GAAP and Segment Financial Measures" at the end of this press release.

Assets Under Management

Och-Ziff's assets under management were $22.3 billion as of September 30, 2009, 2% higher than the $21.9 billion in assets under management as of June 30, 2009 and 29% lower than the $31.2 billion in assets under management as of September 30, 2008. The $8.9 billion year-over-year decrease was driven by net outflows of $9.3 billion, partially offset by performance-related appreciation of $424 million during the period. During the 2009 third quarter, the $358 million increase in assets under management was driven by performance-related appreciation of approximately $1.5 billion, partially offset by net outflows of approximately $1.1 billion. The net outflows for the 2009 third quarter included redemption requests received for June 30, 2009, but excluded redemption requests received for September 30, 2009 as these redemptions were reflected in assets under management as of October 1, 2009.

Assets under management as of October 1, 2009 were $22.1 billion, which reflected redemption requests received for September 30, 2009 (net of October 1, 2009 capital inflows) of approximately $200 million. Virtually all redemptions for a quarter generally are paid on the first day of the month following the quarter in which the redemption notice was submitted, and capital inflows for that month are accepted on the same day. The Company believes that redemptions have now normalized to historical levels for the hedge fund industry as a whole as market conditions have further stabilized and institutional investor confidence has improved.

Estimated assets under management as of November 1, 2009 were $22.6 billion, which reflected November 1, 2009 capital inflows (net of redemption requests received for October 31, 2009) of approximately $400 million, and performance-related appreciation of approximately $100 million.

Assets under management by fund: % Change (1) ---------------------- Sep. 2009 Sep. 2009 Sep. 30, June 30, Sep. 30, vs. vs. (dollars in billions) 2009 2009 2008 Jun. 2009 Sep. 2008 ---- ---- ---- --------- --------- OZ Master Fund 14.8 14.4 18.8 2% -22% OZ Europe Master Fund 3.0 3.0 5.8 0% -49% OZ Asia Master Fund 1.3 1.4 3.2 -5% -59% OZ Global Special Investments Master Fund 2.0 1.9 2.0 2% -2% Other (1)(2) 1.2 1.2 1.4 NM NM (1) Rounding differences may occur. (2) Includes real estate funds, managed accounts and other funds not significant to the Company's assets under management. Investment Performance

In the 2009 third quarter, performance-related appreciation was due primarily to attractive investment opportunities globally in long/short equities, convertible arbitrage, credit and structured credit.

Performance by fund(1): 2009 ------------------------------------------- July August September 3Q YTD ----- ------ --------- ------ ------ OZ Master Fund 3.26% 1.37% 2.51% 7.30% 20.49% OZ Europe Master Fund 2.36% 2.06% 3.28% 7.90% 15.47% OZ Asia Master Fund 9.50% 0.24% 1.70% 11.63% 26.36% OZ Global Special Investments Master Fund 1.55% 0.33% 1.47% 3.38% 7.09% (1) Please see important disclosures on Exhibit 10 of the financial supplement accompanying this press release. ECONOMIC INCOME OF THE OCH-ZIFF FUNDS SEGMENT

The Company conducts substantially all of its business through the Och-Ziff Funds segment, which is currently the Company's only reportable segment. This segment provides management and advisory services to the Company's hedge funds and separately managed accounts.

The measures discussed below are presented on an Economic Income basis. For reconciliations of these segment measures to the respective GAAP measures, please see Exhibits 3 through 6 of the financial tables that accompany this press release. Additionally, please see the discussion of "Non-GAAP and Segment Financial Measures" at the end of this press release.

Total Revenues - Economic Income Basis

Total Revenues for the 2009 third quarter were $89.6 million, a 41% decrease from Total Revenues for the 2008 third quarter of $153.0 million. Management Fees were $86.3 million, 42% lower than Management Fees in the prior year period of $147.7 million.

Total Revenues for the first nine months of 2009 were $267.3 million, a 40% decrease from Total Revenues for the first nine months of 2008 of $446.7 million. Management Fees were $263.2 million, 40% lower than Management Fees in the prior year period of $438.0 million.

Total Revenues were lower year-over-year for both periods as a result of lower Management Fees due to the decline in assets under management, which was driven by performance-related depreciation in the second half of 2008 and investor redemptions in the fourth quarter of 2008 and first half of 2009.

Compensation and Benefits - Economic Income Basis

Compensation and Benefits expenses for the 2009 third quarter totaled $23.5 million, 18% lower than Compensation and Benefits expense for the 2008 third quarter of $28.8 million. The year-over-year decrease was attributable to lower salaries and benefits expense due to lower headcount as assets under management declined. The decrease was also attributable to a lower level of one-time, non-recurring bonus payments as well as lower guaranteed bonus expense due to reduced hiring activity. These factors were partially offset by the $5.9 million expense recorded in the 2009 third quarter for the estimated, annual discretionary cash bonuses the Company anticipates paying its employees in the Och-Ziff Funds segment in the fourth quarter (as discussed above).

Compensation and Benefits expenses for the first nine months of 2009 totaled $86.5 million, 12% higher than Compensation and Benefits expenses for the first nine months of 2008 of $77.0 million. The year-over-year increase for this period was due primarily to the $30.5 million expense recorded in the 2009 second and third quarters for the estimated, annual discretionary cash bonuses the Company anticipates paying its employees in the Och-Ziff Funds segment in the fourth quarter (as discussed above). Partially offsetting this increase was the year-over-year decline in salaries and benefits expense due to lower headcount as assets under management declined. Additionally there was a lower level of one-time, non-recurring bonus payments, as well as lower guaranteed bonus accruals due to reduced hiring activity.

Non-compensation Expenses - Economic Income Basis

Non-compensation Expenses for the 2009 third quarter were $22.3 million, a 27% decrease from Non-compensation Expenses for the 2008 third quarter of $30.5 million. Non-compensation Expenses for the first nine months of 2009 were $68.1 million, a 28% decrease from Non-compensation Expenses for the first nine months of 2008 of $95.0 million.

The decrease in both periods was driven principally by lower professional services fees and lower business development costs. Also contributing to the decrease was lower interest expense on the Company's variable rate borrowings due to the decline in LIBOR. The overall decline in Non-compensation Expenses in both periods was partially offset by higher occupancy expense related to the expansion of leased office space, and higher insurance costs.

Economic Income

Economic Income for the Och-Ziff Funds segment for the 2009 third quarter was $43.8 million, compared with $93.8 million for the 2008 third quarter. Economic Income for the Och-Ziff Funds segment for the first nine months of 2009 was $112.6 million, compared with $274.7 million for the first nine months of 2008.

ECONOMIC INCOME OF THE COMPANY'S OTHER OPERATIONS (NON-GAAP)

The Company's Other Operations are comprised of its real estate business, which manages and provides advisory services to its real estate funds, and investments in new businesses established to expand certain of the Company's private investment platforms. The businesses within Other Operations are currently in early growth stages, and are not included in the results of the Och-Ziff Funds segment.

Economic Income for the Company's Other Operations for the 2009 third quarter was a net loss of $4.3 million, compared with a net loss of $1.6 million for the 2008 third quarter. Economic Income for the Company's Other Operations for the first nine months of 2009 was a net loss of $12.8 million, compared with a net loss of $5.0 million for the first nine months of 2008. The increase in the Economic Income net losses for the 2009 third quarter and first nine months was principally the result of compensation costs associated with the Company's Asia real estate business, as well as the expense recorded during the 2009 second and third quarters for the estimated, annual discretionary cash bonuses the Company anticipates paying the employees in its domestic real estate business in the fourth quarter of 2009 (as discussed above). For the 2009 third quarter and first nine months, this expense was $0.2 million and $0.9 million, respectively. The Economic Income net losses for the 2008 third quarter and first nine months were primarily due to the net losses from the Company's share of the start-up costs associated with its African joint venture, which more than offset the Economic Income earned in the Company's domestic real estate business.

Economic Income for Other Operations as discussed above is a non-GAAP measure. For reconciliations of Economic Income of the Company's Other Operations to the respective GAAP Net Losses for the periods described above, please see Exhibits 3 through 6 of the financial tables that accompany this press release. Additionally, please see the discussion of "Non-GAAP and Segment Financial Measures" at the end of this press release.

ECONOMIC INCOME OF THE TOTAL COMPANY (NON-GAAP)

Economic Income for the Total Company for the 2009 third quarter was $39.5 million, a 57% decrease from Economic Income for the 2008 third quarter of $92.1 million. Economic Income for the Total Company for the first nine months of 2009 was $99.8 million, a 63% decrease from Economic Income for the first nine months of 2008 of $269.7 million.

Economic Income for the Total Company as discussed above is a non-GAAP measure. For reconciliations of Economic Income for the Total Company to the respective GAAP Net Losses for the periods described above, please see Exhibits 3 through 6 of the financial tables that accompany this press release. Additionally, please see the discussion of "Non-GAAP and Segment Financial Measures" at the end of this press release.

CAPITAL

As of September 30, 2009, the number of Class A Shares outstanding was 79,830,851. For purposes of calculating Distributable Earnings per Share, the Company assumes that all Partner Units (as defined below) and RSUs outstanding as of September 30, 2009 have been converted on a one-to-one basis into Class A Shares. For the third quarter and first nine months ended September 30, 2009, the total weighted-average Adjusted Class A Shares outstanding were 403,594,032 and 403,235,945, respectively.

DIVIDEND

The Board of Directors of Och-Ziff declared a 2009 third quarter dividend of $0.07 per Class A Share, to be paid on November 10, 2009 to holders of record at the close of business on October 1, 2009.

For U.S. federal income tax purposes, the dividend will be treated as a partnership distribution. Based on the best information currently available, the Company estimates that when calculating withholding taxes, the entire amount of the 2009 third quarter dividend will be treated as U.S. source dividend income.

Non-U.S. holders of Class A Shares are generally subject to U.S. federal withholding tax at a rate of 30% (subject to reduction by applicable treaty or other exception) on their share of U.S. source dividends and certain other types of U.S. source income realized by the Company. With respect to interest, however, no withholding is generally required if proper certification (on an IRS Form W-8) of a beneficial owner's foreign status has been filed with the withholding agent. In addition, non-U.S. holders must generally provide the withholding agent with a properly completed IRS Form W-8 to obtain any reduction in withholding.

* * * *

Och-Ziff will host a conference call today, November 3, 2009, at 8:30 a.m. Eastern Time to discuss the Company's 2009 third quarter results. The call will be open to the public and can be accessed by dialing 888-713-4214 (callers inside the U.S.) or 617-213-4866 (callers outside the U.S.). The number should be dialed at least ten minutes prior to the start of the call. The passcode for the call will be 72523219. A simultaneous webcast of the call will be available to the public on a listen-only basis on the For Shareholders page of the Company's website at http://www.ozcap.com/.

For those unable to listen to the live broadcast, a replay will be available by dialing 888-286-8010 (callers inside the U.S.) or 617-801-6888 (callers outside the U.S.), passcode 54636117, beginning approximately two hours after the event for two weeks. A webcast replay of the event will also be available on the For Shareholders page of the Company's website.

* * * * Non-GAAP and Segment Financial Measures

In addition to analyzing the Company's results on a GAAP basis, Och-Ziff's management also reviews the Company's results on an "Economic Income basis." Economic Income excludes the adjustments described below that are required for presentation of the Company's results on a GAAP basis, but that management does not consider when evaluating the operating performance of the Company in any given period. Management therefore uses Economic Income as the basis on which it evaluates the performance of the Company's business and makes resource allocation and other operating decisions. In addition, management believes that Economic Income provides a more comparable view of the Company's operating performance from period to period. Management considers it important that investors review the same operating information that it uses.

Economic Income is a measure of pre-tax operating performance that excludes the following from the Company's GAAP Net Loss:

-- income allocations to the Company's partners and Ziff Brothers Investments (the "Ziffs") on their direct interests in the Och-Ziff Operating Group. Management reviews operating performance at the Och-Ziff Operating Group level, where substantially all of the Company's operations are performed, prior to making any income allocations; -- reorganization expenses related to the Company's IPO, equity-based compensation expenses and depreciation and amortization expenses, as management does not consider these non-cash expenses when evaluating operating performance; -- changes in the tax receivable agreement liability and gain on early retirement of debt, as management does not consider these items to be reflective of the Company's operating performance; -- net earnings (losses) on the deferred balances and investments in Och-Ziff funds, as these amounts primarily relate to earnings (losses) on amounts due to the Company's partners and the Ziffs for pre-IPO deferred or reinvested incentive income, and earnings (losses) on amounts due to employees under deferred cash compensation arrangements, and as such are not reflective of the Company's operating performance; and -- amounts related to the consolidated Och-Ziff funds, including the related eliminations of management fees and incentive income, as management reviews the total amount of management fees and incentive income earned from the Och-Ziff funds in relation to total assets under management and fund performance.

In addition, deferred cash compensation expense is recognized in the period in which it is awarded, as management determines the total amount of compensation based on the Company's performance in the year of the award.

Management evaluates Economic Income for the Och-Ziff Funds segment, the Company's one reportable segment under GAAP, and for the Company's Other Operations. Economic Income for Other Operations is a non-GAAP measure that is calculated on the same basis as the methodology that is used to calculate Economic Income for the Och-Ziff Funds segment. Management also evaluates Economic Income for the Total Company, which is a non-GAAP measure that equals the sum of Economic Income for the Och-Ziff Funds segment and Other Operations. In addition, as a result of the adjustments described above, Management Fees, Compensation and Benefits, Non-compensation Expenses and Net Loss (Income) Allocated to Partners' and Others' Interests in Income of Consolidated Subsidiaries are presented on an Economic Income basis for Other Operations and the Total Company and are also Non-GAAP measures. No adjustments to the GAAP basis have been made for Incentive Income, Other Revenues and Net Losses on Joint Ventures. For reconciliations of these Non-GAAP measures to the respective GAAP measures, please see Exhibits 3 through 6 of the financial tables that accompany this press release.

Distributable Earnings is a non-GAAP measure of after-tax operating performance and equals Economic Income for the Total Company (as defined above) less Adjusted Income Taxes. Adjusted Income Taxes are estimated assuming the conversion of all outstanding Partner Units into Class A Shares, on a one-to-one basis. Therefore, all income (loss) of the Och-Ziff Operating Group allocated to the partners is treated as if it were allocated to Och-Ziff Capital Management Group LLC. Partner Units represent interests in the Och-Ziff Operating Group held by the partners and the Ziffs, including the Group A Units and other non-equity interests. Distributable Earnings per Share is equal to Distributable Earnings divided by the weighted-average number of Adjusted Class A Shares. Adjusted Class A Shares are determined assuming all Partner Units and RSUs were converted on a one-to-one basis into Class A Shares. Management uses Distributable Earnings, among other financial data, to determine the earnings available to distribute as dividends to holders of the Company's Class A Shares and to the Company's partners and the Ziffs with respect to their Partner Units.

The Company's non-GAAP financial measures should not be considered as alternatives to the Company's GAAP Net Loss or cash flow from operations, or as indicative of liquidity or the cash available to fund operations.

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are included in the tables attached to this press release.

* * * * Forward-Looking Statements

The information contained in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of the Company with respect to, among other things, its future financial or business performance, events, strategies or expectations, including but not limited to its ability to generate returns and preserve capital and its ability to expand its investment platforms. Such forward-looking statements are generally identified by the use of words such as "outlook," "believe," "expect," "potential," "continue," "may," "will," "should," "could," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," "opportunity," "assume," "remain," "sustain," "achieve" or the negative version of those words or other comparable words.

Any forward-looking statements contained in this press release are based upon historical performance of the Company and its subsidiaries and on current plans, estimates and expectations of the Company and its subsidiaries. The inclusion of this forward-looking information should not be regarded as a representation by the Company or any other person that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties, including but not limited to global and domestic market and business conditions, the Company's ability to successfully compete for fund investors, talent and investment opportunities, successful formulation and execution of its business and growth strategies, the Company's ability to appropriately manage conflicts of interest, and tax and other regulatory factors relevant to the Company's structure and status as a public company, as well as assumptions relating to the Company's operations, financial results, financial condition, business prospects, growth strategy and liquidity.

If one or more of these or other risks or uncertainties materialize, or if the Company's assumptions prove to be incorrect, the Company's actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and risks that are included in the Company's filings with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2008. Any forward-looking statements contained in this press release are made only as of the date hereof. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

This press release does not constitute an offer of any Och-Ziff fund. * * * * About Och-Ziff Capital Management Group LLC

Och-Ziff Capital Management Group LLC is one of the world's largest institutional alternative asset managers with offices in New York, London, Hong Kong, Tokyo, Bangalore and Beijing. Och-Ziff's funds seek to deliver consistent, positive, risk-adjusted returns throughout market cycles, with a strong focus on capital preservation. Och-Ziff's multi-strategy approach combines global investment strategies, including merger arbitrage, convertible and derivative arbitrage, equity restructuring, credit and distressed investments, private investments and real estate.

As of November 1, 2009, Och-Ziff had approximately $22.6 billion in assets under management with approximately 600 investor relationships. For more information, please visit http://www.ozcap.com/.

Exhibit 1 OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC Consolidated Statements of Operations (Unaudited) (dollars in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenues Management fees $88,127 $148,976 $268,598 $441,770 Incentive income 3,071 4,373 3,336 5,483 Other revenues 355 925 908 3,179 Income of consolidated Och-Ziff funds 10,127 2,768 21,629 7,654 ------ ----- ------ ----- Total Revenues 101,680 157,042 294,471 458,086 ------- ------- ------- ------- Expenses Compensation and benefits 64,074 50,377 191,975 155,388 Allocations to non- equity partner interests 8,052 (3,039) 12,627 (865) Reorganization expenses 417,486 425,585 1,262,171 1,276,753 Profit sharing 663 (305) 954 (1,736) Interest expense 2,168 7,118 10,823 24,791 General, administrative and other 40,687 24,732 84,069 83,771 Expenses of consolidated Och-Ziff funds 880 1,043 2,776 2,400 --- ----- ----- ----- Total Expenses 534,010 505,511 1,565,395 1,540,502 ------- ------- --------- --------- Other Income (Loss) Net earnings (losses) on deferred balances 20,840 (18,776) 24,270 (18,975) Net gains (losses) on investments in Och-Ziff funds and joint ventures 730 (2,049) 1,036 (6,020) Gain on early retirement of debt - - 2,013 - Net gains (losses) of consolidated Och-Ziff funds (47) 1,290 (145) 787 --- ----- ---- --- Total Other Income (Loss) 21,523 (19,535) 27,174 (24,208) ------ ------- ------ ------- Loss before Income Taxes (410,807) (368,004) (1,243,750) (1,106,624) Income taxes (20,889) 14,735 (17,611) 22,696 ------- ------ ------- ------ Consolidated Net Loss $(389,918) $(382,739) $(1,226,139) $(1,129,320) ========= ========= =========== =========== Net Loss Allocated to Partners' and Others' Interests in Income of Consolidated Subsidiaries $(309,891) $(313,295) $(975,945) $(730,957) ========= ========= ========= ========= Net Loss Allocated to Class A Shareholders $(80,027) $(69,444) $(250,194) $(398,363) ======== ======== ========= ========= Net Loss per Class A Share Basic $(1.02) $(0.94) $(3.23) $(5.37) ====== ====== ====== ====== Diluted $(1.06) $(1.07) $(3.25) $(5.37) ====== ====== ====== ====== Weighted-Average Class A Shares Outstanding Basic (1) 78,818,314 74,138,572 77,398,416 74,138,572 ========== ========== ========== ========== Diluted 387,874,793 385,238,096 387,719,637 74,138,572 =========== =========== =========== ========== (1) Includes fully-vested RSUs that have not been exchanged into Class A Shares as of the end of the period. Exhibit 2 OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC Economic Income Summary (Unaudited) (dollars in thousands) Three Months Ended September 30, 2009 ------------------------------------- Other Total Och-Ziff Operations Company Economic Income Basis Funds Segment (1) (Non-GAAP) (2) (Non-GAAP) (2) --------------------- ----------------- -------------- -------------- Management fees $86,262 $1,312 $87,574 Incentive income 3,071 - 3,071 Other revenues 268 87 355 Total Economic Income revenues 89,601 1,399 91,000 Compensation and benefits 23,539 4,578 28,117 Non-compensation expenses 22,255 811 23,066 Total Economic Income expenses 45,794 5,389 51,183 Net losses on joint ventures (3) - (244) (244) Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries (4) - (47) (47) Economic Income 43,807 (4,281) 39,526 Three Months Ended September 30, 2008 ------------------------------------- Other Total Och-Ziff Operations Company Economic Income Basis Funds Segment (1) (Non-GAAP) (2) (Non-GAAP) (2) --------------------- ----------------- -------------- -------------- Management fees $147,747 $1,312 $149,059 Incentive income 4,373 - 4,373 Other revenues 919 6 925 Total Economic Income revenues 153,039 1,318 154,357 Compensation and benefits 28,813 1,015 29,828 Non-compensation expenses 30,463 283 30,746 Total Economic Income expenses 59,276 1,298 60,574 Net losses on joint ventures (3) - (1,544) (1,544) Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries (4) - (107) (107) Economic Income 93,763 (1,631) 92,132 Nine Months Ended September 30, 2009 ------------------------------------ Other Total Och-Ziff Operations Company Economic Income Basis Funds Segment (1) (Non-GAAP) (2) (Non-GAAP) (2) --------------------- ----------------- -------------- -------------- Management fees $263,209 $3,953 $267,162 Incentive income 3,336 - 3,336 Other revenues 713 195 908 Total Economic Income revenues 267,258 4,148 271,406 Compensation and benefits 86,502 12,995 99,497 Non-compensation expenses 68,149 2,717 70,866 Total Economic Income expenses 154,651 15,712 170,363 Net losses on joint ventures (3) - (1,236) (1,236) Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries (4) - 28 28 Economic Income 112,607 (12,772) 99,835 Nine Months Ended September 30, 2008 ------------------------------------ Other Total Och-Ziff Operations Company Economic Income Basis Funds Segment (1) (Non-GAAP) (2) (Non-GAAP) (2) --------------------- ----------------- -------------- -------------- Management fees $438,034 $3,934 $441,968 Incentive income 5,483 - 5,483 Other revenues 3,149 30 3,179 Total Economic Income revenues 446,666 3,964 450,630 Compensation and benefits 76,989 1,674 78,663 Non-compensation expenses 94,967 632 95,599 Total Economic Income expenses 171,956 2,306 174,262 Net losses on joint ventures (3) - (6,144) (6,144) Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries (4) - (524) (524) Economic Income 274,710 (5,010) 269,700 (1) The Och-Ziff Funds segment is the Company's only reportable segment. Management uses Economic Income to evaluate the financial performance of and to make operating decisions for the segment. For reconciliations of these segment measures to the nearest U.S. GAAP measures, see Exhibits 3 through 6. (2) Each of the measures below is a non-GAAP financial measure, with the exception of incentive income, other revenues and net losses on joint ventures, for which no adjustments to the U.S. GAAP basis have been made. Management calculates non-GAAP financial measures on an Economic Income basis for the Company's Other Operations and for the Company as a whole to assess the financial performance of the Company's entire business. For reconciliations of these non-GAAP measures to the nearest U.S. GAAP measures, see Exhibits 3 through 6. (3) Represents the Company's losses in joint ventures established to expand certain of the Company's private investments platforms. (4) Represents the residual interests in the domestic real estate management business not owned by the Company. Exhibit 3 OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC Reconciliation of Non-GAAP and Segment Financial Measures to U.S. GAAP Measures (dollars in thousands, except per share amount) OCH-ZIFF FUNDS SEGMENT ---------------------- Reconciling Adjustments (1) --------------------------- Three Months Ended Economic U.S. September 30, Income Funds Other GAAP 2009 Basis (2) Consolidation Adjustments Basis -------------- --------- ------------- ----------- ----- Management fees $86,262 $(56) $609 (a) $86,815 Incentive income 3,071 - - 3,071 Other revenues 268 - - 268 Income of consolidated Och-Ziff funds - - - - Total revenues 89,601 (56) 609 90,154 Compensation and benefits 23,539 - 29,197 (b) (c) 52,736 Allocations to non-equity partner interests - - 8,052 (d) 8,052 Reorganization expenses - - 417,486 (e) 417,486 Profit sharing - - 663 (f) 663 Interest expense 2,168 - - 2,168 General, administrative and other 20,087 - 19,600 (a) (g) 39,687 Expenses of consolidated Och-Ziff funds - 11 - 11 Total expenses 45,794 11 474,998 520,803 Net earnings (losses) on deferred balances and investments in Och-Ziff funds and joint ventures - - 21,814 (h) 21,814 Net gains (losses) of consolidated Och-Ziff funds - (57) - (57) Income taxes - - (21,077) (g) (21,077) Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries - 124 318,776 (i) 318,900 Net Income (Loss) Allocated to Class A Shareholders 43,807 - (112,722) (68,915) OTHER OPERATIONS ---------------- Reconciling Adjustments (1) --------------------------- Three Months Economic Ended Income U.S. September 30, Basis Funds Other GAAP 2009 (Non-GAAP) (3) Consolidation Adjustments Basis -------------- -------------- ------------- ----------- ----- Management fees $1,312 $- $- $1,312 Incentive income - - - - Other revenues 87 - - 87 Income of consolidated Och-Ziff funds - 10,127 - 10,127 Total revenues 1,399 10,127 - 11,526 Compensation and benefits 4,578 - 6,760 (c) 11,338 Allocations to non-equity partner interests - - - - Reorganization expenses - - - - Profit sharing - - - - Interest expense - - - - General, administrative and other 811 - 189 (g) 1,000 Expenses of consolidated Och-Ziff funds - 869 - 869 Total expenses 5,389 869 6,949 13,207 Net earnings (losses) on deferred balances and investments in Och-Ziff funds and joint ventures (244) (99) 99 (h) (244) Net gains (losses) of consolidated Och-Ziff funds - 10 - 10 Income taxes - - 188 (g) 188 Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries (47) (9,169) 207 (i) (9,009) Net Income (Loss) Allocated to Class A Shareholders (4,281) - (6,831) (11,112) TOTAL COMPANY ------------- Economic Income Basis U.S. GAAP Three Months Ended September 30, 2009 (Non-GAAP) (3) Basis ------------------------------------- -------------- --------- Management fees $87,574 $88,127 Incentive income 3,071 3,071 Other revenues 355 355 Income of consolidated Och-Ziff funds - 10,127 Total revenues 91,000 101,680 Compensation and benefits 28,117 64,074 Allocations to non-equity partner interests - 8,052 Reorganization expenses - 417,486 Profit sharing - 663 Interest expense 2,168 2,168 General, administrative and other 20,898 40,687 Expenses of consolidated Och-Ziff funds - 880 Total expenses 51,183 534,010 Net earnings (losses) on deferred balances and investments in Och-Ziff funds and joint ventures (244) 21,570 Net gains (losses) of consolidated Och-Ziff funds - (47) Income taxes - (20,889) Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries (47) 309,891 Net Income (Loss) Allocated to Class A Shareholders 39,526 (80,027) Adjusted Income Taxes - Non-GAAP (4) (5,357) ------ Distributable Earnings - Non-GAAP $34,169 ======= Weighted-Average Class A Shares Outstanding 78,818,314 Weighted-Average Partner Units 309,074,414 Weighted-Average Class A Restricted Share Units (RSUs) 15,701,304 ---------- Weighted-Average Adjusted Class A Shares 403,594,032 =========== Distributable Earnings Per Adjusted Class A Share - Non-GAAP 0.08 ==== (1) See Exhibit 7 for a description of the adjustments made to arrive at Total Company U.S. GAAP Net Loss. (2) The Och-Ziff Funds segment is the Company's only reportable segment. Management uses Economic Income to evaluate the financial performance of and to make operating decisions for the segment. (3) Each of the measures below is a non-GAAP financial measure, with the exception of incentive income, other revenues and net losses on joint ventures, for which no adjustments to the U.S. GAAP basis have been made. Management calculates non-GAAP financial measures on an Economic Income basis for the Company's Other Operations and for the Company as a whole to assess the financial performance of the Company's entire business. (4) Presents an estimate of income tax expense by assuming the conversion of all outstanding Partner Units into Class A Shares, on a one-to-one basis. Therefore, all income (loss) of the Och-Ziff Operating Group allocated to the partners is treated as if it were allocated to Och- Ziff Capital Management Group LLC. Exhibit 4 OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC Reconciliation of Non-GAAP and Segment Financial Measures to U.S. GAAP Measures (dollars in thousands, except per share amount) OCH-ZIFF FUNDS SEGMENT ---------------------- Reconciling Adjustments (1) --------------------------- Three Months Ended Economic U.S. September Income Funds Other GAAP 30, 2008 Basis (2) Consolidation Adjustments Basis ------------ --------- ------------- ----------- ----- Management fees $147,747 $(83) $- $147,664 Incentive income 4,373 - - 4,373 Other revenues 919 - - 919 Income of consolidated Och-Ziff funds - 72 - 72 Total revenues 153,039 (11) - 153,028 Compensation and benefits 28,813 - 19,686 (b) (c) 48,499 Allocations to non- equity partner interests - - (3,039) (d) (3,039) Reorganization expenses - - 425,585 (e) 425,585 Profit sharing - - (305) (f) (305) Interest expense 7,118 - - 7,118 General, administrative and other 23,345 - 915 (g) 24,260 Expenses of consolidated Och-Ziff funds - 146 - 146 Total expenses 59,276 146 442,842 502,264 Net earnings (losses) on deferred balances and investments in Och-Ziff funds and joint ventures - - (19,281) (h) (19,281) Net gains (losses) of consolidated Och-Ziff funds (569) - (569) Income taxes - - 14,716 (g) 14,716 Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries - 726 316,445 (i) 317,171 Net Income (Loss) Allocated to Class A Shareholders 93,763 - (160,394) (66,631) OTHER OPERATIONS ---------------- Reconciling Adjustments (1) --------------------------- Three Months Economic Ended Income U.S. September Basis Funds Other GAAP 30, 2008 (Non-GAAP) (3) Consolidation Adjustments Basis ------------ -------------- ------------- ----------- ----- Management fees $1,312 $- $- $1,312 Incentive income - - - - Other revenues 6 - - 6 Income of consolidated Och-Ziff funds - 2,696 - 2,696 Total revenues 1,318 2,696 - 4,014 Compensation and benefits 1,015 - 863 (c) 1,878 Allocations to non- equity partner interests - - - - Reorganization expenses - - - - Profit sharing - - - - Interest expense - - - - General, administrative and other 283 - 189 (g) 472 Expenses of consolidated Och-Ziff funds - 897 - 897 Total expenses 1,298 897 1,052 3,247 Net earnings (losses) on deferred balances and investments in Och-Ziff funds and joint ventures (1,544) (36) 36 (h) (1,544) Net gains (losses) of consolidated Och-Ziff funds - 1,859 - 1,859 Income taxes - - 19 (g) 19 Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries (107) (3,622) (147) (i) (3,876) Net Income (Loss) Allocated to Class A Shareholders (1,631) - (1,182) (2,813) TOTAL COMPANY ------------- Economic Income Basis U.S. GAAP Three Months Ended September 30, 2008 (Non-GAAP) (3) Basis ------------------------------------- -------------- --------- Management fees $149,059 $148,976 Incentive income 4,373 4,373 Other revenues 925 925 Income of consolidated Och-Ziff funds - 2,768 Total revenues 154,357 157,042 Compensation and benefits 29,828 50,377 Allocations to non-equity partner interests - (3,039) Reorganization expenses - 425,585 Profit sharing - (305) Interest expense 7,118 7,118 General, administrative and other 23,628 24,732 Expenses of consolidated Och-Ziff funds - 1,043 Total expenses 60,574 505,511 Net earnings (losses) on deferred balances and investments in Och-Ziff funds and joint ventures (1,544) (20,825) Net gains (losses) of consolidated Och-Ziff funds - 1,290 Income taxes - 14,735 Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries (107) 313,295 Net Income (Loss) Allocated to Class A Shareholders 92,132 (69,444) Adjusted Income Taxes - Non-GAAP (4) (39,452) ------- Distributable Earnings - Non-GAAP $52,680 ======= Weighted-Average Class A Shares Outstanding 74,138,572 Weighted-Average Partner Units 311,099,524 Weighted-Average Class A Restricted Share Units (RSUs) 15,132,928 ---------- Weighted-Average Adjusted Class A Shares 400,371,024 =========== Distributable Earnings Per Adjusted Class A Share - Non-GAAP 0.13 ==== (1) See Exhibit 7 for a description of the adjustments made to arrive at Total Company U.S. GAAP Net Loss. (2) The Och-Ziff Funds segment is the Company's only reportable segment. Management uses Economic Income to evaluate the financial performance of and to make operating decisions for the segment. (3) Each of the measures below is a non-GAAP financial measure, with the exception of incentive income, other revenues and net losses on joint ventures, for which no adjustments to the U.S. GAAP basis have been made. Management calculates non-GAAP financial measures on an Economic Income basis for the Company's Other Operations and for the Company as a whole to assess the financial performance of the Company's entire business. (4) Presents an estimate of income tax expense by assuming the conversion of all outstanding Partner Units into Class A Shares, on a one-to-one basis. Therefore, all income (loss) of the Och-Ziff Operating Group allocated to the partners is treated as if it were allocated to Och- Ziff Capital Management Group LLC. Exhibit 5 OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC Reconciliation of Non-GAAP and Segment Financial Measures to U.S. GAAP Measures (dollars in thousands, except per share amount) OCH-ZIFF FUNDS SEGMENT ---------------------- Reconciling Adjustments (1) --------------------------- Nine Months Ended Economic U.S. September Income Funds Other GAAP 30, 2009 Basis (2) Consolidation Adjustments Basis ------------ --------- ------------- ----------- ----- Management fees $263,209 $(167) $1,622 (a) $264,664 Incentive income 3,336 - - 3,336 Other revenues 713 - - 713 Income of consolidated Och-Ziff funds - - - - Total revenues 267,258 (167) 1,622 268,713 Compensation and benefits 86,502 - 74,665 (b) (c) 161,167 Allocations to non- equity partner interests - - 12,627 (d) 12,627 Reorganization expenses - - 1,262,171 (e) 1,262,171 Profit sharing - - 954 (f) 954 Interest expense 10,823 - - 10,823 General, administrative and other 57,326 - 23,466 (a) (g) 80,792 Expenses of consolidated Och-Ziff funds - 19 - 19 Total expenses 154,651 19 1,373,883 1,528,553 Net earnings (losses) on deferred balances and investments in Och-Ziff funds and joint ventures - - 26,542 (h) 26,542 Gain on early retirement of debt - - 2,013 (g) 2,013 Net gains (losses) of consolidated Och-Ziff funds - (1,744) - (1,744) Income taxes - - (17,902) (g) (17,902) Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries - 1,930 994,260 (i) 996,190 Net Income (Loss) Allocated to Class A Shareholders 112,607 - (331,544) (218,937) OTHER OPERATIONS ---------------- Reconciling Adjustments (1) --------------------------- Nine Months Economic Ended Income U.S. September 30, Basis Funds Other GAAP 2009 (Non-GAAP) (3) Consolidation Adjustments Basis -------------- -------------- ------------- ----------- ----- Management fees $3,953 $(19) $- $3,934 Incentive income - - - - Other revenues 195 - - 195 Income of consolidated Och-Ziff funds - 21,629 - 21,629 Total revenues 4,148 21,610 - 25,758 Compensation and benefits 12,995 - 17,813 (c) 30,808 Allocations to non-equity partner interests - - - - Reorganization expenses - - - - Profit sharing - - - - Interest expense - - - - General, administrative and other 2,717 - 560 (g) 3,277 Expenses of consolidated Och-Ziff funds - 2,757 - 2,757 Total expenses 15,712 2,757 18,373 36,842 Net earnings (losses) on deferred balances and investments in Och-Ziff funds and joint ventures (1,236) (216) 216 (h) (1,236) Gain on early retirement of debt - - - - Net gains (losses) of consolidated Och-Ziff funds - 1,599 - 1,599 Income taxes - - 291 (g) 291 Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries 28 (20,236) (37) (i) (20,245) Net Income (Loss) Allocated to Class A Shareholders (12,772) - (18,485) (31,257) TOTAL COMPANY ------------- Economic Income Basis U.S. GAAP Nine Months Ended September 30, 2009 (Non-GAAP) (3) Basis ------------------------------------- -------------- --------- Management fees $267,162 $268,598 Incentive income 3,336 3,336 Other revenues 908 908 Income of consolidated Och-Ziff funds - 21,629 Total revenues 271,406 294,471 Compensation and benefits 99,497 191,975 Allocations to non-equity partner interests - 12,627 Reorganization expenses - 1,262,171 Profit sharing - 954 Interest expense 10,823 10,823 General, administrative and other 60,043 84,069 Expenses of consolidated Och-Ziff funds - 2,776 Total expenses 170,363 1,565,395 Net earnings (losses) on deferred balances and investments in Och-Ziff funds and joint ventures (1,236) 25,306 Gain on early retirement of debt - 2,013 Net gains (losses) of consolidated Och- Ziff funds - (145) Income taxes - (17,611) Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries 28 975,945 Net Income (Loss) Allocated to Class A Shareholders 99,835 (250,194) Adjusted Income Taxes - Non-GAAP (4) (25,898) ------- Distributable Earnings - Non-GAAP $73,937 ======= Weighted-Average Class A Shares Outstanding 77,398,416 Weighted-Average Partner Units 310,327,265 Weighted-Average Class A Restricted Share Units (RSUs) 15,510,264 ---------- Weighted-Average Adjusted Class A Shares 403,235,945 =========== Distributable Earnings Per Adjusted Class A Share - Non-GAAP 0.18 ==== (1) See Exhibit 7 for a description of the adjustments made to arrive at Total Company U.S. GAAP Net Loss. (2) The Och-Ziff Funds segment is the Company's only reportable segment. Management uses Economic Income to evaluate the financial performance of and to make operating decisions for the segment. (3) Each of the measures below is a non-GAAP financial measure, with the exception of incentive income, other revenues and net losses on joint ventures, for which no adjustments to the U.S. GAAP basis have been made. Management calculates non-GAAP financial measures on an Economic Income basis for the Company's Other Operations and for the Company as a whole to assess the financial performance of the Company's entire business. (4) Presents an estimate of income tax expense by assuming the conversion of all outstanding Partner Units into Class A Shares, on a one-to-one basis. Therefore, all income (loss) of the Och-Ziff Operating Group allocated to the partners is treated as if it were allocated to Och- Ziff Capital Management Group LLC. Exhibit 6 OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC Reconciliation of Non-GAAP and Segment Financial Measures to U.S. GAAP Measures (dollars in thousands, except per share amount) OCH-ZIFF FUNDS SEGMENT ---------------------- Reconciling Adjustments (1) --------------------------- Nine Months Ended Economic U.S. September Income Funds GAAP 30, 2008 Basis (2) Consolidation Other Adjustments Basis ------------ --------- ------------- ----------------- ----- Management fees $438,034 $(198) $- $437,836 Incentive income 5,483 - - 5,483 Other revenues 3,149 - - 3,149 Income of consolidated Och-Ziff funds - 106 - 106 Total revenues 446,666 (92) - 446,574 Compensation and benefits 76,989 - 75,430 (b) (c) 152,419 Allocations to non- equity partner interests - - (865) (d) (865) Reorganization expenses - - 1,276,753 (e) 1,276,753 Profit sharing - - (1,736) (f) (1,736) Interest expense 24,791 - - 24,791 General, administrative and other 70,176 - 12,401 (g) 82,577 Expenses of consolidated Och-Ziff funds - 509 - 509 Total expenses 171,956 509 1,361,983 1,534,448 Net earnings (losses) on deferred balances and investments in Och-Ziff funds and joint ventures - - (18,851) (h) (18,851) Net gains (losses) of consolidated Och-Ziff funds - (1,974) - (1,974) Income taxes - - 22,470 (g) 22,470 Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries - 2,575 737,837 (i) 740,412 Net Income (Loss) Allocated to Class A Shareholders 274,710 - (665,467) (390,757) OTHER OPERATIONS ---------------- Reconciling Adjustments (1) --------------------------- Nine Months Economic Ended Income U.S. September 30, Basis Funds Other GAAP 2008 (Non-GAAP) (3) Consolidation Adjustments Basis -------------- -------------- ------------- ----------- ----- Management fees $3,934 $- $- $3,934 Incentive income - - - - Other revenues 30 - - 30 Income of consolidated Och-Ziff funds - 7,548 - 7,548 Total revenues 3,964 7,548 - 11,512 Compensation and benefits 1,674 - 1,295 (c) 2,969 Allocations to non-equity partner interests - - - - Reorganization expenses - - - - Profit sharing - - - - Interest expense - - - - General, administrative and other 632 - 562 (g) 1,194 Expenses of consolidated Och-Ziff funds - 1,891 - 1,891 Total expenses 2,306 1,891 1,857 6,054 Net earnings (losses) on deferred balances and investments in Och-Ziff funds and joint ventures (6,144) (84) 84 (h) (6,144) Net gains (losses) of consolidated Och-Ziff funds - 2,761 - 2,761 Income taxes - - 226 (g) 226 Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries (524) (8,334) (597) (i) (9,455) Net Income (Loss) Allocated to Class A Shareholders (5,010) - (2,596) (7,606) TOTAL COMPANY ------------- Economic Income Basis U.S. GAAP Nine Months Ended September 30, 2008 (Non-GAAP) (3) Basis ------------------------------------- -------------- --------- Management fees $441,968 $441,770 Incentive income 5,483 5,483 Other revenues 3,179 3,179 Income of consolidated Och-Ziff funds - 7,654 Total revenues 450,630 458,086 Compensation and benefits 78,663 155,388 Allocations to non-equity partner interests - (865) Reorganization expenses - 1,276,753 Profit sharing - (1,736) Interest expense 24,791 24,791 General, administrative and other 70,808 83,771 Expenses of consolidated Och-Ziff funds - 2,400 Total expenses 174,262 1,540,502 Net earnings (losses) on deferred balances and investments in Och-Ziff funds and joint ventures (6,144) (24,995) Net gains (losses) of consolidated Och- Ziff funds - 787 Income taxes - 22,696 Net loss (income) allocated to partners' and others' interests in income of consolidated subsidiaries (524) 730,957 Net Income (Loss) Allocated to Class A Shareholders 269,700 (398,363) Adjusted Income Taxes - Non-GAAP (4) (113,464) -------- Distributable Earnings - Non-GAAP $156,236 ======== Weighted-Average Class A Shares Outstanding 74,138,572 Weighted-Average Partner Units 311,099,524 Weighted-Average Class A Restricted Share Units (RSUs) 14,765,768 ---------- Weighted-Average Adjusted Class A Shares 400,003,864 =========== Distributable Earnings Per Adjusted Class A Share - Non-GAAP 0.39 ==== (1) See Exhibit 7 for a description of the adjustments made to arrive at Total Company U.S. GAAP Net Loss. (2) The Och-Ziff Funds segment is the Company's only reportable segment. Management uses Economic Income to evaluate the financial performance of and to make operating decisions for the segment. (3) Each of the measures below is a non-GAAP financial measure, with the exception of incentive income, other revenues and net losses on joint ventures, for which no adjustments to the U.S. GAAP basis have been made. Management calculates non-GAAP financial measures on an Economic Income basis for the Company's Other Operations and for the Company as a whole to assess the financial performance of the Company's entire business. (4) Presents an estimate of income tax expense by assuming the conversion of all outstanding Partner Units into Class A Shares, on a one-to-one basis. Therefore, all income (loss) of the Och-Ziff Operating Group allocated to the partners is treated as if it were allocated to Och- Ziff Capital Management Group LLC. Exhibit 7 OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC Description of Adjustments Made to Reconcile Economic Income to U.S. GAAP Net Loss Funds Consolidation Economic Income excludes the impacts of consolidated Och-Ziff funds, including the related eliminations. Other Adjustments (a) Economic Income presents management fees net of recurring placement and related service fees on assets under management, as management considers these fees a reduction in management fees, not an expense. (b) Economic Income recognizes deferred cash compensation expense in the period in which it is awarded, as management determines the total amount of compensation based on the Company's performance in the year of the award. (c) Economic Income excludes equity-based compensation expense, as management does not consider these non-cash expenses when evaluating the performance of the Company. The Company includes the number of shares granted in its Adjusted Class A Share count when determining Distributable Earnings Per Share. (d) Economic Income excludes allocations to non-equity partner interests. Management reviewed the performance of the Company before it made any allocations to the Company's non-equity founding partners for periods prior to the Reorganization. For these periods, allocations to the founding partners, other than Mr. Och, were treated as expenses for U.S. GAAP purposes. Following the Reorganization, only allocations to the founding partners, other than Mr. Och, related to earnings on deferred balances are incurred and these allocations are excluded from Economic Income. (e) Economic Income excludes Reorganization expenses, which are non-cash expenses directly attributable to the reclassification of interests held by the founding partners and the Ziffs prior to the Reorganization as Och-Ziff Operating Group A Units. (f) Economic Income excludes the profit sharing expense related to the Ziffs' interest in the Company. Management reviewed the performance of the Company before it made any allocations to the Ziffs for periods prior to the Reorganization. Following the Reorganization, only profit sharing expense related to the allocation of earnings on deferred balances are incurred and these allocations are excluded from Economic Income. (g) Economic Income excludes depreciation, changes in the tax receivable agreement liability, and gain on early retirement of debt, as management does not consider these items when evaluating the performance of the Company. Economic Income also excludes income taxes as it is a measure of pre-tax performance. (h) Economic Income excludes the net earnings (losses) on the deferred balances and investments in Och-Ziff funds, as these amounts primarily relate to earnings (losses) on amounts due to affiliates for deferred balances, and earnings (losses) on amounts due to employees under deferred cash compensation arrangements. (i) Economic Income excludes amounts allocated to the partners and the Ziffs on their interests in the Och-Ziff Operating Group, as management reviews the performance of the Company at the Och-Ziff Operating Group level. The Company conducts substantially all of its activities through the Och-Ziff Operating Group. Additionally, Economic Income excludes amounts allocated to investors in consolidated Och-Ziff funds, as Economic Income excludes the impacts of consolidated Och-Ziff funds. Exhibit 8 OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC Financial Supplement (Unaudited) (dollars in millions) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 2009 2009 ---- ---- Total Assets Under Management (1) Beginning of Period Balance $21,920 $26,955 Net Flows (1,136) (8,358) Appreciation (Depreciation) (2) 1,494 3,681 ----- ----- End of Period Balance $22,278 $22,278 ======= ======= Total Assets Under Management by Fund OZ Master Fund $14,773 OZ Europe Master Fund 2,958 OZ Asia Master Fund 1,327 OZ Global Special Investments Master Fund 1,980 Och-Ziff Funds - Net Returns (3) OZ Master Fund 7.3% 20.5% OZ Europe Master Fund 7.9% 15.5% OZ Asia Master Fund 11.6% 26.4% OZ Global Special Investments Master Fund 3.4% 7.1% Year Ended December 31, ----------------------- 2008 2007 2006 2005 ---- ---- ---- ---- Total Assets Under Management (1) Beginning of Period Balance $33,387 $22,621 $15,627 $11,251 Net Flows (722) 7,591 4,135 3,117 Appreciation (Depreciation) (2) (5,710) 3,175 2,859 1,259 ------ ----- ----- ----- End of Period Balance $26,955 $33,387 $22,621 $15,627 ======= ======= ======= ======= Total Assets Under Management by Fund OZ Master Fund $16,396 $19,771 $15,449 $12,001 OZ Europe Master Fund 5,084 6,416 3,481 1,887 OZ Asia Master Fund 2,439 3,852 2,332 605 OZ Global Special Investments Master Fund 1,910 2,082 195 43 Och-Ziff Funds - Net Returns (3) OZ Master Fund -15.9% 11.5% 14.8% 8.8% OZ Europe Master Fund -17.4% 14.8% 22.3% 15.7% OZ Asia Master Fund -30.9% 12.2% 14.0% 14.2% OZ Global Special Investments Master Fund -8.3% 17.2% 13.9% 0.2% (1) Includes deferred incentive income receivable from the offshore funds and amounts invested by the Company, its partners and certain other affiliated parties for which the Company charged no management fees and received no incentive income for the periods presented. Amounts presented in this table are not the amounts used to calculate Management Fees and Incentive Income for the respective periods. (2) Appreciation (depreciation) reflects the aggregate net capital appreciation (depreciation) for the entire period and is presented on a total return basis, net of all fees and expenses (except incentive income on certain unrealized private investments that could reduce returns on these investments at the time of realization), and includes the reinvestment of all dividends and income. Management Fees and Incentive Income vary by product. Past performance is no guarantee of future results. (3) Reflects a composite of the monthly return and year-to-date return for the feeder funds comprising each of the Company's most significant master funds and is presented on a total return basis, net of all fees and expenses of the relevant fund (except incentive income on certain unrealized special investments that could reduce returns at the time of realization), and includes the reinvestment of all dividends and income. Performance includes realized and unrealized gains and losses attributable to certain private and initial public offering investments that are not allocated to all investors in the funds. Investors that do not participate in such investments or that pay different fees may experience materially different returns. Past performance is no guarantee of future results. Exhibit 9 OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC Returns of OZ Master Fund During Negative Return Months of S&P 500 Index (Unaudited) Total Return of Total Return of OZ Number of S&P 500 Master Fund Months of Negative During Negative During Negative Year Returns of S&P 500 Return Months Return Months of S&P 500 ---- ------------------ ------------- ------------------------ 1994 3 -8.5% 1.7% 1995 1 -0.4% 0.1% 1996 2 -6.4% 3.9% 1997 3 -13.1% 4.0% 1998 3 -17.2% -2.7% 1999 5 -11.8% 6.2% 2000 8 -27.1% 12.0% 2001 6 -33.2% 0.4% 2002 8 -41.9% -5.0% 2003 3 -5.2% 4.6% 2004 3 -6.4% 1.1% 2005 5 -8.7% 0.7% 2006 1 -2.9% 0.5% 2007 5 -11.6% 1.4% 2008 8 -51.8% -16.3% 3Q09 - YTD 2 -19.1% 3.4% Distribution of Net Monthly Returns since April 1, 1994 ------------------------------------------------------- Net Monthly Return Number of of OZ Master Fund Months ----------------- ------ less than -3% 5 -2% to -3% 2 -1% to -2% 3 0% to -1% 17 0% to 1% 61 1% to 2% 46 2% to 3% 31 3% to 4% 13 4% to 5% 5 greater than 5% 3 Total net return for the OZ Master Fund (the "Fund") represents a composite of the average return of the feeder funds that comprise the Fund. Returns are presented on a total return basis, net of all fees and expenses (except incentive income on certain unrealized private investments that could reduce returns on these investments at the time of realization), and include the reinvestment of all dividends and income. Performance includes realized and unrealized gains and losses attributable to certain private and initial public offering investments that are not allocated to all investors in the Fund. Investors that do not participate in such investments or that pay different fees may experience materially different returns. Past performance is no guarantee of future results. For the period from 1994 through 1997, performance represents the performance of Och-Ziff Capital Management, L.P., a Delaware limited partnership that was managed by Daniel Och following an investment strategy that is substantially similar to that of the Fund. In addition, during this period, performance was calculated by deducting Management Fees on a quarterly basis and Incentive Income on a monthly basis. Beginning January 1998, performance has been calculated by deducting both Management Fees and Incentive Income on a monthly basis from the composite returns of the Fund. Readers should not assume that there is any material overlap between those securities in the portfolio of the Fund and those that comprise the S&P 500 Index. It is not possible to invest directly in the S&P 500 Index. Returns of the S&P 500 Index have not been reduced by fees and expenses associated with investing in securities and include the reinvestment of dividends. The S&P 500 Index is an equity index owned and maintained by Standard & Poor's, a division of McGraw-Hill, whose value is calculated as the free float-weighted average of the share prices of 500 large-cap corporations listed on the NYSE and Nasdaq. The comparison of S&P 500 Index performance relative to the Fund's performance during months in which the S&P 500 Index declined is for the limited purpose of illustrating how the Fund has performed during periods of declines in the broad equity market. It should not be considered an indication of how the Fund will perform relative to the S&P 500 Index in the future. Please note that the Fund's investment objective is not to beat the S&P 500 Index. Furthermore, the Fund's performance has frequently trailed that of the S&P 500 Index in periods of positive performance. Exhibit 10 OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC Fund Performance (Unaudited) (1) 2008 ---- January February March April May ------- -------- ----- ----- --- Och-Ziff Funds - Net Returns OZ Master Fund -1.12% 1.02% -0.73% 0.96% 1.11% OZ Europe Master Fund -2.00% 0.81% -0.54% 0.31% 1.69% OZ Asia Master Fund -1.95% 1.78% -2.41% -0.18% -0.16% OZ Global Special Investments Master Fund -0.72% 0.57% -0.45% 0.64% 0.43% S&P 500 Index - Total Return (2) -6.00% -3.25% -0.43% 4.87% 1.30% 2008 ---- June July August September October ---- ---- ------ --------- ------- Och-Ziff Funds - Net Returns OZ Master Fund -0.45% -0.59% -0.58% -5.41% -6.71% OZ Europe Master Fund 0.20% -1.35% -0.38% -7.22% -5.12% OZ Asia Master Fund -2.19% -1.17% -4.18% -7.53% -11.76% OZ Global Special Investments Master Fund -0.34% 0.06% -0.45% -2.73% -2.60% S&P 500 Index - Total Return (2) -8.43% -0.84% 1.45% -8.91% -16.80% 2008 ---- November December FY2008 -------- -------- ------ Och-Ziff Funds - Net Returns OZ Master Fund -2.35% -2.02% -15.92% OZ Europe Master Fund -2.67% -2.31% -17.39% OZ Asia Master Fund -1.69% -4.13% -30.86% OZ Global Special Investments Master Fund -1.72% -1.22% -8.27% S&P 500 Index - Total Return (2) -7.18% 1.06% -37.00% 2009 ---- January February March 1Q ------- -------- ----- -- Och-Ziff Funds - Net Returns OZ Master Fund 3.09% 0.35% 0.88% 4.36% OZ Europe Master Fund 0.98% -1.09% -0.04% -0.16% OZ Asia Master Fund 2.70% 1.22% 0.38% 4.35% OZ Global Special Investments Master Fund 0.84% -0.49% 0.35% 0.70% S&P 500 Index - Total Return (2) -8.43% -10.65% 8.76% -11.01% 2009 ---- April May June 2Q ----- --- ---- -- Och-Ziff Funds - Net Returns OZ Master Fund 1.86% 3.42% 2.14% 7.60% OZ Europe Master Fund 2.48% 3.32% 1.24% 7.20% OZ Asia Master Fund 3.09% 4.62% 0.58% 8.48% OZ Global Special Investments Master Fund 0.00% 1.97% 0.88% 2.87% S&P 500 Index - Total Return (2) 9.57% 5.59% 0.20% 15.93% 2009 ---- July August September 3Q YTD ---- ------ --------- -- --- Och-Ziff Funds - Net Returns OZ Master Fund 3.26% 1.37% 2.51% 7.30% 20.49% OZ Europe Master Fund 2.36% 2.06% 3.28% 7.90% 15.47% OZ Asia Master Fund 9.50% 0.24% 1.70% 11.63% 26.36% OZ Global Special Investments Master Fund 1.55% 0.33% 1.47% 3.38% 7.09% S&P 500 Index - Total Return (2) 7.56% 3.61% 3.73% 15.61% 19.26% (1) Fund performance reflects a composite of the return for the feeder funds comprising each of the Company's most significant master funds and is presented on a total return basis, net of all fees and expenses of the relevant fund (except incentive income on certain unrealized private investments that could reduce returns on these investments at the time of realization), and includes the reinvestment of all dividends and income. Performance includes realized and unrealized gains and losses attributable to certain private and initial public offering investments that are not allocated to all investors in the funds. Investors that do not participate in such investments or that pay different fees may experience materially different returns. Past performance is no guarantee of future results. (2) Readers should not assume that there is any material overlap between those securities in the portfolios of the funds and those that comprise the S&P 500 Index. It is not possible to invest directly in the S&P 500 Index. Returns of the S&P 500 Index have not been reduced by fees and expenses associated with investing in securities and include the reinvestment of dividends. The S&P 500 Index is an equity index owned and maintained by Standard & Poor's, a division of McGraw-Hill, whose value is calculated as the free float-weighted average of the share prices of 500 large-cap corporations listed on the NYSE and Nasdaq. The comparison of S&P 500 performance relative to the funds' performance should not be considered an indication of how the fund will perform relative to the S&P 500 in the future. Please note that the funds' investment objective is not to beat the S&P 500 Index. Furthermore, the funds' performance has frequently trailed that of the S&P 500 Index in periods of positive performance.

Och-Ziff Capital Management Group LLC

CONTACT: Investor Relations, Tina Madon, Managing Director, Head of
Investor Relations, Och-Ziff Capital Management Group LLC, +1-212-719-7381,
tina.madon@ozcap.com; Media Relations, Steve Bruce or Chuck Dohrenwend, both
of The Abernathy MacGregor Group, for Och-Ziff Capital Management Group LLC,
+1-212-371-5999

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

Isis Pharmaceuticals to Present at the 2009 Canaccord Adams Cardiovascular Conference

CARLSBAD, Calif., Nov. 3 /PRNewswire-FirstCall/ -- Isis Pharmaceuticals, Inc. , the leader in antisense therapeutics, today announced that management will present a company overview at Canaccord Adams' 2009 Cardiovascular Conference on Tuesday, November 10, 2009, at 11:00 a.m. PT at the Nikko Hotel in San Francisco.

A live audio webcast of the presentation will be available on the "Investors & Media" section of the Company's Web site, http://www.isispharm.com/. A replay of the presentation will be available on the Isis Web site within 48 hours and will be archived for a limited time.

About Isis Pharmaceuticals, Inc.

Isis is exploiting its expertise in RNA to discover and develop novel drugs for its product pipeline and for its partners. The Company has successfully commercialized the world's first antisense drug and has 19 drugs in development. Isis' drug development programs are focused on treating cardiovascular, metabolic and severe neurodegenerative diseases and cancer. Isis' partners are developing antisense drugs invented by Isis to treat a wide variety of diseases. Isis and Alnylam Pharmaceuticals are joint owners of Regulus Therapeutics Inc., a company focused on the discovery, development and commercialization of microRNA therapeutics. Isis also has made significant innovations beyond human therapeutics resulting in products that other companies, including Abbott, are commercializing. As an innovator in RNA-based drug discovery and development, Isis is the owner or exclusive licensee of over 1,600 issued patents worldwide. Additional information about Isis is available at http://www.isispharm.com/.

Isis Pharmaceuticals, Inc.

CONTACT: CONTACT: Kristina Lemonidis, Director, Corporate
Communications, +1-760-603-2490, or Amy Blackley, Ph.D., Assistant Director,
Corporate Communications, +1-760-603-2772, both of Isis Pharmaceuticals, Inc.

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

Walmart Foundation Kicks-Off $32 Million Holiday Giving Campaign With Historic Hunger Relief EffortDonated Refrigerator Trucks Expected to Help 35 U.S. Food Banks Provide 41 Million Additional Meals to Families in Need

BENTONVILLE, Ark., Nov. 3 /PRNewswire-FirstCall/ -- Today, Walmart and the Walmart Foundation kicked-off "Walmart Gives Back," a holiday giving initiative that will provide $32 million in monetary and in-kind donations to charitable organizations across the U.S. Executives from Feeding America and Meals On Wheels joined Walmart to launch the historic campaign by sending off a convoy of 35 trucks donated by the Walmart Foundation.

Valued at $3 million and loaded with Great Value-branded products and fresh apples, the new refrigerator trucks will arrive at Feeding America food banks in Miami, Indianapolis, New Orleans, Boston, Memphis and 30 other communities in time for Thanksgiving. Feeding America estimates that these refrigerator trucks will enable the food banks to transport up to 52.5 million pounds of food, the equivalent of 41 million additional meals, per year.

"In this economy, families and seniors across the country who rely on food banks have been hit especially hard," said Margaret McKenna, president of the Walmart Foundation. "As Walmart stores continue to be the price leader on groceries, our partnership with Feeding America is helping us do our part to put more food on the dinner table. Our business and our charitable giving are united in the commitment to eradicate hunger in America."

The donated refrigerator trucks are the Walmart Foundation's response to a call from food banks that were unable to safely transport nutritious produce, deli meat, beef, chicken, dairy and other nutritious food donated from Walmart stores and other grocers. Since last November, Walmart stores and Sam's Club locations have donated more than 90 million pounds of food - the equivalent of 70 million meals - to Feeding America food banks, exceeding the company's goal and making Walmart Feeding America's largest food donor.

"With more than 90 million pounds of food donated to Feeding America's network of food banks, Walmart is Feeding America's top corporate partner in the fight against hunger," said Vicki Escarra, president and CEO of Feeding America. "These 35 new refrigerated trucks are critical to the food banks and will make an enormous impact in allowing the safe transport of nutritious food to millions of people in need around the country. No American should go hungry, and we are proud to partner with Walmart and fight to end domestic hunger."

In addition, the Walmart Foundation announced today a $2.2 million grant to Meals On Wheels Association of America. Through this funding, 140 Meals On Wheels programs across the nation will upgrade or replace delivery vehicles, stoves, refrigerators and freezers. These improvements will help increase the number of meals provided to the one in nine seniors facing the threat of hunger.

"When people think of hunger in the United States the elderly do not come to mind. The reality is, though, that hundreds of thousands of our country's seniors are going to bed hungry right now. Those are our mothers, our fathers, our veterans, the people who raised us," said Enid Borden, president and CEO of Meals On Wheels Association of America. "We are thankful that the Walmart Foundation understands that senior hunger is a major problem and can be eradicated. I applaud Walmart for stepping up to the plate, once again, to help us deliver the next meal so no senior goes hungry."

As in years past, the majority of Walmart's holiday giving will happen at the local level with more than $24 million donated from the Walmart Foundation to nonprofits in the communities where Walmart's 4,000 stores and clubs are located. In addition, the Walmart Foundation will, once again, donate $1.25 million to The Salvation Army and Red Kettles will fundraise at Walmart stores and Sam's Club locations nationwide from Friday, Nov. 27 through Thursday, Dec. 24.

Later this holiday season, Walmart will announce additional recipients of its Walmart Gives Back holiday giving initiative. For more information, visit http://www.walmartgiving.com/.

About Philanthropy at Walmart

Walmart and the Walmart Foundation are proud to support the charitable causes that are important to customers and associates in their own neighborhoods. Through its philanthropic programs and partnerships, the Walmart Foundation funds initiatives focused on creating opportunities in education, workforce development, economic opportunity, environmental sustainability, and health and wellness. From February 1, 2008 through January 31, 2009, Walmart - and its domestic and international foundations - gave more than $423 million in cash and in-kind gifts globally. To learn more, visit http://www.walmartfoundation.org/.

About Feeding America

Feeding America provides low-income individuals and families with the fuel to survive and even thrive. As the nation's leading domestic hunger-relief charity, our network members supply food to more than 25 million Americans each year, including 9 million children and 3 million seniors. Serving the entire United States, more than 200 member food banks support 63,000 agencies that address hunger in all of its forms. Feeding America is headquartered in Chicago. For more information on how you can fight hunger in your community and across the country, visit http://www.feedingamerica.org/.

About Meals On Wheels

The Meals On Wheels Association of America (MOWAA) is the oldest and largest national organization in the United States representing those programs that provide meals to people in need. To obtain more information about MOWAA or to locate a local Meals On Wheels program, visit the MOWAA website at http://www.mowaa.org/.

Photo: http://www.newscom.com/cgi-bin/prnh/20090914/WALMARTLOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Walmart Foundation

CONTACT: Deisha Galberth of Walmart, 1-800-331-0085

Web Site: http://www.walmartfoundation.org/
http://feedingamerica.org/
http://www.mowaa.org/

Yucheng Technologies Named Among Top 100 Global Financial Technology Providers

BEIJING, Nov. 3 /PRNewswire-Asia-FirstCall/ -- Yucheng Technologies Limited , a leading provider of IT solutions to China's banking industry, today announced that it is ranked on the FinTech 100 for the second year.

The FinTech 100 ranks the top 100 global application/service providers, which derive more than one third of revenues from the financial services industry and have multiple technologies. Key applications for consideration in the banking sector include, core processing, branch, teller, loan management, credit card, mortgage origination, CRM, online banking, collections, cash management, trade finance, treasury services and funds transfer.

As a total solution provider, Yucheng strives to meet any banking need from front office solutions, such as e-banking, to back office, with risk management. Yucheng currently has the widest portfolio of IT solutions targeted to banks in China.

"Yucheng's exclusive focus on the banking sector in China makes it uniquely able to provide customized solutions that meet banks' rapidly developing requirements," stated Mr. Weidong Hong, CEO of Yucheng Technologies. "This win acknowledges the importance of the Chinese banking market and Yucheng's contribution to developing superior solutions for banks."

The FinTech 100 is an annual international listing of the top technology providers as named by American Banker, Bank Technology News (BTN) and IDC Financial Insights. The FinTech 100 survey has been tracking industry leaders for the last six years.

About Yucheng Technologies Limited

Yucheng Technologies Limited is a leading IT service provider to the Chinese banking industry. Headquartered in Beijing, China, Yucheng has approximately 2,200 employees and has established an extensive network for serving its banking clients nationwide, with subsidiaries and representative offices in 23 cities. Yucheng provides a comprehensive suite of IT solutions and services to Chinese banks including: (i) Channel Solutions, such as web banking and call centers; (ii) Business Solutions, such as core banking systems, foreign exchange and treasury management; and (iii) Management Solutions, such as risk analytics and business intelligence. Yucheng is also a leading third-party provider of POS merchant acquiring services in partnership with banks in China.

Safe Harbor Statement

This press release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "project" or "continue" or the negative thereof or other similar words. Such forward- looking statements, based upon the current beliefs and expectations of Yucheng'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: current dependence on the PRC banking industry demand for the products and services of Yucheng; competition from other service providers in the PRC and international consulting firms; the ability to update and expand product and service offerings; retention and hiring of qualified employees; protection of intellectual property; creating and maintaining quality product offerings; operating a business in the PRC with its changing economic and regulatory environment; and the other relevant risks detailed in Yucheng filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Yucheng assumes no obligation to update the information contained in this press release.

For further Information, please contact: Rebecca Alexander Tel: +1-914-613-3648 (U.S.) Tel: +86-10-5913-7998 (China) Email: ralexander@yuchengtech.com

Yucheng Technologies Limited

CONTACT: Rebecca Alexander, +1-914-613-3648 (U.S.), +86-10-5913-7998
(China), ralexander@yuchengtech.com

China Nepstar Enters Into Strategic Cooperation Agreement with ATMU to Install More Than 1,000 ATMs in Nepstar Stores

SHENZHEN, China, Nov. 3 /PRNewswire-Asia-FirstCall/ -- China Nepstar Chain Drugstore Ltd. ("China Nepstar" or the "Company"), the largest drugstore chain in China based on the number of directly operated stores, today announced that it has entered into a strategic cooperation agreement with ATMU (China) Technology Co., Ltd., a subsidiary of ATMU Inc., one of the largest ATM operators in China, to install ATMs in Nepstar stores.

This cooperation will not only provide convenience to customers and generate rental revenue for China Nepstar, but will also help increase store traffic and accelerate the development of electronic payment services at Nepstar stores. ATMU plans to complete initially 1,000 ATM installations in China Nepstar's existing stores by end of 2010.

ATMU Inc. is one of the largest ATM operators, ATM media service providers and ATM maintenance providers in China. ATMU Inc.'s strategic business partner, Postal Savings Bank of China, is the fifth largest commercial bank in China. Established on what was the financial services network of the China Post Bureau, Postal Savings Bank of China provides full commercial banking services to more than one billion residents in rural and urban markets across mainland China.

Mr. Jason Wu, Chief Operation Officer of Nepstar, commented, "We are delighted with this new initiative. With our broad geographic coverage in China and outstanding brand name, China Nepstar is the logical partner for ATMU. This cooperation is another step towards our long term goal of bringing maximum convenience and high quality products to our customers. We believe that the installation of these ATMs, along with other in-store service terminals such as the utility bill payment system, will further help increase our store traffic and strengthen our customer relationships."

About China Nepstar Chain Drugstore Ltd.

China Nepstar Chain Drugstore Ltd. is China's largest retail drugstore chain based on the number of directly operated stores. As of June 30, 2009, the Company had 2,312 stores across 64 cities, one headquarter distribution center and 12 regional distribution centers in China. China Nepstar uses directly operated stores, centralized procurement and a network of distribution centers to provide its customers with high-quality, professional and convenient pharmacy services and a wide variety of other merchandise, including OTC drugs, nutritional supplements, herbal products, personal care products, family care products, and convenience products including consumables. China Nepstar's strategy of centralized procurement, competitive pricing, customer loyalty programs and private label offerings has enabled it to capitalize on the robust economic growth in China and to take advantage of the demographic trend in China to achieve a strong brand and leading market position. For further information, please go to http://www.nepstar.cn/ .

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and the Company's strategic operational plans and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

For more information, please contact: In China: Lucia Qian China Nepstar Chain Drugstore Ltd. Vice President, IR Phone: +86-755-2641-4065 Email: qianrt@nepstar.cn In the United States: Dixon Chen Grayling Investor Relations Tel: +1-646-284-9403 Email: dixon.chen@us.grayling.com Ivette Almeida Grayling Media Relations Tel: +1-646-284-9455 Email: ivette.almeida@us.grayling.com

China Nepstar Chain Drugstore Ltd.

CONTACT: In China, Lucia Qian, Vice President, IR of China Nepstar Chain
Drugstore Ltd., +86-755-2641-4065, or qianrt@nepstar.cn; or in the United
States, Dixon Chen, Investor Relations, +1-646-284-9403, or
dixon.chen@us.grayling.com, or Ivette Almeida, Media Relations,
+1-646-284-9455, or ivette.almeida@us.grayling.com, both of Grayling, for NPD

Web Site: http://www.nepstar.cn/

Triple-S Management Corporation Reports Third Quarter 2009 Results

SAN JUAN, Puerto Rico, Nov. 3 /PRNewswire-FirstCall/ -- Triple-S Management Corporation , the largest managed care company in Puerto Rico, today announced consolidated revenues of $507.3 million and operating income of $15.4 million for the three months ended September 30, 2009. Net income of $18.1 million, or $0.62 per diluted share, includes an after tax net gain of $6.3 million, or $0.22 per share, in net realized and unrealized gains on investments and derivatives.

Third-Quarter Highlights -- Total consolidated operating revenues increased 10.7 percent year over year to $500.2 million -- Operating income was $15.4 million -- Excluding net realized and unrealized gains on investments and a derivatives gain included within other income (expenses), net income was $11.8 million, or $0.40 per diluted share -- Consolidated loss ratio was 86.6 percent and the medical loss ratio (MLR) was 90.3 percent -- Consolidated operating expense ratio rose 10 basis points to 14.6 percent -- Commercial member months enrollment, including ASO, increased 28.0 percent -- Net cash flow provided by operating activities of $17.5 million

"During the period, we posted double-digit growth in our Commercial membership, registered incremental improvement in the adjusted MLR for our Medicare Advantage segment, and continued to generate positive operating cash flow," said Ramon M. Ruiz-Comas, President and Chief Executive Officer. "As we enter the seasonally strong fourth quarter, the combination of more favorable utilization trends and higher premiums should allow us to reduce our MLR in both the Commercial and Medicare Advantage businesses. However, we were not immune to the impact of swine flu which was particularly noticeable among our younger Commercial members."

Ruiz-Comas added, "Through the first nine months of 2009, we have successfully pursued a simple and straightforward strategy that we initially implemented several years ago. By leveraging our market leadership position, highly efficient cost structure, and healthy capital base, we have created a strong foundation that should sustain solid, profitable growth into 2010 and beyond."

Consolidated operating revenues for the three months ended September 30, 2009, were $500.2 million, 10.7 percent above the prior-year period. The increase resulted primarily from growth in Commercial membership, reflecting, in large part, the acquisition of La Cruz Azul (LCA) and the addition of the Metro-North region in the Reform business, as well as higher premium rates across all businesses.

Consolidated claims incurred and operating expenses for the period were $484.8 million, an increase of 13.0 percent from the same period last year. Consolidated claims incurred were $413.6 million, up 13.1 percent from a year ago, principally due to increased claims in the managed care segment resulting from higher enrollment and the addition of LCA's members. The consolidated loss ratio rose 220 basis points from the prior-year period, to 86.6 percent, largely reflecting the increased utilization among local government employees, the effect of reserve developments in our managed care segment, and the impact of premium adjustments in the Reform business. Excluding the effect of those items, the consolidated loss ratio increased 150 basis points. Operating expenses came in at $71.2 million, an 11.9 percent year-over-year increase, primarily resulting from higher volume in the Commercial business, incremental expenses associated with the acquisition of LCA's membership, and the addition of the Metro-North region ASO contract in November 2008. The consolidated operating expense ratio rose 10 basis points, to 14.6 percent.

Net income for the three months ended September 30, 2009, was $18.1 million, or $0.62 per diluted share, based on weighted average shares outstanding of 29.4 million. This compares with net income for the three months ended September 30, 2008, of $9.5 million, or $0.29 per diluted share, based on weighted average shares outstanding of 32.2 million. The earnings for the three months ended September 30, 2009, include $0.21 per diluted share in after tax net realized and unrealized gains on investments and an increase in the unrealized gain in derivatives of $0.01 per diluted share included within other income (expenses). Excluding the effect of these items for the three months ended September 30, 2009, net income was $11.8 million, or $0.40 per diluted share, compared with $14.9 million, or $0.46 per diluted share, in the comparable 2008 quarter.

(Unaudited) Pro Forma Net Income ------------------------------- Three Nine months ended months ended (dollar amounts in millions) September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Pro forma net income: Net income $18.1 $9.5 $40.7 $22.8 Net realized investment (gains) losses, net of tax (1.9) 0.9 1.0 1.8 Net unrealized trading investments (gains) losses, net of tax (4.1) 3.1 (6.8) 10.1 Derivative (gain) loss, net of tax (0.3) 1.4 0.1 3.8 ---- --- --- --- Pro forma net income $11.8 $14.9 $35.0 $38.5 -------------------- ----- ----- ----- ----- Diluted pro forma net income per share $0.40 $0.46 $1.17 $1.20 ------------------------------ ----- ----- ----- ----- Nine-Month Recap

For the nine months ended September 30, 2009, consolidated operating revenues rose 11.8 percent to $1.47 billion, primarily reflecting the growth in the managed care segment. Consolidated claims incurred for the nine months ended September 30, 2009 were $1.21 billion, up 12.7 percent year over year. The consolidated loss ratio increased 120 basis points to 86.4 percent. Nine-month consolidated operating expenses were $208.1 million and the operating expense ratio remained at 14.6 percent. Pro forma net income for the nine months ended September 30, 2009 was $35.0 million, or $1.17 per diluted share, based on weighted average shares outstanding of 29.7 million, compared with $38.5 million, or $1.20 per diluted share, based on weighted average shares outstanding of 32.2 million at the same time last year.

For the aforementioned nine-month period, net cash provided by operating activities amounted to $66.7 million. As of September 30, 2009, Triple-S Management had $36.3 million in parent company cash, cash equivalents, and investments.

Segment Performance

Triple-S Management operates in three segments: 1) Managed Care, 2) Life Insurance, and 3) Property and Casualty Insurance. Management evaluates performance based primarily on the operating revenues and operating income of each segment. Operating revenues include premiums earned, net administrative service fees and net investment income. Operating costs include claims incurred and operating expenses. The Company calculates operating income or loss as operating revenues minus operating expenses. Operating margin is defined as operating gain or loss divided by operating revenues.

Three months ended Nine months ended (dollar amounts September 30, September 30, in millions) Percentage Percentage 2009 2008 Change 2009 2008 Change ---- ---- ------ ---- ---- ------ Operating revenues: Managed Care $445.3 $399.0 11.6% $1,299.9 $1,154.1 12.6% Life Insurance 28.8 27.7 4.0% 87.0 80.7 7.8% Property and Casualty 27.4 25.8 6.2% 81.8 78.2 4.6% Other (1.3) (0.7) 85.7% (3.6) (2.3) 56.5% ---- ---- ---- ---- ---- ---- Total operating revenues $500.2 $451.8 10.7% $1,465.1 $1,310.7 11.8% ----- ----- ---- ------- ------- ---- Operating income: Managed Care $10.1 $15.1 (33.1%) $32.1 $34.4 (6.7%) Life Insurance 4.0 3.0 33.3% 10.9 8.7 25.3% Property and Casualty 0.2 2.9 (93.1%) 4.4 7.3 (39.7%) Other 1.1 1.6 (31.3%) 3.0 4.7 (36.2%) --- --- ---- --- --- ---- Total operating income $15.4 $22.6 (31.9%) $50.4 $55.1 (8.5%) ---- ---- ---- ---- ---- --- Operating margin: Managed Care 2.3% 3.8% -150 bp 2.5% 3.0% -50 bp Life Insurance 13.9% 10.8% 310 bp 12.5% 10.8% 170 bp Property and Casualty 0.7% 11.2% -1050 bp 5.4% 9.3% -390 bp Consolidated 3.1% 5.0% -190 bp 3.4% 4.2% -80 bp Managed Care Results Summary

Total medical premiums earned for the three months ended September 30, 2009 were $429.4 million, up 10.7 percent from the same period in 2008, primarily due to higher Commercial member enrollment, reflecting, in large part, the acquisition of La Cruz Azul (LCA), as well as higher premium rate increases across all businesses.

Medical premiums generated by the Commercial business were up $32.9 million, or 17.8 percent, to $217.3 million, the net result of an increase of 207,017, or 16.8 percent, in member months enrollment and a 1.5% rise in the average premium rate. More than half of the increase in member months enrollment (115,648) was attributable to the LCA acquisition, which became effective on July 1, 2009, with the remainder coming from other new groups added during the period.

Medical premiums earned in the Medicare business rose $9.6 million, or 8.5 percent, to $122.7 million, largely the result of higher average premium rates, particularly for the dual-eligible product. Offsetting the premium rate increases was a decline in member months enrollment of 12,204, or 5.5%, reflecting decreases of 9,640, or 5.1%, in Medicare Advantage membership and 2,564, or 8.0%, in PDP membership.

Medical premiums generated by the Reform business fell $1.0 million, or 1.1 percent, to $89.4 million. The decline reflects a reduction of 12,799, or 1.2 percent, in fully-insured membership and a $2.9 million premium adjustment to provide for unresolved reconciling items.

Administrative service fees, which amounted to $10.5 million, were up $5.3 million, or 101.9 percent, due to an increase in member months enrollment of 875,752. This sharp rise mainly reflects the Metro-North region ASO contract, which became effective in November 2008, as well as new ASO commercial contracts that went into effect January 1, 2009. In addition, the contracts acquired from LCA included several ASO groups. For the three months ended September 30, 2009, total member months enrollment for the Metro-North region and LCA totaled 590,117 and 255,494, respectively.

Medical claims incurred increased by $43.9 million, or 12.8 percent, to $387.7 million, largely driven by the higher volume of business and MLR. The overall MLR increased 170 basis points during the three months ended September 30, 2009, to 90.3 percent. This increase was the result of the changes in the reserve estimates that affected the claims reserve in both periods, offset, in part, by the effect of the aforementioned premium adjustments in the Reform business. Excluding the effect of prior period reserve developments in 2009 and 2008, and considering the effect of premium adjustments, the MLR was 89.4 percent in 2009 and 89.2 percent in 2008. The increase in MLR largely reflects the increased utilization related to the AH1N1, or swine flu, and among local government employees. During the three months ended September 30, 2009 the segment experienced a $2.1 million, or 50 basis points, increase in utilization related to the AH1N1, or swine, flu.

Operating expenses were up $7.4 million year over year, or 18.5 percent, to $47.5 million, primarily attributable to the higher volume of business associated with increased enrollment, the addition of the Metro-North region ASO contract in November 2008, as well as incremental expenses related to the acquisition of LCA's membership. The segment's operating expense ratio rose 60 basis points, to 10.8 percent.

Three months ended Nine months ended Managed Care Additional September 30, September 30, Data 2009 2008 2009 2008 ---- ---- ---- ---- Member months enrollment Commercial: Fully-insured 1,441,028 1,234,011 3,977,778 3,698,285 Self-funded 812,780 527,145 1,954,997 1,522,524 Total Commercial 2,253,808 1,761,156 5,932,775 5,220,809 Reform: Fully-insured 1,011,294 1,024,093 2,997,800 3,089,384 Self-funded 590,117 - 1,723,568 - Total Reform 1,601,411 1,024,093 4,721,368 3,089,384 Medicare: Medicare Advantage 179,878 189,518 565,439 530,395 Stand-alone PDP 29,330 31,894 88,301 97,374 Total Medicare 209,208 221,412 653,740 627,769 Total member months 4,064,427 3,006,661 11,307,883 8,937,962 Medical loss ratio 90.3% 88.6% 90.4% 89.4% Commercial 89.8% 90.6% 90.8% 87.1% Reform 91.1% 87.3% 89.9% 91.6% Medicare 90.5% 86.4% 90.1% 91.5% Operating expense ratio 10.8% 10.2% 10.6% 10.3% Managed Care As of September 30, Membership by Segment 2009 2008 ---- ---- Members: Commercial: Fully-insured 482,579 411,524 Self-funded 263,354 176,549 Total Commercial 745,933 588,073 Reform: Fully-insured 339,118 340,710 Self-funded 198,296 - Total Reform 537,414 340,710 Medicare: Medicare Advantage 59,472 63,694 PDP 9,818 10,199 Total Medicare 69,290 73,893 Total members 1,352,637 1,002,676 Reaffirming 2009 EPS Guidance

"We are reaffirming our 2009 per-share earnings guidance of $2.03-$2.13, reflecting the fact that our various performance metrics continue to track our expectations," said Ruiz-Comas.

2009 Range Medical enrollment fully-insured (member months) 10.0-10.3 million Medical enrollment self-insured (member months) 4.9-5.0 million Consolidated operating revenues (in billions) $1.92-$1.99 Consolidated loss ratio 84.8%-85.8% Medical loss ratio 88.8%-89.8% Consolidated operating expense ratio 14.3%-14.7% Consolidated operating income (in millions) $90.5-$99.0 Consolidated effective tax rate 21.0%-23.0% Earnings per share $2.03-$2.13 Weighted average of diluted shares outstanding (in millions) 29.6 Conference Call and Webcast

Management will host a conference call and webcast Tuesday, November 3 at 9:00 a.m. Eastern Time to discuss its financial results for the third quarter of 2009, as well as expectations for future earnings. To participate, callers within the U.S. and Canada should dial 800-762-8779, and international callers should dial 480-629-9770 about five minutes before the presentation.

To listen to the webcast, participants should visit the Investor Relations section of the Company's Web site at http://www.triplesmanagement.com/ several minutes before the event is broadcast and follow the instructions provided to ensure they have the necessary audio application downloaded and installed. This program is provided at no charge to the user. An archived version of the call, also located on the Investor Relations section of Triple-S Management's Web site, will be available about two hours after the call ends and for at least the following two weeks. This news release, along with other information relating to the call, will be available on the Investor Relations section of the Web site.

About Triple-S Management Corporation

Triple-S Management Corporation is an independent licensee of the Blue Cross Blue Shield Association. It is the largest managed care company in Puerto Rico, serving approximately 1.3 million members, or about 34% of the population. Triple-S Management also has the exclusive right to use the Blue Cross Blue Shield name and mark throughout Puerto Rico and the U.S. Virgin Islands. With more than 50 years of experience in the industry, Triple-S Management offers a broad portfolio of managed care and related products in the commercial, Medicare, and Reform markets under the Blue Shield brand. In addition to its managed care business, Triple-S Management provides non-Blue Shield branded life and property and casualty insurance in Puerto Rico. The Company is the largest provider of life, accident, and health insurance and the fourth largest provider of property and casualty insurance in its market.

For more information about Triple-S Management, visit http://www.triplesmanagement.com/ or contact waller_kathleen@yahoo.com.

Forward-Looking Statements

This document contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information about possible or assumed future sales, results of operations, developments, regulatory approvals or other circumstances. Sentences that include "believe", "expect", "plan", "intend", "estimate", "anticipate", "project", "may", "will", "shall", "should" and similar expressions, whether in the positive or negative, are intended to identify forward-looking statements.

All forward-looking statements in this news release reflect management's current views about future events and are based on assumptions and subject to risks and uncertainties. Consequently, actual results may differ materially from those expressed here as a result of various factors, including all the risks discussed and identified in public filings with the U.S. Securities and Exchange Commission (SEC).

In addition, the Company operates in a highly competitive, constantly changing environment, influenced by very large organizations that have resulted from business combinations, aggressive marketing and pricing practices of competitors, and regulatory oversight. The following factors, if markedly different from the Company's planning assumptions (either individually or in combination), could cause Triple-S Management's results to differ materially from those expressed in any forward-looking statements shared here:

-- Trends in health care costs and utilization rates -- Ability to secure sufficient premium rate increases -- Competitor pricing below market trends of increasing costs -- Re-estimates of policy and contract liabilities -- Changes in government laws and regulations of managed care, life insurance or property and casualty insurance -- Significant acquisitions or divestitures by major competitors -- Introduction and use of new prescription drugs and technologies -- A downgrade in the Company's financial strength ratings -- Litigation or legislation targeted at managed care, life insurance or property and casualty insurance companies -- Ability to contract with providers consistent with past practice -- Ability to successfully implement the Company's disease management and utilization management programs -- Volatility in the securities markets and investment losses and defaults -- General economic downturns, major disasters, and epidemics

This list is not exhaustive. Management believes the forward-looking statements in this release are reasonable. However, there is no assurance that the actions, events or results anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on the Company's results of operations or financial condition. In view of these uncertainties, investors should not place undue reliance on any forward-looking statements, which are based on current expectations. In addition, forward-looking statements are based on information available the day they are made, and (other than as required by applicable law, including the securities laws of the United States) the Company does not intend to update or revise any of them in light of new information or future events.

Readers are advised to carefully review and consider the various disclosures in the Company's SEC reports.

-FINANCIAL TABLES ATTACHED- Condensed Consolidated Balance Sheets (Dollar amounts in thousands, except per share data) Unaudited September 30, December 31, 2009 2008 --------- -------- Assets Investments $1,056,305 $1,015,701 Cash and cash equivalents 54,698 46,095 Premium and other receivables, net 252,523 237,158 Deferred policy acquisition costs and value of business acquired 134,299 126,347 Property and equipment, net 66,645 58,448 Other assets 68,443 64,710 ------ ------ Total assets $1,632,913 $1,548,459 ========== ========== Liabilities and Stockholders' Equity Policy liabilities and accruals $741,113 $690,080 Accounts payable and accrued liabilities 195,529 203,973 Borrowings 168,077 169,307 ------- ------- Total liabilities 1,104,719 1,063,360 --------- --------- Stockholders' equity: Common stock 29,404 31,148 Other stockholders equity 498,790 453,951 ------- ------- Total stockholders' equity 528,194 485,099 ------- ------- Total liabilities and stockholders' equity $1,632,913 $1,548,459 ========== ========== Condensed Consolidated Statements of Earnings (Dollar amounts in thousands, except per share data) For the Three Months For the Nine Months Ended Ended September 30, September 30, Unaudited Historical Unaudited Historical 2009 2008 2009 2008 --------- ---------- --------- ---------- Revenues: Premiums earned, net $477,503 $433,219 $1,396,208 $1,256,775 Administrative service fees 9,797 4,448 29,982 12,081 Net investment income 12,955 14,072 38,856 41,806 ------ ------ ------ ------ Total operating revenues 500,255 451,739 1,465,046 1,310,662 Net realized investment losses 2,150 (1,101) (1,202) (2,233) Net unrealized investment gain (loss) on trading securities 4,860 (3,605) 8,036 (10,806) Other income (expenses), net 67 (1,147) 392 (1,308) -- ------ --- ------ Total revenues 507,332 445,886 1,472,272 1,296,315 ------- ------- --------- --------- Benefits and expenses: Claims incurred 413,626 365,585 1,206,578 1,070,572 Operating expenses 71,205 63,572 208,060 185,002 ------ ------ ------- ------- Total operating costs 484,831 429,157 1,414,638 1,255,574 Interest expense 3,338 3,749 9,959 11,348 ----- ----- ----- ------ Total benefits and expenses 488,169 432,906 1,424,597 1,266,922 ------- ------- --------- --------- Income before taxes 19,163 12,980 47,675 29,393 ------ ------ ------ ------ Income tax benefit 1,079 3,509 6,999 6,583 ----- ----- ----- ----- Net income $18,084 $9,471 $40,676 $22,810 ======= ====== ======= ======= Basic net income per share $0.62 $0.29 $1.37 $0.71 Diluted earnings per share $0.62 $0.29 $1.37 $0.71 Condensed Consolidated Statements of Cash Flows (Dollar amounts in thousands, except per share data) For the Nine Months Ended September 30, Unaudited Historical 2009 2008 --------- ---------- Net cash provided by (used in) operating activities $66,654 $(19,894) ------- -------- Cash flows from investing activities: Proceeds from investments sold or matured: Securities available for sale: Fixed maturities sold 125,951 162,802 Fixed maturities matured 151,898 65,088 Equity securities 6,849 4,449 Securities held to maturity: Fixed maturities matured 6,893 20,107 Acquisition of investments: Securities available for sale: Fixed maturities (294,628) (449,515) Equity securities (3,209) (17,069) Fixed maturity securities held to maturity (577) (554) Net disbursements for policy loans (285) 73 Capital expenditures (14,555) (12,116) ------- ------- Net cash used in investing activities (21,663) (226,735) ------- -------- Cash flows from financing activities: Change in outstanding checks in excess of bank balances (11,903) 17,992 Change in short-term borrowings - 31,795 Repayments of long-term borrowings (1,230) (1,229) Repurchase and retirement of common stock (22,034) - Proceeds from policyholder deposits 3,708 7,156 Surrenders of policyholder deposits (4,929) (5,793) Other - 6 --- --- Net cash (used in) provided by financing activities (36,388) 49,927 ------- ------ Net increase (decrease) in cash and cash equivalents 8,603 (196,702) Cash and cash equivalents, beginning of period 46,095 240,153 ------ ------- Cash and cash equivalents, end of period $54,698 $43,451 ======= =======

Triple-S Management Corporation

CONTACT: Juan-Jose Roman, Finance Vice President & CFO of Triple-S
Management Corporation, +1-787-749-4949, or Kathy Waller, +1-312-543-6708, for
Triple-S Management Corporation

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

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