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Companies news of 2010-02-11 (page 10)

  • Comfone Expands International Connectivity with Performance Technologies' SEGway(TM)...
  • Kohl's Department Stores Launches Multimillion Dollar Initiative to Fight Breast...
  • SRS TruMedia Now Available on Broadcom VideoCore(R) Mobile Multimedia ProcessorsSRS...
  • ProLogis Reports Fourth Quarter/Year-end 2009 Results- Full-year FFO per Share in Line...
  • Maxwell Technologies' Q4 and FY09 Financial Results Press Release, Conference Call and...
  • BorgWarner Posts Strong Fourth Quarter Earnings of $0.45 Per Diluted ShareProvides 2010...
  • Gulf Resources Engages BDO Limited as New Independent Auditor
  • Emerald Dairy Makes Offer to Exchange Outstanding Warrants for Warrants Exercisable at...
  • Rollins Inc. to Participate in the 12th Annual Credit Suisse Global Services Conference
  • Sears Reaches Agreement With Schumacher Electric to Sell DieHard(R) Brand ProductsDieHard...
  • Shoppers Bring in Spring With the Newest Accessory Trends and Essentials From Payless...
  • ProfitStars(R) Reintroduces Alogent Brand- Product Names Reinforce Company's Heritage as a...
  • TreeHouse Foods, Inc. Reports Fourth Quarter 2009 Results
  • Grainger Reports January 2010 Sales Results
  • PepsiCo Delivers Solid Results for Fiscal 2009Affirms Core Constant Currency EPS Growth...
  • SAIC Awarded $12 Million Delivery Order to Develop U.S. Army Aviation Crew Member...
  • Corinthian Colleges to Present at the Credit Suisse 12th Annual Global Services Growth...
  • Point.360 Invites You to Joint Its Second Quarter Conference Call
  • Webcast Alert: Trinity Industries, Inc. Announces Fourth Quarter 2009 Results Conference...
  • Torchmark Corporation Announces Fourth Quarter 2009 Earnings Release and Conference Call
  • YM BioSciences presents CYT387 and CYT997 data at international cancer conference
  • Alliance Data's Canadian Loyalty Business Signs Multi-Year Renewal Agreement With...
  • Cadence Pharmaceuticals Receives Complete Response Letter from FDA for Intravenous...
  • Tokyo High Court Grants Stay of JFTC Order
  • Advanced Energy(R) Solaron(R) PV Inverters Selected for San Francisco Sunset Reservoir 5...
  • ENER1 Fourth Quarter 2009 Earnings Call Scheduled for March 11
  • Progress Energy Announces 2009 Fourth-Quarter and Full-Year Results; Affirms Full-Year...
  • EnPro Industries Reports Fourth Quarter and Full Year Results for 2009- Sales improved 18%...
  • Perma-Fix Hosts Corporate Presentation on Investor Roadshow Website; Provides Business...
  • FirstEnergy Reports 2009 Earnings



    Comfone Expands International Connectivity with Performance Technologies' SEGway(TM) Signalling Solution

    ROCHESTER, N.Y., Feb. 11 /PRNewswire-FirstCall/ -- Performance Technologies , a leading developer of communication platforms and systems, and Comfone, an international roaming service provider to over 300 mobile operators, today announced an expansion of Comfone's Signalling network using Performance Technologies' SEGway(TM) Solution.

    Comfone's international SS7 Signalling service reaches GSM operators in over 700 locations worldwide and includes signalling access, routing, online reporting, SMS interworking, roaming management, and hub services. With its Enhanced Signalling, Comfone offers operators the option to extend roaming coverage through customised service levels, reducing costs, and adding value to roaming services. Signalling is a core competency for both Comfone and Performance Technologies; in combination they provide an unparalleled level of service and expertise resulting in competitive roaming value for Comfone's customers.

    Matthias Rufenacht, Chief Operating Officer of Comfone, said, "Performance Technologies is the competent partner we need. With their expertise and innovative technical solutions they fulfill our mediation requirements regarding signalling capabilities very well. The Performance Technologies Solution supports our permanent endeavours to further enhance our Signalling service and allows us to minimise costs while guaranteeing our high standards of quality and service."

    Performance Technologies' SEGway Solutions are highly reliable, scalable, and allow low cost transportation of SS7 messages across high latency environments such as satellite and IP networks.

    "We are very pleased to partner with Comfone to provide the signalling transport solution for their strategic network interconnect," said David Colbeck, Vice President of Sales, EMEA for Performance Technologies. "Their use of our proven technology, and advanced signalling solutions, further validates our position as the market leader in delivering the most cost-effective, comprehensive signalling platforms available today."

    Performance Technologies will feature SEGway Solutions on their Stand 2G39 at the Mobile World Congress Show in Barcelona, Spain, February 15-18, 2010.

    About Comfone (http://www.comfone.com/)

    Comfone, provider of roaming services to over 300 operators in 130 countries, is an international mobile roaming specialist with over ten years of experience and customer-orientated in-house expertise. Through its unique services and solutions portfolio ranging from complete outsourcing of roaming to individual elements such as signalling, data, convergence, clearing and WLAN services, Comfone provides mobile operators with worldwide coverage, interconnection and clearing through only one agreement with Comfone and one connection to Comfone's central platform.

    From Comfone's headquarters in Switzerland and regional offices covering Northern and Eastern Europe, Latin America, North America, Central Asia and Asia Pacific, Comfone is well placed to meet the requirements of its substantial worldwide customer base.

    About Performance Technologies (http://www.pt.com/)

    Performance Technologies is a global supplier of advanced network communications and control solutions to end users, application developers, and original equipment manufacturers that serve mission critical telecommunications as well as aerospace and defense markets. The company provides remotely manageable, IP-centric network elements specifically engineered for high availability, scalability, and long life cycle deployments. Its products are built upon its own U.S. manufactured hardware combined with the company's NexusWare® Carrier Grade Linux® operating system and software development environment plus a broad suite of communications protocols and high availability middleware. Performance Technologies' product portfolio includes the SEGway(TM) suite of Signalling (SS7/SIP) Transfer Points, Signalling Gateways and Bridges, and its IPnexus® family of COTS-based application-ready systems, WAN gateways, and multi-protocol communications servers.

    Performance Technologies maximizes the value proposition of its products by leveraging its field proven systems, software, and hardware technologies developed over a twenty-eight year record of demonstrated innovation. A tightly integrated combination of these technologies results in measurable benefits to its customers through compelling return-on-investment and substantially accelerated time-to-market metrics. The company is headquartered in Rochester, NY and maintains centers of engineering excellence in San Diego and San Luis Obispo, CA, and Kanata, ON, Canada. It has sales and marketing offices in the U.S. in Raleigh, Chicago, Dallas, and San Jose and international offices in London, England and Shanghai, China.

    Forward Looking Statements

    This press release contains forward-looking statements which reflect the Company's current views with respect to future events and which could impact the Company's financial performance. These statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act. The Company's future operating results are subject to various risks and uncertainties and may be affected by various trends and factors which are beyond the Company's control, including customers' acceptance of the Company's new products. Forward-looking statements should be read in conjunction with the audited Consolidated Financial Statements, the Notes thereto, Risk Factors, and Management's Discussion and Analysis of Financial Condition and Results of Operations of the Company as of December 31, 2008, as contained in the Company's Annual Report on Form 10-K, and other documents filed with the Securities and Exchange Commission.

    The names of actual companies, products, or services may be the trademarks, registered trademarks, or service marks of their respective owners in the United States and/or other countries.

    Performance Technologies

    CONTACT: Will Smith, Marketing Communications Manager, Performance
    Technologies, +1-585-256-0200, wjs@pt.com

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




    Kohl's Department Stores Launches Multimillion Dollar Initiative to Fight Breast CancerKohl's to donate $7 million to American Cancer Society and the Milwaukee Affiliate of Susan G. Komen for the Cure(R) in Wisconsin

    MENOMONEE FALLS, Wis., Feb. 11 /PRNewswire-FirstCall/ -- Kohl's Department Stores announced today a new philanthropic initiative to fight breast cancer in the state of Wisconsin. Kohl's will donate more than $7 million over the next three years to the American Cancer Society and the Milwaukee Affiliate of Susan G. Komen for the Cure. The donation, which will be used to support breast cancer research, education and patient-assistance programs, represents the largest corporate gift ever made to the Komen Milwaukee Affiliate -- or any national Affiliate -- of Susan G. Komen for the Cure®, as well as to the American Cancer Society's Midwest division, which includes Iowa, Minnesota, South Dakota and Wisconsin.

    To view the multimedia assets associated with this release, please click: http://multivu.prnewswire.com/mnr/kohls/42337/

    "At a time when many companies are cutting philanthropic giving, we are in a financial position that allows us to expand our community relations programs with a new focus on women's causes," said Kevin Mansell, Kohl's president, chief executive officer and chairman of the board. "Today we're proud to announce our commitment to support the Milwaukee Affiliate of Susan G. Komen for the Cure and the American Cancer Society in the fight against breast cancer. The incidence rate of invasive breast cancer in the state of Wisconsin is above the national average, and as a company, we are passionate about supporting this important cause and making a difference in the lives of women."

    "We are honored to have Kohl's join the American Cancer Society to help create a world with less breast cancer," said Jari Johnston-Allen, CEO, American Cancer Society, Midwest Division. "Kohl's donation will make a significant difference in our ability to educate women regarding prevention and early detection, and provide needed assistance to breast cancer patients."

    In 2009, almost 3,500 Wisconsin women were predicted to be diagnosed with breast cancer. Kohl's partnership with the American Cancer Society will focus on educating women about breast health care. Specifically, program elements include development and distribution of a breast health kit containing resources to reduce risk and manage treatment; funding of new health care positions and programs to educate and provide assistance throughout our communities; research funding; and event sponsorship.

    "Kohl's recognized the need to do more, to reach more women, to save more lives," said Sally Sheperdson, Executive Director, Komen Milwaukee Affiliate. "This contribution will make a significant impact on the women of Southeast Wisconsin. Most women are putting off needed preventative breast cancer screenings due to economic hardships and changing health insurance plans. With support from Kohl's, Komen can expand its mission programs that provide breast health education, free mammograms and financial assistance. We are thankful and thrilled to call Kohl's our partner."

    Education and awareness are key weapons in the fight against breast cancer and early detection. For example, approximately 50 percent of women in Milwaukee County are not getting their recommended annual screenings. The Kohl's partnership with the Komen Milwaukee Affiliate is aimed at increasing breast health screenings through a grassroots based education program; a marketing campaign designed to incite women to take action; financial assistance for those unable to pay for a mammogram and event sponsorship.

    In addition to this contribution, Kohl's is considering offering a series of specially-designed products to support the fight against breast cancer. The merchandise is expected to be available in select stores and on http://www.kohls.com/ in the fall, and most importantly, 100 percent of net proceeds will support breast cancer causes.

    This new philanthropic initiative builds upon Kohl's long history of charitable involvement in the communities it serves. Since 2000, Kohl's and the Kohl's Cares for Kids program have combined to give approximately $20 million to support charitable initiatives in the metro-Milwaukee area. Also, over the past 10 years, the company's Kohl's Cares for Kids cause program, which sells plush toys and books, has raised more than $126 million to benefit children's health and education initiatives nationwide.

    The company has made the following recent contributions to the Milwaukee community:

    -- $3 million donation over the next three years to Junior Achievement to create a new interactive learning facility, the Kohl's Education Center (announcement made January 2010). -- $1 million donation to Penfield Children's Center to create a new program delivering specialized resources and services for children with developmental challenges (announcement made December 2009). -- $225,000 donation to Hunger Task Force to create a supper meal program for students in Milwaukee. The one-year program will feed 2,775 students each day (announcement made September 2009). -- $1 million donation to the Milwaukee Art Museum to fund the youth art education program, Kohl's Art Generation (announcement made March 2008). -- For the past ten years, the Kohl's Cares for Kids program has supported Children's Hospital of Wisconsin. In 2009, the hospital received $725,000.

    For more information on Kohl's philanthropic efforts, visit http://www.kohlscorporation.com/.

    About Kohl's Department Stores

    Based in Menomonee Falls, Wis., Kohl's is a family-focused, value-oriented specialty department store offering moderately priced, exclusive and national brand apparel, shoes, accessories, beauty and home products in an exciting shopping environment. Kohl's operates 1,059 stores in 49 states. A company committed to the communities it serves, Kohl's has raised more than $126 million for children's initiatives nationwide through its Kohl's Cares for Kids® philanthropic program, which operates under Kohl's Cares, LLC, a wholly-owned subsidiary of Kohl's Department Stores, Inc. For a list of store locations and information, or for the added convenience of shopping online, visit http://www.kohls.com/.

    About Susan G. Komen for the Cure

    Nancy G. Brinker promised her dying sister, Susan G. Komen, she would do everything in her power to end breast cancer forever. In 1982, that promise became Susan G. Komen for the Cure, which is now the world's largest breast cancer organization and the largest source of nonprofit funds dedicated to the fight against breast cancer with more than $1.3 billion invested to date. For more information about Susan G. Komen for the Cure, breast health or breast cancer, visit http://www.komenmilwaukee.org/ or call 1-877 GO KOMEN.

    American Cancer Society

    The American Cancer Society combines an unyielding passion with nearly a century of experience to save lives and end cancer for good. As a global grassroots force of three million volunteers, we fight for every birthday threatened by every cancer in every community. We save lives by helping you stay well by preventing cancer or detecting it early, helping you get well by being there for you during and after a diagnosis, by finding cures through groundbreaking discovery and fighting back through public policy. As the nation's largest non-governmental investor in cancer research, contributing about $3.4 billion, we turn what we know about cancer into what we do. As a result, more than 11 million people in America who have had cancer and countless more who have avoided it will be celebrating birthdays this year. To learn more about us or to get help, call us anytime, day or night, at 1-800-227-2345 or visit cancer.org.

    Video: http://multivu.prnewswire.com/mnr/kohls/42337 Kohl's Department Stores

    CONTACT: Vicki Shamion, +1-262-703-1464, vicki.shamion@kohls.com, or Jen
    Johnson, +1-262-703-5241, jen.johnson@kohls.com, both of Kohl's

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




    SRS TruMedia Now Available on Broadcom VideoCore(R) Mobile Multimedia ProcessorsSRS TruMedia Enables Compelling Home Theater Experience on a Mobile Phone

    SANTA ANA, Calif., Feb. 11 /PRNewswire-FirstCall/ -- SRS Labs , the industry leader in surround sound, audio, and voice technologies, announced today that it is bringing the advanced SRS TruMedia audio suite to Broadcom's VideoCore mobile multimedia processors, including the BCM2727 and its recently announced successor, the BCM2763, to deliver the most complete mobile entertainment experience.

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

    The application of SRS TruMedia on Broadcom's latest BCM2763 1080p mobile processor completes a truly striking high-definition mobile visual experience through the addition of SRS' premium immersive 3D surround sound, elevating its impressive performance and appeal in the marketplace. Together these technologies expand a mobile phone's audio capabilities, in order to offer an unprecedented entertainment experience through the built-in speakers in the device, over headphones and for external audio/video endpoints, such as connecting to an HDTV or monitor.

    "Users are increasingly demanding more from their mobile devices in terms of entertainment," said Mark Casey, Vice President & General Manager of Mobile Multimedia at Broadcom. "The addition of SRS TruMedia 3D audio to our popular VideoCore mobile HD platform provides for a compelling and notably more immersive mobile video experience."

    SRS TruMedia is based on a modular platform, making it simple for OEMs to precisely tune the TruMedia suite for optimal audio performance on every mobile phone make and model. With TruMedia, music and videos sound remarkably more natural and detailed, with enhanced depth and clarity. Now, speakers of all sizes and capabilities can offer a 3D sound field and increased bass response. And, while listening over headphones, users will be enveloped in an immersive surround sound experience.

    "Broadcom has been a top platform partner for SRS on both Set-top-boxes and DTVs, and we are excited to take the next evolutionary step in our relationship to work together and advance the mobile entertainment experience to the next level," said Joanna Skrdlant, Senior Director of the Global Platform Partner Program for SRS Labs. "Great sound goes hand-in-hand with great video and, by enabling SRS' sound on the Broadcom mobile processors, we are delivering an unmatched audio experience that can be easily deployed by mobile device makers."

    Audio performance has become a significant feature for new mobile phones as consumers shop for more sophisticated multimedia-capable models. In a recent MarketTools study conducted in November 2009 in United States, 92% of the survey respondents indicated that the quality of sound is important to very important when purchasing a mobile phone. In addition, a mere 22% of the respondents indicated their satisfaction with the mobile phones they were using at the time of the survey. Both indicators above clearly illustrate the need for advanced multimedia solution such as SRS TruMedia.

    SRS TruMedia is available for license through SRS Labs for Broadcom's VideoCore mobile multimedia processors. Demonstrations of the combined solution will be available at Mobile World Congress in Barcelona, Spain at the SRS meeting room Hall 4, Level 7, Stand HS10.

    About SRS Labs, Inc.

    Founded in 1993, SRS Labs is the industry leader in audio signal processing for consumer electronics. Beginning with the audio technologies originally developed at Hughes Aircraft, SRS Labs holds over 150 worldwide patents and is recognized by the industry as the foremost authority in research and application of audio post processing technologies based on the human auditory principles. Through partnerships with leading global CE companies, semiconductor manufacturers and software partners, SRS is recognized as the de facto standard in audio enhancement, surround sound, volume leveling and voice processing technologies. SRS solutions have been included in over one billion electronic products sold worldwide including flat panel HDTVs, STBs, mobile phones, portable media devices, PCs and automotive entertainment. SRS Labs supports its partners around the globe with a network of offices in regions including the U.S., China, Europe, Japan, Korea and Taiwan. For more information, visit http://www.srslabs.com/. Visit SRS Labs' blog at soundingoff.srslabs.com, on Facebook at http://www.facebook.com/srslabs or on Twitter at http://www.twitter.com/srslabs.

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

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

    Photo: http://www.newscom.com/cgi-bin/prnh/20070322/LATH036LOGOhttp://www.newscom.com/cgi-bin/prnh/20070322/LATH036LOGO
    AP Archive: http://photoarchive.ap.org/
    PRN Photo Desk, photodesk@prnewswire.com SRS Labs, Inc.

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

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




    ProLogis Reports Fourth Quarter/Year-end 2009 Results- Full-year FFO per Share in Line with Previous Guidance - - Property Market Fundamentals Showing Signs of Improvement - - Company Establishes 2010 Guidance -

    DENVER, Feb. 11 /PRNewswire-FirstCall/ -- ProLogis , a leading global provider of distribution facilities, today reported funds from operations as defined by ProLogis (FFO), excluding significant non-cash items, of $1.15 per diluted share in 2009, compared with $3.51 for 2008. (See Summary of Results table for details). These amounts reflect the add back of impairments on real estate properties, goodwill and other assets totaling $0.81 per diluted share in 2009 and $3.01 in 2008. ProLogis reported a net loss per diluted share of $0.01 for 2009, compared with a net loss of $1.82 for 2008.

    For the fourth quarter, FFO, excluding significant non-cash items, was $0.13 per diluted share in 2009, compared with $0.56 in 2008. These amounts reflect the add back of impairments on real estate properties, goodwill and other assets totaling $0.78 per diluted share in the fourth quarter of 2009 and $3.04 in 2008. For the fourth quarter of 2009, the company reported a net loss per diluted share of $0.86, compared with a net loss of $3.39 in the same period of 2008.

    Reconciliation to Previous Guidance

    In addition to the non-cash impairment charges referred to above, the company experienced various non-recurring charges in the fourth quarter and earlier in 2009, as detailed below. FFO, excluding significant non-cash items and non-recurring charges, was $1.41 per diluted share for the full year, in line with the company's previous guidance of $1.39 to $1.43. For the fourth quarter, FFO, excluding significant non-cash items and non-recurring charges, was $0.23 per diluted share.

    Three Months Twelve Months Ended Ended December 31, December 31, 2009 2009 ---- ---- FFO, excluding significant non-cash items $0.13 $1.15 Add (deduct) non-recurring charges: Indemnifications related to contributed or sold properties 0.08 0.09 Realized losses on foreign currency transactions - 0.05 Capital markets costs 0.03 0.04 ProLogis' share of losses on sale of fund assets - 0.03 Reduction in workforce - 0.03 Other 0.01 0.04 Adjustments to tax and compensation-related liabilities (0.02) (0.02) ---- ---- Add summarized non-recurring charges 0.10 0.26 ---- ---- FFO, excluding significant non-cash items and non-recurring charges $0.23 $1.41

    Significant Accomplishments in 2009 Position Company for Future Opportunities

    "We began 2009 with an action plan and aggressive goals related to asset dispositions, debt reduction and development portfolio leasing," said Walter C. Rakowich, chief executive officer. "Throughout the year, we made tough choices and remained highly focused on stabilizing the company. We are pleased to have accomplished our goals, putting the company on firm financial footing and positioning us to take advantage of opportunities as market conditions improve."

    Among ProLogis' specific goals for 2009 were to: reduce debt by $2 billion, complete $1.5 to $1.7 billion of asset dispositions and contributions to property funds (exclusive of the sale of certain Asian operations) and achieve static development portfolio leasing of 60 to 70 percent. At year end 2009, the company had reduced debt by $2.7 billion, completed $1.53 billion of property dispositions and contributions and achieved static development portfolio leasing of 68.2 percent.

    Continued Signs of Stabilization and Improvement in Property Markets

    "While focusing on our action plan, we also worked diligently to maintain stable occupancies in our core portfolio," Rakowich added. "The bottoming of market occupancies and rents that we began to see in mid-2009 held up in the fourth quarter, with some markets showing improvement. For the top 31 North American markets we track, overall net demand turned positive in the fourth quarter, and we saw similar pockets of positive take-up in Europe. And, although we expect net effective rental rates on turnovers to be negative throughout 2010, we believe improving occupancies and the continued lack of new supply will pave the way for improving rental rates in 2011."

    ProLogis' non-development portfolio was 92.4 percent leased at the end of the fourth quarter, down slightly compared with 92.7 percent leased at September 30. Same-store net operating income (SS NOI), as adjusted (excluding same-store assets associated with the company's development portfolio), decreased 4.2 percent, a slight improvement over the third quarter SS NOI decline. Net effective rental rates on turnover of 23.6 million square feet, or 6.0 percent of the adjusted same-store pool, were down 11.7 percent for the quarter, representing an improvement over the third quarter decline.

    Build-to-Suit Development Demand Supports Reductions in Land Position

    "While new speculative development has remained virtually non-existent, during the fourth quarter we continued to see demand for build-to-suit development from customers whose supply chain optimization requirements could not be met with the available supply of space," said Ted R. Antenucci, chief investment officer. ProLogis' fourth quarter starts consisted of a 667,000-square-foot facility for a major home improvement retailer in Southern California and a 504,000-square-foot facility for a leading UK retailer in Scotland. Including joint venture partner capital contributions, total expected investment for all build-to-suit developments started in the second half of 2009 is $336 million.

    "Given the continued interest from customers in build-to-suits, we expect to start $700 to $800 million of new development in 2010, primarily in Europe and Asia. We also will continue to pursue land sales, which when combined with new development, will allow us to begin to monetize roughly $350 to $400 million of land in 2010," Antenucci added.

    Strategic Repositioning of Asset Base

    "In 2009, we used the proceeds from nearly $2.9 billion of contributions and dispositions, including the sale of certain Asian operations, to reduce debt and fund our development portfolio," said Rakowich. "Having stabilized our balance sheet, we are now looking to fund new development activity in a slightly different, leverage-neutral manner. Due to improving property values and growing institutional demand for quality properties, in 2010 we plan to generate $1.3 to $1.5 billion of proceeds from sales of existing assets and contributions to funds, primarily in the United States, and use the proceeds to fund the remaining costs associated with our existing development portfolio as well as 2010 development starts. This approach will allow us to retain more of our non-US development on our balance sheet, thereby improving the geographic diversification of our direct owned assets."

    Continued Financing Progress for ProLogis and Property Funds

    "We continued to focus on further extending and smoothing the debt maturities both on ProLogis' balance sheet and in our property funds," said William E. Sullivan, chief financial officer. "In the fourth quarter, we issued $600 million of 10-year, ProLogis senior notes and closed on a $108 million secured financing in Japan on our balance sheet. Since the beginning of the fourth quarter, we closed on euro 886 million of financings in our European funds, effectively reducing 2010 maturities within those funds to approximately euro 327 million. This is significant progress from the over euro 1.8 billion of 2010 fund debt maturities we were faced with at the beginning of 2009."

    Guidance for 2010

    ProLogis established full-year 2010 FFO guidance, excluding significant non-cash items, of $0.74 to $0.78 per share, of which approximately $0.10 relates to expected gains on dispositions of development and land. Net earnings are expected to be between $0.25 and $0.29 per diluted share. A summary of the business drivers supporting ProLogis' 2010 guidance is available at http://ir.prologis.com/2010BusinessDrivers.cfm.

    Copies of ProLogis' fourth quarter 2009 supplemental information will be available from the company's website at http://ir.prologis.com/ in the "Annual & Supplemental Reports" section before open of market on Thursday, February 11, 2010. The company will host a webcast/conference call on Thursday, February 11, 2010, at 10:00 a.m. Eastern Time. The live webcast and the replay will be available on the company's website at http://ir.prologis.com/. Additionally, a podcast of the company's conference call will be available on the company's website.

    About ProLogis

    ProLogis is a leading global provider of distribution facilities, with more than 475 million square feet of industrial space owned and managed (44 million square meters) in markets across North America, Europe and Asia. The company leases its industrial facilities to more than 4,400 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. For additional information about the company, go to http://www.prologis.com/.

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    The statements above that are not historical facts 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. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which ProLogis operates, management's beliefs and assumptions made by management, they involve uncertainties that could significantly impact ProLogis' financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future - including statements relating to rent and occupancy growth, development activity and changes in sales or contribution volume of developed properties, general conditions in the geographic areas where we operate and the availability of capital in existing or new property funds - are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, (v) maintenance of real estate investment trust ("REIT") status, (vi) availability of financing and capital, (vii) changes in demand for developed properties, and (viii) those additional factors discussed in reports filed with the Securities and Exchange Commission by ProLogis under the heading "Risk Factors." ProLogis undertakes no duty to update any forward-looking statements appearing in this press release.

    Overview (in thousands, except per share amounts) Summary of Results Three Months Ended Twelve Months Ended December 31, December 31, --------------------- ---------------------- 2009 2008 (1) 2009 2008 (1) --------- ---------- ---------- ---------- Revenues (9) $ 260,318 $1,468,335 $1,223,082 $5,565,983 Net loss (a) $(408,459) $ (901,232) $ (2,650) $ (479,226) Net loss per share - Diluted (a) $ (0.86) $ (3.39) $ (0.01) $(1.82) FFO, including significant non-cash items (a) $(305,761) $ (660,096) $ 138,885 $ 133,840 Add (deduct) significant non-cash items: Impairment of real estate properties 207,668 274,705 331,592 274,705 Impairment of goodwill and other assets 157,076 320,636 163,644 320,636 Impairment (net gain) related to disposed assets - China operations - 198,236 (3,315) 198,236 Loss (gains) on early extinguishment of debt 960 (90,719) (172,258) (90,719) Our share of the loss/impairment recorded by PEPR related to PEPF II - 108,195 - 108,195 Our share of similar (gains) losses recognized by the property funds, net 2,882 - 9,240 - --------- ---------- ---------- ---------- Total adjustments for significant non-cash items 368,586 811,053 328,903 811,053 --------- ---------- ---------- ---------- FFO, excluding significant non-cash items (a) $ 62,825 $ 150,957 $ 467,788 $ 944,893 ========= ========== ========== ========== FFO per share - Diluted, including significant non-cash items (a) $ (0.65) $ (2.48) $ 0.34 $ 0.50 Add (deduct) - summarized significant non-cash adjustments - per share 0.78 3.04 0.81 3.01 --------- ---------- ---------- ---------- FFO per share - Diluted, excluding significant non-cash items (a) $ 0.13 $ 0.56 $ 1.15 $ 3.51 ========= ========== ========== ========== (a) These amounts are attributable to common shares. Footnotes follow Financial Statements Consolidated Balance Sheets (in thousands, except per share data) December 31, December 31, 2009 2008 (1) ----------- ------------ Assets: Investments in real estate assets (1): Industrial properties: Core $ 7,436,539 $ 7,924,507 Completed development 4,108,962 3,031,449 Properties under development 191,127 1,181,344 Land held for development 2,569,343 2,482,582 Retail and mixed use properties 291,038 358,992 Land subject to ground leases and other 385,222 425,001 Other investments 233,665 321,397 ----------- ----------- 15,215,896 15,725,272 Less accumulated depreciation 1,671,100 1,583,299 ----------- ----------- Net investments in real estate assets 13,544,796 14,141,973 Investments in and advances to unconsolidated investees: Property funds (2) 1,876,650 1,957,977 Other unconsolidated investees 275,073 312,016 ----------- ----------- Total investments in and advances to unconsolidated investees 2,151,723 2,269,993 Cash and cash equivalents 34,362 174,636 Accounts and notes receivable 136,754 244,778 Other assets (1) 1,017,780 1,126,993 Discontinued operations - assets held for sale (2) - 1,310,754 ----------- ----------- Total assets $16,885,415 $19,269,127 =========== =========== Liabilities and Equity: Liabilities: Debt (1)(2)(3)(4)(5) $ 7,977,778 $10,711,368 Accounts payable and accrued expenses 455,919 658,868 Other liabilities 444,432 751,238 Discontinued operations - assets held for sale (2) - 389,884 ----------- ----------- Total liabilities 8,878,129 12,511,358 ----------- ----------- Equity (6): ProLogis shareholders' equity: Series C preferred shares at stated liquidation preference of $50 per share 100,000 100,000 Series F preferred shares at stated liquidation preference of $25 per share 125,000 125,000 Series G preferred shares at stated liquidation preference of $25 per share 125,000 125,000 Common shares at $.01 par value per share 4,742 2,670 Additional paid-in capital (1) 8,524,867 7,070,108 Accumulated other comprehensive income (loss) 42,298 (29,374) Distributions in excess of net earnings (1) (934,583) (655,513) ----------- ----------- Total ProLogis shareholders' equity 7,987,324 6,737,891 Noncontrolling interests (7) 19,962 19,878 ----------- ----------- Total equity 8,007,286 6,757,769 ----------- ----------- Total liabilities and equity $16,885,415 $19,269,127 =========== =========== Footnotes follow Financial Statements Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, -------------------- -------------------- 2009 2008 (1) 2009 2008 (1) --------- --------- --------- --------- Revenues: Rental income (8) $ 227,362 $ 215,196 $ 891,095 $ 913,650 Property management and other fees and incentives (2) 31,563 33,815 142,763 131,011 CDFS disposition proceeds (9): Developed and repositioned properties (2) - 1,192,935 180,237 4,206,446 Acquired property portfolios - 18,781 - 289,019 Development management and other income 1,393 7,608 8,987 25,857 --------- --------- --------- --------- Total revenues 260,318 1,468,335 1,223,082 5,565,983 --------- --------- --------- --------- Expenses: Rental expenses (10) 65,595 60,324 269,956 277,320 Investment management expenses (10) 11,835 12,344 43,416 50,761 Cost of CDFS dispositions (1)(9): Developed and repositioned properties - 1,086,150 - 3,551,700 Acquired property portfolios - 18,781 - 289,019 General and administrative (4)(10)(11) 52,161 36,987 180,486 177,350 Reduction in workforce (11) - 23,131 11,745 23,131 Impairment of real estate properties (12) 207,668 274,705 331,592 274,705 Depreciation and amortization 84,153 97,435 315,807 317,315 Other expenses 4,617 17,446 24,025 28,104 --------- --------- --------- --------- Total expenses 426,029 1,627,303 1,177,027 4,989,405 --------- --------- --------- --------- Operating income (loss) (165,711) (158,968) 46,055 576,578 Other income (expense): Earnings (loss) from unconsolidated property funds, net (13) (6,227) (105,024) 24,908 (69,116) Earnings from other unconsolidated investees, net 301 914 3,151 13,342 Interest expense (1)(14) (107,486) (100,314) (373,305) (385,065) Impairment of goodwill and other assets (12) (157,076) (320,636) (163,644) (320,636) Other income (expense), net (33,503) 2,526 (39,349) 16,522 Net gains on dispositions of real estate properties (9) 12,843 5,853 35,262 11,668 Foreign currency exchange gains (losses), net (15) 728 (115,303) 35,626 (148,281) Gains (loss) on early extinguishment of debt (3) (960) 90,719 172,258 90,719 --------- --------- --------- --------- Total other income (expense) (291,380) (541,265) (305,093) (790,847) --------- --------- --------- --------- Loss before income taxes (457,091) (700,233) (259,038) (214,269) Current income tax expense (benefit) (2) (878) 15,726 29,262 63,441 Deferred income tax expense (benefit) (2,600) (14,834) (23,287) 4,570 --------- --------- --------- --------- Total income taxes (3,478) 892 5,975 68,011 --------- --------- --------- --------- Loss from continuing operations (453,613) (701,125) (265,013) (282,280) Discontinued operations (16): Income (loss) attributable to disposed properties 1,490 (4,455) 24,163 11,049 Net gain (impairment) related to disposed assets - China operations (2) - (198,236) 3,315 (198,236) Net gains on dispositions: Non-development properties 21,024 1,557 220,815 9,718 Development properties and land subject to ground leases (2) 29,146 7,551 40,649 9,783 --------- --------- --------- --------- Total discontinued operations 51,660 (193,583) 288,942 (167,686) --------- --------- --------- --------- Consolidated net earnings (loss) (401,953) (894,708) 23,929 (449,966) Net earnings attributable to noncontrolling interests (7) (190) (172) (1,156) (3,837) --------- --------- --------- --------- Net earnings (loss) attributable to controlling interests (1) (402,143) (894,880) 22,773 (453,803) Less preferred share dividends 6,316 6,352 25,423 25,423 --------- --------- --------- --------- Net loss attributable to common shares $(408,459) $(901,232) $ (2,650) $(479,226) ========= ========= ========= ========= Weighted average common shares outstanding -Basic (6) 473,561 265,898 403,149 262,729 Weighted average common shares outstanding - Diluted (6) 473,561 265,898 403,149 262,729 Net earnings (loss) per share attributable to common shares - Basic: Continuing operations $ (0.97) $ (2.66) $ (0.73) $ (1.18) Discontinued operations 0.11 (0.73) 0.72 (0.64) --------- --------- --------- --------- Net earnings (loss) per share attributable to common shares - Basic $ (0.86) $ (3.39) $ (0.01) $ (1.82) ========= ========= ========= ========= Net earnings (loss) per share attributable to common shares -Diluted: Continuing operations $ (0.97) $ (2.66) $ (0.73) $ (1.18) Discontinued operations 0.11 (0.73) 0.72 (0.64) --------- --------- --------- --------- Net earnings (loss) per share attributable to common shares -Diluted $ (0.86) $ (3.39) $ (0.01) $ (1.82) ========= ========= ========= ========= Footnotes follow Financial Statements Consolidated Statements of Funds From Operations (FFO) (in thousands, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, --------------------- --------------------- 2009 2008 (1) 2009 2008 (1) --------- --------- --------- ---------- Revenues: Rental income $ 229,906 $ 249,778 $ 941,587 $1,035,335 Property management and other fees and incentives (2) 31,563 34,466 142,856 132,038 CDFS disposition proceeds (9): Developed and repositioned properties (2) - 1,239,378 180,237 4,271,786 Acquired property portfolios - 18,781 - 372,667 Development management and other income 1,393 7,822 8,987 26,344 --------- --------- --------- ---------- Total revenues 262,862 1,550,225 1,273,667 5,838,170 --------- --------- --------- ---------- Expenses: Rental expenses (10) 66,162 73,746 284,390 319,378 Investment management expenses (10) 11,835 12,344 43,416 50,761 Cost of CDFS dispositions (1)(9): Developed and repositioned properties - 1,126,198 - 3,610,123 Acquired property portfolios - 18,781 - 372,667 General and administrative (10)(11) 52,161 45,896 181,791 199,074 Reduction in workforce (11) - 26,431 11,745 26,431 Impairment of real estate properties (12) 207,668 274,705 331,592 274,705 Depreciation of corporate assets 3,828 4,177 15,897 16,332 Other expenses 4,617 21,400 24,031 33,192 --------- --------- --------- ---------- Total expenses 346,271 1,603,678 892,862 4,902,663 --------- --------- --------- ---------- Operating FFO (83,409) (53,453) 380,805 935,507 Other income (expense): FFO from unconsolidated property funds (13) 41,679 (62,039) 157,197 66,415 FFO from other unconsolidated investees 1,952 858 10,878 6,162 Interest expense (1) (107,486) (100,398) (373,135) (384,526) Net gain (impairment) related to assets held for sale - China operations (2) - (198,236) 3,315 (198,236) Impairment of goodwill and other assets (12) (157,076) (320,636) (163,644) (320,636) Other income (expense), net (33,503) 3,724 (39,277) 20,806 Net gains on dispositions of real estate properties (9) 35,515 - 65,587 - Foreign currency exchange gains (losses), net (503) 723 (22,571) (7,009) Gains (loss) on early extinguishment of debt (3) (960) 90,719 172,258 90,719 Current income tax benefit (expense) (2)(17) 4,536 (16,727) (25,805) (56,170) --------- --------- --------- ---------- Total other income (expense) (215,846) (602,012) (215,197) (782,475) --------- --------- --------- ---------- FFO (299,255) (655,465) 165,608 153,032 Less preferred share dividends 6,316 6,352 25,423 25,423 Less net earnings (loss) attributable to noncontrolling interests (7) 190 (1,721) 1,300 (6,231) --------- --------- --------- ---------- FFO attributable to common shares, including significant non-cash items $(305,761) $(660,096) $ 138,885 $ 133,840 Adjustments for significant non-cash items 368,586 811,053 328,903 811,053 --------- --------- --------- ---------- FFO attributable to common shares, excluding significant non-cash items $ 62,825 $ 150,957 $ 467,788 $ 944,893 ========= ========= ========= ========== Weighted average common shares outstanding - Basic (6) 473,561 265,898 403,149 262,729 FFO per share attributable to common shares, including significant non-cash items: Basic $ (0.65) $ (2.48) $ 0.34 $ 0.51 ========= ========= ========= ========== Diluted $ (0.65) $ (2.48) $ 0.34 $ 0.50 ========= ========= ========= ========== FFO per share attributable to common shares, excluding significant non-cash items: Basic $ 0.13 $ 0.57 $ 1.16 $ 3.60 ========= ========= ========= ========== Diluted $ 0.13 $ 0.56 $ 1.15 $ 3.51 ========= ========= ========= ========== Footnotes follow Financial Statements Reconciliations of Net Loss to FFO and EBITDA (in thousands) Reconciliation of net loss to FFO, including significant non-cash items Three Months Ended Twelve Months Ended December 31, December 31, --------------------- -------------------- 2009 2008 (1) 2009 2008 (1) --------- --------- -------- --------- Net loss (a) $(408,459) $(901,232) $ (2,650) $(479,226) Add (deduct) NAREIT defined adjustments: Real estate related depreciation and amortization 80,325 93,258 299,910 300,983 Adjustments to gains on dispositions for depreciation (3,183) (1,156) (5,387) (2,866) Gains on dispositions of non-development/ non-CDFS properties (3,291) (5,806) (4,937) (11,620) Reconciling items attributable to discontinued operations (16): Gains on dispositions of non-development/ non-CDFS properties (21,024) (1,557) (220,815) (9,718) Real estate related depreciation and amortization 487 9,012 11,319 33,661 --------- --------- -------- --------- Total discontinued operations (20,537) 7,455 (209,496) 23,943 Our share of reconciling items from unconsolidated investees: Real estate related depreciation and amortization 40,361 51,159 154,315 155,067 Adjustment to gains/losses on dispositions for depreciation (1,681) (329) (9,569) (492) Other amortization items (3,954) (3,337) (11,775) (15,840) --------- --------- -------- --------- Total unconsolidated investees 34,726 47,493 132,971 138,735 --------- --------- -------- --------- Total NAREIT defined adjustments 88,040 141,244 213,061 449,175 --------- --------- -------- --------- Subtotal- NAREIT defined FFO (320,419) (759,988) 210,411 (30,051) Add (deduct) our defined adjustments: Foreign currency exchange losses (gains), net (15) (1,231) 117,145 (58,128) 144,364 Current income tax expense (17) 3,658 - 3,658 9,656 Deferred income tax expense (benefit) (2,600) (15,406) (23,299) 4,073 Our share of reconciling items from unconsolidated investees: Foreign currency exchange losses (gains), net (15) (947) (82) (1,737) 2,331 Unrealized losses (gains) on derivative contracts, net (1,394) 18,007 (7,561) 23,005 Deferred income tax expense (benefit) 17,172 (19,772) 15,541 (19,538) --------- --------- -------- --------- Total unconsolidated investees 14,831 (1,847) 6,243 5,798 --------- --------- -------- --------- Total our defined adjustments 14,658 99,892 (71,526) 163,891 --------- --------- -------- --------- FFO, including significant non-cash items (a) $(305,761) $(660,096) $138,885 $ 133,840 ========= ========= ======== ========= Reconciliation of FFO, including significant non-cash items, to FFO, excluding significant non-cash items Three Months Ended Twelve Months Ended December 31, December 31, --------------------- -------------------- 2009 2008 (1) 2009 2008 (1) --------- --------- -------- -------- FFO, including significant non-cash items (a) $(305,761) $(660,096) $138,885 $133,840 Add (deduct) significant non-cash items: Impairment of real estate properties (12) 207,668 274,705 331,592 274,705 Impairment of goodwill and other assets (12) 157,076 320,636 163,644 320,636 Impairment (net gain) related to disposed assets - China operations (2) - 198,236 (3,315) 198,236 Loss (gains) on early extinguishment of debt (3) 960 (90,719) (172,258) (90,719) Our share of the loss/ impairment recorded by PEPR - 108,195 - 108,195 Our share of certain (gains) losses recognized by the property funds 2,882 - 9,240 - --------- --------- -------- -------- Total adjustments for significant non-cash items 368,586 811,053 328,903 811,053 --------- --------- -------- -------- FFO, excluding significant non-cash items (a) $ 62,825 $ 150,957 $467,788 $944,893 ========= ========= ======== ======== Reconciliation of FFO, excluding significant non-cash items, to EBITDA Three Months Ended Twelve Months Ended December 31, December 31, -------------------- ---------------------- 2009 2008 (1) 2009 2008 (1) -------- -------- ---------- ---------- FFO, excluding significant non-cash items (a) $ 62,825 $150,957 $ 467,788 $ 944,893 Interest expense 107,486 100,398 373,135 384,526 Depreciation of corporate assets 3,828 4,177 15,897 16,332 Current income tax expense (benefit) included in FFO (4,536) 16,727 25,805 56,170 Adjustments to gains on dispositions for interest capitalized 5,251 12,637 16,795 57,632 Preferred share dividends 6,316 6,352 25,423 25,423 Share of reconciling items from unconsolidated investees 41,284 33,812 173,682 173,900 -------- -------- ---------- ---------- Earnings before interest, taxes, depreciation and amortization (EBITDA) $222,454 $325,060 $1,098,525 $1,658,876 ======== ======== ========== ========== See Consolidated Statements of Operations and Consolidated Statements of FFO. Footnotes follow Financial Statements (a) Attributable to common shares. Calculation of Per Share Amounts (in thousands, except per share amounts) Net Loss Per Share Three Months Ended Twelve Months Ended December 31, December 31, ---------------------- --------------------- 2009 (a) 2008 (a) 2009 (a) 2008 (a) --------- --------- -------- ---------- Net loss - Basic (b) $(408,459) $(901,232) $ (2,650) $(479,226) Noncontrolling interest attributable to convertible limited partnership units (c) - - - - --------- --------- -------- --------- Adjusted loss - Diluted (b) $(408,459) $(901,232) $ (2,650) $(479,226) ========= ========= ======== ========= Weighted average common shares outstanding - Basic 473,561 265,898 403,149 262,729 Incremental weighted average effect of conversion of limited partnership units (c) - - - - Incremental weighted average effect of stock awards (d) - - - - --------- --------- -------- --------- Weighted average common shares outstanding - Diluted 473,561 265,898 403,149 262,729 Net loss per share - Diluted (b) $ (0.86) $ (3.39) $ (0.01) $ (1.82) ========= ========= ======== ========= FFO Per Share, including significant non-cash items Three Months Ended Twelve Months Ended December 31, December 31, ---------------------- -------------------- 2009 (a) 2008 (a) 2009 2008 --------- --------- -------- -------- FFO - Basic, including significant non-cash items (b) $(305,761) $(660,096) $138,885 $133,840 Noncontrolling interest attributable to convertible limited partnership units (c) - - - - --------- --------- -------- -------- FFO - Diluted, including significant non-cash items (b) $(305,761) $(660,096) $138,885 $133,840 ========= ========= ======== ======== Weighted average common shares outstanding - Basic 473,561 265,898 403,149 262,729 Incremental weighted average effect of conversion of limited partnership units (c) - - - - Incremental weighted average effect of stock awards (d) - - 2,474 3,372 --------- --------- -------- -------- Weighted average common shares outstanding - Diluted 473,561 265,898 405,623 266,101 ========= ========= ======== ======== FFO per share - Diluted, including significant non-cash items (b) $ (0.65) $ (2.48) $ 0.34 $ 0.50 ========= ========= ======== ======== FFO Per Share, excluding significant non-cash items Three Months Ended Twelve Months Ended December 31, December 31, ---------------------- -------------------- 2009 2008 2009 2008 --------- --------- -------- -------- FFO - Basic, including significant non-cash items (b) $(305,761) $(660,096) $138,885 $133,840 Adjustments for significant non-cash items 368,586 811,053 328,903 811,053 Noncontrolling interest attributable to convertible limited partnership units (c) - 172 1,156 3,837 --------- --------- -------- -------- FFO - Diluted, excluding significant non-cash items (b) $ 62,825 $ 151,129 $468,944 $948,730 ========= ========= ======== ======== Weighted average common shares outstanding - Basic 473,561 265,898 403,149 262,729 Incremental weighted average effect of conversion of limited partnership units (c) - 2,551 1,100 4,447 Incremental weighted average effect of stock awards (d) 3,159 1,527 2,474 3,372 --------- --------- -------- -------- Weighted average common shares outstanding - Diluted 476,720 269,976 406,723 270,548 ========= ========= ======== ======== FFO per share - Diluted, excluding significant non-cash items (b) $ 0.13 $ 0.56 $ 1.15 $ 3.51 ========= ========= ======== ======== (a) In periods with a net loss, the inclusion of any incremental shares is anti-dilutive, and, therefore, both basic and diluted shares are the same. (b) Attributable to common shares. (c) If the impact of the conversion of limited partnership units is anti- dilutive, the income and shares are not included in the diluted per share calculation. (d) Total weighted average potentially dilutive awards outstanding were 10,949 and 10,833 for the three months ended December 31, 2009 and 2008, respectively, and 11,539 and 10,204 for the year-ended December 31, 2009 and 2008, respectively. Of the potentially dilutive instruments, 5,639 and 7,506, were anti-dilutive for the three months ended December 31, 2009 and 2008, respectively, and 6,781 and 6,647, were anti-dilutive for the year-ended December 31, 2009 and 2008. In a loss period, the effect of stock awards is not included as the impact is anti-dilutive. Notes to Financial Statements Please also refer to our annual and quarterly financial statements filed with the Securities and Exchange Commission on Forms 10-K and 10-Q for further information about us and our business. Certain 2008 amounts included in our financial statements have been reclassified to conform to the 2009 presentation. (1) In May 2008, the Financial Accounting Standards Board ("FASB") issued a new standard that requires separate accounting for the debt and equity components of certain convertible debt. The value assigned to the debt component is the estimated fair value of a similar bond without the conversion feature at the time of issuance, which would result in the debt being recorded at a discount. The resulting debt discount is amortized through the first redeemable option date as additional non-cash interest expense. We adopted this standard on January 1, 2009, as required, on a retroactive basis for the convertible notes we issued in 2007 and 2008. As a result, we restated our 2008 results to reflect the additional interest expense and the additional capitalized interest related to our development activities for both properties we currently own, as well as properties that were contributed during the applicable periods. This restatement impacted earnings and FFO. The following tables illustrate the impact of the restatement on our Consolidated Balance Sheets and Consolidated Statements of Operations and FFO for these periods (in thousands): As of December 31, 2008 ------------------------------------------ As Reported Adjustments As Restated ----------- ----------- ----------- Consolidated Balance Sheet: ------------ Net investments in real estate assets $15,706,172 $ 19,100 $15,725,272 Other assets $ 1,129,182 $ (2,189) $ 1,126,993 Debt $11,007,636 $(296,268) $10,711,368 Additional paid in capital $ 6,688,615 $ 381,493 $ 7,070,108 Distributions in excess of net earnings $ (587,199) $ (68,314) $ (655,513) For the Three Months Ended, December 31, 2008 --------------------------------------------- As Reported Adjustments(a) As Restated ----------- -------------- ----------- (before 2009 discontinued operations adjustment) Consolidated Statements of Operations: -------------- Cost of CDFS dispositions $1,102,053 $ 2,878 $1,104,931 Interest expense, net of capitalization $ 88,737 $ 11,289 $ 100,026 Net loss attributable to controlling interests $ (880,713) $(14,167) $ (894,880) For the Twelve Months Ended, December 31, 2008 ---------------------------------------------- As Reported Adjustments (a) As Restated ----------- --------------- ----------- (before 2009 discontinued operations adjustment) Consolidated Statements of Operations: --------------- Cost of CDFS dispositions $3,836,519 $ 4,200 $3,840,719 Interest expense, net of capitalization $ 341,305 $ 42,830 $ 384,135 Net loss attributable to controlling interests $ (406,773) $(47,030) $ (453,803) (a) The adjustments are the same in our Consolidated Statements of FFO. (2) On February 9, 2009, we sold our operations in China and our property fund interests in Japan to affiliates of GIC Real Estate, the real estate investment company of the Government of Singapore Investment Corporation ("GIC RE"), for total cash consideration of $1.3 billion ($845 million related to China and $500 million related to the Japan investments). We used the proceeds primarily to pay down borrowings on our credit facilities. All of the assets and liabilities associated with our China operations were classified as Assets and Liabilities Held for Sale in our accompanying Consolidated Balance Sheet as of December 31, 2008. In the fourth quarter of 2008, based on the carrying values of these assets and liabilities, as compared with the estimated sales proceeds less costs to sell, we recognized an impairment of $198.2 million. In connection with the sale in the first quarter of 2009, we recognized a $3.3 million gain on sale. In addition, the results of our China operations are presented as discontinued operations in our accompanying Consolidated Statements of Operations for all periods. All operating information presented throughout this report excludes China operations. In connection with the sale of our investments in the Japan property funds, we recognized a gain of $180.2 million. The gain is reflected as CDFS Proceeds in our Consolidated Statements of Operations and FFO, as it represents previously deferred gains on the contribution of properties to the property funds based on our ownership interest in the property funds at the time of original contribution of properties. We also recognized $20.5 million in current income tax expense related to the Japan portion of the transaction. In April 2009, we sold one property in Japan to GIC RE for $128.1 million, resulting in a gain on sale of $13.1 million that is reflected as Discontinued Operations - Net Gains on Dispositions of Development Properties and Land Subject to Ground Leases and as Net Gains on Dispositions of Real Estate Properties in our Consolidated Statements of Operations and FFO, respectively. The building and related borrowings were classified as held for sale at December 31, 2008. We continued to manage the Japan properties until July 2009. In connection with the termination of the management agreement, we earned a termination fee of $16.3 million that is included in Property Management and Other Fees and Incentives in our Consolidated Statements of Operations and FFO. (3) During the three and twelve months ended December 31, 2009 in connection with our announced initiatives to reduce debt, we repurchased portions of several series of notes outstanding, the majority of which were at a discount, and extinguished some secured mortgage debt prior to maturity. These transactions resulted in the recognition of net gains or losses and are summarized, as follows (in thousands): For the For the For the Three Three Twelve and Twelve Months Ended Months Ended Months Ended December 31, December 31, December 31, 2009 2009 2008 ------------ ------------ ------------- Convertible Senior Notes: Original principal amount $117,736 $ 653,993 $ - Cash purchase price $102,920 $ 454,023 $ - Senior Notes (a): Original principal amount $224,506 $ 587,698 $309,722 Cash purchase price $226,754 $ 545,618 $216,805 Secured Mortgage Debt: Original principal amount (b) $ - $ 227,017 $ - Cash extinguishment price $ - $ 227,017 $ - Total: Original principal amount $342,242 $1,468,708 $309,722 Cash purchase/ extinguishment price $329,674 $1,226,658 $216,805 Gain (loss) on early extinguishment of debt(c) $ (960) $ 172,258 $ 90,719 (a) Included in the twelve months ended December 31, 2009 is the repurchase of euro 248.7 million ($356.4 million) original principal amount of our Euro senior notes for euro 235.1 million ($338.7 million). (b) In addition, there was an unamortized premium of $11.4 million (recorded at acquisition) that was included in the calculation of the gain on early extinguishment. (c) Represents the difference between the recorded debt (net of the discount or premium) and the consideration we paid to retire the debt. (4) On October 1, 2009, we completed a consent solicitation with regard to certain of our senior notes, and entered into a new supplemental indenture (the Ninth Supplemental Indenture) that amended certain indenture covenants, defined terms and thresholds for certain events of default. We recognized $14.5 million in fees and expenses related to the consent solicitation that are included in General and Administrative Expenses ("G&A") in our Consolidated Statements of Operations and FFO. (5) In August 2009, we amended the Global Line, extending the maturity to August 21, 2012 and reducing the size of our aggregate commitments to $2.25 billion (subject to currency fluctuations) after October 2010. The Global Line will continue to have lender commitments of $3.7 billion (subject to currency fluctuations) until October 2010, although our borrowing capacity may be less. In August 2009, we issued $350 million of senior notes with a stated interest rate of 7.625% and a maturity of August 2014. On October 30, 2009, we issued $600 million of senior notes with a stated interest rate of 7.375% and a maturity of October 2019. We used the proceeds from both issuances primarily to repay borrowings under our Global Line and other debt. (6) On April 14, 2009, we completed a public offering of 174.8 million common shares at a price of $6.60 per share and received net proceeds of $1.1 billion that were used to repay borrowings under our credit facilities. During the third quarter of 2009, we issued 29.8 million shares and received gross proceeds of $331.9 million and paid offering expenses of approximately $6.9 million under our at the market share issuance plan. (7) On January 1, 2009, we adopted the provisions of a new accounting standard that requires noncontrolling interests (previously referred to as minority interests) to be reported as a component of equity and changes the accounting for transactions with noncontrolling interest holders. (8) In our Consolidated Statements of Operations, rental income includes the following (in thousands): Three Months Ended Twelve Months Ended December 31, December 31, ------------------- ------------------- 2009 2008 2009 2008 -------- -------- -------- -------- Rental income $169,188 $158,259 $658,462 $669,460 Rental expense recoveries 46,621 47,591 194,775 210,934 Straight-lined rents 11,553 9,346 37,858 33,256 -------- -------- -------- -------- $227,362 $215,196 $891,095 $913,650 ======== ======== ======== ======== (9) In response to market conditions, during the fourth quarter of 2008 we modified our business strategy. As a result, as of December 31, 2008, we have two operating segments - Direct Owned and Investment Management, and we no longer have a CDFS Business segment. We presented the results of operations of our CDFS Business segment separately in 2008. Our direct owned segment represents the direct, long-term ownership of industrial properties. Our investment strategy in this segment focuses primarily on the ownership and leasing of industrial properties in key distribution markets. We consider these properties to be our Core Portfolio. Also included in this segment are operating properties we developed with the intent to contribute the properties to an unconsolidated property fund that we previously referred to as our "CDFS Pipeline" and, beginning December 31, 2008, we now refer to as our Completed Development Portfolio. Our intent is to hold the Core and Development properties, however, we may contribute either Core or Development properties to the property funds, to the extent there is fund capacity, or sell them to third parties. When we contribute or sell Development properties, we recognize FFO to the extent the proceeds received exceed our original investment (i.e. prior to depreciation). However, beginning January 1, 2009, we now present the results as Net Gains on Dispositions, rather than as CDFS Disposition Proceeds and Cost of CDFS Dispositions. In addition, we have industrial properties that are currently under development (also included in our Development Portfolio) and land available for development that are part of this segment as well. The investment management segment represents the investment management of unconsolidated property funds and joint ventures and the properties they own. (10) Beginning in 2009, we are reporting the direct costs associated with our investment management segment for all periods presented as a separate line item "Investment Management Expenses" in our Consolidated Statements of Operations and FFO. These costs include the property management expenses associated with the property-level management of the properties owned by the property funds and joint ventures (previously included in Rental Expenses) and the investment management expenses associated with the asset management of the property funds and joint ventures (previously included in General and Administrative Expenses). In order to allocate the property management expenses between the properties owned by us and the properties owned by the property funds and joint ventures, we use the square feet owned at the beginning of the period by the respective portfolios. See note 2 related to the Japan properties that we no longer manage. (11) As we announced in the fourth quarter of 2008, in response to the difficult economic climate, we initiated G&A reductions with a near- term target of a 20 to 25% reduction in G&A prior to capitalization or allocation. These initiatives include a Reduction in Workforce ("RIF") and reductions to other expenses through various cost savings measures. Due to the changes in our business strategy in the fourth quarter of 2008, we halted the majority of our new development activities, which, along with lower gross G&A, has resulted in lower capitalized G&A. Our G&A included in our Statements of Operations consisted of the following (in thousands): Three Months Ended Twelve Months Ended December 31, December 31, ------------------ ------------------- 2009 2008 2009 2008 ------- ------- -------- -------- Gross G&A(a) $80,187 $89,299 $294,598 $400,648 Reclassed to discontinued operations, net of capitalized amounts(b) - (8,906) (1,305) (21,721) Capitalized amounts and amounts reported as rental and investment management expenses (28,026) (43,406) (112,807) (201,577) ------- ------- -------- -------- Net G&A $52,161 $36,987 $180,486 $177,350 ======= ======= ======== ======== (a) Included in G&A in the fourth quarter of 2009 is $14.5 million of fees and expenses associated with the consent solicitation discussed in Note 4. (b) G&A costs included in discontinued operations is net of $2.3 million and $11.3 million of capitalized costs for the three and twelve months ended December 31, 2008, respectively. (12) During 2009 and 2008, we recorded impairment charges of certain of our real estate properties and other assets as outlined below (in millions): Three Months Ended Twelve Months Ended December 31, December 31, ----------------- ----------------- 2009 2008 2009 2008 ------ ------ ------ ------ Included in "Impairment of Real Estate Properties": Land held for development $135.8 $194.2 $137.0 $194.2 Completed and under development properties 3.5 34.8 126.2 34.8 Retail and mixed use properties 46.2 - 46.2 - Land subject to ground leases and other 17.6 - 17.6 - Other real estate investments 4.6 45.7 4.6 45.7 ------ ------ ------ ------ Total impairment of real estate properties $207.7 $274.7 $331.6 $274.7 Included in "Impairment of Goodwill and Other Assets": Goodwill $ - $175.4 $ - $175.4 Other assets 157.1 145.2 163.6 145.2 ------ ------ ------ ------ Total impairment of goodwill and other assets $157.1 $320.6 $163.6 $320.6 ------ ------ ------ ------ Total direct owned impairment charges included in continuing operations $364.8 $595.3 $495.2 $595.3 ====== ====== ====== ====== The impairment charges of real estate properties that we recognized in 2008 and 2009 were primarily based on valuations of real estate, which had declined due to market conditions, that we no longer expected to hold for long-term investment. Included in the 2009 impairment charges is $9.2 million that should have been recorded in 2008. This amount, along with an additional $3.0 million of deferred tax expense, was recorded in 2009 and relates to a revision of our estimated deferred income tax liabilities associated with our international operations. In order to generate liquidity, we have contributed certain completed properties to property funds (primarily in Europe) and sold or intend to sell certain land parcels or properties to third parties. To the extent these properties are expected to be sold at a loss, we record an impairment charge when the loss is known. The impairment charges related to goodwill that we recognized in the fourth quarter of 2008 and related to other assets that we recognized in 2009 and 2008 were similarly caused by the decline in the real estate markets. (13) The following table represents our share of income (loss) recognized by the property funds related to derivative activity and the sale of real estate properties (in thousands). Three Months Ended Twelve Months Ended December 31, December 31, ------------------- --------------------- 2009 2008 2009 2008 ------- --------- --------- ---------- Included in Earnings from Unconsolidated Property Funds in our Consolidated Statements of Operations: Derivative gain (loss) $1,394 $ (19,189) $ (6,306) $ (32,278) Gain (loss) from the sale of properties and impairment charges, net $ 946 $(107,887) $ (4,831) $(106,420) Included in FFO from Unconsolidated Property Funds in our Consolidated Statements of FFO: Derivative loss $ - $ (1,182) $(13,867) $ (9,274) Gain (loss) from the sale of properties and impairment charges, net $ 683 $(108,218) $(12,720) $(106,914) In the fourth quarter of 2008 we recognized a loss of $108.2 million representing our share of the loss recognized by PEPR from the sale of its 30% ownership interest in PEPF II. We acquired PEPR's 20% interest in PEPF II in December 2008, and PEPR sold its remaining ownership in PEPF II of approximately 10% to third parties in early 2009. (14) The following table presents the components of interest expense as reflected in our Consolidated Statements of Operations (in thousands): Three Months Ended Twelve Months Ended December 31, December 31, ------------------- ------------------- 2009 2008 2009 2008 -------- -------- -------- -------- Gross interest expense $101,314 $117,113 $382,899 $477,933 Amortization of discount, net 16,494 18,451 67,542 63,676 Amortization of deferred loan costs 5,877 3,474 17,069 12,238 -------- -------- -------- -------- Interest expense before capitalization 123,685 139,038 467,510 553,847 Capitalized amounts (16,199) (38,724) (94,205) (168,782) -------- -------- -------- -------- Net interest expense $107,486 $100,314 $373,305 $385,065 ======== ======== ======== ======== Gross interest expense decreased in 2009 from 2008 due to significantly lower debt levels, offset by increases in borrowing rates. The decrease in capitalized amounts is due to less development activity. (15) Included in Foreign Currency Exchange Gains (Losses), Net, for the twelve months ended December 31, 2009 and 2008, are net foreign currency exchange gains and losses, respectively, related to the remeasurement of inter-company loans between the U.S. and our consolidated subsidiaries in Japan and Europe due to the fluctuations in the exchange rates of U.S. dollars to the yen, the euro and pound sterling during the applicable periods. We do not include the gains and losses related to inter-company loans in our calculation of FFO. (16) The operations of the properties held for sale or disposed of to third parties and the aggregate net gains recognized upon their disposition are presented as discontinued operations in our Consolidated Statements of Operations for all periods presented, unless the property was developed under a pre-sale agreement. As discussed in Note 2 above, all of the assets and liabilities associated with our China operations were classified as Assets and Liabilities Held for Sale in our accompanying Consolidated Balance Sheet as of December 31, 2008, as well as one property in Japan that we sold in April 2009. During 2009, other than our China operations, we disposed of land subject to ground leases and 140 properties (aggregating 14.8 million square feet, 3 of which were development properties) to third parties. This includes a portfolio of 90 properties aggregating 9.6 million square feet that were sold to a single venture during the third quarter in which we retained a 5% interest. We continue to manage these properties. During 2008, we disposed of land subject to ground leases and 15 properties to third parties, including 6 development properties. The income (loss) attributable to these properties was as follows (in thousands): Three Months Ended Twelve Months Ended December 31, December 31, ------------------ ------------------- 2009 2008 2009 2008 ------ ------- ------- -------- Rental income $2,544 $34,582 $50,492 $121,685 Rental expenses (567) (13,422) (14,434) (42,058) Depreciation and amortization (487) (9,012) (11,319) (33,661) Other expenses, net - (16,603) (576) (34,917) ------ ------- ------- -------- Income (loss) attributable to disposed properties $1,490 $(4,455) $24,163 $ 11,049 ====== ======= ======= ======== For purposes of our Consolidated Statements of FFO, we do not segregate discontinued operations. In addition, we include the gains from disposition of land parcels and Completed Development Properties (2009) and CDFS properties (2008) in the calculation of FFO, including those classified as discontinued operations. (17) In connection with purchase accounting, we record all of the acquired assets and liabilities at the estimated fair values at the date of acquisition. For our taxable subsidiaries, we recognize the deferred tax liabilities that represent the tax effect of the difference between the tax basis carried over and the fair values at the date of acquisition. As taxable income is generated in these subsidiaries, we recognize a deferred tax benefit in earnings as a result of the reversal of the deferred tax liability previously recorded at the acquisition date and we record current income tax expense representing the entire current income tax liability. In our calculation of FFO, we only include the current income tax expense to the extent the associated income is recognized for financial reporting purposes.

    ProLogis

    CONTACT: Investor Relations, Melissa Marsden, +1-303-567-5622,
    mmarsden@prologis.com, or Media, Krista Shepard, +1-303-567-5907,
    kshepard@prologis.com, both of ProLogis; or Financial Media, Suzanne Dawson of
    Linden Alschuler & Kaplan, Inc, +1-212-329-1420, sdawson@lakpr.com, for
    ProLogis

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




    Maxwell Technologies' Q4 and FY09 Financial Results Press Release, Conference Call and Webcast Set for February 18CEO David Schramm to Present at Piper Jaffray Conference in New York February 23

    SAN DIEGO, Feb. 11 /PRNewswire-FirstCall/ -- Maxwell Technologies, Inc. will issue its financial results news release for the fourth quarter and fiscal year ended December 31, 2009, at 4 p.m. (EST) on February 18, 2010. Management will conduct a conference call and simultaneous webcast to discuss fourth quarter and year-end results and the future outlook one hour later, at 5 p.m. (EST).

    The news release will be distributed by wire and posted simultaneously on the company's website, http://maxwell.investorroom.com/index.php?s=43 at 4 p.m. (EST) on February 18. Anyone wishing to be added to the company's email distribution list for news releases may do so by calling (858) 503-3434.

    The public is invited to listen to the conference call by dialing, toll-free (800) 862-9098 from the U.S. and Canada, or (785) 424-1051 for international callers. The conference call webcast and subsequent archived replay may be accessed via the following link: http://maxwell.investorroom.com/index.php

    David Schramm, Maxwell's president and chief executive officer, will present at the Piper Jaffray Clean Technology & Renewables Conference at 2:30 p.m. on February 23, at the Westin Times Square Hotel in New York. The presentation webcast and subsequent archived replay may be accessed via the following link: http://maxwell.investorroom.com/index.php

    Maxwell is a leading developer and manufacturer of innovative, cost-effective energy storage and power delivery solutions. Our BOOSTCAP® ultracapacitor cells and multi-cell modules provide safe and reliable power solutions for applications in consumer and industrial electronics, transportation and telecommunications. Our CONDIS® high-voltage grading and coupling capacitors help to ensure the safety and reliability of electric utility infrastructure and other applications involving transport, distribution and measurement of high-voltage electrical energy. Our radiation-mitigated microelectronic products include power modules, memory modules and single board computers that incorporate powerful commercial silicon for superior performance and high reliability in aerospace applications. For more information, please visit our website: http://www.maxwell.com/.

    Maxwell Technologies, Inc.

    CONTACT: Michael Sund of Maxwell Technologies Inc., +1-858-503-3233,
    msund@maxwell.com

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




    BorgWarner Posts Strong Fourth Quarter Earnings of $0.45 Per Diluted ShareProvides 2010 Earnings Guidance of $1.40 to $1.70 Per Diluted Share

    AUBURN HILLS, Mich., Feb. 11 /PRNewswire-FirstCall/ -- BorgWarner Inc. today reported fourth quarter U.S. GAAP earnings of $0.45 per diluted share compared with a net loss of $(0.70) per diluted share a year ago on strong sales growth of 28.6%. Positive free cash flow of $79.9 million in the quarter further strengthened the balance sheet.

    Fourth Quarter Highlights: -- Sales were $1,198.3 million, up 28.6% from fourth quarter 2008. -- U.S. GAAP earnings were $0.45 per diluted share. For comparison with other periods, fourth quarter 2009 earnings were $0.42 per diluted share excluding non-recurring items. -- Operating income was $67.3 million, or 5.6% of sales. -- Net cash provided by operating activities was $124.7 million. -- Positive free cash flow (net cash provided by operating activities less capital expenditures, including tooling outlays) of $79.9 million. -- Net debt to capital ratio improved to 17.9%. Full Year Highlights: -- Sales were $3,961.8 million, down 24.7% from 2008. -- U.S. GAAP earnings were $0.23 per diluted share. For comparison with other years, full year 2009 earnings were $0.40 per diluted share excluding non-recurring items. -- Net cash provided by operating activities was $351.0 million.

    Fourth Quarter Performance: "Strong sales growth combined with our lean cost structure drove fourth quarter results," said Timothy Manganello, Chairman and CEO of BorgWarner. "We were able to control costs as volumes improved in our base business. As a result, our operating margin improved substantially to 5.6% in fourth quarter 2009 from 0.5% in fourth quarter 2008, excluding non-recurring items. Furthermore, our earnings performance of $0.42 per diluted share, excluding non-recurring items, in fourth quarter 2009 was a significant improvement from the same period a year ago."

    "We ended the year with a net debt to capital ratio of 17.9% compared with 24.9% at the end of 2008. This balance sheet strengthening is a remarkable accomplishment considering the difficult environment last year."

    2010 Outlook: Today, the company provided sales and earnings guidance for 2010. Sales are expected to grow 15% to 19% in 2010 compared with 2009, while full year earnings are expected to be within a range of $1.40 to $1.70 per diluted share.

    "We are optimistic about 2010, but also cautious as we contemplate the range of possible outcomes around the world," Manganello said. "The recovery that we have seen in North America over the last two quarters is the foundation of our optimism. Based on a number of indicators, we expect production rates reached in the second half of 2009 in North America to extend into 2010. Furthermore, we believe that there may be potential upside to that scenario. We are also excited about our Asian businesses where higher production levels and new program launches in China, India, Korea and Japan are expected to drive growth for our company."

    "Our caution for 2010 is primarily related to Europe where visibility has improved from a year ago but is still limited due to uncertainty surrounding consumer demand, the impact of expiring government-sponsored incentive programs and other market dynamics."

    Financial Results: Sales were $1,198.3 million in fourth quarter 2009, up 28.6% from $931.5 million in fourth quarter 2008. Net earnings in the quarter were $52.7 million, or $0.45 per diluted share, compared with a net loss of $(81.4) million, or $(0.70) per diluted share in fourth quarter 2008. Fourth quarter 2009 included non-recurring items of $0.03 per diluted share. Fourth quarter 2008 included net non-recurring items of $(0.70) per diluted share. These items are listed in a table below as reconciliations of non-U.S. GAAP measures, which are provided by the company for comparison with other results, and the most directly comparable U.S. GAAP measures. The impact of foreign currencies in fourth quarter 2009, primarily the Euro, increased sales by $62.5 million, while the impact on net earnings was negligible.

    Full-year 2009 sales were $3,961.8 million, down 24.7% from sales of $5,263.9 million in 2008. Full-year 2009 net earnings were $27.0 million, or $0.23 per diluted share, compared with a net loss of $(35.6) million, or $(0.31) per diluted share in 2008. Full-year 2009 net earnings included net non-recurring items of $(0.17) per diluted share while full-year 2008 included net non-recurring items of $(2.38) per diluted share. These items are listed in a table below as reconciliations of non-U.S. GAAP measures, which are provided by the company for comparison with other results, and the most directly comparable U.S. GAAP measures. The impact of foreign currencies in full-year 2009, primarily the Euro, lowered sales by $(169.2) million and lowered net earnings by $(3.5) million or $(0.03) per diluted share.

    The following table reconciles the company's non-U.S. GAAP measures included in the press release, which are provided for comparison with other results, and the most directly comparable U.S. GAAP measures:

    Net earnings or (loss) per diluted share Fourth Quarter Full Year -------------- --------- 2009 2008 2009 2008 ---- ---- ---- ---- Non - U.S. GAAP $0.42 $0.00 $0.40 $2.07 Reconciliations: Restructuring activities (0.56) (0.29) (0.72) Goodwill impairment charge (0.09) (1.35) Tax valuation allowance 0.03 0.03 (0.12) Tax rate adjustment 0.09 0.02 BERU purchase accounting (0.04) Interest rate derivative agreements (0.03) Topic 805, Business Combinations, adoption (0.03) Change in retiree obligations related to Muncie closure 0.15 (0.03) Warranty charge (0.14) (0.14) ---------------- ---------------- U.S. GAAP $0.45 $(0.70) $0.23 $(0.31) ---------------- ----------------

    Net cash provided by operating activities was $351.0 million in 2009 compared with $400.8 million in 2008. Investments in capital expenditures, including tooling outlays, totaled $172.0 million in 2009, compared with $369.7 million in 2008. Balance sheet debt increased by $62.0 million at the end of 2009 compared with the end of 2008 primarily due to the net impact of the issuance of $373.8 million in convertible senior notes, the retirement of $136.7 million in senior notes and payments related to other short term debt obligations. Cash on hand increased by $254.0 million during the year. The ratio of balance sheet debt net of cash to capital was 17.9% at the end of 2009 compared with 24.9% at the end of 2008.

    Engine Group Results: Engine segment net sales were $853.0 million in fourth quarter 2009, up 25.4% from $680.3 million in the prior year's quarter as demand for turbochargers and engine timing systems outpaced global production volume growth. Excluding the impact of currency, sales were up approximately 18%. Segment earnings before interest and income taxes were $83.3 million.

    For the full year, 2009 sales were $2,883.2 million, down 25.3% from $3,861.5 million in the prior year. Excluding the impact of currency, sales were down approximately 22%. Segment earnings before interest and income taxes were $219.8 million.

    Drivetrain Group Results: Drivetrain segment net sales were $349.7 million in fourth quarter 2009, up 37.1% from $255.0 million in the prior year's quarter. Excluding the impact of currency, sales were up approximately 33%. Sharply higher sales of transmission components and torque management devices in Europe, Asia and the U.S. boosted results. Segment earnings before interest and income taxes were $20.5 million.

    For the full year, 2009 sales were $1,093.5 million, down 23.3% from $1,426.4 million in the prior year. Excluding the impact of currency, sales were down approximately 20%. Segment loss before interest and income taxes was $(13.5) million.

    Recent Highlights: The following announcements were made during the last three months:

    -- Ford selected BorgWarner's leading gasoline turbocharger technology for Ford's new four-cylinder EcoBoost engine, scheduled to make its global debut early in 2010. The direct-injected 1.6-liter and 2.0-liter gasoline engines combine turbocharging and fuel injection technology to deliver greater fuel economy. As previously announced, BorgWarner will also supply turbochargers for rear-wheel drive trucks featuring Ford's 3.5-liter V6 EcoBoost engine. Ford expects up to 90% of its nameplates sold in North America will be available with downsized direct-injected turbocharged gasoline engines by 2013. -- The company announced that it expected $1.8 billion of net new business for 2010 through 2012, driving a growth rate that exceeds the overall auto industry. Increasing demand for the company's efficient and environmentally friendly technologies, such as gasoline and diesel turbochargers and dual-clutch transmissions, has validated BorgWarner's strategic focus on advanced technologies that reduce emissions, increase fuel economy and improve performance. Over the three-year period, BorgWarner expects to launch 80% of its new programs in Asia and Europe. -- The company supplies turbochargers for the Opel 1.6-liter compressed natural gas (CNG) engine as well as the VW 1.4-liter TSI EcoFuel engine, the world's first direct-injection turbocharged engine modified for CNG operation. Both engines achieve 150 horsepower with significant fuel economy and lower emissions. -- BorgWarner will supply its advanced engine and drivetrain technologies for the Hyundai Tucson and ix35, including: chain timing systems for the 2.0- and 2.4-liter gasoline engines; collated friction packs and roller one-way clutch assemblies for the new generation six-speed automatic transmission; and glow plugs for the 2.0-liter diesel engine. -- BorgWarner was selected by Chrysler Group LLC to supply its patented Torque-On-Demand® (TOD®) and Part-Time transfer cases on all four-wheel drive Ram trucks. This includes all four-wheel drive RAM 1500 and 2500/3500 pickups.

    At 9:30 a.m. ET today, a brief conference call concerning fourth quarter and full year results will be webcast at: http://www.borgwarner.com/invest/webcasts.shtml.

    Auburn Hills, Michigan-based BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The FORTUNE 500 company operates manufacturing and technical facilities in 59 locations in 18 countries. Customers include VW/Audi, Ford, Toyota, Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, John Deere, PSA, and MAN. The Internet address for BorgWarner is: http://www.borgwarner.com/.

    Financial Tables Follow

    Statements contained in this news release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current expectations, estimates and projections. Words such as "outlook", "expects," "anticipates," "intends," "plans," "believes," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. Such risks and uncertainties include: fluctuations in domestic or foreign vehicle production, the continued use of outside suppliers, fluctuations in demand for vehicles containing our products, changes in general economic conditions, and other risks detailed in our filings with the Securities and Exchange Commission, including the Risk Factors, identified in our most recently filed Annual Report on Form 10-K. We do not undertake any obligation to update any forward-looking statements.

    BorgWarner Inc. Condensed Consolidated Statements of Operations (Unaudited) (millions of dollars, except share and per share data) Three Months Ended Twelve Months Ended December 31, December 31, 2009 2008 2009 2008 --------- ------- -------- -------- Net sales $1,198.3 $931.5 $3,961.8 $5,263.9 Cost of sales 985.1 857.6 3,401.0 4,425.4 --------- ------- -------- -------- Gross profit 213.2 73.9 560.8 838.5 Selling, general and administrative expenses 144.4 92.5 459.8 542.9 Restructuring expense - 102.5 50.3 127.5 Goodwill impairment charge - 10.0 - 156.8 Other (income) expense 1.5 1.2 (0.1) 4.0 --------- ------- -------- -------- Operating income (loss) 67.3 (132.3) 50.8 7.3 Equity in affiliates' earnings, net of tax (10.3) (8.2) (21.8) (38.4) Interest income (0.8) (0.7) (2.5) (7.1) Interest expense and finance charges 16.1 10.3 57.2 38.8 --------- ------- -------- -------- Earnings (loss) before income taxes and noncontrolling interest 62.3 (133.7) 17.9 14.0 Provision (benefit) for income taxes 5.7 (54.4) (18.5) 33.3 --------- ------- -------- -------- Net earnings (loss) 56.6 (79.3) 36.4 (19.3) Net earnings attributable to the noncontrolling interest, net of tax 3.9 2.1 9.4 16.3 --------- ------- -------- -------- Net earnings (loss) attributable to BorgWarner Inc. $52.7 $(81.4) $27.0 $(35.6) ========= ======= ======== ======== Earnings (loss) per share - diluted $0.45 $(0.70) $0.23 $(0.31) Weighted average shares outstanding (millions) - Diluted 117.6 115.6 116.9 116.0 Supplemental Information (Unaudited) (millions of dollars) Three Months Ended Twelve Months Ended December 31, December 31, 2009 2008 2009 2008 ------- ------ ------- ------- Capital expenditures, including tooling outlays $44.8 $104.1 $172.0 $369.7 ======= ====== ======= ======= Depreciation and amortization: Fixed assets and tooling $61.7 $57.4 $234.6 $259.7 Other 7.2 6.0 26.3 27.1 ------- ------ ------- ------- $68.9 $63.4 $260.9 $286.8 ======= ====== ======= ======= BorgWarner Inc. Net Sales by Reporting Segment (Unaudited) (millions of dollars) Three Months Ended Twelve Months Ended December 31, December 31, 2009 2008 2009 2008 -------- ------ -------- -------- Engine $853.0 $680.3 $2,883.2 $3,861.5 Drivetrain 349.7 255.0 1,093.5 1,426.4 Inter-segment eliminations (4.4) (3.8) (14.9) (24.0) -------- ------ -------- -------- Net Sales $1,198.3 $931.5 $3,961.8 $5,263.9 ======== ====== ======== ======== Segment Earnings (Loss) Before Interest and Income Taxes (Unaudited) (millions of dollars) Three Months Ended Twelve Months Ended December 31, December 31, 2009 2008 2009 2008 ------ ------ ------ ------ Engine $83.3 $36.5 $219.8 $394.9 Drivetrain 20.5 (42.1) (13.5) (4.9) ------ ------ ------ ------ Segment earnings before interest and income taxes ("Segment EBIT") 103.8 (5.6) 206.3 390.0 Muncie closure retiree obligation net gain - - 27.9 - Corporate, including equity in affiliates' earnings and stock-based compensation (26.2) (6.0) (111.3) (60.0) ------ ------ ------ ------ Consolidated earnings before interest and taxes ("EBIT") 77.6 (11.6) 122.9 330.0 Restructuring expense - 102.5 50.3 127.5 Goodwill impairment charge - 10.0 - 156.8 Interest income (0.8) (0.7) (2.5) (7.1) Interest expense and finance charges 16.1 10.3 57.2 38.8 ------ ------ ------ ------ Earnings (loss) before income taxes and noncontrolling interest 62.3 (133.7) 17.9 14.0 Provision (benefit) for income taxes 5.7 (54.4) (18.5) 33.3 ------ ------ ------ ------ Net earnings (loss) 56.6 (79.3) 36.4 (19.3) Net earnings attributable to the noncontrolling interest, net of tax 3.9 2.1 9.4 16.3 ------ ------ ------ ------ Net earnings (loss) attributable to BorgWarner Inc. $52.7 $(81.4) $27.0 $(35.6) ====== ====== ====== ====== BorgWarner Inc. Condensed Consolidated Balance Sheets (Unaudited) (millions of dollars) December 31, 2009 December 31, 2008 ----------------- ----------------- Assets Cash $357.4 $103.4 Receivables, net 732.0 607.1 Inventories, net 314.3 451.2 Other current assets 148.1 146.5 -------- -------- Total current assets 1,551.8 1,308.2 Property, plant and equipment, net 1,490.3 1,586.2 Other non-current assets 1,769.3 1,749.6 -------- -------- Total assets $4,811.4 $4,644.0 ======== ======== Liabilities and Stockholders' Equity Notes payable $69.1 $183.8 Current portion of long-term debt - 136.9 Accounts payable and accrued expenses 977.1 923.0 Income taxes payable - 6.3 -------- -------- Total current liabilities 1,046.2 1,250.0 Long-term debt 773.2 459.6 Other non-current liabilities 769.3 896.9 Total BorgWarner Inc. stockholders' equity 2,185.3 2,006.0 Noncontrolling interest 37.4 31.5 -------- -------- Total stockholders' equity 2,222.7 2,037.5 -------- -------- Total liabilities and stockholders' equity $4,811.4 $4,644.0 ======== ======== BorgWarner Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (millions of dollars) Twelve Months Ended December 31, 2009 2008 ------ ------ Operating Net earnings (loss) $36.4 $(19.3) Non-cash charges (credits) to operations: Depreciation and tooling amortization 260.9 286.8 Convertible bond premium amortization 12.7 - Restructuring expense, net of cash paid 38.4 115.9 Goodwill impairment charge - 156.8 Deferred income tax benefit (57.7) (78.3) Other non-cash items 43.3 33.2 ------ ------ Net earnings (loss) adjusted for non-cash charges to operations 334.0 495.1 Changes in assets and liabilities 17.0 (94.3) ------ ------ Net cash provided by operating activities 351.0 400.8 Investing Capital expenditures, including tooling outlays (172.0) (369.7) Net proceeds from asset disposals 23.1 5.7 Payments for business acquired (7.5) - Net proceeds from sale of business 1.6 5.5 Proceeds from sales of marketable securities - 14.6 ------ ------ Net cash used in investing activities (154.8) (343.9) Financing Net change in notes payable (114.7) 114.8 Net change in long-term debt 217.1 (7.3) Payments for noncontrolling interest acquired (48.5) (141.2) Payment for purchase of bond hedge, net of proceeds from warrant issuance (25.2) - Payment for purchase of treasury stock - (55.9) Proceeds from interest rate swap termination 30.0 - Proceeds from stock options exercised, including the tax benefit 8.7 17.1 Dividends paid to BorgWarner stockholders (13.8) (51.1) Dividends paid to noncontrolling stockholders (8.8) (12.5) ------ ------ Net cash provided by (used in) financing activities 44.8 (136.1) Effect of exchange rate changes on cash 13.0 (5.9) ------ ------ Net increase (decrease) in cash 254.0 (85.1) Cash at beginning of year 103.4 188.5 ------ ------ Cash at end of year $357.4 $103.4 ====== ======

    BorgWarner Inc.

    CONTACT: Ken Lamb of BorgWarner Inc., +1-248-754-0884

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




    Gulf Resources Engages BDO Limited as New Independent Auditor

    SHANDONG, China and NEW YORK, Feb. 11 /PRNewswire-Asia-FirstCall/ -- Gulf Resources, Inc. ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced that it has engaged BDO Limited, the Hong Kong-based member firm of the BDO International network, as its new independent auditor, replacing Morison Cogen LLP. The change is effective as of February 10, 2010.

    The decision to change the Company's independent auditor was authorized and approved by Gulf Resources' Audit Committee. Gulf Resources had no disagreements with Morison Cogen LLP from the time of the initial engagement to its dismissal, including the Company's most recently reported fiscal year and the subsequent interim period, on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if they had not been resolved to Morison Cogen LLP's satisfaction, would have caused them to make reference to the disagreements in their reports on the Company's financial statements.

    "We look forward to working with our new independent auditor BDO Limited in the future," said Mr. Xiaobin Liu, Chief Executive Officer of Gulf Resources. "Cooperating with a Big 5 accounting firm signifies a long-term commitment to being a public company and to our shareholders. Meanwhile, we want to thank Morison Cogen LLP, which provided high-quality professional services to us for the past three years."

    About Gulf Resources, Inc.

    Gulf Resources, Inc. operates through two wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC") and Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"). The Company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the Company manufactures chemical products utilized in a variety of applications, including oil & gas field explorations and as papermaking chemical agents. For more information about the Company, please visit http://www.gulfresourcesinc.cn/ .

    Safe Harbor Statement

    This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the availability of funds and working capital to finance its activities; the actions and initiatives of current and potential competitors; the Company's ability to introduce new products; market acceptance of new products; general economic and business conditions; the ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

    For more information, please contact: Gulf Resources, Inc. David Wang, VP of Finance Email: gfre.2008@vip.163.com Helen Xu Email: beishengrong@vip.163.com Web: http://www.gulfresourcesinc.cn/ CCG Investor Relations Inc. Linda Salo, Senior Financial Writer Tel: +1-646-922-0894 Email: linda.salo@ccgir.com Crocker Coulson, President Tel: +1-646-213-1915 (New York) Email: crocker.coulson@ccgir.com Web: http://www.ccgirasia.com/

    Gulf Resources, Inc.

    CONTACT: David Wang, VP of Finance, gfre.2008@vip.163.com, or Helen Xu,
    beishengrong@vip.163.com, both of Gulf Resources, Inc.; or Crocker Coulson,
    President, +1-646-213-1915, crocker.coulson@ccgir.com, or Ms. Linda Salo,
    Senior Financial Writer, +1-646-922-0894, linda.salo@ccgir.com, both of CCG
    Investor Relations

    Web site: http://www.gulfresourcesinc.cn/




    Emerald Dairy Makes Offer to Exchange Outstanding Warrants for Warrants Exercisable at Reduced Prices

    RESTON, Va., Feb. 11 /PRNewswire-Asia-FirstCall/ -- Emerald Dairy Inc., a Nevada corporation (the "Company") (BULLETIN BOARD: EMDY) , announced today that it has commenced an offer to its existing warrant holders, that acquired their warrants in connection with Company's October 2007 private offerings, to exchange their warrants for warrants with amended terms. The offer to exchange the warrants is scheduled to expire on March 17, 2010.

    Amended terms, include the following: -- With respect to the 373,344 warrants having an exercise price of $0.94 per share, a holder accepting the offer may exchange some or all of the warrants for amended warrants exercisable at $0.75 per share (a 20% discount); -- With respect to the 1,333,333 warrants having an exercise price of $1.50 per share, a holder accepting the offer may exchange some or all of the warrants for amended warrants exercisable at $1.20 per share (a 20% discount); -- With respect to the 235,583 warrants having an exercise price of $1.63 per share, a holder accepting the offer may exchange some or all of the warrants for amended warrants exercisable at $1.30 per share (a 20% discount); -- With respect to the 906,190 warrants having an exercise price of $2.04 per share, a holder accepting the offer may exchange some or all of the warrants for amended warrants exercisable at $1.63 per share (a 20% discount); and -- With respect to the 2,526,208 warrants having an exercise price of $3.26 per share, a holder accepting the offer may exchange some or all of the warrants for amended warrants exercisable at $1.63 per share (a 50% discount).

    In addition to the lower exercise prices, the amended warrants have shortened exercise periods, are exercisable even if the exercise will cause a warrant holder to own more than 9.9% of the Company's common equity, and must be exercised for cash.

    The purpose of this offer is to raise additional capital by encouraging participating warrant holders to exercise the amended warrants they receive in connection with the offer, by significantly reducing the exercise prices and exercise periods of the amended warrants. The Company expects to apply any proceeds received in connection with such exercise toward the cost of completing the equipping of the first production line in the Company's new milk powder production facility located in Hailun City, Heilongjiang Province, People's Republic of China ("PRC").

    Warrant holders with questions or concerns regarding the offer to exchange warrants should contact the exchange agent for the offer, Computershare Inc., at 800-546-5141.

    About Emerald Dairy Inc.:

    Through its wholly-owned operating subsidiaries, Emerald Dairy Inc. is a producer and distributor of infant and children's formula, milk powder and soybean products in the PRC. The Company's products are sold under two brand names -- "Xing An Ling" and "Yi Bai."

    Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.

    Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.

    For more information, please contact: In the U.S.: Stanley Wunderlich, CEO Consulting for Strategic Growth 1 Tel: +1-800-625-2236 Fax: +1-646-205-7771 Email: swunderlich@cfsg1.com

    Emerald Dairy Inc.

    CONTACT: In the U.S.: Stanley Wunderlich, CEO, +1-800-625-2236, fax
    +1-646-205-7771, swunderlich@cfsg1.com, of Consulting for Strategic Growth 1




    Rollins Inc. to Participate in the 12th Annual Credit Suisse Global Services Conference

    ATLANTA, Feb. 11 /PRNewswire-FirstCall/ -- Rollins, Inc. announced today that the company will participate in the 12th Annual Credit Suisse Global Services Conference, to be held Monday, February 22, 2010 at the Arizona Biltmore Resort & Spa, Phoenix, AZ.

    Harry Cynkus, Vice President, Chief Financial Officer and Treasurer will make a presentation on Monday, February 22, 2010 at 8:30 a.m. The presentation will provide a corporate overview, highlight the services Rollins provides and discuss the most recent published financial results. A copy of this presentation will be available on our web site at http://www.rollins.com/ on the date of the event.

    About Rollins

    Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, PCO Services, HomeTeam Pest Defense, Western Pest Services, The Industrial Fumigant Company and Crane Pest Control, the Company provides essential pest control services and protection against termite damage, rodents and insects to over 2 million customers in the United States, Canada, Mexico, Central America, the Caribbean, the Middle East, Asia, the Mediterranean and Europe from over 500 locations. You can learn more about our subsidiaries by visiting our Web sites at http://www.orkin.com/, http://www.pestdefense.com/, http://www.westernpest.com/, http://www.orkincanada.ca/, http://www.indfumco.com/, http://www.cranepestcontrol.com/ and http://www.rollins.com/. You can also find this and other news releases at http://www.rollins.com/ by accessing the news releases button.

    For Further Information Contact

    Harry J. Cynkus (404) 888-2922

    Rollins, Inc.

    CONTACT: Harry J. Cynkus, +1-404-888-2922

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




    Sears Reaches Agreement With Schumacher Electric to Sell DieHard(R) Brand ProductsDieHard Power Accessories to be Available at Additional Retail Outlets

    HOFFMAN ESTATES, Ill., Feb. 11 /PRNewswire-FirstCall/ -- Sears Brands Management Corporation announced a trademark license agreement with Schumacher Electric Corporation today which will enable DieHard-branded power accessories to be sold to retailers in the U.S., Puerto Rico and Mexico.

    "DieHard is the top selling brand of power accessories in the U.S.," said Guenther Trieb, senior vice president and president of brands. "We're excited that this agreement will allow our customers the opportunity to purchase DieHard power accessories at additional retail outlets."

    The DieHard products to be sold as part of the agreement include battery chargers, jump starters, and power inverters. In a 2009 Battery Brand Tracker Survey, DieHard products were selected by an overwhelming margin as "most trusted," "dependable" and "performs in extreme conditions."

    "The DieHard name is the most trusted in the automotive battery industry, and the brand is instantly recognized by millions of consumers," said Don Schumacher, CEO of Schumacher Electric. "Through this license agreement, we look forward to expanding the reach of the DieHard brand and the availability of DieHard products through retail channels."

    In related news, DieHard is serving as the primary sponsor of the Don Schumacher Racing Dodge Funny Car driven by Matt Hagan in the 2010 NHRA Full Throttle Drag Racing Series. The 23-event season begins in Pomona, Calif., Feb. 11-14. Hagan is in his second season with Don Schumacher Racing.

    DieHard has a new home on the Web at the relaunched DieHard.com and a mobile companion at mobile.diehard.com. The sites include a help center, battery selector, maintenance guide and a series of videos documenting DieHard's performance inside the DieHard Torture Labs.

    About Sears Holdings Corporation

    Sears Holdings Corporation is the nation's fourth largest broadline retailer with approximately 3,900 full-line and specialty retail stores in the United States and Canada. Sears Holdings is the leading home appliance retailer as well as a leader in tools, lawn and garden, home electronics and automotive repair and maintenance. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. It also has the Country Living collection, which is offered exclusively by Sears and Kmart. We are the nation's largest provider of home services, with more than 12 million service calls made annually. Sears Holdings Corporation operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation. For more information, visit Sears Holdings' website at http://www.searsholdings.com/.

    About the DieHard brand

    Introduced in 1967, Sears designed the DieHard to produce 35 percent more usable starting power than other similar batteries. Featuring a revolutionary tough, thin-walled case of translucent polypropylene plastic, which was 50 percent thinner than conventional black rubber-type battery enclosures, the design's extra room meant bigger plates, more acid and extra starting power. Consumers consistently rate DieHard as "most trusted," "dependable," "performs in extreme conditions" by overwhelming margins, according to a 2009 Battery Brand Tracker Survey.

    About Schumacher Electric

    Established in 1947, Schumacher Electric Corporation has been leading change and driving performance to exceed their customers' expectation. Engineered patent pending technologies and award winning marketing have paved the way for Schumacher to be the battery accessories (battery chargers, portable power sources, 12 volt accessories, etc.) manufacturer of choice. Schumacher internationally distributes to retailers, distributors, OE manufacturers and industrial markets. Schumacher's world headquarters is located in Mount Prospect, Illinois with manufacturing plants in China and Mexico. For more on Schumacher Electric, visit http://www.batterychargers.com/.

    Sears Holdings Corporation

    CONTACT: Larry Costello of Sears Holdings Corp., +1-847-286-9036,
    Larry.Costello@searshc.com; or Judy Stropus of Schumacher Electric,
    +1-203-438-0501, jstropus@earthlink.net

    Web Site: http://www.searsholdings.com/
    http://www.batterychargers.com/

    Company News On-Call: http://www.prnewswire.com/comp/923204.html




    Shoppers Bring in Spring With the Newest Accessory Trends and Essentials From Payless ShoeSource(R)

    TOPEKA, Kan., Feb. 11 /PRNewswire/ -- Sunnier skies and rising temperatures are cause for celebration, especially for fashion fans eagerly anticipating the season's latest trends. Payless ShoeSource is making it possible for consumers to revamp their spring wardrobes without putting a wintery freeze on their budgets. The retailer today unveiled a spring line of fashionable footwear and accessories, allowing shoppers to sport the most current styles at price points that make it possible for everyone to partake in the fun.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20060627/CGTU040LOGO-b)

    Payless offers up-to-the minute trends for shoppers seeking to grab the hottest looks - peep-toe pumps, linen wedges, gladiator-inspired heels, and huarache-style strappy flats, among others -- all at prices averaging under $20 an item.

    "This spring our collection includes all the latest trends and our designer labels offer hot-off-the-runway looks with such unique design inspirations as old Venice Beach, luxurious Mediterranean travel, and the modern edginess of a French all-girl rock band," said LuAnn Via, president and CEO of Payless ShoeSource. "We continue to lead the movement to democratize fashion and design in footwear and accessories for all to enjoy."

    Payless' spring offering includes its popular Designer Collections, exclusive labels featuring original designs by New York fashion designers including Lela Rose for Payless(TM), Christian Siriano for Payless(TM) and alice + olivia for Payless(TM) by Stacey Bendet, all unveiled on the runways at New York Fashion Week last Sept.

    The spring '10 Lela Rose for Payless collection - the designer's 11th line for the retailer - is designed to coordinate with her Ready To Wear (RTW) apparel, which was inspired by old Venice Beach surf and scuba wear and the color palette of artist Alex Katz. The shoe collection includes four shoe styles, two handbag styles, and a clutch, all featuring her signature use of fabric and mixed materials coupled with Katz-splashes of color including bright navy, sea grass and fuchsia. The unique silhouettes include sculpted wedge heels, Mary Jane uppers, criss-cross straps, and peep-toe details.

    Fashion designer Christian Siriano, well-known as the winner of Project Runway's Season Four, introduces his third collection for Payless this spring. His RTW spring collection is inspired by the notion of luxurious Mediterranean travel and features rich hues of oceanic blue and volcanic orange that evoke a coastal sunset. The spring Christian Siriano for Payless line includes designs inspired by the runway looks, including a satin pump, a black patent front-zip heel, a peep-toe flat, a black patent ankle boot with chop-out detail, an oxford-style sneaker, as well as an accompanying tote and clutch. Many of the shoes and handbags feature a unique printed fabric used heavily in Siriano's apparel collection, which was created by using an aerial photograph of the intricate Italian coast line that has been saturated with volcanic and oceanic colors.

    "Each season I start my shoe designs with my RTW collection in mind and the idea of creating amazing dramatic looks for a show," said Siriano. "I love working with the Payless team and each collection is designed with drama for the runway and then together we create fabulous versions so women can be chic, comfortable and fashionable in these shoes. I am all about drama on the runway and wearable designs for today's women."

    In response to consumer demand, Payless is also making a small capsule collection of Siriano's "direct-from-the-runway" styles available at very select stores and on Payless.com. The limited-edition grouping will be available beginning early March and include three styles featuring a unique platform sole and "bull-horn" heel: an ankle cuff pump, a Mary Jane pump, and a point-toe pump. The use of mottled prints and animal hide textures combined with raw metal sequins and details transform each style into an impactful work of wearable art.

    Stacey Bendet's alice + olivia for Payless spring '10 RTW collection is inspired by the Plastiscines, a French all-girl rock band. The band's mix of indie rock and Parisian chic is evident in the shoes, which evoke both a whimsical and sleek sensibility. This is Bendet's sixth line for Payless and includes such silhouettes as a platform pump, a tall slouchy boot, a gladiator-style flat sandal, a black patent ballet flat and a sequined ballet flat. Details such as the use of a "sandalized" upper design combined with a tall boot and side-cut-out designs portray a strong interplay of structure and sexiness.

    The Payless overall spring line incorporates the season's hottest colors, silhouettes, and details. Softer blues, pinks, nudes and blush tones are prevalent along with pops of yellow and deeper fuchsias, greens, and dark blues. Shoppers can scoop up t-strap platform heels, along with wedges featuring fresh, sculptural heel shapes. Flat sandals will feature straps galore, mirroring both vintage huarache styles and gladiator- and t-strap inspirations. Chop-out details will be present in both heels and flats, along with delicate stud and stone ornamentation. From a preppy boat shoes to an oxford jazz flat, the spring line will provide options for a wide variety of shoe personalities.

    The Payless spring collection for women is currently available in stores nationwide. The line boasts dozens of fresh new footwear styles and coordinating handbags with more fashions arriving every few weeks into the summer season.

    The latest looks are available for men, boys and girls as well, offering up affordable on-trend family options for the coming spring holiday.

    About Payless Designer Collections

    Payless is on a mission to democratize fashion and design in footwear and accessories. The Payless Designer Collections - seasonal lines of original footwear and handbags created by New York fashion designers and hot off the runway - are a key piece of that strategy.

    Payless designer labels are an expanding group that includes Lela Rose for Payless and special occasion line, Unforgettable Moments by Lela Rose, as well as alice + olivia for Payless by Stacey Bendet and Christian Siriano for Payless. This select group of fashion designers create designer footwear and accessory collections for Payless featuring the latest runway looks. Each collection is unique and reflective of the designer's signature style. Payless' designer collections are among the most broadly distributed designer footwear lines available in the United States today. For more information about Payless at New York Fashion Week and the company's Guest Designers, please see paylessontherunway.com.

    About Payless & Collective Brands, Inc.

    Payless ShoeSource, Inc., a unit of Collective Brands, Inc., is the largest specialty family footwear retailer in the Western Hemisphere and is dedicated to democratizing fashion and design in footwear and accessories and inspiring fun, fashion possibilities for the family at a great value. As of the end of third quarter 2009, the company operated nearly 4,500 stores. In addition, customers can buy shoes over the Internet through Payless.com® at http://www.payless.com/.

    Collective Brands, Inc. is a leader in bringing compelling lifestyle, fashion and performance brands for footwear and related accessories to consumers worldwide. The company operates three strategic units covering a powerful brand portfolio, as well as multiple price points and selling channels including retail, wholesale, ecommerce and licensing. Collective Brands, Inc. includes Payless ShoeSource, focused on democratizing fashion and design in footwear and accessories through its nearly 4,500-store retail chain, with its brands Airwalk®, Dexter®, Champion®, Zoe & Zac(TM), the first-ever affordable green footwear brand, and designer collections Lela Rose for Payless, Unforgettable Moments by Lela Rose, alice + olivia for Payless, Christian Siriano for Payless and STLP x Airwalk, among others; Collective Brands Performance + Lifestyle Group, focused on lifestyle and performance branded footwear and high-quality children's footwear sold primarily through wholesaling, with its brands including Stride Rite®, Keds®, Sperry Top-Sider®, Robeez®, and Saucony®, among others; and Collective Licensing International, the brand development, management and global licensing unit, with such youth lifestyle brands as Airwalk®, Vision Street Wear®, Sims®, Lamar® and LTD®. Information about, and links for shopping on, each of the Collective Brand's units can be found at http://www.collectivebrands.com/.

    Photo: http://www.newscom.com/cgi-bin/prnh/20060627/CGTU040LOGO-b
    AP Archive: http://photoarchive.ap.org/
    PRN Photo Desk, photodesk@prnewswire.com Payless ShoeSource

    CONTACT: Liz Lankau, +1-212-798-9722, Elizabeth.Lankau@cohnwolfe.com,
    for Payless ShoeSource

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




    ProfitStars(R) Reintroduces Alogent Brand- Product Names Reinforce Company's Heritage as a Premier Provider of Deposit Automation Solutions for Large Financial Institutions -

    MONETT, Mo., Feb. 11 /PRNewswire-FirstCall/ -- Jack Henry & Associates, Inc. , a leading provider of integrated technology solutions and data processing services for financial institutions, today announced the rebranding of its Sierra, Sierra Xpedite, and Sierra Xchange product lines as Alogent Deposit Automation Solutions. These solutions were developed by the Alogent Corporation, which was acquired by Goldleaf Financial Solutions, Inc. in 2008. Goldleaf was acquired by Jack Henry & Associates in 2009 and its products and services were added to the best-of-breed solutions now offered by its ProfitStars division. The rebranding initiative is intended to capitalize on the lasting market awareness of the Alogent brand name and reinforce the company's heritage as a premier provider of branch deposit automation and remote deposit solutions for large financial institutions.

    According to Bob Meara, a senior analyst with Celent, "Alogent Corporation was an early pioneer and a leader in the branch image capture and remote deposit space. Reintroducing the Alogent brand makes a lot of sense for ProfitStars as it strives to build on this foundation and emphasize its commitment to the Alogent solutions."

    The newly rebranded Alogent Deposit Automation Solutions consist of Alogent Front Counter and Alogent Back Counter for teller, branch and regional image capture, and Alogent Commercial Remote Deposit, Alogent Retail Remote Deposit, and Alogent Payment Web Services which provide a complete remote deposit offering for the full spectrum of financial institution clients. In addition, the Alogent Payments Gateway supports the collection of transactions from point of presentment applications, transaction processing and routing to internal bank systems, image archives, and other endpoints.

    According to David Foss, president of ProfitStars, "We are excited to carry on the Alogent name for these market-leading deposit automation solutions and believe this change will help us promote our strategy as a best-of-breed provider of solutions for financial institutions of all asset sizes and charters. We consider the Alogent solutions to be a strategic area of focus for our company especially since they are uniquely suited to meet the needs of large financial institutions and international markets. We look forward to delivering continued success with these products for our clients, partners, and shareholders."

    The new branding will appear in the company's advertising, Web sites, sales support materials, and upcoming product releases. It will also be emphasized through upcoming financial services events, webinars, and other customer and prospect communications.

    About ProfitStars

    ProfitStars, a division of Jack Henry & Associates, Inc., provides best-of-breed solutions that improve the performance of financial institutions of all asset sizes and charters, and diverse corporate entities. These solutions facilitate revenue and growth, risk mitigation and control, and cost control; and complement virtually any core information processing platform. Additional information is available at http://www.profitstars.com/.

    About Jack Henry & Associates, Inc.

    Jack Henry & Associates, Inc. is a leading provider of computer systems and ATM/debit card/ACH transaction processing services primarily for financial services organizations. Its technology solutions serve more than 11,800 customers nationwide, and are marketed and supported through three primary brands. Jack Henry Banking(TM) supports banks ranging from de novo to mid-tier institutions with information and transaction processing solutions. Symitar(TM) is the leading provider of information and transaction processing solutions for credit unions of all sizes. ProfitStars provides highly specialized products and services that enable financial institutions of every asset size and charter, and diverse corporate entities to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. Additional information is available at http://www.jackhenry.com/.

    Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Additional information on these and other factors, which could affect the Company's financial results, are included in its Securities and Exchange Commission (SEC) filings on Form 10-K, and potential investors should review these statements. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information.

    Jack Henry & Associates, Inc.

    CONTACT: Analysts, Kevin D. Williams, Chief Financial Officer,
    +1-417-235-6652, or IR, Jon Seegert, Director of Investor Relations,
    +1-417-235-6652, both of Jack Henry & Associates, Inc.

    Web Site: http://www.jackhenry.com/
    http://www.profitstars.com/




    TreeHouse Foods, Inc. Reports Fourth Quarter 2009 Results

    WESTCHESTER, Ill., Feb. 11 /PRNewswire-FirstCall/ --

    HIGHLIGHTS -- Adjusted earnings per share increased 41.8% from last year -- Net sales increased 1.7%; retail sales up 5.1% -- Gross margins increased 320 basis points

    TreeHouse Foods, Inc. today reported significantly higher fourth quarter earnings compared to last year driven by sales growth in its North American Retail Grocery and Food Away From Home businesses and gross margin improvement in all sales channels. Earnings for the quarter were $0.66 per fully-diluted share compared to $0.22 per fully diluted share in the fourth quarter of last year. On an adjusted basis, as described below, fully-diluted earnings per share improved 41.8% to $0.78 compared to $0.55 last year.

    The reported results for the fourth quarter of 2009 included a variety of unusual items that affected the quarterly and full year comparisons. The first item relates to a non-cash charge of $7.6 million, ($0.14 per share) resulting from the impairment of TreeHouse's Nature's Goodness trade name as the Company focuses its private label opportunities in retail baby food. The second item relates to charges of $1.8 million ($0.04 per share) pertaining to acquisition costs relating to the acquisition of Sturm Foods. The third item is the tax benefit of $1.2 million ($0.04 per share) resulting from the acceleration of Canadian tax deductions as a result of the transfer of a portion of our salad dressing production from Canada to the United States. The Company also recognized a $0.02 per share gain on the mark to market adjustment to an interest rate swap agreement and a $0.01 per share gain on the translation of an intercompany note between the United States and Canada. Both of these gains in the fourth quarter of 2009 offset losses that were recorded in prior quarters as the Canadian dollar strengthened in 2009 versus 2008.

    ITEMS AFFECTING DILUTED EPS COMPARABILITY: Three Months Ended Twelve Months Ended December 31 December 31 ----------- ----------- 2009 2008 2009 2008 ---- ---- ---- ---- (unaudited) (unaudited) Diluted EPS from continuing operations as reported $0.66 $0.22 $2.48 $0.91 Non-cash tradename impairment 0.14 0.14 - Acquisition costs 0.04 $0.04 Canadian tax deduction timing benefit (0.04) (0.04) 0.01 Mark to market adjustment on interest rate swap (0.02) 0.14 (0.04) 0.14 (Gain) loss on intercompany note translation (0.01) 0.13 (0.10) 0.21 Plant closing costs and other 0.01 0.01 0.01 0.30 Gain on insurance settlement for fixed assets (0.26) One time factory costs from inventory reduction programs 0.05 0.05 ---- ---- Adjusted diluted EPS $0.78 $0.55 $2.23 $1.62 ===== ===== ===== =====

    Commenting on the results, Sam K. Reed, Chairman and CEO, said, "We finished the year on an excellent note with continued unit sales growth and further improvement in margins. Private label continues to be fueled by both consumer preference for value and our customers' goal to increase profitability. We see strong momentum heading into 2010."

    Adjusted operating earnings before interest, taxes, depreciation, amortization and other non-cash or unusual items (Adjusted EBITDA, reconciled to net income, the most directly comparable GAAP measure, appears on the attached schedule) increased 31.0% to $58.6 million in the quarter compared to $44.8 million in the same period last year. The increase is the result of sales growth and improved gross margins in the quarter.

    Net sales for the fourth quarter totaled $404.8 million compared to $398.1 million last year, an increase of 1.7% (-0.6% excluding currency effects). Retail grocery sales increased 5.1% (2.2% excluding currency) compared to last year's quarter and unit sales increased 3.2%, as the Company's private label offerings continue to realize share gains across nearly all product categories. The Food Away From Home segment sales were up 4.2% (2.0% excluding currency) and unit sales were up 2.1% compared to last year as new products and increased distribution points offset the negative trends in the food away from home marketplace. Sales in the Industrial and Export segment declined 11.9% compared to the prior year due to lower selling prices associated with lower commodity costs and lower unit sales of co-packed products. Total gross margins for the quarter improved by 320 basis points to 23.3% compared to 20.1% last year. The improvement was due to carry over pricing compared to last year, more favorable input costs, and internal efficiencies from productivity gains. The margins improved principally in pickles, non-dairy creamer, salad dressings and soup.

    Selling, distribution, general and administrative expenses were $52.0 million for the quarter, an increase of 18.7% from $43.8 million in the fourth quarter of 2008. The increase was due principally to higher incentive compensation expense reflecting the better than planned performance in 2009, along with $1.8 million in costs associated with the Sturm Foods, Inc. acquisition.

    Other operating expense for the quarter was $7.7 million compared to $1.3 million in expense last year. In the fourth quarter of 2009 the Company wrote down the value associated with its Nature's Goodness trademark as part of its initiative to focus on private label opportunities within retail grocery. Last year, the Company incurred $1.3 million of costs in the quarter primarily for the closure of the Portland, Oregon pickle plant.

    Interest expense in the quarter was $4.3 million compared to $5.8 million last year as lower interest rates and lower debt levels due to strong operating cash flows over the past year contributed to the decline. The Company's fourth quarter effective income tax rate of 27.1% was lower than the full year rate of 33.4%, primarily due to the favorable impact of a Canadian tax rate reduction enacted during the quarter and the aforementioned acceleration of certain Canadian tax deductions. Last year's effective tax rate was very low due to tax deductions associated with last year's mark to market adjustments on both an interest rate swap and an intercompany loan.

    Net income for the quarter totaled $22.1 million compared to $6.8 million last year. Fully-diluted earnings per share from continuing operations for the quarter were $0.66 per share compared to $0.22 per share last year. Excluding unusual items, adjusted earnings per share from continuing operations for the fourth quarter of 2009 were $0.78, compared to last year's fourth quarter adjusted earnings per share of $0.55.

    SEGMENT RESULTS The Company has three reportable segments: 1. North American Retail Grocery - This segment sells private label and branded products to customers within the United States and Canada. These products include pickles, peppers, relishes, condensed and ready to serve soup, broths, gravies, jams, spreads, salad dressings, sauces, nondairy powdered creamer, salsa, aseptic products and baby food. 2. Food Away From Home - This segment sells primarily pickle products, Mexican sauces, aseptic and refrigerated products and sauces to foodservice customers, including restaurant chains and food distribution companies, within the United States and Canada. 3. Industrial and Export - This segment includes the Company's co-pack business and non-dairy powdered creamer sales to industrial customers. These customers either repackage the bulk powder into single serve packages for the foodservice industry or use it as an ingredient in other foodservice applications. Export sales are primarily to industrial customers.

    The direct operating income for the Company's segments is determined by deducting manufacturing costs from net sales and deducting direct operating costs such as freight to customers, commissions, as well as direct selling and marketing expenses. General sales and administrative expenses, including restructuring charges, are not allocated to the business segments as these costs are managed at the corporate level.

    North American Retail Grocery net sales for the fourth quarter increased by 5.1% (2.2% excluding currency) to $265.7 million from $252.8 million during the same quarter last year. Unit sales growth of 3.2% was due to strong growth in salad dressing, salsa, pickles and soup more than offsetting a decline in the infant feeding category. Direct operating income margin improved to 17.2% from 13.9% last year due to mix changes, improvements in pickle margins resulting from last year's rationalization strategy, and savings from procurement programs.

    Food Away From Home segment sales increased 4.2% (2.0% excluding currency) from last year to $72.2 million despite the difficult market for food away from home sales. Volumes in the channel were up 2.1% primarily due to better sales of aseptic cheese sauces. Direct operating income margin was up significantly from 11.3% to 16.5% due to higher gross margins in pickles. The Company has benefitted from an overall improvement in pickle margins due to a very good crop year for cucumbers and a focused effort on production efficiencies.

    Industrial and Export segment sales decreased 11.9% driven primarily by pricing, and unit sales declined 2.6%. Much of this business is industrial sales to customers that primarily utilize non-dairy creamer for applications in the food away from home market, and many of these customers have pass through pricing contracts. Despite the lower sales, direct operating income increased to $9.6 million from $8.9 million last year as productivity improvements more than offset the sales decline.

    STURM FOODS, INC. ACQUISITION

    On December 20, 2009, TreeHouse announced that it would acquire Sturm Foods for a purchase price of approximately $660 million in cash, subject to a final working capital adjustment. With over $340 million in revenue, Sturm is the leading manufacturer of private label sugar free drink mixes and hot cereals in the United States. The acquisition of Sturm will add two new large categories to our dry grocery portfolio. As previously disclosed, the Company intends to finance the transaction through a combination of approximately $400 million in new debt issuance, approximately $100 million in equity stock issuance and the balance funded from borrowings under TreeHouse's existing revolving credit facility.

    The closing of the transaction is subject to customary closing conditions and is expected to occur in the first quarter of 2010.

    GUIDANCE FOR 2010

    TreeHouse believes that private label volume growth will continue to outpace the overall market for retail grocery sales, and as such, expects unit volumes to increase in the range of 2%. Pricing is not anticipated to be a factor in revenue growth in 2010 as the Company's input costs appear to be relatively stable. However, should input cost inflation require pricing in order to maintain margin neutrality, TreeHouse will react appropriately. Margins are expected to expand by 100 basis points in 2010 through a focus on internal efficiencies. Operating expenses are expected to rise as the Company begins to implement new ERP systems. Overall, earnings per share before the acquisition of Sturm Foods are expected to increase to a range of $2.32 to $2.37 per share, and the effective tax rate will settle at a range of 36% to 37%.

    TreeHouse expects to close the Sturm transaction later in the first quarter. The Company expects the transaction will add another $0.27 to $0.30 in EPS in calendar year 2010. On a full year, proforma basis, it is anticipated that Sturm will contribute $0.38 to $0.40 in earnings, resulting in over 16% accretion before one-time items. These estimates are dependant on a variety of factors, including the timing of transaction closing, valuation estimates and market conditions at the time of closing. The Company will update the estimates after the transaction closes.

    Commenting on the outlook for 2010, Sam K. Reed said, "We see 2010 as a year of opportunity. We expect to add Sturm to the TreeHouse family and will work to expand their base of customers throughout our North American distribution network. We see a relatively benign cost environment that will allow us to focus on new business opportunities while maintaining our diligent pursuit of production and distribution efficiencies."

    COMPARISON OF ADJUSTED INFORMATION TO GAAP INFORMATION

    The adjusted diluted earnings per share data contained in this press release reflect adjustments to reported earnings per share data to eliminate the net expense or net gain related to items identified in the above chart. This information is provided in order to allow investors to make meaningful comparisons of the Company's operating performance between periods and to view the Company's business from the same perspective as Company management. Because the Company cannot predict the timing and amount of charges associated with non-recurring items or facility closings and reorganizations, management does not consider these costs when evaluating the Company's performance, when making decisions regarding the allocation of resources, in determining incentive compensation for management, or in determining earnings estimates. These costs are not recorded in any of the Company's operating segments. Adjusted EBITDA represents net income before interest expense, income tax expense, depreciation and amortization expense, and non-recurring items. Adjusted EBITDA is a performance measure and liquidity measure used by management, and the Company believes it is commonly reported and widely used by investors and other interested parties, as a measure of a company's operating performance and ability to incur and service debt. This non-GAAP financial information is provided as additional information for investors and is not in accordance with or an alternative to GAAP. These nonGAAP measures may be different from similar measures used by other companies. A full reconciliation table between reported income for the three and twelve month periods ended December 31, 2009 and 2008 calculated according to GAAP and Adjusted EBITDA is attached. Given the inherent uncertainty regarding nonrecurring items in any future period, a reconciliation of forward-looking financial measures to the most directly comparable GAAP measure is not feasible.

    CONFERENCE CALL WEBCAST

    A webcast to discuss the Company's financial results will be held at 9:00 a.m. (Eastern Time) today and may be accessed by visiting the "Investor Overview" page through the "Investor Relations" menu of the Company's website at http://www.treehousefoods.com/.

    ABOUT TREEHOUSE FOODS

    TreeHouse is a food manufacturer servicing primarily the retail grocery and foodservice channels. Its products include non-dairy powdered coffee creamer; canned soup, salad dressings and sauces; salsa and Mexican sauces; jams and pie fillings under the E.D. Smith brand name; pickles and related products; infant feeding products; and other food products including aseptic sauces, refrigerated salad dressings, and liquid non-dairy creamer. TreeHouse believes it is the largest manufacturer of pickles and non-dairy powdered creamer in the United States and the largest manufacturer of private label salad dressings in the United States and Canada based on sales volume.

    FORWARD LOOKING STATEMENTS

    This press release contains "forward-looking statements." Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "may," "should," "could," "expects," "seek to," "anticipates," "plans," "believes," "estimates," "intends," "predicts," "projects," "potential" or "continue" or the negative of such terms and other comparable terminology. These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause the Company or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievement expressed or implied by these forward-looking statements. TreeHouse's Form 10-K for the year ended December 31, 2008 discusses some of the factors that could contribute to these differences. You are cautioned not to unduly rely on such forward-looking statements, which speak only as of the date made, when evaluating the information presented in this presentation. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in its expectations with regard thereto, or any other change in events, conditions or circumstances on which any statement is based.

    FINANCIAL INFORMATION TREEHOUSE FOODS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) Three Months Ended Twelve Months Ended December 31 December 31 ------------------ ------------------- 2009 2008 2009 2008 ------------------ ------------------- (unaudited) (unaudited) Net sales $404,787 $398,082 $1,511,653 $1,500,650 Cost of sales 310,490 318,236 1,185,283 1,208,626 ------- ------- --------- --------- Gross profit 94,297 79,846 326,370 292,024 Operating expenses: Selling and distribution 27,969 29,058 107,938 115,731 General and administrative 24,078 14,780 80,466 61,741 Other operating (income) expense, net 7,705 1,329 (6,224) 13,901 Amortization expense 3,427 3,180 13,381 13,526 ----- ----- ------ ------ Total operating expenses 63,179 48,347 195,561 204,899 ------ ------ ------- ------- Operating income 31,118 31,499 130,809 87,125 Other (income) expense: Interest expense 4,286 5,838 18,430 27,614 Interest income (6) - (45) (107) (Gain) loss on currency exchange (2,615) 9,316 (7,387) 13,040 Other, net (847) 7,382 (2,263) 7,123 ---- ----- ------ ----- Total other expense 818 22,536 8,735 47,670 --- ------ ----- ------ Income before income taxes 30,300 8,963 122,074 39,455 Income taxes 8,207 1,836 40,760 10,895 ----- ----- ------ ------ Income from continuing operations 22,093 7,127 81,314 28,560 ------ ----- ------ ------ Loss from discontinued operations - (336) - (336) --- ---- --- ---- Net income $22,093 $6,791 $81,314 $28,224 ======= ====== ======= ======= Weighted average common shares: Basic 32,530 31,522 31,982 31,341 Diluted 33,388 31,679 32,798 31,469 Net earnings per common share: Basic $0.68 $0.22 $2.54 $0.90 Diluted $0.66 $0.21 $2.48 $0.90 Supplemental Information: ------------------------- Depreciation and Amortization $12,411 $10,346 $47,343 $45,854 Equity Based Compensation $3,352 $3,398 $13,303 $12,193 Segment Information: -------------------- North American Retail Grocery Net Sales $265,657 $252,768 $971,083 $917,102 Direct Operating Income $45,722 $35,253 $152,849 $114,511 Direct Operating Income Percent 17.2% 13.9% 15.7% 12.5% Food Away From Home Net Sales $72,163 $69,264 $292,927 $294,020 Direct Operating Income $11,941 $7,798 $36,069 $32,133 Direct Operating Income Percent 16.5% 11.3% 12.3% 10.9% Industrial and Export Net Sales $66,967 $76,050 $247,643 $289,528 Direct Operating Income $9,559 $8,871 $36,025 $33,473 Direct Operating Income Percent 14.3% 11.7% 14.5% 11.6% The following table reconciles net income to adjusted EBITDA for the three and twelve months ended December 31, 2009 and 2008: TREEHOUSE FOODS, INC. RECONCILIATION OF REPORTED EARNINGS TO ADJUSTED EBITDA (In thousands, except per share data) Three Months Ended Twelve Months Ended December 31 December 31 ------------------ ------------------- 2009 2008 2009 2008 ------------------ ------------------- (unaudited) (unaudited) Net income as reported $22,093 $6,791 $81,314 $28,224 Interest expense 4,286 5,838 18,430 26,980 Interest income (6) - (45) (107) Income taxes 8,207 1,835 40,760 10,895 Loss from discontinued operations, net of tax - 336 - 336 Depreciation and amortization 12,411 10,346 47,343 45,852 Equity based compensation 3,352 3,398 13,303 12,193 One time factory costs associated with inventory reduction program - 2,500 2,500 Revalue license agreement - - 634 Tradename impairment 7,600 - 7,600 - Gain on insurance replacement of fixed assets - - (13,609) - (Gain) loss on intercompany note translation and other (463) 5,925 (4,929) 9,135 Mark to market adjustment on interest rate Swap (875) 6,981 (2,104) 6,981 One -time acquisition costs 1,839 1,839 Acquisition integration and accounting adjustments - - - 508 Net plant shut-down costs 172 805 885 12,905 --- --- --- ------ Adjusted EBITDA $58,616 $44,755 $190,787 $157,036 ======= ======= ======== ========

    Photo: http://www.newscom.com/cgi-bin/prnh/20050726/CGTREELOGO
    AP Archive: http://photoarchive.ap.org/
    PRN Photo Desk, photodesk@prnewswire.com TreeHouse Foods, Inc.

    CONTACT: Investor Relations of TreeHouse Foods, Inc., +1-708-483-1300,
    ext. 1331

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




    Grainger Reports January 2010 Sales Results

    CHICAGO, Feb. 11 /PRNewswire-FirstCall/ -- Grainger today reported sales results for the month of January 2010. Daily sales increased 12 percent versus January 2009. Results for the month included a 5 percentage point positive contribution from acquisitions, a 2 percentage point benefit from the timing of the New Years' holiday and a 2 percentage point contribution from foreign exchange. Excluding acquisitions, holiday timing and foreign exchange, daily sales for the company increased 3 percent. January 2010 had 20 selling days versus 21 in January 2009. The 2010 first quarter will have the same number of selling days (63) as the 2009 first quarter.

    January Daily Sales by Segment 2010 v. 2009 United States +6% Canada +22% +4% in local currency Other Businesses +283% Includes sales from the acquired businesses in Japan and India

    Please visit http://www.grainger.com/investor to access a recorded message with additional details about January 2010 sales.

    W.W. Grainger, Inc. with 2009 sales of $6.2 billion is the leading broad line supplier of facilities maintenance products serving businesses and institutions in the United States and Canada, with an expanding presence in Japan, Mexico, India, China and Panama. Through a highly integrated network including branches, distribution centers and Web sites, Grainger's employees help customers get the job done. Visit http://www.grainger.com/investor to view information about the company, including a history of daily sales by segment.

    W.W. Grainger, Inc.

    CONTACT: Media, Jan Tratnik, Director, Corporate Communications & Public
    Affairs, +1-847-535-4339, or Erin Ptacek, Director, Corporate Brand &
    Reputation, +1-847-535-1543, or Investors, Ernest Duplessis, Vice President,
    Investor Relations, +1-847-535-4356, or William Chapman, Director, Investor
    Relations, +1-847-535-0881, all of W.W. Grainger, Inc.

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




    PepsiCo Delivers Solid Results for Fiscal 2009Affirms Core Constant Currency EPS Growth Target of 11 to 13 Percent for Fiscal 2010 - Fourth-Quarter Reported EPS of $0.90, up 99 percent - Full-Year Reported EPS grew 17 percent; Core Constant Currency EPS up 6 percent* - Full-Year Cash Flow From Operations of $6.8 Billion; Management Operating Cash Flow, Excluding Certain Items, of $5.6 Billion, Ahead of Forecast - Company Hopes to Close Bottling Acquisitions by the End of February 2010; Synergies Ahead of Earlier Expectations - Affirms Core Constant Currency EPS Growth Target of 11 to 13 Percent for Fiscal 2010 including the impact of the Bottling Acquisitions

    PURCHASE, N.Y., Feb. 11 /PRNewswire-FirstCall/ -- PepsiCo, Inc. today reported solid results for 2009 driven by healthy gains in its worldwide snacks and international beverage businesses, balanced investments in value and innovation in key markets and cost discipline across its operations. For the full year, reported EPS grew 17 percent to $3.77 and core constant currency EPS increased 6 percent. For the fourth quarter, reported EPS was $0.90.

    PepsiCo Chairman and CEO, Indra Nooyi, said: "In 2009, strong execution of PepsiCo's operational priorities enabled us to deliver healthy revenue and profit growth and generate strong cash flow, despite the macroeconomic challenges across much of the world. Our teams demonstrated their agility in balancing innovation and value, which enabled us to maintain consumer momentum while driving margin expansion. In addition, we continued to invest in R&D, infrastructure and innovation to sustain our long-term growth."

    Nooyi continued, "In 2010, we are changing the rules of the game in North America beverages through the anticipated merger with our anchor bottlers coupled with the continuing activities to refresh our core brands. We are extending our global leadership in snacks by continuing to innovate with new products and platforms, and by accelerating our growth in developing markets. We will accelerate our commitment across all our product categories to build a more balanced and healthier portfolio of enjoyable and wholesome foods and beverages - using science-based innovation to improve our existing portfolio and create new platforms. Combined with a relentless focus on financial performance and productivity, these activities will drive sustained growth in revenue, profit and cash flow."

    PepsiCo CFO, Richard Goodman said, "In 2009, our teams were disciplined in their working capital management, generating stronger than expected management operating cash flow of $5.6 billion, excluding certain items. We expect to resume repurchasing our shares upon the close of the bottling transaction and anticipate that in 2010 share repurchases together with a voluntary $600 million pension plan contribution would total about $5 billion."

    * Please refer to the Glossary for definitions of constant currency and core. Core results and core constant currency results are non-GAAP financial measures that exclude certain items. Please refer to "Reconciliation of GAAP and Non-GAAP information" in the attached exhibits for a description of these items.

    Summary of Full-Year 2009 Performance* --------------------------------------------------------- Constant Currency** ------------------- Core** Core** Division Division Division Net Operating Net Operating Operating % Growth Volume Revenue Profit Revenue Profit Profit -------- ------ ------- ------ ------- ------ ------ PAF - 7 8 2.5 4 8 FLNA 1 6 7 6 6 10 QFNA - - 3 (1) 3 8 LAF (2) 10 13 (3) (3) 1 PAB (6) (6) (3) (8) (5.5) 7 PI 3 / 6*** 11 17 2.5 6 10 Europe (1)/ 3.5*** 10 13 (2) (3) 2 AMEA 9 / 8*** 12 23 9 20 21 Total Divisions 1 /(1)*** 5 6 - 2 8 --------------------------------------------------------- * For the full year, total reported operating profit grew 16% ** The above core results and core constant currency results are non-GAAP financial measures that exclude certain restructuring actions associated with the company's Productivity for Growth initiative and costs associated with our proposed mergers with PBG and PAS. For more information about our core results and core constant currency results, see "Reconciliation of GAAP and Non-GAAP Information" in the attached exhibits. Please refer to the Glossary for definitions of "Constant Currency" and "Core". *** Snacks/Beverage Summary of Fourth-Quarter 2009 Performance* --------------------------------------------------------- Constant Currency** ------------------- Core** Core** Division Division Division Net Operating Net Operating Operating % Growth Volume Revenue Profit Revenue Profit Profit -------- ------ ------- ------ ------- ------ ------ PAF - 4 3 5 4 19 FLNA - 2 4 3 5 19 QFNA (2) (5) (2) (4) (1) 18 LAF - 10 3 11 4 20 PAB (5) (2) 10 (1) 11 191 PI 4 / 3*** 5 (3) 8 (0.5) 26 Europe (3)/ -*** 4 7 5 7 33 AMEA 13 / 5*** 7 (42) 12 (27) (4) Total Divisions 1 /(1)*** 3 3.5 4.5 5 39 --------------------------------------------------------- * In the fourth quarter total reported operating profit grew 67% ** The above core results and core constant currency results are non-GAAP financial measures that exclude certain restructuring actions associated with the company's Productivity for Growth initiative and costs associated with our proposed merger of PBG and PAS. For more information about our core results and core constant currency results, see "Reconciliation of GAAP and Non-GAAP Information" in the attached exhibits. Please refer to the Glossary for definitions of "Constant Currency" and "Core". *** Snacks/Beverage

    All references below to net revenue and core operating profit are on a constant currency basis.

    Full-Year and Quarter Operating Highlights: -- For the year, Frito-Lay North America delivered a 6 percent increase in net revenue and a 7 percent increase in core operating profit, on top of similar gains in 2008, as it maintained its position as the fastest growing U.S. consumer packaged goods company in measured channels. -- For the year, PepsiCo International delivered double-digit gains in net revenue and core operating profit while making strategic investments in adjacent product categories and geographies and in infrastructure in key markets. -- On improving top-line trends, PepsiCo Americas Beverages grew core operating profit 10 percent in the quarter. Division Operating Summary

    PepsiCo Americas Foods (PAF) grew net revenue 7 percent and core operating profit 8 percent for the full year 2009 and gained snacks share across the region. In the fourth quarter, PAF grew net revenue 4 percent and core operating profit 3 percent.

    Frito-Lay North America (FLNA) gained dollar share and was the fastest growing CPG Company in the U.S. in 2009 in measured channels. For the full year, volume increased 1 percent, net revenue grew 6 percent and core operating profit grew 7 percent, as FLNA effectively offset commodity inflation and investments in value initiatives with strong revenue management and productivity initiatives.

    In the fourth quarter, volume was flat, reflecting the completion of the "20% More Free" promotion FLNA ran in the second and third quarters of the year. It continued to perform well in large format stores, growing dollar share on the strength of Lay's potato chips, Cheetos, dips and variety packs. Net revenue increased 2 percent and core operating profit increased 4 percent in the quarter, with the muted growth reflecting the lapping of significant pricing actions in the year-ago period.

    In 2010, FLNA will drive top-line growth with strong innovations on its core platforms, targeted value initiatives, and increased emphasis on delivering more nutritious snacking options to consumers, including adding fiber to its SunChips line and whole grains to Tostitos.

    Quaker Foods North America (QFNA) volume and net revenue were flat for the year, and core operating profit grew 3 percent. In the quarter, volume declined 2 percent, net revenue was down 5 percent and core operating profit declined 2 percent. Net revenue performance reflected a step-up in promotional investments, while growth in core operating profit was adversely impacted by the overlap of a flood-related insurance settlement in the year-ago quarter.

    Latin America Foods (LAF) performed very well in 2009, growing net revenue 10 percent and core operating profit 13 percent despite very challenging macros in Mexico. In the fourth quarter, LAF grew net revenue 10 percent. Core operating profit growth of 3 percent reflected the overlap of an insurance settlement in the year-ago period as well as input cost inflation on sugar and potatoes in key markets. In the quarter, Sabritas held its strong value share position and Gamesa grew value share. South America posted strong gains in revenue and operating profit.

    PepsiCo Americas Beverages (PAB) showed improvement during the course of 2009 against the backdrop of a challenging liquid refreshment beverage category in North America. For the full year, volume and net revenue declined 6 percent due to the challenging category while core operating profit decreased 3 percent. In the fourth quarter, volume declined 5 percent but operating profit grew by 10 percent, reflecting sequential improvement in top-line trends, a focus on profitable volume growth, heightened productivity in the North American business, and significant operating profit growth in Latin America.

    The refresh of the North American beverage business gained traction in the fourth quarter as brands such as SoBe Lifewater and Gatorade gained market share. Also, important brand health metrics rose for brand Pepsi, Pepsi Max, Gatorade, Lipton Tea and Tropicana.

    In 2010, differentiated value will continue to play a key role as PAB rolls out targeted innovation, such as the G Series Performance line, offering additional benefits for pre-, during and post-athletic occasions. In CSDs, the innovative "Pepsi Refresh Project" is providing millions of dollars in grants to make a positive impact in local communities. The integrated campaign drives consumers to Pepsi's website where they can submit project ideas and vote for their favorite projects, with the winning grants ranging from $5,000 to $250,000.

    PepsiCo International (PI) delivered another year of solid results in 2009 with a 17 percent increase in core operating profit on an 11 percent increase in net revenue. In the fourth quarter, PI net revenue grew 5 percent and core operating profit declined 3 percent, reflecting the impact of significant strategic infrastructure investments in our Asia/Middle East/Africa (AMEA) division.

    Europe delivered strong 2009 full-year results in a particularly difficult macroeconomic environment, growing net revenue 10 percent and core operating profit 13 percent. Acquisitions contributed 8 percentage points to net revenue growth and 5 percentage points to core operating profit growth in the full year. In the quarter, net revenue grew 4 percent, reflecting 2 percentage points from acquisitions, and core operating profit increased 7 percent as the division balanced revenue growth with tight cost controls and productivity gains.

    In the quarter, snacks volume declined 3 percent, reflecting pricing actions, including weight-outs, as well as continued macroeconomic challenges. Snacks volume grew in the U.K., driven by the success of Walkers "Gazillion Bag Giveaway" and the "Do Us a Flavour" campaign, which has now been rolled out to other markets in Europe. In Russia, the division continued to gain significant value share and product innovation included a new flavor of its Hrustream bread snacks as well as the launch of Lay's Sensations.

    Beverage volume was flat in the quarter, including 2 points of growth from acquisitions. Across Western Europe a combination of value and marketing programs and our differentiated Pepsi Max proposition delivered stronger volume momentum and broad based share gains. In Russia we outpaced the market with continued brand equity and value programs delivering share gains in colas, teas and energy drinks, and the Lebedyansky juice portfolio continued to deliver volume and share gains.

    AMEA delivered strong growth in 2009, with net revenue up 12 percent and core operating profit up 23 percent. Acquisitions contributed 1 percentage to net revenue growth and 10 percentage points to core operating profit growth. Driven by seasonality, the fourth quarter is by far the smallest profit quarter for the division and in the quarter, AMEA grew net revenue 7 percent while core operating profit declined 42 percent, reflecting significant incremental strategic investments in key emerging markets and the shift in the timing of the Chinese New Year.

    Beverage volume grew 8 percent for the year led by 32 percent growth in India which gained overall share for the year. Volume grew 5 percent in the quarter led by growth of 21 percent in India and high-single-digit growth in Thailand and Egypt. This growth was partially offset by a decline in China, which was negatively impacted by a shift in the timing of the Chinese New Year. The business also posted volume and value share gains in the Middle East.

    Snacks volume grew 13 percent in the quarter reflecting double-digit gains in India, Pakistan, Egypt and Thailand as well as 4 percentage points of growth from acquisitions. In the quarter, the division expanded its partnership with dairy producer Almarai to broaden its portfolio of healthy offerings in Egypt.

    Beverage System Transformation

    The company is on-track with its plans to acquire its two anchor bottlers, The Pepsi Bottling Group (PBG) and PepsiAmericas, Inc. (PAS), subject to regulatory and stockholder approval. PBG and PAS shareholders will vote on February 17, 2010 on whether to approve the acquisitions. The company hopes the transactions will close by the end of February 2010.

    Tax Rate

    PepsiCo's reported tax rate was 29 percent for the fourth quarter. Excluding the impact of items affecting comparability, PepsiCo's core tax rate was 28 percent for the fourth quarter. The company's full-year reported and core tax rates were 26 percent.

    Cash Flow

    PepsiCo's full-year cash flow from operating activities was $6.8 billion, including a discretionary $1 billion contribution to PepsiCo's pension fund, $196 million of cash payments associated with the Productivity for Growth program and $49 million of merger-related payments in connection with our pending bottling acquisitions. Management operating cash flow, excluding these items (net of tax benefits) and net of capital expenditures, was $5.6 billion, well ahead of our forecast.

    Fiscal 2010 Guidance

    For fiscal 2010, the company is targeting an 11 to 13 percent growth rate for core constant currency EPS off of its fiscal 2009 core EPS of $3.71. This guidance assumes the company will close the bottling transactions by the end of February. The earnings guidance also reflects roughly 8 to 9 percent growth from "base" PepsiCo, with additional growth coming from a combination of financial and accounting accretion from the bottling transaction plus year-one synergies (totaling about 5 points of growth) partially offset by strategic investment spending. As a result of its recent integration planning efforts, the company is now targeting pre-tax annualized synergies from the proposed bottler acquisitions of approximately $400 million once fully implemented by 2012, with one-time costs of about the same amount. Synergies to be realized in 2010 are expected to total approximately $125 to $150 million. The company is still in the process of completing its integration planning. The details of these and other efficiencies relating to the company's beverage business will be discussed at its analyst meeting scheduled for March 22 and 23, 2010.

    Share Count and Tax Rate

    The weighted average diluted share count in 2010 is expected to be higher than in 2009, reflecting a higher 2009 year-end share count because of the impact of options exercises and the lack of share buy-backs in 2009 and the issuance of shares related to the bottling transaction in 2010 offset in part by the company's planned share repurchases in 2010.

    The company anticipates that share repurchases together with a voluntary $600 million funding of its pension plans would total about $5 billion in 2010.

    The company expects its full-year 2010 core tax rate on a stand-alone basis to be about the same as in 2009. The weighted average tax rate including the proposed bottler acquisitions will be about 27 to 28 percent.

    Impact of Venezuelan Devaluation

    As of the beginning of the Company's 2010 fiscal year, Venezuela will be accounted for under hyperinflationary accounting rules, and the functional currency of our Venezuelan entities will be changed from the Bolivar to the U.S. dollar. Effective January 11, 2010, the Venezuelan government devalued the Bolivar by resetting the official exchange rate from 2.15 Bolivars per dollar to 4.3 Bolivars per dollar.

    In 2010, the Company expects that the majority of its foreign exchange transactions will be conducted at the 4.3 exchange rate, and as a result of the change to hyperinflationary accounting and the devaluation, the company expects to record a one-time charge in the first quarter of 2010 of approximately $125 million relating to the remeasurement of its balance sheet. The company's constant currency core earnings per share guidance for 2010 will not be affected.

    Please refer to the glossary for more information about the items excluded from the company's fiscal 2010 core constant currency EPS guidance and for a definition of "base" PepsiCo.

    The company has not yet received regulatory or shareholder approval for the acquisitions. The company is still in the process of completing its integration planning. Any of these factors, as well as the risks described under "Cautionary Statement" later in this release, the risks described in our most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K and in the company's Form S-4 Registration Statements with respect to the acquisitions could materially adversely impact the company's ability to achieve these results.

    About PepsiCo

    PepsiCo offers the world's largest portfolio of billion-dollar food and beverage brands, including 18 different product lines that each generate more than $1 billion in annual retail sales. Our main businesses - Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade - also make hundreds of other nourishing, tasty foods and drinks that bring joy to our consumers in approximately 215 countries. With more than $43 billion in 2009 revenues, PepsiCo employs approximately 203,000 people who are united by our unique commitment to sustainable growth, called Performance with Purpose. By dedicating ourselves to offering a broad array of choices for healthy, convenient and fun nourishment, reducing our environmental impact, and fostering a diverse and inclusive workplace culture, PepsiCo balances strong financial returns with giving back to our communities worldwide. For more information, please visit http://www.pepsico.com/.

    Cautionary Statement

    Statements in this release that are "forward-looking statements", including PepsiCo's 2010 guidance, are based on currently available information, operating plans and projections about future events and trends. They inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: PepsiCo's ability to consummate the acquisitions of The Pepsi Bottling Group, Inc. ("PBG") and PepsiAmericas, Inc. ("PAS"); PepsiCo's ability to achieve the synergies and value creation contemplated by the proposed acquisitions; loss of key employees or customers or other business disruption as a result of the proposed acquisitions; PepsiCo's ability to promptly and effectively integrate the businesses of PBG, PAS and PepsiCo; the timing to consummate the proposed acquisitions and any necessary actions to obtain required regulatory approvals; the diversion of management time on transaction-related issues; increased indebtedness as a result of the proposed acquisitions; changes in demand for PepsiCo's products, as a result of shifts in consumer preferences or otherwise; increased costs, disruption of supply or shortages of raw materials and other supplies; unfavorable economic conditions and increased volatility in foreign exchange rates; PepsiCo's ability to build and sustain proper information technology infrastructure, successfully implement its ongoing business process transformation initiative or outsource certain functions effectively; damage to PepsiCo's reputation; trade consolidation, the loss of any key customer, or failure to maintain good relationships with PepsiCo's bottling partners, including as a result of the Proposed Transactions; PepsiCo's ability to hire or retain key employees or a highly skilled and diverse workforce; changes in the legal and regulatory environment; disruption of PepsiCo's supply chain; unstable political conditions, civil unrest or other developments and risks in the countries where PepsiCo operates; and risks that benefits from the Productivity for Growth initiative may not be achieved, may take longer to achieve than expected or may cost more than currently anticipated. For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the SEC, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

    Miscellaneous Disclosures

    Conference Call. At 10:00 a.m. (Eastern Time) today, the company will host a conference call with investors to discuss fourth-quarter 2009 results and the outlook for full-year 2010. For details, visit the company's website at http://www.pepsico.com/, in the "Investors" section.

    Reconciliation. In discussing financial results and guidance, the company may refer to certain non-GAAP measures. Reconciliations of any such non-GAAP measures to the most directly comparable financial measures in accordance with GAAP can be found in the attached exhibits, as well as on the company's website at http://www.pepsico.com/, in the "Investors" section. Our non-GAAP measures exclude from reported results those items that management believes are not indicative of our ongoing performance and how management evaluates our operating results and trends.

    Glossary

    "Base" PepsiCo: PepsiCo's projected 2010 core constant currency EPS growth (as measured against its full-year 2009 core EPS), excluding the accretive impact of (1) incremental 2010 results in connection with the proposed bottler acquisitions, (2) net favorable purchase accounting adjustments in 2010 in connection with the proposed bottler acquisitions, and (3) expected synergies in 2010 in connection with the proposed bottler acquisitions, less (4) the dilutive impact of certain planned 2010 incremental strategic investments in our businesses.

    Beverage volume: Volume shipped to retailers and independent distributors from both PepsiCo and our bottlers.

    Core: Core results are non-GAAP financial measures. 2009 fourth quarter and year-to-date core results exclude, in both 2009 and 2008, the commodity mark-to-market net impact included in corporate unallocated expenses and certain restructuring actions. 2009 fourth quarter and year-to-date core results also exclude costs associated with our proposed merger with PBG and PAS, as well as our share of PBG's and PAS's respective merger costs included in bottling equity income. Core EPS guidance for full-year 2010 excludes the commodity mark-to-market net impact included in corporate unallocated expenses, estimated one-time costs to achieve synergies, the gain or loss on previously held equity interests in PBG and PAS, the post-merger one-time impact to earnings of fair value adjustments to acquired inventory, the one-time charge related to the change to hyperinflationary accounting and devaluation in Venezuela, any additional restructuring or integration costs and transaction costs related to the proposed acquisitions of PBG and PAS. For more details and reconciliations of our 2009 core results and 2010 core constant currency EPS guidance, see "Reconciliation of GAAP and Non-GAAP Information" in the exhibits attached hereto.

    Constant currency: Financial results (historical and projected) assuming constant foreign currency exchange rates used for translation based on the rates in effect for the comparable prior-year period. In addition, the impact on EPS growth is computed by adjusting core EPS growth by the after-tax foreign currency translation impact on core operating profit growth using PepsiCo's core effective tax rate.

    Division operating profit: The aggregation of the operating profit for each of our reportable segments, which excludes the impact of corporate unallocated expenses.

    Effective net pricing: The combined impact of mix and price.

    Management operating cash flow: Net cash provided by operating activities less capital spending plus sales of property, plant and equipment. It is our primary measure used to monitor cash flow performance. See the attached exhibits for a reconciliation of this measure to the most directly comparable financial measure in accordance with GAAP (operating cash flow).

    Management operating cash flow, excluding certain items: Management operating cash flow, excluding: (1) a discretionary pension contribution (net of tax) in 2009, (2) restructuring payments (net of tax) in connection with our Productivity for Growth initiative, and (3) merger costs paid in connection with our proposed bottler acquisitions. See the attached exhibits for a reconciliation of this measure to the most directly comparable financial measure in accordance with GAAP (operating cash flow).

    Mark-to-market gain or loss or net impact: Change in market value for commodity contracts that we purchase to mitigate the volatility in costs of energy and raw materials that we consume. The market value is determined based on average prices on national exchanges and recently reported transactions in the marketplace.

    Net pricing: The combined impact of list price changes, weight changes per package, discounts and allowances.

    Net capital spending: Capital spending less cash proceeds from sales of property, plant and equipment.

    Pricing: The impact of list price changes and weight changes per package.

    Transaction foreign exchange: The foreign exchange impact on our financial results of transactions, such as purchases of imported raw materials, commodities, or services, occurring in currencies other than the local, functional currency.

    PepsiCo, Inc. and Subsidiaries Summary of PepsiCo 2009 Results (unaudited) Quarter Ended 12/26/09 Year Ended 12/26/09 ---------------------- ------------------- Constant Constant Currency Currency % Growth Reported Core* Core* Reported Core* Core* -------- -------- ----- ----- -------- ----- ----- Volume (Servings) - - - - Net Revenue 4.5 4.5 3 - - 5 Division Operating Profit 39 5 3.5 8 2 6 Total Operating Profit 67 0.5 16 - Net Income Attributable to PepsiCo 99 2 16 (1) Earnings per Share (EPS) 99 2 1 17 1 6 *Core results are financial measures that are not in accordance with Generally Accepted Accounting Principles (GAAP) and exclude the commodity mark-to-market net impact included in corporate unallocated expenses, certain restructuring actions associated with our Productivity for Growth initiative, our share of the Pepsi Bottling Group, Inc.'s (PBG) restructuring and impairment charges in 2008, costs associated with our proposed mergers with PBG and PepsiAmericas, Inc. (PAS), as well as our share of their respective merger costs. Core growth, on a constant currency basis, assumes constant foreign currency exchange rates used for translation based on the rates in effect for the comparable period during 2008. In addition, core EPS growth, on a constant currency basis, is computed by adjusting core EPS growth by the after-tax foreign currency translation impact on core operating profit growth using PepsiCo's core effective tax rate. See schedules A-9 through A-15 for a discussion of these items and reconciliations to the most directly comparable financial measures in accordance with GAAP. PepsiCo, Inc. and Subsidiaries Condensed Consolidated Statement of Income (in millions, except per share amounts, and unaudited) Quarter Ended Year Ended -------------------------- ------------------------- 12/26/09 12/27/08 Change 12/26/09 12/27/08 Change -------- -------- ------ -------- -------- ------ Net Revenue $13,297 $12,729 4.5% $43,232 $43,251 -% Costs and Expenses Cost of sales 6,293 6,171 2% 20,099 20,351 (1)% Selling, general and administrative expenses 4,949 5,317 (7)% 15,026 15,877 (5)% Amortization of intangible assets 21 21 5% 63 64 -% -------- -------- -------- -------- Operating Profit 2,034 1,220 67% 8,044 6,959 16% Bottling Equity Income 75 (65) n/m 365 374 (2)% Interest Expense (112) (124) (11)% (397) (329) 21% Interest Income 23 (12) n/m 67 41 62% -------- -------- -------- -------- Income before Income Taxes 2,020 1,019 98% 8,079 7,045 15% Provision for Income Taxes 583 293 99% 2,100 1,879 12% -------- -------- -------- -------- Net Income 1,437 726 98% 5,979 5,166 16% Less: Net Income Attributable to Noncontrolling Interests 3 7 (70)% 33 24 34% -------- -------- -------- -------- Net Income Attributable to PepsiCo $1,434 $719 99% $5,946 $5,142 16% ======== ======== ======== ======== Diluted Net Income Attributable to PepsiCo per Common Share $0.90 $0.46 99% $3.77 $3.21 17% Average Shares Outstanding 1,584 1,578 1,577 1,602 n/m = not meaningful PepsiCo, Inc. and Subsidiaries Supplemental Financial Information (in millions, unaudited) Quarter Ended Year Ended -------------------------- ------------------------- 12/26/09 12/27/08 Change 12/26/09 12/27/08 Change -------- -------- ------ -------- -------- ------ Net Revenue Frito-Lay North America $3,888 $3,770 3% $13,224 $12,507 6% Quaker Foods North America 585 610 (4)% 1,884 1,902 (1)% Latin America Foods 2,062 1,857 11% 5,703 5,895 (3)% ------- ------- ------- ------- PepsiCo Americas Foods 6,535 6,237 5% 20,811 20,304 2.5% PepsiCo Americas Beverages 2,754 2,774 (1)% 10,116 10,937 (8)% Europe 2,264 2,157 5% 6,727 6,891 (2)% Asia, Middle East & Africa 1,744 1,561 12% 5,578 5,119 9% ------- ------- ------- ------- PepsiCo International 4,008 3,718 8% 12,305 12,010 2.5% ------- ------- ------- ------- Total Net Revenue $13,297 $12,729 4.5% $43,232 $43,251 -% ======= ======= ======= ======= Operating Profit Frito-Lay North America $956 $806 19% $3,258 $2,959 10% Quaker Foods North America 190 160 18% 628 582 8% Latin America Foods 301 251 20% 904 897 1% ------- ------- ------- ------- PepsiCo Americas Foods 1,447 1,217 19% 4,790 4,438 8% PepsiCo Americas Beverages 522 179 191% 2,172 2,026 7% Europe 259 194 33% 932 910 2% Asia, Middle East & Africa 46 49 (4)% 716 592 21% ------- ------- ------- ------- PepsiCo International 305 243 26% 1,648 1,502 10% Division Operating Profit 2,274 1,639 39% 8,610 7,966 8% Corporate Unallocated Net Impact of Mark-to-Market on Commodity Hedges 83 (227) n/m 274 (346) n/m PBG/PAS Merger Costs (48) - n/m (49) - n/m Restructuring - (10) n/m - (10) n/m Other (275) (182) 51% (791) (651) 21% ------- ------- ------- ------- (240) (419) (42)% (566) (1,007) (44)% Total Operating Profit $2,034 $1,220 67% $8,044 $6,959 16% ======= ======= ======= ======= n/m = not meaningful PepsiCo, Inc. and Subsidiaries Condensed Consolidated Statement of Cash Flows (in millions) Year Ended ------------------------- 12/26/09 12/27/08 -------- -------- (unaudited) Operating Activities Net income $5,979 $5,166 Depreciation and amortization 1,635 1,543 Stock-based compensation expense 227 238 Restructuring and impairment charges 36 543 Cash payments for restructuring charges (196) (180) PBG/PAS merger costs 50 - Cash payments for PBG/PAS merger costs (49) - Excess tax benefits from share-based payment arrangements (42) (107) Pension and retiree medical plan contributions (1,299) (219) Pension and retiree medical plan expenses 423 459 Bottling equity income, net of dividends (235) (202) Deferred income taxes and other tax charges and credits 284 573 Change in accounts and notes receivable 188 (549) Change in inventories 17 (345) Change in prepaid expenses and other current assets (127) (68) Change in accounts payable and other current liabilities (133) 718 Change in income taxes payable 319 (180) Other, net (281) (391) ------ ------ Net Cash Provided by Operating Activities 6,796 6,999 ------ ------ Investing Activities Capital spending (2,128) (2,446) Sales of property, plant and equipment 58 98 Acquisitions and investments in noncontrolled affiliates (500) (1,925) Divestitures 99 6 Cash restricted for pending acquisitions 15 (40) Cash proceeds from sale of The Pepsi Bottling Group, Inc. (PBG) and PepsiAmericas, Inc. (PAS) stock - 358 Short-term investments, net 55 1,282 ------ ------ Net Cash Used for Investing Activities (2,401) (2,667) ------ ------ Financing Activities Proceeds from issuances of long-term debt 1,057 3,719 Payments of long-term debt (226) (649) Short-term borrowings, net (1,018) 445 Cash dividends paid (2,732) (2,541) Share repurchases - common - (4,720) Share repurchases - preferred (7) (6) Proceeds from exercises of stock options 413 620 Excess tax benefits from share-based payment arrangements 42 107 Other financing (26) - ------ ------ Net Cash Used for Financing Activities (2,497) (3,025) Effect of Exchange Rate Changes on Cash and Cash Equivalents (19) (153) ------ ------ Net Increase in Cash and Cash Equivalents 1,879 1,154 Cash and Cash Equivalents - Beginning of year 2,064 910 ------ ------ Cash and Cash Equivalents - End of period $3,943 $2,064 ====== ====== PepsiCo, Inc. and Subsidiaries Condensed Consolidated Balance Sheet (in millions) 12/26/09 12/27/08 -------- -------- Assets (unaudited) Current Assets Cash and cash equivalents $3,943 $2,064 Short-term investments 192 213 Accounts and notes receivable, net 4,624 4,683 Inventories Raw materials 1,274 1,228 Work-in-process 165 169 Finished goods 1,179 1,125 ------- ------- 2,618 2,522 Prepaid expenses and other current assets 1,194 1,324 ------- ------- Total Current Assets 12,571 10,806 Property, plant and equipment, net 12,671 11,663 Amortizable intangible assets, net 841 732 Goodwill 6,534 5,124 Other nonamortizable intangible assets 1,782 1,128 ------- ------- Nonamortizable Intangible Assets 8,316 6,252 Investments in noncontrolled affiliates 4,484 3,883 Other assets 965 2,658 ------- ------- Total Assets $39,848 $35,994 ======= ======= Liabilities and Equity Current Liabilities Short-term obligations $464 $369 Accounts payable and other current liabilities 8,127 8,273 Income taxes payable 165 145 ------- ------- Total Current Liabilities 8,756 8,787 Long-term debt obligations 7,400 7,858 Other liabilities 5,591 6,541 Deferred income taxes 659 226 ------- ------- Total Liabilities 22,406 23,412 Commitments and Contingencies Preferred stock, no par value 41 41 Repurchased preferred stock (145) (138) PepsiCo Common Shareholders' Equity Common stock 30 30 Capital in excess of par value 250 351 Retained earnings 33,805 30,638 Accumulated other comprehensive loss (3,794) (4,694) Repurchased common stock (13,383) (14,122) ------- ------- Total PepsiCo Common Shareholders' Equity 16,908 12,203 Noncontrolling interests 638 476 ------- ------- Total Equity 17,442 12,582 ------- ------- Total Liabilities and Equity $39,848 $35,994 ======= ======= PepsiCo, Inc. and Subsidiaries Supplemental Share and Stock-Based Compensation Data (in millions, except dollar amounts, and unaudited) Quarter Ended Year Ended --------------------- -------------------- 12/26/09 12/27/08 12/26/09 12/27/08 -------- -------- -------- -------- Beginning Net Shares Outstanding 1,559 1,557 1,553 1,605 Options Exercised/ Restricted Stock Units Converted 6 3 12 16 Shares Repurchased - (7) - (68) ----- ----- ----- ----- Ending Net Shares Outstanding 1,565 1,553 1,565 1,553 ===== ===== ===== ===== Weighted Average Basic 1,562 1,554 1,558 1,573 Dilutive securities: Options 17 19 13 23 Restricted Stock Units 4 4 4 4 ESOP Convertible Preferred Stock/Other 1 1 2 2 ----- ----- ----- ----- Weighted Average Diluted 1,584 1,578 1,577 1,602 ===== ===== ===== ===== Average Share Price for the period $60.91 $59.25 $55.30 $66.16 Growth Versus Prior Year 3% (20)% (16)% (3)% Options Outstanding 106 104 112 109 Options in the Money 85 81 72 101 Dilutive Shares from Options 17 19 13 23 Dilutive Shares from Options as a % of Options in the Money 20% 22% 18% 23% Average Exercise Price of Options in the Money $47.92 $45.86 $45.68 $48.45 Restricted Stock Units Outstanding 6 6 6 7 Dilutive Shares from Restricted Stock Units 4 4 4 4 Average Intrinsic Value of Restricted Stock Units Outstanding* $60.98 $63.18 $61.03 $63.14 *Weighted-average intrinsic value at grant date. PepsiCo, Inc. and Subsidiaries Condensed Consolidated Statement of Income (in millions, except per share amounts, and unaudited) COMPARISON OF CORE RESULTS* Quarter Ended Year Ended -------------------------- -------------------------- 12/26/09 12/27/08 Change 12/26/09 12/27/08 Change -------- -------- ------ -------- -------- ------ Net Revenue $13,297 $12,729 4.5% $43,232 $43,251 -% Costs and Expenses Cost of sales 6,293 6,084 3% 20,099 20,264 (1)% Selling, general and administrative expenses 4,983 4,634 8% 15,214 15,075 1% Amortization of intangible assets 21 21 5% 63 64 -% ------ ------ ------ ------ Operating Profit 2,000 1,990 0.5% 7,856 7,848 -% Bottling Equity Income 78 73 6% 376 512 (27)% Interest Expense (112) (124) (11)% (397) (329) 21% Interest Income 23 (12) n/m 67 41 62% ------ ------ ------ ------ Income before Income Taxes 1,989 1,927 3% 7,902 8,072 (2)% Provision for Income Taxes 564 532 6% 2,023 2,161 (6)% ------ ------ ------ ------ Net Income 1,425 1,395 2% 5,879 5,911 (1)% Less: Net Income Attributable to Noncontrolling Interests 3 7 (70)% 33 24 34% ------ ------ ------ ------ Net Income Attributable to PepsiCo $1,422 $1,388 2% $5,846 $5,887 (1)% ====== ====== ====== ====== Diluted Net Income Attributable to PepsiCo per Common Share $0.90 $0.88 2% $3.71 $3.68 1% Average Shares Outstanding 1,584 1,578 1,577 1,602 n/m = not meaningful *Core results are non-GAAP financial measures that exclude the commodity mark-to-market net impact included in corporate unallocated expenses, certain restructuring actions associated with our Productivity for Growth initiative, our share of PBG's restructuring and impairment charges in 2008, costs associated with our proposed mergers with PBG and PAS, as well as our share of their respective merger costs. See schedules A-9 through A-15 for a discussion of these items and reconciliations to the most directly comparable financial measures in accordance with GAAP. PepsiCo, Inc. and Subsidiaries Supplemental Financial Information (in millions and unaudited) COMPARISON OF CORE RESULTS* Quarter Ended Year Ended -------------------------- -------------------------- 12/26/09 12/27/08 Change 12/26/09 12/27/08 Change -------- -------- ------ -------- -------- ------ Net Revenue Frito-Lay North America $3,888 $3,770 3% $13,224 $12,507 6% Quaker Foods North America 585 610 (4)% 1,884 1,902 (1)% Latin America Foods 2,062 1,857 11% 5,703 5,895 (3)% ------- ------- ------- ------- PepsiCo Americas Foods 6,535 6,237 5% 20,811 20,304 2.5% PepsiCo Americas Beverages 2,754 2,774 (1)% 10,116 10,937 (8)% Europe 2,264 2,157 5% 6,727 6,891 (2)% Asia, Middle East & Africa 1,744 1,561 12% 5,578 5,119 9% ------- ------- ------- ------- PepsiCo International 4,008 3,718 8% 12,305 12,010 2.5% ------- ------- ------- ------- Total Net Revenue $13,297 $12,729 4.5% $43,232 $43,251 -% ======= ======= ======= ======= Operating Profit Frito-Lay North America $956 $914 5% $3,260 $3,067 6% Quaker Foods North America 190 191 (1)% 629 613 3% Latin America Foods 301 291 4% 907 937 (3)% ------- ------- ------- ------- PepsiCo Americas Foods 1,447 1,396 4% 4,796 4,617 4% PepsiCo Americas Beverages 522 468 11% 2,188 2,315 (5.5)% Europe 260 244 7% 934 960 (3)% Asia, Middle East & Africa 46 64 (27)% 729 607 20% ------- ------- ------- ------- PepsiCo International 306 308 (0.5)% 1,663 1,567 6% Division Operating Profit 2,275 2,172 5% 8,647 8,499 2% Corporate Unallocated (275) (182) 51% (791) (651) 21% ------- ------- ------- ------- Total Operating Profit $2,000 $1,990 0.5% $7,856 $7,848 -% ======= ======= ======= ======= *Core results are non-GAAP financial measures that exclude the commodity mark-to-market net impact included in corporate unallocated expenses, certain restructuring actions associated with our Productivity for Growth initiative, our share of PBG's restructuring and impairment charges in 2008, costs associated with our proposed mergers with PBG and PAS, as well as our share of their respective merger costs. See schedules A-9 through A-15 for a discussion of these items and reconciliations to the most directly comparable financial measures in accordance with GAAP. Reconciliation of GAAP and Non-GAAP Information (unaudited)

    Division operating profit, core results and core results on a constant currency basis are non-GAAP financial measures as they exclude certain items noted below. However, we believe investors should consider these measures as they are more indicative of our ongoing performance and with how management evaluates our operational results and trends.

    In the quarter and year ended December 26, 2009, we recognized $83 million and $274 million, respectively, of mark-to-market net gains on commodity hedges in corporate unallocated expenses. In the quarter and year ended December 27, 2008, we recognized $227 million and $346 million, respectively, of mark-to-market net losses on commodity hedges in corporate unallocated expenses. We centrally manage commodity derivatives on behalf of our divisions. Certain of these commodity derivatives do not qualify for hedge accounting treatment and are marked to market with the resulting gains and losses recognized in corporate unallocated expenses. These gains and losses are subsequently reflected in division results when the divisions take delivery of the underlying commodity.

    In the quarter and year ended December 26, 2009, we incurred $49 million and $50 million, respectively, of costs associated with the proposed mergers with PBG and PAS, as well as an additional $3 million and $11 million of costs in the quarter and year ended December 26, 2009, respectively, representing our share of the respective merger costs of PBG and PAS, recorded in bottling equity income.

    As a result of our previously initiated Productivity for Growth program, we recorded restructuring and impairment charges of $36 million in the first half of the year ended December 26, 2009. In the fourth quarter of 2008, we recorded restructuring and impairment charges of $543 million in connection with this program. The program includes actions in all segments of the business, including the closure of six plants that we believe will increase cost competitiveness across the supply chain, upgrade and streamline our product portfolio and simplify the organization for more effective and timely decision-making.

    In addition, in the fourth quarter of 2008, PBG implemented a restructuring initiative across all of its geographic segments. PBG also recognized an asset impairment charge related to its business in Mexico. Consequently, in the fourth quarter of 2008, we recorded a non-cash charge of $138 million, included in bottling equity income, as part of recording our share of PBG's financial results.

    Additionally, management operating cash flow is the primary measure management uses to monitor cash flow performance. This is not a measure defined by GAAP. Since net capital spending is essential to our product innovation initiatives and maintaining our operational capabilities, we believe that it is a recurring and necessary use of cash. As such, we believe investors should also consider net capital spending when evaluating our cash from operating activities.

    We believe investors should consider the following non-GAAP financial measures with respect to our fourth quarter results:

    -- Our 2009 net revenue growth on a constant currency basis; -- Our 2009 and 2008 division operating profit and our 2009 division operating profit growth; -- Our 2009 division operating profit excluding the impact of restructuring and impairment charges and costs associated with our proposed mergers with PBG and PAS; our 2008 division operating profit excluding the impact of restructuring and impairment charges; and our 2009 division operating profit growth excluding the impact of the above items, as well as on a constant currency basis; -- Our 2009 total operating profit excluding the impact of restructuring and impairment charges, costs associated with our proposed mergers with PBG and PAS and the mark-to-market net gains on commodity hedges; our 2008 total operating profit excluding the impact of restructuring and impairment charges and the mark-to-market net losses on commodity hedges; and our 2009 total operating profit growth excluding the impact of the above items; and -- Our 2009 effective tax rate excluding the impact of costs associated with our proposed mergers with PBG and PAS and the mark-to-market net gains on commodity hedges. Reconciliation of GAAP and Non-GAAP Information (cont.) (unaudited)

    We believe investors should consider the following non-GAAP financial measures with respect to our full-year results:

    -- Our 2009 net revenue growth on a constant currency basis; -- Our 2009 and 2008 division operating profit and our 2009 division operating profit growth; -- Our 2009 division operating profit excluding the impact of restructuring and impairment charges and costs associated with our proposed mergers with PBG and PAS; our 2008 division operating profit excluding the impact of restructuring and impairment charges; and our 2009 division operating profit growth excluding the impact of the above items, as well as on a constant currency basis; -- Our 2009 total operating profit excluding the impact of restructuring and impairment charges, costs associated with our proposed mergers with PBG and PAS and the mark-to-market net gains on commodity hedges; our 2008 total operating profit excluding the impact of restructuring and impairment charges and the mark-to-market net losses on commodity hedges; and our 2009 total operating profit growth excluding the impact of the above items; -- Our 2009 effective tax rate excluding the impact of restructuring and impairment charges, costs associated with our proposed mergers with PBG and PAS and the mark-to-market net gains on commodity hedges; -- Our 2009 diluted EPS excluding the impact of restructuring and impairment charges, costs associated with our proposed mergers with PBG and PAS and the mark-to-market net gains on commodity hedges; our 2008 diluted EPS excluding the impact of restructuring and impairment charges, mark-to-market net losses on commodity hedges and our share of PBG's restructuring and impairment charges; and our 2009 diluted EPS growth excluding the impact of the above items, on a constant currency basis; and -- Our 2009 management operating cash flow, excluding the impact of a discretionary pension contribution in the first quarter of 2009, cash payments for PBG/PAS merger costs in the fourth quarter of 2009 and restructuring-related cash payments in 2009.

    We are not able to reconcile our full-year projected 2010 core constant currency EPS (including our full-year projected 2010 EPS growth from "base" PepsiCo) to our full-year projected 2010 reported results because we are unable to predict the 2010 full-year impact of foreign exchange or the mark-to-market net gains or losses on commodity hedges due to the unpredictability of future changes in foreign exchange rates and commodity prices. Additionally, with respect to our proposed transactions with PBG and PAS, we are unable to predict the 2010 full-year impact of the gain or loss on previously held equity interests in PBG and PAS, the post-merger one-time impact to earnings of fair value adjustments to acquired inventory, any additional restructuring or integration costs and transaction costs related to the proposed mergers with PBG and PAS due to the uncertainty of the amounts and/or timing of such items. Therefore, we are unable to provide a reconciliation of these measures.

    Reconciliation of GAAP and Non-GAAP Information (cont.) ($ in millions, except per share amounts and as otherwise noted, unaudited) Operating Profit Growth Reconciliation Quarter Ended Year Ended ------------- ---------- 12/26/09 12/26/09 ------------- ---------- Division Operating Profit Growth 39% 8% Impact of Corporate Unallocated 28 8 --- --- Reported Total Operating Profit Growth 67% 16% === === Effective Tax Rate Reconciliation Quarter Ended ---------------------------------- 12/26/09 ---------------------------------- Pre-Tax Income Effective Income Taxes Tax Rate ------- ------ --------- Reported Effective Tax Rate $2,020 $583 28.9% Mark-to-Market Net Gains (83) (34) PBG/PAS Merger Costs 52 15 ------ ---- Effective Tax Rate Excluding above Items $1,989 $564 28.4% ====== ==== Year Ended ------------------------------------ 12/26/09 ------------------------------------ Pre-Tax Income Effective Income Taxes Tax Rate ------- ------ ---------- Reported Effective Tax Rate $8,079 $2,100 26.0% Mark-to-Market Net Gains (274) (101) Restructuring and Impairment Charges 36 7 PBG/PAS Merger Costs 61 16 ------ ------ Effective Tax Rate Excluding above Items $7,902 $2,023* 25.6% ====== ======= *Does not sum due to rounding Diluted EPS Reconciliation Year Ended ---------------------------------- 12/26/09 12/27/08 Growth -------- -------- ------ Reported Diluted EPS $3.77 $3.21 17% Mark-to-Market Net (Gains)/Losses (0.11) 0.14 Restructuring and Impairment Charges 0.02 0.25 PBG's Restructuring and Impairment Charges - 0.07 PBG/PAS Merger Costs 0.03 - ----- ------ Diluted EPS Excluding above Items $3.71 $3.68* 1% ===== ====== Impact of Foreign Currency Translation 5 --- Diluted EPS Excluding above Items, on a constant currency basis 6% === *Does not sum due to rounding Net Cash Provided by Operating Activities Reconciliation (in billions) Year Ended ---------- 12/26/09 ---------- Net Cash Provided by Operating Activities $6.8 Capital Spending (2.1) Sales of Property, Plant and Equipment 0.1 ---- Management Operating Cash Flow 4.7* Discretionary Pension Contribution (After-Tax) 0.6 Restructuring Payments (After-Tax) 0.2 PBG/PAS Merger Cost Payments 0.0 ---- Management Operating Cash Flow Excluding above Items $5.6* ==== *Does not sum due to rounding Reconciliation of GAAP and Non-GAAP Information (cont.) Reported Growth and Growth Excluding the Impact of Restructuring and Impairment Charges, PBG/PAS Merger Costs and Foreign Currency Translation (unaudited) Quarter Ended ------------------------ 12/26/09 ------------------------ Net Operating Revenue Profit ------- --------- Frito-Lay North America ----------------------- Reported Growth 3% 19% Impact of Restructuring and Impairment Charges - (13) --- --- Growth Excluding Impact of Restructuring and Impairment Charges 3 5* Impact of Foreign Currency Translation (1) (1) --- --- Growth Excluding Impact of above Item, on a constant currency basis 2% 4% === === Quaker Foods North America -------------------------- Reported Growth (4)% 18% Impact of Restructuring and Impairment Charges - (19) --- --- Growth Excluding Impact of Restructuring and Impairment Charges (4) (1) Impact of Foreign Currency Translation (1) (1) --- --- Growth Excluding Impact of above Item, on a constant currency basis (5)% (2)% === === Latin America Foods ------------------- Reported Growth 11% 20% Impact of Restructuring and Impairment Charges - (16) --- --- Growth Excluding Impact of Restructuring and Impairment Charges 11 4 Impact of Foreign Currency Translation (1) (1) --- --- Growth Excluding Impact of above Item, on a constant currency basis 10% 3% === === PepsiCo Americas Foods ---------------------- Reported Growth 5% 19% Impact of Restructuring and Impairment Charges - (15) --- --- Growth Excluding Impact of Restructuring and Impairment Charges 5 4 Impact of Foreign Currency Translation (1) (1) --- --- Growth Excluding Impact of above Item, on a constant currency basis 4% 3% === === PepsiCo Americas Beverages -------------------------- Reported Growth (1)% 191% Impact of Restructuring and Impairment Charges - (180) --- ---- Growth Excluding Impact of Restructuring and Impairment Charges (1) 11 Impact of Foreign Currency Translation (1) (1.5) --- ---- Growth Excluding Impact of above Item, on a constant currency basis (2)% 10%* === ==== Europe ------ Reported Growth 5% 33% Impact of Restructuring and Impairment Charges - (26) Impact of PBG/PAS Merger Costs - 1 --- --- Growth Excluding Impact of above Items 5 7* Impact of Foreign Currency Translation (1) 1 --- --- Growth Excluding Impact of above Items, on a constant currency basis 4% 7%* === === Asia, Middle East & Africa -------------------------- Reported Growth 12% (4)% Impact of Restructuring and Impairment Charges - (23) --- --- Growth Excluding Impact of Restructuring and Impairment Charges 12 (27) Impact of Foreign Currency Translation (5) (15) --- --- Growth Excluding Impact of above Item, on a constant currency basis 7% (42)% === ==== *Does not sum due to rounding Reconciliation of GAAP and Non-GAAP Information (cont.) Reported Growth and Growth Excluding the Impact of Restructuring and Impairment Charges, PBG/PAS Merger Costs and Foreign Currency Translation (unaudited) Quarter Ended --------------------------- 12/26/09 --------------------------- Net Operating Revenue Profit ------- --------- PepsiCo International --------------------- Reported Growth 8% 26% Impact of Restructuring and Impairment Charges - (27) ---- --- Growth Excluding Impact of Restructuring and Impairment Charges 8 (0.5)* Impact of Foreign Currency Translation (3) (2) ---- --- Growth Excluding Impact of above Item, on a constant currency basis 5% (3)%* ==== === Total Divisions --------------- Reported Growth 4.5% 39% Impact of Restructuring and Impairment Charges - (33) ---- --- Growth Excluding Impact of Restructuring and Impairment Charges 4.5 5* Impact of Foreign Currency Translation (1.5) (1) ---- --- Growth Excluding Impact of above Item, on a constant currency basis 3% 3.5%* ==== === *Does not sum due to rounding Reconciliation of GAAP and Non-GAAP Information (cont.) Reported Growth and Growth Excluding the Impact of Restructuring and Impairment Charges and Foreign Currency Translation (unaudited) Year Ended ------------------------- 12/26/09 ------------------------- Net Operating Revenue Profit ------- --------- Frito-Lay North America ----------------------- Reported Growth 6% 10% Impact of Restructuring and Impairment Charges - (4) --- --- Growth Excluding Impact of Restructuring and Impairment Charges 6 6 Impact of Foreign Currency Translation 1 0.5 --- --- Growth Excluding Impact of above Item, on a constant currency basis 6%* 7%* === === Quaker Foods North America -------------------------- Reported Growth (1)% 8% Impact of Restructuring and Impairment Charges - (5) --- --- Growth Excluding Impact of Restructuring and Impairment Charges (1) 3 Impact of Foreign Currency Translation 1 - --- --- Growth Excluding Impact of above Item, on a constant currency basis -% 3% === === Latin America Foods ------------------- Reported Growth (3)% 1% Impact of Restructuring and Impairment Charges - (4) --- --- Growth Excluding Impact of Restructuring and Impairment Charges (3) (3) Impact of Foreign Currency Translation 14 16 --- --- Growth Excluding Impact of above Item, on a constant currency basis 10%* 13% === === PepsiCo Americas Foods ---------------------- Reported Growth 2.5% 8% Impact of Restructuring and Impairment Charges - (4) --- --- Growth Excluding Impact of Restructuring and Impairment Charges 2.5 4 Impact of Foreign Currency Translation 4.5 4 --- --- Growth Excluding Impact of above Item, on a constant currency basis 7% 8% === === PepsiCo Americas Beverages -------------------------- Reported Growth (8)% 7% Impact of Restructuring and Impairment Charges - (13) --- --- Growth Excluding Impact of Restructuring and Impairment Charges (8) (5.5)* Impact of Foreign Currency Translation 1 2 --- --- Growth Excluding Impact of above Item, on a constant currency basis (6)% * (3)%* === === Europe ------ Reported Growth (2)% 2% Impact of Restructuring and Impairment Charges - (5) --- --- Growth Excluding Impact of Restructuring and Impairment Charges (2) (3) Impact of Foreign Currency Translation 12 16 --- --- Growth Excluding Impact of above Item, on a constant currency basis 10% 13% === === Asia, Middle East & Africa -------------------------- Reported Growth 9% 21% Impact of Restructuring and Impairment Charges - (0.5) --- ---- Growth Excluding Impact of Restructuring and Impairment Charges 9 20* Impact of Foreign Currency Translation 3 3 --- --- Growth Excluding Impact of above Item, on a constant currency basis 12% 23% === === *Does not sum due to rounding Reconciliation of GAAP and Non-GAAP Information (cont.) Reported Growth and Growth Excluding the Impact of Restructuring and Impairment Charges and Foreign Currency Translation (unaudited) Year Ended ----------------------- 12/26/09 ----------------------- Net Operating Revenue Profit ------- --------- PepsiCo International --------------------- Reported Growth 2.5% 10% Impact of Restructuring and Impairment Charges - (3) --- --- Growth Excluding Impact of Restructuring and Impairment Charges 2.5 6* Impact of Foreign Currency Translation 8 11 --- --- Growth Excluding Impact of above Item, on a constant currency basis 11%* 17% === === Total Divisions --------------- Reported Growth -% 8% Impact of Restructuring and Impairment Charges - (6) --- --- Growth Excluding Impact of Restructuring and Impairment Charges - 2 Impact of Foreign Currency Translation 5 5 --- --- Growth Excluding Impact of above Item, on a constant currency basis 5% 6%* === === *Does not sum due to rounding

    PepsiCo, Inc.

    CONTACT: Investor: Lynn A. Tyson, Senior Vice President, Investor
    Relations, +1-914-253-3035, Lynn.Tyson@pepsi.com, Media: Dave DeCecco,
    Director, Media Bureau, +1-914-253-2655, David.DeCecco@pepsi.com

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




    SAIC Awarded $12 Million Delivery Order to Develop U.S. Army Aviation Crew Member SimulatorsCompany to Design and Develop First Integrated Helicopter Crew Member Simulators

    MCLEAN, Va. and SAN DIEGO, Feb. 11 /PRNewswire-FirstCall/ -- Science Applications International Corporation (SAIC) today announced that it was awarded a delivery order by the U.S. Army's Program Executive Office for Simulation, Training and Instrumentation (PEO STRI) to develop the first integrated crew member simulators for CH-47 and UH-60 helicopters under the Non-rated Crew Member Manned Module (NCM3) program. The NCM3 simulators will integrate with the Army's Aviation Combined Arms Tactical Trainer (AVCATT) simulators. The contract has a 28 month base period of performance, a single option for a second variant, and a total value of more than $12 million if the option is exercised. Work will be performed primarily in Orlando, Fla. The delivery order was awarded under the second STRI (simulation, training and instrumentation) Omnibus Contract (STOC II).

    PEO STRI's NCM3 program provides a collective training system to meet aviation crew member training requirements. The NCM3 is a transportable, multi-station, virtual simulation device designed to support individual, crew and collective training. Under the delivery order, SAIC will design, develop, integrate, test, deliver and maintain two mobile variants equipped with helicopter crew member simulator modules to support gunnery and crew coordination training.

    "While prototype crew member simulators have been available, the cost-effective development of full-production integrated simulators for helicopter crew members is a first, enabling non-rated crew members to train on critical, coordinated tasks like gunnery, sling load and hoist operations with pilots," said Beverly Seay, SAIC senior vice president and business unit general manager. "This delivery order expands our virtual simulation product line in aviation training, and enables us to help PEO STRI ensure that America's warfighters receive the best training possible."

    About SAIC

    SAIC is a FORTUNE 500® scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The company's approximately 45,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. Headquartered in McLean, Va., SAIC had annual revenues of $10.1 billion for its fiscal year ended January 31, 2009. For more information, visit http://www.saic.com/. SAIC: From Science to Solutions®

    Statements in this announcement, other than historical data and information, constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC's Annual Report on Form 10-K for the period ended January 31, 2009, and other such filings that SAIC makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.

    Contact: Melissa Koskovich Laura Luke (703) 676-6762 (703) 676-6533 Melissa.l.koskovich@saic.com laura.luke@saic.com

    SAIC

    CONTACT: Melissa Koskovich, +1-703-676-6762,
    Melissa.l.koskovich@saic.com, or Laura Luke, +1-703-676-6533,
    laura.luke@saic.com

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




    Corinthian Colleges to Present at the Credit Suisse 12th Annual Global Services Growth Conference

    SANTA ANA, Calif., Feb. 11 /PRNewswire-FirstCall/ -- Corinthian Colleges, Inc. will present an overview of the company at the Credit Suisse 12th Annual Global Services Conference on Tuesday, February 23, 2010 at 9:00 a.m. MST. Peter Waller, Corinthian's Chief Executive Officer, and Ken Ord, Chief Financial Officer, will make the presentation. The conference is being held at the Arizona Biltmore Resort and Spa located in Phoenix, AZ.

    The presentation will be webcast live. To access the webcast, go to the investor relations section of Corinthian's website, http://www.cci.edu/. The presentation will be archived and available following the event.

    About Corinthian Colleges, Inc.

    Corinthian Colleges, Inc. is one of the largest post-secondary education companies in North America. The Company's mission is to prepare students for careers in demand or for advancement in their chosen field. Through its Everest, WyoTech and Heald campuses, Corinthian offers diploma and associate degree programs in a variety of high-demand occupational areas, including healthcare, business, criminal justice, transportation technology and maintenance, construction trades and information technology.

    More information can be found on Corinthian's website at http://www.cci.edu/.

    Contacts: Investors: Anna Marie Dunlap SVP Investor Relations/Corporate Communications Corinthian Colleges, Inc. 714-424-2678 Media: Robert Jaffe PondelWilkinson Inc. 310-279-5969

    Corinthian Colleges, Inc.

    CONTACT: Investors, Anna Marie Dunlap, SVP Investor Relations/Corporate
    Communications of Corinthian Colleges, Inc., +1-714-424-2678; or Media, Robert
    Jaffe of PondelWilkinson Inc., +1-310-279-5969, for Corinthian Colleges, Inc.

    Web Site: http://www.cci.edu/




    Point.360 Invites You to Joint Its Second Quarter Conference Call

    BURBANK, Calif., Feb. 5 /PRNewswire-FirstCall/ -- In conjunction with Point.360's Results for 2nd Quarter Ended December 31, 2009 release, you are invited to its conference call that will be broadcasted live over the internet on Thursday, February 11, 2010 at 1:00 p.m., Eastern Time. Please join Haig Bagerdjian, Chairman, President and Chief Executive Officer and Alan Steel, Executive Vice President, Finance and Administration of Point.360.

    What: Results for 2nd Quarter Ended December 31, 2009 results When: 1:00 p.m. Eastern Time, Thursday, February 11, 2010 Where: http://www.point360.com/ Click on "Results for 2nd Quarter Ended December 31, 2009" How: Live over the Internet -Simply log on to the Web at the address above listed. By phone: Dial 1-800-227-9428, Confirmation Code 3568405 Title: 2nd Quarter Fiscal 2010 Results Contact: Alan R. Steel at (818) 565-1444

    Point.360 (PTSX) is a value add service organization specializing in content creation, manipulation and distribution processes integrating complex technologies to solve problems in the life cycle of Rich Media. With seven locations in greater Los Angeles and New York, Point.360 performs high and standard definition audio and video post production, creates virtual effects and archives and distributes physical and electronic Rich Media content worldwide serving studios, independent producers, advertising agencies, corporations, non-profit organizations and governmental agencies.

    If you are unable to participate during the live web cast, the call will be archived on the Point.360 website http://www.point360.com/news_investors.html. Click on the "Results for the 2nd Quarter Ended December 31, 2009" button.

    Point.360

    CONTACT: Alan R. Steel of Point.360, +1-818-565-1444

    Web Site: http://www.point360.com/
    http://www.point360.com/




    Webcast Alert: Trinity Industries, Inc. Announces Fourth Quarter 2009 Results Conference Call

    DALLAS, Feb. 11 /PRNewswire-FirstCall/ -- Trinity Industries announces the following Webcast:

    What: Trinity Industries, Inc. Fourth Quarter 2009 Results Conference Call Webcast When: February 18, 2010 @ 11:00 AM Eastern Time Where: http://www.trin.net/invsrela/confcall.html How: Live over the Internet --Simply log on to the web at the address above. Contact: James E. Perry, Vice President, Finance and Treasurer

    Trinity Industries, Inc., headquartered in Dallas, Texas, is a multi-industry company that owns a variety of market-leading businesses which provide products and services to the industrial, energy, transportation, and construction sectors. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group, and the Energy Equipment Group. For more information, visit: http://www.trin.net/.

    If you are unable to participate during the live webcast, the call will be archived on the Web site http://www.trin.net/.

    Trinity Industries, Inc.

    CONTACT: James Perry, +1-214-589-8412, James.Perry@trin.net for Trinity
    Industries, Inc.

    Web Site: http://www.trin.net/




    Torchmark Corporation Announces Fourth Quarter 2009 Earnings Release and Conference Call

    MCKINNEY, Texas, Feb. 8 /PRNewswire-FirstCall/ -- Torchmark Corporation will release Fourth Quarter 2009 earnings after the market closes on Wednesday, February 10, 2010. In conjunction with Torchmark's Fourth Quarter 2009 Earnings Release, you are invited to listen to a conference call that will be broadcast live over the Internet on Thursday, February 11, 2010 at 12:00 p.m. Eastern. At that time a copy of the Company's Q4-2009 earnings press release and any other financial and statistical information about the quarter will be available on the Company's website at http://www.torchmarkcorp.com/ on the Investor Relations page.

    Fourth Quarter Conference Call Thursday, February 11, 2010 12:00 p.m. (Eastern) Listen live and as a replay at http://www.torchmarkcorp.com/ on the Investor Relations page under "Conference Calls" or Call-In Number: 913-312-0415 (Pass Code: Torchmark)

    Torchmark Corporation is a holding company specializing in life and supplemental health insurance for "middle income" Americans marketed through multiple distribution channels including direct response, and exclusive and independent agencies. Torchmark has several nationally recognized insurance subsidiaries. Globe Life And Accident is a direct-response provider of life insurance known for its administrative efficiencies. American Income Life provides individual life insurance to labor union members. Liberty National Life is one of the oldest traditional life insurers in the Southeast. United American is a consumer-oriented provider of supplemental life and health insurance.

    Torchmark Corporation

    CONTACT: Mike Majors of Torchmark Corporation, +1-972-569-3627, Fax,
    +1-972-569-3282, tmkir@torchmarkcorp.com

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

    Company News On-Call: http://www.prnewswire.com/comp/885425.html




    YM BioSciences presents CYT387 and CYT997 data at international cancer conference

    MISSISSAUGA, ON, Feb. 11 /PRNewswire-FirstCall/ -- YM BioSciences Inc. (NYSE Amex: YMI, TSX:YM), is presenting posters on its JAK1/2 inhibiting small molecule (CYT387) and on its novel vascular disrupting agent (CYT997) at the Lorne Cancer Conference in Lorne, Victoria, Australia. CYT387 is an oral JAK1/2 inhibitor, originating from the seminal discovery of JAK1 and JAK2 kinases by Dr. Andrew Wilks, the founder of Cytopia Limited, now YM Australia. CYT997 is an orally-available agent with dual mechanisms of vascular disruption and cytotoxicity and has the potential to be broadly active against a range of tumor types.

    The CYT387 poster, "A novel, potent and selective dual inhibitor of JAK1 and JAK2 for treatment of myeloproliferative neoplasms and cancer" was presented Thursday, February 11th at 7:30 pm AEDT.

    Dr. Chris Burns, Research Director at YM Australia, presented the poster on CYT387 which is currently being investigated in a Phase I/II clinical trial for myelofibrosis at Mayo Clinic, in Rochester, MN. The poster describes important preclinical data obtained for CYT387 including comparison to other reported JAK inhibitors. In a number of different assays CYT387 is shown to be a potent and selective JAK1/JAK2 inhibitor, with a promising activity profile for treatment of myeloproliferative neoplasms (MPNs) and other diseases.

    The CYT997 poster, "Vascular targeting and anti-tumour efficacy of orally administered CYT997 in combination with cisplatin in a DLD-1 human colon adenocarcinoma xenograft model." is being presented Friday, February 12th at 8:00pm AEDT (4:00am EST).

    Dr. Andrew Powell, Preclinical Project Manager at YM Australia, will present the poster on the vascular disrupting agent, CYT997, which is currently in a Phase II trial for glioblastoma multiforme, a brain cancer with very poor prognosis, despite multimodal treatment. The poster outlines data from preclinical studies demonstrating the profound vascular disrupting effects achieved with CYT997 through repeated oral daily dosing. In addition, data will be presented showing that a combination of the conventional chemotherapeutic agent cisplatin with daily dosing of CYT997 leads to an improved response in a model of colon cancer.

    Additional information on the Lorne Cancer Conference is available at http://www.lornecancer.org/. Abstracts for both posters will be posted at the time of presentation at http://www.ymbiosciences.com/.

    About YM BioSciences

    YM BioSciences Inc. is a life sciences product development. Together with the products from YM Australia (formerly Cytopia Limited), the Company is currently developing four late-stage products: nimotuzumab, an EGFR-targeting Affinity-Optimized Antibody(TM); CYT 387, a JAK 1/2 small molecule inhibitor, CYT 997, a potent, vascular disrupting agent and AeroLEF(R), a proprietary, inhaled-delivery composition of free and liposome-encapsulated fentanyl. YM has proven regulatory and clinical trial expertise and a diversified business model designed to reduce risk while advancing clinical products toward international approval, marketing and commercialization.

    Nimotuzumab is a humanized monoclonal antibody in development worldwide, targeting multiple tumor types primarily in combination with radiation and chemoradiation. It is importantly differentiated from all other currently marketed EGFR-targeting agents due to its remarkably benign side-effect profile. Nimotuzumab's anti-tumor activity has led to its approval for marketing in 23 countries. In more than 9,000 patients reported as having been treated with nimotuzumab worldwide to date, Grade IV incidents of radiation dermatitis and incidents of severe rash have been only rarely observed and reports of the other severe side-effects that are typical of EGFR-targeting molecules have been equally rare. Nimotuzumab is licensed to YM's majority-owned, Canadian subsidiary, CIMYM BioSciences Inc., by CIMAB S.A., and was developed at the Center of Molecular Immunology. The products discovered by YM's recently acquired Australian subsidiary, YM Australia (formerly Cytopia Limited), include the JAK 1/2 inhibitor CYT387, and the novel VDA molecule CYT997. Both were discovered internally at Cytopia based on research led by Dr Andrew Wilks who identified the JAK 1/2 kinase enzymes. Both products are currently in clinical development. YM is developing AeroLEF for the treatment of moderate to severe acute pain. The product is differentiated from other approaches using opioids because patients are able to individually control the analgesia required for their differing intensities of pain. AeroLEF has met all endpoints in each of its trials including a randomized Phase II trial and is currently being prepared for late-stage development internationally.

    This press release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting. Certain of the assumptions made in preparing forward-looking statements include but are not limited to the following: that nimotuzumab will continue to demonstrate a competitive safety profile in ongoing and future clinical trials; that JAK 1/2 and the VDA molecule will generate positive efficacy and safety data in future clinical trials; AeroLEF(R) will continue to generate positive efficacy and safety data in future clinical trials; that and that YM and its various partners will complete their respective clinical trials within the timelines communicated in this release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    YM BioSciences Inc.

    CONTACT: Enquiries: James Smith, the Equicom Group Inc., Tel. (416)
    815-0700 x 229, Email: jsmith@equicomgroup.com; Thomas Fechtner, the Trout
    Group LLC, Tel. (646) 378-2931, Email: tfechtner@troutgroup.com




    Alliance Data's Canadian Loyalty Business Signs Multi-Year Renewal Agreement With BudgetBudget Renews as Sponsor and Reward Supplier with the AIR MILES(R) Reward Program; Expands Opportunity for Collectors to Earn Reward Miles

    DALLAS, Feb. 11 /PRNewswire/ -- Alliance Data Systems Corporation , a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced that it has signed multi-year renewal agreements with Budgetcar, Inc., a subsidiary of Avis Budget Group, Inc., as a national sponsor and reward supplier in Alliance Data's Canadian AIR MILES® Reward Program. Budget has been a sponsor and rewards supplier in the AIR MILES coalition since 2007, issuing reward miles to Canadian AIR MILES Collectors who rent vehicles in Canada. Under terms of the sponsor renewal agreement, Budget will also issue reward miles to collectors who rent cars in the United States, effective by the end of the first quarter, 2010. Under terms of the reward supplier renewal agreement, collectors can now also redeem reward miles for U.S. car rentals.

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

    The AIR MILES Reward Program is Canada's premier coalition loyalty program, with approximately two-thirds of Canadian households actively collecting reward miles. AIR MILES collectors earn reward miles at more than 100 leading brand-name sponsors representing thousands of retail and service locations across Canada. AIR MILES reward miles can be redeemed for more than 1,200 different rewards, such as travel, movie passes, entertainment attractions, and electronic merchandise.

    "The multi-year renewal agreements - and specifically the new opportunity for Collectors to earn reward miles for bookings in the United States - enables both Budget and the AIR MILES Reward Program to increase customer transaction frequency and issue incremental reward miles," said Bryan Pearson, president, Alliance Data's LoyaltyOne business. "Budget's ongoing participation in our coalition loyalty program represents a strategic advantage for one of the world's best-known brands in the highly competitive car and truck rental industry."

    "We are pleased to extend our relationship with Alliance Data and continue our participation in the AIR MILES program," said Bill Boxberger, vice president and general manager of Avis Budget Group, Canada. "Budget customers depend on us for quality vehicles and great customer service. They are sure to value the AIR MILES they earn when renting with Budget."

    About Budget

    Budget is one of the world's best-known car rental brands with approximately 2,750 locations in more than 120 countries. Budget is owned by Avis Budget Group, Inc. , which operates and franchises the brand throughout the world. For further information, visit http://www.budget.com/.

    About LoyaltyOne(TM)

    LoyaltyOne works with more than 100 of North America's leading brands in the retail, financial services, grocery, petroleum retail, travel, and hospitality industries to profitably change customer behavior. Through a team of businesses including Canada's AIR MILES Reward Program, COLLOQUY, Precima, LoyaltyOne Consulting and Direct Antidote, LoyaltyOne designs, delivers, and manages a suite of loyalty marketing services -- consumer data, customer-centric retail strategies, direct-to-consumer marketing, loyalty consulting, and more. LoyaltyOne is part of the Alliance Data family of companies. For over 30 years, Alliance Data has helped its clients build more profitable, more loyal relationships with their customers. More information is available at http://www.loyalty.com/.

    About Alliance Data

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

    Alliance Data's Safe Harbor Statement/Forward Looking Statements

    This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may use words such as "anticipate," "believe," "estimate," "expect," "intend," "predict," "project" and similar expressions as they relate to us or our management. When we make forward-looking statements, we are basing them on our management's beliefs and assumptions, using information currently available to us. Although we believe that the expectations reflected in the forward-looking statements are reasonable, these forward-looking statements are subject to risks, uncertainties and assumptions, including those discussed in our filings with the Securities and Exchange Commission.

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

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

    Photo: http://www.newscom.com/cgi-bin/prnh/20051024/ADSLOGO
    AP Archive: http://photoarchive.ap.org/
    PRN Photo Desk, photodesk@prnewswire.com Alliance Data Systems Corporation

    CONTACT: Alliance Data: Julie Prozeller - Investors/Analysts, FD,
    +1-212-850-5721, alliancedata@fd.com; Shelley Whiddon, Media, +1-972-348-4310,
    shelley.whiddon@alliancedata.com; Budget: Alice Pereira, +1-973-496-6113,
    alice.pereira@avisbudget.com

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




    Cadence Pharmaceuticals Receives Complete Response Letter from FDA for Intravenous Acetaminophen NDA-- No new studies requested -- -- Cadence to Host Conference Call and Webcast on Thursday at 8:30 a.m. ET --

    SAN DIEGO, Feb. 11 /PRNewswire-FirstCall/ -- Cadence Pharmaceuticals, Inc. announced today that the U.S. Food and Drug Administration (FDA) has issued a Complete Response letter to its New Drug Application (NDA) for intravenous (IV) acetaminophen.

    In the Complete Response letter, the FDA only indicated that deficiencies were observed during the FDA's facility inspection of Cadence's third party manufacturer, which was completed on February 5, 2010. The FDA did not cite any safety or efficacy issues, nor did it request any additional studies to be conducted prior to approval.

    The Company's third party manufacturer intends to respond promptly to the observations, and Cadence plans to request a meeting with the FDA to ensure that the deficiencies have been adequately addressed to meet the requirements for NDA approval.

    The FDA has also informed the Company that OFIRMEV(TM) has been determined to be an acceptable trade name for IV acetaminophen. The Company is very pleased with label discussions to date and continues to seek approval of OFIRMEV for the management of pain and the reduction of fever in adults and children.

    "Cadence is committed to making this important new medicine available to patients and will continue to work closely with the FDA and our third party manufacturer to ensure that the observations are addressed as quickly as possible," said Ted Schroeder, President and CEO of Cadence.

    About OFIRMEV (acetaminophen) Injection

    OFIRMEV is Cadence Pharmaceuticals' proprietary intravenous formulation of acetaminophen. Acetaminophen is the most widely used medication for the treatment of pain and fever in the United States and is available in more than 600 combination and single-ingredient prescription and over-the-counter products. Cadence acquired the exclusive rights to OFIRMEV in the United States and Canada in 2006 from Bristol-Myers Squibb, which markets the product as Perfalgan® in Europe and other parts of the world. IV acetaminophen is approved in approximately 80 countries, including major markets in Europe, where the product is the market leader among all injectable analgesics. Approximately 90 million vials of IV acetaminophen were sold in Europe in 2008 representing an increase of approximately 13 percent over 2007.

    The NDA for OFIRMEV includes data from two pivotal clinical trials for the treatment of acute pain in patients following orthopedic surgery and abdominal laparoscopic surgery and one pivotal clinical trial for the treatment of fever. The NDA is further supported by data from a total of nine placebo-controlled clinical trials, four active-controlled clinical trials, and seven other safety or pharmacokinetic clinical trials. The submission includes safety data from 1,375 patients who received IV acetaminophen in clinical trials, including 355 pediatric patients, from premature neonates to adolescents, and data from safety reports that collectively represent more than 53 million patient exposures to IV acetaminophen in countries outside the United States.

    Conference Call and Webcast Details

    Cadence management will host a conference call on Thursday, February 11, 2010 at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) and interested investors may participate in the conference call by dialing (877) 303-9145 (domestic) or (760) 536-5203 (international). To access the webcast, please visit the company's website at http://www.cadencepharm.com/ and go to the Investor Relations page. A replay of the webcast will be available approximately two hours after the call.

    About Cadence Pharmaceuticals

    Cadence Pharmaceuticals is a biopharmaceutical company focused on in-licensing, developing and commercializing proprietary product candidates principally for use in the hospital setting. For more information about Cadence, please visit http://www.cadencepharm.com/.

    Forward-Looking Statements

    Statements in this press release that are not a description of historical facts are forward-looking statements, including statements containing words such as "believes," "seeks," "anticipates," "planning," "will," and "potential," and similar expressions. For example, statements regarding the potential for obtaining approval of the NDA for OFIRMEV, the FDA's acceptance of the trade name and the potential for obtaining desirable labeling claims for this product candidate, are forward-looking statements. All such forward-looking statements are based on Cadence's current beliefs and expectations, and should not be regarded as a representation by Cadence that any of its plans will be achieved. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent in the company's business, including, without limitation: the company's reliance on its only product candidate, OFIRMEV, and the possibility that OFIRMEV may not be approved on a timely basis, or at all; the possibility that the company may not yet fully understand all of the corrective actions that will be required to resolve deficiencies identified during the inspection of the manufacturing facility for OFIRMEV, and that Cadence will experience significant delays and incur additional costs in order to fully resolve such deficiencies; the potential that further FDA scrutiny of the manufacturing site may raise additional issues that must be resolved prior to obtaining approval of the NDA, causing further delays and cost increases; intense competition from existing and new products, which could diminish the commercial potential for OFIRMEV; the possibility that the patent rights covering OFIRMEV may not be sufficient to preclude other intravenous formulations of acetaminophen from being developed by competitors; the potential for Cadence to require substantial additional funding in order to complete the necessary corrective actions at the manufacturing site for OFIRMEV, obtain regulatory approval for and commercialize this product candidate, and the risk that the company may not be able to raise sufficient capital when needed, or at all; the impact of any such financing activity on the level of Cadence's stock price; and other risks detailed in Cadence's prior press releases as well as in Cadence's periodic public filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and Cadence undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.

    Cadence(TM) and OFIRMEV(TM) are trademarks of Cadence Pharmaceuticals, Inc. Perfalgan® is a registered trademark of Bristol-Myers Squibb Company.

    Contacts: INVESTORS MEDIA Cadence Pharmaceuticals, Inc. WCG William R. LaRue, SVP and Chief Financial Officer Aimee Corso 858-436-1400 310-780-2661 blarue@cadencepharm.com acorso@wcgworld.com

    Cadence Pharmaceuticals, Inc.

    CONTACT: Investors, William R. LaRue, SVP and Chief Financial Officer of
    Cadence Pharmaceuticals, Inc., +1-858-436-1400, blarue@cadencepharm.com;
    Media, Aimee Corso of WCG, +1-310-780-2661, acorso@wcgworld.com

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




    Tokyo High Court Grants Stay of JFTC Order

    SAN DIEGO, Feb. 11 /PRNewswire-FirstCall/ -- Qualcomm Incorporated , a leading developer and innovator of advanced wireless technologies, products and services, today announced that the Tokyo High Court stayed the enforcement of the Japan Fair Trade Commission's (JFTC) cease and desist order issued September 30, 2009 relating to Qualcomm's license agreements with Japanese manufacturers. The stay will remain in effect through the JFTC's full evidentiary hearing on the merits of the order and until the JFTC issues its final decision following the hearing. The first hearing before the JFTC is scheduled to be held on February 17, 2010. The proceeding may continue for several years. A decision by the JFTC following the full hearing proceeding may be appealed to the Japanese courts.

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

    http://www.qualcomm.com/ Blog: http://www.qualcomm.com/blog Twitter: http://www.twitter.com/qualcomm Facebook: http://www.facebook.com/qualcomm

    Qualcomm is a registered trademark of Qualcomm Incorporated. All other trademarks are the property of their respective owners.

    Qualcomm Contacts: Tina Asmar, Corporate Communications Phone: 1-858-845-5959 Email: corpcomm@qualcomm.com Christine Trimble, Public Affairs Phone: 1-858-845-5959 Email: public.affairs@qualcomm.com Warren Kneeshaw, Investor Relations Phone: 1-858-658-4813 Email: ir@qualcomm.com

    Qualcomm Incorporated

    CONTACT: Tina Asmar, Corporate Communications, +1-858-845-5959,
    corpcomm@qualcomm.com, or Christine Trimble, Public Affairs, +1-858-845-5959,
    public.affairs@qualcomm.com, or Warren Kneeshaw, Investor Relations,
    +1-858-658-4813, ir@qualcomm.com, all of Qualcomm Incorporated

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




    Advanced Energy(R) Solaron(R) PV Inverters Selected for San Francisco Sunset Reservoir 5 MW Solar ProjectIndustry-Leading Efficiency Ratings and Lowest LCOE Fuel Momentum for Solaron

    FORT COLLINS, Colo., Feb. 11 /PRNewswire-FirstCall/ -- Advanced Energy Industries, Inc. , today announced its Solaron® PV inverters have been selected to power the San Francisco Sunset Reservoir 5 MW solar project. The project was awarded to Advanced Energy by Recurrent Energy, an independent power producer and a leading developer of solar power projects. Recurrent Energy will own and operate the solar power system, and is developing the project in partnership with the San Francisco Public Utilities Commission. The Solaron PV inverters were selected due to their record-setting efficiency ratings, field-proven LCOE (Levelized Cost Of Energy) advantages, and Advanced Energy's outstanding customer service.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20030825/AEISLOGO)

    Dr. Hans Betz, chief executive officer of Advanced Energy, noted, "We are proud to be selected by Recurrent Energy to collaborate with them on this landmark project. Advanced Energy's Solaron PV inverters have a strong reputation for optimized efficiency and the highest level of reliability for large-scale utilities. The project demonstrates the City of San Francisco's commitment to renewable energy, and we are pleased to be able to help them achieve their goals."

    The 5 MW solar plant is being constructed on the roof of San Francisco's largest reservoir, located in the city's Sunset district. Construction is scheduled to begin this winter and is expected to be completed in 2010. Upon completion, the project will consist of 25,000 solar panels that span approximately 12 acres, making it one of the country's largest municipal solar projects. The system will more than triple the City's available solar energy which can be used at numerous municipal facilities, including the San Francisco Airport, MUNI light rail system, the General Hospital and city schools.

    For more information on Advanced Energy's Solaron inverter solutions, please visit http://www.aesolaron.com/.

    About Advanced Energy

    Advanced Energy is a global leader in innovative power and control technologies for high-growth, thin-film manufacturing and solar-power generation. Advanced Energy is headquartered in Fort Collins, Colorado, with dedicated support and service locations around the world. For more information, go to http://www.advanced-energy.com/.

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

    CONTACT: Richard Roth, Vice President, Marketing of Advanced Energy
    Industries, Inc., +1-970-407-6017

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




    ENER1 Fourth Quarter 2009 Earnings Call Scheduled for March 11

    NEW YORK, Feb. 11 /PRNewswire-FirstCall/ -- ENER1, Inc. will release its fourth quarter results for 2009 on Thursday, March 11, after the market close. Management will conduct a conference call on the same day at 5:00 p.m. Eastern Standard Time to discuss the company's results and strategic outlook for 2010.

    The call is being webcast by Thomson Financial and can be accessed on the home page of Ener1's website at http://www.ener1.com/.

    To participate in the conference call, please dial 888-679-8033 from within the United States, or 617-213-4846 from outside the United States. The participant pass code is 43474561.

    Participants are urged to dial into the call at least ten minutes prior to the call to register, or may preregister for the call at: http://tinyurl.com/ydoa2v8

    Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference and will bypass the operator upon connection.

    A recording of the call will be available until March 18, 2010. To access the recording, please dial 888-286-8010 from within the United States, or 617-801-6888 from outside the United States. The participant pass code is 61299330.

    About Ener1, Inc.

    Ener1 develops and manufactures compact, high performance lithium-ion batteries to power the next generation of hybrid, plug-in hybrid and pure electric vehicles. The publicly traded company is led by an experienced team of engineers and energy system experts at its EnerDel subsidiary located in Indiana. In addition to the automobile market, applications for Ener1 lithium-ion battery technology include the military, grid storage and other growing markets. Ener1 also develops commercial fuel cell products through its EnerFuel subsidiary and nanotechnology-based materials and manufacturing processes for batteries and other applications through its NanoEner subsidiary.

    Safe Harbor Statement

    Certain statements made in this press release constitute forward-looking statements that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. All forward-looking statements speak only as of the date of this press release and the company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

    INVESTOR RELATIONS Rachel Carroll ENER1, Inc. Phone: 212 920 3500 Email: rcarroll@ener1.com MEDIA RELATIONS Jon Coifman Waggener Edstrom Worldwide Phone: 212 551 4815 Email: jcoifman@waggeneredstrom.com

    Ener1, Inc.

    CONTACT: Rachel Carroll, ENER1, Inc., +1-212-920-3500,
    rcarroll@ener1.com; Media, Jon Coifman, Waggener Edstrom Worldwide,
    +1-212-551-4815, jcoifman@waggeneredstrom.com

    Web Site: http://www.ener1.com/




    Progress Energy Announces 2009 Fourth-Quarter and Full-Year Results; Affirms Full-Year 2010 Earnings GuidanceHighlights:Fourth Quarter 2009 - Reports fourth-quarter GAAP earnings of $0.59 per share, compared to $0.41 per share for the same period last year - Reports fourth-quarter ongoing earnings of $142 million, or $0.50 per share, compared to $123 million, or $0.47 per share, for the same period last yearFull Year 2009 - Reports 2009 GAAP earnings of $2.75 per share, compared to $3.17 per share in 2008, primarily driven by the activities related to discontinued non-utility businesses - Reports 2009 ongoing earnings of $846 million, or $3.03 per share, compared to $776 million, or $2.96 per share, for the same period last year - Affirms 2010 ongoing earnings guidance of $2.85 to $3.05 per share

    RALEIGH, N.C., Feb. 11 /PRNewswire-FirstCall/ -- Progress Energy announced fourth-quarter reported GAAP earnings of $164 million, or $0.59 per share, compared with reported GAAP earnings of $107 million, or $0.41 per share, for the same period last year. Fourth-quarter ongoing earnings were $142 million, or $0.50 per share, compared to $123 million, or $0.47 per share, last year. The significant drivers in ongoing earnings were increased revenues for interim and limited rate relief, favorable returns on nuclear and environmental investments and lower depreciation and amortization, partially offset by increased O&M. (See the discussion later in this release for a reconciliation of ongoing earnings per share to reported GAAP earnings per share.)

    (Logo: http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-c )

    Full-year reported GAAP earnings were $767 million, or $2.75 per share, compared with reported GAAP earnings of $830 million, or $3.17 per share, for the same period last year. Full-year ongoing earnings were $846 million, or $3.03 per share, compared to $776 million, or $2.96 per share, last year. The company benefited from increased revenues for interim and limited rate relief, favorable returns on nuclear and environmental investments and favorable weather, partially offset by lower retail growth and usage and share dilution. (See the discussion later in this release for a reconciliation of ongoing earnings per share to reported GAAP earnings per share.)

    "In the extremely tough economy of 2009, Progress Energy aggressively managed its costs and met its financial goals while reliably and responsibly serving customers," said Bill Johnson, chairman, president and CEO. "The still-sluggish economy will make 2010 another challenging year, and the recent regulatory decision in Florida exacerbates that challenge. But we are working in a focused, constructive way to meet our short-term priorities while also creating long-term value for our customers and shareholders. I believe strongly in the ability of our employees and the future growth prospects of the communities we serve."

    Progress Energy affirms its 2010 ongoing earnings guidance range of $2.85 to $3.05 per share. The ongoing earnings guidance excludes the impact, if any, from discontinued operations, CVO mark-to-market adjustments, potential impairments, valuation allowances and plant retirement charges. Progress Energy is not able to provide a corresponding GAAP equivalent for the 2010 earnings guidance due to the uncertain nature and amount of these adjustments.

    Progress Energy will host a conference call and webcast at 10 a.m. ET today to review fourth-quarter and full-year 2009 financial performance, as well as discuss 2010 earnings guidance and provide an overall business update. Additional details are provided at the end of this earnings release.

    See pages 3-6 for detailed fourth-quarter and full-year 2009 earnings variance analyses for Progress Energy Carolinas (PEC), Progress Energy Florida (PEF) and Corporate and Other Businesses segments.

    RECENT DEVELOPMENTS Financial and Regulatory -- The Florida Public Service Commission (FPSC) ruled on PEF's request for a $500 million increase in base rates. The FPSC denied any increase in base rates above the $132 million limited rate relief that was approved in July 2009 for placing the repowered Bartow Plant in service. -- Filed with the FPSC a status update regarding the Crystal River Unit 3 (CR3) steam generator replacement outage, which currently estimates that all repairs will be completed so that CR3 will return to service by mid-2010. -- Received final orders from the FPSC for all of PEF's proposed 2010 recovery for fuel, environmental and energy-efficiency costs. -- Filed with the FPSC a motion for reconsideration of the order setting PEF's 10-year energy conservation goals. -- Received approval from the North Carolina Utilities Commission (NCUC) to decrease the fuel component of customer rates and adjust the components of energy-efficiency programs and renewable energy resources, resulting in a slight net reduction in customer bills, effective December 1, 2009. State-of-the-Art Power Plants -- Filed with the NCUC a plan to retire by the end of 2017 the 11 remaining North Carolina coal-fired units that do not have flue-gas desulfurization controls (scrubbers). -- Filed with the NCUC a plan to build a 600-megawatt (MW) natural gas-fired plant to replace the coal-fired units at the Sutton Plant, in conjunction with their retirement in 2014. The project would represent an estimated investment of approximately $600 million and significantly reduce overall emissions. -- Began operating PEF's first scrubber at Crystal River Unit 5 in December 2009. Alternative Energy and Energy Efficiency -- Placed online two solar photovoltaic (PV) arrays as part of PEC's SunSense(SM) commercial solar PV program: -- 250-kilowatt array in Raleigh, N.C., built by Carolina Solar Energy; and -- 250-kilowatt array in Cary, N.C., built by FLS Energy. -- Signed agreement with Advanced Green Technologies to purchase the energy produced by a 1.27-MW PV array in New Bern, N.C., which brings the total amount of solar-generated electricity scheduled to be purchased by PEC to more than 10 MW. -- Received approval from the FPSC for a 20-year renewable energy contract with Florida Biomass Energy, effective January 2013, which will generate up to 60 MW of electricity through the burning of waste wood and specially grown vegetation. -- Issued a request for proposals for 40 to 75 MW of electricity generated from wood biomass in North Carolina starting in 2013. -- Received approval from the NCUC for PEC's Residential Lighting Program, which offers discounts at area retailers for energy-efficient compact fluorescent light bulbs. Cost recovery for this program is currently under review. -- Announced partnership with the City of Orlando, Orange County and the Orlando Utilities Commission to establish Get Ready Central Florida, an initiative aimed at paving the way for electric vehicles. Awards, Honors & Recognitions -- PEC received the top ranking in customer satisfaction among large utilities nationally and the highest ranking in the South region for the second year in a row in the latest J.D. Power & Associates survey of business customers. -- Set new winter peak-demand records in both Florida and the Carolinas during January 2010.

    Press releases regarding various announcements are available on the company's Web site at http://www.progress-energy.com/aboutus/news.

    2009 BUSINESS HIGHLIGHTS

    Below are the fourth-quarter and full-year 2009 earnings variance analyses for the company's segments. See the reconciliation tables on pages 6-8 and on pages S-1 and S-2 of the supplemental data for a reconciliation of ongoing earnings per share to GAAP earnings per share. Also see the attached supplemental data schedules for additional information on PEC and PEF operating revenues, energy sales, energy supply, weather impacts and other topics.

    QUARTER-OVER-QUARTER ONGOING EPS VARIANCE ANALYSIS Progress Energy Carolinas -- Reported fourth-quarter ongoing earnings per share of $0.38, compared with $0.40 for the same period last year; GAAP earnings per share of $0.34, compared with $0.40 for the same period last year. -- Reported primary quarter-over-quarter ongoing earnings per share favorability of: -- $0.06 depreciation and amortization primarily due to depreciation associated with accelerated cost-recovery program for nuclear generating assets recognized during 2008, partially offset by impact of depreciable asset base increases -- $0.01 wholesale revenues -- $0.01 interest expense -- $0.01 income taxes -- Reported primary quarter-over-quarter ongoing earnings per share unfavorability of: -- $(0.03) net retail growth and usage -- $(0.03) O&M primarily due to higher pension and benefit costs and higher storm costs -- $(0.02) other margin -- $(0.01) other -- $(0.02) share dilution primarily due to Progress Energy's issuance of 14.4 million shares of common stock in January 2009 -- 12,000 net increase in the average number of customers for the three months ended December 31, 2009, compared to the same period in 2008 Progress Energy Florida -- Reported fourth-quarter ongoing earnings per share of $0.28, compared with $0.22 for the same period last year; GAAP earnings per share of $0.27, compared with $0.19 for the same period last year. -- Reported primary quarter-over-quarter ongoing earnings per share favorability of: -- $0.08 retail rates primarily due to impact of interim and limited base rate relief -- $0.06 other margin primarily due to the net impact of returns on nuclear and environmental cost-recovery clause assets -- $0.03 income taxes primarily due to accelerated amortization of tax-related regulatory assets in 2008 and the tax impacts related to certain employee benefit trusts -- $0.02 weather -- $0.02 other primarily due to investment gains on certain employee benefit trusts -- $0.01 interest expense -- Reported primary quarter-over-quarter ongoing earnings per share unfavorability of: -- $(0.07) O&M primarily due to higher plant outage and maintenance costs and higher pension costs -- $(0.03) AFUDC equity primarily due to placing the repowered Bartow Plant in service in June 2009 -- $(0.03) depreciation and amortization primarily due to impact of depreciable asset base increases -- $(0.01) wholesale revenues -- $(0.02) share dilution primarily due to Progress Energy's issuance of 14.4 million shares of common stock in January 2009 -- 6,000 net decrease in the average number of customers for the three months ended December 31, 2009, compared to the same period in 2008

    Corporate and Other Businesses (includes primarily Holding Company Debt and Discontinued Operations)

    -- Reported fourth-quarter ongoing after-tax expenses of $0.16 per share, compared with after-tax expenses of $0.15 per share for the same period last year; GAAP after-tax expenses of $0.02 per share, compared with after-tax expenses of $0.18 per share for the same period last year. -- Reported primary quarter-over-quarter ongoing after-tax expenses per share favorability of: -- $0.03 other primarily due to investment gains on certain employee benefit trusts -- $0.01 share dilution -- Reported primary quarter-over-quarter ongoing after-tax expenses per share unfavorability of: -- $(0.03) interest expense primarily due to higher average debt outstanding at the Parent -- $(0.02) income taxes primarily due to changes in tax estimates YEAR-OVER-YEAR ONGOING EPS VARIANCE ANALYSIS Progress Energy Carolinas -- Reported full-year ongoing earnings per share of $1.93, compared with $2.04 for the same period last year; GAAP earnings per share of $1.87, compared with $2.04 for the same period last year. -- Reported primary year-over-year ongoing earnings per share favorability of: -- $0.12 depreciation and amortization primarily due to depreciation associated with accelerated cost-recovery program for nuclear generating assets and Clean Smokestacks Act amortization recognized during 2008, partially offset by impact of depreciable asset base increases -- $0.05 weather -- $0.03 interest expense primarily due to lower interest rates on variable rate debt, partially offset by higher interest as a result of higher average debt outstanding -- $0.02 AFUDC equity primarily due to increased eligible construction project costs -- $0.01 income taxes -- Reported primary year-over-year ongoing earnings per share unfavorability of: -- $(0.13) net retail growth and usage -- $(0.03) other operating primarily due to prior-year gain on land sales and higher property and payroll taxes -- $(0.03) other primarily due to lower interest income, primarily due to lower unrecovered deferred fuel balances -- $(0.02) other margin primarily due to higher non-fuel clause recoverable purchased power expenses -- $(0.13) share dilution primarily due to Progress Energy's issuance of 14.4 million shares of common stock in January 2009 -- 14,000 net increase in the average number of customers for 2009, compared to 2008 Progress Energy Florida -- Reported full-year ongoing earnings and GAAP earnings per share of $1.65, compared with $1.47 for the same period last year. -- Reported primary year-over-year ongoing earnings per share favorability of: -- $0.20 other margin primarily due to the net impact of returns on nuclear and environmental cost-recovery clause assets -- $0.19 retail rates primarily due to impact of interim and limited base rate relief -- $0.08 weather -- $0.06 income taxes primarily due to deduction related to nuclear decommissioning trust funds -- $0.03 AFUDC equity primarily due to increased eligible construction project costs -- $0.02 wholesale revenues primarily due to increased capacity charges from new and amended contracts entered into in 2008 -- $0.02 other primarily due to investment gains on certain employee benefit trusts -- Reported primary year-over-year ongoing earnings per share unfavorability of: -- $(0.10) retail growth and usage -- $(0.07) depreciation and amortization primarily due to impact of depreciable asset base increases -- $(0.06) O&M primarily due to higher pension costs and higher plant outage and maintenance costs, partially offset by the impact of a change in our earned vacation policy -- $(0.05) interest expense primarily due to higher average debt outstanding -- $(0.03) other operating primarily due to regulatory disallowance of fuel costs and prior-year gain on land sales -- $(0.11) share dilution primarily due to Progress Energy's issuance of 14.4 million shares of common stock in January 2009 -- 8,000 net decrease in the average number of customers for 2009, compared to 2008

    Corporate and Other Businesses (includes primarily Holding Company Debt and Discontinued Operations)

    -- Reported full-year ongoing after-tax expenses of $0.55 per share, compared with after-tax expenses of $0.55 per share for the same period last year; GAAP after-tax expenses of $0.77 per share, compared with after-tax expenses of $0.34 per share for the same period last year. -- Reported primary year-over-year ongoing after-tax expenses per share favorability of: -- $0.04 other primarily due to investment gains on certain employee benefit trusts -- $0.04 share dilution primarily due to Progress Energy's issuance of 14.4 million shares of common stock in January 2009 -- Reported primary year-over-year ongoing after-tax expenses per share unfavorability of: -- $(0.06) interest expense primarily due to higher average debt outstanding at the Parent -- $(0.02) income taxes primarily due to the impact on the Corporate tax position resulting from the deductions taken by the Utilities related to nuclear decommissioning trust funds ONGOING EARNINGS ADJUSTMENTS

    Progress Energy's management uses ongoing earnings per share to evaluate the operations of the company and to establish goals for management and employees. Management believes this non-GAAP measure is appropriate for understanding the business and assessing our potential future performance, because excluded items are limited to those that we believe are not representative of our fundamental core earnings. Ongoing earnings as presented here may not be comparable to similarly titled measures used by other companies. The following table provides a reconciliation of ongoing earnings per share to reported GAAP earnings per share.

    Progress Energy, Inc. Reconciliation of Ongoing Earnings per Share to Reported GAAP Earnings per Share Three months ended Years ended December 31 December 31 ------------------ ------------------ 2009 2008* 2009 2008* ---- ----- ---- ----- Ongoing earnings per share $0.50 $0.47 $3.03 $2.96 Tax levelization 0.02 (0.03) - - Discontinued operations 0.09 (0.03) (0.28) 0.22 CVO mark-to-market 0.03 0.01 0.07 (0.01) Impairment - - (0.01) - Valuation allowance - (0.01) - - Plant retirement charges (0.05) - (0.06) - ----- --- ----- --- Reported GAAP earnings per share $0.59 $0.41 $2.75 $3.17 ===== ===== ===== ===== Shares outstanding (millions) 281 263 279 262 === === === === * Previously reported 2008 earnings per share have been restated to reflect the adoption of new accounting guidance that changed the calculation of the number of average common shares outstanding.

    Reconciling adjustments from ongoing earnings to GAAP earnings are as follows:

    Tax Levelization

    Generally accepted accounting principles require companies to apply an effective tax rate to interim periods that is consistent with a company's estimated annual tax rate. The company projects the effective tax rate for the year and then, based upon projected operating income for each quarter, raises or lowers the tax expense recorded in that quarter to reflect the projected tax rate. The resulting tax adjustment increased earnings per share by $0.02 for the quarter and decreased earnings per share by $0.03 for the same period last year, but has no impact on the company's annual earnings. Because this adjustment varies by quarter but has no impact on annual earnings, management does not consider this adjustment to be representative of the company's ongoing earnings.

    Discontinued Operations

    The company has reduced its business risk by exiting nonregulated businesses to focus on the core operations of the utilities. The discontinued operations of these nonregulated businesses increased earnings per share by $0.09 for the quarter and decreased earnings per share by $0.03 for the same period last year. See page S-5 of the supplemental data for further information on the impact of discontinued operations. Due to disposition of these assets, management does not view this activity as representative of the ongoing operations of the company.

    Contingent Value Obligation (CVO) Mark-to-Market

    In connection with the acquisition of Florida Progress Corporation, Progress Energy issued 98.6 million CVOs. Each CVO represents the right of the holder to receive contingent payments based on net after-tax cash flows above certain levels of four synthetic fuels facilities purchased by subsidiaries of Florida Progress Corporation in October 1999. The CVO liability is valued at fair value, and unrealized gains and losses from changes in fair value are recognized in earnings each quarter. The CVO mark-to-market increased earnings per share by $0.03 for the quarter and increased earnings per share by $0.01 for the same period last year. Progress Energy is unable to predict the changes in the fair value of the CVOs, and management does not consider this adjustment to be representative of the company's ongoing earnings.

    Impairment

    The company recorded impairments of certain investments of its Affordable Housing portfolio. The impairments had no impact on earnings for the quarter or for the same period last year. Management believes this adjustment is not representative of the company's ongoing quarterly earnings.

    Valuation Allowance and Related Net Operating Loss Carry Forward

    Progress Energy previously recorded a deferred tax asset for a state net operating loss carry forward upon the sale of Progress Ventures Inc.'s nonregulated generation facilities and energy marketing and trading operations. In the fourth quarter of 2008, the company recorded an additional deferred tax asset related to the state net operating loss carry forward due to a change in estimate based on 2007 tax return filings. The company also evaluated the total state net operating loss carry forward for potential impairment and partially impaired it by recording a valuation allowance, which more than offset the change in estimate. The net impact resulted in decreased earnings per share by $0.01 for the prior-year quarter. Management does not believe this net valuation allowance is representative of the ongoing operations of the company.

    Plant Retirement Charges

    The company recognized charges for the impact of PEC's decision to retire certain coal-fired generating units, with resulting reduced emissions for compliance with the Clean Smokestacks Act's 2013 emission targets. The charges decreased earnings per share by $0.05 for the quarter. Since the coal-fired generating units will be retired prior to the end of their estimated useful lives, management does not consider these charges to be representative of the company's ongoing earnings.

    Progress Energy's conference call with the investment community will be held today at 10 a.m. ET (7 a.m. PT). Investors, media and the public may listen to the conference call by dialing 913-312-1489, confirmation code 4282428. If you encounter problems, please contact Investor Relations at (919) 546-6057. A playback of the call will be available from 1 p.m. ET February 11 through midnight February 25. To listen to the recorded call, dial 719-457-0820 and enter confirmation code 4282428.

    A webcast of the live conference call will be available at http://www.progress-energy.com/webcast. The webcast will be archived on the site for at least 30 days following the call for those unable to listen in real time. The webcast will include audio of the conference call and a slide presentation referred to by management during the call. The slide presentation will be available for download beginning at 9:30 a.m. ET today at http://www.progress-energy.com/webcast.

    Progress Energy , headquartered in Raleigh, N.C., is a Fortune 500 energy company with more than 22,000 megawatts of generation capacity and $9 billion in annual revenues. Progress Energy includes two major electric utilities that serve approximately 3.1 million customers in the Carolinas and Florida. The company has earned the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence, and was the first utility to receive the prestigious J.D. Power and Associates Founder's Award for customer service. The company is pursuing a balanced strategy for a secure energy future, which includes aggressive energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. Progress Energy celebrated a century of service in 2008. Visit the company's Web site at http://www.progress-energy.com/.

    Caution Regarding Forward-Looking Information:

    This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The matters discussed in this document involve estimates, projections, goals, forecasts, assumptions, risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements.

    Examples of factors that you should consider with respect to any forward-looking statements made throughout this document include, but are not limited to, the following: the impact of fluid and complex laws and regulations, including those relating to the environment and energy policy; our ability to recover eligible costs and earn an adequate return on investment through the regulatory process; the ability to successfully operate electric generating facilities and deliver electricity to customers; the impact on our facilities and businesses from a terrorist attack; the ability to meet the anticipated future need for additional baseload generation and associated transmission facilities in our regulated service territories and the accompanying regulatory and financial risks; our ability to meet current and future renewable energy requirements; the inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, regulatory and financial risks; the financial resources and capital needed to comply with environmental laws and regulations; weather and drought conditions that directly influence the production, delivery and demand for electricity; recurring seasonal fluctuations in demand for electricity; the ability to recover in a timely manner, if at all, costs associated with future significant weather events through the regulatory process; fluctuations in the price of energy commodities and purchased power and our ability to recover such costs through the regulatory process; our ability to control costs, including operations and maintenance expense (O&M) and large construction projects; the ability of our subsidiaries to pay upstream dividends or distributions to Progress Energy; current economic conditions; the ability to successfully access capital markets on favorable terms; the stability of commercial credit markets and our access to short- and long-term credit; the impact that increases in leverage or reductions in cash flow may have on us; our ability to maintain our current credit ratings and the impacts in the event our credit ratings are downgraded; the investment performance of our nuclear decommissioning trust (NDT) funds; the investment performance of the assets of our pension and benefit plans and resulting impact on future funding requirements; the impact of potential goodwill impairments; our ability to fully utilize tax credits generated from the previous production and sale of qualifying synthetic fuels under Internal Revenue Code Section 29/45K (Section 29/45K); and the outcome of any ongoing or future litigation or similar disputes and the impact of any such outcome or related settlements. Many of these risks similarly impact our nonreporting subsidiaries. These and other risk factors are detailed from time to time in our filings with the SEC. All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor can management assess the effect of each such factor on us.

    Any forward-looking statement is based on information current as of the date of this document and speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made.

    PROGRESS ENERGY, INC. UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS UNAUDITED CONDENSED CONSOLIDATED STATEMENTS of INCOME ----------------------------------------------------- Three months ended Years ended December 31, December 31, (in millions except per ------------------ ------------------ share data) 2009 2008 2009 2008 ----------------------- ---- ---- ---- ---- Operating revenues $2,307 $2,161 $9,885 $9,167 ------------------ ------ ------ ------ ------ Operating expenses Fuel used in electric generation 897 759 3,752 3,021 Purchased power 312 287 911 1,299 Operation and maintenance 534 450 1,894 1,820 Depreciation, amortization and accretion 109 220 986 839 Taxes other than on income 132 121 557 508 Other (1) 3 13 (3) ----- --- --- --- --- Total operating expenses 1,983 1,840 8,113 7,484 ------------------------ ----- ----- ----- ----- Operating income 324 321 1,772 1,683 ---------------- --- --- ----- ----- Other income (expense) Interest income 6 4 14 24 Allowance for equity funds used during construction 29 38 124 122 Other, net 10 (8) 23 (17) ---------- --- --- --- --- Total other income, net 45 34 161 129 ----------------------- --- --- --- --- Interest charges Interest charges 184 186 718 679 Allowance for borrowed funds used during construction (9) (13) (39) (40) ---------------------------- --- --- --- --- Total interest charges, net 175 173 679 639 --------------------------- --- --- --- --- Income from continuing operations before income tax 194 182 1,254 1,173 Income tax expense 52 66 404 395 ------------------ --- --- --- --- Income from continuing operations 142 116 850 778 Discontinued operations, net of tax 24 (9) (79) 58 ------------------------ --- --- --- --- Net income 166 107 771 836 Net income attributable to noncontrolling interests, net of tax (2) - (4) (6) ----------------------- --- --- --- --- Net income attributable to controlling interests $164 $107 $767 $830 ======================= ==== ==== ==== ==== Average common shares outstanding - basic 281 263 279 262 --------------------- --- --- --- --- Basic and diluted earnings per common share Income from continuing operations attributable to controlling interests, net of tax $0.50 $0.44 $3.03 $2.95 Discontinued operations attributable to controlling interests, net of tax 0.09 (0.03) (0.28) 0.22 ---------------------------- ---- ----- ----- ---- Net income attributable to controlling interests $0.59 $0.41 $2.75 $3.17 ========================== ===== ===== ===== ===== Dividends declared per common share $0.620 $0.620 $2.480 $2.465 ----------------------------- ------ ------ ------ ------ Amounts attributable to controlling interests Income from continuing operations attributable to controlling interests, net of tax $140 $116 $846 $773 Discontinued operations attributable to controlling interests, net of tax 24 (9) (79) 57 ---------------------------- --- --- --- --- Net income attributable to controlling interests $164 $107 $767 $830 ========================== ==== ==== ==== ==== The Unaudited Condensed Consolidated Interim Financial Statements should be read in conjunction with the Company's Annual Report to shareholders. These statements have been prepared for the purpose of providing information concerning the Company and not in connection with any sale, offer for sale, or solicitation of an offer to buy any securities. PROGRESS ENERGY, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS ----------------------------------------------- December 31, December 31, (in millions) 2009 2008 ------------- ------------ ------------ ASSETS Utility plant Utility plant in service $28,918 $26,326 Accumulated depreciation (11,576) (11,298) ------------------------ ------- ------- Utility plant in service, net 17,342 15,028 Held for future use 47 38 Construction work in progress 1,790 2,745 Nuclear fuel, net of amortization 554 482 --------------------------------- --- --- Total utility plant, net 19,733 18,293 ------------------------ ------ ------ Current assets Cash and cash equivalents 725 180 Receivables, net 800 867 Inventory 1,325 1,239 Regulatory assets 142 533 Derivative collateral posted 146 353 Income taxes receivable 145 194 Prepayments and other current assets 248 154 ------------------------------------ --- --- Total current assets 3,531 3,520 -------------------- ----- ----- Deferred debits and other assets Regulatory assets 2,118 2,567 Nuclear decommissioning trust funds 1,367 1,089 Miscellaneous other property and investments 438 446 Goodwill 3,655 3,655 Other assets and deferred debits 333 303 -------------------------------- --- --- Total deferred debits and other assets 7,911 8,060 -------------------------------------- ----- ----- Total assets $31,175 $29,873 ============ ======= ======= Capitalization and Liabilities Common stock equity Common stock without par value, 500 million shares authorized, 281 million and 264 million shares issued and outstanding, respectively $6,873 $6,206 Unearned ESOP shares (1 million shares) (12) (25) Accumulated other comprehensive loss (87) (116) Retained earnings 2,685 2,622 ----------------- ----- ----- Total common stock equity 9,459 8,687 ------------------------- ----- ----- Noncontrolling interests 6 6 ------------------------ --- --- Total equity 9,465 8,693 ------------ ----- ----- Preferred stock of subsidiaries 93 93 Long-term debt, affiliate 272 272 Long-term debt, net 11,779 10,387 ------------------- ------ ------ Total capitalization 21,609 19,445 -------------------- ------ ------ Current liabilities Current portion of long-term debt 406 - Short-term debt 140 1,050 Accounts payable 835 912 Interest accrued 206 167 Dividends declared 175 164 Customer deposits 300 282 Derivative liabilities 190 493 Other current liabilities 406 418 ------------------------- --- --- Total current liabilities 2,658 3,486 ------------------------- ----- ----- Deferred credits and other liabilities Noncurrent income tax liabilities 1,202 818 Accumulated deferred investment tax credits 117 127 Regulatory liabilities 2,449 2,181 Asset retirement obligations 1,170 1,471 Accrued pension and other benefits 1,323 1,594 Capital lease obligations 221 231 Derivative liabilities 240 269 Other liabilities and deferred credits 186 251 -------------------------------------- --- --- Total deferred credits and other liabilities 6,908 6,942 -------------------------------------------- ----- ----- Commitments and contingencies ----------------------------- Total capitalization and liabilities $31,175 $29,873 ==================================== ======= ======= PROGRESS ENERGY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS of CASH FLOWS --------------------------------------------------------- (in millions) Years ended December 31 2009 2008 ----------------------- ---- ---- Operating activities Net income $771 $836 Adjustments to reconcile net income to net cash provided by operating activities Depreciation, amortization and accretion 1,135 957 Deferred income taxes and investment tax credits, net 226 411 Deferred fuel cost (credit) 290 (333) Allowance for equity funds used during construction (124) (122) Loss (gain) on sales of assets 2 (75) Other adjustments to net income 253 135 Cash provided (used) by changes in operating assets and liabilities Receivables 26 233 Inventory (99) (237) Derivative collateral posted 200 (340) Prepayments and other current assets 3 7 Income taxes, net (14) (169) Accounts payable (26) 77 Other current liabilities (42) (103) Other assets and deferred debits 11 (44) Accrued pension and other benefits (285) (39) Other liabilities and deferred credits (56) 24 -------------------------------------- --- --- Net cash provided by operating activities 2,271 1,218 ----------------------------------------- ----- ----- Investing activities Gross property additions (2,295) (2,333) Nuclear fuel additions (200) (222) Proceeds from sales of discontinued operations and other assets, net of cash divested 1 72 Purchases of available-for-sale securities and other investments (2,350) (1,590) Proceeds from available-for-sale securities and other investments 2,314 1,534 Other investing activities (2) (2) -------------------------- --- --- Net cash used by investing activities (2,532) (2,541) ------------------------------------- ------ ------ Financing activities Issuance of common stock 623 132 Dividends paid on common stock (693) (642) Payments of short-term debt with original maturities greater than 90 days (29) (176) Proceeds from issuance of short-term debt with original maturities greater than 90 days - 29 Net (decrease) increase in short-term debt (981) 1,096 Proceeds from issuance of long-term debt, net 2,278 1,797 Retirement of long-term debt (400) (877) Cash distributions to noncontrolling interests (6) (85) Other financing activities 14 (26) -------------------------- --- --- Net cash provided by financing activities 806 1,248 ----------------------------------------- --- ----- Net increase (decrease) in cash and cash equivalents 545 (75) Cash and cash equivalents at beginning of period 180 255 ------------------------------------------------ --- --- Cash and cash equivalents at end of period $725 $180 ========================================== ==== ==== Progress Energy, Inc. SUPPLEMENTAL DATA - Page S-1 Unaudited Earnings Variances Fourth Quarter 2009 vs. 2008 Regulated Utilities ------------------- Corporate and Other ($ per share) Carolinas Florida Businesses Consolidated --------- ------- -------------- ------------ 2008 GAAP earnings 0.40 0.19 (0.18) 0.41 Tax levelization 0.03 0.03 A Discontinued operations 0.03 0.03 B CVO mark-to-market (0.01) (0.01) C Valuation allowance 0.01 0.01 D ---- ---- ---- ---- 2008 ongoing earnings 0.40 0.22 (0.15) 0.47 ---- ---- ----- ---- Weather - retail 0.02 0.02 Growth and usage - retail (0.03) (0.03) Retail rates 0.08 0.08 E Other margin (0.02) 0.06 0.04 F Wholesale 0.01 (0.01) - O&M (0.03) (0.07) (0.10) G Other (0.01) 0.02 0.03 0.04 H AFUDC equity (0.03) (0.03) I Depreciation and amortization 0.06 (0.03) 0.03 J Interest expense 0.01 0.01 (0.03) (0.01) K Income taxes 0.01 0.03 (0.02) 0.02 L Share dilution (0.02) (0.02) 0.01 (0.03) M ---- ---- ----- ---- 2009 ongoing earnings 0.38 0.28 (0.16) 0.50 ---- ---- ----- ---- Tax levelization 0.01 (0.01) 0.02 0.02 A Discontinued operations 0.09 0.09 B CVO mark-to-market 0.03 0.03 C Plant retirement charges (0.05) (0.05) N ----- ---- ----- ----- 2009 GAAP earnings 0.34 0.27 (0.02) 0.59 ---- ---- ----- ---- Corporate and Other Businesses includes small subsidiaries, Holding Company interest expense, discontinued operations, CVO mark-to-market, tax levelization, purchase accounting transactions and corporate eliminations. In this analysis, individual variances are presented net of the effect of pass-through items and other offsets. A - Tax levelization impact, related to cyclical nature of energy demand/earnings and various permanent items of income or deduction. B - Discontinued operations consists of 1) Terminals operations and Synthetic Fuels businesses, 2) CCO operations and 3) Coal Mining businesses. C - Corporate and Other - Impact of change in fair value of outstanding CVOs. D - Corporate and Other - Net valuation allowance and related net operating loss carry forward. E - Florida - Favorable primarily due to impact of interim and limited base rate relief. F - Florida - Favorable primarily due to the net impact of returns on nuclear and environmental cost-recovery clause assets. G - Carolinas - Unfavorable primarily due to higher pension and benefit costs and higher storm costs. Florida - Unfavorable primarily due to higher plant outage and maintenance costs and higher pension costs. H - Florida - Favorable primarily due to investment gains on certain employee benefit trusts resulting from improved financial market conditions. Corporate and Other - Favorable primarily due to investment gains on certain employee benefit trusts resulting from improved financial market conditions. I - AFUDC equity is presented gross of tax as it is excluded from the calculation of income tax expense. Florida - Unfavorable primarily due to placing the repowered Bartow Plant in service in June 2009. J - Carolinas - Favorable primarily due to depreciation associated with accelerated cost-recovery program for nuclear generating assets recognized during 2008, partially offset by impact of depreciable asset base increases. The North Carolina jurisdictional aggregate minimum amount of accelerated cost recovery has been met and the South Carolina jurisdictional obligation was terminated by the SCPSC. Florida - Unfavorable primarily due to impact of depreciable asset base increases. K - Corporate and Other - Unfavorable primarily due to higher average debt outstanding at the Parent. L - Florida - Favorable primarily due to accelerated amortization of tax-related regulatory assets in 2008 and the tax impacts related to certain employee benefit trusts. Corporate and Other - Unfavorable primarily due to changes in tax estimates. M - Primarily due to Progress Energy's issuance of 14.4 million shares of common stock in January 2009. N - Carolinas - Impact of decision to retire in-service generating units prior to the end of their estimated useful lives. Progress Energy, Inc. SUPPLEMENTAL DATA - Page S-2 Unaudited Earnings Variances Full-Year 2009 vs. 2008 Regulated Utilities ------------------- Corporate and Other ($ per share) Carolinas Florida Businesses Consolidated --------- ------- -------------- ------------ 2008 GAAP earnings 2.04 1.47 (0.34) 3.17 A Discontinued operations (0.22) (0.22) B Valuation allowance 0.01 0.01 C ---- ---- ---- ---- 2008 ongoing earnings 2.04 1.47 (0.55) 2.96 A ---- ---- ----- ---- Weather - retail 0.05 0.08 0.13 Growth and usage - retail (0.13) (0.10) (0.23) Retail rates 0.19 0.19 D Other margin (0.02) 0.20 0.18 E Wholesale 0.02 0.02 F O&M (0.06) (0.06) G Other operating (0.03) (0.03) (0.06) H Other (0.03) 0.02 0.04 0.03 I AFUDC equity 0.02 0.03 0.05 J Depreciation and amortization 0.12 (0.07) 0.05 K Interest expense 0.03 (0.05) (0.06) (0.08) L Income taxes 0.01 0.06 (0.02) 0.05 M Share dilution (0.13) (0.11) 0.04 (0.20) N ---- ---- ----- ---- 2009 ongoing earnings 1.93 1.65 (0.55) 3.03 ---- ---- ----- ---- Discontinued operations (0.28) (0.28) B CVO mark-to-market 0.07 0.07 O Impairment (0.01) (0.01) P Plant retirement charges (0.06) (0.06) Q ----- ---- ----- ----- 2009 GAAP earnings 1.87 1.65 (0.77) 2.75 ---- ---- ----- ---- Corporate and Other Businesses includes small subsidiaries, Holding Company interest expense, discontinued operations, CVO mark-to-market, tax levelization, purchase accounting transactions and corporate eliminations. In this analysis, individual variances are presented net of the effect of pass-through items and other offsets. A - GAAP and ongoing earnings for 2008 are $0.02 less than previously reported due to adoption of new accounting guidance that changed the calculation of the number of average common shares outstanding. B - Discontinued operations consists primarily of Terminals operations and Synthetic Fuels businesses. C - Corporate and Other - Net valuation allowance and related net operating loss carry forward. D - Florida - Favorable primarily due to impact of interim and limited base rate relief. E - Carolinas - Unfavorable primarily due to higher non-fuel clause recoverable purchased power expenses. Florida - Favorable primarily due to the net impact of returns on nuclear and environmental cost-recovery clause assets. F - Florida - Favorable primarily due to increased capacity charges from new and amended contracts entered into in 2008. G - Florida - Unfavorable primarily due to higher pension costs and higher plant outage and maintenance costs, partially offset by the impact of a change in our earned vacation policy. H - Carolinas - Unfavorable primarily due to prior-year gain on land sales and higher property and payroll taxes. Florida - Unfavorable primarily due to regulatory disallowance of fuel costs and prior-year gain on land sales. I - Carolinas - Unfavorable primarily due to lower interest income, primarily due to lower unrecovered deferred fuel balances. Florida - Favorable primarily due to investment gains on certain employee benefit trusts resulting from improved financial market conditions. Corporate and Other - Favorable primarily due to investment gains on certain employee benefit trusts resulting from improved financial market conditions. J - AFUDC equity is presented gross of tax as it is excluded from the calculation of income tax expense. Carolinas - Favorable primarily due to increased eligible construction project costs. Florida - Favorable primarily due to increased eligible construction project costs. K - Carolinas - Favorable primarily due to depreciation associated with accelerated cost-recovery program for nuclear generating assets and Clean Smokestacks Act amortization recognized during 2008, partially offset by impact of depreciable asset base increases. The North Carolina jurisdictional aggregate minimum amount of accelerated cost recovery has been met and the South Carolina jurisdictional obligation was terminated by the SCPSC. PEC has ceased recording Clean Smokestacks Act amortization in accordance with a regulatory order. Florida - Unfavorable primarily due to the impact of depreciable asset base increases. L - Carolinas - Favorable primarily due to lower interest rates on variable rate debt, partially offset by higher interest as a result of higher average debt outstanding. Florida - Unfavorable primarily due to higher average debt outstanding. Corporate and Other - Unfavorable primarily due to higher average debt outstanding at the Parent. M - Florida - Favorable primarily due to deduction related to nuclear decommissioning trust funds. Corporate and Other - Unfavorable primarily due to the impact on the Corporate tax position resulting from the deductions taken by the Utilities related to nuclear decommissioning trust funds. N - Primarily due to Progress Energy's issuance of 14.4 million shares of common stock in January 2009. O - Corporate and Other - Impact of change in fair value of outstanding CVOs. P - Corporate and Other - Impairment of Affordable Housing portfolio investments. Q - Carolinas - Impact of decision to retire in-service generating units prior to the end of their estimated useful lives. Progress Energy, Inc. SUPPLEMENTAL DATA - Page S-3 Unaudited - Data is not weather-adjusted Utility Statistics Percentage Three Months Ended Three Months Ended Change From Dec. 31, 2009 Dec. 31, 2008 (a) Dec. 31, 2008 ---------------------- ---------------------- -------------- Total Total Caro- Utili- Caro- Utili- Caro- linas Florida ties linas Florida ties linas Florida ------ ------- ------ ------ ------- ------ ----- ------- Operating Revenues (in millions) Residential $248 $240 $488 $256 $208 $464 (3.1)% 15.4% Commercial 170 88 258 176 79 255 (3.4) 11.4 Industrial 91 19 110 96 19 115 (5.2) - Governmental 15 23 38 16 21 37 (6.3) 9.5 Unbilled 23 (19) 4 18 (21) (3) - - -------- --- --- --- --- --- --- --- --- Total retail base revenues 547 351 898 562 306 868 (2.7) 14.7 Wholesale base revenues 72 39 111 66 43 109 9.1 (9.3) -------------- --- --- --- --- --- --- --- ---- Total base revenues 619 390 1,009 628 349 977 (1.4) 11.7 Clause recoverable regulatory returns 2 27 29 - 4 4 - 575.0 Miscellaneous revenue 27 49 76 27 45 72 - 8.9 Fuel and other pass-through revenues 418 772 1,190 392 715 1,107 - - -------------- --- --- ----- --- --- ----- --- --- Total operating revenues $1,066 $1,238 $2,304 $1,047 $1,113 $2,160 1.8% 11.2% --------- ------ ------ ------ ------ ------ ------ --- ---- Energy Sales (millions of kWh) Residential 3,564 4,699 8,263 3,808 4,474 8,282 (6.4)% 5.0% Commercial 3,111 2,977 6,088 3,200 2,887 6,087 (2.8) 3.1 Industrial 2,597 799 3,396 2,615 931 3,546 (0.7) (14.2) Governmental 360 847 1,207 361 834 1,195 (0.3) 1.6 Unbilled 587 (609) (22) 238 (591) (353) - - -------- --- ---- --- --- ---- ---- --- --- Total retail 10,219 8,713 18,932 10,222 8,535 18,757 (0.0) 2.1 Wholesale 3,424 727 4,151 3,370 1,250 4,620 1.6 (41.8) --------- ----- --- ----- ----- ----- ----- --- ----- Total energy sales 13,643 9,440 23,083 13,592 9,785 23,377 0.4% (3.5)% --------- ------ ----- ------ ------ ----- ------ --- ---- Energy Supply (millions of kWh) Generated Steam 6,471 3,370 9,841 6,388 3,633 10,021 Nuclear 6,609 - 6,609 5,465 1,740 7,205 Combustion turbines/ combined cycle 649 4,708 5,357 769 2,667 3,436 Hydro 169 - 169 90 - 90 Purchased 299 1,923 2,222 1,376 2,368 3,744 ---------- --- ----- ----- ----- ----- ----- Total energy supply (company share) 14,197 10,001 24,198 14,088 10,408 24,496 --------- ------ ------ ------ ------ ------ ------ Impact of Weather to Normal on Retail Sales Heating Degree Days Actual 1,206 163 1,200 200 0.5% (18.5)% Normal 1,175 192 1,153 192 Cooling Degree Days Actual 52 526 46 399 13.0% 31.8% Normal 74 455 77 455 Impact of retail weather to normal on EPS $0.00 $0.01 $0.01 $0.00 ($0.02) ($0.02) ------------ ----- ----- ----- ----- ------ ------ (a) Certain amounts for 2008 have been reclassified to conform to the 2009 presentation. Progress Energy, Inc. SUPPLEMENTAL DATA - Page S-4 Unaudited - Data is not weather-adjusted Utility Statistics Percentage Year Ended Year Ended Change Dec. 31, 2009 Dec. 31, 2008 (a) Dec. 31, 2008 ---------------------- ---------------------- -------------- Total Total Caro- Utili- Caro- Utili- Caro- linas Florida ties linas Florida ties linas Florida ------ ------- ------ ------ ------- ------ ----- ------- Operating Revenues (in millions) Residential $1,179 $946 $2,125 $1,160 $893 $2,053 1.6% 5.9% Commercial 741 340 1,081 748 328 1,076 (0.9) 3.7 Industrial 374 72 446 416 76 492 (10.1) (5.3) Governmental 62 87 149 64 82 146 (3.1) 6.1 Unbilled 5 9 14 8 (1) 7 - - -------- --- --- --- --- --- --- --- --- Total retail base revenues 2,361 1,454 3,815 2,396 1,378 3,774 (1.5) 5.5 Wholesale base revenues 310 207 517 310 197 507 - 5.1 -------------- --- --- --- --- --- --- --- --- Total base revenues 2,671 1,661 4,332 2,706 1,575 4,281 (1.3) 5.5 Clause recoverable regulatory returns 6 87 93 - 11 11 - 690.9 Miscellaneous revenue 114 189 303 102 178 280 11.8 6.2 Fuel and other pass-through revenues 1,836 3,314 5,150 1,621 2,967 4,588 - - ------------ ----- ----- ----- ----- ----- ----- --- --- Total operating revenues $4,627 $5,251 $9,878 $4,429 $4,731 $9,160 4.5% 11.0% --------- ------ ------ ------ ------ ------ ------ --- ---- Energy Sales (millions of kWh) Residential 17,117 19,399 36,516 17,000 19,328 36,328 0.7% 0.4% Commercial 13,639 11,884 25,523 13,941 12,139 26,080 (2.2) (2.1) Industrial 10,368 3,285 13,653 11,388 3,786 15,174 (9.0) (13.2) Governmental 1,497 3,256 4,753 1,466 3,302 4,768 2.1 (1.4) Unbilled 360 131 491 (8) (99) (107) - - -------- --- --- --- --- --- ---- --- --- Total Retail 42,981 37,955 80,936 43,787 38,456 82,243 (1.8) (1.3) Wholesale 13,966 3,835 17,801 14,329 6,734 21,063 (2.5) (43.1) --------- ------ ----- ------ ------ ----- ------ ---- ----- Total energy sales 56,947 41,790 98,737 58,116 45,190 103,306 (2.0)% (7.5)% ------- ------ ------ ------ ------ ------ ------- ---- ---- Energy Supply (millions of kWh) Generated Steam 27,261 13,159 40,420 28,363 18,408 46,771 Nuclear 24,467 4,945 29,412 24,140 6,425 30,565 Combustion turbines/ combined cycle 3,634 17,620 21,254 2,795 12,762 15,557 Hydro 651 - 651 429 - 429 Purchased 3,251 8,745 11,996 4,735 10,221 14,956 ---------- ----- ----- ------ ----- ------ ------ Total energy supply (company share) 59,264 44,469 103,733 60,462 47,816 108,278 ------- ------ ------ ------- ------ ------ ------- Impact of Weather to Normal on Retail Sales Heating Degree Days Actual 3,057 554 2,965 486 3.1% 14.0% Normal 3,074 577 3,049 578 Cooling Degree Days Actual 1,808 3,114 1,716 2,932 5.4% 6.2% Normal 1,704 2,981 1,722 2,981 Impact of retail weather to normal on EPS $0.03 $0.03 $0.06 ($0.02) ($0.05) ($0.07) ----------- ----- ----- ----- ------ ------ ------ (a) Certain amounts for 2008 have been reclassified to conform to the 2009 presentation. Progress Energy, Inc. SUPPLEMENTAL DATA - Page S-5 Unaudited Adjusted O&M Reconciliation (A) ------------------------------------------------------------------------- Years ended December 31 ----------------------- (in millions) 2009 2008 Growth ------------- ---- ---- ------ Reported GAAP O&M $1,894 $1,820 4.1% Adjustments Carolinas O&M recoverable through clauses (36) (23) Timing of nuclear outages (B) - - Litigation judgment (3) - Plant retirement charges (28) - Storm restoration expenses (C) (11) - Florida Storm damage reserve - (66) Energy conservation cost recovery clause (ECCR) (75) (69) Environmental cost recovery clause (ECRC) (87) (31) Nuclear cost recovery (4) - Sales and use tax audit adjustments - 5 Severance associated with Energy Delivery restructuring - (5) Vacation benefits policy change (D) 11 - ----------------------------------- --- --- Adjusted O&M $1,661 $1,631 1.8% ------------- ------ ------ --- A - The preceding table provides a reconciliation of reported GAAP O&M to Adjusted O&M. Adjusted O&M excludes certain expenses that are recovered through cost-recovery clauses which have no material impact on earnings, as well as certain nonrecurring items. Management believes this presentation is appropriate and enables investors to more accurately compare the company's O&M expense over the periods presented. Adjusted O&M as presented here may not be comparable to similarly titled measures used by other companies. B - Nuclear units are periodically removed from service to accommodate normal refueling and maintenance outages, repairs and certain other modifications. PEC experienced two full nuclear outages during the year ended December 31, 2009, compared to two full nuclear outages during the year ended December 31, 2008. Therefore, no adjustment to the company's O&M expense is necessary, since the number of outages is comparable during the periods presented. C - PEC does not maintain a storm damage reserve account and does not have an ongoing regulatory mechanism to recover storm costs. D - Vacation benefits policy change has no O&M impact at Carolinas due to regulatory treatment. Impact of Discontinued Operations ------------------------------------------------------------------------- Years ended December 31 ----------------------------- (Basic earnings per share) 2009 2008 -------------------------- ---- ---- Terminals and Synthetic Fuels ($0.28) $0.23 Other - (0.01) ----- --- ----- Total Discontinued Operations ($0.28) $0.22 ----------------------------- ------ ----- Financial Statistics ------------------------------------------------------------------------- December 31, 2009 December 31, 2008 (a) ----------------- --------------------- Return on average common stock equity 8.2% 9.6% Book value per common share $33.57 $32.97 Capitalization Total equity 42.3% 41.9% Preferred stock of subsidiaries 0.4% 0.5% Total debt 57.3% 57.6% ---------- ---- ---- Total Capitalization 100.0% 100.0% -------------------- ----- ----- (a) Restated to include capital lease obligations in total debt calculation.

    Photo: http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-c Progress Energy

    CONTACT: Corporate Communications of Progress Energy, +1-919-546-6189 or
    toll-free 1-877-641-NEWS (6397)

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




    EnPro Industries Reports Fourth Quarter and Full Year Results for 2009- Sales improved 18% over the third quarter of 2009; year-over-year rate of decline slowed to 8% compared to 23% in the first nine months - Before asbestos-related expense and other selected items, earnings from continuing operations were $0.60 a share compared to $0.59 a share in the fourth quarter of 2008 - Asbestos-related pre-tax expense of $93.9 million in the quarter includes a non-cash charge of $80.7 million to adjust the 10-year estimate of the liability - Net loss of $1.93 a share in the quarter includes asbestos-related expenses of $2.93 a share - Full year sales fell 19% from 2008; before asbestos-related expenses and other selected items, 2009 earnings from continuing operations were $1.72 compared to $3.31 in 2008.

    CHARLOTTE, N.C., Feb. 11 /PRNewswire-FirstCall/ -- EnPro Industries today reported a net loss of $38.6 million, or $1.93 a share, for the fourth quarter of 2009. The loss includes a pre-tax charge of $93.9 million for asbestos-related expenses, primarily non-cash and reflecting an increase in the 10-year estimate of the asbestos liability of its subsidiaries. It also includes net income of $0.7 million, or $0.03 a share, from Quincy Compressor. Quincy is reflected as a discontinued operation in the company's financial statements due to its impending sale, and prior year results have been adjusted to reflect the reclassification. The sale is expected to close in the first quarter of 2010.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20050825/CLTH030LOGO)

    In the fourth quarter of 2008, the company reported net income of $5.3 million, or $0.26 a share, including $3.6 million, or $0.18 a share, from discontinued operations. Per share amounts are expressed on a diluted basis throughout this release.

    Before asbestos-related expenses and other selected items, the company's income from continuing operations in the fourth quarter of 2009 was $12.3 million, or $0.60 a share, compared to $11.9 million, or $0.59 a share, in the fourth quarter of 2008.

    Earnings before interest, income taxes, depreciation, amortization, asbestos-related expenses and other selected items (EBITDAA) were $30.3 million in the fourth quarter of 2009 compared with $31.7 million in the fourth quarter of 2008.

    Sales declined to $223.2 million in the fourth quarter from $241.5 million in the fourth quarter of 2008, but the 8% decline was well below the 23% experienced through the first nine months of 2009, and total sales were the highest the company recorded in any quarter of 2009. Excluding the benefit of foreign exchange rates, sales declined 10% from the fourth quarter of 2008.

    "Although activity in our markets remains at a low level, our results in the fourth quarter provide additional evidence of growing stability and the effectiveness of our cost reduction programs and operating strategies," said Steve Macadam, president and chief executive officer. "Comparisons to 2008 improved as the year-to-year rate of decline slowed, and a sequential comparison to the third quarter of 2009 showed an 18% increase in sales as all three of our segments reported increased activity. Higher volumes, combined with the cost reductions we implemented over the past several quarters, helped segment profits and profit margins increase over the third quarter, even though restructuring costs increased by $2 million, and segment margins returned to the levels we reported a year ago.

    "Our performance in the quarter was an encouraging finish to a very challenging year," Macadam said. "While activity in our markets remains well below the peaks we experienced in 2008, we have dealt effectively with these circumstances and our operations are well positioned to grow as conditions improve."

    Asbestos Liability

    During the fourth quarter, the company, along with its independent consultant and outside counsel, completed its normal annual review of its 10-year estimate of the asbestos liability of its subsidiaries. As a result of the review, the company has adjusted its previous estimate of the liability to reflect changes in its assumptions regarding new mesothelioma claims filings, payments by trusts established to pay claims against former asbestos defendants who have emerged from bankruptcy, and other factors. As a result of the adjustment, the company recorded a non-cash charge of $80.7 million to adjust the estimate as well as a non-cash charge of $6.2 million for the normal quarterly update of the estimate. The company also incurred cash expenses for legal and administrative costs of $7.0 million in the quarter, resulting in total asbestos-related expenses of $93.9 million in the fourth quarter and $135.5 million for the full year.

    Full Year Results

    For the full year of 2009, EnPro reported a net loss of $139.3 million, or $6.97 a share. The loss includes the previously mentioned charge to increase the 10-year estimate of the asbestos liability as well as the pre-tax charge of $113.1 million recorded in the second quarter related to the impairment of goodwill at the company's GGB Bearings Technology and Plastomer Technologies businesses. Discontinued operations contributed net income in 2009 of $4.3 million, or $0.22 a share. For the full year of 2008, the company reported net income of $50.6 million, or $2.40 a share, including $17.8 million, or $0.84 a share, from discontinued operations.

    Before asbestos-related expenses and other selected items, including the goodwill impairment charge, the company's earnings from continuing operations were $34.8 million, or $1.72 a share in 2009, compared with $69.6 million, or $3.31 a share, in 2008. EBITDAA in 2009 was $97.1 million compared to $158.5 million in 2008.

    Sales from continuing operations for the full year fell by 19% to $803.0 million as the company's markets weakened in comparison to 2008, when sales from continuing operations were $993.8 million. Excluding the effect of foreign exchange rates, sales were 16% below the level of 2008.

    Sealing Products Segment

    Sales in the Sealing Products segment reached $104.3 million in the fourth quarter, their highest level in 2009, but a 10% decrease compared to the fourth quarter of 2008. Excluding the benefit of foreign exchange rates, sales decreased by 11% from the fourth quarter of 2008. While demand from the energy and industrial markets served by Garlock Sealing Technologies increased over the levels of the first three quarters of 2009, it remained below the level of the fourth quarter of 2008, and sales at Garlock declined compared to a year ago. Because activity in the segment's heavy-duty truck markets remained well below the levels of 2008, Stemco's sales also declined compared to a year ago.

    ($ Millions) ------------ Quarter Ended 12/31/09 12/31/08 ------------- -------- -------- Sales $104.3 $115.9 EBITDA $18.1 $19.8 EBITDA Margin 17.4% 17.1% ------------- ---- ----

    The segment's earnings before interest, taxes, depreciation and amortization (EBITDA) were $18.1 million, a 9% decrease from a year ago, as volumes declined in the segment's operations. However, cost reductions and improved pricing helped improve the segment's EBITDA margin to 17.4% from 17.1% in the fourth quarter of 2008.

    Engineered Products Segment

    Sales in the Engineered Products segment were 3% below the fourth quarter of 2008, but 14% above the third quarter of 2009. Excluding the effect of foreign exchange and a small contribution from acquisitions, sales declined by 10% from the fourth quarter of 2008. GGB Bearing Technology's European automotive markets improved compared to the fourth quarter of 2008, but industrial markets in both the United States and Europe were weaker than they were a year ago, and GGB's sales decreased. Compressor Products International also experienced weaker markets, although sales at CPI were about the same as a year ago reflecting the benefits of foreign exchange and acquisitions.

    ($ Millions) ------------ Quarter Ended 12/31/09 12/31/08 ------------- -------- -------- Sales $65.6 $67.4 EBITDA $6.3 $6.0 EBITDA Margin 9.6% 8.9% ------------- --- ---

    The segment's EBITDA improved slightly from the fourth quarter of 2008, while a smaller loss at GGB helped the segment's EBITDA margins increase to 9.6%, their highest level since the third quarter of 2008. The segment's results do not include Quincy Compressor due to its classification as a discontinued operation.

    Engine Products and Services Segment

    Parts and services sales increased over the fourth quarter of 2008 but Fairbanks Morse shipped two fewer engines, so sales in the Engine Products and Services segment declined by 9%. Productivity improvements, better pricing and improved profit margins both on engines and on parts and service resulted in the same amount of EBITDA as in the fourth quarter of 2008 and produced higher EBITDA margins.

    ($ Millions) ------------ Quarter Ended 12/31/09 12/31/08 ------------- -------- -------- Sales $53.6 $58.7 EBITDA $10.7 $10.7 EBITDA Margin 20.0% 18.2% ------------- ---- ---- Cash Flow

    After the December 31, 2009 completion of the Technetics acquisition, the company's largest of the year, EnPro's cash balance stood at $76.8 million or about the same as at the end of 2008. Spending on acquisitions increased in 2009 to $51.1 million, primarily as a result of the purchase of Technetics, from $33.0 million the year before. Capital expenditures declined by about 50% to $22.1 million from $44.8 million in 2008.

    Cash flows from operating activities declined to $59.0 million in 2009 from $77.5 million in 2008 as the company's earnings weakened. However, lower tax payments and reduced working capital spending helped to offset a portion of the decline.

    Net cash outflows for asbestos-related payments and expenses were $39.8 million in 2009 compared to $37.0 million in 2008. While total outflows were about the same as in 2008, insurance collections were $2.9 million less.

    Outlook

    "The pace of recovery in our markets is uncertain, but we believe modest growth is likely during the first half of the year," said Macadam. "An increase in volume and the advantages of the cost reduction and efficiency programs we implemented last year should benefit our performance during that period and improve our results compared to the first half of 2009. The short cycles of most of our businesses make the second half of the year more difficult to foresee, but we are confident that we have positioned our operations to capture new opportunities as they arise throughout the year.

    "Our balance sheet remains strong and the resources available for investments in our operations will only be increased by the proceeds from the sale of Quincy Compressor. With stable markets, a lean enterprise and a solid financial base, we look forward to resuming our growth in 2010," Macadam concluded.

    Non-GAAP Financial Information

    This press release contains financial measures that have not been prepared in accordance with GAAP. They include income before asbestos-related expenses and other selected items, EBITDAA, EBITDA and related per share amounts. Tables showing the effect of these non-GAAP financial measures for the fourth quarter and full year of 2009 and 2008 are attached to the release.

    Conference Call and Webcast Information

    EnPro will hold a conference call today, February 11, at 10:00 a.m. Eastern Standard Time to discuss fourth quarter and full year results. Investors who wish to participate in the call should dial 1-800-851-4704 approximately 10 minutes before the call begins and provide conference id number 53920004. A live audio webcast of the call and accompanying slide presentation will be accessible from the company's website, http://www.enproindustries.com/. To access the presentation, log on to the webcast by clicking the link on the company's home page.

    Forward-Looking Statements

    Statements in this release that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: the resolution of current and potential future asbestos claims against certain of our subsidiaries which depends on such factors as the possibility of asbestos reform legislation, the financial viability of insurance carriers, the timing of payments of claims and related expenses, the timing of insurance collections, limitations on the amount that may be recovered from insurance carriers, the bankruptcies of other defendants and the results of litigation; general economic conditions in the markets served by our businesses, some of which are cyclical and experience periodic downturns; prices and availability of raw materials; and the amount of any payments required to satisfy contingent liabilities related to discontinued operations of our predecessors, including liabilities for certain products, environmental matters, guaranteed debt and lease payments, employee benefit obligations and other matters. Our filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008, and the Form 10-Q for the quarter ended September 30, 2009, describe these and other risks and uncertainties in more detail. We do not undertake to update any forward-looking statement made in this release to reflect any change in management's expectations or any change in the assumptions or circumstances on which such statements are based.

    EnPro Industries, Inc. is a leader in sealing products, metal polymer and filament wound bearings, compressor systems and components, diesel and dual-fuel engines and other engineered products for use in critical applications by industries worldwide. For more information about EnPro, visit the company's website at http://www.enproindustries.com/.

    EnPro Industries, Inc. Consolidated Statements of Operations (Unaudited) ------------------------------------------------- For the Quarters and Years Ended December 31, 2009 and 2008 (Stated in Millions of Dollars, Except Per Share Data) Quarters Ended Years Ended ------------------- ----------------------- Dec. 31, Dec. 31, Dec. 31, 2008 Dec. 31, 2008 2009 As 2009 As adjusted (1) adjusted (1) -------------------------------------------------------------------------- Net sales $223.2 $241.5 $803.0 $993.8 Cost of sales 143.2 163.5 523.8 635.4 -------------------------------------------------------------------------- Gross profit 80.0 78.0 279.2 358.4 -------------------------------------------------------------------------- Operating expenses: Selling, general and administrative expenses 60.3 54.4 224.3 241.6 Asbestos-related expenses 93.9 14.8 135.5 52.1 Goodwill impairment charge - - 113.1 - Other operating expense (income), net 2.8 1.8 10.5 (0.3) -------------------------------------------------------------------------- Total operating expenses 157.0 71.0 483.4 293.4 -------------------------------------------------------------------------- Operating income (loss) (77.0) 7.0 (204.2) 65.0 Interest expense (3.0) (3.2) (12.3) (12.7) Interest income 0.3 0.4 0.9 2.7 Other income (expense), net (1.7) (1.4) 17.4 (5.4) -------------------------------------------------------------------------- Income (loss) from continuing operations before income taxes (81.4) 2.8 (198.2) 49.6 Income tax benefit (expense) 42.1 (1.1) 54.6 (16.8) -------------------------------------------------------------------------- Income (loss) from continuing operations (39.3) 1.7 (143.6) 32.8 Income from discontinued operations, net of taxes 0.7 3.6 4.3 17.8 -------------------------------------------------------------------------- Net income (loss) $(38.6) $5.3 $(139.3) $50.6 ========================================================================== Basic earnings (loss) per share: Continuing operations $(1.96) $0.09 $(7.19) $1.62 Discontinued operations 0.03 0.18 0.22 0.88 -------------------------------------------------------------------------- Net income (loss) $(1.93) $0.27 $(6.97) $2.50 ========================================================================== Average common shares outstanding (millions) 20.0 19.9 20.0 20.2 ========================================================================== Diluted earnings (loss) per share: Continuing operations $(1.96) $0.08 $(7.19) $1.56 Discontinued operations 0.03 0.18 0.22 0.84 -------------------------------------------------------------------------- Net income (loss) $(1.93) $0.26 $(6.97) $2.40 ========================================================================== Average common shares outstanding (millions) 20.0 20.3 20.0 21.1 ========================================================================== (1) The 2008 results have been adjusted to reflect the retrospective application of Accounting Standards Codification 470-20, "Debt with Conversion and Other Options" as required in its transition guidance. They have also been adjusted to reflect Quincy Compressor in discontinued operations due to its impending sale. This footnote applies to all tables contained herein. EnPro Industries, Inc. Consolidated Statements of Cash Flows (Unaudited) ------------------------------------------------- For the Years Ended December 31, 2009 and 2008 (Stated in Millions of Dollars) 2009 2008 As adjusted (1) -------------------------------------------------------------------------- Operating activities of continuing operations Net income (loss) $(139.3) $50.6 Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations: Income from discontinued operations, net of taxes (4.3) (17.8) Depreciation 27.0 26.7 Amortization 13.3 13.4 Accretion of debt discount 5.2 4.7 Goodwill impairment charge 113.1 - Loss (gain) on sale of assets 0.3 (2.4) Deferred income taxes (67.7) (0.2) Stock-based compensation 1.8 3.9 Excess tax benefits from stock-based compensation - (0.8) Change in assets and liabilities, net of effects of acquisitions of businesses: Asbestos liabilities, net of insurance receivables 95.6 15.2 Accounts and notes receivable 29.5 10.4 Inventories (8.4) (11.2) Accounts payable (0.2) (14.5) Other current assets and liabilities (3.5) (4.8) Other non- current assets and liabilities (3.4) 4.3 -------------------------------------------------------------------------- Net cash provided by operating activities of continuing operations 59.0 77.5 -------------------------------------------------------------------------- Investing activities of continuing operations Purchases of property, plant and equipment (22.1) (44.8) Proceeds from sales of assets 0.3 4.2 Proceeds from liquidation of investments 7.4 10.5 Acquisitions, net of cash acquired (51.1) (33.0) Other (0.8) 4.6 -------------------------------------------------------------------------- Net cash used in investing activities of continuing operations (66.3) (58.5) -------------------------------------------------------------------------- Financing activities of continuing operations Repayments of debt (9.9) (3.7) Common stock repurchases - (69.2) Proceeds from issuance of common stock 0.4 0.4 Excess tax benefits from stock-based compensation - 0.8 -------------------------------------------------------------------------- Net cash used in financing activities of continuing operations (9.5) (71.7) -------------------------------------------------------------------------- Cash flows of discontinued operations Operating cash flows 18.1 20.7 Investing cash flows (2.7) (14.7) Financing cash flows - (0.4) -------------------------------------------------------------------------- Net cash provided by discontinued operations 15.4 5.6 -------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents 1.9 (5.8) -------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 0.5 (52.9) Cash and cash equivalents at beginning of year 76.3 129.2 -------------------------------------------------------------------------- Cash and cash equivalents at end of year $76.8 $76.3 ========================================================================== Supplemental disclosures of cash flow information: Cash paid during the period for: Interest $7.4 $8.0 Income taxes $13.2 $37.0 Asbestos-related claims and expenses, net of insurance recoveries $39.8 $37.0 EnPro Industries, Inc. Consolidated Balance Sheets (Unaudited) --------------------------------------- As of December 31, 2009 and 2008 (Stated in Millions of Dollars) 2009 2008 As adjusted (1) -------------------------------------------------------------------------- Current assets Cash and cash equivalents $76.8 $76.3 Accounts and notes receivable 112.7 132.9 Asbestos insurance receivable 67.2 67.9 Inventories 86.1 72.5 Other current assets 52.2 39.2 Current assets of discontinued operations 57.5 38.8 -------------------------------------------------------------------------- Total current assets 452.5 427.6 Property, plant and equipment 185.4 185.7 Goodwill 125.7 211.7 Other intangible assets 116.0 98.5 Asbestos insurance receivable 171.4 239.5 Deferred income taxes 119.9 76.8 Other assets 50.3 59.6 Long-term assets of discontinued operations - 34.4 -------------------------------------------------------------------------- Total assets $1,221.2 $1,333.8 ========================================================================== Current liabilities Current maturities of long-term debt $0.1 $9.6 Accounts payable 56.5 53.2 Asbestos liability 85.4 85.3 Other accrued expenses 71.7 79.0 Current liabilities of discontinued operations 16.2 20.6 -------------------------------------------------------------------------- Total current liabilities 229.9 247.7 Long-term debt 130.3 124.9 Asbestos liability 406.9 380.2 Pension liability 84.8 80.3 Other liabilities 57.7 74.3 Long-term liabilities of discontinued operations - 0.3 -------------------------------------------------------------------------- Total liabilities 909.6 907.7 -------------------------------------------------------------------------- Shareholders' equity Common stock 0.2 0.2 Additional paid-in capital 402.7 400.2 Retained earnings (accumulated deficit) (94.7) 44.6 Accumulated other comprehensive income (loss) 4.8 (17.4) Common stock held in treasury, at cost (1.4) (1.5) -------------------------------------------------------------------------- Total shareholders' equity 311.6 426.1 -------------------------------------------------------------------------- Total liabilities and shareholders' equity $1,221.2 $1,333.8 ========================================================================== EnPro Industries, Inc. Segment Information (Unaudited) ------------------------------- For the Quarters and Years Ended December 31, 2009 and 2008 (Stated in Millions of Dollars) Sales -------------------------------------------------------------------------- Quarters Ended Years Ended December 31, December 31, -------------- ---------------- 2009 2008 2009 2008 Sealing Products $104.3 $115.9 $399.4 $503.5 Engineered Products 65.6 67.4 238.3 350.0 Engine Products and Services 53.6 58.7 166.7 142.1 -------------------------------------------------------------------------- 223.5 242.0 804.4 995.6 Less intersegment sales (0.3) (0.5) (1.4) (1.8) -------------------------------------------------------------------------- $223.2 $241.5 803.0 $993.8 ========================================================================== Segment Profit (Loss) -------------------------------------------------------------------------- Quarters Ended Years Ended December 31, December 31, -------------- ------------- 2009 2008 2009 2008 As adjusted Sealing Products $13.7 $15.8 $55.8 $87.0 Engineered Products 1.4 1.3 (13.3) 38.5 Engine Products and Services 9.6 9.7 30.5 20.2 -------------------------------------------------------------------------- $24.7 $26.8 $73.0 $145.7 ========================================================================== Segment Margin -------------------------------------------------------------------------- Quarters Ended Years Ended December 31, December 31, -------------- -------------- 2009 2008 2009 2008 As adjusted -------------------------------------------------------------------------- Sealing Products 13.1% 13.6% 14.0% 17.3% Engineered Products 2.1% 1.9% (5.6)% 11.0% Engine Products and Services 17.9% 16.5% 18.3% 14.2% -------------------------------------------------------------------------- 11.1% 11.1% 9.1% 14.7% ========================================================================== Reconciliation of Segment Profit to Income (Loss) from Continuing Operations ------------------------------------------------------------------------ Quarters Ended Years Ended December 31, December 31, --------------- -------------------- 2009 2008 2009 2008 As adjusted (1) --------------- -------------------- Segment profit $24.7 $26.8 $73.0 $145.7 Corporate expenses (8.8) (3.6) (28.9) (27.4) Asbestos-related expenses (93.9) (14.8) (135.5) (52.1) Goodwill impairment charge - - (113.1) - Interest expense, net (2.7) (2.8) (11.4) (10.0) Other income (expense), net (0.7) (2.8) 17.7 (6.6) ------------------------------------------------------------------------ Income (loss) from continuing operations before income taxes (81.4) 2.8 (198.2) 49.6 Income tax benefit (expense) 42.1 (1.1) 54.6 (16.8) ------------------------------------------------------------------------ Income (loss) from continuing operations $(39.3) $1.7 $(143.6) $32.8 ======================================================================== Segment profit (loss) is total segment revenue reduced by operating expenses and restructuring and other costs identifiable with the segment. Corporate expenses include general corporate administrative costs. Expenses not directly attributable to the segments, corporate expenses, net interest expense, asbestos-related expenses, gains/losses related to the sale of assets, impairments and income taxes are not included in the computation of segment profit. The accounting policies of the reportable segments are the same as those for the Company. During 2009, the Company modified the methodology for allocating certain corporate expenses that specifically related to the operating segments. For comparability purposes, segment profits in 2008 have been adjusted to be consistent with the new expense allocation used by management to evaluate segment performance. EnPro Industries, Inc. Reconciliation of Income Before Asbestos-Related Expenses and Other Selected Items to Net Income (Loss) from Continuing Operations (Unaudited) -------------------------------------------------------------------------- For the Quarters and Years Ended December 31, 2009 and 2008 (Stated in Millions of Dollars, Except Per Share Data) Quarters Ended December 31, -------------------------------------------------------------------------- 2009 2008 As adjusted (1) ------------------ ------------------ $ Per share $ Per share ------------------ ------------------ Income before asbestos-related expenses and other selected items $12.3 $0.60 $11.9 $0.59 Adjustments (net of tax): Asbestos-related expenses (58.7) (2.93) (9.3) (0.46) Restructuring costs (1.6) (0.08) (1.3) (0.06) Gain (loss) on sale of assets (0.2) (0.01) 0.1 - CEO transition costs - - 0.3 0.01 Environmental reserve adjustment (1.0) (0.05) - - Tax accrual adjustments 9.9 0.51 - - -------------------------------------------------------------------------- Impact (51.6) (2.56) (10.2) (0.51) -------------------------------------------------------------------------- Net income (loss) from continuing operations $(39.3) $(1.96) $1.7 $0.08 ========================================================================== Years Ended December 31, -------------------------------------------------------------------------- 2009 2008 As adjusted (1) ------------------ ------------------ $ Per share $ Per share ------------------ ------------------ Income before asbestos-related expenses and other selected items $34.8 $1.72 $69.6 $3.31 Adjustments (net of tax): Asbestos-related expenses (84.7) (4.23) (32.6) (1.55) Restructuring costs (6.4) (0.32) (2.9) (0.14) Goodwill impairment charge (96.1) (4.81) - - Adjustment of liability for retiree medical benefits 12.0 0.60 - - Warranty claim settlement - - 1.6 0.07 Gain (loss) on sale of assets (0.2) (0.01) 1.5 0.07 CEO transition costs (1.0) (0.05) (2.2) (0.10) Proxy contest expenses - - (2.2) (0.10) Environmental reserve adjustment (1.3) (0.06) - - Tax accrual adjustments (0.7) (0.03) - - -------------------------------------------------------------------------- Impact (178.4) (8.91) (36.8) (1.75) -------------------------------------------------------------------------- Net income (loss) from continuing operations $(143.6) $(7.19) $32.8 $1.56 ========================================================================== Management of the Company believes that it would be helpful to the readers of the financial statements to understand the impact of certain selected items on the Company's reported net income and earnings per share, including items that may recur from time to time. This presentation enables readers to better compare EnPro Industries, Inc. to other diversified industrial manufacturing companies that do not incur significant asbestos-related expenses, the sporadic impact of restructuring activities or other selected items. Management acknowledges that there are many items that impact a company's reported results and this list is not intended to present all items that may have impacted these results. The amounts above, which may be considered non-GAAP financial measures, are shown on an after-tax basis and have been calculated by applying a 37.5% assumed effective tax rate to the pre-tax amount except for the goodwill impairment adjustment for which a $17 million benefit is reflected. The tax accrual adjustments have already been stated in after- tax amounts. The pre-tax amounts for the asbestos-related expenses and goodwill impairment charge are separately presented in the accompanying consolidated statements. The restructuring costs, warranty claim settlement and gain (loss) on sale of assets are included as part of other operating expense (income), net, the adjustment of liability for retiree medical benefits, the environmental reserve adjustment and the proxy contest expenses are included in other (non-operating) income (expense), net and the CEO transition costs are included in selling, general and administrative expenses. The tax accrual adjustments are reflected in income tax expense. Per share amounts were calculated by dividing by the weighted-average shares of common stock outstanding during the periods. EnPro Industries, Inc. Reconciliation of EBITDA to Segment Profit (Loss) (Unaudited) ------------------------------------------------------------- For the Quarters and Years Ended December 31, 2009 and 2008 (Stated in Millions of Dollars) Quarter Ended December 31, 2009 ------------------------------- Engine Sealing Engineered Prods. and Total Products Products Services Segments ------------------------------------------ Earnings before interest, income taxes, depreciation and amortization (EBITDA) $18.1 $6.3 $10.7 $35.1 Deduct depreciation and amortization expense (4.4) (4.9) (1.1) (10.4) ------------------------------------------ Segment profit $13.7 $1.4 $9.6 $24.7 ========================================== EBITDA margin 17.4% 9.6% 20.0% 15.7% ========================================== Quarter Ended December 31, 2008 As adjusted (1) ------------------------------- Engine Sealing Engineered Prods. and Total Products Products Services Segments ------------------------------------------- Earnings before interest, income taxes, depreciation and amortization (EBITDA) $19.8 $6.0 $10.7 $36.5 Deduct depreciation and amortization expense (4.0) (4.7) (1.0) (9.7) ------------------------------------------ Segment profit $15.8 $1.3 $9.7 $26.8 ========================================== EBITDA margin 17.1% 8.9% 18.2% 15.1% ========================================== Year Ended December 31, 2009 ---------------------------- Engine Sealing Engineered Prods. and Total Products Products Services Segments ------------------------------------------- Earnings before interest, income taxes, depreciation and amortization (EBITDA) $72.7 $5.7 $34.3 $112.7 Deduct depreciation and amortization expense (16.9) (19.0) (3.8) (39.7) ------------------------------------------- Segment profit (loss) $55.8 $(13.3) $30.5 $73.0 ========================================== EBITDA margin 18.2% 2.4% 20.6% 14.0% ========================================== Year Ended December 31, 2008 As adjusted (1) ---------------------------- Engine Sealing Engineered Prods. and Total Products Products Services Segments ------------------------------------------- Earnings before interest, income taxes, depreciation and amortization (EBITDA) $102.9 $58.1 $24.1 $185.1 Deduct depreciation and amortization expense (15.9) (19.6) (3.9) (39.4) ------------------------------------------- Segment profit $87.0 $38.5 $20.2 $145.7 ========================================== EBITDA margin 20.4% 16.6% 17.0% 18.6% ========================================== For a reconciliation of segment profit to net income (loss), please refer to the Segment Information (Unaudited) schedule. EnPro Industries, Inc. Reconciliation of EBITDAA to Net Income (Loss) from Continuing Operations (Unaudited) -------------------------------------------------------------------------- For the Quarters and Years Ended December 31, 2009 and 2008 (Stated in Millions of Dollars) Quarters Ended Years Ended December 31, December 31, ------------------------- ------------------------ 2009 2008 2009 2008 As adjusted (1) As adjusted (1) ------------------------- ------------------------ Earnings before interest, income taxes, depreciation, amortization, asbestos- related expenses and other selected items (EBITDAA) $30.3 $31.7 $97.1 $158.5 Adjustments: Interest expense, net (2.7) (2.8) (11.4) (10.0) Income tax benefit (expense) 42.1 (1.1) 54.6 (16.8) Depreciation and amortization expense (10.6) (10.0) (40.3) (40.1) Asbestos-related expenses (93.9) (14.8) (135.5) (52.1) Restructuring costs (2.5) (2.0) (10.2) (4.6) Goodwill impairment charge - - (113.1) - Adjustment of liability for retiree medical benefits - - 19.2 - Environmental reserve adjustment (1.7) - (2.1) - Warranty claim settlement - - - 2.5 Gain (loss) on sale of assets (0.3) 0.2 (0.3) 2.4 Proxy contest expenses - - - (3.4) CEO transition costs - 0.5 (1.6) (3.6) ------------------------- ------------------------ Impact (69.6) (30.0) (240.7) (125.7) ------------------------- ------------------------ Net income (loss) From continuing operations $(39.3) $1.7 $(143.6) $32.8 ========================= ========================

    Photo: http://www.newscom.com/cgi-bin/prnh/20050825/CLTH030LOGO EnPro Industries, Inc.

    CONTACT: Investor Contact: Don Washington, Director, Investor Relations
    and Corporate Communications, +1-704-731-1527,
    don.washington@enproindustries.com

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




    Perma-Fix Hosts Corporate Presentation on Investor Roadshow Website; Provides Business Overview and Update

    ATLANTA, Feb. 11 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services, Inc. today announced that it has posted its investor presentation along with an audio recording of Dr. Louis F. Centofanti on the Investor Roadshow website (http://www.investorroadshow.com/), an online portal for connecting investors with executives of publicly traded companies.

    Dr. Louis F. Centofanti, Chairman and CEO, commented, "We are very well positioned in the nuclear waste treatment and nuclear services industry. We experienced strong revenue growth for the third quarter and first nine months of 2009. In the third quarter alone, revenue grew approximately 66% compared to the same period last year and we generated net income of $2.6 million versus net loss of $341,000 in the same period last year. We expect our growth will continue in the fourth quarter and 2010 as we treat more complex waste streams. We will be providing our fourth quarter and calendar year 2009 financial results in mid March with the release of our fourth quarter 2009 results. In the meantime, feel free to access our corporate presentation at the Investor Roadshow website."

    About Investor Roadshow

    Investor Roadshow brings the experience of attending a one-on-one meeting or group presentation with corporate management direct to your home or office. For qualified institutions and individual investors, a live one-on-one virtual meeting can be arranged through the site that suits investors busy schedules, complete with Q&A. Investors can also utilize the site to request additional information from the featured companies. The proprietary Investor Roadshow technology, powered by Equisolve, seamlessly integrates with the company's own IR website.

    About Perma-Fix Environmental Services

    Perma-Fix Environmental Services, Inc., a national environmental services company, provides unique mixed waste and industrial waste management services. The Company's increased focus on nuclear services includes radioactive and mixed waste treatment services for hospitals, research labs and institutions, federal agencies, including DOE, DOD, and nuclear utilities. The Company's industrial services treat hazardous and non-hazardous waste for a variety of customers including, Fortune 500 companies, federal, state and local agencies and thousands of other clients. Nationwide, the company operates seven waste treatment facilities.

    This press release contains "forward-looking statements" which are based largely on the Company's expectations and are subject to various business risks and uncertainties, certain of which are beyond the Company's control. All statements, other than statements of historical facts, are forward-looking statements. Statements that include words "expect", "intend", "plan", "believe", "project", "anticipate", "estimate", and similar statements of a future or forward-looking nature are forward-looking statement. Forward-looking statements include, but are not limited to: that we expect our growth to continue into the fourth quarter and 2010. These forward-looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. While the Company believes the expectations reflected in this news release are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this release, including, without limitation: future economic conditions; industry conditions; competitive pressures; type of waste that we treat; our ability to apply and market our technologies; neither the federal government nor any other party to a subcontract involving the federal government terminates or renegotiates any material contract granted to us prior to expiration of the term of the contract, as such contracts are generally terminable or renegotiated on 30 day notice, at the government's option; the government or such other party to a contract fails to abide by or comply with the contract or deliver waste as anticipated under the contract; that congress fails to provide appropriate funding for the contemplated remediation projects; and the additional factors referred to under "Special Note Regarding Forward-Looking Statements" of our 2008 Form 10-K and Form 10-Q for the quarters ending March 31, 2009, June 30, 2009, and September 30, 2009. The Company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.

    Please visit us on the World Wide Web at http://www.perma-fix.com/.

    Perma-Fix Environmental Services, Inc.

    CONTACT: Dr. Louis F. Centofanti, Chairman and CEO of Perma-Fix
    Environmental Services, Inc., +1-770-587-5155; or David K. Waldman, US
    Investor Relations of Crescendo Communications, LLC, +1-212-671-1020 x101; or
    Herbert Strauss, European Investor Relations, +43 316 296 316,
    herbert@eu-ir.com

    Web Site: http://www.perma-fix.com/




    FirstEnergy Reports 2009 Earnings

    AKRON, Ohio, Feb. 11 /PRNewswire-FirstCall/ -- FirstEnergy Corp. today reported 2009 basic earnings of $3.31 per share of common stock ($3.29 diluted) on net income of $990 million, and revenue of $12.97 billion. On a non-GAAP* basis, 2009 basic earnings were $3.77 per share ($3.75 diluted), excluding special items listed below. In 2008, basic earnings were $4.41 per share of common stock ($4.38 diluted), on net income of $1.34 billion, and revenue of $13.63 billion. Non-GAAP 2008 earnings were $4.57 per share ($4.53 diluted).

    For the fourth quarter of 2009, basic and diluted earnings were $0.78 per common share, on net income of $236 million, and revenue of $3.0 billion. These results exclude a gain related to the resolution of an income tax issue, and an offsetting adjustment related to legacy purchase power contracts. On a non-GAAP basis, fourth quarter 2009 basic and diluted earnings were $0.77 per share. In the fourth quarter of 2008, net income was $328 million, or basic and diluted earnings of $1.09 per common share, on revenue of $3.2 billion. Fourth quarter 2008 non-GAAP basic and diluted earnings were $1.21 per share.

    Fourth Quarter and Full Year GAAP to Non-GAAP* Reconciliation ------------------------------------------------------------- Fourth Quarter Full Year 2009 2008 2009 2008 ---- ---- ---- ---- Basic Earnings Per Share (GAAP) $0.78 $1.09 $3.31 $4.41 Excluding Special Items: Regulatory Charges -- -- 0.55 -- Trust Securities Impairment 0.05 0.12 0.09 0.25 Organizational Restructuring/ Incremental Strike Costs -- -- 0.14 -- Debt Redemption Premiums 0.01 -- 0.31 -- Income Tax Issue Resolution (0.49) -- (0.53) -- Non-Core Asset Sales/Impairments -- -- (0.52) (0.06) Power Contract Mark-To-Market Adj. 0.42 -- 0.42 -- Litigation Settlement -- -- -- (0.03) ------------ ------------- Basic Earnings Per Share (Non-GAAP*) $0.77 $1.21 $3.77 $4.57

    "We are pleased with our results in 2009, particularly in light of the challenging economic environment and unusually mild weather we experienced in our region," said Anthony J. Alexander, president and chief executive officer of FirstEnergy. "During the year, we made significant progress expanding our competitive retail business, enhancing our financial strength and flexibility, and accelerating capital projects at many of our facilities. As a result, we believe we are better positioned for success as the economy recovers."

    Consolidated electric generation sales in 2009 were down 9 percent compared with 2008, related to economic and weather conditions, and changes in generation supply and pricing for the Ohio load. Sales in the retail market were down 8 percent and sales in the wholesale market decreased 14 percent. In the fourth quarter of 2009, consolidated generation sales were down 12 percent compared with the fourth quarter of 2008. Retail sales were down 8 percent while wholesale sales declined 27 percent compared to the same period in 2008.

    Total distribution deliveries in 2009 were down 7 percent compared to 2008, and down 3 percent in the fourth quarter.

    In addition to lower distribution and wholesale generation revenues, adjusted results for the full year and fourth quarter 2009 were impacted by higher purchased power costs, a reduction in transition cost recovery in Ohio and higher pension costs. These factors were partially offset by lower operation and maintenance expenses, higher investment income, the impact of delivery service improvement riders in Ohio and a lower effective income tax rate.

    FirstEnergy today also affirmed its 2010 earnings guidance of $3.50 to $3.70 per share of common stock on a non-GAAP basis, which was originally announced on December 3, 2009. At this time, the company cannot estimate the potential impact of any special items that may create a difference between earnings on a non-GAAP and GAAP basis.

    FirstEnergy's Consolidated Report to the Financial Community - which provides highlights on company developments and financial results for the year and for the fourth quarter of 2009 - is posted on the company's Web site - http://www.firstenergycorp.com/ir. To access the report, click on Q4 2009 Consolidated Report to the Financial Community.

    The company will hold a live Internet Webcast today at 9:00 a.m. EST to discuss the joint announcement issued this morning by FirstEnergy and Allegheny Energy Inc. The Webcast can be accessed by visiting http://www.firstenergycorp.com/ir, and clicking on the Webcast link. As a result, FirstEnergy's fourth quarter conference call and Webcast previously scheduled for February 23, 2010, has been cancelled.

    FirstEnergy is a diversified energy company headquartered in Akron, Ohio. Its subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services. Its seven electric utility operating companies comprise the nation's fifth largest investor-owned electric system, based on 4.5 million customers served within a 36,100-square-mile area of Ohio, Pennsylvania and New Jersey; and its generation subsidiaries control more than 14,000 megawatts of capacity.

    (*) This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP). These non-GAAP financial measures are intended to complement, and not considered as an alternative, to the most directly comparable GAAP financial measure. Also, the non-GAAP financial measures may not be comparable to similarly titled measures used by other entities.

    Forward-Looking Statements: This news release includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms "anticipate," "potential," "expect," "believe," "estimate" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual results may differ materially due to the speed and nature of increased competition in the electric utility industry and legislative and regulatory changes affecting how generation rates will be determined following the expiration of existing rate plans in Pennsylvania, the impact of the Public Utilities Commission of Ohio's regulatory process on the Ohio Companies associated with the distribution rate case, business and regulatory impacts from American Transmission Systems, Incorporated's realignment into PJM Interconnection, L.L.C., economic or weather conditions affecting future sales and margins, changes in markets for energy services, changing energy and commodity market prices and availability, replacement power costs being higher than anticipated or inadequately hedged, the continued ability of FirstEnergy's regulated utilities to collect transition and other charges or to recover increased transmission costs, operating and maintenance costs being higher than anticipated, other legislative and regulatory changes, revised environmental requirements, including possible greenhouse gas emission regulations, the potential impacts of the U.S. Court of Appeals' July 11, 2008 decision requiring revisions to the Clean Air Interstate Rules and the scope of any laws, rules or regulations that may ultimately take their place, the uncertainty of the timing and amounts of the capital expenditures needed to, among other things, implement the Air Quality Compliance Plan (including that such amounts could be higher than anticipated or that certain generating units may need to be shut down) or levels of emission reductions related to the Consent Decree resolving the New Source Review litigation or other similar potential regulatory initiatives or actions, adverse regulatory or legal decisions and outcomes (including, but not limited to, the revocation of necessary licenses or operating permits and oversight) by the Nuclear Regulatory Commission, Metropolitan Edison Company's and Pennsylvania Electric Company's transmission service charge filings with the Pennsylvania Public Utility Commission, the continuing availability of generating units and their ability to operate at or near full capacity, the ability to comply with applicable state and federal reliability standards, the ability to accomplish or realize anticipated benefits from strategic goals (including employee workforce initiatives), the ability to improve electric commodity margins and to experience growth in the distribution business, the changing market conditions that could affect the value of assets held in FirstEnergy's nuclear decommissioning trusts, pension trusts and other trust funds, and cause it to make additional contributions sooner, or in an amount that is larger than currently anticipated, the ability to access the public securities and other capital and credit markets in accordance with FirstEnergy's financing plan and the cost of such capital, changes in general economic conditions affecting the company, the state of the capital and credit markets affecting the company, interest rates and any actions taken by credit rating agencies that could negatively affect FirstEnergy's access to financing or its costs or increase its requirements to post additional collateral to support outstanding commodity positions, letters of credit and other financial guarantees, the continuing decline of the national and regional economy and its impact on the company's major industrial and commercial customers, issues concerning the soundness of financial institutions and counterparties with which FirstEnergy does business, and the risks and other factors discussed from time to time in its Securities and Exchange Commission filings, and other similar factors. The foregoing review of factors should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy's business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy expressly disclaims any current intention to update any forward-looking statements contained herein as a result of new information, future events, or otherwise.

    FirstEnergy Corp.

    CONTACT: Media: Tricia Ingraham, +1-330-384-5247; Investors: Ron
    Seeholzer, +1-330-384-5415, both of FirstEnergy Corp.

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

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