Rentrak Reports Fiscal 2010 Second Quarter Financial ResultsCompany's Advanced Media Information (AMI) Division Delivers Continued Revenue and Profit Growth Strategic Moves Position Company for Future Success

PORTLAND, Ore., Nov. 9 /PRNewswire-FirstCall/ -- Rentrak Corporation today announced financial results for its fiscal second quarter ended September 30, 2009.

Consolidated revenues were $21.3 million for the fiscal 2010 second quarter, compared with $24.3 million for the prior-year period.

-- Revenues in the company's Advanced Media Information (AMI) division increased 63% to $5.0 million from $3.1 million for the second quarter of fiscal 2009, primarily reflecting incremental revenues generated from new and existing customers of the company's Essentials suite of multimedia measurement services, as well as a contract that was completed during the quarter that is expected to generate less revenue in subsequent periods. The AMI segment represented 24 percent of consolidated revenues and contributed 43 percent of consolidated gross margin dollars for the second quarter of fiscal 2010, compared with 13 percent and 31 percent, respectively, in the corresponding prior-year period. -- Revenues in the company's Pay-Per-Transaction® (PPT) division totaled $16.3 million, versus $21.2 million in the similar quarter last fiscal year, resulting from approximately 25 percent fewer available rental titles during the quarter. The company reiterated that it expects a normalization of available rental titles in its third fiscal quarter.

"Since joining Rentrak last quarter, the company has made numerous strategic changes designed to make us an even stronger and more agile company," said Bill Livek, Rentrak's Chief Executive Officer. "We significantly enhanced our executive management team and board of directors, adding valuable skill sets and substantial knowledge to the company. We expanded our sales organization to drive greater industry awareness for our products and services. We streamlined our cost structure by finding more efficient ways to propel growth. As a result, I am convinced that Rentrak is better positioned, not only to help our customers understand consumer viewing patterns across all digital media platforms, but to develop new and innovative products that will become part of the ongoing fabric of the entertainment industry.

"Our multiple achievements during the quarter are testament to our work in support of our goal to further position Rentrak as a leading digital currency. Our organization is already enmeshed in the DNA of connecting advertisers to consumers, and Rentrak is the only company that possesses the decades of experience and technological prowess necessary to realize the significant opportunity ahead," Livek added. "Our progress has been admirable, and our successes, many. I am very proud of all we have accomplished to date, but am even more excited about the future."

The company said it recently concluded several important agreements including:

-- Addition of several new TV Essentials partners, such as Jewelry Television, Outdoor Channel and PBS KIDS Sprout, which will use the Rentrak service to gain a broader understanding of the value and appeal of their programming. -- Launch of the mobile television industry's first comprehensive viewership and advertising impression reporting using TV Essentials in collaboration with Flo TV, a company that allows viewers to watch TV "on-the-go." -- Addition of Cinelatino, the leading Spanish language movie channel, as a new OnDemand Essentials customer. OnDemand Essentials currently processes daily, census-level on-demand data representing 70 million set-top boxes from 33 MSOs and 100% of the top-25 operators offering video-on-demand. Rentrak's extensive on-demand data is being utilized by more than 125 content provider clients. -- Further expansion into the Canadian marketplace with the addition of new customer Stingray Digital, a music video-on-demand service launching on Rogers Cable, a current Rentrak customer. -- Extension of Box Office Essentials into Russia, the world's ninth largest motion picture exhibition market. New customers for this service include the international distribution businesses of five major movie studios. -- Expansion of a revenue sharing agreement with Warner Home Video, which significantly increases the amount of Blu-ray disc content available to retailers participating in Rentrak's PPT System.

Selling and administrative expenses for the fiscal 2010 second quarter were $7.8 million, or 37 percent of revenues, compared with $6.7 million, or 27 percent of revenues, in last year's second fiscal quarter. The increase primarily reflects Rentrak's ongoing investment in its multi screen business development and implementation activities, investments in new senior executives and sales talent, and the addition of a sales office in New York City.

Operating income for the second quarter of fiscal 2010 was $502,000, compared with $1.3 million in the second quarter of the last fiscal year. Operating income in the fiscal 2010 period included a total of $1.2 million in one-time and non-cash stock compensation expenses, consisting of $400,000 in severance expense, $100,000 in legal expense and $700,000 in non-cash stock compensation expense, $300,000 of which was due largely to an award granted to Bill Livek upon his hiring. In the fiscal 2009 second quarter, one-time expenses totaled $100,000 and non-cash stock compensation expense totaled $100,000.

Net income totaled $676,000, or $0.06 per diluted share, for the second quarter of fiscal 2010, compared with $842,000, or $0.08 per diluted share, for the second quarter of fiscal 2009. Excluding one-time costs and stock compensation expense, net income in the fiscal 2010 period would have been $1.5 million, or $0.13 per diluted share, in the fiscal 2010 period compared with $1.0 million, or $0.09 per diluted share, in the fiscal 2009 period.

The company generated adjusted EBITDA for the fiscal 2010 second quarter of $1.7 million, compared with $1.8 million in the same quarter of fiscal 2009. The reconciliation of adjusted EBITDA to net income, the most comparable financial measure based upon generally accepted accounting principles (GAAP), as well as a further explanation about adjusted EBITDA, is included in the financial tables included with this press release.

Rentrak's cash, cash equivalents and marketable securities balance grew by $3.6 million to $38.1 million at September 30, 2009, compared with $34.5 million at March 31, 2009. The company's effective tax rate for the second quarter of fiscal 2010 was 5% compared with 43% for the second quarter of fiscal 2009. The decrease was due to a tax benefit of $200,000 which relates to a reduction in the company's tax contingencies due to a lapse of the applicable statute of limitations on tax positions taken in prior fiscal years.

Conference Call

Rentrak will hold a conference call at 5:00 p.m. (ET) / 2:00 p.m. (PT) today to discuss the company's second quarter financial performance. Shareowners, members of the media and other interested parties may participate in the call by dialing 800-798-2801 from the U.S. or Canada, or 617-614-6205 from international locations, passcode 97363554. This call is being webcast and can be accessed at Rentrak's web site at http://www.rentrak.com/ where it will be archived through November 9, 2010. An audio replay of the conference call is available through midnight November 16, 2009 by dialing 888-286-8010 from the U.S. or Canada, or 617-801-6888 from international locations, passcode 90773911.

About Rentrak Corporation

Rentrak Corporation is an industry-advancing media measurement and research company, serving the most recognizable names in the entertainment industry. Reaching across numerous platforms including box office, home entertainment, on-demand and linear television, broadband and mobile, Rentrak provides unique and actionable insight for our clients and partners. From the introduction of our revolutionary Pay-Per-Transaction® distribution and revenue-sharing system, which equipped Rentrak with the intelligence and ability to deal with large, complex data streams, to the company's exclusive Essentials(TM) suite of services, Rentrak has redefined digital audience measurement. Rentrak is headquartered in Portland, Oregon, with additional offices in Los Angeles, New York City and Miami/ Ft. Lauderdale. For more information on any of Rentrak's services, please visit http://www.rentrak.com/.

Safe Harbor Statement

When used in this discussion, the words "anticipates," "expects,'' "intends'' and similar expressions are intended to identify forward-looking statements. Such statements relate to, among other things, the fact that Rentrak is better positioned to help its customers understand consumer viewing patterns across all digital media platforms and to develop new and innovative products that will become part of the ongoing fabric of the entertainment industry; and that the company will achieve its goal of becoming a leading digital currency; and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could affect Rentrak's financial results include customer demand for movies in various media formats subject to company guarantees, the company's ability to attract new revenue-sharing customers and retain existing customers, the company's success in maintaining its relationships with studios and other product suppliers, the company's ability to successfully develop and market new services to create new revenue streams, and Rentrak's customers continuing to comply with the terms of their agreements. Additional factors that could affect Rentrak's financial results are described in Rentrak's March 31, 2009 annual report on Form 10-K and subsequent quarterly reports filed with the Securities and Exchange Commission. Results of operations in any past period should not be considered indicative of the results to be expected for future periods.

CONTACT: Investors PondelWilkinson Inc. Laurie Berman 310-279-5962 lberman@pondel.com (Financial Tables Follow) Rentrak Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) September 30, March 31, 2009 2009 ---- ---- Assets Current Assets: Cash and cash equivalents $7,894 $4,601 Marketable securities 30,252 29,874 Accounts and notes receivable, net of allowances for doubtful accounts of $558 and $597 12,995 16,406 Taxes receivable and prepaid taxes 532 1,231 Deferred income tax assets - 135 Other current assets 982 960 --- --- Total Current Assets 52,655 53,207 Property and equipment, net of accumulated depreciation of $10,543 and $9,472 6,629 6,128 Other assets 531 543 --- --- Total Assets $59,815 $59,878 ======= ======= Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $5,475 $6,738 Accrued liabilities 631 499 Accrued compensation 1,160 1,100 Deferred revenue 600 1,530 Other current liabilities 121 96 --- -- Total Current Liabilities 7,987 9,963 Deferred rent, long-term portion 956 982 Deferred income tax liabilities 603 714 Taxes payable, long-term 1,094 1,242 ----- ----- Total Liabilities 10,640 12,901 Commitments and Contingencies - - Stockholders' Equity: Preferred stock, $0.001 par value; 10,000 shares authorized; none issued - - Common stock, $0.001 par value; 30,000 shares authorized; shares issued and outstanding: 10,491 and 10,421 11 11 Capital in excess of par value 46,338 45,504 Accumulated other comprehensive income (loss) 203 (203) Retained earnings 2,623 1,665 ----- ----- Total Stockholders' Equity 49,175 46,977 ------ ------ Total Liabilities and Stockholders' Equity $59,815 $59,878 ======= ======= Rentrak Corporation and Subsidiaries Condensed Consolidated Income Statements (Unaudited) For the Three For the Six Months Ended Months Ended September 30, September 30, ------------- ------------ 2009 2008 2009 2008 ---- ---- ---- ---- Revenue $21,323 $24,327 $42,960 $49,680 Cost of sales 12,902 16,351 27,139 33,163 ------ ------ ------ ------ Gross margin 8,421 7,976 15,821 16,517 Operating expenses: Selling and administrative 7,792 6,655 14,909 13,435 Provision for doubtful accounts and notes 127 42 298 122 --- -- --- --- 7,919 6,697 15,207 13,557 ----- ----- ------ ------ Income from operations 502 1,279 614 2,960 Other income (expense): Interest income, net 206 206 505 374 --- --- --- --- Income before income taxes 708 1,485 1,119 3,334 Provision for income taxes 32 643 161 1,456 -- --- --- ----- Net income $676 $842 $958 $1,878 ==== ==== ==== ====== Basic net income per share $0.06 $0.08 $0.09 $0.18 ===== ===== ===== ===== Diluted net income per share $0.06 $0.08 $0.09 $0.17 ===== ===== ===== ===== Shares used in per share calculations: Basic 10,478 10,614 10,466 10,611 ====== ====== ====== ====== Diluted 11,040 11,166 10,954 11,153 ====== ====== ====== ====== Rentrak Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) For the Six Months Ended September 30, ------------- 2009 2008 ---- ---- Cash flows from operating activities: Net income $958 $1,878 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization 1,072 799 Stock-based compensation 808 260 Other adjustments 240 192 (Increase) decrease in: Accounts receivable 3,190 (2,027) Taxes receivable and prepaid taxes 699 450 Other assets (305) 383 Increase (decrease) in: Accounts payable (1,016) 3,590 Deferred revenue (930) 749 Other liabilities 19 (132) -- ---- Net cash provided by operating activities 4,735 6,142 Cash flows from investing activities: Maturity of marketable securities - 4,986 Purchase of marketable securities - (30,006) Purchase of property and equipment (1,639) (1,219) ------ ------ Net cash used in investing activities (1,639) (26,239) Net cash provided by financing activities 19 135 Effect of foreign exchange translation on cash 178 (13) --- --- Increase (decrease) in cash and cash equivalents 3,293 (19,975) Cash and cash equivalents: Beginning of period 4,601 26,862 ----- ------ End of period $7,894 $6,887 ====== ====== Supplemental non-cash information: Deferred gain related to forgiven loan for capital assets $- $219 Unrealized gains (losses) on investments, net of tax of $159 and $(82) 221 (108) Rentrak Corporation Reconciliation of GAAP and Non-GAAP Financial Measures Adjusted EBITDA (Unaudited) (in thousands) For the Three For the Six Months Ended Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net Income $676 $842 $958 $1,878 Adjustments: Provision for income taxes 32 643 161 1,456 Interest income, net (206) (206) (505) (374) Depreciation and amortization 548 411 1,072 799 Stock based compensation 688 133 808 260 ------ ------ ------ ------ Adjusted EBITDA $1,738 $1,823 $2,494 $4,019 ====== ====== ====== ====== About Adjusted EBITDA From time to time, we may refer to Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization and Stock Based Compensation) in our conference calls and discussions with analysts in connection with our reported historical financial results. Adjusted EBITDA does not represent cash flows from operations as defined by generally accepted accounting principles ("GAAP"), is not derived in accordance with GAAP and should not be considered by the reader as an alternative to net income (the most comparable GAAP financial measure to Adjusted EBITDA). The reconciliation of GAAP and Non-GAAP financial measures for the three and six month periods ended September 30, 2009 and 2008 is included in the above table. Management of the Company believes that Adjusted EBITDA is helpful as an indicator of the current financial performance of the Company and its capacity to operationally fund capital expenditures and working capital requirements. Due to the nature of the Company's internally-developed software policies and the Company's use of stock based compensation, the Company incurs significant non-cash charges for depreciation, amortization and stock based compensation expense that may not be indicative of its operating performance from a cash perspective. Therefore, the Company believes that using the measure of Adjusted EBITDA will help provide a better understanding of the Company's underlying financial performance and ability to generate cash flows from operations.

Rentrak Corporation

CONTACT: Investors, Laurie Berman of PondelWilkinson Inc.,
+1-310-279-5962, lberman@pondel.com, for Rentrak Corporation

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

Alexza Reports 2009 Third Quarter Financial Results and Updates AZ-004 (Staccato(R) Loxapine) NDA StatusConference Call Scheduled for Today - Monday, November 9, 2009 at 5:00 p.m. Eastern Time

MOUNTAIN VIEW, Calif., Nov. 9 /PRNewswire-FirstCall/ -- Alexza Pharmaceuticals, Inc. reported today financial results for the quarter ended September 30, 2009, and provided a status update of its AZ-004 New Drug Application (NDA). The net loss for the three and nine months ended September 30, 2009, as reported in accordance with accounting principles generally accepted in the United States (GAAP), was $12.4 million and $36.3 million, respectively, compared to a net loss of $20.8 million and $59.1 million in the comparable periods in 2008, respectively. Alexza had consolidated cash, cash equivalents and marketable securities at September 30, 2009 of $14.7 million.

In October 2009, Alexza issued an aggregate of 8,107,012 shares of its common stock and warrants to purchase up to an additional 7,296,312 shares of its common stock in a private placement. These securities were sold as units with each unit consisting of one share of common stock and a warrant to purchase 0.9 shares of common stock at a purchase price of $2.4325 per unit. The net proceeds, after deducting the payment of a placement agent fee and other offering expenses, were approximately $19.1 million. The warrants issued are cash or net exercisable for a period of seven years from October 5, 2009 and have an exercise price of $2.77 per share.

"During the third quarter, we completed all of the planned clinical work for our AZ-004 NDA and completed the purchase of Symphony Allegro to reacquire the full ownership of AZ-004, along with AZ-104 and AZ-002," said Thomas B. King, Alexza President and CEO. "In early October, we successfully completed a private placement financing, strengthening our balance sheet. We remain solidly on target for our AZ-004 NDA submission early in 2010."

Financial Results - Periods Ended September 30, 2009 and 2008

GAAP operating expenses were $13.0 million and $46.2 million in the three and nine month periods ended September 30, 2009, respectively, compared to operating expenses of $21.1 million and $60.8 million in the same periods in 2008, respectively.

The Company anticipates that with current cash, cash equivalents and marketable securities along with interest earned thereon, the proceeds from option exercises, purchases of common stock pursuant to its Employee Stock Purchase Plan, and the cash received from its October 2009 private equity offering, the Company will be able to maintain its currently planned operations into the second half of 2010. Changing circumstances may cause the Company to consume capital significantly faster or slower than currently anticipated.

On August 26, 2009, Alexza completed the acquisition of Symphony Allegro pursuant to an amended purchase option including all rights to AZ-004, AZ-104 and AZ-002. In exchange for all of the outstanding equity of Symphony Allegro, Alexza: i) issued to Symphony Capital 10 million shares of Alexza common stock ii) issued to Symphony Capital five-year warrants for 5 million shares of Alexza common stock at an exercise price of $2.26 per share and canceled Symphony Capital's warrants for 2 million shares of Alexza common stock and iii) agreed to pay Symphony Capital certain percentages of cash payments that may be generated from future partnering transactions for AZ-004, AZ-104 and/or AZ-002. These possible future payments were accounted for as a capital transaction that did not affect the Company's net loss and was treated as a deemed dividend for purposes of reporting net loss per share attributable to Alexza stockholders, increasing loss per share attributable to Alexza stockholders by $61.6 million.

Through August 26, 2009, Alexza's Consolidated Statements of Operations included the operations of Symphony Allegro Inc., as a variable interest entity. Net loss attributable to noncontrolling interests in Symphony Allegro was $1.6 million and $14.0 million in the three and nine months ended September 30, 2009, respectively, and $6.1 million and $15.7 million in the same periods in 2008, respectively.

AZ-004 NDA Status Update

AZ-004 (Staccato loxapine). Alexza is developing AZ-004 for the acute treatment of agitation in patients with schizophrenia or bipolar disorder. During the third quarter, Alexza completed the enrollment and data analysis of the two remaining AZ-004 non-pivotal safety and NDA-supporting studies. These studies were a pulmonary safety study in subjects with chronic obstructive pulmonary disease, or COPD and a pulmonary safety study in subjects with asthma.

Alexza completed a Phase 1 placebo-controlled study in 53 subjects with predominantly moderate-to-severe COPD and a Phase 1 placebo-controlled study in 52 subjects with mild-to-moderate persistent asthma, to assess the pulmonary safety of AZ-004 in these populations. The studies employed double-blind, parallel-group designs. In each study, subjects were given two doses of Staccato placebo or 10 mg AZ-004, ten hours apart. Spirometry testing and other safety assessments were performed at several time points up to 24 hours after the second dose. The primary safety measure was FEV1 (forced expiratory volume in one second), a standard test of lung function. Decreases in FEV1 versus baseline, respiratory symptoms, and use of a quick-relief bronchodilator occurred in both treatment groups, but were more frequent in each study after treatment with AZ-004. There were no serious or severe respiratory adverse events. All respiratory symptoms developing after treatment were either self-limiting or readily managed with the inhaled bronchodilator.

Alexza has now completed the five planned non-pivotal safety and NDA-supporting studies for the AZ-004 NDA. The Company believes that these data, along with data from the other efficacy and safety trials conducted with AZ-004, adequately demonstrate the efficacy and safety of AZ-004 for the proposed indication.

In July 2009, Alexza completed its AZ-004 pre-NDA meeting with the FDA and the Company continues to project its AZ-004 NDA submission for early 2010.

Conference Call Information

Alexza will host a conference call today, November 9, 2009, at 5:00 p.m. Eastern Time. A replay of the call will be available for two weeks following the event. The conference call, replay and webcast are open to all interested parties.

To access the conference call via the Internet, go to http://www.alexza.com/, under the "Investor Relations" link. Please join the call at least 15 minutes prior to the start of the call to ensure time for any software downloads that may be required. Interested parties may also pre-register to avoid pre-call delays at https://www.theconferencingservice.com/prereg/key.process?key=PNPXXM88G.

To access the live conference call via phone, dial 888-680-0890. International callers may access the live call by dialing +1-617-213-4857. The reference number to enter the call is 73903374.

The replay of the conference call may be accessed via the Internet, at http://www.alexza.com/, or via phone at 888-286-8010 for domestic callers or +1-617-801-6888 for international callers. The reference number for the replay of the call is 39939108.

About Alexza Pharmaceuticals, Inc.

Alexza Pharmaceuticals is a pharmaceutical company focused on the research, development and commercialization of novel, proprietary products for the acute treatment of central nervous system conditions. Alexza's technology, the Staccato® system, vaporizes unformulated drug to form a condensation aerosol that, when inhaled, allows for rapid systemic drug delivery through deep lung inhalation. The drug is quickly absorbed through the lungs into the bloodstream, providing speed of therapeutic onset that is comparable to intravenous administration, but with greater ease, patient comfort and convenience.

AZ-004 (Staccato loxapine) is Alexza's lead program, which is being developed for the acute treatment of agitation in schizophrenia or bipolar disorder patients. Alexza has completed and announced positive results from both of its AZ-004 Phase 3 clinical trials, and is projecting a New Drug Application submission in early 2010.

Alexza has completed an end-of-Phase 2 meeting with the FDA for AZ-001 (Staccato prochlor-perazine) and has completed two Phase 2 studies with AZ-104 (Staccato loxapine, low-dose).

Both product candidates are being developed for the acute treatment of migraine headache.

AZ-002 (Staccato alprazolam) has completed Phase 1 testing and one Phase 2a proof-of-concept clinical trial. Product candidates that have completed Phase 1 testing are AZ-003 (Staccato fentanyl) for the treatment of breakthrough pain, and AZ-007 (Staccato zaleplon) for the treatment of insomnia. More information, including this and past press releases from Alexza, is available online at http://www.alexza.com/.

Safe Harbor Statement

Alexza's policy is to only provide guidance on product candidates and corporate goals for the future one to two fiscal quarters, and to provide, update or reconfirm its guidance only by issuing a press release or filing updated guidance with the SEC in a publicly accessible document. Clinical guidance is as of November 9, 2009 and financial guidance relating to the Company's current cash, cash equivalents and investments is as of September 30, 2009.

This press release and anticipated conference call include forward-looking statements regarding the development of the Company's product candidates, projected clinical trial enrollment and data reporting timelines, and safety of the Company's products and technologies. Any statement describing a product candidate or Alexza's goals, expectations or beliefs is a forward-looking statement, as defined in the Private Securities Litigation Reform Act of 1995, and should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties, particularly those inherent in the process of developing and commercializing drugs. The Company's forward-looking statements also involve assumptions that, if they prove incorrect, would cause its results to differ materially from those expressed or implied by such forward-looking statements. These and other risks concerning Alexza's business are described in additional detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2008, and the Company's other Periodic and Current Reports filed with the Securities and Exchange Commission including the risks under the headings "We have a history of net losses. We expect to continue to incur substantial and increasing net losses for the foreseeable future, and we may never achieve or maintain profitability.", "We will need substantial additional capital in the future. If additional capital is not available, we will have to delay, reduce or cease operations.", "Failure or delay in commencing or completing clinical trials for our product candidates could harm our business.", and "Regulatory authorities may not approve our product candidates even if they meet safety and efficacy endpoints in clinical trials." Forward-looking statements contained in this announcement are made as of this date, and we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

ALEXZA PHARMACEUTICALS, INC. (a development stage company) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Revenue $- $69 $9,514 $69 Operating expenses: Research and development 9,183 16,774 32,153 47,165 General and administrative 3,824 4,362 11,893 13,626 Restructuring charges - - 2,153 - --- --- ----- --- Total operating expenses 13,007 21,136 46,199 60,791 ------ ------ ------ ------ Loss from operations (13,007) (21,067) (36,685) (60,722) Gain on change in fair value of contingent liability 673 - 673 - Interest and other income/(expense), net 4 512 92 2,321 Interest expense (95) (203) (378) (736) --- ---- ---- ---- Net loss (12,425) (20,758) (36,298) (59,137) Consideration paid in excess of carrying value of the noncontrolling interest in Symphony Allegro, Inc. (61,566) - (61,566) - Net loss attributable to noncontrolling interest in Symphony Allegro, Inc. 1,568 6,066 13,987 15,714 ----- ----- ------ ------ Net loss attributable to Alexza common stockholders $(72,423) $(14,692) $(83,877) $(43,423) ======== ======== ======== ======== Net loss per share attributable to Alexza common stockholders $(1.95) $(0.45) $(2.44) $(1.35) ====== ====== ====== ====== Shares used to compute basic and diluted net loss per share attributable to Alexza common stockholders 37,060 32,610 34,388 32,122 ====== ====== ====== ====== ALEXZA PHARMACEUTICALS, INC. (a development stage company) CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) September 30, December 31, 2009 2008(1) ---- ------- ASSETS Current assets: Cash and cash equivalents $11,354 $26,036 Marketable securities 3,364 11,520 Investments held by Symphony Allegro, Inc. - 21,318 Prepaid expenses and other current assets 865 1,130 --- ----- Total current assets 15,583 60,004 Property and equipment, net 24,028 24,152 Restricted cash 400 400 Other assets 53 79 --- --- Total assets $40,064 $84,635 ======= ======= LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY Current liabilities: Accounts payable $4,628 $4,928 Accrued clinical trial expenses 600 1,294 Other accrued expenses 3,750 5,205 Deferred revenues - 1,667 Current portion of contingent liability 6,865 - Current portion of equipment financing obligations 3,626 4,139 ----- ----- Total current liabilities 19,469 17,233 Deferred rent 16,166 17,386 Deferred revenue - 7,847 Noncurrent portion of contingent liability 9,317 Noncurrent portion of equipment financing obligations - 2,515 Other noncurrent liabilities 3,380 600 Stockholders' (deficit) equity: Alexza Pharmaceuticals, Inc. stockholders' (deficit) equity: Preferred stock - - Common stock 4 3 Additional paid-in-capital 236,602 256,426 Deferred share-based compensation (19) (219) Other comprehensive income 1 28 Deficit accumulated during development stage (244,856) (222,545) -------- -------- Total Alexza Pharmaceuticals, Inc. stockholders' (deficit) equity (8,268) 33,693 Noncontrolling interest in Symphony Allegro, Inc. - 5,361 --- ----- Total stockholders' (deficit) equity (8,268) 39,054 ------ ------ Total liabilities and stockholders' (deficit) equity $40,064 $84,635 ======= ======= (1) Condensed consolidated balance sheet at December 31, 2008 has been derived from audited consolidated financial statements at that date, adjusted for the retrospective application of SFAS 160.

Alexza Pharmaceuticals, Inc.

CONTACT: Thomas B. King, President & CEO, +1-650-944-7634,
tking@alexza.com, or August J. Moretti, Senior Vice President and CFO,
+1-650-944-7788, amoretti@alexza.com; both of Alexza Pharmaceuticals, Inc.

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

The Allied Defense Group Announces Date of Third Quarter 2009 Financial Results and Conference Call

VIENNA, Va., Nov. 9 /PRNewswire-FirstCall/ -- The Allied Defense Group, Inc. (NYSE Amex: ADG) a multinational defense company focused on the manufacture, sale and distribution of ammunition and ammunition-related products and services for use by the U.S. and foreign governments, today announced that the Company will release financial results for the third fiscal quarter ended September 30, 2009 after the market close on Monday, November 16, 2009. The full text of the release and summary financial statements will be available on The Allied Defense Group's website by logging on to http://www.allieddefensegroup.com/. A conference call will follow at 5:00 p.m. (ET).

To access the conference call, interested parties may call (888) 286-2314 within the United States or (719) 325-2479 outside the United States. A replay of the call will be available from approximately 8:00 p.m. (ET) on November 16, 2009 through 11:59 p.m. (ET) on November 23, 2009. To access the replay, please call (888) 203-1112 in the United States, or (719) 457-0820 outside the United States, and enter the following code: 2628448.

About The Allied Defense Group, Inc.

The Allied Defense Group, Inc. is a multinational defense company focused on the manufacture, sale and distribution of ammunition and ammunition-related products and services for use by the U.S. and foreign governments.

For more information, please visit our web site: http://www.allieddefensegroup.com/.

Certain statements contained herein are "forward looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Because statements include risks and uncertainties, actual results may differ materially from those expressed or implied and include, but are not limited to, those discussed in filings by the Company with the Securities and Exchange Commission.

Contact: Geoff Grande, CFA FD P: 617-747-1721 F: 617-897-1511 geoff.grande@fd.com

The Allied Defense Group, Inc.

CONTACT: Geoff Grande, CFA, of FD, +1-617-747-1721, fax +1-617-897-1511,
geoff.grande@fd.com

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

Majesco Entertainment to Participate in Panel at BMO Capital Markets 17th Annual Digital Entertainment Conference

EDISON, N.J., Nov. 9 /PRNewswire-FirstCall/ -- Majesco Entertainment Company (the "Company"), an innovative provider of video games for the mass market, announced today that Gui Karyo, Executive Vice President of Operations, will participate in BMO Capital Markets 17th Annual Digital Entertainment Conference's Battling the Big Guns panel on Thursday, November 12, 2009 at 8:00 AM EST at the Grand Hyatt Hotel in New York, NY.

Majesco Entertainment will also host a demonstration booth at the conference exhibiting their recently released and critically acclaimed Wii(TM) game a boy and his blob.

A boy and his blob for Wii(TM) is a rebirth of the NES classic that expands upon the original platform adventure and features groundbreaking hand drawn and painted animation technology. By feeding the blob jelly beans, players can activate his special abilities to transform him into tools that help the pair solve puzzles, defeat monsters and escape danger. Nintendo Power called the game "stunning" and "fun," rating it 8.5 out of 10, and Game Informer awarded the "beautifully designed" game an 8 out of 10 noting it is also "charming and innovative."

About Majesco Entertainment Company

Majesco Entertainment Company is a provider of video games for the mass market. Building on more than 20 years of operating history, the company is focused on developing and publishing a wide range of casual and family oriented video games on Wii(TM), Nintendo DS(TM) and other leading systems. Franchise highlights include Cooking Mama(TM), Cake Mania® and Jillian Michaels' Fitness Ultimatum. The company's shares are traded on the Nasdaq Stock Market under the symbol: COOL. Majesco is headquartered in Edison, NJ and has an international office in Bristol, UK. More information about Majesco can be found online at http://www.majescoentertainment.com/. @Majesco is on twitter or at http://www.twitter.com/majesco.

Majesco Entertainment Company

CONTACT: John Gross, Chief Financial Officer, Majesco Entertainment
Company, +1-732-225-8910; Mike Smargiassi or Denise Roche, both of Brainerd
Communicators, Inc., +1-212-986-6667

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

Collectors Universe Reports Results for First Quarter Ended September 30, 2009Continuing Operations EPS of $0.22 for the quarter

NEWPORT BEACH, Calif., Nov. 9 /PRNewswire-FirstCall/ -- Collectors Universe, Inc. , a leading provider of value-added authentication and grading services to dealers and collectors of high-value collectibles, today announced financial results for its first fiscal quarter ended September 30, 2009.

Overview Continuing Operations First Quarter Fiscal 2010

For the first fiscal quarter of 2010, the Company reported net service revenues of $9.3 million, operating income of $1.8 million and income from continuing operations of $1.7 million, or $0.22 per diluted share. This compares to net service revenues of $9.0 million, operating income of $333,000 and income from continuing operations of $469,000, or $0.05 per diluted share for the first quarter of fiscal 2009.

Discontinued Operations First Quarter Fiscal 2010

For the three months ended September 30, 2009, losses from discontinued operations were $53,000 compared to losses from discontinued operations of $1.8 million or $0.19 per diluted share for the corresponding periods of fiscal 2009, reflecting the previously reported closure of our former jewelry businesses.

Net Income First Quarter Fiscal 2010

The resulting net income for the current first quarter was $1.7 million or $0.22 per diluted share compared to a net loss of $1.3 million, or $0.14 per diluted share for the first quarter of fiscal 2009.

Operational and Financial Highlights: -- Total service revenues increased by 3% in the current first quarter compared to the same quarter of last year due to an 11% increase in total coin service revenues. -- The Company's operating income for the current first quarter of $1.8 million was 19% of revenues compared with $333,000 or 4% of revenues in the first quarter of last year. -- On July 10, 2009 the Company completed a modified Dutch Auction Tender Offer and accepted for purchase 1.75 million shares at $5 per share at a cost (including expenses) of $8.9 million in cash. -- The Company's cash position at September 30, 2009 was $16.4 million. Subsequent to September 30, 2009, the Company collected a customer note receivable for $2.3 million, related to the CFC financing business. -- On October 26, 2009, the Company announced the resumption of its quarterly cash dividend to $0.25 per share per quarter payable on November 24, 2009 to stockholders of record on November 10, 2009.

Michael McConnell, Chief Executive Officer, stated, "We're encouraged by the first quarter financial results. Despite a difficult economic climate, our Company has worked diligently to improve operating margins by focusing on both productivity and efficiency initiatives. Further, the completion of the Dutch Tender and resumption of the quarterly dividend represent important actions taken to address our capital structure."

Results of Operations of our Continuing Businesses

The increase of $0.3 million or 3% in net service revenues in the current first quarter compared to the same quarter of the prior year was comprised of a 2% increase in grading and authentication fees and an 8% increase in related services. The 2% increase in grading and authentication fees was comprised of an increase of $0.4 million or 9% in coin fees and declines of $0.2 million or 8% in card and autograph fees and $0.1 million or 41% in stamp fees.

The improved gross profit margin to 60% compared with 54% for the first quarter of last year, reflects a higher proportion of coin revenues in the current year's first quarter as well as operational efficiencies achieved. In addition, there was no stock based compensation costs recognized in the cost of revenues in this year's first quarter.

The 18% reduction in operating expenses to $3.8 million in the current first quarter reflects lower G&A expenses for personnel, outside professional services and stock based compensation costs as compared to the same period of last year.

The resulting operating income of $1.8 million in the current first quarter at 19% of revenues was consistent with the operating income of 19% before non-cash impairment charges generated in the fourth quarter of fiscal 2009.

The income from continuing operations of $1.7 million or $0.22 per diluted share in the current first quarter compared with $0.5 million or $0.05 per diluted share for the first quarter of fiscal 2009 reflects the improved operating results and for the per share amounts, the reduction in the number of shares outstanding as a result of the Dutch Auction Tender Offer discussed above.

Financial Condition

At September 30, 2009, cash and cash equivalents totaled $16.4 million compared with $23.9 million at June 30, 2009. Net cash used in the current first quarter of $7.5 million was comprised of cash generated from continuing operations of $1.9 million offset by cash used of $8.9 million to repurchase shares in the Dutch Auction Tender Offer, $0.1 million used for capital expenditures and $0.4 million used in discontinued operations.

Outlook

McConnell continued, "Our strategy for the current fiscal year is to manage our core coin and trading cards businesses well - a simple "back-to-basic" mandate. Additionally, we are exploring ways to build upon the Company's leading market positions and solid business reputation, leverage our valuable proprietary content and extract incremental value from e-commerce transactions. Coin Facts, launched this summer, represents an excellent example of a growth initiative we will consider going forward."

Extension of Mr. McConnell's Employment as CEO through June 30, 2011

The Company also announced that Michael McConnell had agreed to extend his role as Chief Executive Officer of the Company through June 2011, pursuant to an employment contract entered into by Mr. McConnell and the Company.

Chairman of the Board A. Clinton Allen stated, "We are delighted that Mike McConnell will remain as our CEO through June of 2011. He has done a first class job guiding the Company through some difficult organizational changes. Further, his leadership and experience was particularly appreciated as we navigated through the worst recession since the 1930's. I and the board were very pleased when he agreed to the extension of his employment as CEO of the Company."

Conference Call and Webcast

Collectors Universe will host a conference call to discuss results on Monday, November 9, 2009 at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may participate in the conference call by dialing 888-549-7880 or 480-629-9867, five to ten minutes prior to the initiation of the call. A replay of the conference call will be available through November 24, 2009, by dialing 800-406-7325 or 303-590-3030 and entering access code 4181696#. A live webcast of the conference call will also be available on the Collectors Universe website, http://www.collectors.com/, under Investor Relations: Earnings Conference Calls. The webcast will be archived for 12 months.

About Collectors Universe

Collectors Universe, Inc. is a leading provider of value added services to the high-value collectibles markets. The Company authenticates and grades collectible coins, sports cards, autographs and stamps. The Company also compiles and publishes authoritative information about United States and world coins, collectible trading cards and sports memorabilia and collectible stamps and operates its CCE dealer-to-dealer Internet bid-ask market for certified coins and its Expos trade show and conventions business. This information is accessible to collectors and dealers at the Company's web site, http://www.collectors.com/, and is also published in print.

Cautionary Statements Regarding Forward Looking Information

This news release contains statements regarding our expectations, beliefs or views about our future financial performance, which constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or future or conditional verbs such as "will," "would," "should," "could," or "may."

Due to a number of risks and uncertainties to which our business is subject, our future financial performance may differ, possibly significantly, from our expected financial performance as set forth in the forward looking statements contained in this news release. Information regarding those risks and uncertainties, and their possible impact on our future financial performance, include, but are not limited to, the risk that economic conditions in the United States will not improve for some time and may even deteriorate further, which could result in reductions in the demand for our collectible grading services and, consequently, in our revenues; the risk that the current economic recession and credit crisis will lead to longer term changes in the spending habits of consumers and in the availability and use of credit by of smaller businesses, such as collectibles dealers, to fund purchases of collectibles, which could lead to longer term declines in collectibles commerce and, therefore, in the demand for our services; the risk that our strategy to offer new services in our continuing collectibles markets will not be successful in enabling us to improve our profitability or may even cause us to incur significant losses; and the risk that the commercial real estate market in New York City will deteriorate further, in which case we may not be able to sublease the offices and laboratory facilities in New York City formerly occupied by our jewelry businesses within the time periods and for the rents currently expected, which would cause our net rental payment obligations to be significantly higher than currently expected leading to reductions in cash flows and additional losses from discontinued operations in future periods.

Additional information regarding these risks and information regarding other risks and uncertainties to which our business is subject is contained in our Annual Report on Form 10-K for our fiscal year ended June 30, 2009 and our Quarterly Report on Form 10-Q for the first quarter ended September 30, 2009 filed with the Securities and Exchange Commission today. Due to these risks and uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release or in our Annual or Quarterly Reports, which speak only as of their respective dates. We also disclaim any obligation to update or revise any of the forward-looking statements as a result of new information, future events or otherwise, except as may be required by law or NASDAQ rules.

Contact: -------- Joseph Wallace Chief Financial Officer Collectors Universe 949-567-1245 Email: jwallace@collectors.com - tables to follow - COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended ------------------ September 30, ------------- 2009 2008 ---- ---- Net revenues $9,298 $9,043 Cost of revenues 3,739 4,126 ----- ----- Gross profit 5,559 4,917 Selling and marketing expenses 1,195 1,248 General and administrative expenses 2,568 3,336 ----- ----- Total operating expenses 3,763 4,584 ----- ----- Operating income 1,796 333 Interest income, net 14 126 Other income 26 10 --- --- Income before provision for income taxes 1,836 469 Provision for income taxes 127 - --- --- Income from continuing operations 1,709 469 Loss from discontinued operations (53) (1,766) --- ------- Net loss $1,656 $(1,297) ====== ======= Net income (loss) per basic share: Income from continuing operations $0.23 $0.05 Loss from discontinued operations (0.01) (0.19) ----- ----- Net income (loss) $0.22 $(0.14) ===== ======= Net income (loss) per diluted share: Income from continuing operations $0.22 $0.05 Loss from discontinued operations - (0.19) --- ----- Net income (loss) $0.22 $(0.14) ===== ======= Weighted average shares outstanding: Basic 7,551 9,146 Diluted 7,629 9,186 Dividends declared per common share $- $0.23 COLLECTORS UNIVERSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) September 30, June 30, 2009 2009 ---- ---- ASSETS Current assets: Cash and cash equivalents $16,372 $23,870 Accounts receivable, net of allowance of $76 at September 30 and $63 at June 30, 2009 1,379 1,252 Inventories, net 564 497 Prepaid expenses and other current assets 699 868 Customer notes receivable, net 2,321 2,340 Notes receivable from sale of net assets of discontinued operations 212 212 Current assets from discontinued operations 79 102 --- --- Total current assets 21,626 29,141 Property and equipment, net 1,235 1,174 Goodwill 2,826 2,626 Intangible assets, net 2,594 2,776 Note receivable from sale of net assets of discontinued operations 230 300 Other assets 125 74 Non-current assets of discontinued operations 182 182 --- --- $28,818 $36,273 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $1,152 $1,051 Accrued liabilities 1,672 1,344 Accrued compensation and benefits 1,110 1,341 Income taxes payable 324 252 Deferred income tax liability 71 60 Deferred revenue 1,588 1,883 Current liabilities of discontinued operations 1,632 1,827 ----- ----- Total current liabilities 7,549 7,758 Deferred rent 248 220 Net deferred income tax liability 197 208 Long-term liabilities of discontinued operations 3,135 3,308 Commitments and contingencies - - Stockholders' equity: Preferred stock, $.001 par value; 3,000 shares authorized at September 30, 2009 and; June 30, 2009; no shares issued or outstanding - - Common stock, $.001 par value; 20,000 shares authorized at September 30, 2009 and June 30, 2009; outstanding 7,661 at September 30, 2009 and 9,158 at June 30, 2009 8 9 Additional paid-in capital 67,212 75,957 Accumulated deficit (49,531) (51,187) ------- -------- Total stockholders' equity 17,689 24,779 ------ ------ $28,818 $36,273 ======= =======

Collectors Universe, Inc.

CONTACT: Joseph Wallace, Chief Financial Officer of Collectors Universe,
+1-949-567-1245, jwallace@collectors.com

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

Universal Technical Institute Schedules Fiscal 2009 Fourth Quarter Earnings Release and Conference Call

PHOENIX, Nov. 9 /PRNewswire-FirstCall/ -- Universal Technical Institute, Inc. , the leading provider of automotive technician training, announced today that it will report its financial results for the 2009 fourth quarter ended Sept. 30, 2009, on Tuesday, Dec. 1, 2009, prior to market open. UTI will host a conference call at 9:00 a.m. Eastern time (7:00 a.m. Mountain time) on the same day to discuss its fiscal 2009 fourth quarter financial results and operating performance. The conference call will feature President and Chief Executive Officer Kimberly McWaters and Executive Vice President and Chief Financial Officer Eugene Putnam.

To participate in the live call, investors are invited to dial (412) 858-4600 or (800) 860-2442. A live webcast of the call will be available via the Universal Technical Institute investor relations website at http://uti.investorroom.com/. Please go to the website at least 15 minutes early to register, download and install any necessary audio software. The conference call will also be archived for 60 days at http://uti.investorroom.com/.

About Universal Technical Institute

Universal Technical Institute is the leading provider of technical education training for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians as measured by total average undergraduate enrollment. The company offers undergraduate degree, diploma and certificate programs at 10 campuses across the United States, and manufacturer specific training programs that are sponsored by the manufacturer or dealer at dedicated training centers. Through its campus-based school system, Universal Technical Institute offers specialized technical education programs under the banner of several well-known brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) and NASCAR Technical Institute (NTI). We routinely post important information about us on our investor relations website at http://uti.investorroom.com/.

Safe Harbor Statement

All statements other than statements of historical fact could be deemed "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations and are subject to a number of uncertainties that could cause actual performance and results to differ materially from the results discussed in the forward-looking statements. Factors that could affect the company's actual results include, among other things, changes to federal and state educational funding, possible failure or inability to obtain regulatory consents and certifications for new or expanding campuses, potential increased competition, changes in demand for the programs offered by the company, increased investment in management and capital resources, the effectiveness of the company's recruiting, advertising and promotional efforts, changes to interest rates, low unemployment, general economic conditions and other risks that are described from time to time in the public filings of the company. Further information on these and other potential factors that could affect the company's financial results or condition may be found in the company's filings with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. The company expressly disclaims any obligation to publicly update any forward-looking statements whether as a result of new information, future events, changes in expectations, any changes in events, conditions or circumstances, or otherwise.

Universal Technical Institute, Inc.

CONTACT: Jenny Bruso, Director, Investor Relations of Universal
Technical Institute, Inc., +1-623-445-9351

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

DivX, Inc. Reports Third Quarter 2009 Financial ResultsDivX Fast Forwards Its Growth in New Product Categories Positioned to Redefine the Internet TV Experience Balance Sheet Remains Strong with $143 Million or $4.38 per Share in Cash and Investments

SAN DIEGO, Nov. 9 /PRNewswire-FirstCall/ -- DivX, Inc. , a leading digital media company, today announced results for the three and nine months ended September 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20081124/DIVXLOGO)

The Company reported revenues for the third quarter of $16.6 million, comprised of $14.6 million of technology licensing revenues and $2.0 million of media and other distribution and services revenues. This compares to revenues of $24.4 million reported for the same period a year ago, which included $19.1 million of technology licensing revenues and $5.3 million of media and other distribution and services revenues.

"DivX is undergoing an exciting transition in its business," stated Kevin Hell, Chief Executive Officer for DivX, Inc. "We are moving beyond our core DVD licensing business into new categories such as Blu-ray players, digital televisions, mobile phones and set-top-boxes, driven by our substantial progress with premium Hollywood content initiatives and our DivX Plus(TM) high definition software and hardware solutions. Additionally and perhaps even more notably, through our acquisition of AnySource Media in August, we believe we are well positioned to define the next big evolutionary step in the television experience - Internet TV. We believe the opportunity in front of us is transformational, and will drive the business to the next stage."

As part of the broader transition of its business, DivX today promoted Matt Milne to the position of Senior Vice President and General Manager, DivX Licensing. Prior to joining DivX in July 2009, Matt was Senior Vice President of Sales and Marketing for MediaFLO USA, a wholly owned subsidiary of Qualcomm Incorporated. Matt will assume the CE licensing responsibilities of Eric Rodli who has left the Company to pursue other interests. Added Hell, "We want to thank Eric for his contributions to DivX and wish him well in future endeavors."

The Company also announced that it plans to demo its Internet TV solution at the Consumer Electronics Show (CES) in Las Vegas on January 7-9, 2010.

GAAP net income in the third quarter of 2009 was approximately $4.0 million, or $0.12 per diluted share. DivX incurred a non-GAAP net loss of $319,000, or a loss of $0.01 per diluted share. Non-GAAP net loss and loss per diluted share exclude the following items: (1) a $9.5 million litigation settlement gain ($6.1 million, or $0.19 per diluted share, net of related taxes); (2) non-cash share-based compensation of approximately $2.3 million ($1.5 million, or $0.05 per diluted share, net of related taxes); (3) the scheduled amortization of purchased intangible assets related to the acquisition of MainConcept of $558,000 ($357,000, or $0.01 per diluted share, net of related taxes); (4) the foreign exchange benefit on the Company's Euro-denominated intercompany loan of $231,000 ($148,000, or less than $0.01 per diluted share, net of related taxes); and (5) a non-cash charge of approximately $120,000, or less than $0.01 per diluted share, related to the write-off of deferred tax assets associated with cancelled stock options.

Dan Halvorson, Chief Financial Officer and Executive Vice President Operations, added, "As reported by many partners and CE vendors, consumer spending continues to be weak but we once again delivered a solid quarter. We believe our focus on managing expenses keeps us on course while maximizing our ability to invest in the future growth of the business. We anticipate emerging products as a percentage of total technology licensing revenues will continue to grow and is projected to increase from approximately 16% for the third quarter to approximately 25% by the end of the fourth quarter of 2009. Our balance sheet remains strong with $143 million in cash and investments, or $4.38 per share, and we are focused on investing in technical innovation that drives growth in our core and new businesses."

Fourth Quarter 2009 Fiscal Outlook

The following table summarizes the Company's financial guidance for the fourth quarter of 2009. The following estimates are based on the Company's current business outlook as of the date of this press release:

Q4'09 Guidance ----------------- Revenue (in millions) $17.5 - $18.5 GAAP earnings (loss) per share, diluted ($0.05) - ($0.03) Adjustments: Non-cash share-based compensation expense, net of income taxes $0.05 Amortization of purchased intangibles, net of income taxes $0.01 ----------------- Non-GAAP earnings per share, diluted $0.01 - $0.03 ----------------- These estimates are based on: 1. Expected revenues for technology licensing of approximately 85% to 90% of total revenue for the fourth quarter of 2009; and revenues for media and other distribution and services of approximately 10% to 15% of total revenues for the fourth quarter of 2009; 2. A projected non-GAAP effective tax rate of approximately 40% for the fourth quarter of 2009 which is dependent on the effective tax rates in our various domestic and foreign jurisdictions; 3. Anticipated non-cash share-based compensation expense of approximately $2.4 million ($1.4 million, or $0.05 per diluted share, net of related taxes) for the fourth quarter of 2009; 4. The scheduled amortization of purchased intangible assets related to the acquisition of MainConcept and the impact of contingent consideration fair value true-ups related to the acquisition of AnySource Media of approximately $650,000 ($390,000, or $0.01 per diluted share, net of related taxes) for the fourth quarter of 2009; and 5. No significant foreign exchange benefit or expense on the Company's Euro-denominated intercompany loan. Quarterly Conference Call

DivX management will host a conference call and simultaneous audio webcast to discuss its third quarter 2009 results on November 9, 2009 at 1:30 p.m. Pacific Time or 4:30 p.m. Eastern Time. To participate in the call, please dial (888) 857-6932 or outside the U.S. (719) 457-2734 to access the conference call at least five minutes prior to the start time. A live audio webcast will be available on the Events and Presentations page at http://investors.divx.com/.

In addition, an audio replay of the call will be available between 7:30 p.m. Eastern Time November 9, 2009 and Midnight, Eastern Time November 16, 2009 by calling (888) 203-1112 or (719) 457-0820, with passcode 4032925.

About DivX, Inc.

DivX, Inc. is a leading digital media company that enables consumers to enjoy a high-quality video experience across any kind of device. DivX creates, distributes and licenses digital video technologies that span the "three screens" comprising today's consumer media environment -- the PC, the television and mobile devices. Over 200 million DivX devices have shipped into the market from leading consumer electronics manufacturers. DivX also offers content providers and publishers a complete solution for the distribution of secure, high-quality digital video content. Driven by a globally recognized brand and a passionate community of hundreds of millions of consumers, DivX is simplifying the video experience to enable the digital home. For more information, visit http://www.divx.com/.

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, references to the expected growth and earnings potential of the Company's business, the Company's position in the digital media space, including Internet TV, the Company's plans to participate in CES, the anticipated growth of emerging products as a percentage of the Company's total technology licensing revenues, the anticipated financial results for the fourth quarter of 2009, and the anticipated benefits of the acquisition of AnySource Media LLC to the Company, its customers and partners, including the ability of AnySource Media products and technology to increase the Company's market opportunity and accelerate penetration of key emerging products. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to: the risk that customer use of DivX technology may not grow as anticipated; the risk that anticipated market opportunities, including Internet TV, may not materialize at expected levels, or at all; uncertainties related to the current macroeconomic climate; the risk that the Company's activities may not result in the growth of profitable revenue; risks related to the implementation of the acquisition of AnySource Media; the risk that the Company's financial performance for the fourth quarter of 2009 may not meet expectations; risks and uncertainties related to the maintenance and strength of the DivX brand; the Company's ability to penetrate existing and new markets; the effects of competition; the Company's dependence on its licensees and partners; the effect of intellectual property rights claims; risks relating to the Company's ability to integrate acquired business and technologies into its existing infrastructure; and other factors discussed in the "Risk Factors" section of the Company's most recent reports filed with the SEC. All forward-looking statements are qualified in their entirety by this cautionary statement. DivX is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise, other than as required under applicable securities laws.

Non-GAAP Financial Measures; GAAP EPS

DivX has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP net income (loss) and earnings (loss) per diluted share, which excludes non-cash share-based compensation expense, the litigation settlement gain, the amortization of purchased intangible assets, the foreign exchange impact of our Euro-denominated intercompany loan, and the non-cash charge related to the change in value of certain deferred tax assets. This non-GAAP information is provided to enhance the reader's overall understanding of our current financial performance and prospects for the future. Specifically, we believe this information provides useful comparative data by excluding non-cash share-based compensation expense, which is not consistent from period-to-period. Also, we believe that the exclusion of the litigation settlement gain, amortization of purchased intangible assets, the foreign exchange impact of our Euro-denominated intercompany loan, and the change in value of certain tax deferred assets provides useful comparative data by reflecting our business operations in a manner that is consistent with expected future operations. Management has historically used non-GAAP net income (loss) and non-GAAP earnings (loss) per diluted share when evaluating operating performance because we believe the exclusion of the items described above provides an additional measure of our core operating results and facilitates comparisons of our core operating performance against prior periods and our business model objectives. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

We will continue to evaluate the factors that might impact non-cash share-based compensation expense and accruals for income tax expense. The non-cash share-based compensation expense is expected to vary depending on the number of new grants issued to both current and new employees, and changes in the Company's stock price, stock market volatility, expected option life, and risk-free interest rates (all of which are difficult to estimate). In addition, the factors that impact our deferred tax assets are expected to vary from period-to-period, also making our effective tax rate difficult to estimate.

DivX, Inc. CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) September 30, December 31, 2009 2008 ------------- ------------ (unaudited) Assets Current assets: Cash and cash equivalents $25,328 $43,442 Short-term investments 113,820 73,897 Accounts receivable, net 2,800 7,263 Deferred tax assets, current 3,062 1,841 Prepaid expenses and other current assets 6,220 4,732 -------- -------- Total current assets 151,230 131,175 Property and equipment, net 2,426 3,811 Long-term investments 4,070 17,968 Deferred tax assets, long-term 10,150 10,547 Purchased intangible assets, net 14,107 10,968 Goodwill 18,921 10,358 Other assets 7,855 8,574 -------- -------- Total assets $208,759 $193,401 ======== ======== Liabilities and stockholders' equity Current liabilities: Accounts payable $1,143 $1,319 Accrued expenses 10,830 7,909 Deferred revenue 5,471 6,185 -------- -------- Total current liabilities 17,444 15,413 Long-term liabilities 8,185 3,888 -------- -------- Total liabilities 25,629 19,301 Stockholders' equity 183,130 174,100 -------- -------- Total liabilities and stockholders' equity $208,759 $193,401 ======== ======== DivX, Inc. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, ---------------- ---------------- 2009 2008 2009 2008 ------- ------ ------- ------ Net revenues: Technology licensing $14,642 $19,108 $46,973 $54,596 Media and other distribution and services 1,993 5,301 3,573 16,154 ------ ------ ------ ------ Total net revenues 16,635 24,409 50,546 70,750 Cost of revenue: Cost of technology licensing 2,320 963 6,896 2,955 Cost of media and other distribution and services 120 190 432 548 ------ ------ ------ ------ Total cost of revenues 2,440 1,153 7,328 3,503 ------ ------ ------ ------ Gross margin 14,195 23,256 43,218 67,247 Operating expenses: Selling, general and administrative (1) (2) 12,696 13,300 37,280 41,849 Product development (1) (2) 5,612 4,642 14,946 15,433 Litigation settlement gain (9,500) - (9,500) - Impairment of acquired intangibles - - - 1,250 ------ ------ ------ ------ Total operating expenses 8,808 17,942 42,726 58,532 ------ ------ ------ ------ Income from operations 5,387 5,314 492 8,715 Interest income (expense), net 310 908 1,336 3,675 Other income (expense) 157 (677) 296 (175) ------ ------ ------ ------ Income before income taxes 5,854 5,545 2,124 12,215 Income tax provision 1,898 2,265 1,959 4,776 ------ ------ ------ ------ Net income $3,956 $3,280 $165 $7,439 ====== ====== ====== ====== Basic net earnings per share $0.12 $0.10 $0.01 $0.22 ====== ====== ====== ====== Diluted net earnings per share $0.12 $0.10 $0.01 $0.22 ====== ====== ====== ====== Shares used to compute basic net earnings per share 32,681 32,312 32,582 33,133 ====== ====== ====== ====== Shares used to compute diluted net earnings per share 33,031 32,818 32,931 33,688 ====== ====== ====== ====== (1) Includes share-based compensation as follows: Selling, general and administrative $1,573 $1,851 $5,286 $5,221 Product development 732 539 1,573 1,602 ------ ------ ------ ------ $2,305 $2,390 $6,859 $6,823 ====== ====== ====== ====== (2) Includes Stage6 operating costs and related accruals as follows: Selling, general and administrative $- $- $- $3,103 Product development - - - 230 ------ ------ ------ ------ $- $- $- $3,333 ====== ====== ====== ====== DivX, Inc. UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 2009 2008 2009 2008 ------- ------ ------- ------- Net Income: GAAP net income $3,956 $3,280 $165 $7,439 Share-based compensation 2,305 2,390 6,859 6,823 Amortization of purchased intangible assets 558 594 1,601 1,652 Fx impact on intercompany loan (231) 662 (205) 204 Litigation settlement gain (9,500) - (9,500) - Valuation allowance / adjustments on deferred tax assets 120 - 1,338 - Stage6 operating costs and related accruals - - - 3,333 Impairment of acquired intangibles - - - 1,250 Income tax effects of pre-tax adjustments 2,473 (1,556) 486 (5,638) ------ ------ ------ ------- Non-GAAP net income (loss) $(319) $5,370 $744 $15,063 ====== ====== ====== ======= Diluted earnings per share: GAAP diluted earnings per share $0.12 $0.10 $0.01 $0.22 Share-based compensation 0.07 0.07 0.21 0.20 Amortization of purchased intangible assets 0.02 0.02 0.05 0.05 Fx impact on intercompany loan (0.01) 0.02 (0.01) 0.01 Litigation settlement gain (0.29) - (0.29) - Valuation allowance / adjustments on deferred tax assets - - 0.04 - Stage6 operating costs and related accruals - - - 0.10 Impairment of acquired intangibles - - - 0.04 Income tax effects of pre-tax adjustments 0.08 (0.05) 0.01 (0.17) ------ ------ ------ ------- Non-GAAP diluted earnings (loss) per share $(0.01) $0.16 $0.02 $0.45 ====== ====== ====== ======= Non-GAAP shares used to compute diluted net earnings (loss) per share 32,681 32,818 32,931 33,688 ====== ====== ====== ======= The following table sets forth the computation of Non-GAAP basic and diluted net earnings (loss) per share: Numerator: Net income (loss) $(319) $5,370 $744 $15,063 Denominator: Weighted-average common shares outstanding (basic) 32,681 32,312 32,582 33,133 ====== ====== ====== ======= Weighted-average common shares outstanding (diluted) 32,681 32,818 32,931 33,688 ====== ====== ====== ======= Basic net earnings (loss) per share $(0.01) $0.17 $0.02 $0.45 ====== ====== ====== ======= Diluted net earnings (loss) per share $(0.01) $0.16 $0.02 $0.45 ====== ====== ====== ======= DivX, Inc. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW (in thousands) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 2009 2008 2009 2008 -------- ------- ------- ------- Net cash provided by operating activities $11,409 $14,504 $15,459 $16,896 Net cash (used in) provided by investing activities (9,293) (3,169) (34,658) 28,019 Net cash (used in) provided by financing activities 21 (76) 981 (19,458) Effect of exchange rate changes on cash (15) (62) 104 (7) ------- ------- ------- ------- Net increase (decrease) in cash and cash equivalents 2,122 11,197 (18,114) 25,450 Cash and cash equivalents at beginning of period 23,206 28,785 43,442 14,532 ------- ------- ------- ------- Cash and cash equivalents at end of period $25,328 $39,982 $25,328 $39,982 ======= ======= ======= =======

Photo: http://www.newscom.com/cgi-bin/prnh/20081124/DIVXLOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com DivX, Inc.

CONTACT: Investors, Karen Fisher of DivX, Inc., +1-858-882-6415,
kfisher@divxcorp.com; or Todd Friedman, todd@blueshirtgroup.com, or Stacie
Bosinoff, stacie@blueshirtgroup.com, both of The Blueshirt Group,
+1-415-217-7722; or Media, Jennifer Baumgartner of DivX, Inc.,
+1-503-901-5371, Jbaumgartner@divxcorp.com

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

TechTeam Global Reports Third Quarter 2009 Financial ResultsNet profits continue in Q3 2009 despite revenue decline in challenging economic environment Substantial improvement in cash flow and debt reduction through the first nine months of 2009, versus last year

SOUTHFIELD, Mich., Nov. 9 /PRNewswire-FirstCall/ -- TechTeam Global, Inc. , a worldwide provider of information technology outsourcing and business process outsourcing services, today reported net income of $0.9 million, or $0.08 per diluted share, for the three months ended September 30, 2009, compared to a net income of $1.9 million, or $0.18 per diluted share, for the three months ended September 30, 2008.

Third quarter highlights include the following: -- Revenue was $52.3 million, a decrease of $11.8 million or 18.4% from the third quarter 2008. The decrease was largely due to $1.9 million lower revenues from the divestiture of ANE (on October 31, 2008), an approximate $1.8 million impact of exchange rates on revenue, and an approximate $8.1 million or 13.1% decrease of revenue related to erosion and the previously announced wind-down of certain customer contracts. -- Cash provided by operations for the nine months ended September 30, 2009 was $16.4 million, a significant improvement over the $3.8 million in cash provided by operations for the same period in 2008, principally driven by improvements in profitability and working capital management. -- The Company reduced its total debt by $16.0 million during the nine months ended September 30, 2009. Approximately 46% of the Company's outstanding debt has been eliminated over the past nine months. -- Gross margin was 23.0% in the third quarter 2009, essentially flat versus 23.1% in the third quarter 2008. SG&A expense was $10.4 million in the third quarter 2009, a decrease of 6.1% from $11.0 million in the third quarter 2008. SG&A costs as a percent of revenue increased to 19.8% from 17.2% due to the revenue decline year over year. -- TechTeam was named to the No. 1 position globally in help desk outsourcing in the Black Book of Outsourcing 2009 Survey on Top Infrastructure Management Outsourcing Vendors. -- The Company continues to expand existing client relationships in its commercial business with numerous wins totaling $13 million in contract value, including substantial scope expansions with two large multi-national clients. -- The Company's government business unit was awarded numerous re-competes and option renewals in the quarter totaling approximately $15 million in contract value. Further, the business unit won new business totaling $2 million.

"The Company's third quarter 2009 results continued to be affected by a challenging global economic environment," said Gary J. Cotshott, President and Chief Executive Officer. "We experienced some revenue erosion and new business decision delays during the quarter. To counter the challenge of price pressure and volume reductions, we continue to manage costs very closely and quickly adjust capacity to meet changes in demand.

Despite the tough environment, customers continue to seek high quality, lower cost alternatives to support their IT infrastructure. As a result, our pipeline of new account opportunities continues to be strong. While decisions are subject to longer decision cycles, our pipeline provides a solid basis to recover lost revenue over time."

In the first quarter of fiscal 2009, management changed its methodology for evaluation of the performance of the Company's outsourcing services. As a result of this change, certain costs, which were previously included in Selling, general and administrative expense, are now being included in Cost of revenue in the Company's Condensed Consolidated Statement of Income because they are directly related to revenue. The Company's financial statements for fiscal year 2008 have been revised, for all periods presented, to conform to the current year presentation. This re-categorization of expenses did not change net income or earnings per share, for all periods presented, in fiscal year 2008. There was no cumulative effect to retained earnings as a result of this re-categorization, and there was no change to the carrying amount of assets and liabilities in fiscal 2008.

For additional financial information please refer to the Company's Form 10-Q, for the quarterly period ending September 30, 2009, filed today. Further information regarding the re-categorization of expense can be found in "Note 1 - Basis of Presentation" of the Form 10-Q.

Conference Call Information

TechTeam Global, Inc. will also host an investor teleconference to discuss its third quarter 2009 financial results at 4:30 p.m. EST, today, Monday November 9, 2009. To participate in the teleconference, including the question and answer session that will follow the results announcement and discussion, please call 1-877-941-8631 (outside the United States, call +1-480-629-9820). When prompted, enter the passcode: 4181028. To access a simultaneous Web cast of the teleconference, go to the TechTeam Global Web site at http://www.techteam.com/investors/investor-relations and click on the Web cast icon. From this site, you can download the necessary software and listen to the teleconference. TechTeam encourages you to review the site before the teleconference to ensure that your computer is configured properly.

A taped replay of the call will be available beginning at approximately 6:30 p.m. EST, Monday November 9, 2009. This toll-free replay will be available through Monday November 23, 2009. To listen to the teleconference replay, call 1-800-406-7325 (outside the United States, call +1-303-590-3030). When prompted, enter the passcode: 4181028.

About TechTeam Global, Inc.

TechTeam Global, Inc. is a leading provider of IT outsourcing and business process outsourcing services to large and medium businesses, as well as government organizations. The Company's primary services include service desk, technical support, desk-side support, security administration, infrastructure management and related professional services. TechTeam also provides a number of specialized, value-added services in specific vertical markets. Founded in 1979, TechTeam has nearly 3,000 employees across the world, providing IT support in 32 languages. TechTeam's common stock is traded on the NASDAQ Global Market under the symbol "TEAM." For more information, call 800-522-4451 or visit http://www.techteam.com/.

Safe Harbor Statement

The statements contained in this press release that are not purely historical, including statements regarding the Company's expectations, hopes, beliefs, intentions, or strategies regarding the future, are 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. Actual results may differ materially from those expected because of various known and unknown risks and uncertainties, including, but not limited to, the continuing effects of the U.S. recession and global credit environment, other changes in general economic and industry conditions, the award or loss of significant client assignments, timing of contracts, recruiting and new business solicitation efforts, currency fluctuations, and other factors affecting the financial health of our clients. These and other risks are described in the Company's most recent annual report on Form 10-K and subsequent reports filed with or furnished to the U.S. Securities and Exchange Commission. The forward-looking statements included in this press release are based on information available to the Company on the date hereof, and the Company assumes no obligation to update any such forward-looking statements.

Financial Tables to Follow on the Next Page Financial Data TechTeam Global, Inc. Condensed Consolidated Statements of Income (unaudited) (In thousands, except per share data) Third Quarter Ended Nine Months Ended September 30, September 30, % % 2009 2008 Change 2009 2008 Change Revenue Commercial - IT Outsourcing Services $26,184 $30,452 (14.0)% $80,462 $91,154 (11.7)% IT Consulting and Systems Integration 2,711 6,338 (57.2)% 9,780 21,283 (54.0)% Other Services 3,740 5,406 (30.8)% 11,981 19,358 (38.1)% ----- ----- ------ ------ Total Commercial 32,635 42,196 (22.7)% 102,223 131,795 (22.4)% Government Technology Services 19,713 21,988 (10.3)% 60,557 66,230 (8.6)% ------ ------ ------ ------ Total Revenue 52,348 64,184 (18.4)% 162,780 198,025 (17.8)% ------ ------ ------- ------- Cost of Revenue Commercial - IT Outsourcing Services 20,838 24,137 (13.7)% 62,903 72,847 (13.7)% IT Consulting and Systems Integration 2,083 4,988 (58.2)% 7,712 16,702 (53.8)% Other Services 2,860 4,189 (31.7)% 9,008 14,911 (39.6)% ----- ----- ----- ------ Total Commercial 25,781 33,314 (22.6)% 79,623 104,460 (23.8)% Government Technology Services 14,525 16,063 (9.6)% 43,841 48,391 (9.4)% ------ ------ ------ ------ Total Cost of Revenue 40,306 49,377 (18.4)% 123,464 152,851 (19.2)% ------ ------ ------- ------- Gross Profit 12,042 14,807 (18.7)% 39,316 45,174 (13.0)% Selling, general and administrative expense 10,351 11,021 (6.1)% 32,393 35,325 (8.3)% Restructuring charge (credit) (57) - (756) 3,884 --- --- ---- ----- Operating Income 1,748 3,786 (53.8)% 7,679 5,965 28.7% Net interest expense (314) (425) (918) (1,291) Foreign currency transaction loss (68) (277) (717) (46) --- ---- ---- --- Income before Income Taxes 1,366 3,084 6,044 4,628 Income tax provision 504 1,175 2,242 2,866 --- ----- ----- ----- Net Income $862 $1,909 $3,802 $1,762 ==== ====== ====== ====== Diluted Earnings per Common Share $0.08 $0.18 $0.36 $0.17 ===== ===== ===== ===== Diluted weighted average common shares and common share equivalents 10,754 10,592 10,664 10,540 ====== ====== ====== ====== Condensed Consolidated Balance Sheet (unaudited) (In thousands) September 30, December 31, 2009 2008 ---- ---- Current Assets Cash and cash equivalents $16,659 $16,881 Accounts receivable, net 49,599 59,705 Prepaid expenses and other current assets 4,148 4,315 ----- ----- Total current assets 70,406 80,901 ------ ------ Property, Equipment and Software, Net 7,017 8,327 Goodwill and Other Intangible Assets, Net 75,224 77,361 Other Assets 662 774 --- --- Total Assets $153,309 $167,363 ======== ======== Current Liabilities Current portion of long-term debt $7,944 $7,987 Accounts payable 5,670 6,340 Accrued payroll and related taxes 11,809 12,477 Accrued expenses and other current liabilities 8,539 11,670 ----- ------ Total current liabilities 33,962 38,474 ------ ------ Long-Term Liabilities Long-term debt, less current portion 11,203 27,202 Other long-term liabilities 2,305 2,954 ----- ----- Total long-term liabilities 13,508 30,156 ------ ------ Shareholders' Equity Preferred stock - - Common stock 111 109 Additional paid-in capital 79,385 77,939 Retained earnings 25,161 21,359 Accumulated other comprehensive income (loss) 1,182 (674) ----- ---- Total shareholders' equity 105,839 98,733 ------- ------ Total Liabilities and Shareholders' Equity $153,309 $167,363 ======== ======== Condensed Consolidated Statements of Cash Flows (unaudited) (In thousands) Nine Months Ended September 30, ----------------- 2009 2008 ---- ---- Operating Activities Net income $3,802 $1,762 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,059 5,813 Other adjustments, primarily changes in working capital 7,493 (3,755) ----- ------ Net cash provided by operating activities 16,354 3,820 ------ ----- Investing Activities Purchase of property, equipment and software (1,211) (2,101) Cash paid for acquisitions, net of cash acquired (375) (5,958) ---- ------ Net cash used in investing activities (1,586) (8,059) ------ ------ Financing Activities Proceeds from issuance of long-term debt 600 5,000 Proceeds (expenditures) from issuance of common stock (28) 351 Tax expense from stock options - (5) Payments on long-term debt (16,640) (4,227) ------- ------ Net cash provided by (used in) financing activities (16,068) 1,119 ------- ----- Effect of exchange rate changes on cash and cash equivalents 1,078 (440) ----- ---- Decrease in cash and cash equivalents (222) (3,560) Cash and cash equivalents at beginning of period 16,881 19,431 ------ ------ Cash and cash equivalents at end of period $16,659 $15,871 ======= ======= Reconciliation of Third Quarter and Year-to-Date Earnings Excluding Restructuring Charges to Net Income (In thousands, except per share data) 2009 2008 -------------------- ------------------- Earnings After-Tax Earnings After-Tax (Loss) Earnings per Share Earnings per Share --------- --------- --------- --------- Reconciliation of Third Quarter Earnings Excluding Restructuring Charges to Net Income Earnings excluding restructuring charges $805 $0.07 $- $- Restructuring charges, net of tax 57 0.01 - - -- ---- --- --- Net Income - Third Quarter $862 $0.08 $- $- ==== ===== == == Reconciliation of Year-to-Date Earnings Excluding Restructuring Charges to Net Income Earnings excluding restructuring charges $3,046 $0.29 $4,907 $0.47 Restructuring charges, net of tax 756 0.07 (3,145) (0.30) --- ---- ------ ----- Net Income - Year-to-Date $3,802 $0.36 $1,762 $0.17 ====== ===== ====== ===== Contacts: TechTeam Global, Inc. Margaret M. Loebl Vice President, Chief Financial Officer and Treasurer (248) 357-2866 investors@techteam.com Boscobel Marketing Communications Jessica Klenk (301) 588-2900 ext. 121 jklenk@boscobel.com

TechTeam Global, Inc.

CONTACT: TechTeam Global, Inc., Margaret M. Loebl, Vice President, Chief
Financial Officer and Treasurer, +1-248-357-2866, investors@techteam.com, or
Boscobel Marketing Communications, Jessica Klenk, +1-301-588-2900 ext. 121,
jklenk@boscobel.com

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

Entergy Announces Retirement of OfficersRetiring Entergy Nuclear Officer Slated to Join Enexus

NEW ORLEANS, Nov. 9 /PRNewswire-FirstCall/ -- Three Entergy Corporation officers have announced their retirement after distinguished careers spanning 30 to more than 40 years each.

Scheduled to retire later this month are Mike Kansler, president, chief executive officer and chief nuclear officer of Entergy Nuclear; John McGaha, senior vice president of Entergy Operations; and Bud Storey, vice president and deputy general counsel.

"Mike, John and Bud have all made invaluable contributions to the company throughout their many years of service," said Entergy Chairman and Chief Executive Officer J. Wayne Leonard. "All three have been outstanding leaders and will leave big shoes to fill at Entergy. They have planned for this day and helped to develop successors that are prepared and eager to continue the record of achievement set by their predecessors."

John Herron will assume Kansler's duties at Entergy and responsibility for Entergy's nuclear units located throughout New York, Massachusetts, Vermont, Michigan, Louisiana, Mississippi and Arkansas, as well as the company's management of the Cooper Nuclear Station in Nebraska. Herron will also take over Kansler's role as chief executive officer designate of EquaGen L.L.C., which will operate the six merchant nuclear units proposed to be spun off to Enexus Energy Corporation. Those units are located in New York, Massachusetts, Vermont and Michigan. EquaGen will also manage the Cooper Nuclear Station in Nebraska as part of the spin-off.

Herron currently serves as Entergy's senior vice president for nuclear operations. He previously served as chief operating officer of Entergy Nuclear Northeast overseeing the day-to-day operations of all Entergy's merchant nuclear units. Herron joined Entergy in February 2001 as vice president, operations at Waterford 3 Nuclear Station in Killona, La. He then moved to New York as the senior vice president of Indian Point Energy Center in February 2002. Herron's replacement will be named at a later date.

John McGaha will be retiring as executive vice president and chief operating officer of Entergy Nuclear South and president of Entergy Nuclear South. McGaha was named chief operating officer designate for Enexus Energy, Inc. in December 2007 and he has led the Project Management Office directing activities related to the spin-off of the non-utility nuclear business since that time. He plans to continue in the COO role at Enexus after his retirement from Entergy once the company completes the spin-off of the non-utility nuclear business.

McGaha joined Entergy in 1978 and held numerous roles from general manager of plant operations at Waterford 3 to vice president of the River Bend nuclear unit, both located in Louisiana.

Bud Storey, senior vice president and deputy general counsel, will retire after 15 years at Entergy. He oversaw Entergy attorneys in the Commercial General group located in Beaumont, Jackson and Little Rock. During his time at Entergy, Storey has played a lead role in matters as central as the Entergy New Orleans bankruptcy after Hurricane Katrina and a broad swath of commercial litigation crucial to the company's overall operations and successes.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $13 billion and approximately 14,700 employees.

Entergy's online address is http://www.entergy.com/.

Entergy Corporation

CONTACT: Alex J. Schott of Entergy Corporation, +1-504-576-4238,
aschott@entergy.com

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

Hologic Announces Fourth Quarter and Fiscal 2009 Operating ResultsQuarterly Revenues and Performance Exceed Guidance and Expectations Rob Cascella Promoted to Chief Executive Officer

BEDFORD, Mass., Nov. 9 /PRNewswire-FirstCall/ -- Hologic, Inc. (Hologic or the Company) , a leading developer, manufacturer and supplier of premium diagnostics, medical imaging systems and surgical products dedicated to serving the healthcare needs of women, today announced its results for the fourth quarter and fiscal year ended September 26, 2009. In addition, Hologic today announced the Board of Directors has promoted Robert Cascella to Chief Executive Officer effective November 5, 2009. Mr. Cascella has been President and Chief Operating Officer since 2003. He succeeds Jack Cumming, who will remain on as Chairman of the Board and a member of the executive management team.

Highlights of the quarter include: -- Revenues of $402.8 million. -- Fourth quarter 2009 net income was $34.9 million, or $0.13 per diluted share, calculated in accordance with U.S. generally accepted accounting principles (GAAP). -- Fourth quarter 2009 non-GAAP adjusted net income was $72.4 million, or $0.28 per diluted share, and adjusted EBITDA (non-GAAP adjusted earnings before interest, taxes, depreciation and amortization) was $149.3 million. A reconciliation of GAAP to non-GAAP results is included as an attachment to this press release. -- Food and Drug Administration (FDA) approval in July 2009 of our Adiana permanent contraception system and 510(k) clearance in August 2009 of our MammoSite ML Radiation Therapy System for the treatment of early-stage breast cancer. -- CE marking approval received in September 2009 for our ThinPrep integrated imager for cervical cancer screening. -- Shipment of the Company's 5,000th Selenia full field digital mammography system. -- Term loan to fund the Third Wave Technologies acquisition reduced from an initial balance of $540 million at July 24, 2008 to $174.2 million as of September 26, 2009 and further reduced to $149.5 million as of today.

Fourth quarter fiscal 2009 revenues totaled $402.8 million, a decrease of 9.0% when compared to revenues of $442.5 million in the fourth quarter of fiscal 2008. The decrease was primarily attributable to the year-over-year decline in sales of Selenia systems. We believe this decline continues to be due, in large part, to the current economic environment and the resulting delays and reductions in hospital capital spending as compared to the same period in the prior fiscal year. Also contributing to this decline, to a lesser extent, was the year-over-year decline in Skeletal Health product revenues of $5.9 million. These declines were partially offset by: (i) growth in Diagnostics and GYN Surgical product sales of $14.7 million as compared to the fourth quarter of fiscal 2008, including an increase of $3.7 million from Third Wave, which we acquired in July 2008; and (ii) an $8.7 million, or 17.9%, increase in service and other revenues primarily related to our increased installed base of Selenia full field digital mammography systems.

For the fourth quarter of fiscal 2009, Hologic reported net income of $34.9 million, or $0.13 per diluted share, compared with a net loss of $144.4 million, or $0.56 per diluted share, in the fourth quarter of fiscal 2008. Included in fourth quarter fiscal 2009 results were: (i) a charge of $46.3 million attributable to the amortization of intangibles relating to the Cytyc merger and the Third Wave acquisition; (ii) a full quarter of costs and expenses from Third Wave of $13.8 million (excluding amortization expense); and (iii) operating charges of $2.0 million related to the closure of the Company's organic photoconductor drum coatings manufacturing operations in Shanghai, which the Company had acquired as part of its acquisition of AEG in fiscal 2006. Included in the fourth quarter of fiscal 2008 results were charges relating to the Third Wave acquisition of: (i) $195.2 million attributable to acquired in-process research and development costs; (ii) $3.9 million attributable to the increase in cost of revenues relating to the write-up of acquired inventory to fair value; (iii) $1.1 million attributable to the amortization of intangibles; and (iv) $0.5 million of stock-based compensation incurred in connection with the termination of former Third Wave officers. Also included was a charge of $25.5 million attributable to the amortization of intangibles relating to the Cytyc merger.

The Company's non-GAAP adjusted net income for the fourth quarter of fiscal 2009 decreased 6.2% to $72.4 million compared to $77.2 million in the fourth quarter of fiscal 2008. The Company's fiscal 2009 fourth quarter non-GAAP adjusted net income primarily excludes $51.8 million of amortization of the intangible assets acquired since fiscal 2006 and operating charges of $2.0 million related to the closure of the Company's organic photoconductor drum coatings manufacturing operations in Shanghai. The Company's fiscal 2008 fourth quarter non-GAAP adjusted net income primarily excludes: (i) $32.0 million of amortization of the intangible assets acquired since fiscal 2006; (ii) a $195.2 million in-process research and development charge related to the acquisition of Third Wave; and (iii) a $3.9 million increase in cost of revenues related to the write up of acquired inventory of Third Wave to fair value.

Non-GAAP adjusted net income, non-GAAP adjusted earnings per diluted share (EPS), and adjusted EBITDA are non-GAAP financial measures. The Company's definitions of these non-GAAP financial measures, and the reconciliations of these measures to the Company's comparable GAAP financial measures for the periods presented, are set forth in the supplemental information attached to this press release. When analyzing the Company's operating performance, investors should not consider these non-GAAP measures as a substitute for the comparable financial measures prepared in accordance with GAAP.

For the twelve months ended September 26, 2009, revenues totaled $1.64 billion, a 2.2% decrease compared to revenues of $1.67 billion in the twelve months ended September 27, 2008. The decrease was primarily attributable to the year-over-year decline in sales of Selenia systems, which the Company attributes largely to the more difficult economic and capital spending environment. Partially offsetting this decrease was: (i) the inclusion of a full year of revenues from the Diagnostics and GYN Surgical product lines acquired in the merger with Cytyc on October 22, 2007 compared to 49 weeks in fiscal 2008; (ii) a $38.1 million, or 22.1%, increase in service and other revenues primarily related to our increased installed base of Selenia full field digital mammography systems; and (iii) an increase in product revenues of $31.3 million from our acquisition of Third Wave in July 2008.

For the twelve months ended September 26, 2009, Hologic reported a net loss of $2.18 billion, or $8.48 per diluted share, compared with a net loss of $385.6 million, or $1.57 per diluted share, for the comparable twelve-month period in fiscal 2008. Included in the twelve months of fiscal 2009 results were: (i) $2.34 billion for the impairment of goodwill relating to reporting units acquired from Cytyc, as discussed below; (ii) $205.6 million of amortization of intangibles acquired since fiscal 2006; (iii) $4.1 million attributable to the write-off of certain intangible assets; (iv) operating charges of $2.0 million related to the closure of the Company's organic photoconductor drum coatings manufacturing operations in Shanghai; and (v) $1.2 million attributable to the increase in cost of revenues relating to the write-up of Third Wave inventory to fair value. Also included was a full year of costs and operating expenses of $60.8 million (excluding amortization expense) from Third Wave as compared to $15.3 million for nine weeks in fiscal 2008 (excluding an in-process research and development charge and amortization expense). Included in fiscal 2008 results were: (i) charges relating to the Cytyc merger and Third Wave acquisition of $565.2 million attributable to acquired in-process research and development; (ii) $119.5 million attributable to the amortization of intangibles acquired since fiscal 2006; (iii) $46.3 million attributable to the increase in cost of revenues relating to the write-up of acquired inventory to fair value; (iv) $11.8 million primarily attributable to compensation-related charges associated with the Cytyc merger and Third Wave acquisition; and (v) a charge of $2.9 million related to impairment of acquired intangible assets.

The Company's non-GAAP adjusted net income for the twelve months ended September 26, 2009 increased 2.4% to $301.7 million compared to $294.7 million in the twelve months ended September 27, 2008. The Company's fiscal 2009 non-GAAP adjusted net income primarily excludes: (i) $2.34 billion for the impairment of goodwill relating to reporting units acquired from Cytyc; (ii) $205.6 million of amortization of intangibles acquired since fiscal 2006; (iii) $4.1 million attributable to the write-off of certain intangible assets; (iv) operating charges of $2.0 million related to the closure of the AEG organic photoconductor drum coatings manufacturing operations in Shanghai; and (v) $1.2 million attributable to the increase in cost of revenues relating to the write-up of Third Wave inventory to fair value. The Company's fiscal year 2008 non-GAAP adjusted net income primarily excludes: (i) $119.5 million of amortization of intangibles acquired since fiscal 2006 ($97.2 million specifically related to Cytyc and Third Wave); (ii) $565.2 million of in-process research and development charges related to the merger with Cytyc and the acquisition of Third Wave; (iii) $46.3 million attributable to the increase in cost of revenues relating to the write-up of acquired inventory to fair value; (iv) $11.8 million primarily relating to compensation-related charges associated with the Cytyc merger; and (v) a charge of $2.9 million related to impairment of acquired intangible assets.

Based on a combination of factors, including the deterioration in the macro-economic environment, declines in the stock market and the decline in the price of the Company's common stock, the Company experienced a significant decline in its market capitalization during the first quarter of fiscal 2009. As a result, the Company completed a goodwill impairment analysis as of December 27, 2008 using the two-step approach, as required under U.S. GAAP, and determined that a portion of its goodwill was impaired. As a result, in the second quarter of fiscal 2009, the Company recorded a non-cash charge of $2.34 billion. In addition, the Company also recorded a charge of $4.1 million for the write-off of certain intangible assets and recorded such charge within cost of revenues in fiscal 2009. These non-cash charges are included in the non-GAAP adjustments in the financial information presented in this release. A further discussion of our non-GAAP fiscal 2009 results and guidance is included in the attachment to this press release.

As of September 26, 2009, total backlog for all products was $323.1 million.

"We are pleased with our performance for the fourth quarter of fiscal 2009," said Rob Cascella, President and Chief Executive Officer. "We not only exceeded our revenue guidance, but we once again exceeded our guidance for EPS. Although the economic environment continues to impact our capital equipment sales, we are very pleased with the continued performance of our Diagnostics and GYN Surgical segments, which performed at or above our expectations for both the fourth quarter and full year. Fiscal 2009 was a year of execution - we operated Third Wave for a full fiscal year following its acquisition, substantially completed the integration of our merger with Cytyc, significantly reduced our operating expenses, generated adjusted EBITDA of $600.8 million, and obtained FDA approvals or clearances of two Cervista HPV tests, the Adiana permanent contraception system and MammoSite ML and we launched the new Eviva breast biopsy device. We believe all of these successes have positioned Hologic for long-term growth."

Fourth quarter revenue overview by segment: -- Breast Health revenues, which include the Company's Mammography, R2, Suros, MammoPad, MammoSite, DRC and AEG products, totaled $174.8 million for the fourth quarter of fiscal 2009 compared to $221.0 million for the same period in fiscal 2008. This decrease was primarily due to fewer Selenia systems sold, as well as product mix and configuration differences, resulting in a reduction in Selenia product revenues. This decrease was partially offset by an increase in service revenues related to our increased installed base of Selenia full field digital mammography systems and, to a lesser extent, an increase in revenues from our breast biopsy products. -- Diagnostics revenues, which include the Company's ThinPrep products, fetal fibronectin test, and Third Wave products, totaled $138.7 million, including $9.7 million from Third Wave, for the fourth quarter of fiscal 2009. The third quarter marked the U.S. launch of our two Cervista HPV tests following FDA approval of our pre-market approval applications (PMA) for those products on March 13, 2009. As expected, the revenue contributions from these products in the current fourth quarter were modest. Total Diagnostics revenues for the fourth quarter of fiscal 2008 were $133.7 million, including $5.9 million from Third Wave. -- GYN Surgical revenues, which include the Company's NovaSure endometrial ablation system and Adiana permanent contraception system, totaled $67.3 million for the fourth quarter of fiscal 2009 compared to $59.7 million for the fourth quarter of fiscal 2008. This increase was primarily due to an increase in the number of NovaSure systems sold. Adiana, which was approved by the FDA in July 2009, contributed modestly in the fourth quarter of fiscal 2009, as both the U.S. and international market launches were limited. -- Skeletal Health revenues, which include the Company's osteoporosis assessment and mini C-arm product lines, decreased to $22.0 million for the fourth quarter of fiscal 2009 from $28.1 million for the fourth quarter of fiscal 2008. This decrease was primarily the result of decreased system sales of the mini C-arm and osteoporosis assessment product lines, which continue to face the difficult capital equipment buying environment and ongoing effects of the reduction in reimbursement for osteoporosis assessment exams in the U.S. Rob Cascella promoted to Chief Executive Officer:

The Board of Directors has promoted Robert Cascella to Chief Executive Officer, only the third Chief Executive Officer in Hologic's 23-year history. Mr. Cascella has served as President and Chief Operating Officer since 2003. Mr. Cascella has over 25 years of industry experience. Prior to joining Hologic, he was a managing partner of an investment banking firm specializing in healthcare and has held various executive management positions in the field of breast cancer diagnostics and therapeutics.

Jack Cumming, who previously served as Chairman and Chief Executive Officer, will remain Chairman of the Board and a member of the executive management team. Under Mr. Cumming's leadership beginning in 2001, the Company has grown from revenues of $75 million to over $1.6 billion and from a market capitalization of $200 million to approximately $4 billion. Mr. Cumming intends to continue his focus on international expansion opportunities, a major growth initiative of Hologic, as well as to work more closely with our customers.

"Although my decision to end my tenure as Hologic's Chief Executive Officer did not come lightly, the transition of my role to Rob has been a work-in-process for quite some time," said Jack Cumming, Chairman. "Over the years Rob has been an active leader in setting the strategic direction of the Company and has played an integral role for product, market and resource integration following each of our many acquisitions. Rob's extensive expertise, coupled with his strong leadership qualities, make him an ideal choice to take over my role and he has my wholehearted confidence and support. I am very excited to continue to work with Rob and the executive team and continue my focus on international growth and new business opportunities."

FDA approval of our Adiana permanent contraception system:

On July 6, 2009, the FDA approved the Company's PMA application for its Adiana permanent contraception system. The Adiana system is designed to provide women a minimally-invasive, non-incision alternative to traditional, surgical means of permanent contraception. Patients are normally able to return to work or resume their daily activities within one day. In contrast, tubal ligation, a traditional method of permanent contraception, requires more invasive surgical procedures, usually are conducted in a hospital under general anesthesia and typically require four to five days of recovery. As a result, this more invasive surgical procedure can pose serious risk of complications. With the Adiana system, the Company is now able to provide physicians with another non-hormone, minimally-invasive treatment that addresses a significant issue for women in their post-childbearing years.

FDA clearance of the 510K application for our MammoSite ML radiation therapy system:

On August 27, 2009, the FDA cleared the Company's 510(k) application for the MammoSite ML radiation therapy system for the treatment of early-stage breast cancer. With its multi-lumen design, this new device gives radiation oncologists the ability to shape the radiation dose for typical cases and treat patients who are otherwise not appropriate candidates for traditional brachytherapy. Hologic's MammoSite therapy system, first cleared by the FDA in 2002 as a single-lumen device, is the most widely used form of accelerated partial breast irradiation (APBI) in the United States. The MammoSite system is designed to provide the physician with the ability to deliver targeted radiation therapy directly to the area where cancer is most likely to recur, allowing a full course of radiation to be delivered in just five days and enhancing patient comfort. Additionally, targeted therapy of the breast limits radiation exposure to normal, healthy tissue. The Company began a limited launch of the new MammoSite ML last month, and we anticipate a full commercial launch during the current quarter (quarter ending December 26, 2009).

CE marking for our ThinPrep integrated imager:

The integrated imager represents the latest innovation in cervical cancer screening by combining proven ThinPrep imaging technology and slide review into a single, convenient stand-alone device. The ThinPrep integrated imager is designed to provide the small and medium volume laboratory access to effective and efficient cytology screening technology, while allowing them the flexibility to address their specific productivity and throughput needs. The majority of laboratories in Europe would fall into the small or medium category. The integrated imager is designed to enable the cytotechnologist to perform slide review effectively and efficiently. The integrated imager can also be used as a conventional microscope saving valuable lab space.

Financial Guidance:

The Company's guidance for fiscal 2010 reflects its current core products and does not reflect any future revenue or earnings from any product currently before the FDA awaiting approval or clearance.

In fiscal 2010, the Company will adopt Accounting Standards Codification (ASC) 470-20 (formerly FASB Staff Position No. APB 14-1), "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)," which will increase the Company's interest expense by approximately $17 million in the first quarter and $71 million for the full year of fiscal 2010. Such amount is reflected in the EPS guidance below. However, as the additional interest expense is a non-cash item, the Company will include this as a reconciling item to arrive at non-GAAP adjusted net income and EPS.

First Quarter Fiscal 2010 (Quarter ending December 26, 2009): -- The Company expects first quarter fiscal 2010 revenues to be approximately $400 million to $405 million, comparable with the fourth quarter of fiscal 2009, reflecting an increase in revenues in the GYN Surgical and Diagnostics segments, offset by an anticipated decrease in the Breast Health segment, primarily related to the Selenia full field digital system. -- The Company expects EPS to be approximately $0.06 to $0.08 and non-GAAP adjusted EPS to be approximately $0.24 to $0.26. Fiscal 2010 (Year ending September 25, 2010): -- The Company expects fiscal 2010 revenues to be approximately $1.625 billion to $1.650 billion, driven primarily by an increase in revenues in the GYN Surgical and Diagnostics segments, as well as from Service, with continued softness in the Breast Health segment, primarily related to the mammography product line. In addition, the Company has discontinued three products that contributed the following revenues in Fiscal 2009: -- The AEG organic photoconductor drum coatings manufacturing operations in Shanghai - $8 million; -- Digital detectors supplied to an OEM - $8 million; -- Molecular tests no longer marketed as an analyte specific reagent (ASR) - $5 million. -- The Company expects EPS to be approximately $0.42 to $0.46 and non-GAAP adjusted EPS to be approximately $1.15 to $1.19.

A reconciliation of the Company's GAAP to non-GAAP fiscal 2010 projections is included as an attachment to this press release.

Hologic may incur expenses or charges or realize income or gains in fiscal 2010 that could cause actual results to vary from the guidance above. In addition, the Company is continuing to monitor the effects of the U.S. and general worldwide economic and regulatory conditions and related uncertainties, including proposed healthcare reform and associated tax proposals, which, along with other uncertainties facing our business, could adversely affect anticipated results.

Conference Call and Webcast:

Hologic's management will host a conference call on Monday, November 9, 2009, at 5:00 p.m. (EST) to discuss fourth quarter and fiscal 2009 operating results. Interested participants may listen to the call by dialing 877-719-9786 or 719-325-4786 for international callers and referencing access code 9714531 approximately 15 minutes prior to the call. For those unable to participate in the live broadcast, a replay will be available one hour after the call ends through Friday, November 20, 2009, at 888-203-1112 or 719-457-0820 for international callers, access code 9714531. The Company will also provide a live webcast and archive of the call on the investor relations page of the Company's website at http://www.hologic.com/investor. A replay of the call will also be archived on this same website. A PowerPoint presentation related to the conference call will be posted after the close of the market on Monday, November 9, 2009 on the investor relations page of the Company's website.

About Hologic, Inc.:

Hologic, Inc. is a leading developer, manufacturer and supplier of premium diagnostics products, medical imaging systems and surgical products dedicated to serving the healthcare needs of women. Hologic's core business units are focused on breast health, diagnostics, GYN surgical, and skeletal health. Hologic provides a comprehensive suite of technologies with products for mammography and breast biopsy, radiation treatment for early-stage breast cancer, cervical cancer screening, treatment for menorrhagia, permanent contraception, osteoporosis assessment, preterm birth risk assessment, mini C-arm for extremity imaging and molecular diagnostic products including HPV and reagents for a variety of DNA and RNA analysis applications.

Hologic, Adiana, AEG, BioLucent, Cervista, Cytyc, Eviva, MammoSite, MammoSite ML, MammoPad, NovaSure, R2, Selenia, Suros, ThinPrep and Third Wave and associated logos are trademarks and/or registered trademarks of Hologic, Inc. and/or its subsidiaries in the United States and/or other countries.

Forward-Looking Statement Disclaimer:

This News Release contains forward-looking information that involves risks and uncertainties, including statements regarding the Company's plans, objectives, expectations and intentions. Such statements include, without limitation, statements regarding: the expected continued market challenges; the Company's backlog and any implication that the Company's backlog may be indicative of future sales; the Company's expectations regarding product development and the performance of existing products; the Company's growth objectives; and the Company's outlook and financial and other guidance. These forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated.

The Company's backlog consists of purchase orders for which delivery is scheduled within the next twelve months, as specified by the customer. In certain circumstances, orders included in backlog may be canceled or rescheduled by customers without significant penalty. Therefore, backlog as of any particular date should not be relied upon as indicative of the Company's revenues for any future period.

Other risks and uncertainties that could adversely affect the Company's business and prospects, and otherwise cause actual results to differ materially from those anticipated, include without limitation: the continued U.S. and general worldwide economic conditions and related uncertainties, including the recent global financial turmoil and associated economic downturn; the Company's reliance on third party reimbursement policies to support the sales and market acceptance of its products, including the possible adverse impact of government regulation and changes in the availability and amount of reimbursement; uncertainties regarding proposed healthcare reform and associated tax proposals; the Company's ability to integrate its acquisitions and business combinations effectively; uncertainties inherent in the development of new products and the enhancement of existing products, including FDA approval and/or clearance and other regulatory risks, technical risks, cost overruns and delays; the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; manufacturing risks, including the Company's reliance on a single or limited source of supply for key components, and the need to comply with especially high standards for the manufacture of many of its products; the Company's ability to predict accurately the demand for its products, and products under development, and to develop strategies to address its markets successfully; the early stage of market development for certain of the Company's products; the risk of adverse events and product liability claims; risks related to the use and protection of intellectual property; expenses and uncertainties relating to litigation; technical innovations that could render products marketed or under development by the Company obsolete; competition; the risks of conducting business internationally, including the effect of exchange rate fluctuations on those operations; financing risks, including the Company's obligation to meet financial covenants and payment obligations under the Company's financing arrangements and leases; and the Company's ability to attract and retain qualified personnel.

The risks included above are not exhaustive. Other factors that could adversely affect the Company's business and prospects are described in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.

Contact: Deborah R. Gordon Vice President, Investor Relations Hologic, Inc. (781) 999-7716 HOLOGIC, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) ASSETS September 26, September 27, 2009 2008 ---- ---- CURRENT ASSETS: Cash and cash equivalents $293,186 $95,661 Restricted cash 916 3,629 Accounts receivable, net 263,231 321,299 Inventories 182,780 174,667 Deferred income tax assets 52,165 53,660 Prepaid expenses and other current assets 29,238 44,662 ------ ------ Total current assets 821,516 693,578 ------- ------- Property and equipment, net 271,628 283,975 Intangible assets, net 2,424,812 2,629,651 Goodwill 2,108,963 4,450,496 Other assets 62,909 76,932 ------ ------ $5,689,828 $8,134,632 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY September 26, September 27, 2009 2008 ---- ---- CURRENT LIABILITIES: Current portion of notes payable $38,373 $38,480 Accounts payable 46,589 59,590 Accrued expenses 137,284 154,746 Deferred revenue 97,544 78,559 Deferred gain 9,500 9,500 ----- ----- Total current liabilities 329,290 340,875 ------- ------- Notes payable, net of current portion 139,955 437,420 Convertible debt 1,725,000 1,725,000 Deferred income tax liabilities 912,970 920,838 Deferred revenue 11,364 10,777 Other long-term liabilities 58,534 57,453 ------ ------ Total long-term liabilities 2,847,823 3,151,488 --------- --------- STOCKHOLDERS' EQUITY: Common stock 2,579 2,564 Capital in excess of par value 4,898,422 4,853,837 Accumulated deficit (2,393,881) (217,644) Accumulated other comprehensive income 7,028 4,945 Treasury stock, at cost (1,433) (1,433) ------ ------ Total stockholders' equity 2,512,715 4,642,269 --------- --------- $5,689,828 $8,134,632 ========== ========== HOLOGIC, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended September 26, September 27, 2009 2008 ---- ---- REVENUES $402,767 $442,513 COSTS AND EXPENSES (1): Cost of revenues 156,719 176,571 Cost of revenues - amortization of intangible assets 39,240 25,661 Research and development 22,700 20,944 Selling and marketing 56,575 67,793 General and administrative 38,171 38,294 Amortization of acquired intangible assets 12,854 6,542 Restructuring charge 797 - Acquired in-process research and development - 195,200 --- ------- 327,056 531,005 ------- ------- Income (loss) from operations 75,711 (88,492) Interest income 162 799 Interest and other expense, net (15,620) (21,640) ------- ------- Income (loss) before provision for income taxes 60,253 (109,333) Provision for income taxes 25,313 35,041 ------ ------ Net income (loss) $34,940 $(144,374) ======= ========= Net income (loss) per common share: Basic $0.14 $(0.56) ===== ====== Diluted $0.13 $(0.56) ===== ====== Weighted average number of common shares outstanding: Basic 257,038 256,060 ======= ======= Diluted 259,884 256,060 ======= ======= (1) Stock-based compensation included in costs and expenses during the three months ended September 26, 2009 was $897 for cost of revenues, $865 for research and development, $1,156 for selling and marketing and $5,668 for general and administrative. Stock-based compensation included in costs and expenses during the three months ended September 27, 2008 was $542 for cost of revenues, $1,024 for research and development, $1,085 for selling and marketing and $3,525 for general and administrative. HOLOGIC, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Twelve Months Ended September 26, September 27, 2009 2008 ---- ---- REVENUES $1,637,134 $1,674,499 COSTS AND EXPENSES (1): Cost of revenues 620,064 686,671 Cost of revenues - amortization of intangible assets 155,519 95,310 Cost of revenues - impairment of acquired intangible assets 4,065 - Research and development 94,328 81,421 Selling and marketing 238,977 261,524 General and administrative 148,825 147,405 Amortization of acquired intangible assets 51,210 25,227 Restructuring charge 797 6,383 Impairment of goodwill 2,340,023 - Impairment of acquired intangible assets - 2,900 Acquired in-process research and development - 565,200 --- ------- 3,653,808 1,872,041 --------- --------- Loss from operations (2,016,674) (197,542) Interest income 1,161 4,528 Interest and other expense, net (73,162) (86,127) ------- ------- Loss before provision for income taxes (2,088,675) (279,141) Provision for income taxes 87,562 106,476 ------ ------- Net loss $(2,176,237) $(385,617) =========== ========= Net loss per common share: Basic $(8.48) $(1.57) ====== ====== Diluted $(8.48) $(1.57) ====== ====== Weighted average number of common shares outstanding: Basic 256,545 245,968 ======= ======= Diluted 256,545 245,968 ======= ======= (1) Stock-based compensation included in costs and expenses during the twelve months ended September 26, 2009 was $3,522 for cost of revenues, $3,960 for research and development, $5,161 for selling and marketing and $20,296 for general and administrative. Stock-based compensation included in costs and expenses during the twelve months ended September 27, 2008 was $2,293 for cost of revenues, $2,806 for research and development, $3,487 for selling and marketing, $15,137 for general and administrative and $1,941 for restructuring. HOLOGIC, INC. RECONCILIATION OF GAAP EPS AND NET INCOME (LOSS) TO NON-GAAP ADJUSTED EPS, NET INCOME AND EBITDA (Unaudited) (In thousands, except earnings per share) Three Months Three Months Ended Ended September 26, September 27, 2009 2008 ---- ---- EARNINGS PER SHARE GAAP earnings (loss) per share- Diluted $0.13 $(0.56) Adjustments to net income (loss) (as detailed below) 0.15 0.86 ---- ---- Non-GAAP adjusted earnings per share- Diluted $0.28 (1) $0.30 (1) ===== ===== NET INCOME GAAP net income (loss) $34,940 $(144,374) Adjustments: Fair value write-up of acquired Third Wave inventory 83 3,933 Amortization of intangible assets acquired since fiscal 2006 51,805 31,968 Stock-based compensation associated with the termination of former Third Wave officers - 480 Operating charges relating to the closure of the Company's organic photoconductor drum coatings manufacturing operations in Shanghai and related costs 2,002 - Acquired in-process research and development - 195,200 Income tax effect primarily related to reconciling items (16,387)(2) (9,995)(3) ------- ------ Non-GAAP adjusted net income $72,443 $77,212 ======= ======= EBITDA Non-GAAP adjusted net income $72,443 Interest expense, net 16,283 Provision for income taxes 41,700 Depreciation and amortization not adjusted above 18,828 ------ Adjusted EBITDA $149,254 ======== EXPLANATORY NOTES: (1) Non-GAAP adjusted earnings per share was calculated based on 259,884 and 259,242 weighted average diluted shares outstanding for the three months ended September 26, 2009 and September 27, 2008, respectively. (2) To reflect an estimated annual effective tax rate of 35.0% on a non-GAAP basis. (3) To reflect an estimated annual effective tax rate of 36.8% on a non-GAAP basis. HOLOGIC, INC. RECONCILIATION OF GAAP EPS AND NET LOSS TO NON-GAAP ADJUSTED EPS, NET INCOME AND EBITDA (Unaudited) (In thousands, except earnings per share) Twelve Months Twelve Months Ended Ended September 26, September 27, 2009 2008 ---- ---- EARNINGS PER SHARE GAAP loss per share- Diluted $(8.48) $(1.57) Adjustments to net loss (as detailed below) 9.65 2.75 ---- ---- Non-GAAP adjusted earnings per share- Diluted $1.17 (1) $1.18 (1) ===== ===== NET LOSS GAAP net loss $(2,176,237) $(385,617) Adjustments: Fair value write-up of acquired Third Wave and Cytyc inventory in fiscal 2009 and 2008, respectively 1,167 46,258 Amortization of intangible assets acquired since fiscal 2006 205,592 119,518 Impairment of goodwill 2,340,023 - Impairment of acquired intangible assets 4,065 2,900 Stock-based compensation associated with the termination of former Third Wave officers and acceleration of vesting/modification of the terms of certain equity awards related to the Cytyc merger - 5,405 Operating charges relating to the closure of the Company's organic photoconductor drum coatings manufacturing operations in Shanghai and related costs 2,002 - Restructuring - 6,383 Acquired in-process research and development related to the Third Wave acquisition and the Cytyc merger - 565,200 Income tax effect primarily related to reconciling items (74,899)(2) (65,391)(3) ------- ------- Non-GAAP adjusted net income $301,713 $294,656 ======== ======== EBITDA Non-GAAP adjusted net income $301,713 Interest expense, net 68,341 Provision for income taxes 162,461 Depreciation and amortization not adjusted above 68,332 ------ Adjusted EBITDA $600,847 ======== EXPLANATORY NOTES: (1) Non-GAAP adjusted earnings per share was calculated based on 258,901 and 250,569 weighted average diluted shares outstanding for the twelve months ended September 26, 2009 and September 27, 2008, respectively. (2) To reflect an estimated annual effective tax rate of 35.0% on a non-GAAP basis. (3) To reflect an estimated annual effective tax rate of 36.8% on a non-GAAP basis. Non-GAAP Financial Guidance:

This press release also includes estimates of future non-GAAP adjusted earnings and earnings per share. A reconciliation of these amounts to expected GAAP results is presented below:

Diluted Three Months Ended Earnings December 26, 2009 Shares per Share ----------------- ------ --------- (In thousands, except per share amounts) Projected GAAP Net Income $16,000 - $21,000 260,000 $0.06 - $0.08 Adjustments: Cost of revenues - amortization of intangible assets 44,000 (1) Amortization of acquired intangible assets 13,000 (1) Non-cash interest expense relating to recently-issued accounting guidance for convertible debt 17,000 (2) Income tax effect of reconciling items (27,000)(3) -------- Projected Non-GAAP Net Income $63,000 - $68,000 260,000 (4) $0.24 - $0.26 ================= ======= ============= Diluted Twelve Months Ended Earnings September 25, 2010 Shares per Share ------------------ ------ --------- (In thousands, except per share amounts) Projected GAAP Net Income $110,000 - $120,000 260,000 $0.42 -$0.46 Adjustments: Cost of revenues - amortization of intangible assets 174,000 (1) Amortization of acquired intangible assets 54,000 (1) Non-cash interest expense relating to recently-issued accounting guidance for convertible debt 71,000 (2) Income tax effect of reconciling items (109,000) (3) --------- Projected Non-GAAP Net Income $300,000 - $310,000 260,000 (4) $1.15 - $1.19 =================== ======= ============= Explanatory Notes: (1) To exclude the on-going, non-cash amortization of the intangible assets. (2) To exclude the additional non-cash interest expense. (3) To reflect an estimated annual effective tax rate of 36% for the first quarter and full year of fiscal 2010 on a non-GAAP basis. (4) To reflect estimated diluted weighted average shares outstanding of 260,000 for the first quarter and full year of fiscal 2010, respectively. Use of Non-GAAP Financial Measures:

The Company has presented the following non-GAAP financial measures in this press release: adjusted net income; adjusted EPS; and adjusted EBITDA. The Company defines its non-GAAP net income to exclude the non-cash amortization of intangible assets acquired by the Company since 2006 and impairment of goodwill and intangible assets, other acquisition-related charges, such as charges associated with the write-off of acquired in-process research and development and the write-up of acquired inventory to fair value, non-cash charges resulting from changes in GAAP, and other one-time, nonrecurring, unusual or unanticipated charges, expenses or gains. As set forth in the applicable reconciliation tables above, non-GAAP adjusted net income and non-GAAP adjusted EPS for the periods presented exclude the following items from GAAP net income (loss) and EPS: (i) non-cash expenses associated with the Company's recent acquisitions, including the write-off of goodwill and intangible assets, amortization of intangible assets, stock-based compensation expense associated with the termination of acquired employees, acceleration of the vesting or other modification of the terms of equity awards as a result of an acquisition, and the write-off of acquired research and development; (ii) non-cash interest expense resulting from the Company's adoption of ASC 470-20 (formerly FSP APB 14-1) in fiscal 2010; (iii) the increase in cost of revenues resulting from the write-up of acquired inventory sold during the applicable period; and (iv) restructuring charges. The Company's non-GAAP adjusted EBITDA excludes from its GAAP net income (loss): (i) the items excluded in its calculation of adjusted net income; (ii) interest expense, net; (iii) provision for income taxes; and (iv) depreciation and amortization expense not otherwise excluded in calculating its non-GAAP adjusted net income.

The Company believes the use of non-GAAP adjusted net income and non-GAAP EPS are useful to investors in comparing the results of operations in fiscal 2009 to the comparable period in fiscal 2008 by eliminating certain of the more significant effects of the acquisitions that took place since fiscal 2006 and non-cash charges resulting from changes in GAAP. These measures also reflect how the Company manages the business internally and sets operational goals, and forms the basis of certain of its management incentive programs. In addition to the adjustments set forth in the calculation of the Company's non-GAAP adjusted net income, its non-GAAP adjusted EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. As with the items eliminated in its calculation of non-GAAP adjusted net income, these items may vary for different companies for reasons unrelated to the overall operating performance of a company's business. The items excluded from the Company's calculation of its non-GAAP adjusted EBITDA presented herein are also excluded in the calculation of its non-GAAP adjusted EBITDA under its senior secured borrowing arrangements and used by the Company and its lenders in determining its compliance with its financial covenants under those arrangements. When analyzing the Company's operating performance, investors should not consider these non-GAAP financial measures as a substitute for net income (loss) or EPS prepared in accordance with GAAP.

Hologic, Inc.

CONTACT: Deborah R. Gordon, Vice President, Investor Relations of
Hologic, Inc., +1-781-999-7716

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

Advanced Photonix, Inc. Reports Second Quarter Fiscal 2010 ResultsStrong first half gross profit margins despite recession's impact

ANN ARBOR, Mich., Nov. 9 /PRNewswire-FirstCall/ -- Advanced Photonix, Inc.® (NYSE Amex: API) (the "Company") today reported its second quarter fiscal 2010 results ending September 25, 2009.

Financial Highlights for the Second Quarter Ended September 25, 2009 -- Net sales for the quarter were $5.4 million, a decrease of $.5 million, or 8%, compared to revenues for the first quarter ended June 26, 2009. The decrease was broad based across four of its five markets. -- Gross profit margin for the first six months was 45% compared to 46% for the prior year six month period, despite a 29% drop in revenue compared to the record revenues in the first half of last year. Strong gross margins reflect the results of company-wide cost reduction initiatives and prior years' facilities consolidation activities. -- GAAP net loss for the quarter was $1,192,000, or $.05 per diluted share, as compared to a GAAP net loss of $326,000, or $.01 per diluted share for the quarter ended September 26, 2008. GAAP net loss year to date was $1,488,000 or $.06 per diluted share, as compared to a net loss of $179,000, or $.01 per diluted share, for the prior year period. -- The Non-GAAP net loss for the second quarter of fiscal 2010 was $452,000, or $0.02 per diluted share, as compared to a Non-GAAP net income of $306,000, or $.01 per diluted share, for the comparable quarter ended September 26, 2008. The Company reported year to date Non-GAAP net loss of $137,000, or $0.01 per diluted share, as compared to a Non-GAAP income of $1,173,000, or $0.05 per diluted share, for the comparable prior year period. -- On an EBITDA basis (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), the Company reported EBITDA of a negative $220,000 for the second quarter of fiscal 2010 as compared to positive EBITDA of $557,000 for the quarter ended September 26, 2008. For the year to date, the Company reported positive EBITDA of $334,000 as compared to positive EBITDA of $1,592,000 for the comparable prior year period.

Richard Kurtz, Chairman and Chief Executive Officer, commented, "As we previously stated, the first half of the year was negatively impacted by the recessionary environment and this quarter was in line with our expectations. We have taken the necessary cost reduction steps to minimize the impact of the revenue shortfall in the first half of the year and anticipate second half revenue to show a return to growth driven mainly by our HSOR and Terahertz product platforms. While we do not anticipate top line revenue to meet 2009 numbers, predominantly due to the industrial product market being closely tied to the overall economy, we do expect the second half of the year to show growth over the first six months and with the reduced cost structure, a return to GAAP profitability. We continue to invest in our product platforms that position us for additional future growth as the overall economy improves."

The Company will hold a conference call to discuss the results for the second quarter ended September 25, 2009 on Monday, November 9, 2009, at 4:30 PM EST. Participants can dial into the conference call at 888-713-4217 (617-213-4869 for international) using the pass code 82275901. The call will be webcast live by CCBN and can be accessed at Advanced Photonix's web site at http://investor.advancedphotonix.com/ or at http://www.earnings.com/. An audio replay of the call will be available shortly thereafter the same day and will remain on-line for two weeks. The replay number is 888-286-8010 (617-801-6888 for international) using pass code 37880498.

Forward-looking Statements:

The information contained herein includes forward-looking statements that are based on assumptions that management believes to be reasonable but are subject to inherent uncertainties and risks including, but not limited to, risks associated with the move of our wafer fabrication facilities, technological obsolescence of existing product lines and technological obstacles which may prevent or slow the development and/or manufacture of new products, limited (or slower than anticipated) customer acceptance of new products which have been and are being developed by the Company and a decline in the general demand for optoelectronic products.

CONSOLIDATED BALANCE SHEETS Assets September 25, 2009 March 31, 2009 Current Assets Cash and cash equivalents $1,642,000 $2,072,000 Restricted cash 500,000 500,000 Accounts receivable, net 3,199,000 3,284,000 Inventories, net 3,782,000 3,669,000 Prepaid expenses and other current assets 348,000 252,000 ------- ------- Total current assets 9,471,000 9,777,000 Equipment & Leasehold Improvements, at cost 11,297,000 11,470,000 Accumulated depreciation (7,455,000) (7,148,000) ----------- ----------- Net Equipment and Leasehold Improvements 3,842,000 4,322,000 Goodwill 4,579,000 4,579,000 Patents, net 779,000 705,000 Intangible assets, net 7,253,000 8,270,000 Other assets 388,000 388,000 ------- ------- Total assets $26,312,000 $28,041,000 =========== =========== Liabilities and shareholders' equity Current liabilities Accounts payable and accrued expenses 2,308,000 2,484,000 Compensation and related withholdings 911,000 1,037,000 Current portion of long-term debt - fair value of warrant liability 22,000 - Current portion of long-term debt - related parties 1,401,000 1,401,000 Current portion of long-term debt - bank term loan 434,000 434,000 Current portion of long-term debt - MEDC 789,000 353,000 ------- ------- Total current liabilities 5,865,000 5,709,000 Long term debt, less current portion - MEDC 1,435,000 1,871,000 Long-term fair value warrant liability less current portion 325,000 - Long term debt, less current portion - line of credit 1,394,000 1,394,000 Long term debt, less current portion - bank term loan 904,000 1,121,000 ------- --------- Total liabilities 9,923,000 10,095,000 Shareholders' equity Class A common stock, $.001 par value, 50,000,000 shares authorized; September 25, 2009 - 24,433,978, shares issued and outstanding; March 31, 2009 - 24,089,726 shares issued and outstanding 24,000 24,000 Additional paid-in capital 50,006,000 52,400,000 Accumulated deficit (33,641,000) (34,478,000) ------------ ------------ Total shareholders' equity 16,389,000 17,946,000 Total liabilities and shareholders' equity $26,312,000 $28,041,000 =========== =========== Condensed Consolidated Statement of Operations ---------------------------------------------- Three months ended Six months ended ------------------ ---------------- September September September September 25, 26, 25, 26, 2009 2008 2009 2008 Net Sales $5,424,000 $8,188,000 $11,358,000 $15,958,000 Cost of Sales 3,360,000 4,624,000 6,297,000 8,638,000 --------- --------- --------- --------- Gross Margin 2,064,000 3,564,000 5,061,000 7,320,000 Other Operating Expenses Research & Development 1,167,000 1,081,000 2,230,000 2,209,000 General & Administrative 981,000 1,432,000 2,154,000 2,515,000 Amortization 518,000 518,000 1,033,000 1,044,000 Wafer Fab Consolidation -- 48,000 40,000 208,000 Sales & Marketing 418,000 710,000 869,000 1,330,000 ------- ------- ------- --------- Total Other Operating Expenses 3,084,000 3,789,000 6,326,000 7,306,000 Net Operating Income (Loss) (1,020,000) (225,000) (1,265,000) 14,000 Other (Income) & Expense Other (Income) /Expense (2,000) 2,000 8,000 2,000 Change in fair value of warrant liability 92,000 -- 53,000 -- Interest Income (2,000) (12,000) (3,000) (28,000) Interest Expense -Related Parties 15,000 28,000 29,000 55,000 Interest Expense 69,000 83,000 136,000 164,000 ------ ------ ------- ------- Other (Income) & Expense 172,000 101,000 223,000 193,000 Net Income (Loss) $(1,192,000) $(326,000) $(1,488,000) $(179,000) Net income (loss) per share $(0.05) $(0.01) $(0.06) $(0.01) Diluted income (loss) per share $(0.05) $(0.01) $(0.06) $(0.01) Weighted number of shares outstanding 24,343,000 24,060,000 24,241,000 24,035,000 Anti-diluted weighted number of shares 24,343,000 24,060,000 24,241,000 24,035,000 Non-GAAP Financial Measures The Company provides Non-GAAP Net Income and EBITDA as supplemental financial information regarding the Company's operational performance. These Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Non-GAAP Net Income and EBITDA should not be considered in isolation from or as a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from similar measures used by other companies. Reconciliation of Non-GAAP Net Income and EBITDA to GAAP net income and loss are set forth in the financial schedule section below. Reconciliation of Non-GAAP Income (loss) to GAAP Income (loss) Three months ended Six months ended ------------------ ---------------- September September September September 25, 26, 25, 26, 2009 2008 2009 2008 Net Income (Loss) $(1,192,000) $(326,000) $(1,488,000) $(179,000) Add Back: Change in warrant fair value liability 92,000 -- 53,000 -- Amortization - intangibles/patents 518,000 518,000 1,033,000 1,044,000 Stock Option Compensation Expense 130,000 66,000 225,000 100,000 Other Expense - Wafer Fabrication -- 48,000 40,000 208,000 Subtotal - Add backs 740,000 632,000 1,351,000 1,352,000 Non-GAAP Income (Loss) $(452,000) $306,000 $(137,000) $1,173,000 Net earnings per share $(0.02) $0.01 $(0.01) $0.05 Diluted earnings per share $(0.02) $0.01 $(0.01) $0.05 Weighted Number of shares outstanding 24,343,000 24,060,000 24,241,000 24,035,000 Diluted shares outstanding 24,343,000 24,060,000 24,241,000 24,035,000 Reconciliation of EBITDA to GAAP income/(loss) Three months ended Six months ended ------------------ ---------------- September September September September 25, 26, 25, 26, 2009 2008 2009 2008 Net Income (Loss) $(1,192,000) $(326,000) $(1,488,000) $(179,000) Add Back: Net Interest expense (income) 83,000 99,000 163,000 191,000 Change in warrant fair value liability 92,000 - 53,000 - Depreciation Expense 279,000 267,000 573,000 536,000 Amortization 518,000 517,000 1,033,000 1,044,000 Subtotal - Add backs 972,000 883,000 1,822,000 1,771,000 EBITDA $(220,000) $557,000 $334,000 $1,592,000 About Advanced Photonix, Inc.

Advanced Photonix, Inc. (R) (NYSE Amex: API) is a leading supplier with a broad offering of optoelectronic products to a global customer base. We provide optoelectronic solutions, high-speed optical receivers and terahertz instrumentation for telecom, homeland security, military, medical and industrial markets. With our patented technology and state-of-the-art manufacturing we offer industry leading performance, exceptional quality, and high value added products to our OEM customer base. For more information visit us on the web at http://www.advancedphotonix.com/.

Contact: Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600 Cameron Donahue, Hayden IR (651) 653-1854; cameron@haydenir.com

Advanced Photonix, Inc.

CONTACT: Richard Kurtz of Advanced Photonix, Inc., +1-734-864-5600; or
Cameron Donahue of Hayden IR, +1-651-653-1854; cameron@haydenir.com, for
Advanced Photonix, Inc.

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

Live Nation Reports Strong Third Quarter 2009 Results- Revenue growth of 14% to $1.8 billion driven by a 12% increase in attendance - - Income from continuing operations before taxes growth of 53% to $96 million - - Free Cash Flow nearly doubles to $123 million -

LOS ANGELES, Nov. 9 /PRNewswire-FirstCall/ -- Live Nation released financial results for the three months ended September 30, 2009 today.

(Logo: http://www.newscom.com/cgi-bin/prnh/20081203/LAW048LOGO-b) Quarterly Summary Results Unaudited; $ in millions Q3 2009 Q3 2008 ------- ------- Revenue $1,808.3 $1,588.5 Adjusted Operating Income $160.8 $109.5 Operating Income $114.8 $75.5 Free Cash Flow $123.2 $64.4

"We generated robust organic growth from our operations during the third quarter as we focused on executing our fundamentals with excellence during the peak concert season," said Michael Rapino, President and Chief Executive Officer of Live Nation. "Our dedication to driving efficiencies across our core operations helped drive solid free cash flow of $123 million in the third quarter as we continue to focus on reducing our overall leverage. Our ability to generate strong attendance growth of 12% despite the worst economic climate in decades speaks to the strength of our concert platform and our ongoing focus on improving how we promote, price and distribute live music products to millions of fans globally."

"The launch of our new e-commerce ticketing site has allowed us to start vertically integrating into a high-growth sector and improve our core business of selling more tickets directly to fans," Rapino continued. "There is more that we want to do, but Livenation.com is already a highly ranked music destination attracting millions of fans daily, seeking tickets and information on their favorite concerts. Despite a challenging advertising environment, we have also grown our sponsorship revenue by almost 5% year-to-date which illustrates our ability to connect brands, concerts and music fans. With these growth levers, along with our disciplined approach to cost management, we believe that we are well-positioned to deliver healthy gains in our annual cash flows with a priority on reducing our long-term debt and strengthening our balance sheet."

Highlights: -- Recently completed the sale of our remaining U.K. theater assets, in two transactions, for aggregate gross sales proceeds of approximately $160 million. Half of the net proceeds, currently estimated at approximately $111 million, will be applied as a permanent reduction in our term loans. -- Through our LiveNation.com network, we have sold 10.6 million tickets globally since the beginning of 2009, including 3.0 million tickets sold in the third quarter of 2009. This total for the year includes 1.7 million tickets sold internationally. -- We had continued success with our "No Service Fee Wednesday" promotion, selling over 816,000 tickets in North America through this program during 2009. -- Our LiveNation.com network was ranked 5th by Nielsen NetView among the most-visited domestic music websites, with 5.0 million unique visitors in the month of July. Traffic to our website has increased by over 55% in the first nine months of the year as compared to last year. -- Reported revenue of $1.8 billion for the third quarter reflects an increase of $220 million over the third quarter of 2008. Revenue on a constant currency basis was up 19% over the prior year. -- Sponsorship revenue totaled $78.5 million during the third quarter, an increase of 4.4% over the prior year. In October 2009, Live Nation formed a multi-year strategic sponsorship and marketing alliance with Coca-Cola that leverages the company's artist-to-fan distribution platform. -- Income from continuing operations for the third quarter was $79.2 million as compared to $30.7 million in 2008, after adjusting 2008 for the tax benefit of $64.1 million recorded in continuing operations related to discontinued operations. For the first nine months of 2009, the loss from continuing operations was ($50.8) million as compared to ($59.6) million in 2008, after adjusting 2008 for the tax benefit of $83.1 million recorded in continuing operations related to discontinued operations. -- We continue the process of seeking regulatory approval for our pending merger with Ticketmaster Entertainment, Inc. and we currently expect that this transaction will be completed in the first quarter of 2010. For the third quarter of 2009, we incurred $7.8 million of acquisition transaction expenses. These costs are now required to be expensed under new accounting rules in 2009 and therefore reduced our operating income for the period.

Key operating metrics related to our business for the third quarter and nine months ended September 30 are outlined below:

METRICS ------- (Unaudited; $ in millions except as noted) Q3 Q3 9 months 9 months Key Drivers 2009 2008 Variance 2009 2008 Variance ----------- ---- ---- -------- ---- ---- -------- Global Music ------------ Talent Costs and Other Event Direct Operating Expenses $1,459.2 $1,288.6 13.2% $2,659.3 $2,559.3 3.9% Talent and Other Event Expenses as % of Total Revenue 82.8% 82.3% 81.5% 80.9% Number of Live Rights (Concerts) (est.) 4,750 4,790 (0.8%) 14,902 15,103 (1.3%) Total Attendance (est.) 19,551,000 17,471,000 11.9% 39,721,000 38,836,000 2.3% Ancillary Revenue per Attendee - NA Music Amps only* $17.58 $17.02 3.3% $17.78 $17.24 3.1% Total Revenue per Attendee $90.18 $89.60 0.6% $82.13 $81.47 0.8% ------ ------ ---- ------ ------ ---- Sponsorship ----------- Number of Sponsors (est.) - as of September 30, 2009 793 770 3.0% 793 770 3.0% Sponsorship Revenue Recognized $78.5 $75.2 4.4% $144.6 $138.2 4.6% Average Revenue per Sponsor (rounded, whole $) $99,000 $98,000 1.0% $182,000 $179,000 1.7% ------- ------- ---- -------- -------- ---- * Excludes rentals FINANCIAL HIGHLIGHTS - 3rd QUARTER ---------------------------------- (Unaudited) ----------- Q3 2009 Q3 2008 Growth ------- ------- ------ $ in millions Revenue North American Music $1,036.2 $962.3 7.7% International Music 726.9 603.1 20.5% Ticketing 30.2 6.7 ** Other 15.0 16.4 (8.5%) ---- ---- ----- $1,808.3 $1,588.5 13.8% ======== ======== ===== Margins Adjusted Operating ------- Income (Loss) Q3 2009 Q3 2008 ------- ------- North American Music $99.4 $75.5 31.6% 9.6% 7.8% International Music 57.6 47.2 22.0% 7.9% 7.8% Ticketing 12.5 (5.1) ** 41.4% ** Other 5.4 2.6 ** Corporate (14.1) (10.7) (31.8%) ----- ----- ------ ---- ---- $160.8 $109.5 46.9% 8.9% 6.9% ====== ====== ===== ==== ==== Operating Income (Loss) North American Music $71.9 $56.6 27.0% 6.9% 5.9% International Music 50.7 38.6 31.3% 7.0% 6.4% Ticketing 9.5 (6.5) ** 31.5% ** Other 6.4 0.4 ** Corporate (15.9) (13.6) (16.9%) ----- ----- ------ ---- ---- $122.6 $75.5 62.4% 6.8% 4.8% ------ ----- ----- ---- ---- Acquisition Transaction Expenses: International Music (0.7) - ** Corporate (7.1) - ** ----- --- --- ---- ---- $114.8 $75.5 52.1% 6.3% 4.8% ====== ===== ===== ==== ==== ** percentages not meaningful

The highlights of our financial information for the third quarter of 2009, as compared to the third quarter of 2008, are as follows:

Revenue change - Total increase of $219.8 million, primarily driven by: -- $218.3 million - Increase in International Music due to the re-opening of the O2 in Dublin, strong festival performance in the United Kingdom and Belgium and strong stadium shows for our global touring artists U2 and Madonna. -- $57.2 million - Increase in North American Music primarily due to higher attendance at arena shows and third-party venues and the opening of our new House of Blues clubs in Houston and Boston. -- $24.5 million - Acquisition of De-Lux in North American Music. -- $23.5 million - Increase in Ticketing due to increased service charge revenue from our new ticketing platform. -- ($16.8) million - Decrease in International Music related to the divestiture of F&P Italia. -- ($88.1) million - Foreign exchange movements, primarily in International Music.

Adjusted Operating Income (Loss) change - Total increase of $51.3 million, primarily driven by:

-- $24.3 million - Increase in North American Music primarily due to increased show results for arena tours combined with lower fixed costs due to cost-saving initiatives. -- $17.7 million - Increase in International Music primarily due to strong stadium shows and festivals in the United Kingdom and Belgium and the reopening of the O2 Dublin. -- $17.6 million - Increase in Ticketing due to increased net revenue from ticket service charges related to events that occurred during the third quarter of 2009. -- ($8.5) million - Foreign exchange movements, primarily in International Music.

Operating Income (Loss) change - Total increase of $39.3 million, primarily driven by:

-- $51.3 million - Overall increase in adjusted operating income noted above. -- ($5.9) million - Higher depreciation and amortization expense due to an increase primarily in our North American Music segment driven by higher amortization of intangible assets associated with certain artist rights agreements. -- ($7.8) million - Acquisition transaction expenses in Corporate and International Music which are now required to be expensed under new accounting rules in 2009. These costs are primarily related to our planned merger with Ticketmaster Entertainment, Inc. FINANCIAL HIGHLIGHTS - NINE MONTHS ENDED SEPTEMBER 30 ----------------------------------------------------- (Unaudited) ----------- 9 months 9 months 2009 2008 Growth ---- ---- ------ $ in millions Revenue North American Music $2,051.8 $1,989.1 3.2% International Music 1,210.6 1,175.0 3.0% Ticketing 60.5 19.8 ** Other 47.7 67.0 (28.8%) ---- ---- ------ $3,370.6 $3,250.9 3.7% ======== ======== ==== Margins ------- Adjusted Operating 9 months 9 months Income (Loss) 2009 2008 ---- ---- North American Music $101.9 $100.7 1.2% 5.0% 5.1% International Music 85.9 69.7 23.2% 7.1% 5.9% Ticketing 8.6 (11.1) ** 14.2% ** Other 16.5 12.5 32.0% Corporate (35.3) (30.3) (16.5%) ----- ----- ------ ---- ---- $177.6 $141.5 25.5% 5.3% 4.4% ====== ====== ===== ==== ==== Operating Income (Loss) North American Music $20.5 $36.9 (44.4%) 1.0% 1.9% International Music 61.4 42.6 44.1% 5.1% 3.6% Ticketing (1.1) (14.7) ** (1.8%) ** Other 14.6 6.3 ** Corporate (41.9) (38.1) (10.0%) ----- ----- ----- ---- ---- 53.5 33.0 62.1% 1.6% 1.0% ---- ---- ----- ---- ---- Acquisition Transaction Expenses: International Music (0.8) - ** Corporate (25.7) - ** ----- --- --- ---- ---- $27.0 $33.0 (18.2%) 0.8% 1.0% ===== ===== ====== ==== ==== ** percentages not meaningful

The highlights of our financial information for the nine-month period ended September 30, 2009, as compared to the same period in 2008, are as follows:

Revenue change - Total increase of $119.7 million, primarily driven by: -- $239.6 million - Increase in International Music driven by strong stadium shows for global touring artists including U2 and Madonna, improved festival performance in the United Kingdom and Belgium and the reopening of the O2 Dublin. -- $63.5 million - Acquisitions of De-Lux in North American Music and DF Concerts and other smaller acquisitions in International Music. -- $40.7 million - Increase in Ticketing due to our new ticketing platform and ticketing-related sponsorship revenue. -- $37.6 million - Increase in North American Music primarily due to the opening of our new House of Blues clubs in Houston and Boston and increased attendance and average ticket prices and/or ancillary revenue per fan at third-party venues and arenas. -- ($33.8) million - Decrease in International Music related to the divestiture of F&P Italia. -- ($223.0) million - Foreign exchange movements, primarily in International Music.

Adjusted Operating Income (Loss) change - Total increase of $36.1 million, primarily driven by:

-- $29.0 million - Increase in International Music due to the reopening of the O2 Dublin and improved festival performance in the United Kingdom and Belgium. -- $19.7 million - Improvement in Ticketing due to increased net revenue from ticket service charges related to events that occurred during the first nine months of 2009 along with ticketing-related sponsorships. -- ($17.4) million - Foreign exchange movements, primarily in International Music.

Operating Income (Loss) change - Total decrease of $6.0 million, primarily driven by:

-- $36.1 million - Overall increase in Adjusted Operating Income (Loss) noted above. -- ($26.5) million - Acquisition transaction expenses in Corporate and International Music, primarily related to our planned merger with Ticketmaster, which are now required to be expensed under new accounting rules in 2009. -- ($18.9) million - Higher depreciation and amortization expense primarily due to increases in our North American Music and Ticketing segments associated with artist rights amortization, the Boston asset sale impairment in the first quarter and the opening of our new venues, along with increased depreciation related to our ticketing and website platforms. Other Information - -- As of September 30, 2009, our cash and cash equivalents were $258.1 million and our total long-term debt was $854.6 million, including $150.0 million outstanding on our revolving credit facility. Free cash as of September 30, 2009 was $9.6 million and free cash flow was $123.2 million for the third quarter of 2009 as compared to $64.4 million for the same period in 2008. -- For the nine months ended September 30, 2009, maintenance capital expenditures were $13.9 million and capital expenditures for revenue generating projects were $25.4 million, a total decline of $99.2 million compared to last year due to the 2008 development and renovation of various venues, including the O2 Dublin, House of Blues clubs in Houston and Boston and the AMG venue expansion in Sheffield, along with the ticketing roll-out. -- For the nine months ended September 30, 2009, our net cash provided by operating activities was $58.1 million, an increase of $129.5 million over the same period in 2008 primarily from the changes in event-related operating accounts which are dependent on the timing, size and number of events for upcoming periods. About Live Nation:

Live Nation's mission is to maximize the live concert experience. Our core business is producing, marketing and selling live concerts for artists via our global concert pipe. Live Nation is the largest producer of live concerts in the world, annually producing over 22,000 concerts for 1,600 artists in 33 countries. During 2008, the company sold over 50 million concert tickets and drove over 70 million unique visitors to LiveNation.com. Live Nation is transforming the concert business by expanding its concert platform into ticketing and building the industry's first artist-to-fan vertically integrated concert platform. The company is headquartered in Los Angeles, California and is listed on the New York Stock Exchange, trading under the symbol LYV. For additional information about the company, please visit http://www.livenation.com/investors.

Conference Call:

The company will host a teleconference today, November 9th, 2009 at 5:30 p.m. Eastern Time, which can be accessed by dialing 888-603-6873 (U.S.) or 973-321-1019 (Int'l) and referencing passcode 33530649. To access the call via webcast, please visit the Investor Relations section of the company's website at http://www.livenation.com/investors. Please visit the website approximately ten minutes prior to start time to ensure a connection. Additional statistical and financial information to be provided on the call, if any, will be posted supplementally under that same link. For those who are not available to listen to the live broadcast, a replay will be available shortly after the call on the Live Nation website through November 16, 2009.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- (in thousands except share and per share data) Revenue $1,808,296 $1,588,462 $3,370,569 $3,250,886 Operating expenses: Direct operating expenses 1,470,674 1,295,416 2,689,397 2,589,443 Selling, general and administrative expenses 164,104 174,245 472,379 495,311 Depreciation and amortization 37,401 31,490 117,699 98,761 Gain on sale of operating assets (2,672) (1,230) (3,658) (781) Corporate expenses 16,190 13,062 41,284 35,177 Acquisition transaction expenses 7,780 - 26,515 - ----- --- ------ --- Operating income 114,819 75,479 26,953 32,975 Interest expense 17,438 17,220 50,702 51,307 Interest income (348) (2,978) (2,019) (8,406) Equity in earnings of nonconsolidated affiliates (499) (1,979) (1,982) (871) Other expense (income) - net 2,206 277 2,815 (838) ----- --- ----- ---- Income (loss) from continuing operations before income taxes 96,022 62,939 (22,563) (8,217) Income tax expense (benefit): Current 17,918 (32,318) 30,590 (37,870) Deferred (1,068) 470 (2,360) 6,132 ------ --- ------ ----- Income (loss) from continuing operations 79,172 94,787 (50,793) 23,521 Income from discontinued operations, net of tax - 47,550 - 76,456 --- ------ --- ------ Net income (loss) 79,172 142,337 (50,793) 99,977 Net income (loss) attributable to noncontrolling interests 9,925 4,344 9,865 (123) ----- ----- ----- ---- Net income (loss) attributable to Live Nation, Inc. $69,247 $137,993 $(60,658) $100,100 ======= ======== ======== ======== Basic net income (loss) per common share attributable to common stockholders: Income (loss) from continuing operations attributable to Live Nation, Inc. $0.82 $1.17 $(0.74) $0.31 Income from discontinued operations attributable to Live Nation, Inc. - 0.61 - 1.00 --- ---- --- ---- Net income (loss) attributable to Live Nation, Inc. $0.82 $1.78 $(0.74) $1.31 ===== ===== ======= ===== Diluted net income (loss) per common share attributable to common stockholders: Income (loss) from continuing operations attributable to Live Nation, Inc $ 0.78 $1.10 $(0.74) $0.31 Income from discontinued operations attributable to Live Nation, Inc. - 0.56 - 1.00 --- ---- --- ---- Net income (loss) attributable to Live Nation, Inc. $0.78 $1.66 $(0.74) $1.31 ====== ===== ====== ===== Weighted average common shares outstanding: Basic 83,631,558 76,230,900 82,296,605 75,647,661 ========== ========== ========== ========== Diluted 92,717,666 84,513,127 82,296,605 76,230,602 ========== ========== ========== ========== CONSOLIDATED BALANCE SHEETS September 30, December 31, 2009 2008 ---- ---- (unaudited) (audited) ASSETS (in thousands) CURRENT ASSETS Cash and cash equivalents $258,089 $199,660 Accounts receivable, less allowance of $5,914 as of September 30, 2009 and $10,376 as of December 31, 2008 324,835 217,286 Prepaid expenses 330,985 194,355 Other current assets 40,405 28,517 ------ ------ Total Current Assets 954,314 639,818 PROPERTY, PLANT AND EQUIPMENT Land, buildings and improvements 1,006,324 990,433 Furniture and other equipment 276,020 260,524 Construction in progress 27,819 41,282 ------ ------ 1,310,163 1,292,239 Less accumulated depreciation 457,685 404,504 ------- ------- 852,478 887,735 INTANGIBLE ASSETS Intangible assets - net 488,440 514,469 Goodwill 209,098 205,296 OTHER LONG-TERM ASSETS Notes receivable, less allowance of $556 as of September 30, 2009 and $562 as of December 31, 2008 255 672 Investments in nonconsolidated affiliates 18,193 18,519 Other long-term assets 174,083 210,214 ------- ------- Total Assets $2,696,861 $2,476,723 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $88,294 $53,563 Accrued expenses 540,617 378,992 Deferred revenue 275,535 225,664 Current portion of long-term debt 50,106 48,637 Other current liabilities 23,840 64,381 ------ ------ Total Current Liabilities 978,392 771,237 Long-term debt, net of discount 804,477 775,483 Other long-term liabilities 140,219 146,360 Series A and Series B redeemable preferred stock 40,000 40,000 Commitments and contingent liabilities STOCKHOLDERS' EQUITY Common stock 859 785 Additional paid-in capital 1,090,953 1,063,564 Retained deficit (434,264) (373,606) Cost of shares held in treasury (9,514) (7,861) Accumulated other comprehensive income (loss) 8,634 (961) ----- ----- Total Live Nation, Inc. stockholders' equity 656,668 681,921 Noncontrolling Interests 77,105 61,722 ------ ------ Total Stockholders' Equity 733,773 743,643 ------- ------- Total Liabilities and Stockholders' Equity $2,696,861 $2,476,723 ========== ========== CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended September 30, ------------- 2009 2008 ---- ---- (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $(50,793) $99,977 Reconciling items: Depreciation 76,033 57,981 Amortization of intangibles 41,666 54,572 Impairment of operational assets - 16,035 Deferred income tax expense (benefit) (2,360) 6,132 Amortization of debt issuance costs 2,763 3,106 Amortization of debt discount 6,528 5,923 Non-cash compensation expense 10,011 9,588 Gain on sale of operating assets (3,658) (167,797) Equity in losses (earnings) of nonconsolidated affiliates (1,982) 673 Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Increase in accounts receivable (108,003) (126,615) Increase in prepaid expenses (73,228) (83,259) Increase in other assets (22,522) (89,552) Increase in accounts payable, accrued expenses and other liabilities 184,611 89,288 Increase (decrease) in deferred revenue (995) 52,885 Decrease in other - net - (401) --- ---- Net cash provided by (used in) operating activities 58,071 (71,464) CASH FLOWS FROM INVESTING ACTIVITIES Collections of notes receivable 616 106 Advances to notes receivable (555) - Distributions from nonconsolidated affiliates 2,223 4,976 Investments made in nonconsolidated affiliates (821) (255) Purchases of property, plant and equipment (39,358) (138,550) Proceeds from disposal of operating assets, net of cash divested 38,516 194,286 Cash paid for acquisitions, net of cash acquired (12,538) (35,977) Purchases of intangible assets (27,863) (18,816) Decrease in other - net 187 308 --- --- Net cash provided by (used in) investing activities (39,593) 6,078 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term debt, net of debt issuance costs 430,511 275,242 Payments on long-term debt (416,143) (327,614) Contributions from noncontrolling interest partners - 8,847 Distributions to noncontrolling interest partners (816) (1,845) Proceeds from exercise of stock options - 636 Issuance of treasury stock 1,553 - Payments for purchases of common stock (5,803) (3,628) ------ ------ Net cash provided by (used in) financing activities 9,302 (48,362) Effect of exchange rate changes on cash and cash equivalents 30,649 (19,327) ------ ------- Net increase (decrease) in cash and cash equivalents 58,429 (133,075) Cash and cash equivalents at beginning of period 199,660 338,991 ------- ------- Cash and cash equivalents at end of period $258,089 $205,916 ======== ========

Forward-Looking Statements, Non-GAAP Financial Measures and Reconciliations:

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements regarding the potential health and growth of Live Nation's business, including its prospects for delivering increased annual cash flows, reducing its long-term debt and strengthening its balance sheet; the company's anticipated achievement of its strategic objectives, including with respect to its new e-commerce ticketing site; the company's planned capital expenditures for the remainder of 2009; and the anticipated timing of the closing of the company's pending merger with Ticketmaster Entertainment, Inc. Live Nation wishes to caution you that there are some known and unknown factors that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements, including but not limited to operational challenges in achieving strategic objectives and executing on the company's plans, the risk that the company's markets do not evolve as anticipated, the potential impact of the economic slowdown and operational challenges associated with selling tickets and staging events.

Live Nation refers you to the documents it files from time to time with the U.S. Securities and Exchange Commission, or SEC, specifically the section titled "Item 1A. Risk Factors" of the company's most recent Annual Report filed on Form 10-K, as amended and as updated by the company's Current Reports on Form 8-K filed with the SEC on May 28, 2009 and September 16, 2009, which contain and identify other important factors that could cause actual results to differ materially from those contained in the company's projections or forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date on which they are made. All subsequent written and oral forward-looking statements by or concerning Live Nation are expressly qualified in their entirety by the cautionary statements above. Live Nation does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each such measure to its most directly comparable GAAP financial measure, together with an explanation of why management believes that these non-GAAP financial measures provide useful information to investors, is provided below.

Adjusted Operating Income (Loss) is a non-GAAP financial measure that the company defines as operating income (loss) before acquisition transaction expenses, depreciation and amortization, loss (gain) on sale of operating assets and non-cash compensation expense. The company uses Adjusted Operating Income (Loss) to evaluate the performance of its operating segments. The company believes that information about Adjusted Operating Income (Loss) assists investors by allowing them to evaluate changes in the operating results of the company's portfolio of businesses separate from non-operational factors that affect net income, thus providing insights into both operations and the other factors that affect reported results. Adjusted Operating Income (Loss) is not calculated or presented in accordance with U.S. generally accepted accounting principles. A limitation of the use of Adjusted Operating Income (Loss) as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue in the company's business. Accordingly, Adjusted Operating Income (Loss) should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with U.S. GAAP. Furthermore, this measure may vary among other companies; thus, Adjusted Operating Income (Loss) as presented herein may not be comparable to similarly titled measures of other companies.

Free Cash Flow is a non-GAAP financial measure that the company defines as Adjusted Operating Income (Loss) less net cash interest expense, less current tax expense, less maintenance capital expenditures, less distributions to noncontrolling interest partners plus distributions from investments in nonconsolidated affiliates net of contributions to investments in nonconsolidated affiliates. The company uses free cash flow, among other measures, to evaluate the ability of its operations to generate cash that is available for purposes other than maintenance capital expenditures. The company believes that information about free cash flow provides investors with an important perspective on the cash available to service debt and make acquisitions. Free cash flow is not calculated or presented in accordance with U.S. generally accepted accounting principles. A limitation of the use of free cash flow as a performance measure is that it does not necessarily represent funds available for operations and it is not necessarily a measure of our ability to fund our cash needs. Accordingly, free cash flow should be considered in addition to, and not as a substitute for, operating income (loss) and other measures of financial performance reported in accordance with U.S. GAAP. Furthermore, this measure may vary among other companies; thus, free cash flow as presented above may not be comparable to similarly titled measures of other companies.

Free Cash is a non-GAAP financial measure that the company defines as cash and cash equivalents less event-related deferred revenue, less accrued artist fees, less collections on behalf of others plus prepaids related to artist settlements and events. The company uses free cash as a proxy for how much cash it has available to, among other things, optionally repay debt balances, make acquisitions and finance venue and other revenue generating expenditures. Free cash is not calculated or presented in accordance with U.S. generally accepted accounting principles. A limitation of the use of free cash as a performance measure is that it does not necessarily represent funds available for operations and it is not necessarily a measure of our ability to fund our cash needs. Accordingly, free cash should be considered in addition to, and not as a substitute for, cash and cash equivalents and other measures of financial performance reported in accordance with U.S. GAAP. Furthermore, this measure may vary among other companies; thus, free cash as presented herein may not be comparable to similarly titled measures of other companies.

Reconciliations of Non-GAAP Measures to Their Most Directly Comparable GAAP Measures (Unaudited) Reconciliation of Adjusted Operating Income (Loss) to Operating Income (Loss) ----------------------- Loss (gain) Deprecia- Adjusted Non-cash on tion Acquisi- operating compensa- sale of and tion Operating income tion operating amortiza- transaction income ($ in millions)(loss) expense assets tion expenses (loss) Three months ended September 30, 2009 ------------------------------------- North American Music $99.4 $1.5 $(0.1) $26.1 $- $71.9 International Music 57.6 0.3 (0.1) 6.7 0.7 50.0 Ticketing 12.5 0.1 - 2.9 - 9.5 Other 5.4 - (2.5) 1.5 - 6.4 Corporate (14.1) 1.6 - 0.2 7.1 (23.0) ----- --- --- --- --- ----- Total Live Nation $160.8 $3.5 $(2.7) $37.4 $7.8 $114.8 ====== ==== ===== ===== ==== ====== Three months ended September 30, 2008 ------------------------------------- North American Music $75.5 $0.9 $(0.7) $18.7 $- $56.6 International Music 47.2 0.3 - 8.3 - 38.6 Ticketing (5.1) 0.1 - 1.3 - (6.5) Other 2.6 - - 2.2 - 0.4 Corporate (10.7) 2.4 (0.5) 1.0 - (13.6) ----- --- ----- --- --- ----- Total Live Nation $109.5 $3.7 $(1.2) $31.5 $- $75.5 ====== ==== ===== ===== ==== ====== Nine months ended September 30, 2009 ------------------------------------ North American Music $101.9 $3.3 $(1.0) $79.1 $- $20.5 International Music 85.9 1.1 (0.2) 23.6 0.8 60.6 Ticketing 8.6 0.2 - 9.5 - (1.1) Other 16.5 - (2.5) 4.4 - 14.6 Corporate (35.3) 5.5 - 1.1 25.7 (67.6) ----- --- --- --- ---- ----- Total Live Nation $177.6 $10.1 $(3.7) $117.7 $26.5 $27.0 ====== ===== ====== ====== ===== ===== Nine months ended September 30, 2008 ------------------------------------ North American Music $100.7 $4.9 $(0.8) $59.7 $- $36.9 International Music 69.7 0.5 - 26.6 - 42.6 Ticketing (11.1) 0.3 - 3.3 - (14.7) Other 12.5 - (0.2) 6.4 - 6.3 Corporate (30.3) 4.8 0.2 2.8 - (38.1) ----- --- --- --- --- ----- Total Live Nation $141.5 $10.5 $(0.8) $98.8 $- $33.0 ====== ===== ===== ===== === ===== Reconciliation of Adjusted Operating Income (Loss) to Free Cash Flow -------------------------------------------------------------------- ($ in millions) Q3 2009 Q3 2008 --------------- ------- ------- Adjusted operating income $160.8 $109.5 Less: Cash interest expense - net (13.8) (10.6) Current tax expense (17.9) (31.7) Maintenance capital expenditures (5.3) (2.6) Distributions to noncontrolling interest partners (0.5) (1.4) Distributions from (contributions to) investments in nonconsolidated affiliates (0.1) 1.2 ---- --- Free cash flow $123.2 $64.4 -------------- ------ ----- 9 months 9 months ($ in millions) 2009 2008 --------------- ---- ---- Adjusted operating income $177.6 $141.5 Less: Cash interest expense - net (39.4) (33.9) Current tax expense (30.6) (45.3) Maintenance capital expenditures (13.9) (21.7) Distributions to noncontrolling interest partners (0.8) (1.8) Distributions from (contributions to) investments in nonconsolidated affiliates 1.4 4.7 --- --- Free cash flow $94.3 $43.5 -------------- ----- ----- Reconciliation of Cash and Cash Equivalents to Free Cash -------------------------------------------------------- September 30, ($ in millions) 2009 --------------- --------- Cash and cash equivalents $258.1 Deferred revenue - event-related $(258.2) Accrued artist fees $(63.3) Collections on behalf of others $(91.8) Prepaids related to artist settlements/events $164.8 ------ Free cash $9.6 --------- ----

Photo: http://www.newscom.com/cgi-bin/prnh/20081203/LAW048LOGO-b
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Live Nation

CONTACT: Media, John Vlautin, johnvlautin@livenation.com, or Investors,
Linda Bandov, lindabandov@livenation.com, both of Live Nation, Inc.,
+1-310-867-7000

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

Citizens Republic Bancorp Withdraws Its CAP Application

FLINT, Mich., Nov. 9 /PRNewswire-FirstCall/ -- Citizens Republic Bancorp, Inc. announced today that it has withdrawn its application to the U.S. Treasury for an additional investment of up to $190 million under its Capital Assistance Program (CAP). In June 2009, Citizens announced that a CAP investment was one of the capital raising strategies it was considering and it applied for CAP to ensure that it met the November 9, 2009 program deadline. Due to the lack of activity surrounding CAP, the differing public views regarding government assistance programs, and the success of its recent debt exchange offers, Citizens has decided to withdraw its application.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050421/DETH014LOGO )

In September 2009, Citizens successfully completed its exchange offers with over 75% participation whereby approximately $108 million principal amount of its outstanding subordinated notes and $101 million aggregate liquidation amount of its enhanced trust preferred securities were exchanged for $198 million of additional Tier 1 common equity.

Citizens continues to maintain a strong capital position, and its regulatory capital ratios are above "well-capitalized" standards, as evidenced by the following key capital ratios.

------------------------------------------------------------------------ Regulatory Minimum for Excess Capital "Well-Capital- over Minimum ized" 9/30/09 6/30/09 3/31/09 (in millions) -------------------------------- ------------------------- ------------- Tier 1 capital ratio 6.00% 12.83% 11.81% 12.16% $603.5 Total capital ratio 10.00 14.23 13.91 14.21 373.8 Tier 1 leverage ratio 5.00 9.63 8.68 9.32 545.0 ------------------------------------------------------------------------

"We remain very focused on maintaining strong liquidity and capital levels as we manage through this recession. If it is deemed necessary to raise further capital, our recent shelf registration statement filing puts us in position to move quickly should public market conditions become favorable," commented Charlie Christy, executive vice president and chief financial officer.

Corporate Profile

Citizens Republic Bancorp is a diversified financial services company providing a wide range of commercial, consumer, mortgage banking, trust and financial planning services to a broad client base. Citizens serves communities in Michigan, Ohio, Wisconsin, and Indiana as Citizens Bank and in Iowa as F&M Bank, with 232 offices and 267 ATMs. Citizens Republic Bancorp is the largest bank holding company headquartered in Michigan with roots dating back to 1871 and the 48th largest bank holding company headquartered in the United States. More information about Citizens Republic Bancorp is available at http://www.citizensbanking.com/.

Safe Harbor Statement

Discussions and statements in this release that are not statements of historical fact, including statements that include terms such as "will," "may," "should," "believe," "expect," "anticipate," "estimate," "project," "intend," and "plan," including without limitation future financial and operating results, plans, objectives, expectations and intentions and other statements that are not historical facts, are forward-looking statements that involve risks and uncertainties. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking information.

Factors and any other risks and uncertainties are detailed from time to time in Citizens' filings with the SEC, which are available at the SEC's web site http://www.sec.gov/. Other factors not currently anticipated may also materially and adversely affect Citizens' results of operations, cash flows and financial position. There can be no assurance that future results will meet expectations. While Citizens believes that the forward-looking statements in this release are reasonable, you should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. Citizens does not undertake, and expressly disclaims any obligation to update or alter any statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Photo: http://www.newscom.com/cgi-bin/prnh/20050421/DETH014LOGO Citizens Republic Bancorp, Inc.

CONTACT: Charles D. Christy, EVP & Chief Financial Officer,
+1-810-237-4200, charlie.christy@citizensbanking.com; Kristine D. Brenner,
Director of Investor Relations, +1-810-257-2506,
kristine.brenner@citizensbanking.com, both of Citizens Republic Bancorp

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

American Oriental Bioengineering to Report Third Quarter 2009 Financial Results on November 16, 2009

NEW YORK, Nov. 9 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering, Inc. , ("the Company" or "AOBO"), a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter ("OTC") products, today announced that it plans to release third quarter 2009 financial results on Monday, November 16, 2009, after the market closes.

The Company will hold a conference call at 8:00 am ET on Tuesday, November 17, 2009 to discuss third quarter 2009 results. Listeners may access the call by dialing 1-866-770-7051 or 1-617-213-8064 for international callers, access code: 89648638. A webcast will also be available through AOB's website at http://www.bioaobo.com/ .

A replay of the call will be available through November 24, 2009. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 58148119.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

American Oriental Bioengineering, Inc.

CONTACT: Integrated Corporate Relations, Inc., Ashley M. Ammon,
+1-646-277-1200

BMP Sunstone Reports Third Quarter 2009 Financial Results

PLYMOUTH MEETING, Pa., Nov. 9 /PRNewswire-Asia-FirstCall/ -- BMP Sunstone Corporation ("BMP Sunstone" or the "Company"), today announced financial results for the third quarter ended September 30, 2009.

Third Quarter 2009 Financial Highlights Include: -- Revenue increased to $33.6 million from $30.5 million in the prior year period, reflecting growth across all divisions, particularly in licensed products; -- Gross margin increased to 46.6% from 45.3% in the prior year period; -- Non-GAAP net income was $1.3 million, or approximately $0.03 per share.

David Gao, Chief Executive Officer of BMP Sunstone, stated, "We are pleased with our financial performance in the third quarter of 2009. The inventory and distribution challenges from last quarter appear to be subsiding and we are encouraged with the ongoing demand we see for our portfolio of leading prescription and over the counter brands. Our licensed products revenue was particularly strong this quarter and, in conjunction with a revenue mix shift toward higher margin products at Sunstone and Beijing Med-Pharm, improved our gross margin performance year over year. On the cost side, we reinvested for growth primarily through research and development at Sunstone. We believe the healthcare market in China continues to grow by 15-20 percent annually and we continue to anticipate outperforming the industry growth rate over the long term."

Third Quarter 2009 Financial Results

Revenue in the third quarter of 2009 increased 10.2% to $33.6 million from $30.5 million in the third quarter of 2008, reflecting increased demand for the Company's licensed and branded OTC products. Revenue from Sunstone (Tangshan) Pharmaceutical Co., Ltd. ("Sunstone"), increased 10.2% $17.1 million of revenue, from $15.5 million in the prior year period. Revenue from licensed products increased 57.3% to $2.1 million from $1.3 million in the prior year period, reflecting sales and marketing efforts of Anpo, Propess and Ferriprox compared to the prior year. Revenue from distribution in the third quarter of 2009 was up slightly to $14.5 million from $13.7 million in the prior year period, as the Company deliberately focused less on driving low margin distribution revenue and more on increasing high margin product sales.

Gross profit in the third quarter of 2009 increased to $15.7 million from $13.8 million in the third quarter of 2008. Gross margin was 46.6%, compared to 45.3% in the prior year period. Gross margin performance primarily reflects revenue mix shift toward higher margin products during the quarter, versus prior periods.

Operating income was $1.0 million in the third quarter of 2009, compared to $1.8 million in the third quarter of 2008. Operating expenses increased 21.3% from the year ago period, primarily reflecting a $1.2 million increase in research and development expenditure, as the Company positions itself to drive future growth. Additionally, general and administrative expenses as a percentage of revenue increased to approximately 14.3%, up from 9.5% in the

prior year period, reflecting a $525,000 reversal for an over accrual of social taxes in prior years.

Non-GAAP net income was $1.3 million, or $0.03 per diluted share, compared to $1.9 million, or $0.05 per diluted share, in the third quarter of 2008. On a GAAP basis, the Company reported a net loss of $208,000 in the third quarter of 2009, or ($0.01) per share, compared to a net loss of $816,000, or ($0.02) per share, in the prior year period. Adjusted EBITDA was $2.6 million for the quarter, compared to $3.6 million in the third quarter of last year. The earnings per share calculation is based on 50.8 million diluted shares outstanding, compared to 40.8 million diluted shares outstanding in the prior year period.

Non-GAAP net income and earnings per share exclude stock based compensation expense, amortization related to the Sunstone and Wanwei acquisitions, amortization of debt discount and issuance cost, loss on early extinguishment of debt and gain on the embedded derivative value on convertible notes. Adjusted EBITDA is a non-GAAP measure which provides earnings before interest, taxes, depreciation and amortization and excludes loss on early extinguishment of debt and gain on the embedded derivative value on convertible notes. Please refer to the financial tables provided in this news release for a reconciliation of GAAP results to non-GAAP results for the three and nine month periods ended September 30, 2008 and 2009.

Balance Sheet

On September 30, 2009, the Company had $13.2 million of cash and $10.6 million of notes receivable, totaling approximately $23.8 million. All notes receivables are guaranteed by established banks in China and have maturities of six months or less. Additionally, $7.6 million of other receivables is due from Alliance Unichem in August of 2010.

Financial Results for the Nine Months Ended September 30, 2009 For the nine months ended September 30, 2009, revenue increased 34.7% to $105.4 million from $78.2 million in the first nine months of 2008. During this same time period, gross profit increased 33.1% to $50.7 million from $38.1 million. Income from operations increased 120.5% to $4.4 million, compared to $2.0 million in the first nine months of 2008. Non-GAAP net income was $4.6 million, or $0.10 per diluted share, compared to $3.1 million, or $0.08 per diluted share, in the prior year period. On a GAAP basis, the Company reported a net loss of $3.9 million, or ($0.10) per share, compared to $4.9 million, or ($0.13) per share, in the first nine months of 2008. Adjusted EBITDA was $9.0 million, compared to $7.4 million in the first nine months of 2008. The EPS calculation is based on 48.2 million diluted shares outstanding, compared to 39.4 million diluted shares outstanding in the prior year period.

Financial Guidance

Due to slower than expected growth rates in the second quarter of 2009, today BMP Sunstone is adjusting revenue, adjusted EBITDA and non-GAAP net income guidance for the fiscal year 2009. The Company now expects revenue to reach $140 million to $150 million, adjusted EBITDA to reach $12 million to $13 million, and non-GAAP net income to reach $6 million to $7 million.

Today's revisited guidance is down from previous full year expectations of $150 million to $160 million in revenue, $16 million to $18 million in adjusted EBITDA, and $9 million to $11 million in non-GAAP net income.

Gao continued, "We believe that declines in purchases from distributors hit a low point during the second quarter, improved during the third quarter, and should noticeably improve when the pending Chinese healthcare policies are finalized and disclosed. Our 2009 financial guidance reflects sales and marketing expansion in China resulting from continued performance at all of our business units, especially at Sunstone and Beijing Med-Pharm."

Conference Call

The Company will hold a conference call at 5:00 pm ET on November 9, 2009 to discuss third quarter 2009 results. Listeners may access the call by dialing 1-888-713-4211 or +1-617-213-4864 for international callers, access code: 20626681. Preregistration and a webcast will be available through the Company's website at http://www.bmpsunstone.com/ . A replay of the call will be

accessible through November 16, 2009 by dialing 1-888-286-8010 or +1-617-801-6888 for international callers, access code: 24243405.

About BMP Sunstone Corporation

BMP Sunstone Corporation ("BMP Sunstone" or the "Company") is a specialty pharmaceutical company that is building a proprietary portfolio of branded pharmaceutical and healthcare products in China. Through Sunstone Pharmaceutical Co. Ltd., the Company manufactures leading pediatric and women's health products, including two of China's most recognized brands, "Hao Wawa" and "Confort," sold throughout the country in approximately 120,000 pharmacies. The Company also markets a portfolio of products under exclusive multi-year licenses into China, primarily focused on women's health and pediatrics, as well as provides pharmaceutical distribution services through subsidiaries in Beijing and Shanghai. BMP Sunstone's main office is in Beijing, with a U.S. office in Plymouth Meeting, PA. For more information, please visit http://www.bmpsunstone.com/ .

Safe Harbor Statement

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts, including but not limited to statements regarding the impact of changes in China's healthcare industry on the Company's growth and financial performance, the Company's expected financial performance in 2009 and the Company's expectations for each of its business units in 2009. These statements are subject to uncertainties and risks including, but not limited to, operating performance, the timing of China's healthcare reform policy, general financial, economic, and political conditions affecting the biotechnology and pharmaceutical industries and the Chinese pharmaceutical market, the ability to timely manufacture and distribute the Company's products and other risks contained in reports filed by the Company with the Securities and Exchange Commission. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

BMP Sunstone Corporation and Subsidiaries Condensed Consolidated Statements of Operation ($ amounts, except per share amounts in thousands) For the Three For the Nine months ended months ended September 30, September 30, 2009 2008 2009 2008 Revenues: Third parties $33,358 $28,544 $101,001 $72,979 Related parties 268 1,959 4,370 5,251 Total Revenues 33,626 30,503 105,371 78,230 Cost of Goods Sold 17,950 16,676 54,643 40,120 Gross Profit 15,676 13,827 50,728 38,110 Sales and Marketing Expenses 9,811 9,152 33,622 26,251 General and Administration Expenses 4,825 2,910 12,755 9,886 Total Operating Expenses 14,636 12,062 46,377 36,137 Profit From Operations 1,040 1,765 4,351 1,973 Other Income (Expense): Interest Income 52 6 159 68 Interest Expense (895) (1,590) (3,369) (4,770) Debt Issuance Cost Amortization (101) (210) (326) (630) Equity Method Investment Income 107 -- 189 675 Loss on Early Extinguishment of Debt -- -- (4,573) -- Gain(Loss) on Derivatives -- -- 1,204 -- Total Other Income (Expense) (837) (1,794) (6,716) (4,657) (Profit) Loss Before Provision For Income Taxes 203 (29) (2,365) (2,684) Provision For Income Taxes 430 787 1,583 2,198 Net Loss $(227) $(816) $(3,948) $(4,882) Less: Net Loss Attributable to the Noncontrolling Interest 19 -- 35 -- Net Loss Attributable to BMP Sunstone Corporation $(208) $(816) $(3,913) $(4,882) Basic and Fully-Diluted Loss Per Share $(0.01) $(0.02) $(0.10) $(0.13) Basic Weighted-average Shares Outstanding 41,559 39,650 41,291 38,070 Fully Diluted Weighted-average Shares Outstanding 50,831 40,760 48,184 39,368 BMP Sunstone Corporation and Subsidiaries Condensed Consolidated Statements of Operation ($ amounts, except per share amounts in thousands) Non GAAP For the Three For the Nine Months ended Months ended September 30, September 30, 2009 2008 2009 2008 Revenues: Third parties $33,358 $28,544 $101,002 $72,979 Related parties 268 1,959 4,370 5,251 Total Revenues 33,626 30,503 105,372 78,230 Cost of Goods Sold 17,835 16,567 54,299 39,235 Gross Profit 15,791 13,936 51,073 38,995 Sales and Marketing Expenses 9,058 8,237 31,390 24,075 General and Administration Expenses 4,206 2,196 10,890 7,852 Total Operating Expenses 13,264 10,433 42,280 31,927 Profit From Operations 2,527 3,503 8,793 7,068 Other Income (Expense): Interest Income 9 6 79 68 Interest Expense (895) (823) (2,920) (2,469) Debt Issuance Cost Amortization -- -- -- -- Equity Method Investment Income 107 -- 189 675 Loss on Early Extinguishment of Debt -- -- -- -- Gain on Derivatives -- -- -- -- Total Other Income (Expense) (779) (817) (2,652) (1,726) Profit Before Provision For Income Taxes 1,748 2,686 6,141 5,342 Provision For Income Taxes 430 787 1,583 2,198 Net Profit $1,318 $1,899 $4,558 $3,144 Less: Net Loss Attributable to the Noncontrolling Interest 19 -- 35 -- Net Profit Attributable to BMP Sunstone Corporation 1,337 1,899 4,593 3,144 Basic Profit Per Share $0.03 $0.05 $0.11 $0.08 Fully Diluted Profit Per Share $0.03 $0.05 $0.10 $0.08 Basic Weighted-average Shares Outstanding 41,559 39,650 41,291 38,070 Fully Diluted Weighted-average Shares Outstanding 50,831 40,760 48,184 39,368 BMP Sunstone Corporation and Subsidiaries Condensed Consolidated Balance Sheets ($ amounts in thousands) September 30, December 31, 2009 2008 Assets Current Assets: Cash and Cash Equivalents $13,182 $15,740 Restricted Cash 1,563 1,150 Notes Receivable 10,595 15,797 Accounts Receivable, net of allowance for doubtful accounts of $116 and $127 42,493 30,897 Inventory, net of allowance for obsolescence of $45 and $0 8,940 10,184 Receivable from Alliance Unichem 7,550 -- Due from Related Party 5 1,834 Other Receivables 2,545 2,168 VAT Receivable 1,060 921 Prepaid Expenses and Other Current Assets 7,172 6,247 Total Current Assets 95,105 84,938 Property and Equipment, net 26,912 22,840 Investment in Alliance BMP Limited -- 15,093 Investment in Shengda 3,114 -- Investments, at Cost 146 146 Goodwill 70,029 69,866 Other Assets 519 875 Land Use Rights, net of accumulated amortization 2,886 2,002 Intangible Assets, net of accumulated amortization 39,377 41,891 Total Assets $238,088 $237,651 Liabilities and Equity Current Liabilities: Notes Payable and Bank Borrowings, net of debt discounts $1,843 $33,591 Accounts Payable 24,941 27,482 Due to Related Parties 2,297 4,361 Deferred Revenues 128 128 Accrued Expenses 15,704 14,601 Total Current Liabilities 44,913 80,163 Long-Term Debt, including debt premium 31,949 -- Deferred Taxes 9,510 9,856 Total Liabilities 86,372 90,019 Equity: Common Stock, $.001 Par Value; 75,000,000 Shares Authorized as of June 30, 2009 and December 31, 2008; 41,560,155 and 40,246,410 Shares Issued and Outstanding as of September 30, 2009 and December 31, 2008, respectively 42 40 Additional Paid in Capital 167,086 160,864 Common Stock Warrants 8,621 9,049 Accumulated Deficit (34,956) (31,042) Accumulated Other Comprehensive Income 9,422 8,721 Total Equity 150,215 147,632 Noncontrolling Interest 1,501 -- Total Liabilities and Equity $238,088 $237,651 BMP Sunstone Corporation and Subsidiaries Non GAAP Reconciliations ($ amounts, except per share in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 GAAP Gross Profit $15,676 13,827 $50,728 $38,110 Amortization Related to Acquisitions 115 109 345 885 Non GAAP Gross Profit $15,791 $13,936 $51,073 $38,995 Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 GAAP Operating Income $1,040 $1,765 $4,351 $1,973 Stock Based Compensation 600 636 1,784 1,816 Amortization Related to Acquisitions 887 1,102 2,658 3,279 Non GAAP Operating Income $2,527 $3,503 $8,793 $7,068 Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 GAAP Net Loss $(208) $(816) $(3,913) $(4,882) GAAP EPS $(0.01) $(0.02) $(0.10) $(0.13) Stock Based Compensation 600 636 1,784 1,816 Debt Discount and Premium Amortization and Issuance Cost 58 977 695 2,931 Amortization Related to Acquisitions 887 1,102 2,658 3,279 Loss on Early Extinguishment of Debt -- -- 4,573 -- Gain (Loss) on Derivatives -- -- (1,204) -- Non GAAP Net Income $1,337 $1,899 $4,593 $3,144 Non GAAP EPS $0.03 $0.05 $0.11 $0.08 BMP Sunstone Corporation and Subsidiaries Adjusted EBITDA Reconciliation ($ amounts in thousands) For the Three For the Nine Months Ended Months Ended September 30, September 30, 2009 2008 2009 2008 Net Loss $(208) $(816) $(3,913) $(4,882) Net Loss Reconciliation to Adjusted EBITDA: Interest expense, net 879 817 2,841 2,401 Income taxes 430 787 1,583 2,198 Depreciation 592 615 1,745 1,424 Amortization of intangibles and fair value of inventory increase 887 1,202 2,658 3,297 Loss on Early Extinguishment of Debt -- -- 4,573 -- Gain (Loss) on derivatives -- -- (1,204) -- Amortization of debt discount and premium and debt issuance costs 59 977 695 2,931 ADJUSTED EBITDA $2,639 $3,582 $8,978 $7,369

BMP Sunstone Corporation

CONTACT: BMP Sunstone Corporation, Fred M. Powell, Chief Financial
Officer, +1-610-940-1675, or fpowell@bmpsunstone.com; Integrated Corporate
Relations, Inc., Ashley M. Ammon, +1-646-277-1227, or Ashley.Ammon@icrinc.com

Duoyuan Global Water Inc. Reports Third Quarter 2009 Financial ResultsRevenue Up 30.9% to RMB255.2 Million from the Prior Year PeriodNet Income up 23.1% to RMB73.4 Million from the Prior Year PeriodDiluted Earnings per ADS of $0.49Live Conference Call to be Held on Monday, November 9, 2009 at 5:00 PM U.S. Eastern Time

BEIJING, Nov. 9 /PRNewswire-Asia/ -- Duoyuan Global Water Inc. ("Duoyuan" or the "Company"), a leading China-based domestic water treatment equipment supplier, today announced unaudited financial results for the third quarter of 2009.

Mr. Wenhua Guo, the Company's Chairman and Chief Executive Officer, stated, "We are pleased with the Company's third quarter financial results, which reflect increased demand across all three product lines, our comprehensive and high quality product offering, as well as our low cost manufacturing base, extensive distribution network and strong competitive position. All of these factors contributed to our quarterly financial results today and lay the groundwork for continued growth in the future."

Third Quarter 2009 Financial Highlights -- Revenue increased 30.9% to RMB255.2 million ($37.4 million(1)) from RMB195.0 million in the prior year period. -- Gross margin increased to 49.5% from 46.8% in the prior year period. -- Operating income increased 31.1% to RMB95.7 million ($14.0 million) from RMB73.0 million in the prior year period. -- Net income increased 23.1% to RMB73.4 million ($10.8 million) from RMB59.6 million in the comparable period of 2008. -- Diluted earnings per ADS(2) was $0.49. Each ADS represents two of the Company's ordinary shares. (1) This announcement contains translations of certain Renminbi amounts into US dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to US dollars as of and for the quarter ended September 30, 2009, were made at the noon buying rate of RMB6.8262 to USD1.00 on September 30, 2009 in the City of New York for cable transfers in Renminbi per US dollar as certified for customs purposes by the Federal Reserve Bank of New York. Duoyuan Global Water makes no representation that the Renminbi or US dollar amounts referred to in this press release could have been or could be converted into US dollars or Renminbi, at any particular rate or at all. (2) American Depositary Shares, which are traded on the New York Stock Exchange, are equivalent to ordinary shares at a ratio of 1:2. Third Quarter 2009 Financial Performance

Third quarter 2009 revenue increased 30.9% to RMB255.2 million ($37.4 million) from RMB195.0 million in the comparable period of 2008, reflecting growth across all three product categories. Revenue from wastewater treatment equipment increased 42.3%, to RMB100.1 million ($14.7 million) in the third quarter of 2009 compared to RMB70.3 million in the third quarter of 2008, due to increased demand for Duoyuan's belt filter press machines, sludge screw, online testing equipment, ultraviolet shelving disinfection systems and microporous aerators. Revenue from circulating water treatment increased by 20.0% to RMB96.1 million ($14.1 million) in the third quarter of 2009 compared to RMB80.1 million in the third quarter of 2008, driven by increased demand for the Company's new fully automatic filters, electronic water conditioners and circulating water central processors. Revenue from water purification equipment increased by 28.4% to RMB55.0 million ($8.1 million) in the third quarter of 2009 compared to RMB42.8 million in the prior year period, as the Company's newly introduced models for central water purifiers, industry pure water equipment and ultraviolet water purifiers continued to be well-received by the marketplace. Demand for the Company's products increased across all three product lines, driven by market recognition of the high quality, durability and effectiveness of the Company's products, as well as the success of the Company's promotion and marketing strategies.

Ongoing government regulations mandating the utilization of water treatment products and stricter enforcement of environmental protection laws also drove demand in the third quarter. While Duoyuan experienced revenue growth across all three product categories in the third quarter of 2009, demand for the Company's wastewater treatment equipment outpaced demand for circulating water treatment equipment and water purification equipment due to intensified government efforts to monitor wastewater discharge.

For the third quarter of 2009, gross profit increased by 38.4% to RMB126.4 million ($18.5 million) from RMB91.3 million in the prior year's period. Gross margin for the third quarter of 2009 was 49.5%, compared to 46.8% in the third quarter of 2008, primarily due to a decrease in raw material costs.

Operating income increased by 31.1% to RMB95.7 million ($14.0 million) in the third quarter of 2009, from RMB73.0 million in the comparable period of 2008. Operating margin was 37.5% in the third quarter of 2009, essentially flat from 37.4% in the prior year period. Selling expenses increased 82.5% to RMB19.2 million ($2.8 million) in the third quarter from RMB10.5 million in the prior year's period. The increase primarily reflects advertising activities initiated in the third quarter of 2009 to enhance national brand recognition.

Provision for income taxes in the third quarter of 2009 increased to RMB22.4 million ($3.3 million), an effective tax rate of 23.4%, from RMB12.9 million, an effective tax rate of 17.8%, in the third quarter of 2008. The increase in tax provision primarily reflects the increase in the Company's profits by 32.0% over the same period of 2008, and the termination of a tax exemption for Duoyuan Langfang, one of the Company's subsidiaries on December 31, 2008.

Net income increased 23.1% to RMB73.4 million ($10.8 million) in the third quarter of 2009, from RMB59.6 million in the prior year's third quarter. Diluted earnings per share was RMB1.67 ($0.25) in the third quarter of 2009, compared to RMB1.99 in the third quarter of 2008. During this year over year period, diluted earnings per ADS was RMB3.35 ($0.49) compared to RMB3.97, respectively.

The Company had approximately 43.8 million weighted average number of diluted shares outstanding as of September 30, 2009, compared to 30.0 million weighted average number of diluted shares outstanding as of September 30, 2008.

As of September 30, 2009, the Company had cash and bank deposits of RMB937.2 million ($137.3 million), compared to RMB198.5 million as of December 31, 2008, mostly reflecting net proceeds from the Company's initial public offering. Cashflow provided by operating activities for the nine months ended September 30, 2009 were approximately RMB150.5 million ($22.0 million), compared to approximately RMB184.5 million in the prior year period.

Nine Months Ended September 30, 2009 Financial Performance

For the nine months ended September 30, 2009, revenue increased 33.0% to RMB589.6 million ($86.4 million) from RMB443.2 million for the first nine months of 2008. During this same time period, gross profit increased by 42.8% to RMB285.5 million ($41.8 million) from RMB200.0 million. Operating income decreased by 11.8% to RMB133.2 million ($19.5 million) for the first nine months of 2009 from RMB151.0 million for the first nine months of 2008, and net income decreased 34.8% to RMB77.2 million ($11.3 million), or RMB2.22 ($0.33) per diluted share, from RMB118.3 million, or RMB3.94 per diluted share, for these respective periods. Net income per diluted ADS was RMB4.44 ($0.65) for the first nine months of 2009, down from RMB7.89 for the first nine months of 2008. Weighted average number of diluted shares outstanding was approximately 34.8 million for the first nine months of 2009, compared to 30.0 million weighted average number of diluted shares outstanding for the first nine months of 2008.

Non-Cash Share-Based Compensation Expense

In the third quarter of 2009, the Company recorded non-cash share-based compensation expense of approximately RMB1.1 million ($158,813), or approximately $0.0072 per ADS. In the first nine months of 2009, the Company recorded non-cash share-based compensation expense of approximately RMB91.6 million ($13.4 million), or approximately $0.77 per ADS, the majority of which was recognized in the second quarter of 2009. Please refer to the non-GAAP presentation provided below for a year over year comparison excluding non-cash share-based compensation expense.

Financial Outlook

Mr. Stephen C. Park concluded, "As we come off a fantastic third quarter, which is seasonally our strongest quarter, our competitive position remains strong and we are poised for future growth supported by our trusted brand name and vast distribution network. With this in mind, we are targeting revenue of approximately RMB190 million in the fourth quarter of 2009."

This forecast reflects the Company's current and preliminary view, which is subject to change.

Conference Call

The Company will host a conference call on Monday, November 9, 2009 at 5:00 PM U.S. Eastern Time. Listeners may access the call by dialing:

United States: 1-866-519-4004 China (Landline): 800-819-0121 China (Mobile): 400-620-8038 Hong Kong: 852-2475-0994 United Kingdom: 0-808-234-6646 International: 65-6735-7955 Conference ID: 35643396

A telephone replay will be available beginning two hours after the conclusion of the call and will be available through November 16, 2009. Listeners may access the replay by dialing:

United States: 1-866-214-5335 China (North): 10-800-714-0386 China (South): 10-800-140-0386 Hong Kong: 800-901-596 United Kingdom: 0-800-731-7846 International: 61-2-8235-5000 Conference ID: 35643396

A webcast of the conference call will also be available at the investor relations section of the Company's website at http://www.duoyuan-hq.com/ .

About Duoyuan Global Water Inc.

Duoyuan Global Water Inc. is a leading China-based domestic water treatment equipment supplier. Duoyuan's product offerings address the key steps in the water treatment process, such as filtration, water softening, water-sediment separation, aeration, disinfection and reverse osmosis. Duoyuan offers a comprehensive set of complementary products across three product categories: circulating water treatment, water purification and wastewater treatment. The Company has an extensive local distribution network, which provides proximity to end-user customers and responsiveness to local market demand. Learn more at http://www.duoyuan-hq.com/ .

DUOYUAN GLOBAL WATER INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 2008 2009 2009 RMB RMB US$ REVENUE 194,972,023 255,203,895 $37,385,939 COST OF REVENUE 103,674,793 128,852,598 18,876,183 GROSS PROFIT 91,297,230 126,351,297 18,509,756 RESEARCH AND DEVELOPMENT EXPENSES 3,998,738 4,413,573 646,564 SELLING EXPENSES 10,537,292 19,225,862 2,816,481 GENERAL AND ADMINISTRATIVE EXPENSES 3,763,336 7,007,731 1,026,593 OPERATING INCOME 72,997,864 95,704,131 14,020,118 INTEREST EXPENSE (710,805) (298,540) (43,735) OTHER INCOME 246,246 362,942 53,169 LOSS FROM SALE OF PROPERTY -- -- -- INCOME BEFORE INCOME TAXES 72,533,305 95,768,533 14,029,552 PROVISION FOR INCOME TAXES 12,925,412 22,371,952 3,277,365 NET INCOME 59,607,893 73,396,581 $10,752,187 Earnings per share: Basic 1.99 1.68 $0.25 Diluted 1.99 1.67 $0.25 Earnings per ADS: Basic 3.97 3.36 $0.49 Diluted 3.97 3.35 $0.49 Weighted average number of shares outstanding: Basic 30,000,000 43,702,631 43,702,631 Diluted 30,000,000 43,838,207 43,838,207 NINE MONTHS ENDED SEPTEMBER 30, 2008 2009 2009 RMB RMB US$ REVENUE 443,168,505 589,579,085 $86,370,028 COST OF REVENUE 243,195,069 304,061,507 44,543,305 GROSS PROFIT 199,973,436 285,517,578 41,826,723 RESEARCH AND DEVELOPMENT EXPENSES 11,594,354 13,682,707 2,004,440 SELLING EXPENSES 26,277,454 41,490,394 6,078,110 GENERAL AND ADMINISTRATIVE EXPENSES 11,068,726 97,161,943 14,233,679 OPERATING INCOME 151,032,902 133,182,534 19,510,494 INTEREST EXPENSE (2,587,823) (923,450) (135,280) OTHER INCOME 1,020,437 805,274 117,968 LOSS FROM SALE OF PROPERTY (3,204,479) -- -- INCOME BEFORE INCOME TAXES 146,261,037 133,064,358 19,493,182 PROVISION FOR INCOME TAXES 27,951,409 55,868,759 8,184,460 NET INCOME 118,309,628 77,195,599 $11,308,722 Earnings per share: Basic 3.94 2.22 $0.33 Diluted 3.94 2.22 $0.33 Earnings per ADS: Basic 7.89 4.45 $0.65 Diluted 7.89 4.44 $0.65 Weighted average number of shares outstanding: Basic 30,000,000 34,718,122 34,718,122 Diluted 30,000,000 34,767,287 34,767,287 DUOYUAN GLOBAL WATER INC. AND SUBSIDIARIES UNAUDITED NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 2008 2009 2009 RMB RMB US$ REVENUE 194,972,023 255,203,895 $37,385,939 COST OF REVENUE 103,674,793 128,852,598 18,876,183 GROSS PROFIT 91,297,230 126,351,297 18,509,756 RESEARCH AND DEVELOPMENT EXPENSES 3,998,738 4,413,573 646,564 SELLING EXPENSES 10,537,292 19,225,862 2,816,481 GENERAL AND ADMINISTRATIVE EXPENSES 3,763,336 5,923,642 867,780 OPERATING INCOME 72,997,864 96,788,220 14,178,931 INTEREST EXPENSE (710,805) (298,540) (43,735) OTHER INCOME 246,246 362,942 53,169 LOSS FROM SALE OF PROPERTY -- -- -- INCOME BEFORE INCOME TAXES 72,533,305 96,852,622 14,188,365 PROVISION FOR INCOME TAXES 12,925,412 22,371,952 3,277,365 NET INCOME 59,607,893 74,480,670 $10,911,000 Earnings per share: Basic 1.99 1.70 $0.25 Diluted 1.99 1.70 $0.25 Earnings per ADS: Basic 3.97 3.41 $0.50 Diluted 3.97 3.40 $0.50 Weighted average number of shares outstanding: Basic 30,000,000 43,702,631 43,702,631 Diluted 30,000,000 43,838,207 43,838,207 NINE MONTHS ENDED SEPTEMBER 30, 2008 2009 2009 RMB RMB US$ REVENUE 443,168,505 589,579,085 $86,370,028 COST OF REVENUE 243,195,069 302,686,834 44,341,923 GROSS PROFIT 199,973,436 286,892,251 42,028,105 RESEARCH AND DEVELOPMENT EXPENSES 11,594,354 13,682,707 2,004,440 SELLING EXPENSES 26,277,454 37,505,478 5,494,342 GENERAL AND ADMINISTRATIVE EXPENSES 11,068,726 10,966,189 1,606,485 OPERATING INCOME 151,032,902 224,737,877 32,922,838 INTEREST EXPENSE (2,587,823) (923,450) (135,280) OTHER INCOME 1,020,437 805,274 117,968 LOSS FROM SALE OF PROPERTY (3,204,479) -- -- INCOME BEFORE INCOME TAXES 146,261,037 224,619,701 32,905,526 PROVISION FOR INCOME TAXES 27,951,409 55,868,759 8,184,460 NET INCOME 118,309,628 168,750,942 $24,721,066 Earnings per share: Basic 3.94 4.86 $0.71 Diluted 3.94 4.85 $0.71 Earnings per ADS: Basic 7.89 9.72 $1.42 Diluted 7.89 9.71 $1.42 Weighted average number of shares outstanding: Basic 30,000,000 34,718,122 34,718,122 Diluted 30,000,000 34,767,287 34,767,287 DUOYUAN GLOBAL WATER INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS December 31, September 30, September 30, 2008 2009 2009 (AUDITED) (UNAUDITED) (UNAUDITED) RMB RMB US$ CURRENT ASSETS: Cash 198,518,061 937,209,569 $137,295,943 Accounts receivable 137,549,786 184,060,332 26,963,806 Inventories, net of reserve for obsolescence 46,726,339 63,289,184 9,271,510 Other receivables 46,500 31,000 4,541 Other current assets 645,376 22,745 3,332 Deposits 9,990,000 29,474,320 4,317,823 Total current assets 393,476,062 1,214,087,150 177,856,955 PLANT AND EQUIPMENT, net 117,681,359 145,189,409 21,269,434 OTHER ASSETS: Prepaid leases 22,481,491 22,088,727 3,235,875 Deferred tax assets 4,446,899 4,446,899 651,446 Total other assets 26,928,390 26,535,626 3,887,321 Total assets 538,085,811 1,385,812,185 $203,013,710 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable 20,000,000 20,000,000 $2,929,888 Accounts payable 38,696,788 79,684,831 11,673,381 Other payables 24,927,232 17,541,482 2,569,729 Income taxes payable 10,768,521 24,088,093 3,528,770 Total current liabilities 94,392,541 141,314,406 20,701,768 SHAREHOLDERS' EQUITY: Ordinary shares, US$0.000033 par value: Authorized shares - 1,500,000,000; Issued and outstanding - 30,000,000 shares at December 31, 2008 and 43,702,631 shares at September 30, 2009 7,295 10,384 1,521 Additional paid-in capital 132,455,705 856,061,526 125,408,210 Statutory reserves 36,413,141 53,467,690 7,832,717 Retained earnings 274,817,129 334,958,179 49,069,494 Total shareholders' equity 443,693,270 1,244,497,779 182,311,942 Total liabilities and shareholders' equity 538,085,811 1,385,812,185 $203,013,710 DUOYUAN GLOBAL WATER INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 2008 2009 2009 RMB RMB US$ GAAP NET INCOME 59,607,893 73,396,581 $10,752,187 Share-based compensation -- 1,084,089 158,813 NON-GAAP NET INCOME 59,607,893 74,480,670 $10,911,000 GAAP Earnings per share - diluted 1.99 1.67 $0.25 Share-based compensation -- 0.03 -- NON-GAAP Earnings per share - diluted 1.99 1.70 $0.25 GAAP Earnings per ADS - diluted 3.97 3.35 $0.49 Share-based compensation -- 0.05 0.01 NON-GAAP Earnings per ADS - diluted 3.97 3.40 $0.50 Weighted average number of shares outstanding - diluted 30,000,000 43,838,207 43,838,207 NINE MONTHS ENDED SEPTEMBER 30, 2008 2009 2009 RMB RMB US$ GAAP NET INCOME 118,309,628 77,195,599 $11,308,722 Share-based compensation -- 91,555,343 13,412,344 NON-GAAP NET INCOME 118,309,628 168,750,942 $24,721,066 GAAP Earnings per share - diluted 3.94 2.22 $0.33 Share-based compensation -- 2.63 0.38 NON-GAAP Earnings per share - diluted 3.94 4.85 $0.71 GAAP Earnings per ADS - diluted 7.89 4.44 $0.65 Share-based compensation -- 5.27 0.77 NON-GAAP Earnings per ADS - diluted 7.89 9.71 $1.42 Weighted average number of shares outstanding - diluted 30,000,000 34,767,287 34,767,287

Duoyuan Global Water Inc.

CONTACT: Integrated Corporate Relations, Inc. - In New York: Ashley M.
Ammon, +1-646-277-1229; Or In Beijing: Wei-Jung Yang, +86-10-6599-7968

Web site: http://www.duoyuan-hq.com/

Pike Electric Reports Fiscal First Quarter Results

MT. AIRY, N.C., Nov. 9 /PRNewswire-FirstCall/ -- Pike Electric Corporation , a leading energy solutions provider, today announced results for its fiscal first quarter ended September 30, 2009. Total revenues in the first quarter of fiscal 2010 were $127.2 million, compared to $185.5 million in the first quarter of fiscal 2009. Core revenue increased to $124.7 million compared to $107.8 million for the same quarter last year. Storm restoration revenues declined significantly to $2.5 million compared to $77.7 million in the first quarter of fiscal 2009. The Company reported a net loss this quarter of $2.7 million, or $0.08 per diluted share, compared to net income of $18.3 million, or $0.54 per diluted share, in the first quarter last year.

"While the Company has demonstrated strong results in our engineering, transmission, and substation lines as a result of our energy solutions diversification, the core distribution work continues to underperform. The general economic weakness and a longer than anticipated deferral of maintenance spending by our customers is the longest and most significant we have experienced. These facts, coupled with the lack of storm restoration work, negatively impacted our earnings for the quarter. Our expectation for a return in maintenance spending and a general economic recovery influenced the decision to hold excess fleet assets and overhead infrastructure resources. Based on the duration of the maintenance deferral and the lack of visibility as to the timing of a return to historical maintenance spending levels, management will be restructuring our distribution model to reduce cost and realign the fleet and overhead infrastructure to better match market conditions. These actions will return the core distribution work to more historical profit margins without impacting our other diversified service lines. During this restructuring process, the company will not be updating revenue and earnings guidance," stated J. Eric Pike, Chairman and CEO.

Conference Call

The Company will host a conference call at 5:00 p.m. Eastern Time today. The call can be accessed by dialing (888) 747-4666, or (913) 312-1472 for international callers. Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Company's website at http://www.pike.com/. Click on the "Investor Center" home page and scroll down to "Upcoming Events" to access the event.

A replay will be available shortly after the call and can be accessed by dialing (888) 203-1112, or (719) 457-0820 for international callers. The passcode for the replay is 7197477. The replay will be available until midnight Eastern Time on November 16, 2009. An on-demand replay of the conference call will also remain available in the "Investor Center" of the Company's website at http://www.pike.com/ for a limited time following the conclusion of the call.

About Pike Electric

Pike Electric is a leading provider of energy solutions to over 200 investor-owned, municipal and cooperative utilities in the United States. Our comprehensive services include siting, permitting, engineering design, installation, maintenance and repair of power delivery systems, including renewable energy projects. Our common stock is traded on the New York Stock Exchange under the symbol PIKE. For more information, visit us online at http://www.pike.com/.

Safe Harbor

This press release and other statements we make from time to time in the future may contain forward-looking statements that relate to Pike Electric's plans, objectives and future estimates. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this release. The terms "should," "believe," "plan," "expect," "anticipate," "estimate," "intend" and "project" and similar words or expressions are intended to identify forward-looking statements. Various risks, uncertainties and other factors could cause actual results to differ materially from those expressed in any forward-looking statements. For a more detailed list of such risks, uncertainties and other factors, please refer to the Risk Factor section of Pike Electric's Annual Reports on Form 10-K and in its other periodic filings with the Securities and Exchange Commission. Pike Electric makes no commitment to update any forward-looking statement or to disclose any facts, events, or circumstances after the date of this release that may affect the accuracy of any forward-looking statement, except as may be required by applicable law.

PIKE ELECTRIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) Three months ended September 30, 2009 2008 ---- ---- Revenues $127,220 $185,506 Cost of operations 115,525 140,545 ------- ------- Gross profit 11,695 44,961 General and administrative expenses 13,123 13,301 Loss on sale and impairment of property and equipment 661 242 --- --- (Loss) income from operations (2,089) 31,418 Other expense (income): Interest expense 2,371 2,335 Other, net (101) (207) ---- ---- Total other expense 2,270 2,128 ----- ----- (Loss) income before income taxes (4,359) 29,290 Income tax (benefit) expense (1,654) 11,021 ------ ------ Net (loss) income $(2,705) $18,269 ======= ======= (Loss) earnings per share: Basic $(0.08) $0.55 ====== ===== Diluted $(0.08) $0.54 ====== ===== Shares used in computing (loss) earnings per share: Basic 33,077 32,987 ====== ====== Diluted 33,077 33,842 ====== ====== PIKE ELECTRIC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) September 30, June 30, 2009 2009 ---- ---- ASSETS (Unaudited) Current assets: Cash and cash equivalents $42,443 $43,820 Accounts receivable from customers, net 53,846 57,766 Costs and estimated earnings in excess of billings on uncompleted contracts 51,575 46,674 Inventories 7,959 7,718 Prepaid expenses and other 6,991 6,306 Deferred income taxes 12,170 13,649 ------ ------ Total current assets 174,984 175,933 Property and equipment, net 216,545 222,539 Goodwill 106,865 106,865 Other intangibles, net 39,168 40,139 Deferred loan costs, net 4,380 2,028 Other assets 1,464 1,465 ----- ----- Total assets $543,406 $548,969 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $17,607 $13,231 Accrued compensation 23,909 23,002 Billings in excess of costs and estimated earnings on uncompleted contracts 1,829 5,176 Accrued expenses and other 7,228 8,301 Current portion deferred compensation -- 1,402 Current portion of insurance claim accruals 24,412 26,442 ------ ------ Total current liabilities 74,985 77,554 Long-term debt 140,500 140,500 Insurance and claim accruals, net of current portion 7,825 7,335 Deferred compensation, net of current portion 5,632 5,563 Deferred income taxes 55,126 57,251 Other liabilities 3,364 3,801 Commitments and contingencies Stockholders' equity: Preferred stock, par value $0.001 per share; 100,000 shares authorized; no shares issued and outstanding -- -- Common stock, par value $0.001 per share; 100,000 shares authorized; 33,474 and 33,462 shares issued and outstanding at September 30, 2009 and June 30, 2009, respectively 6,427 6,427 Additional paid-in capital 154,216 153,035 Accumulated other comprehensive loss, net of taxes (576) (1,109) Retained earnings 95,907 98,612 ------ ------ Total stockholders' equity 255,974 256,965 ------- ------- Total liabilities and stockholders' equity $543,406 $548,969 ======== ========

Pike Electric Corporation

CONTACT: Investor Relations, Pike Electric Corporation, +1-336-719-4622,
investorrelations@pike.com

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

Specialty Underwriters' Alliance, Inc. Reports Third Quarter 2009 Financial Results

CHICAGO, Nov. 9 /PRNewswire-FirstCall/ -- Specialty Underwriters' Alliance, Inc. ("SUA" or the "Company") today announced financial results for the quarter and nine months ended September 30, 2009.

Financial Results

Gross written premiums were $70.5 million for the three months ended September 30, 2009, versus $44.2 million in the third quarter of 2008. For the nine months ended September 30, 2009, gross written premiums were $143.4 million versus $110.0 million for the same period in 2008.

Earned premiums were $44.3 million for the third quarter of 2009 compared to $37.2 million for the same quarter of 2008. Earned premiums were $114.4 million for the nine months ended September 30, 2009 compared to $107.2 million for the comparable period in 2008.

Total expenses for the three months ended September 30, 2009, were $48.1 million, consisting of loss and loss adjustment expenses of $31.8 million, acquisition expenses of $10.5 million and other operating expenses of $5.8 million. Total expenses for the three months ended September 30, 2008, were $37.2 million, consisting of loss and loss adjustment expenses of $22.4 million, acquisition expenses of $8.5 million and other operating expenses of $6.3 million.

Total expenses for the nine months ended September 30, 2009, were $122.7 million, consisting of loss and loss adjustment expenses of $75.8 million, acquisition expenses of $27.4 million and other operating expenses of $19.5 million. Total expenses for the nine months ended September 30, 2008, were $106.5 million, consisting of loss and loss adjustment expenses of $64.4 million, acquisition expenses of 24.5 million and other operating expenses of $17.6 million.

For the third quarter of 2009, net loss and loss adjustment expense ratio was 71.8 percent versus 60.2 percent for the comparable quarter in 2008.

For the nine months ended September 30, 2009, net loss and loss adjustment expense ratio was 66.3 percent versus 60.1 percent for the comparable nine months in 2008.

Net investment income for the three months ended September 30, 2009, was $2.7 million, compared to $2.6 million for the prior year period. Total revenues were $46.0 million for the third quarter of 2009, compared to $39.0 million for the third quarter of 2008. Net investment income for the nine months ended September 30, 2009, was $8.3 million, compared to $7.9 million for the prior year period. Total revenues were $121.3 million for the nine months ended September 30, 2009, compared to $114.3 million for the comparable period in 2008.

Net loss for the quarter ended September 30, 2009, was $1.3 million, compared to net income of $1.3 million for the comparable period in 2008. Net loss for the nine months ended September 30, 2009, was $0.8 million, compared to net income of $7.0 million for the comparable period in 2008.

Losses per share for the three months ended September 30, 2009, was $0.08 compared to earnings per share of $0.08 for the same period in 2008. Losses per share for the nine months ended September 30, 2009, was $0.05 compared to earnings per share of $0.45 for the same period in 2008.

Financial Condition

As of September 30, 2009, the Company reported investments of $304.6 million, total assets of $491.9 million, total liabilities of $347.6 million and stockholders' equity of $144.3 million. Book value per share as of September 30, 2009, was $9.06 and tangible book value per share was $8.39. As of December 31, 2008, the Company reported investments of $263.4 million, total assets of $454.9 million, total liabilities of $318.6 million and stockholders' equity of $136.3 million. Book value per share as of December 31, 2008 was $8.62 and tangible book value per share was $7.94. Book value includes unrealized gains of $5.5 million as of September 30, 2009 as compared to unrealized losses of $2.2 million as of December 31, 2008.

About Specialty Underwriters' Alliance, Inc.

Specialty Underwriters' Alliance, Inc., through its subsidiary SUA Insurance Company, is a specialty property and casualty insurance company providing commercial insurance products through exclusive wholesale Partner Agents that serve niche groups of insureds. These targeted customers require highly specialized knowledge due to their unique risk characteristics. Examples include tow trucks, professional employer organizations, public entities, and contractors. SUA's innovative approach provides products and claims handling, allowing the Partner Agent to focus on distribution and customer relationships.

Safe Harbor Statement

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This release or any other written or oral statements made by or on behalf of the company may include forward-looking statements that reflect the company's current views with respect to future events and financial performance. All statements other than statements of historical fact included in this release are forward-looking statements. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may," "will," "plan," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or their negative or variations or similar terminology. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include but are not limited to ineffectiveness or obsolescence of our business strategy due to changes in current or future market conditions; increased competition on the basis of pricing, capacity, coverage terms or other factors; greater frequency or severity of claims and loss activity, including as a result of natural or man-made catastrophic events, than our underwriting, reserving or investment practices anticipate based on historical experience or industry data; the effects of acts of terrorism or war; developments in the world's financial and capital markets that adversely affect the performance of our investments; changes in regulations or laws applicable to us, our subsidiaries, brokers or customers; acceptance of our products and services, including new products and services; changes in the availability, cost or quality of reinsurance and failure of our reinsurers to pay claims timely or at all; decreased demand for our insurance or reinsurance products; loss of the services of any of our executive officers or other key personnel; the effects of mergers, acquisitions and divestitures; changes in rating agency policies or practices; changes in legal theories of liability under our insurance policies; changes in accounting policies or practices; and changes in general economic conditions, including inflation and other factors. Forward-looking statements speak only as of the date on which they are made, and the company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Summary Financial Data (in millions, except per share data) For the Three Months For the Nine Moths Ended September 30, Ended September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Results of operations Gross written premiums $70.5 $44.2 $143.4 $110.0 Net written premiums 68.3 42.1 137.1 103.8 Earned premiums $44.3 $37.2 $114.4 107.2 Net investment income 2.7 2.6 8.3 7.9 Net Realized gains (losses) (1.0) (0.8) (1.4) (0.8) ---- ----- ---- ---- Total revenues 46.0 39.0 121.3 114.3 ---- ---- ----- ----- Loss and loss adjustment expenses 31.8 22.4 75.8 64.4 Acquisition expenses 10.5 8.5 27.4 24.5 Other operating expenses 5.8 6.3 19.5 17.6 --- --- ---- ---- Total expenses 48.1 37.2 122.7 106.5 ---- ---- ----- ----- Pre-tax income (loss) (2.1) 1.8 (1.4) 7.8 Income tax benefit/(expense) 0.8 (0.5) 0.6 (0.8) --- ---- --- ---- Net income (loss) $(1.3) $1.3 $(0.8) $7.0 ===== ==== ===== ==== Key ratios Net loss and loss adjustment expense ratio 71.8% 60.2% 66.3% 60.1% Ratio of acquisition expenses to earned premiums 23.7% 22.8% 24.0% 22.9% Ratio of all other expenses to gross written premiums 8.2% 14.3% 13.6% 16.0% Net income (loss) per share Basic and diluted $(0.08) $0.08 $(0.05) $0.45 Weighted Average Shares Outstanding Basic 15.9 15.5 15.9 15.6 Diluted 15.9 15.6 15.9 15.7 Summary Financial Data (in millions, except per share data) As of As of September 30, December 31, Assets 2009 2008 ------ ---- ---- Investments $304.6 $263.4 Cash 1.5 0.2 Insurance premiums receivable 59.2 60.7 Reinsurance recoverable on unpaid loss and loss adjustment expenses* 73.9 79.6 Prepaid reinsurance premiums 0.3 0.3 Investment income accrued 2.5 2.5 Equipment and capitalized software at cost (less accumulated depreciation of $20.5 and $15.5) 12.4 13.6 Intangible assets 10.7 10.7 Deferred acquisition costs 21.4 18.2 Federal income tax recoverable 1.2 0.1 Deferred tax asset - 3.2 Other assets 4.2 2.4 --- --- Total assets $491.9 $454.9 ====== ====== Liabilities Loss and loss adjustment expense reserves* $222.2 $215.0 Unearned insurance premiums 103.3 80.6 Insured deposit funds 13.3 15.8 Deferred tax liability 0.7 - Accounts payable and other liabilities 8.1 7.2 --- --- Total liabilities 347.6 318.6 ----- ----- Stockholders' equity Common stock at $0.01 par value per share - authorized: 30.0 shares; issued: 14.8 and 14.7 shares; outstanding: 14.6 shares and 14.4 shares 0.1 0.1 Class B common stock at $0.01 par value per share - authorized: 2.0 shares; issued and outstanding: 1.4 shares and 1.4 shares 0.0 0.0 Paid in capital - Common Stock 130.6 129.9 Paid in capital - Class B Common Stock 7.8 8.1 Accumulated earnings 1.3 1.7 Treasury stock (1.0) (1.3) Accumulated other comprehensive income (loss) 5.5 (2.2) --- ----- Total stockholders' equity 144.3 136.3 ----- ----- Total liabilities and stockholders' equity $491.9 $454.9 ====== ====== Book value data Shares outstanding at end of period 16.1 15.8 Book value per share $9.06 $8.62 Tangible book value per share $8.39 $7.94 * Includes $43.7 million and $53.2 million as of September 30, 2009 and December 31, 2008 of direct gross loss and loss adjustment expense reserves of Potomac Insurance Company of Illinois, which reinsured all of its direct liabilities to OneBeacon Insurance Company and is reflected on SUA's balance sheet as a reinsurance recoverable. Gross Written Premium Data For the Three Months Ended September 30 (in millions, except percentages) Three Months Ended Three Months Ended September 30, 2009 September 30, 2008 ------------------ ------------------ Percentage Percentage Gross of Gross Gross of Gross Written Written Written Written Premium Premium Premium Premium ------- ------- ------- ------- (dollars in millions) Specialty Risk Solutions, LLC $42.6 60.4% $16.1 36.5% Risk Transfer Programs, LLC 6.7 9.5% 12.5 28.3% American Team Managers 6.1 8.7% 6.2 14.0% Appalachian Underwriters, Inc. 5.7 8.1% 1.6 3.6% AEON Insurance Group, Inc. 3.8 5.4% 5.1 11.5% Northern Star Management, Inc. 3.7 5.2% 1.6 3.6% First Light Program Manages, Inc. 1.6 2.3% 0.6 1.4% Insential, Inc. 0.2 0.3% 0.3 0.7% Flying Eagle Insurance Services, Inc. - 0.0% 0.1 0.2% Other 0.1 0.1% 0.1 0.2% --- ---- --- ---- Total $70.5 100.0% $44.2 100.0% ===== ====== ===== ====== Three Months Ended Three Months Ended September 30, 2009 September 30, 2008 ------------------ ------------------ Percentage Percentage Gross of Gross Gross of Gross Written Written Written Written Premium Premium Premium Premium ------- ------- ------- ------- (dollars in millions) California $51.0 72.4% $26.0 58.8% Florida 5.1 7.2% 3.3 7.5% Texas 2.5 3.5% 6.9 15.6% Other states 11.9 16.9% 8.0 18.1% ---- ----- --- ----- Total $70.5 100.0% $44.2 100.0% ===== ====== ===== ====== Three Months Ended Three Months Ended September 30, 2009 September 30, 2008 ------------------ ------------------ Percentage Percentage Gross of Gross Gross of Gross Written Written Written Written Premium Premium Premium Premium ------- ------- ------- ------- (dollars in millions) General liability $43.5 61.7% $18.8 42.5% Workers' compensation 15.5 22.0% 15.7 35.5% Commercial automobile 10.9 15.4% 9.0 20.4% All other 0.6 0.9% 0.7 1.6% --- ---- --- ---- Total $70.5 100.0% $44.2 100.0% ===== ====== ===== ====== Gross Written Premium Data For the Nine months Ended September 30 (in millions, except percentages) Nine months Ended Nine months Ended September 30, 2009 September 30, 2008 ------------------ ------------------ Percentage Percentage Gross of Gross Gross of Gross Written Written Written Written Premium Premium Premium Premium ------- ------- ------- ------- (dollars in millions) Specialty Risk Solutions, LLC $46.7 32.6% $17.0 15.4% Risk Transfer Programs, LLC 35.3 24.6% 44.0 40.0% American Team Managers 18.0 12.6% 18.9 17.2% Appalachian Underwriters, Inc. 17.1 11.9% 5.5 5.0% AEON Insurance Group, Inc. 11.2 7.8% 15.8 14.4% Northern Star Management, Inc. 8.3 5.8% 3.6 3.3% First Light Program Manages, Inc. 5.8 4.0% 2.0 1.8% Insential, Inc. 0.6 0.4% 1.0 0.9% Flying Eagle Insurance Services, Inc. 0.1 0.1% 0.6 0.5% Other 0.3 0.2% 1.6 1.5% --- ---- --- ---- Total $143.4 100.0% $110.0 100.0% ====== ====== ====== ====== Nine months Ended Nine months Ended September 30, 2009 September 30, 2008 ------------------ ------------------ Percentage Percentage Gross of Gross Gross of Gross Written Written Written Written Premium Premium Premium Premium ------- ------- ------- ------- (dollars in millions) California $70.9 49.5% $51.7 47.0% Florida 18.7 13.0% 15.7 14.3% Texas 9.6 6.7% 13.1 11.9% Other states 44.2 30.8% 29.5 26.8% ---- ----- ---- ----- Total $143.4 100.0% $110.0 100.0% ====== ====== ====== ====== Nine months Ended Nine months Ended September 30, 2009 September 30, 2008 ------------------ ------------------ Percentage Percentage Gross of Gross Gross of Gross Written Written Written Written Premium Premium Premium Premium ------- ------- ------- ------- (dollars in millions) Workers' compensation $59.6 41.6% $53.9 49.0% General liability 49.8 34.7% 26.9 24.5% Commercial automobile 32.3 22.5% 27.0 24.5% All other 1.7 1.2% 2.2 2.0% --- ---- --- ---- Total $143.4 100.0% $110.0 100.0% ====== ====== ====== ======

Specialty Underwriters' Alliance, Inc.

CONTACT: Scott Goodreau of Specialty Underwriters' Alliance, Inc.,
1-888-782-4672, sgoodreau@suainsurance.com; or Leslie Loyet of Financial
Relations Board, +1-312-640-6672, lloyet@mww.com, for Specialty Underwriters'
Alliance, Inc.

Deerfield Capital Corp. Announces Third Quarter 2009 Results

CHICAGO, Nov. 9 /PRNewswire-FirstCall/ -- Deerfield Capital Corp. (NYSE AMEX: DFR) ("DFR" or the "Company") today announced the results of operations for its third quarter ended September 30, 2009.

Third Quarter 2009 Summary -- Net income attributable to DFR for the quarter totaled $1.8 million, or $0.27 per diluted common share. -- Core earnings for the quarter totaled $5.2 million, or $0.77 per diluted common share. Core earnings is a non-GAAP financial measure which primarily reflects GAAP earnings excluding certain non-cash and special charges and income tax effects (see reconciliation of non-GAAP measure attached). -- Debt in the form of trust preferred securities amended to decrease net worth covenant contained therein from $175 million to $50 million and to provide that the initial measurement date for compliance with such covenant will be September 30, 2012. -- Unrestricted cash, cash equivalents, unencumbered residential mortgage backed securities ("RMBS") and net equity in financed RMBS totaled approximately $61.4 million at quarter end. -- Assets under management ("AUM") totaled $9.6 billion at October 1, 2009.

Commenting on the third quarter results, Jonathan Trutter, Chief Executive Officer, said, "We are pleased to announce our third consecutive quarter of positive net income and core earnings. The stabilization of our financial results, strong liquidity position and permanent amendments to our trust preferred debt are significant accomplishments that we expect will improve the overall future outlook for DFR." Trutter added, "We continue to actively pursue new business opportunities to provide top line revenue growth as well as potential strategic opportunities to improve stockholder value."

Third Quarter Financial Overview

The results for the quarter ended September 30, 2009 reflect the Company's third consecutive quarter of positive net income and core earnings. The net income attributable to DFR for the quarter totaled $1.8 million, or $0.27 per diluted common share, a decline of $51.1 million as compared to $52.9 million, or $7.85 per diluted common share, during the second quarter of 2009. The Company's decline in net income for the quarter, as compared to the second quarter of 2009, was primarily related to the non-recurring deconsolidation of Market Square CLO Ltd. ("Market Square CLO") as of June 30, 2009. Market Square CLO provided $1.8 million of net interest income and $58.3 million in other income and gain (loss), $29.6 million of which was directly related to the deconsolidation of Market Square CLO and $28.7 million was related to appreciation of loans in the Market Square CLO portfolio, during the second quarter of 2009. The third quarter of 2009 showed a reduction in both the provision for loan losses and total expenses by $4.9 million and $4.3 million, respectively, as compared to the second quarter of 2009.

During the third quarter, DFR also had positive core earnings of $5.2 million, or $0.77 per share, a decrease of $0.3 million, or 5.5 percent, as compared to the $5.5 million, or $0.82 per share, of core earnings generated during the second quarter of 2009. Third quarter 2009 core earnings, which did not benefit from any contributions from Market Square CLO (as a result of its deconsolidation as of June 30, 2009), compare favorably with the second quarter 2009 core earnings, which included a net contribution of $1.7 million from Market Square CLO.

Net interest income totaled $7.0 million for the quarter ended September 30, 2009, a decrease of $1.4 million, or 16.7 percent, as compared to $8.4 million in the second quarter of 2009. The deconsolidation of Market Square CLO as of June 30, 2009 resulted in a $1.8 million decrease in net interest income compared to the second quarter of 2009. This decrease in net interest income was partially offset by a $0.6 million reduction in interest expense as compared to the second quarter of 2009 (excluding Market Square CLO) primarily resulting from the overall lower interest rate environment during the quarter. While interest income attributable to DFR Middle Market CLO Ltd. ("DFR MM CLO") and the Company's other corporate debt portfolio declined by $0.3 million and $0.3 million, respectively, interest income attributable to the Company's RMBS portfolio increased by $0.2 million, as compared to the second quarter of 2009.

Investment advisory fees totaled $3.9 million in the quarter, a decline of $0.1 million, or 2.5 percent, as compared to $4.0 million in the second quarter of 2009. The decrease in investment advisory fees was primarily the result of noncompliance with certain overcollateralization tests contained in the indentures governing certain of the collateralized loan obligations ("CLOs") that the Company manages. All or a portion of the Company's subordinated management fees from the CLOs may be deferred if, among other things, noncompliance with overcollateralization tests and other structural provisions cause cash flows from the CLOs to be diverted from the payment of management fees and other expenses to the prepayment of principal of the debt securities issued by the CLOs. Noncompliance with overcollateralization tests may occur if, for example, the issuers of the collateral held by the CLOs default on or defer payment of principal or the ratings assigned to such collateral are downgraded below a specified threshold. The Company expects substantially all of its CLO subordinated investment advisory fees to continue to be deferred in the near term. However, over time and with improvement in market conditions and effective portfolio management, the Company expects the CLOs to regain compliance with the overcollateralization tests and, subject to the satisfaction of certain other conditions, the Company would expect to recoup at least a portion and potentially substantially all of the deferred subordinated management fees and to receive future CLO subordinated management fees on a current basis.

The provision for loan losses was $4.2 million for the quarter as compared to $9.1 million in the second quarter of 2009. This quarter's provision for loan losses related entirely to loans held in DFR MM CLO.

Expenses totaled $7.7 million for the quarter, a decrease of $4.3 million, or 35.8 percent, as compared to $12.0 million in the second quarter of 2009. The decrease was primarily the result of $3.6 million of expenses recorded during the second quarter of 2009 related to Deerfield Pegasus Loan Capital LP ("DPLC"), the Company's investment venture with Pegasus Capital Advisors L.P. which the Company is required to consolidate, $3.2 million of which were one-time organizational and structuring fees. The expenses were paid by DPLC but are consolidated for GAAP reporting purposes. Net income (loss) related to the portion of DPLC that the Company does not own is added back to the Company's statement of operations as "Net (income) loss attributable to noncontrolling interest" in arriving at "Net income attributable to DFR." Excluding the $3.2 million of one-time expenses related to DPLC, third quarter expenses declined by $1.1 million, or 12.5 percent, as compared to the second quarter of 2009. The $0.4 million decline in compensation and benefits was primarily the result of a higher bonus accrual during the second quarter of 2009 as compared to the third quarter. The $0.7 million decrease in other general and administrative expenses during the third quarter of 2009 (excluding the one-time organizational expenses) was primarily the result of the Company's annual stock compensation award to the board of directors and a one-time success fee paid to our chairman during the second quarter of 2009.

Other income and gain (loss) was a net gain of $3.0 million in the quarter as compared to a net gain of $58.7 million in the second quarter of 2009. The decline in the current quarter primarily resulted from the deconsolidation of Market Square CLO on June 30, 2009. During the second quarter of 2009, Market Square CLO contributed $29.6 million of gains as a result of deconsolidation and $28.7 million in gains on its loan portfolio.

Trust Preferred Debt Amendment

As previously announced, on July 31, 2009, the Company entered into three supplemental indentures (the "Supplemental Indentures") with the holders of the trust preferred securities issued by each of Deerfield Capital Trust I, Deerfield Capital Trust II and Deerfield Capital Trust III (collectively the "Trust Preferred Securities"). The Supplemental Indentures amend the consolidated net worth covenants (the "Net Worth Covenants") contained in the indentures governing the Trust Preferred Securities to (i) permanently decrease the net worth required by the Net Worth Covenants from $175 million to $50 million and (ii) provide that the initial measurement date for compliance with the Net Worth Covenants will be September 30, 2012. These provisions supersede the temporary waiver of the Net Worth Covenants obtained from the holders of the Trust Preferred Securities in November 2008. The Supplemental Indentures also contain provisions prohibiting the Company from incurring additional indebtedness and declaring additional dividends and distributions on its capital stock, in each case for the life of the Trust Preferred Securities and except as specifically permitted under the terms of the Supplemental Indentures.

AUM

As of October 1, 2009, the Company's AUM totaled approximately $9.6 billion held in 28 collateralized debt obligations ("CDOs"), DPLC and six separately managed accounts.

Investment Portfolio

Total invested assets increased by $7.3 million, or 1.2 percent, to $620.2 million as of September 30, 2009 as compared to the end of the second quarter of 2009. The increase was primarily attributable to purchases of investments in DPLC.

Liquidity

Unencumbered RMBS and unrestricted cash and cash equivalents aggregated $50.6 million at September 30, 2009. In addition, net equity in the financed RMBS portfolio (including associated interest rate swaps), excluding the unencumbered RMBS included above, totaled $10.8 million at quarter end. In total, the Company had unrestricted cash and cash equivalents, unencumbered RMBS and net equity in its financed RMBS portfolio of $61.4 million as of September 30, 2009. As of September 30, 2009, the fair value of its Agency RMBS and non-Agency RMBS portfolios were $314.0 million and $2.9 million, respectively.

About the Company

DFR, through its subsidiary, Deerfield Capital Management LLC, manages client assets, including bank loans and other corporate debt, RMBS, government securities and asset-backed securities. In addition, DFR has a principal investing portfolio comprised of fixed income investments, including bank loans and other corporate debt and RMBS.

For more information, please go to the Company website, at http://www.deerfieldcapital.com/.

* * Notes and Tables to Follow * * NOTES TO PRESS RELEASE

Certain statements in this press release are forward-looking as defined by the Private Securities Litigation Reform Act of 1995. These include statements regarding future results or expectations. Forward-looking statements can be identified by forward looking language, including words such as "believes," "anticipates," "expects," "estimates," "intends," "may," "plans," "projects," "will" and similar expressions, or the negative of these words. Such forward-looking statements are based on facts and conditions as they exist at the time such statements are made. Forward-looking statements are also based on predictions as to future facts and conditions, the accurate prediction of which may be difficult and involve the assessment of events beyond the control of Deerfield Capital Corp. and its subsidiaries ("DFR"). Forward-looking statements are further based on various operating assumptions. Caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, actual results may differ materially from expectations or projections. DFR does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to matters discussed in this press release, except as may be required by applicable securities laws.

Various factors could cause DFR's actual results to differ materially from those described in any forward-looking statements. These factors include, but are not limited to: changes in economic and market conditions, particularly as they relate to the markets for debt securities, such as RMBS and CDOs; continued availability of financing; DFR's ability to maintain adequate liquidity; changes in DFR's investment, hedging or credit strategies or the performance and values of its investment portfolios; whether the conditions to Pegasus Capital Advisors L.P.'s DPLC investment commitments are satisfied; DFR's ability to comply with the continued listing standards of the NYSE Amex LLC; DFR's ability to generate earnings or raise capital to maintain positive stockholders' equity; reductions in DFR's assets under management and related management and advisory fee revenue; DFR's ability to make investments in new investment products and realize growth of fee-based income; DFR's receipt of previously deferred CLO subordinated management fees and its receipt of future CLO subordinated management fees on a current basis; changes to DFR's tax status; DFR's ability to protect and use its net operating losses to offset taxable income; DFR's ability to maintain compliance with its existing debt instruments and other contractual obligations; impact of restrictions contained in DFR's existing debt instruments; DFR's ability to maintain its exemption from registration as an investment company pursuant to the Investment Company Act of 1940; the cost, uncertainties and effect of any legal and administrative proceedings, such as the current Securities and Exchange Commission ("SEC") investigation into certain mortgage-backed securities trading procedures in connection with which the SEC has requested certain information from DFR regarding certain of its mortgage securities trades; DFR's ability to enter into, and the effects of, any potential strategic transactions; and changes in, and the ability of DFR to remain in compliance with, law, regulations or government policies affecting DFR's business, including investment management regulations and accounting standards.

These and other factors that could cause DFR's actual results to differ materially from those described in the forward-looking statements are set forth in DFR's annual report on Form 10-K for the year ended December 31, 2008, DFR's quarterly reports on Form 10-Q and DFR's other public filings with the SEC and public statements. Readers of this press release are cautioned to consider these risks and uncertainties and not to place undue reliance on any forward-looking statements.

DEERFIELD CAPITAL CORP. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) September June September 30, 30, 30, 2009 2009 2008 ---- ---- ---- (In thousands, except share and per share amounts) ------------------------------- ASSETS Cash and cash equivalents $47,542 $41,846 $41,908 Due from broker 1,004 3,621 12,715 Restricted cash and cash equivalents 21,786 27,201 63,034 Available-for-sale securities-at fair value - - 5,078 Investments at fair value, including $315,241, $309,278 and $408,660 pledged 336,170 318,310 415,462 Other investments 4,287 4,780 4,764 Derivative assets 74 61 2,004 Loans held for sale 9,053 9,363 267,419 Loans held for investment 295,916 309,021 356,709 Allowance for loan losses (24,131) (28,589) (21,596) ------- ------- ------- Loans held for investment, net of allowance for loan losses 271,785 280,432 335,113 Investment advisory fee receivables 2,189 2,009 4,077 Interest receivable 3,447 3,287 7,804 Other receivable 1,995 1,264 3,131 Prepaid and other assets 8,373 8,410 12,911 Fixed assets, net 8,181 8,498 9,470 Intangible assets, net 24,246 25,558 36,364 ------ ------ ------ TOTAL ASSETS $740,132 $734,640 $1,221,254 ======== ======== ========== LIABILITIES Repurchase agreements, including $74, $83 and $336 of accrued interest $306,304 $294,470 $383,617 Due to broker 2,975 1,800 2,298 Dividend Payable - - 7,354 Derivative liabilities 832 953 7,927 Interest payable 1,255 1,661 4,901 Accrued and other liabilities, including $414, zero and zero at fair value 4,955 4,210 15,209 Short term debt - - 172 Long term debt 417,921 427,530 736,408 ------- ------- ------- TOTAL LIABILITIES 734,242 730,624 1,157,886 ------- ------- --------- STOCKHOLDERS' EQUITY Preferred stock, par value $0.001: 100,000,000 shares authorized; 14,999,992 shares issued and zero outstanding - - - Common stock, par value $0.001: 500,000,000 shares authorized; 6,455,357 and 6,455,466 and 6,676,106 shares issued and 6,454,924 and 6,454,924 and 6,669,742 shares outstanding 6 6 7 Additional paid-in capital 866,546 866,534 866,330 Accumulated other comprehensive loss (111) (49) (1,525) Accumulated deficit (877,832) (879,648) (801,444) -------- -------- -------- DEERFIELD CAPITAL CORP. STOCKHOLDERS' (DEFICIT) EQUITY (11,391) (13,157) 63,368 Noncontrolling interest in consolidated entity 17,281 17,173 - ------ ------ --- TOTAL STOCKHOLDERS' EQUITY 5,890 4,016 63,368 ----- ----- ------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $740,132 $734,640 $1,221,254 ======== ======== ========== DEERFIELD CAPITAL CORP. AND ITS SUBSIDIARIES CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) Three months ended ------------------- Nine months ended September June September September 30, 30, 30, 30, ------------- 2009 2009 2008 2009 2008 ---- ---- ---- ---- ---- (In thousands, except share and per share amounts) -------------------------------------------------- Revenues Interest income $10,839 $14,098 $20,506 $38,719 $103,680 Interest expense 3,866 5,666 11,671 16,531 71,692 ----- ----- ------ ------ ------ Net interest income 6,973 8,432 8,835 22,188 31,988 Provision for loan losses 4,226 9,119 15,459 15,452 19,961 ----- ----- ------ ------ ------ Net interest income (expense) after provision for loan losses 2,747 (687) (6,624) 6,736 12,027 Investment advisory fees 3,949 4,009 9,015 12,695 33,493 ----- ----- ----- ------ ------ Total net revenues 6,696 3,322 2,391 19,431 45,520 ----- ----- ----- ------ ------ Expenses Compensation and benefits 2,637 3,029 4,984 9,020 21,720 Professional services 788 728 2,211 2,306 5,941 Insurance expense 778 771 740 2,313 2,207 Other general and administrative expenses 928 4,814 1,417 6,688 4,697 Depreciation and amortization 1,630 1,629 2,498 4,894 7,765 Occupancy 610 569 645 1,818 1,875 Management and incentive fee expense to related party 337 295 - 632 - Cost savings initiatives 11 28 (2) 236 325 Impairment of intangible assets and goodwill - 126 110,268 126 139,302 --- --- ------- --- ------- Total expenses 7,719 11,989 122,761 28,033 183,832 ----- ------ ------- ------ ------- Other Income and Gain (Loss) Net loss on available-for-sale securities - - (856) (31) (4,712) Net gain (loss) on investments at fair value 2,983 1,173 (13,655) 9,294 (216,121) Net gain (loss) on loans 539 24,876 (14,367) 31,230 (35,404) Net (loss) gain on derivatives (57) 2,981 (2,239) 2,520 (219,384) Dividend income and other net gain (loss) (443) 152 (678) (340) (484) Net gain on the deconsolidation of Market Square CLO - 29,551 - 29,551 - --- ------ --- ------ --- Net other income and gain (loss) 3,022 58,733 (31,795) 72,224 (476,105) ----- ------ ------- ------ -------- Income (loss) before income tax expense 1,999 50,066 (152,165) 63,622 (614,417) Income tax expense 75 160 4,718 253 384 --- --- ----- --- --- Net income (loss) 1,924 49,906 (156,883) 63,369 (614,801) Less: Cumulative convertible preferred stock dividends and accretion - - - - 2,393 --- --- --- --- ----- Net income (loss) attributable to common stockholders 1,924 49,906 (156,883) 63,369 (617,194) Net (income) loss attributable to noncontrolling interest (108) 2,960 - 2,852 - ---- ----- --- ----- --- Net income (loss) attributable to Deerfield Capital Corp. $1,816 $52,866 $(156,883) $66,221 $(617,194) ====== ======= ========= ======= ========= Net income (loss) attributable to Deerfield Capital Corp. per share - basic $0.27 $7.85 $(22.81) $9.84 $(95.89) Net income (loss) attributable to Deerfield Capital Corp. per share - diluted $0.27 $7.85 $(22.81) $9.84 $(95.89) WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC 6,763,088 6,730,655 6,878,260 6,732,272 6,436,583 WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED 6,763,088 6,730,655 6,878,260 6,732,272 6,436,583 DEERFIELD CAPITAL CORP. AND ITS SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURE The Company believes that core earnings, a non-GAAP financial measure, is a useful metric for evaluating and analyzing its performance. The calculation of core earnings, which the Company uses to compare financial results from period to period, eliminates the impact of certain non-cash and special charges and income tax. Core earnings provided herein may not be comparable to similar measures presented by other companies as it is a non-GAAP financial measure and may therefore be defined differently by other companies. Core earnings includes the earnings from the Company's consolidated variable interest entity ("VIE"), DFR MM CLO, and from Market Square CLO, which was a consolidated VIE until the Company sold all of its preference shares in Market Square CLO and deconsolidated that entity as of June 30, 2009. Core earnings is not indicative of cash flows received from these VIEs. Core Earnings The table below provides reconciliation between net income (loss) and core earnings: Three months ended ------------------ Nine months ended September June September September 30, 30, 30, 30, ----------------- 2009 2009 2008 2009 2008 ---- ---- ---- ---- ---- (In thousands, except share and per share amounts) ---------------------------------------------------- Net income (loss) $1,924 $49,906 $(156,883) $63,369 $(614,801) Add back: Provision for loan losses 4,226 9,119 15,459 15,452 19,961 Cost savings initiatives 11 28 (2) 236 325 Depreciation and amortization 1,630 1,629 2,498 4,894 7,765 Impairment of intangible assets and goodwill - 126 110,268 126 139,302 Net other income and (gain) loss (3,022) (58,733) 31,795 (72,224) 476,105 Income tax expense 75 160 4,718 253 384 Noncontrolling interest core earnings (1) 379 3,297 - 3,676 - --- ----- --- ----- --- Core earnings $5,223 $5,532 $7,853 $15,782 $29,041 ====== ====== ====== ======= ======= Core earnings per share - diluted $0.77 $0.82 $1.14 $2.34 $4.51 Weighted-average number of shares outstanding - diluted 6,763,088 6,730,655 6,878,260 6,732,272 6,436,583 (1) Noncontrolling interest core earnings represents the portion of the net interest income and expenses of DPLC that are attributable to third party investors in DPLC, calculated using each investor's ownership percentage in DPLC during the measurement period. DEERFIELD CAPITAL CORP. AND ITS SUBSIDIARIES INVESTMENT ADVISORY FEES AND INTEREST INCOME AND EXPENSE The following table summarizes the Company's investment advisory fees and interest income and expense: Three months ended ------------------ Nine months ended September June September September 30, 30, 30, 30, ------------- 2009 2009 2008 2009 2008 ---- ---- ---- ---- ---- (In thousands) -------------- CDO management fees: Senior fees $3,094 $2,892 $3,637 $8,924 $11,710 Subordinated fees 441 525 3,440 2,369 10,628 Performance fees 67 245 - 464 2,774 --- --- --- --- ----- Total CDO management fees 3,602 3,662 7,077 11,757 25,112 Separately managed accounts and other 198 223 236 664 745 Other investment vehicle 149 124 - 274 - Fixed income arbitrage investment funds - - 1,702 - 7,636 --- --- ----- --- ----- Total investment advisory fees $3,949 $4,009 $9,015 $12,695 $33,493 ====== ====== ====== ======= ======= Interest Income: RMBS, U.S. Treasury bills and other securities $4,418 $4,258 $6,029 $13,237 $55,837 Assets held in Market Square CLO - 3,003 4,186 6,073 13,694 Assets held in DFR MM CLO 5,951 6,226 6,781 17,997 22,024 Assets held in DPLC 162 35 - 197 - Other corporate debt 308 576 3,510 1,215 12,125 --- --- ----- ----- ------ Total interest income 10,839 14,098 20,506 38,719 103,680 ====== ====== ====== ====== ======= Interest Expense: Recourse: Repurchase agreements and other short term debt $545 $605 $2,789 $1,842 $42,577 Series A and Series B notes 1,208 1,311 1,713 3,859 5,202 Trust preferred securities 1,265 1,382 1,949 4,270 6,194 ----- ----- ----- ----- ----- Total recourse interest expense 3,018 3,298 6,451 9,971 53,973 ----- ----- ----- ----- ------ Non-Recourse Market Square CLO - 1,205 2,407 2,910 8,326 DFR MM CLO 846 1,131 2,135 3,522 7,354 Wachovia Facility 2 32 678 128 2,039 --- --- --- --- ----- Total non-recourse interest expense 848 2,368 5,220 6,560 17,719 --- ----- ----- ----- ------ Total interest expense $3,866 $5,666 $11,671 $16,531 $71,692 ====== ====== ======= ======= ======= DEERFIELD CAPITAL CORP. AND ITS SUBSIDIARIES AUM AND INVESTMENT PORTFOLIO The following table summarizes AUM for each product category: October 1, 2009 July 1, 2009 October 1, 2008 --------------- ------------- --------------- Number of Number of Number of Accounts AUM Accounts AUM Accounts AUM -------- --- -------- --- -------- --- (In (In (In thousands) thousands) thousands) --------- --------- --------- CDOs (1) : CLOs 12 $4,164,083 12 $4,098,226 14 $4,738,850 Asset-backed securities 12 4,244,704 12 4,561,067 12 5,780,808 Corporate bonds 4 833,840 4 855,050 3 797,139 --- ------- --- ------- --- ------- Total CDOs 28 9,242,627 28 9,514,343 29 11,316,797 Other investment vehicle (2) 1 22,175 1 22,106 0 - Fixed income arbitrage 0 - 0 - 1 330,959 Separately managed accounts (3) 6 318,577 6 322,928 6 267,295 ------- ------- ------- Total AUM (4) $9,583,379 $9,859,377 $11,915,051 ========== ========== =========== (1) CDO AUM numbers generally reflect the aggregate principal or notional balance of the collateral and, in some cases, the cash balance held by the CDOs and are as of the date of the last trustee report received for each CDO prior to October 1, 2009, July 1, 2009 and October 1, 2008, respectively. The AUM for our Euro-denominated CDOs has been converted into U.S. dollars using the spot rate of exchange on September 30, 2009, June 30, 2009 and September 30, 2008, respectively. (2) Other investment vehicle AUM represents the AUM of DPLC. (3) AUM for certain of the separately managed accounts is a multiple of the capital actually invested in such account. Management fees for these accounts are paid on this higher AUM amount. (4) Included in Total AUM for October 1, 2009 is $286.3 million related to DFR MM CLO. Included in Total AUM for July 1, 2009 is $289.8 million related to DFR MM CLO. Included in Total AUM for October 1, 2008 are $294.1 million and $300.9 million related to Market Square CLO and DFR MM CLO, respectively. DCM manages DFR MM CLO but is not contractually entitled to receive any management fees so long as 100 percent of the equity is held by Deerfield Capital LLC or an affiliate thereof. The following table summarizes the principal investing portfolio: September 30, 2009 June 30, 2009 September 30, 2008 ------------------ ------------- ------------------ % of % of % of Total Total Total Principal Carrying Invest- Carrying Invest- Carrying Invest- Investments Value ments Value ments Value ments ------------ ----- ------ ----- ------ ----- ------ (In (In (In thousands) thousands) thousands) --------- --------- --------- RMBS (1) $316,920 49.2% $311,154 48.5% $414,502 39.5% Corporate leveraged loans: Loans held in DFR MM CLO (2) 286,540 44.5% 299,751 46.7% 256,818 24.5% Loans held in Wachovia Facility - 0.0% 1,251 0.2% 77,676 7.4% Other corporate leveraged loans 9,053 1.4% 8,112 1.3% 32,259 3.1% Loans held in DPLC 14,807 2.3% 6,841 1.1% - 0.0% Assets held in Market Square CLO (3) - 0.0% - 0.0% 250,082 23.8% Commercial real estate loans and securities 9,376 1.4% 9,270 1.4% 12,371 1.2% Equity securities 4,287 0.7% 4,780 0.7% 4,764 0.5% Other investments 3,362 0.5% 315 0.1% - 0.0% ----- --- --- --- --- --- Total Investments 644,345 100.0% 641,474 100.0% 1,048,472 100.0% ===== ===== ===== Allowance for loan losses (24,131) (28,589) (21,596) ------- ------- ------- Net Investments $620,214 $612,885 $1,026,876 ======== ======== ========== (1) RMBS consists of agency RMBS with estimated fair values of $314.0 million, $308.0 million and $394.3 million as of September 30, 2009, June 30, 2009 and September 30, 2008, respectively, and non-agency RMBS with estimated fair values of $2.9 million, $3.1 million and $20.2 million as of September 30, 2009, June 30, 2009 and September 30, 2008, respectively. (2) Assets held in DFR MM CLO are the result of the July 17, 2007 securitization of corporate loans held in a non-recourse credit facility. The Company purchased 100 percent of the equity interests for $50.0 million and all of the BBB/Baa2 rated notes for $19.0 million. (3) Assets held in Market Square CLO include syndicated bank loans of $245.0 million, high yield corporate bonds of $2.9 million and ABS of $2.2 million as of September 30, 2008.

Deerfield Capital Corp.

CONTACT: Frank Straub, Chief Financial Officer of Deerfield Capital
Corp., +1-773-380-6636; or Leslie Loyet of Financial Relations Board,
+1-312-640-6672, for Deerfield Capital Corp.

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

Lux Energy Corp Receives Results from Pumping TestLUXE: OTC-BB

CALGARY, Nov. 9 /PRNewswire-FirstCall/ -- In a recent news release, Lux Energy Corp. announced the production results for the C well located in West Central Alberta. In addition, the Company stated that the operator had recommended that pumping equipment be installed to enhance recovery from the reservoir.

The pump equipment was installed and the 24 hour test period records the following;

Currently oil production is at 40 - 44 bbls per day. The well has shown a decline of less that 10% since installation to present. The operator advises that this is a normal result. Natural gas production continued throughout the test period at 175 mcf.

In summary, the pump recovery project including natural gas has had a significant result. The C well recovery has increased from 32 BPOE to 56 BPOE per day, an impressive 75% upside.

Shane Broesky, President, comments that the well performance certainly warrants further acquisitions in this area and Lux will pursue increased holdings.

The President also advises that the operator has informed Lux on the D well status. The D well is expected to be at total depth, completed and tied into production facilities by December 15, 2009. D will be completed in the same area as the C well.

A copy of the filed information can be found for viewing by electronic means by viewing the Company's filings on http://www.sec.gov/.

Lux Energy Corporation

Lux Energy is an oil and gas production and exploration company focusing on developing oil and gas resources in North America.

Forward-Looking Statements

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Lux Energy's filings with the Securities and Exchange Commission which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.

LUX Energy Corporation

CONTACT: http://www.luxenergycorp.com/ or contact Shane Broesky at: Corporate
Office, Suite 510 - 640, 8th Ave S.W., Calgary, Alberta, T2P 1G7, Canada,
(403) 775-1730, info@luxenergycorp.com

Flint Energy Services Ltd. announces third quarter earnings(TSX: FES)

CALGARY, Nov. 9 /PRNewswire-FirstCall/ -- Flint Energy Services Ltd. (Flint, the Company) reported its net earnings for the three months ended September 30, 2009 were $9.7 million or $0.21 per common share, compared to a loss of $163.2 million or $3.41 per common share in the comparative quarter. For the nine months ended September 30, 2009 net earnings were $32.0 million or $0.70 per common share, compared to a loss of $132.9 million or $2.78 per common share. The third quarter of 2008 included an impairment charge of goodwill and intangible assets of $179.9 million, net of taxes of $10.5 million. Adjusted third quarter 2008 earnings were $16.7 million or $0.35 per fully diluted common share.

Consolidated revenue for the three months ended September 30, 2009 was $459.7 million, down $126.1 million (21.5 percent), compared to $585.8 million for the same period of 2008. Decreased revenues from the Production Services segment, particularly in the United States, and the Oilfield Services segment contributed to the overall reduction during the third quarter. Canadian operations generated $386.8 million in revenues, down $66.0 million (14.6 percent) during the quarter, while the United States revenues were $72.9 million, down $60.1 million (45.2 percent) as a result of reduced natural gas field activity. United States operations accounted for 15.9 percent of revenues for the quarter compared to 22.7 percent in the third quarter of last year. Revenue for the nine months ended September 30, 2009 was $1,414.1 million, down $219.0 million (13.4 percent) compared to the nine months ended September 30, 2008.

Facility Infrastructure revenue of $156.4 million was down $10.7 million from $167.1 million in the third quarter last year as a result of reduced oil sands capital spending in 2009, while Maintenance Services revenues of $75.5 million were essentially flat compared to the same period last year.

Company EBITDA for the third quarter was $35.5 million compared with $54.4 million in the third quarter of 2008. EBITDA as a percentage of revenue was 7.7 percent, down from 9.3 percent in the third quarter of 2008. The decrease in EBITDA, as a percentage of revenue, was a result of the decline in drilling and field work and an increase in competitive pressures, particularly in the United States, that eroded gross margins.

General and administrative (G&A) expenses for the three months ended September 30, 2009 decreased $12.9 million to $29.1 million, compared to $42.0 million in 2008 and as a percentage of revenue, G&A expenses improved 0.9 percent to 6.3 percent. G&A expenses declined as a result of the Company implementing many cost control measures across operations, including salary reductions.

Facility Infrastructure EBITDA margins improved to 13.6 percent from 9.7 percent due to changes in project mix and improved application of management systems. Maintenance Services EBITDA margins dropped to 4.0 percent from 5.7 percent last year due to one-time, non-reimbursable contract losses incurred in one of Flint's northern joint venture operations. Production Services EBITDA margins contracted to 4.3 percent from 9.6 percent due to the reduced drilling activity and increased competitive pressures experienced in the third quarter. Oilfield Services EBITDA margins of 7.5 percent were down from 11.1 percent last year as a result of lower activity, price erosion, and reduced equipment utilization.

Income taxes for the quarter were $5.3 million ($4.5 million future) at an effective tax rate of 35.3 percent with cash taxes received of $7.7 million.

The Company's cash holdings were $108.8 million and the operating credit lines were undrawn at the end of September 2009.

Capital expenditures in the third quarter were $6.8 million net of disposals, down from $16.6 million, net of disposals last year.

W. J. (Bill) Lingard, President and CEO of Flint stated, "We were pleased with the operating results of the Company during the third quarter, especially in light of the drastically reduced drilling activity and capital spending in all of our markets. Good cost controls and discipline across the Company have helped us improve our cash position and balance sheet. We continue to focus on capturing new opportunities and maintaining our capacity for the eventual upturn in the North American energy market."

Selected financial information for each reportable business segments is as follows:

------------------------------------------------------------------------- (in thousands Facility Mainte- of Canadian Production Infra- Oilfield nance dollars) Services structure Services Services Total ------------------------------------------------------------------------- Three months ended September 30, 2009 Revenue $ 182,496 $ 156,388 $ 45,338 $ 75,471 $ 459,693 EBITDA 7,860 21,254 3,384 2,985 35,483 EBITDA % 4.3% 13.6% 7.5% 4.0% 7.7% Amortization on property, plant and equipment, and intangible assets 6,052 2,968 4,995 1,696 15,711 Capital expenditures 3,379 2,910 875 2,512 9,676 ------------------------------------------------------------------------- Three months ended September 30, 2008 (restated) Revenue $ 268,969 $ 167,099 $ 73,757 $ 75,929 $ 585,754 EBITDA 25,792 16,144 8,167 4,330 54,433 EBITDA % 9.6% 9.7% 11.1% 5.7% 9.3% Amortization on property, plant and equipment, and intangible assets 7,740 3,354 7,126 355 18,575 Capital expenditures 10,666 3,211 5,412 1,339 20,628 ------------------------------------------------------------------------- -------------------------------------------------------------------------

Complete copies of the Company's Q3 2009 Management Discussion and Analysis (MD&A), Interim Financial Statements and the Notes to Financial Statements are available on SEDAR at http://www.sedar.com/. Additional information related to the Company is available on SEDAR, including a copy of the latest Annual Information Form. Electronic copies of the company's quarterly and annual reports and other public filings may also be obtained by visiting http://www.flintenergy.com/.

A conference call with Flint management is scheduled for 11:00 AM Eastern Time on Tuesday, November 10, 2009. Information on how to participate in the call or listen to the live or archived playback of the call is available on Flint's website http://www.flintenergy.com/.

Flint Energy Services Ltd. is a market leader providing an expanding range of integrated products and services for the oil and gas industry including: production services; field construction; oilfield transportation; process equipment design and manufacturing; and tubular management services. Flint provides this unique breadth of products and services through over 60 strategic locations in the oil and gas producing areas of western North America, from Inuvik in the Northwest Territories to Mission, Texas on the Mexican border. Flint is a preferred provider of infrastructure construction management, module fabrication, maintenance services for upgrading, and production facilities in Alberta's oil sands sector. http://www.flintenergy.com/

FORWARD LOOKING STATEMENTS

Certain statements in this news release are "forward-looking statements", which reflect current expectations of the management of Flint regarding future events or Flint's future performance. All statements other than statements of historical fact contained in this news release may be forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements. Flint believes that the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this news release and Flint assumes no obligation to update or revise them to reflect new events or circumstances, except as expressly required by applicable securities law. Further information regarding risks and uncertainties relating to Flint and its securities can be found in the disclosure documents filed by Flint with the securities regulatory authorities, available at http://www.sedar.com/.

Flint Energy Services Ltd.

CONTACT: Guy Cocquyt, Director of Investor Relations, Telephone: (403)
218-7195, Fax: (403) 215-5481, Email: gcocquyt@flint-energy.com

RDM Corporation Announces Intelligent Check Re-PresentmentIntelligent check re-presentment capability enables businesses to proactively determine if and when a returned check should be re-presentedToronto Stock Exchange Symbol: RC

WATERLOO, ON, Nov. 9 /PRNewswire-FirstCall/ -- RDM Corporation (TSX: RC), a leading developer of specialized software and hardware products for electronic payment processing, announced today that it has introduced new functionality in its ITMS WebClient and Simply Deposit products that allows users to proactively decide whether to re-present a returned check. This feature enables business users to review returned checks and determine whether to risk a second returned check fee and lets them select the timing for that re-presentment.

Approximately 1-2% of all checks presented for payment to a bank are returned, generally due to non-sufficient funds in the account. The check recipient may then be forced to take the uncomfortable and time-consuming step of contacting the check writer to arrange for alternative payment. RDM's intelligent check re-presentment capability offers users the convenience of re-submitting the check electronically at a time of their own choosing. For example, they may choose to wait until "payday" to increase their chances of collecting. They may also elect not to re-present a small check whose face value is less than the potential bank charge that may be incurred.

"The intelligent re-presentment feature is a fantastic new tool for our customers," said Douglas Newman, President and Chief Executive Officer RDM Corporation. "This functionality should appeal to users for the same reasons they chose remote deposit capture in the first place - convenience, speed and lower check processing costs."

The intelligent re-presentment feature is included as a standard module in RDM's suite of RDC products. RDM offers a full suite of remote deposit capture products and services designed to save end users the time and transportation expenses associated with physically depositing checks at the bank and provide them faster availability of funds.

About RDM Corporation

RDM Corporation is headquartered in Waterloo, Ontario and trades on the Toronto Stock Exchange under the symbol RC. RDM is a leading provider of specialized software and hardware products for electronic payment processing. RDM has pioneered electronic check conversion systems and web based image and transaction management services for banks, retailers, payment processors and government agencies as well as print quality control and image quality systems for a variety of global customers. For further information, visit RDM's website at http://www.rdmcorp.com/.

RDM Corporation

CONTACT: Douglas Newman, President and CEO, RDM Corporation, (519)
746-8483 x340 Phone, (519) 746-3317 fax, dnewman@rdmcorp.com; James Merwin,
CFO, RDM Corporation, (519) 746-8483 x284 Phone, (519) 746-3317 fax,
jmerwin@rdmcorp.com

IT Executives Cite Business Continuity, Risk Management and Interoperability Advantages of Microsoft-Novell CollaborationCustomers have chosen SUSE Linux Enterprise Server from Novell over competitive Linux distributions.

REDMOND, Wash., and WALTHAM, Mass., Nov. 9 /PRNewswire-FirstCall/ -- Three years after Microsoft Corp. and Novell Inc. first inked their groundbreaking interoperability collaboration agreement, more than 475 customers have successfully future-proofed their Windows and Linux* IT operations by helping ensure business continuity, minimize risk and optimize mixed-source infrastructure. As a result of this unique industry relationship, Microsoft and Novell announced that more than 20 of these new joint customers have signed up for a subscription service launched a year ago by Novell. The service provides expanded support, and for customers running other Linux distributions, including Red Hat* Enterprise Linux, the support subscriptions qualify them for intellectual property (IP) peace of mind from Microsoft, while they transition to SUSE® Linux Enterprise Server from Novell.

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Microsoft and Novell marked the third anniversary of the collaboration agreement during a gathering of IT executives at the Society of Information Management SIMPosium 09 conference in Seattle today.

"Forward-thinking companies are realizing the benefits of an interoperability collaboration designed to address the mixed-source realities we're facing today and will continue to face tomorrow," said Ted MacLean, general manager for Strategic Partnerships and Licensing at Microsoft. "Over the past three years, we have demonstrated our interoperability dedication time and again through the delivery of cross-platform technical solutions that carry the benefits of IP peace of mind. These solutions, coupled with Novell's proven technical support programs, make it easier than ever for our customers to have confidence that their existing infrastructure investments will serve them well into the future."

Business continuity was cited as a key factor for customers signing up for Novell's new SUSE Linux Enterprise Server with Expanded Support service subscription. Recognized for its outstanding Linux systems support programs, Novell extended its offerings through its collaboration agreement with Microsoft last year to help ensure that those using Red Hat or unsupported distributions of Linux also could benefit. With this offering, customers can elect to receive support for their existing operations for up to three years, and as part of this support, receive the IP peace of mind provided by Microsoft.

Expanded Support Service Ensures Business Continuity

"Novell's enterprise-grade Linux systems support offerings give IT executives immediate flexibility and control over their disparate Linux distributions without sacrifice," said Susan Heystee, vice president and general manager for Strategic Alliances at Novell. "In addition to support for legacy systems, we have also seen a growing number of organizations opt to use our Expanded Support service to help them press forward with plans to consolidate their Linux-based operations from Red Hat and other distributions onto SUSE Linux Enterprise Server."

MoneyGram International Inc., which provides money transfer and bill payment services across a global agent network spanning 190 countries and territories, is one of more than 20 companies that have taken this step. "When we chose to migrate from Red Hat to Novell's SUSE Linux Enterprise Server, we were looking for a highly available solution that would help minimize and ideally eliminate service interruptions, reduce maintenance and licensing costs, utilize our Windows Server investments, and make it possible to support growing business demands," said Paul Boespflug, senior manager of technology services for MoneyGram International. "As a result of standardizing our Linux infrastructure, and leveraging the Expanded Support offering from Novell, our systems are more cohesive, and we have been able to realize immediate cost reductions and improve our system reliability and stability."

IP Assurance Helps to Mitigate Risk

Reducing risk was another necessary requirement, according to customers. The intellectual property provisions provided through the collaboration agreement between Microsoft and Novell offer customers IP assurance and confidence in the viability of the solutions being delivered by the two companies.

Infracom Italia SpA also has elected to leverage interim support from Novell as it transitions from a competitive platform offering to SUSE Linux Enterprise Server. "The relationship forged between Microsoft and Novell offers companies like ours -- who do, and will, run their operations in a mixed environment -- a tremendous benefit and increased efficiencies," said Aldo Serraglio, systems director of Infracom Network Application at Infracom Italia. "Novell's Expanded Support program for Red Hat will help us reduce costs immediately and optimize resources as we transition to SUSE Linux Enterprise Server. In addition to the intellectual property peace of mind it offers us, the improved interoperability enables us to keep more resources focused on our core business."

Interoperability Solutions Optimize IT Infrastructure for Future Demands

Customers also identified optimizing IT infrastructure and enabling greater interoperability as critical needs addressed through this collaboration. Through the Microsoft and Novell Joint Interoperability Lab in Cambridge, Mass., engineers from both companies have been working side by side to create technical solutions that help address customer challenges related to the complexity of managing and administering mixed-source environments.

"For customers considering a dual-platform strategy with Windows Server and a widely used Linux server product, they will come to realize that the interoperability between Microsoft and Novell platforms helps offer a clear advantage in cost reduction," said Wang Lei, project manager, China Telecom Ningxia Branch. "As a long-standing customer of Microsoft using Windows Server, we require optimized virtualization solutions and the ability to expand the capacity of our system administration. SUSE Linux Enterprise Server from Novell is an ideal choice for the Linux systems we operate and manage."

Progressive Approach Defies Economic Downturn

Viewed as a model for the industry, as the two companies collaborate yet still compete in the marketplace, the interoperability agreement between Microsoft and Novell has produced steady growth and traction with customers and partners alike. As of the end of Novell's third fiscal quarter, which ended July 31, 2009, the two companies have sold $226 million in certificates for Novell® SUSE Linux Enterprise Server support and maintenance. To date, we have served more than 475 customers across a broad range of industries and geographies.

"As a multi-vendor systems integrator supporting a broad base of mixed-source IT environments, we at Continental Resources have been witness to the positive impact this collaboration is having on the industry," said Ken Simon, vice president of sales, Enterico Division, Continental Resources Inc. "Those organizations we work with closely are benefiting greatly via the streamlined management functionality, more effective cross-platform support, IP assurance and industry-specific solutions that these two vendors have devised to help us and our customers respond to diverse business challenges and heightened cost concerns."

Additional information about the Microsoft and Novell agreement, customer migrations and their joint Interoperability Lab is available online at http://www.moreinterop.com/.

About Novell

Novell, Inc. delivers the best engineered, most interoperable Linux platform and a portfolio of integrated IT management software that helps customers around the world reduce cost, complexity and risk. With our infrastructure software and ecosystem of partnerships, Novell harmoniously integrates mixed IT environments, allowing people and technology to work as one. For more information, visit http://www.novell.com/.

About Microsoft

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

Novell and SUSE are registered trademarks of Novell Inc. in the U.S. and other countries. Linux is a registered trademark of Linus Torvalds. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Microsoft and Novell Collaboration Select Customers and Partners November 2009 Auburn University (U.S.) BASF IT Services (Germany) BATS Exchange Inc. (U.S.) BBVA Bank (Spain) Brasoftware Informatica Ltda. (Brazil) Cambridge Health Alliance (U.S.) CECI Engineering Consultants Inc. Taiwan (Taiwan) China Telecom Guizhou Branch (China) China Telecom Ningxia Branch (China) Continental Resources Inc. (U.S.) Connexion Technologies (U.S.) Fuji Technology (Asia) Co. Ltd. (Hong Kong) Geico (U.S.) Honda Taiwan Co. Ltd. (Taiwan) Infracom Italia SpA (Italy) Mammut Sports Group Austria GmbH (Austria) MoneyGram International Inc. (U.S.) The New Mexico Computing Applications Center (U.S.) Pirelli Sistemi Informativi Srl (Italy) Rocky Mountain Supercomputing Centers Inc. (U.S.) Synthes Inc. (Switzerland) Tatung Co. (Taiwan) TietoEnator PN Oy (Finland) Trustmarque Solutions (U.K.) UGI Utilities Inc. (U.S.) University of Barcelona (Spain) VTI Technologies (Finland) Watts Regulator Co. (U.S.) WebDeal AS (Norway) Windstream Communications (U.S.)

"We are pleased to see Microsoft and Novell working together so closely to foster greater interoperability between their platforms. Having evaluated their virtualization solutions in our lab, we realize the benefit of such collaboration and would encourage other vendors to follow a similar model of engagement."

-- Bliss Bailey Executive Director Auburn University

"As IT supplier to the world's leading chemical company, whose business is completely reliant on constant innovation in the areas of chemicals, plastics, performance products, functional solutions, agricultural solutions, oil and gas, we appreciate Microsoft and Novell's five-year technology road map for interoperability between Linux and Windows and the supporting intellectual property assurances. For BASF IT Services, our innovations and solutions are what differentiate us from our competitors and enable us to deliver the leading interoperable solutions for virtualization, standards-based systems management, identity management and document format compatibility to our customers. The commercial foundation for innovation is the protection of our intellectual property, and we appreciate the efforts made here by Microsoft and Novell to find a solution that upholds these principles and delivers clear value to us and our customers, suppliers and partners."

-- Norbert Karl Falck Director, Corporate IT and QM BASF IT Services

"Our technology infrastructure is a key strategic driver of our business, as the transaction services, innovative tools and real-time information we deliver to investors and broker-dealers through our world-class exchange platform have propelled us to the forefront of capital markets on both sides of the Atlantic. Because of this, we take time-to-market seriously and place high value on relationships we have forged with IT vendors such as Microsoft and Novell that have come forward with solutions that best meet our interoperability requirements and support our strategic and operational objectives."

-- Chris Isaacson Chief Operating Officer BATS Exchange

"We deliver a broad range of financial services products to millions of individual and corporate customers spanning Europe, the Americas and Asia. In such a dynamic and stratified operational environment, people, teamwork, ethical principles and technology compose the cornerstones of our business. As such, we feel confident that our collaboration with Novell to migrate part of our IT operations to Novell SUSE Linux Enterprise Server supports our goals to make improvements in efficiency and profitability to maintain our leadership and competitive advantage."

-- Fernando Martinez Head of Infrastructure BBVA Bank

"Brasoftware is very proud of our long-standing support of the interoperability agreement between Microsoft and Novell. With the cross-platform solutions and enterprise support offerings that have been borne out of this unprecedented collaboration between major IT vendors, we have been able to help our customers implement the systems, tools and process that not only enable them to get the most from their existing Windows and Linux infrastructure, but also make their organization more nimble for the future."

-- Eduardo Sukarie Sales Director Brasoftware Informatica

"The alliance between Microsoft and Novell allowed us to deploy Windows Server and SUSE Linux Enterprise systems more easily, making our work processes more efficient and convenient. From a customer's perspective, it is a win-win situation for everyone if the end users can benefit from this relationship."

-- Jedi Chang Senior Engineer CECI Engineering Consultants

"We hope to maximize the value of our IT investments. The interoperability solutions available from Microsoft and Novell help us avoid potential intellectual property disputes, while reducing operational costs and risks. We have substantially benefited from this solution. We hope that the two companies will continue to work together and offer even more sophisticated solutions and functionality to users."

-- Xia Xian Bin China Telecom Guizhou Branch

"For customers considering a dual-platform strategy with Windows Server and a widely used Linux server product, they will come to realize that the interoperability between Microsoft and Novell platforms helps offer a clear advantage in cost reduction. As a long-standing customer of Microsoft using Windows Server, we require optimized virtualization solutions and the ability to expand the capacity of our system administration. SUSE Linux Enterprise Server from Novell is an ideal choice for the Linux systems we operate and manage."

-- Wang Lei Project Manager China Telecom Ningxia Branch

"The interoperability agreement between Microsoft and Novell is a leadership statement in the marketplace, as it addresses critical customer needs. As a multi-vendor systems integrator supporting a broad base of mixed-source IT environments, we at Continental Resources have been witness to the positive impact this collaboration is having on the industry. Those organizations we work with closely are benefiting greatly via the streamlined management functionality, more effective cross-platform support, IP assurance and industry-specific solutions that these two vendors have devised to help us and our customers respond to diverse business challenges and heightened cost concerns."

-- Ken Simon Vice President of Sales, Enterico Division Continental Resources

"As a rapidly growing company, our continued success hinges on our ability to invest in areas that allow us to be nimble and to keep our primary focus on creating innovative solutions for our customers. The support and solutions we receive from Microsoft and Novell provide confidence that we can effectively meet these demands. By choosing SUSE Linux Enterprise Server from Novell as part of its alliance with Microsoft, we have already realized impressive gains in performance, the promise of cross-platform interoperability with Windows and significant savings in related support costs over Red Hat."

-- Greg Lamm Director, Information Technology Connexion Technologies

"In a sizable company like ours, we cannot afford any downtime, and that's why we look to the SUSE Linux Enterprise Server from Novell as a key component of our information technology strategy, which improves the overall availability of key infrastructure and critical applications, as well as reduces the overall cost of ownership. Microsoft and Novell have made a sound commitment to interoperability, with which we can ensure that our Windows and Linux environments work seamlessly together to significantly streamline our infrastructure."

-- Keith Chan Chief Technology Officer Fuji Technology (Asia)

"Interoperability is one of the major challenges we encounter. The cooperation between Microsoft and Novell provides us with a solution to address this particular challenge. We want a widely supported Linux system that can help us reduce risks and costs, and eliminate the need for us to build different Linux platforms in our environment. With the two companies working together, we have the benefits of cross-platform interoperability, outstanding support and IP peace of mind."

-- Chih Chien Huang Deputy Manager Honda Taiwan

"The relationship forged between Microsoft and Novell offers companies like ours -- who do, and will, run their operations in a mixed environment -- a tremendous benefit and increased efficiencies. Novell's Expanded Support program for Red Hat will help us reduce costs immediately and optimize resources as we transition to SUSE Linux Enterprise Server. In addition to the intellectual property peace of mind it offers us, the improved interoperability enables us to keep more resources focused on our core business."

-- Aldo Serraglio Systems Director Infracom Network Application

"Mammut Sports Group Austria is benefiting from the collaboration between Microsoft and Novell in several areas. First and foremost, we employ a great deal of Microsoft technology in our infrastructure yet have one important workload that remains on Linux. On the basis of Hyper-V as our virtualization platform, we could bring together the Linux and the Microsoft environment, with the benefit of seamlessly managing both platforms with Microsoft System Center technology.

"Our decision was then to migrate a customer mail marketing application from self-supported Fedora Linux onto Novell's SUSE Linux Enterprise Server to leverage the interoperability benefits from Microsoft and Novell. Working with Microsoft and Novell on this project has really convinced us that their unique collaboration delivers real and valuable solutions to customers with a heterogeneous infrastructure. The bonus is a high degree of consolidation in budget-sensitive areas like server utilization, heterogeneous management, cross-vendor support and unified product licensing."

-- Mario Langmann Chief Technology Officer Mammut Sports Group Austria

"MoneyGram International's global agent network in 190 countries and territories, along with our U.S. MoneyGram Online operations, are dependent on a reliable system to provide our money transfer and bill payment services. When we chose to migrate from Red Hat to Novell's SUSE Linux Enterprise Server, we were looking for a highly available solution that would help minimize and ideally eliminate service interruptions, reduce maintenance and licensing costs, utilize our Windows Server investments, and make it possible to support growing business demands. As a result of standardizing our Linux infrastructure, and leveraging the Expanded Support offering from Novell, our systems are more cohesive, and we have been able to realize immediate cost reductions and improve our system reliability and stability."

-- Paul Boespflug Senior Manager, Technology Services MoneyGram

"The Microsoft-Novell business and technical collaboration provides exemplary interoperability solutions and added assurance concerning intellectual property rights. This is quite valuable for global organizations operating mixed-source IT environments, like ours. Through the continued collaboration of Novell and Microsoft, we better manage and administer our mixed IT systems. We are pleased with the technology developments we have seen to date and look forward to future technical developments."

-- Gabriele Bravin Head of Hardware and Operating System Specialist Pirelli Sistemi Informativi

"To be successful in creating secure, scalable and interoperable solutions for the high-performance computing (HPC) industry, the collaboration among Rocky Mountain Supercomputing Centers Inc. (RMSC), Microsoft, Novell and Adaptive Computing Enterprises Inc. has required steadfast commitments from all parties. RMSC values the collaboration and mature solutions we have had with these companies, as it has enabled us to retain our primary focus on delivering our on-demand supercomputing platforms as a service (SPaaS) business model. Being a first-of-a-kind public-private partnership has allowed RMSC to help customers with all degrees of HPC familiarity achieve greater performance and efficiency at reduced cost via a production compute cloud environment. RMSC -- with its partner community that includes operating systems from Microsoft and Novell and intelligent cluster workload management from Adaptive Computing Enterprises -- is driving commercial advancements, governmental solutions and academic discoveries that will move mountains for Montana's economic growth."

-- Alex Philp CEO and Chairman of the Board Rocky Mountain Supercomputing Centers Inc. (RMSC)

"A key factor in our decision to use SUSE Linux Enterprise Server from Novell is to ensure interoperability between Microsoft's products and other platforms, without raising new concerns around intellectual property. Many companies, including ours, have been able to benefit from the practical solutions that have been made available through the interoperability agreement between Microsoft and Novell to create integrated solutions for our own customers."

-- Stephen Wang Senior Manager Tatung

"Our customers are very interested in the technical benefits being delivered jointly from Microsoft and Novell today. The two former competitors have worked together to ensure that Novell was the first Linux distribution to be validated under the Microsoft Server Virtualization Validation Program 14 months ago; that Novell was the first Linux distribution to produce a commercially available advanced management pack that worked with Microsoft Systems Center Operations Manager, making cross-platform management a reality; and that Novell was the first Linux distribution to pioneer directory federation solutions with Novell Access Manager 3.1 and Microsoft Active Directory Federation Services, enabling partnering organizations to share digital identity information across organization boundaries. Microsoft and Novell also jointly offer an unprecedented set of commercial and legal benefits that enable existing Linux customers to get access to some of the very best technical solutions at the very lowest commercial prices -- which, combined with the intellectual property protection provisions, means that almost all customers can build an extremely strong business case for Novell SUSE Linux Enterprise Server from Novell. Microsoft is recommending Novell SUSE Linux Enterprise Server to its customers operating a mixed-source environment, and so are we at Trustmarque Solutions."

-- Scott Haddow Chief Executive Officer Trustmarque Solutions

"As a natural gas and electric utility company serving more than 600,000 commercial and residential customers throughout central and eastern Pennsylvania, UGI Utilities is literally in business to 'keep the lights on' 24x7. As such, we place a very high value on world-class support, especially during off-hours or critical service outages. To address this need, we chose Novell's Expanded Support offering to help manage our existing Red Hat Linux environment. In addition to superior quality support, the Novell offering has also reduced our Linux support-related costs by over 60 percent."

-- Scott Culbertson Vice President, Information Services UGI Utilities

"As Spain's leading academic research institution, University of Barcelona employs more than 5,000 full-time researchers spanning 109 departments, hosts three large research foundations and supports hundreds of additional joint projects with the business sector. In an effort to maximize the efficiency of our diverse operations and play an active part in the stewardship of technological research, we have chosen to migrate many of our existing Red Hat and unsupported Linux server assets to SUSE Linux Enterprise Server from Novell, as we have found that this offering demonstrates substantive benefits in meeting our requirements for centralized management functions, greater interoperability with Microsoft Windows and cross-platform virtualization support."

-- Joan Llopart Infrastructure Director University of Barcelona

"With our factories running around the clock, we cannot afford operational downtime. The choice to migrate our Linux-based systems from Red Hat to SUSE Linux Enterprise Server from Novell has helped to reduce this risk. Not only have we been able to achieve greater interoperability and cross-platform management with Windows Server 2008, but we have also seen significant improvement in the performance of key workloads and a notable reduction in the overall cost and complexity of our datacenter environment. Moreover, the systems management solutions resulting from the collaboration between Microsoft and Novell present us with some flexibility to realize additional cost savings as well as the potential to extend virtualization even further."

-- Sami Holopainen Manager, IT Operations and Support VTI Technologies

"Thousands of customers around the world rely on us for maintenance, scalability, performance and trend analysis, and other key IT infrastructure management services to ensure their mission-critical operations are up and running around the clock. The technical collaboration between Microsoft and Novell has made it possible for us not only to streamline cross-platform management and interoperability across both Windows Server 2008 and SUSE Linux Enterprise Server from Novell, but also to reduce costs and help ensure 24x7 service availability for our customers."

-- Jan Aril Sigvartsen Chief Executive Officer WebDeal

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PRN Photo Desk photodesk@prnewswire.com Microsoft Corp.

CONTACT: Rapid Response Team of Waggener Edstrom Worldwide for
Microsoft, +1-503-443-7070, rrt@waggeneredstrom.com; or Ian Bruce of Novell,
+1-781-464-8034, ibruce@novell.com

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

First Capital Bancorp, Inc. and Eastern Virginia Bankshares, Inc. Mutually Agree to Terminate Merger Agreement

GLEN ALLEN, Va., Nov. 9 /PRNewswire-FirstCall/ -- First Capital Bancorp, Inc. (the "Company") , the bank holding company for First Capital Bank, announced today the company and Eastern Virginia Bankshares, Inc. mutually agreed to terminate the definitive merger agreement signed April 3, 2009 due to the current regulatory environment. Shareholders from both companies had previously approved the transaction.

In a joint statement, Joe Shearin, President and CEO of EVBS and John Presley, Managing Director and CEO of FCVA stated: "We believed on April 3rd, of this year that the combination of these two good banks to make a great bank was in the best interest our of customers, shareholders, employees and our communities. We still believe that today, however, the current regulatory and economic environment is such that obtaining regulatory approval has taken much longer than we ever anticipated and has reached a point, we believe, that continuing to wait for this approval is not in the best interest of either company."

First Capital Bancorp recently reported financial results for the third quarter of 2009, in which the company reported profits of $405 thousand, improved credit metrics regarding its loan portfolio and a continuation of building reserves for loan losses. The company also reported strong capital ratios, total risk based capital was 14.26% at September 30, 2009 (well capitalized is considered 10%), tier one risk based capital was 12.52% and Tangible Common Equity of 6.93%.

First Capital Bank President and CEO Bob Watts stated, "We are disappointed about the termination of the merger and still believe in the merits of the proposed combination, however, we are extremely pleased by the overall performance of our company. The bank was profitable for the quarter and outside of merger expenses and FDIC assessments, the bank has been profitable for the year as it was profitable in 2008. This is in light of loan loss provisions of over $3.7 million in the same time period. While the bank has only incurred year to date charge-offs of $442 thousand and nonperforming assets total $9.9 million and represent 2.52% percent of our loan portfolio at the end of the quarter, the current economic conditions dictate extreme caution, and as a result, we have adjusted our underlying reserve calculations."

John Presley, Managing Director and CEO of the First Capital Bancorp said, "Our Board of Directors and Employees have a great admiration for EVB and we hope to maintain a close relationship in the future. And while a great deal of effort has gone into the integration of the two companies, we have remained focused on five critical areas of our company, Liquidity, Capital, Funding Costs, adequacy of the Allowance for Loans Losses and Profitability. I am very pleased with our accomplishments to date. We have grown our deposit base, lowered our costs of funds, increased our capital and positioned the balance sheet for future success, all the while increasing our level of loan loss reserve to reflect the environment we live in today."

The Company currently operates seven branches in WestMark, Chesterfield Towne Center, near Willow Lawn on Staples Mill Road, in Ashland, at Three Chopt and Patterson in Henrico County, at the James Center in downtown, Richmond, and our newest branch in Bon Air, Chesterfield County.

Readers are cautioned that this press release contains forward-looking statements made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current knowledge, assumptions, and analyses, which it believes are appropriate in the circumstances regarding future events, and may address issues that involve significant risks including, but not limited to: changes in interest rates; changes in accounting principles, policies, or guidelines; significant changes in general economic, competitive, and business conditions; significant changes in or additions to laws and regulatory requirements; and significant changes in securities markets. Additionally, such aforementioned uncertainties, assumptions, and estimates, may cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements.

First Capital Bancorp, Inc.

CONTACT: John M. Presley, Managing Director and CEO, +1-804-273-1254,
JPresley@1capitalbank.com; Bob Watts, President, +1-804-273-1162,
BWatts@1capitalbank.com

Web Site: http://www.1capitalbank.com/

Pharmasset to Present at Lazard Capital Markets Healthcare Conference

PRINCETON, N.J., Nov. 9 /PRNewswire-FirstCall/ -- Pharmasset, Inc. announces management will present at the Sixth Annual Lazard Capital Markets Healthcare Conference. The conference will be held at the St Regis Hotel in New York City (November 17-19, 2009).

Schaefer Price, Pharmasset's President and Chief Executive Officer, will provide an overview of the company on Wednesday, November 18, 2009 at 3:45 PM (ET).

To access a simultaneous webcast of Mr. Price's overview via the internet, log on to the "Events & Presentations" section of the Investor Center on Pharmasset's website at http://investor.pharmasset.com/events.cfm . Please connect to the website at least ten minutes prior to the start of the presentation to ensure adequate time for a reliable connection and any software download that may be necessary for the webcast.

A replay of the webcast will be available on Pharmasset's website for thirty days following the conference. The investor presentation will be available for download in PDF format immediately following each presentation in the "Events & Presentations" section of the Investor Center on Pharmasset's website at http://investor.pharmasset.com/events.cfm .

About Pharmasset

Pharmasset is a clinical-stage pharmaceutical company committed to discovering, developing, and commercializing novel drugs to treat viral infections. Pharmasset's primary focus is on the development of oral therapeutics for the treatment of hepatitis C virus (HCV) and, secondarily, on the development of Racivir(TM) for the treatment of human immunodeficiency virus (HIV). Our research and development efforts focus on nucleoside/tide analogs, a class of compounds which act as alternative substrates for the viral polymerase thus inhibiting viral replication. We currently have three clinical-stage product candidates. RG7128, a nucleoside analog for chronic HCV infections, is in a Phase 2b clinical trial in combination with Pegasys® plus Copegus® and is also in INFORM studies, the first series of studies designed to assess the potential of combinations of small molecules without Pegasys® and Copegus® to treat chronic HCV. These clinical studies are being conducted through a strategic collaboration with Roche. Our other clinical stage candidates include PSI-7851, an unpartnered, next generation HCV nucleotide analog, has completed initial Phase 1 clinical studies which provided supportive safety and efficacy data to initiate a Phase 2a trial in 1Q 2010 and Racivir, for the treatment of HIV, which has completed a Phase 2 clinical trial. We have also recently announced the nomination of two purine nucleotide analogs, PSI-938 and PSI-879, for preclinical development.

Pegasys® and Copegus® are registered trademarks of Roche. Contact Richard E. T. Smith, Ph.D. VP, Investor Relations and Corporate Communications richard.smith@pharmasset.com Office: +1 (609) 613-4181 Forward-Looking Statements

Pharmasset "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding our business that are not historical facts are "forward-looking statements" that involve risks and uncertainties, including, without limitation, the risk that adverse events could cause the cessation or delay of any of the ongoing or planned clinical trials and/or our development of our product candidates, the risk that the results of previously conducted studies involving our product candidates will not be repeated or observed in ongoing or future studies involving our product candidates, the risk that our collaboration with Roche will not continue or will not be successful and the risk that any one or more of our product candidates will not be successfully developed and commercialized. For a discussion of these risks and uncertainties, any of which could cause our actual results to differ from those contained in the forward-looking statements, see the section of our Annual Report on Form 10-K for the fiscal year ended September 30, 2008 and our Quarterly Report on Form 10-Q for the period ended June 30, 2009 filed with the Securities and Exchange Commission entitled "Risk Factors" and discussions of potential risks and uncertainties in our subsequent filings with the Securities and Exchange Commission.

Pharmasset, Inc.

CONTACT: Richard E. T. Smith, Ph.D., VP, Investor Relations and
Corporate Communications, +1-609-613-4181, richard.smith@pharmasset.com

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

NBTY Reports Fiscal Year End and Record Fourth Quarter Results

RONKONKOMA, N.Y., Nov. 9 /PRNewswire-FirstCall/ -- NBTY, Inc. (http://www.nbty.com/), a leading global manufacturer and marketer of nutritional supplements, today announced results for the fiscal fourth quarter and fiscal year ended September 30, 2009.

For the fiscal fourth quarter ended September 30, 2009, net sales were a record $674 million compared to $602 million for the fiscal fourth quarter ended September 30, 2008, an increase of $73 million or 12%. Leiner Health Products, which was acquired in July 2008, has been fully integrated into NBTY operations, and accordingly, Leiner sales can no longer be separately identified.

Net income for the fiscal fourth quarter ended September 30, 2009 was $63 million, or $1.00 per diluted share, compared to net income of $18 million, or $0.28 per diluted share, for the prior comparable quarter.

Net income for this fiscal fourth quarter reflects greater sales, improved supply chain management and effective controls of selling, general & administrative and advertising costs. During the quarter, the Company recovered a net of $7 million for previously terminated IT programs. The aggregate after-tax impact of this item was $0.07 per diluted share. Without this recovery, earnings per diluted share for this fiscal quarter would have been $0.93.

Adjusted EBITDA for the fiscal fourth quarter of 2009 was a record $120 million, compared to $55 million for the fiscal fourth quarter of 2008. The Company's balance sheet continues to be strong and well capitalized. At September 30, 2009, working capital was $674 million, total assets were $2 billion, and $325 million remains undrawn under the Company's Revolving Credit Facility.

Preliminary and unaudited net sales for October 2009 were $242 million, a 9% increase from the prior like month. A detailed breakdown of these sales is shown in the last table below.

OPERATIONS FOR THE FISCAL FOURTH QUARTER ENDED SEPTEMBER 30, 2009

Net sales for the Wholesale/US Nutrition division, which markets various brands including Nature's Bounty, Osteo Bi-Flex, Rexall, Sundown, Ester-C, Solgar, and private label products, increased $46 million, or 13%, to $404 million.

The Nielsen Company tracks industry-wide sales of vitamins, minerals, herbs and other supplements in the food, drug and mass market sectors. For the thirteen week period ended September 26, 2009, Nielsen reported an increase in the entire category of 11%. According to Nielsen, for that same period, the Company's Wholesale brands reported a 13.6% increase.

The Wholesale/US Nutrition division utilizes valuable consumer preference sales data generated by the Company's Vitamin World retail stores and Puritan's Pride Direct Response/E-Commerce operations to empower its wholesale customers with this latest data. The Vitamin World stores are used as a laboratory for new ideas and are an effective tool in determining and monitoring consumer preferences. This information, as well as scanned sales data from the Vitamin World stores, is shared on a real time basis with our wholesale customers to give them a competitive advantage.

Net sales for the North American Retail division, comprised of Vitamin World Stores in the United States and LeNaturiste stores in Canada, were $50 million, a 2% increase from the prior like quarter. While the division's same store sales were relatively flat for the fiscal fourth quarter of 2009, the modernization of its stores had a favorable impact on its operations. This resulted in pre-tax income of $2 million, net of IT recovery, compared with a $1 million loss for the prior like quarter.

During the fiscal fourth quarter of 2009, the North American Retail division closed one store and added one new store. At the end of the fiscal fourth quarter of 2009, the North American Retail division operated a total of 528 stores, consisting of 442 Vitamin World stores in the United States and 86 LeNaturiste stores in Canada.

European Retail net sales for the fiscal fourth quarter ended September 30, 2009 were $160 million compared to $138 million, for the prior like quarter. European Retail net sales for the fiscal fourth quarter of 2009 include $27 million from Julian Graves. NBTY acquired Julian Graves on September 16, 2008 and in that month Julian Graves generated $5 million in sales. European Retail same store sales decreased 4%, and in local currency (British Pound Sterling), same store sales increased 11%.

The Julian Graves acquisition was formally approved by the UK Competition Commission on August 20, 2009. The Company is in the process of integrating the Julian Graves operation. Benefits should be seen in European Retail operations by the fiscal fourth quarter 2010.

The European Retail division continues to leverage its premier status, high street locations and brand awareness to maintain market share in a difficult retail environment. The European Retail division consists of 537 Holland & Barrett stores, 351 Julian Graves stores and 31 GNC stores in the UK, 24 Nature's Way stores in Ireland, and 80 DeTuinen stores in the Netherlands, for a total of 1,023 stores in Europe and 9 Holland & Barrett franchised stores in South Africa. As part of Holland & Barrett's global expansion, additional franchise locations are expected during 2010.

Net sales from Direct Response/E-Commerce operations for the fiscal fourth quarter of 2009 increased $4 million, or 8% to $60 million from $55 million for the fiscal fourth quarter of 2008. As this division varies its promotional strategy throughout the fiscal year, its results should be viewed on an annual and not quarterly basis. Puritan's Pride is the leader in the Direct Response and E-Commerce sectors and continues to increase the number of products available via its catalog and web sites.

OPERATIONS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009

For the fiscal year ended September 30, 2009, net sales were $2.6 billion, compared to net sales of $2.2 billion for the prior fiscal year, an increase of $402 million, or 18%. Net income for the fiscal year ended September 30, 2009 was $146 million, or $2.30 per diluted share, compared to $153 million, or $2.33 per diluted share, for the prior fiscal year. Adjusted EBITDA for fiscal 2009 was $345 million, compared to $313 million for fiscal 2008, reflecting increased income from operations.

Overall gross profit margins for the fiscal year ended 2009 decreased to 44% from 49% for the fiscal year ended 2008. This decrease was primarily due to significantly higher private label sales which traditionally have a lower gross margin. Additional cost pressures occurred at the time of the Leiner acquisition when Leiner inventory levels were not adequate to maintain customer fulfillment levels. At the same time, certain raw material costs were increasing due to tight supply and inflationary pressures. In order to maintain adequate customer fulfillment levels, the Company purchased products at these higher costs which were not offset by higher prices charged to the customer. These conditions negatively impacted results for the first half of fiscal year 2009. The Company's operations stabilized during the second half as supply chain management improved.

Selling, general and administrative cost increased $38 million from fiscal year 2008 to $738 million for fiscal year 2009. As a percentage of sales, these costs decreased from 32% of sales to 29%. At the same time, advertising costs decreased $30 million to $110 million and as a percentage of net sales decreased from 6% to 4%.

NBTY Chairman and CEO, Scott Rudolph, said: "We are pleased to report record fourth quarter results. These results are indicative of the benefits achieved from the successful integration of the Leiner acquisition as well as our strategic position in the marketplace. We continue to benefit from our operating leverage and expect to maintain our global leadership position in the nutritional supplement industry."

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(R) (http://www.naturesbounty.com/), Vitamin World(R) (http://www.vitaminworld.com/), Puritan's Pride(R) (http://www.puritan.com/), Holland & Barrett(R) (http://www.hollandandbarrett.com/), Rexall(R) (http://www.rexall.com/), Sundown(R) (http://www.sundownnutrition.com/), MET-Rx(R) (http://www.metrx.com/), Worldwide Sport Nutrition(R) (http://www.sportnutrition.com/), American Health(R) (http://www.americanhealthus.com/), GNC (UK)(R) (http://www.gnc.co.uk/), DeTuinen(R) (http://www.detuinen.nl/), LeNaturiste(TM) (http://www.lenaturiste.com/), SISU (R) (http://www.sisu.com/), Solgar(R) (http://www.solgar.com/), Good 'n' Natural(R) (http://www.goodnnatural.com/), Home Health(TM) (http://www.homehealthus.com/), Julian Graves, and Ester-C(R) (http://www.ester-c.com/) brands. NBTY routinely posts information that may be important to investors on its web site.

This release refers to non-GAAP financial measures, such as Adjusted EBITDA. "Adjusted EBITDA" is defined as net income, excluding the aggregate amount of all non-cash losses reducing net income, plus interest, taxes, depreciation and amortization. This non-GAAP financial measure is not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation of the non-GAAP measure to the comparable GAAP measure is included in the attached financial tables. Management believes the presentation of Adjusted EBITDA is relevant and useful because Adjusted EBITDA is a measurement industry analysts utilize when evaluating NBTY's operating performance. Management also believes Adjusted

EBITDA enhances an investor's understanding of NBTY's results of operations because it measures NBTY's operating performance exclusive of interest and non-cash charges for depreciation and amortization. Management also provides this non-GAAP measurement as a way to help investors better understand its core operating performance, enhance comparisons of NBTY's core operating performance from period to period and to allow better comparisons of NBTY's operating performance to that of its competitors.

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These forward-looking statements can be identified by the use of terminology such as "subject to," "believe," "expects," "plan," "project," "estimate," "intend," "may," "will," "should," "can," or "anticipates," or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. Although all of these forward looking statements are believed to be reasonable, they are inherently uncertain. Factors which may materially affect such forward-looking statements include: (i) slow or negative growth in the nutritional supplement industry; (ii) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest or disruption of mail service; (iii) adverse publicity regarding nutritional supplements; (iv) inability to retain customers of companies (or mailing lists) recently acquired; (v) increased competition; (vi) increased costs; (vii) loss or retirement of key members of management; (viii) increases in the cost of borrowings and/or unavailability of additional debt or equity capital; (ix) unavailability of, or inability to consummate, advantageous acquisitions in the future, including those that may be subject to bankruptcy approval or the inability of NBTY to integrate acquisitions into the mainstream of its business; (x) changes in general worldwide economic and political conditions in the markets in which NBTY may compete from time to time; (xi) the inability of NBTY to gain and/or hold market share of its wholesale and/or retail customers anywhere in the world; (xii) unavailability of electricity in certain geographical areas; (xiii) the inability of NBTY to obtain and/or renew insurance and/or the costs of the same; (xiv) exposure to and expense of defending and resolving product liability and intellectual property claims and other litigation; (xv) the ability of NBTY to successfully implement its business strategy; (xvi) the inability of NBTY to manage its retail, wholesale, manufacturing and other operations efficiently; (xvii) consumer acceptance of NBTY's products; (xviii) the inability of NBTY to renew leases for its retail locations; (xix) the inability of NBTY's retail stores to attain or maintain profitability; (xx) the absence of clinical trials for many of NBTY's products; (xxi) sales and earnings volatility and/or trends for the Company and its market segments; (xxii) the efficacy of NBTY's Internet and on-line sales and marketing strategies; (xxiii) fluctuations in foreign currencies, including the British pound, the Euro and the Canadian dollar; (xxiv) import-export controls on sales to foreign countries; (xxv) the inability of NBTY to secure favorable new sites for, and delays in opening, new retail and manufacturing locations; (xxvi) introduction of and compliance with new federal, state, local or foreign legislation or regulation or adverse determinations by regulators anywhere in the world (including the banning of products) and more particularly Good Manufacturing Practices in the United States, the Food Supplements Directive and Traditional Herbal Medicinal Products Directive in Europe and Section 404 requirements of the Sarbanes-Oxley Act of 2002; (xxvii) the mix of NBTY's products and the profit margins thereon; (xxviii) the availability and pricing of raw materials; (xxix) risk factors discussed in NBTY's filings with the U.S. Securities and Exchange Commission; (xxx) adverse effects on NBTY as a result of increased energy prices and potentially reduced traffic flow to NBTY's retail locations; (xxxi) adverse tax determinations; (xxxii) the loss of a significant customer of the Company; (xxxiii) potential investment losses as a result of liquidity conditions; and (xxxiv) other factors beyond the Company's control.

Readers are cautioned not to place undue reliance on forward-looking statements. NBTY cannot guarantee future results, trends, events, levels of activity, performance or achievements. NBTY does not undertake and specifically declines any obligation to update, republish or revise forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events.

Consequently, such forward-looking statements should be regarded solely as NBTY's current plans, estimates and beliefs.

(TABLES FOLLOW) NBTY, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands, except per share amounts) Three months ended September 30, 2009 2008 ---- ---- Net sales $674,137 $601,574 Costs and expenses: Cost of sales 367,051 338,100 Advertising, promotion and catalog 22,209 31,570 Selling, general and administrative 184,608 199,621 IT project termination recovery (7,055) - ------ --- 566,813 569,291 ------- ------- Income from operations 107,324 32,283 ------- ------ Other income (expense): Interest (8,102) (7,399) Miscellaneous, net 1,897 1,978 ----- ----- (6,205) (5,421) ------ ------ Income before provision for income taxes 101,119 26,862 Provision for income taxes 37,853 9,286 Net income $63,266 $17,576 ======= ======= Net income per share: Basic $1.02 $0.29 ===== ===== Diluted $1.00 $0.28 ===== ===== Weighted average common shares outstanding: Basic 61,874 61,245 ====== ====== Diluted 63,528 63,282 ====== ====== NBTY, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands, except per share amounts) Fiscal years ended September 30, 2009 2008 ---- ---- Net sales $2,581,950 $2,179,469 Costs and expenses: Cost of sales 1,458,437 1,102,169 Advertising, promotion and catalog 110,098 140,479 Selling, general and administrative 737,786 700,209 IT project termination costs 11,718 - ------ --- 2,318,039 1,942,857 --------- --------- Income from operations 263,911 236,612 ------- ------- Other income (expense): Interest (34,882) (18,639) Miscellaneous, net (61) 13,067 --- ------ (34,943) (5,572) ------- ------ Income before provision for income taxes 228,968 231,040 Provision for income taxes 83,239 77,889 Net income $145,729 $153,151 ======== ======== Net income per share: Basic $2.36 $2.42 ===== ===== Diluted $2.30 $2.33 ===== ===== Weighted average common shares outstanding: Basic 61,718 63,386 ====== ====== Diluted 63,236 65,739 ====== ====== NET SALES (Unaudited) THREE MONTHS ENDED FISCAL YEARS ENDED SEPTEMBER 30, SEPTEMBER 30, Percentage Percentage (In thousands) 2009 2008 Change 2009 2008 Change ---- ---- ------ ---- ---- ------ Wholesale / US Nutrition $404,159 $358,543 13% $1,557,089 $1,160,486 34% North American Retail 50,300 49,513 2% 201,878 208,014 -3% European Retail 159,817 138,127 16% 601,574 600,463 0% Direct Response / E-Commerce 59,861 55,391 8% 221,409 210,506 5% ------ ------ --- ------- ------- --- Total $674,137 $601,574 12% $2,581,950 $2,179,469 18% -------- -------- --- ---------- ---------- --- GROSS PROFIT PERCENTAGES (Unaudited) THREE MONTHS ENDED FISCAL YEARS ENDED SEPTEMBER 30, SEPTEMBER 30, Increase Increase 2009 2008 - Decrease 2009 2008 - Decrease ---- ---- ---------- ---- ---- ---------- Wholesale / US Nutrition 34% 31% 3% 31% 38% -7% North American Retail 68% 67% 1% 67% 63% 4% European Retail 62% 65% -3% 62% 63% -1% Direct Response / E-Commerce 61% 52% 9% 62% 57% 5% --- --- -- --- --- -- Total 46% 44% 2% 44% 49% -5% --- --- -- --- --- --- ADJUSTED EBITDA** Reconciliation of GAAP Measures to Non-GAAP Measures (Unaudited) (In thousands) THREE MONTHS ENDED SEPTEMBER 30, 2009 Pretax Depreciation Income and Non-cash Adjusted (Loss) amortization Interest charges* EBITDA** --------- ------------- -------- -------- -------- Wholesale / US Nutrition $69,692 $3,803 $- $49 $73,544 North American Retail 5,580 752 - (3,795) 2,537 European Retail 29,189 3,787 - (3,725) 29,251 Direct Response / E-Commerce 19,323 1,245 - 15 20,583 ------ ----- --- --- ------ Segment Results 123,784 9,587 - (7,456) 125,915 Corporate / Manufacturing (22,665) 7,698 8,102 1,151 (5,714) ------- ----- ----- ----- ------- Total $101,119 $17,285 $8,102 $(6,305) $120,201 ======== ======= ====== ======== ======== THREE MONTHS ENDED SEPTEMBER 30, 2008 Pretax Depreciation Income and Non-cash Adjusted (Loss) amortization Interest charges EBITDA** --------- ------------- -------- -------- -------- Wholesale / US Nutrition $29,516 $3,797 $- $49 $33,362 North American Retail (1,083) 757 - 450 124 European Retail 24,359 3,230 - 55 27,644 Direct Response / E-Commerce 2,497 1,266 - 23 3,786 ----- ----- --- -- ----- Segment Results 55,289 9,050 - 577 64,916 Corporate / Manufacturing (28,427) 10,633 7,399 570 (9,825) ------- ------ ----- --- ------- Total $26,862 $19,683 $7,399 $1,147 $55,091 ======= ======= ====== ====== ======= * INCLUDES RECOVERY OF CERTAIN IT PROJECT TERMINATION COSTS. ** SINCE ADJUSTED EBITDA IS NOT A MEASURE OF PERFORMANCE CALCULATED IN ACCORDANCE WITH U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP"), IT SHOULD NOT BE CONSIDERED IN ISOLATION OF, OR AS A SUBSTITUTE FOR OR SUPERIOR TO, OTHER MEASURES OF FINANCIAL PERFORMANCE PREPARED IN ACCORDANCE WITH GAAP, SUCH AS OPERATING INCOME, NET INCOME AND CASH FLOWS FROM OPERATING ACTIVITIES. IN ADDITION, THE COMPANY'S DEFINITION OF ADJUSTED EBITDA IS NOT NECESSARILY COMPARABLE TO SIMILARLY TITLED MEASURES REPORTED BY OTHER COMPANIES. ADJUSTED EBITDA** Reconciliation of GAAP Measures to Non-GAAP Measures (Unaudited) (In thousands) FISCAL YEAR ENDED SEPTEMBER 30, 2009 Pretax Depreciation Income and Non-cash Adjusted (Loss) amortization Interest charges* EBITDA** --------- ------------- -------- -------- -------- Wholesale / US Nutrition $180,660 $14,794 $- $46 $195,500 North American Retail 1,420 3,007 - 1,813 6,240 European Retail 89,747 14,385 - 1,956 106,088 Direct Response / E-Commerce 57,442 5,022 - 5,428 67,892 ------ ----- --- ----- ------ Segment Results 329,269 37,208 - 9,243 375,720 Corporate / Manufacturing (100,301) 31,680 34,882 2,987 (30,752) --------- ------ ------ ----- ------- Total $228,968 $68,888 $34,882 $12,230 $344,968 ======== ======= ======= ======= ======== FISCAL YEAR ENDED SEPTEMBER 30, 2008 Pretax Depreciation Income and Non-cash Adjusted (Loss) amortization Interest charges EBITDA** --------- ------------ -------- -------- -------- Wholesale / US Nutrition $158,195 $11,655 $- $128 $169,978 North American Retail (2,816) 3,161 - 834 1,179 European Retail 121,941 12,311 - 145 134,397 Direct Response / E-Commerce 28,197 5,254 - 66 33,517 ------ ----- --- -- ------ Segment Results 305,517 32,381 - 1,173 339,071 Corporate / Manufacturing (74,477) 28,340 18,639 1,500 (25,998) -------- ------ ------ ----- -------- Total $231,040 $60,721 $18,639 $2,673 $313,073 ======== ======= ======= ====== ======== * INCLUDES RECOVERY OF CERTAIN IT PROJECT TERMINATION COSTS. ** SINCE ADJUSTED EBITDA IS NOT A MEASURE OF PERFORMANCE CALCULATED IN ACCORDANCE WITH U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP"), IT SHOULD NOT BE CONSIDERED IN ISOLATION OF, OR AS A SUBSTITUTE FOR OR SUPERIOR TO, OTHER MEASURES OF FINANCIAL PERFORMANCE PREPARED IN ACCORDANCE WITH GAAP, SUCH AS OPERATING INCOME, NET INCOME AND CASH FLOWS FROM OPERATING ACTIVITIES. IN ADDITION, THE COMPANY'S DEFINITION OF ADJUSTED EBITDA IS NOT NECESSARILY COMPARABLE TO SIMILARLY TITLED MEASURES REPORTED BY OTHER COMPANIES. NBTY, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except per share amounts) September 30, 2009 2008 ---- ---- Current assets: Cash and cash equivalents $106,001 $90,180 Accounts receivable, net 155,863 122,878 Inventories 658,534 585,239 Deferred income taxes 28,154 25,098 Other current assets 49,999 75,971 ------ ------ Total current assets 998,551 899,366 Property, plant and equipment, net 373,817 419,066 Goodwill 339,099 342,379 Intangible assets, net 214,139 230,424 Other assets 34,615 45,123 ------ ------ Total assets $1,960,221 $1,936,358 ========== ========== Current liabilities: Current portion of long-term debt $38,893 $33,309 Accounts payable 128,485 120,620 Accrued expenses and other current liabilities 156,734 172,035 ------- ------- Total current liabilities 324,112 325,964 Long-term debt, net of current portion 437,629 538,402 Deferred income taxes 36,422 49,139 Other liabilities 34,233 24,657 ------ ------ Total liabilities 832,396 938,162 ------- ------- Commitments and contingencies Stockholders' equity: Common stock, $0.008 par; authorized 175,000 shares; issued and outstanding 61,874 and 61,599 shares at September 30, 2009 and 2008, respectively 495 493 Capital in excess of par 145,885 140,990 Retained earnings 984,797 839,068 Accumulated other comprehensive (loss) income (3,352) 17,645 ------ ------ Total stockholders' equity 1,127,825 998,196 --------- ------- Total liabilities and stockholders' equity $1,960,221 $1,936,358 ========== ========== NBTY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) For the fiscal year ended September 30, 2009 2008 ---- ---- Cash flows from operating activities: Net income $145,729 $153,151 Adjustments to reconcile net income to cash provided by operating activities: Impairments and disposals of assets, net 14,029 1,320 Depreciation and amortization 68,888 60,721 Foreign currency transaction loss (gain) 4,552 (1,934) Stock-based compensation 3,396 1,897 Amortization of deferred charges 1,270 874 Allowance for doubtful accounts (2,354) 2,140 Inventory reserves 6,889 8,113 Deferred income taxes 6,995 7,697 Excess income tax benefit from exercise of stock options (55) (1,002) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable (32,368) (11,619) Inventories (88,348) (77,027) Other assets 1,255 (2,817) Accounts payable 17,752 4,386 Accrued expenses and other liabilities (10,693) 31,505 ------- ------ Net cash provided by operating activities 136,937 177,405 ------- ------- Cash flows from investing activities: Purchase of property, plant and equipment (43,375) (49,097) Purchase of available-for-sale investments - (365,021) Proceeds from sale of available-for-sale investments - 483,156 Cash paid for acquisitions, net of cash acquired - (394,532) Cash paid for acquisition of customer lists - (5,072) Acquisition working capital escrow - (15,000) Escrow refund, net of purchase of price adjustments 13,383 - Proceeds from sale of assets 2,000 - ----- --- Net cash used in investing activities (27,992) (345,566) ------- -------- Cash flows from financing activities: Proceeds from term loan - 300,000 Proceeds from borrowings under the Revolving Credit Facility 95,000 385,000 Principal payments under the Revolving Credit Facility (155,000) (325,000) Principal payments under long-term debt agreements and capital leases (33,217) (2,816) Payments for financing fees - (2,478) Excess income tax benefit from exercise of stock options 55 1,002 Proceeds from stock options exercised 1,446 7,325 Purchase of treasury stock (subsequently retired) - (188,432) --- -------- Net cash (used in) provided by financing activities (91,716) 174,601 ------- ------- Effect of exchange rate changes on cash and cash equivalents (1,408) (9,162) ------ ------ Net increase (decrease) increase in cash and cash equivalents 15,821 (2,722) Cash and cash equivalents at beginning of year 90,180 92,902 Cash and cash equivalents at end of year $106,001 $90,180 -------- ------- NBTY's preliminary unaudited net sales results for the month of October 2009 by segment are as follows: NET SALES (Preliminary and Unaudited) FOR THE MONTH OF OCTOBER ($ In Millions) 2009 2008 % Change ---- ---- -------- Wholesale / US Nutrition $148 $133 12% North American Retail $17 $16 9% European Retail $60 $55 9% Direct Response/ E-commerce $17 $19 -13% --- --- ---- Total $242 $222 9% ==== ==== == North American Retail same store sales increased 7% for the one month period. In local currency, (British Pound Sterling), European Retail net sales increased 14%. Contact: Harvey Kamil Carl Hymans NBTY, Inc. G.S. Schwartz & Co. President and Chief Financial Officer 212-725-4500 631-200-2020 carlh@schwartz.com

NBTY, Inc.

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

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

Sequenom Reports Third Quarter 2009 Financial Results

SAN DIEGO, Nov. 9 /PRNewswire-FirstCall/ -- Sequenom, Inc. today reported its financial results for the quarter ended September 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040415/SQNMLOGO) Third Quarter Results -- Total revenue for the third quarter of 2009 was $9.2 million, compared with $11.6 million for the third quarter of 2008. -- Cost of product and service revenue for the third quarter of 2009 was $2.7 million, compared with $4.5 million for the third quarter of 2008. -- Gross margin for the third quarter of 2009 was 71%, compared with 61% for the third quarter of 2008, reflecting higher consumable sales as a percentage of the company's product sales. -- Research and development expenses were $8.5 million for the third quarter of 2009, compared with $7.1 million for the same period in the prior year. Research and development expenses for the third quarter of 2009 reflected additional expenses associated with product development, sample collection activities for clinical trials, and expenses associated with the company's Clinical Laboratory Improvement Amendment (CLIA) certified laboratory. -- Selling, general and administrative expenses of $12.6 million for the third quarter of 2009 increased from $10.7 million for the third quarter of 2008 as a result of increased legal expenses, higher stock-based compensation expense, higher facilities costs, and expenses associated with the contract sales force for the company's CLIA laboratory-developed test (LDT) services. -- Total costs and expenses for the third quarter of 2009 were $24.3 million, compared with $22.3 million for the comparable quarter in 2008. For the three months ended September 30, 2009 and 2008, the company recorded $3.0 million and $2.2 million, respectively, of stock-based compensation expense. -- Net loss for the third quarter of 2009 was $14.9 million, or $0.24 per share, compared with $10.4 million, or $0.18 per share, for the third quarter of 2008. Nine-Month Results -- Revenue for the first nine months of 2009 totaled $27.1 million, compared with $35.0 million for the first nine months of 2008. -- Cost of product and services revenues for the first nine months of 2009 was $9.2 million, compared with $14.7 million reported for the first nine months of 2008. -- Gross margin for the first nine months of 2009 was 66%, compared to 58% for the first nine months of 2008. -- Total costs and expenses for the first nine months of 2009 were $80.2 million, versus $63.5 million for the comparable period in 2008. For the nine months ended September 30, 2009 and 2008, the company recorded $9.2 million and $5.0 million, respectively, of stock-based compensation expense. -- Net loss for the first nine months of 2009 was $52.6 million, or $0.86 per share, compared with $28.7 million, or $0.57 per share for the comparable period in 2008. Cash, Cash Equivalents and Available for Sale Securities

As of September 30, 2009, Sequenom had total cash, cash equivalents and short-term marketable securities of $50.1 million and $7.2 million in accounts receivable.

"The previously announced events surrounding our trisomy 21 program have been a major setback for the company. The independent investigation has been concluded and a new senior management team has been put in place. New internal procedures and protocols have been implemented to reduce the likelihood of a reoccurrence of similar problems. We are continuing our efforts to develop and commercialize a broad portfolio of molecular diagnostic tests," said Harry Hixson, Ph.D., chairman and CEO of Sequenom. "Based upon our strong underlying science and robust intellectual property estate, I believe that Sequenom is uniquely positioned to launch a series of differentiated, potentially first-in-class, molecular diagnostic tests. Additionally, the management team is pleased with the results from our Genetic Analysis business. We have successfully managed to sequentially grow our revenues since the first quarter in spite of the continuing challenging economic conditions. I am optimistic that we will continue to see growth in the adoption of our MassARRAY systems and the utilization of system consumables into 2010."

2009 Third Quarter and Recent Highlights Genetic Analysis

Launch of MassARRAY® Compact 96 System - the company recently launched this new version of the MassARRAY system which addresses the needs of lower throughput laboratories. The new MassARRAY Compact 96 system offers accuracy, sensitivity, and the ability to cost-effectively run fewer samples making this an ideal system for validation of candidate genetic markers in basic research and clinical research laboratories.

Diagnostics Business

Commercial Launch and Future Launch Plans - The company launched the SensiGene(TM) Cystic Fibrosis (CF) Carrier Screening Test, its first LDT, through its CLIA laboratory in September. The company expects to launch the SensiGene Fetal RHD Genotyping and SensiGene Fetalxy (fetal sex determination) tests late in the first quarter or early in the second quarter of 2010. Details on all these tests may be found at http://www.scmmlab.com/.

Sequenom Center for Molecular Medicine (Sequenom CMM) recently received a license to perform clinical laboratory testing in molecular genetics/molecular diagnostics in California. With the addition of this license, Sequenom CMM can now market and sell in 48 of the 50 US States.

The SensiGene CF Carrier Screening Test: -- This innovative test screens for 103 mutations and five variants, including the 23 mutations recommended by the American College of Medical Genetics (ACMG). This test has been shown to identify each of the 103 mutations and five variants through genomic DNA testing. -- The test offers superior detection rates and broader ethnic coverage when compared to the standard ACMG 23 recommended mutations panel. Because of the increased difficulty in assigning a single ethnicity to an individual, expanded CF panels can provide increased sensitivity for CF carrier screening for many individuals. A more comprehensive mutation panel is important as 1 in 17 CF carriers may be missed using the standard ACMG 23 CF carrier screening panel. -- The test employs Sequenom's proprietary MassARRAY system which utilizes direct and label-free analysis of nucleic acids.

Trisomy 21 Test - The company is rigorously evaluating multiple RNA and DNA technologies for use in the development of its trisomy 21 (T21) test.

Clinical Studies - The company is currently sponsoring a number of clinical studies that require prior sample collection.

-- Fetal RHD Genotyping Clinical Studies. -- Fetal Sex Determination Clinical Studies. -- T21 Clinical Studies. -- T21 Research Study. -- T21 Research & Development Study (CHARMM - Chromosomal Aneuploidies Research to find Maternal Plasma Markers). -- T21 Verification and Validation Studies. -- Obstetrix Verification Study. -- Women & Infants Validation Study.

Details on the above studies can be found at http://www.clinicaltrials.gov/ or at http://www.sequenom.com/clinicalstudies.

Intellectual Property -- On October 22, 2009, we entered into a Non-Exclusive License and Settlement Agreement with Ibis Biosciences, Inc. related to the settlement of patent infringement litigation filed by us against Ibis Biosciences in the U.S. District Court for the District of Delaware. Under the agreement, Ibis Biosciences has agreed to pay us $1 million within 30 days, and we have agreed to grant Ibis Biosciences and its affiliates, including Abbott Laboratories, a non-exclusive license under the patents involved in the lawsuit and certain pending applications and foreign counterparts. -- On November 3, 2009, we entered into an amendment of our license agreement with Isis Innovation Limited. Under the amended agreement, we secured continued exclusive, royalty-bearing rights to US Patent 6,258,540 and its foreign equivalents, related to noninvasive analysis of fetal nucleic acid. In consideration of this amendment, we have agreed to revised milestones and to make an immediate one time payment of $1 million, increase royalty payments under the agreement during the final 12 months of the patent term, and increase the specified minimum royalty amounts. Corporate Updates

Senior Management Update - As announced on September 28, 2009, the company's board of directors appointed chairman of the board Harry F. Hixson, Jr., Ph.D. and director Ronald M. Lindsay, Ph.D. to serve as interim chief executive officer and interim senior vice president of research and development, respectively.

Paul V. Maier has been appointed interim chief financial officer, effective November 10, 2009. Mr. Maier brings financial executive experience in roles from small private companies to Fortune 500 organizations, including nearly 15 years at Ligand Pharmaceuticals as senior vice president and chief financial officer. Prior to Ligand Pharmaceuticals, Mr. Maier spent six years in various management and finance positions at ICN Pharmaceuticals.

Note to Investors

As previously announced, Sequenom will hold a conference call to discuss the third quarter and nine-month financial results today, November 9, 2009, beginning at 1:30 p.m. Pacific Time. You can listen to this call by dialing 1-800-299-9086 for domestic callers or 1-617-786-2903 for international callers, and entering passcode 72106407. Those interested in listening to the conference call live via the internet may do so be visiting http://ir.sequenom.com/.

About Sequenom Center for Molecular Medicine

In 2008, Sequenom acquired a CAP accredited and CLIA-certified molecular diagnostic laboratory located in Grand Rapids, Mich. and named it the Sequenom Center for Molecular Medicine. Through this laboratory, the company plans to develop and commercialize a full range of cutting-edge diagnostic tests intended for physicians and that focus primarily on women's health. In addition to the recently launched SensiGene Cystic Fibrosis Carrier Screening test, Sequenom CMM is also developing noninvasive prenatal tests using a technology that derives fetal information from a maternal blood sample; the planned menu includes tests for fetal RHD genotyping, Fetalxy (fetal sex determination), and trisomy 21. Other tests may be added later. For more information please visit http://www.scmmlab.com/.

About Sequenom

Sequenom, Inc. is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery and clinical research, and molecular diagnostics markets. The company was founded in 1994 and is headquartered in San Diego, California. Sequenom maintains a Web site at http://www.sequenom.com/ to which Sequenom regularly posts copies of its press releases as well as additional information about Sequenom. Interested persons can subscribe on the Sequenom Web site to email alerts or RSS feeds that are sent automatically when Sequenom issues press releases, files its reports with the Securities and Exchange Commission or posts certain other information to the Web site.

SEQUENOM®, AttoSense(TM), SensiGene(TM), and MassARRAY® are trademarks of Sequenom, Inc. All other trademarks and service marks are the property of their respective owners.

Forward-Looking Statements

Except for the historical information contained herein, the matters set forth in this press release, including statements regarding the Company's efforts to develop, commercialize and launch molecular diagnostic tests, including the Company's SensiGene Fetal RHD genotyping test, SensiGene Fetalxy test and trisomy 21 test, future growth in adoption of the Company's MassARRAY system and utilization of system consumables, the benefits of the Company's MassARRAY Compact 96 system and SensiGene CF Carrier Screening test, and the Company's ongoing and future clinical studies, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the risks and uncertainties associated with the Company's ability to develop and commercialize new technologies and products, particularly new technologies such as genetic analysis platforms, noninvasive prenatal diagnostics and laboratory developed tests, reliance upon the collaborative efforts of other parties, the Company's ability to manage its existing cash resources or raise additional cash resources, competition, intellectual property protection and intellectual property rights of others, government regulation particularly with respect to diagnostic products and laboratory developed tests, obtaining or maintaining regulatory approvals, the ongoing litigation and other risks detailed from time to time in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and other documents subsequently filed with or furnished to the Securities and Exchange Commission. These forward-looking statements are based on current information that may change and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statement to reflect events or circumstances after the issuance of this press release.

SEQUENOM, Inc. Condensed Consolidated Financial Statements - September 2009 (in thousands, except per share data) Consolidated Summary of Operations - Q3 to September & YTD September ------------------ ----------------- Three months ended Nine months ended September 30, September 30, 2009 2008 2009 2008 ==== ==== ==== ==== (unaudited) (unaudited) (unaudited) (unaudited) Product revenues: Consumables $5,443 $4,958 $15,363 $14,558 System related 3,671 5,710 10,092 16,911 Services 103 902 1,617 3,450 Research and other 3 - 5 71 --- --- --- --- Total revenues 9,220 11,570 27,077 34,990 Costs and expenses: Costs of product and service revenues 2,678 4,528 9,227 14,662 Research and development expenses 8,479 7,083 27,486 18,381 Selling and marketing expenses 5,914 5,860 20,167 17,999 General and administrative expenses 6,724 4,843 21,862 12,464 Restructuring 480 - 1,482 - ------ ------ ------ ------ Total costs and expenses 24,275 22,314 80,224 63,506 Operating loss (15,055) (10,744) (53,147) (28,516) Interest income and other, net 282 476 752 1,020 Loss on marketable securities - (100) (38) (1,171) ------- ------- ------- ------- Loss before incomes taxes (14,773) (10,368) (52,433) (28,667) Deferred tax expense (102) (3) (176) (74) ---- --- ---- --- Net loss $(14,875) $(10,371) $(52,609) $(28,741) ======== ======== ======== ======== Weighted average shares outstanding, basic and diluted 61,211 59,115 61,123 50,562 Net loss per share, basic and diluted: $(0.24) $(0.18) $(0.86) $(0.57) ====== ====== ====== ====== Consolidated Balance Sheet Information September 30, December 31, 2009 2008 ---- ---- Assets: (unaudited) (audited) Cash, cash equivalents and short-term marketable securities $50,083 $98,329 Restricted cash 1,416 1,371 Accounts receivable, net 7,182 10,642 Inventories, net 9,858 10,631 Other current assets 3,291 1,311 ----- ----- Total current assets 71,830 122,284 Property, equipment and leasehold improvements, net 12,467 9,195 Long-term marketable securities 5,710 5,748 Goodwill 10,007 2,398 Other long- term assets 1,928 859 ----- --- Total assets $101,942 $140,484 ======== ======== Liabilities and Stockholders' Equity: Accounts payable $8,102 $8,321 Accrued expenses 6,661 8,170 Deferred revenue 1,950 1,444 Other current liabilities 398 456 Short-term debt 1,378 647 ----- --- Total current liabilities 18,489 19,038 Long-term liabilities 6,218 5,233 Stockholders' equity 77,235 116,213 ------ ------- Total liabilities and stockholders' equity $101,942 $140,484 -------- --------

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CONTACT: Company, Ian Clements, Ph.D., Sr. Director, Corp.
Communications of Sequenom, Inc., +1-858-202-9000; or Investor Relations,
Jody Cain of Lippert/Heilshorn & Associates, +1-310-691-7100, jcain@lhai.com;
or Media Relations, Dan Budwick of Pure Communications, +1-973-271-6085, both
for Sequenom, Inc.

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

Company News On-Call: http://www.prnewswire.com/comp/124192.html

Cardiac Science Announces Third Quarter ResultsCompany Reports $38.9M Q3 Revenue; Takes AED Field Product Update Charge of $18.5M and Non-cash Deferred Tax Assets Charge of $44.0M

BOTHELL, Wash., Nov. 9 /PRNewswire-FirstCall/ -- Cardiac Science Corporation , a global leader in automated external defibrillator (AED) and diagnostic cardiac monitoring devices, today announced revenue of $38.9 million for the third quarter ended September 30, 2009, in line with its previous guidance. The Company also recorded a charge of $18.5 million for an AED field product update and a non-cash charge of $44.0 million to increase its valuation allowance against deferred income tax assets. Including these charges, the Company reported a net loss for the quarter of $66.5 million, or $2.85 per share.

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Sales in all areas of the business continued to stabilize during the period and execution of the Company's turnaround initiatives should help to reinstate revenue growth in the coming year.

Cardiac monitoring revenue was $13.0 million and defibrillation products revenue was $21.6 million for the third quarter of 2009. As anticipated, AED sales in Japan were approximately $10.0 million less than in the prior year quarter, due primarily to market weakness and a competing AED product introduction by the Company's current distribution partner. North American AED sales were down 9% compared to the prior year period. However, following the resumption of AED shipments in August after a temporary ship hold, the Company's manufacturing and quality teams performed well, filling the vast majority of open orders that had accumulated during the ship hold. Cardiac monitoring revenue decreased 15% compared to the prior year period, driven by slowed demand in the hospital and physician office markets.

The Company recorded a charge of $18.5 million for estimated costs relating to an initiative to improve the reliability of approximately 300,000 AEDs in the field. The Company has determined that, in very rare instances, AEDs may fail to deliver therapy due to a suspect component. The Company has improved its manufacturing process to enhance component reliability in forward production and has elected to undertake an initiative to further strengthen the reliability of field units. The initiative is expected to cost $18.5 million, but the Company is still in discussion with the FDA and other stakeholders to determine the final scope and details. Actual costs may be more or less than the amount of the estimated charge, based on a number of factors.

In addition, the Company's third quarter results reflect a charge to earnings of $44.0 million to increase its valuation allowance against deferred income tax assets. In light of recent losses, including the $18.5 million charge relating to the anticipated field initiative, the Company has made an assessment that the realization of the benefit of its deferred tax assets, primarily comprised of income tax loss and tax credit carry-forwards, is not "more likely than not" in accordance with applicable GAAP guidelines and has therefore increased its valuation allowance against those assets. This is a non-cash charge that has no impact on the Company's liquidity and the tax loss and credit carry-forwards remain available to offset future cash income taxes when the Company regains profitability.

"Gaining clarity on the financial impact of the component issue will allow all of our stakeholders to eliminate uncertainty and begin to focus on the progress we've made in our turnaround. Operationally, we continue to move at a brisk pace in improving our systems and capabilities with an eye toward building a stronger foundation for future growth," said Dave Marver, president and chief executive officer. "We have several new technologies slated for introduction in the next 12 months. The introduction of our new vital signs monitors in cooperation with Omron is one of many enhancements we'll be making to our product line that leverage our brands, distribution, and large installed customer base."

Third Quarter Financial Results

Third quarter revenue of $38.9 million represented a decrease of 28% compared to the $54.0 million in revenue reported in the third quarter of 2008. Third quarter gross margin was 0.2%, inclusive of the $18.5 million charge relating to the AED field initiative. Excluding this charge, pro forma gross margin would have been 47.8%, a slight decrease from reported third quarter 2008 gross margin, which was 48.4%. The decrease in gross margin on a pro forma basis was due primarily to lower service margins relating to lower revenue being spread over a somewhat fixed cost structure.

Operating expenses in the third quarter of 2009 were $22.8 million, a modest increase from the $22.1 million for the third quarter of 2008. Inclusive of the $18.5 million charge relating to the AED field product update and the $44.0 million charge related to deferred tax assets, the Company reported a net loss of $66.5 million, or $2.85 loss per share in the third quarter of 2009.

EBITDA was negative $21.1 million for the third quarter of 2009. Adjusted EBITDA, which excludes stock-based compensation expense and the costs relating to the AED field initiative, was negative $1.9 million for the third quarter of 2009.

The Company had $31.6 million in cash and cash equivalents as of September 30, 2009, down from $37.9 million at the end of the second quarter. The most significant reason for the decrease was a delay in cash collections during the quarter relating to the delay in shipping AEDs until the second half of the period as a result of the earlier ship hold. As those collections normalize, the cash position is expected to be positively impacted during the fourth quarter.

Outlook

The Company expects revenue for the fourth quarter of 2009 to be in a range between $39.0 million and $41.0 million. During the fourth quarter, the Company will continue to incur higher regulatory and quality assurance expenses as it upgrades its internal capabilities in this area and draws upon outside consultants to assist with the establishment of improved systems. In addition, the Company expects to incur higher research and development and marketing expenses associated with product development initiatives - both internal and with strategic partners.

The Company expects to report a net loss for the quarter in a range between $4.0 and $5.0 million, or between $0.17 and $0.21 per share. The expected loss includes non-cash expenses of approximately $2.2 million related primarily to depreciation, amortization, and stock-based compensation. The Company will not record any tax benefit for operating losses, so these estimates are not tax effected.

Non-GAAP and Pro Forma Financial Information

This news release contains a discussion of EBITDA, Adjusted EBITDA, and Pro Forma Gross Margin, which are non-GAAP financial measures provided as a complement to results provided in accordance with U.S. generally accepted accounting principles ("GAAP"). The term "EBITDA" refers to a financial measure defined as earnings before net interest, income taxes, depreciation, and amortization. "Adjusted EBITDA" refers to EBITDA before stock-based compensation and costs associated with the AED field product update. "Pro Forma Gross Margin" refers to Gross Profit before costs associated with the AED field product update as a percentage of Total Revenues. These measures are a substitute for measures determined in accordance with GAAP, and may not be comparable to the same measures as reported by other companies. EBITDA and Adjusted EBITDA are an integral part of the internal management reporting and planning process and are the primary measures used by management to evaluate the operating performance of the Company. The components of these measures include the key revenue and expense items for which operating managers are responsible and upon which their performance is evaluated. The Company also uses Adjusted EBITDA for planning purposes and in presentations to its board of directors. Pro Forma Gross Margin is being presented because of the impact of the extraordinary charge related to the AED field product update on the Company's Gross Margin for the third quarter of 2009. Presentation of our Gross Margin excluding this charge allows for a comparison of the Company's performance on a basis that management believes is more consistent from period to period. Reconciliations of EBITDA and Adjusted EBITDA to net income, and Pro Forma Gross Margin to Gross Margin, the most comparable GAAP measures, are contained in this press release.

Conference Call Information

Cardiac Science will conduct a conference call at 4:30 p.m. Eastern Standard Time today to discuss the Company's financial results for the third quarter. The call will be hosted by Dave Marver, president and chief executive officer, and Mike Matysik, senior vice president and chief financial officer.

To access the conference call, please dial 877.941.2332 and reference conference ID 4179087. Callers outside the U.S. can dial 480.629.9724. The call will also be webcast live at http://www.cardiacscience.com/. An audio replay of the call will be available for 7 days following the call at 800.406.7325 for U.S. callers or 303.590.3030 for those calling from outside the U.S. The password required to access the replay is 4179087#. An archived webcast will also be available at http://www.cardiacscience.com/ for 90 days.

About Cardiac Science

Cardiac Science develops, manufactures, and markets a family of advanced diagnostic and therapeutic cardiology devices and systems, including automated external defibrillators (AED), electrocardiograph devices (ECG/EKG), cardiac stress test treadmills and systems, Holter monitoring systems, hospital defibrillators, cardiac rehabilitation telemetry systems, and cardiology data management systems (informatics) that connect with hospital information (HIS), electronic medical record (EMR), and other information systems. The Company sells a variety of related products and consumables and provides a portfolio of training, maintenance, and support services. Cardiac Science, the successor to the cardiac businesses that established the trusted Burdick®, HeartCentrix®, Powerheart®, and Quinton® brands, is headquartered in Bothell, Washington. The Company distributes its products in nearly 100 countries worldwide, with operations in North America, Europe, and Asia. For information, call 425.402.2000 or visit http://www.cardiacscience.com/.

Forward-Looking Statements

This press release contains forward-looking statements. The word "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, those relating to Cardiac Science Corporation's future financial results and condition, actual costs of the AED field product update, potential negative impact on future sales of AED products resulting from the announced AED field product update, constraints on our ability to pursue strategic initiatives as a result of the costs associated with implementing the AED field product update, including future product releases, and income taxes on future pre-tax results. These are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results and performance may vary significantly from those expressed or implied in such statements. Factors that could cause or contribute to such varying results and other risks include those with respect to the quality of our processes, products and services and the implementation of voluntary actions or those taken at the request of regulatory authorities relating to our business, as well as those more fully described in the Annual Report on Form 10-K filed by Cardiac Science Corporation for the year ended December 31, 2008, as updated by subsequent quarterly reports on Form 10-Q. Cardiac Science Corporation undertakes no duty or obligation to update the information provided herein.

For more information, Company Contact: Investor Contact: Media Contact: ---------------- ----------------- -------------- Mike Matysik Matt Clawson Christopher Gale Cardiac Science Corporation Allen & Caron EVC Group Inc. Senior Vice President and CFO 949.474.4300 646.201.5431 425.402.2009 matt@allencaron.com 203.570.4681 cgale@evcgroup.com CSCX-F - Tables to Follow - Cardiac Science Corporation and Subsidiaries Condensed Consolidated Statements of Operations (unaudited) (in thousands, except share and per share amounts) Three Months Ended September 30, ----------------------- 2009 2008 ---- ---- $ % $ % --- --- --- --- Revenues: Cardiac monitoring products $13,000 33.4% $15,316 28.4% Defibrillation products 21,646 55.7% 34,071 63.1% ------ ---- ------ ---- Total product revenues 34,646 89.1% 49,387 91.4% Service 4,238 10.9% 4,619 8.6% ----- ---- ----- --- Total revenues 38,884 100.0% 54,006 100.0% ------ ----- ------ ----- Cost of Revenues: Products 17,194 49.6% 24,799 50.2% AED field initiative 18,500 47.6% - 0.0% Service 3,095 73.0% 3,088 66.9% ----- ---- ----- ---- Total cost of revenues 38,789 99.8% 27,887 51.6% ------ ---- ------ ---- Gross Profit: Products (1,048) -3.0% 24,588 49.8% Service 1,143 27.0% 1,531 33.1% ----- ---- ----- ---- Gross profit 95 0.2% 26,119 48.4% --- --- ------ ---- Operating Expenses: Research and development 4,270 11.0% 4,103 7.6% Sales and marketing 11,923 30.7% 12,934 23.9% General and administrative 6,571 16.9% 5,096 9.4% ----- ---- ----- --- Total operating expenses 22,764 58.5% 22,133 41.0% ------ ---- ------ ---- Operating income (loss) (22,669) -58.3% 3,986 7.4% ------- ----- ----- --- Other Income: Interest income 23 0.1% 156 0.3% Other income, net 158 0.4% 20 0.0% --- --- -- --- Total other income 181 0.5% 176 0.3% --- --- --- --- Income (loss) before income tax expense: (22,488) -57.8% 4,162 7.7% Income tax expense (43,923) -113.0% (1,598) -3.0% ------- ------ ------ ---- Net income (loss) (66,411) -170.8% 2,564 4.7% Less: Net income attributable to noncontrolling interests (135) -0.3% (86) -0.2% ---- ---- --- ---- Net income (loss) attributable to Cardiac Science Corporation $(66,546) -171.1% $2,478 4.6% ======== ====== ====== === Net income (loss) per share attributable to Cardiac Science Corporation: Basic $(2.85) $0.11 Diluted $(2.85) $0.11 Weighted average shares outstanding: Basic 23,368,778 22,892,161 Diluted 23,368,778 23,413,042 Cardiac Science Corporation and Subsidiaries Condensed Consolidated Statements of Operations (unaudited) (in thousands, except share and per share amounts) Nine Months Ended September 30, ----------------------- 2009 2008 ---- ---- $ % $ % --- --- --- --- Revenues: Cardiac monitoring products $40,151 35.0% $48,613 31.3% Defibrillation products 61,413 53.6% 92,371 59.6% ------ ---- ------ ---- Total product revenues 101,564 88.6% 140,984 90.9% Service 13,098 11.4% 14,113 9.1% ------ ---- ------ --- Total revenues 114,662 100.0% 155,097 100.0% ------- ----- ------- ----- Cost of Revenues: Products 49,261 48.5% 69,260 49.1% AED field initiative 18,500 16.1% - 0.0% Service 9,376 71.6% 9,557 67.7% ----- ---- ----- ---- Total cost of revenues 77,137 67.3% 78,817 50.8% ------ ---- ------ ---- Gross Profit: Products 33,803 33.3% 71,724 50.9% Service 3,722 28.4% 4,556 32.3% ----- ---- ----- ---- Gross profit 37,525 32.7% 76,280 49.2% ------ ---- ------ ---- Operating Expenses: Research and development 11,358 9.9% 11,762 7.6% Sales and marketing 34,392 30.0% 38,170 24.6% General and administrative 18,536 16.2% 15,568 10.0% ------ ----- ------ ----- Total operating expenses 64,286 56.1% 65,500 42.2% ------ ---- ------ ---- Operating income (loss) (26,761) -23.3% 10,780 7.0% ------- ----- ------ --- Other Income: Interest income 55 0.0% 434 0.3% Other income, net 555 0.5% 106 0.1% --- --- --- --- Total other income 610 0.5% 540 0.3% --- --- --- --- Income (loss) before income tax expense: (26,151) -22.8% 11,320 7.3% Income tax expense (42,563) -37.1% (4,245) -2.7% ------- ----- ------ ---- Net income (loss) (68,714) -59.9% 7,075 4.6% Less: Net income attributable to noncontrolling interests (476) -0.4% (257) -0.2% ---- ---- ---- ---- Net income (loss) attributable to Cardiac Science Corporation $(69,190) -60.3% $6,818 4.4% ======== ===== ====== === Net income (loss) per share attributable to Cardiac Science Corporation: Basic $(2.98) $0.30 Diluted $(2.98) $0.29 Weighted average shares outstanding: Basic 23,209,181 22,840,524 Diluted 23,209,181 23,402,011 Cardiac Science Corporation and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) (in thousands) September December 30, 31, 2009 2008 --------- -------- ASSETS Current Assets: Cash and cash equivalents $31,628 $34,655 Accounts receivable, net 28,387 31,665 Inventories 26,011 24,692 Deferred income taxes - 8,366 Prepaid expenses and other current assets 2,763 3,144 ----- ----- Total current assets 88,789 102,522 Other assets 358 428 Machinery and equipment, net of accumulated depreciation 7,951 6,994 Deferred income taxes - 28,452 Intangible assets, net of accumulated amortization 28,672 31,278 Investments in unconsolidated entities 664 534 --- --- Total assets $126,434 $170,208 ======== ======== LIABILITIES AND EQUITY Current Liabilities: Accounts payable 11,885 12,711 Accrued liabilities 12,568 13,535 Warranty liability 3,861 3,796 AED field initiative liability 18,500 - Deferred revenue 7,787 7,918 ----- ----- Total current liabilities $54,601 $37,960 Deferred income taxes 5,376 - Total liabilities $59,977 $37,960 ------- ------- Equity: Cardiac Science Corporation shareholders' equity 65,422 131,703 Noncontrolling interests 1,035 545 ----- --- Total equity 66,457 132,248 ------ ------- Total liabilities and equity $126,434 $170,208 ======== ======== Cardiac Science Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) Three Months Ended September 30, ------------- 2009 2008 ---- ---- Operating Activities: Net income (loss) $(66,411) $2,564 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Stock-based compensation 674 469 Depreciation and amortization 1,595 1,544 Deferred income taxes 43,996 1,493 Changes in operating assets and liabilities, net of businesses acquired: Accounts receivable, net (5,552) (526) Inventories 9 (929) Prepaid expenses and other assets 509 (151) Accounts payable 1,672 (591) Accrued liabilities (672) 1,113 Warranty liability 56 825 AED field initiative liability 18,500 - Deferred revenue 539 555 --- --- Net cash provided by (used in) operating activities (5,085) 6,366 ------ ----- Investing Activities: Purchases of short-term investments - (845) Purchases of machinery and equipment (1,034) (983) Proceeds from repayment of note 27 38 Purchases of intangibles (370) - Cash paid for acquisitions - (156) --- ---- Net cash used in investing activities (1,377) (1,946) ------ ------ Financing Activities: Proceeds from exercise of stock options and issuance of shares under employee stock purchase plan 161 541 Minimum tax withholding on restricted stock awards (13) (87) --- --- Net cash provided by financing activities 148 454 --- --- Effect of exchange rate changes on cash and cash equivalents 74 - Net change in cash and cash equivalents (6,240) 4,874 Cash and cash equivalents, beginning of period 37,868 27,721 ------ ------ Cash and cash equivalents, end of period $31,628 $32,595 ======= ======= Cardiac Science Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) Nine Months Ended September 30, ------------- 2009 2008 ---- ---- Operating Activities: Net income (loss) $(68,714) $7,075 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Stock-based compensation 1,887 1,515 Depreciation and amortization 4,662 4,777 Deferred income taxes 42,231 3,955 Changes in operating assets and liabilities, net of businesses acquired: Accounts receivable, net 3,165 (1,169) Inventories (1,321) (1,678) Prepaid expenses and other assets 545 (445) Accounts payable (785) (827) Accrued liabilities (963) 729 Warranty liability 65 1,163 AED field initiative liability 18,500 - Deferred revenue (131) 65 ---- -- Net cash provided by (used in) operating activities (859) 15,160 ---- ------ Investing Activities: Purchases of short-term investments - (845) Maturities of short-term investments - 350 Purchases of machinery and equipment (2,688) (2,425) Proceeds from repayment of note 110 38 Purchases of intangibles (370) - Cash paid for acquisitions (54) (580) --- ---- Net cash used in investing activities (3,002) (3,462) ------ ------ Financing Activities: Proceeds from exercise of stock options and issuance of shares under employee stock purchase plan 897 887 Minimum tax withholding on restricted stock awards (110) (149) ---- ---- Net cash provided by financing activities 787 738 --- --- Effect of exchange rate changes on cash and cash equivalents 47 - Net change in cash and cash equivalents (3,027) 12,436 Cash and cash equivalents, beginning of period 34,655 20,159 ------ ------ Cash and cash equivalents, end of period $31,628 $32,595 ======= ======= Cardiac Science Corporation and Subsidiaries Reconciliation of GAAP Results to Non-GAAP Results (unaudited) (in thousands) Reconciliation of Net Income (Loss) Attributable to Cardiac Science Corporation to Adjusted EBITDA Three Months Three Months Ended Ended September 30, September 30, 2009 2008 ----------------------------------- % of % of revenue revenue ----------------------------------- Net income (loss) attributable to Cardiac Science Corporation $(66,546) -171.1% $2,478 4.6% Depreciation and amortization 1,595 4.1% 1,544 2.9% Interest income (23) -0.1% (156) -0.3% Income tax expense 43,923 113.0% 1,598 3.0% ------ ----- ----- --- EBITDA (21,051) -54.1% 5,464 10.1% Stock-based compensation 674 1.7% 469 0.9% AED field initiative 18,500 n/m - n/m Adjusted EBITDA $(1,877) -4.8% $5,933 11.0% ======= ==== ====== ==== Reconciliation of Net Income (Loss) Attributable to Cardiac Science Corporation to Adjusted EBITDA Nine Months Nine Months Ended Ended September 30, September 30, 2009 2008 ------------------------------------- % of % of revenue revenue ------------------------------------- Net income (loss) attributable to Cardiac Science Corporation $(69,190) -60.3% $6,818 4.4% Depreciation and amortization 4,662 4.1% 4,777 3.1% Interest income (55) 0.0% (434) -0.3% Income tax expense 42,563 37.1% 4,245 2.7% ------ ---- ----- --- EBITDA (22,020) -19.2% 15,406 9.9% Stock-based compensation 1,887 1.6% 1,515 1.0% AED field initiative 18,500 n/m - n/m Adjusted EBITDA $(1,633) -1.4% $16,921 10.9% ======= ==== ======= ==== Reconciliation of Gross Margin to Pro Forma Gross Margin Three Months Ended Three Months Ended September 30, 2009 September 30, 2008 ------------------ ------------------ % of revenue % of revenue --- ------------ ------- ------------ Gross profit $95 0.2% $26,119 48.4% AED field initiative 18,500 47.6% - 0.0% ------ ---- --- --- Pro forma gross profit $18,595 47.8% $26,119 48.4% ======= ==== ======= ====

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PRN Photo Desk photodesk@prnewswire.com Cardiac Science Corporation

CONTACT: Mike Matysik, Senior Vice President and CFO of Cardiac Science
Corporation, +1-425-402-2009; or Investors, Matt Clawson of Allen & Caron,
+1-949-474-4300, matt@allencaron.com; or Christopher Gale of EVC Group Inc.,
+1-203-570-4681, cgale@evcgroup.com, both for Cardiac Science Corporation

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

GeoEye Reports Record 2009 Third Quarter Results

DULLES, Va., Nov. 9 /PRNewswire-FirstCall/ -- GeoEye, Inc. , a premier provider of satellite and aerial-based geospatial information and services, announced today results for its fiscal third quarter ended September 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080625/LAW528LOGO) THIRD QUARTER RESULTS

Total revenues were $79.9 million for the third quarter of 2009, a 123% increase from $35.8 million for the third quarter of 2008. Net income for the third quarter of 2009 was $12.5 million, or $0.61 per fully diluted share, compared to net income of $31.6 million, or $1.57 per fully diluted share, for the third quarter of 2008. The 2008 third quarter earnings included a $27.8 million non-recurring net tax benefit which amounted to $1.38 per share of net income.

Revenues related to contracts with the U.S. Government, the Company's largest customer, were $53.6 million for the third quarter of 2009, representing 67% of total revenues for the period. Domestic revenues were $57.9 million for the third quarter of 2009, which were 72.5% of total revenues for the period. International revenues were $22.0 million for the third quarter of 2009, which were 27.5% of total revenues for the period. Domestic revenues increased 186% for the third quarter of 2009 compared to the same period in 2008, and international revenues increased 41.3% for the third quarter of 2009 compared to the same period in 2008.

Operating profit for the third quarter of 2009 increased $19.3 million from the third quarter of 2008 to $27.7 million. Operating margin was 34.7% for the third quarter of 2009 compared to 23.5% in the same period in 2008. Adjusted EBITDA, a non-GAAP measurement defined as net income before interest, taxes, depreciation, amortization, and non-cash recognition of stock compensation expense, increased approximately $32.3 million to approximately $44.5 million for the third quarter of 2009 from $12.2 million the same period in 2008. Adjusted EBITDA margin was 55.7% for the third quarter of 2009 compared to 34.0% for the same period in 2008.

The Company ended the third quarter of 2009 with unrestricted cash and cash equivalents of $123.6 million, total assets of $812.1 million, and stockholders' equity of $257.6 million and long-term debt of $248.0 million.

NINE MONTH RESULTS

Total revenues for the nine months ended September 30, 2009 were $197.9 million, an 86.7% increase from $106.0 million in the nine months ended September 30, 2008. The Company's Adjusted EBITDA for the nine month period ended September 30, 2009 was $95.5 million, an increase of 213.8% from the same period in 2008. Net income for the nine months ended September 30, 2009 was $20.3 million, or $0.99 per fully diluted share, as compared to net income of $30.3 million, or $1.49 per fully diluted share, in the same period of 2008. The 2008 number includes $23.7 million of non-recurring net tax benefits which amounts to $1.17 per share of net income.

FISCAL YEAR 2009 FINANCIAL OUTLOOK

Matt O'Connell, Chief Executive Officer and President, commented, "We're very pleased with our third quarter results. We experienced very strong year-over-year revenue growth, cash flow growth, solid operating performance in our business and superior EPS results.

"We continued to ramp our revenues from the National Geospatial-Intelligence Agency (the NGA) contract in the third quarter, which was attributable to GeoEye-1's best-in-class operating capabilities. We successfully negotiated terms of an extension to our existing Service Level Agreement with the NGA that will take us through March 31, 2010, with an option by the NGA to extend the agreement through December 2010. We successfully completed a $400.0 million notes offering that closed in October. This notes offering process was a very positive event in that it laid the foundation for the Company's growth over the next three to five years.

"With the healthy mix of U.S. Government agency and commercial contracts, and the growth of our international business, we believe we have strong visibility into the fourth quarter of 2009. GeoEye currently expects fiscal 2009 revenue to be between $275.0 million to $280.0 million, with adjusted EBITDA (excluding a non-recurring charge related to the extinguishment of debt) in the range of $133.0 million to $137.0 million, and proforma EPS in a range of $1.30 per share to $1.45 per share (excluding a non-recurring charge related to the extinguishment of debt). These estimates represent management's current expectations about the Company's future financial performance, based on information available at this time."

CONFERENCE CALL INFORMATION

GeoEye Inc. , will host a conference call for investors and analysts to discuss financial results for the third quarter ended September 30, 2009.

When: November 10, 2009 at 8:30 a.m. Eastern Time

To Participate: At least 10 minutes prior to the conference call, callers wishing to participate on the call may dial (719) 325-2336. Domestic callers who wish to listen may dial toll-free at (888)-417-2254. Participants are encouraged to listen via web cast, which will be broadcast live at http://www.geoeye.com/, under Investor Relations.

Replay: A replay of the teleconference will be available starting at 10:30 a.m. ET, November 10, 2009 and will run until midnight ET on Wednesday, November 18. To access the replay, please dial (888)-203-1112, access code 5411232.

Selected financial results for the Company are as follows (dollars in thousands, except earnings per share):

Three Months Ended 9/30/09 9/30/08 Change ------- ------- ------ (unaudited) Revenues $79,941 $35,840 $44,101 Operating expenses: Direct costs of revenue (exclusive of depreciation and amortization) 23,836 16,546 7,290 Depreciation and amortization 16,347 2,221 14,126 Selling, general and administrative 12,042 8,655 3,387 ------ ----- ----- Total operating expenses 52,225 27,422 24,803 ------ ------ ------ Income from operations 27,716 8,418 19,298 Interest expense, net 8,659 2,783 5,876 ----- ----- ----- Income before provision for income taxes 19,057 5,635 13,422 Provision (benefit) for income taxes 6,530 (25,994) 32,524 ----- ------- ------ Net income $12,527 $31,629 $(19,102) ======= ======= ======== Earnings per share basic $0.67 $1.76 $(1.09) ===== ===== ====== Earnings per share diluted $0.61 $1.57 $(0.96) ===== ===== ====== Nine Months Ended 9/30/09 9/30/08 Change ------- ------- ------ (unaudited) Revenues $197,853 $105,971 $91,882 Operating expenses: Direct costs of revenue (exclusive of depreciation and amortization) 70,235 51,765 18,470 Depreciation and amortization 40,743 8,690 32,053 Selling, general and administrative 33,594 25,225 8,369 Satellite impairment - 1,141 (1,141) --- ----- ------ Total operating expenses 144,572 86,821 57,751 ------- ------ ------ Income from operations 53,281 19,150 34,131 Interest expense, net 22,839 8,541 14,298 ------ ----- ------ Income before provision for income taxes 30,442 10,609 19,833 Provision (benefit) for income taxes 10,100 (19,645) 29,745 ------ ------- ------ Net income $20,342 $30,254 $(9,912) ======= ======= ======= Earnings per share basic $1.10 $1.69 $(0.59) ===== ===== ====== Earnings per share diluted $0.99 $1.49 $(0.50) ===== ===== ====== For the Three For the Nine Months Ended Months Ended 9/30/09 9/30/08 9/30/09 9/30/08 ------- ------- ------- ------- Net income $12,527 $31,629 $20,342 $30,254 Adjustments: Interest expense, net 8,659 2,783 22,839 8,541 Provision (benefit) for income taxes 6,530 (25,994) 10,100 (19,645) Depreciation and amortization 16,347 2,221 40,743 8,690 Non-cash stock-based compensation expense 466 1,558 1,495 2,601 --- ----- ----- ----- Adjusted EBITDA $44,529 $12,197 $95,519 $30,441 ======= ======= ======= ======= We believe that Adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations. September 30, December 31, 2009 2008 Change ---- ---- ------ (unaudited) ASSETS Current assets: Cash and cash equivalents $123,588 $106,733 $16,855 Short-term investments - 3,813 (3,813) Accounts receivable - trade and unbilled receivables (net of allowances: 2009 -$1,015; 2008 - $738) 43,234 26,851 16,383 Income tax receivable - 20,142 (20,142) Restricted cash 4,308 - 4,308 Other current assets 15,374 34,325 (18,951) ------ ------ ------- Total current assets 186,504 191,864 (5,360) Property, plant and equipment, net 24,977 22,748 2,229 Satellites and related ground systems, net 511,333 488,145 23,188 Goodwill 34,264 34,264 - Intangible assets, net 12,346 14,335 (1,989) Non-current restricted cash 14,640 - 14,640 Other non-current assets 12,986 12,978 8 Deferred tax assets 15,005 30,271 (15,266) ------ ------ ------- Total assets $812,055 $794,605 $17,450 ======== ======== ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $44,437 $69,763 $(25,326) Current portion of deferred revenue 55,782 40,629 15,153 Current deferred tax liability 5,594 5,594 - ----- ----- --- Total current liabilities 105,813 115,986 (10,173) Long-term debt 248,037 247,502 535 Long-term deferred revenue, net of current portion 200,350 199,317 1,033 Non-current income tax reserve 288 1,396 (1,108) --- ----- ------ Total liabilities 554,488 564,201 (9,713) ------- ------- ------ Commitments and contingencies - - - Stockholders' equity: - Preferred stock - - - Common stock 189 184 5 Additional paid-in capital 217,330 210,513 6,817 Retained earnings 40,048 19,707 20,341 ------ ------ ------ Total stockholders' equity 257,567 230,404 27,163 ------- ------- ------ Total liabilities and stockholders' equity $812,055 $794,605 $17,450 ======== ======== ======= Nine Months Ended 9/30/09 9/30/08 Change ------- ------- ------ (unaudited) Net cash provided by operating activities $69,277 $45,418 $23,859 Net cash used in investing activities (57,918) (127,193) 69,275 Net cash provided by financing activities 5,496 1,080 4,416 Net increase (decrease) in cash and cash equivalents 16,855 (80,695) 97,550 Cash and cash equivalents, beginning of period 106,733 226,761 (120,028) ------- ------- -------- Cash and cash equivalents, end of period $123,588 $146,066 $(22,478) ======== ======== ======== ABOUT GEOEYE

GeoEye is an international technology company serving government and commercial markets. The company is recognized as one of the geospatial industry's imagery experts, delivering exceptional quality imagery products, services and solutions to customers around the world. Headquartered in Dulles, Virginia, the company has 534 employees, as of September 30, 2009, dedicated to developing best-in-class geospatial, communications and information products, systems, and services. The Company provides support to academic institutions and non-governmental organizations through the GeoEye Foundation (http://www.geoeyefoundation.org/). GeoEye is a public company listed on the NASDAQ stock exchange under the symbol GEOY. Additional information about GeoEye, Inc. is available at http://www.geoeye.com/.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Without limitation, the words "anticipates," "believes," "estimates," "expects," "intends," "plans," "will" and similar expressions are intended to identify forward-looking statements. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including statements relating to growth, expected levels of expenditures and statements expressing general optimism about future operating results, are forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements and those presented elsewhere by our management from time to time are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. These risks and uncertainties include, but are not limited to, those described in "Risk factors" included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2008, which we filed with the Securities and Exchange Commission ("SEC") on April 2, 2009, and our Quarterly Report on Form 10-Q for the period ended March 31, 2009 and June 30, 2009, which we filed with the SEC on May 12, 2009 and August 10, 2009, respectively. A copy of all SEC filings may be obtained from the SEC's EDGAR web site, http://www.sec.gov/, or by contacting: William L. Warren, Senior Vice President, General Counsel and Secretary, at 703-480-5672.

Photo: http://www.newscom.com/cgi-bin/prnh/20080625/LAW528LOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com GeoEye, Inc.

CONTACT: Investor Relations, Randy Scherago, +1-703-480-7529,
scherago.randy@geoeye.com, or Media, Mark Brender, +1-703-480-9562,
brender.mark@geoeye.com, both of GeoEye

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

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