Ethernet Expo Americas 2009 Emerges as the Industry's Largest Ethernet Event

NEW YORK, November 5 /PRNewswire/ --

Ethernet Expo Americas 2009, hosted by Light Reading (www.lightreading.com), by far the leading online publication for the worldwide communications industry, and Heavy Reading (www.heavyreading.com), its prestigious market research division, emerged as the largest Ethernet Expo to date and the largest Ethernet event in the industry. With over 600 non-sponsored attendees, of which 440 were service providers or operators, Ethernet Expo Americas 2009 greatly surpassed its attendee goal of 500.

In addition to a record number of attendees, Ethernet Expo Americas 2009 included an unprecedented speaker lineup of 21 service providers and 22 Carrier Ethernet network solutions providers and industry analysts. Ethernet Expo Americas 2009, a two-day conference and exposition that took place at the Hilton New York on November 3 and 4, was Light Reading's ninth Ethernet Expo and was chaired by Heavy Reading Senior Analyst and Ethernet expert Stan Hubbard. The conference featured lively panel sessions, debates, and roundtables on where Ethernet is likely to take us for the rest of this decade.

"On behalf of Light Reading and Ethernet Expo sponsors, I would like to thank our service provider guests for making this year's event the most successful ever from attendee, networking, and content perspectives," said Hubbard. "Senior service provider speakers provided invaluable insight regarding Ethernet business services trends, Carrier Ethernet's role in support of mobile backhaul applications, and the quickening pace at which high-performance Carrier Ethernet-related technologies are taking over telecom networks. Public and private comments at the Expo indicate the Carrier Ethernet services and equipment markets remain healthy and that industry innovation is alive and well even in the midst of the sluggish economy."

Ethernet Expo sponsors included Association Sponsor MEF; Super Platinum Sponsor Ciena; Platinum Sponsor Anda Networks; and Gold Sponsors Accedian Networks, ADVA Optical Networking, Alcatel-Lucent, Canoga Perkins, ECI, Equinix, EXFO, Extreme Networks, Fujitsu, Hatteras Networks, JDSU, Juniper Networks, MRV, Nokia Siemens Networks, Overture Networks, Positron Access Solutions, RAD Data Communications, Telco Systems, Tellabs, Time Warner Business Class, Transmode, and Zhone. Additional exhibitors include Champion One, Cyan, Lightower Fiber Networks, NEC, Net 02 Technologies, Omnitron Systems Technology, Orckit Corrigent, Transition Networks, VeEX, and Worldwide Supply.

To see what happened at Ethernet Expo and listen to interviews with Ethernet Expo speakers and attendees, visit www.lightreading.com.

About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading online media, research, and focused event company serving the US$3 trillion worldwide communications market. Lightreading.com is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading's research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as focused one-day events tailored for cable, mobile, and wireline executives. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.

About TechWeb

TechWeb (http://techweb.com/aboutus), the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events, Interop, Web 2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market-leading, award-winning InformationWeek, TechNet, MSDN, and Wall Street & Technology magazines. TechWeb also provides end-to-end services including next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than US$2.5 billion.

*13.3 million business decision-makers: based on number of monthly connections

About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting, and monitoring; and, the development and monetization of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities - from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists - with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to http://www.unitedbusinessmedia.com.

Contact: Amy Averbook +1-212-600-3373 averbook@lightreading.com

Light Reading

Amy Averbook, +1-212-600-3373, averbook@lightreading.com

Saul Centers, Inc. Reports Third Quarter 2009 Earnings

BETHESDA, Md., Nov. 5 /PRNewswire-FirstCall/ -- Saul Centers, Inc. , an equity real estate investment trust (REIT), announced its operating results for the quarter ended September 30, 2009. Total revenue for the three months ended September 30, 2009 ("2009 Quarter") decreased 1.6% to $40,273,000 compared to $40,947,000 for the three months ended September 30, 2008 ("2008 Quarter"). Operating income, which is net income available to common stockholders before gain on property dispositions, loss on early extinguishment of debt, income attributable to the noncontrolling interest and preferred stock dividends, increased 0.8% to $11,349,000 for the 2009 Quarter compared to $11,264,000 for the 2008 Quarter. Net income available to common stockholders was $5,822,000 or $0.32 per diluted share for the 2009 Quarter, compared to net income available to common stockholders of $5,736,000 or $0.32 per diluted share for the 2008 Quarter. Results for the 2008 Quarter were impacted by a one-time non-cash depreciation charge of $1,112,000 arising from the demolition of a portion of the Smallwood Village Center in conjunction with the Company's redevelopment of the property.

Same property revenue for the total portfolio decreased 2.3% for the 2009 Quarter compared to the 2008 Quarter and same property operating income decreased 2.0%. The same property comparisons exclude the results of operations of properties not in operation for each of the comparable reporting quarters. Same property operating income in the shopping center portfolio decreased 2.9% for the 2009 Quarter compared to the 2008 Quarter. The primary cause of this decrease was a decline in base rent due to decreased leasing levels, and to a lesser extent, reduced other income, primarily due to reduced lease termination fees collected during the 2009 Quarter. Same property operating income in the office portfolio increased 1.4% for the 2009 Quarter.

For the nine months ended September 30, 2009 ("2009 Period"), total revenue decreased 0.3% to $119,378,000 compared to $119,774,000 for the nine months ended September 30, 2008 ("2008 Period") and operating income decreased 3.0% to $33,473,000 compared to $34,512,000 for the 2008 Period. Net income available to common stockholders was $15,712,000 or $0.88 per diluted share for the 2009 Period, compared to $19,212,000 or $1.07 per diluted share for the 2008 Period. Overall same property revenue for the total portfolio decreased 1.5% for the 2009 Period compared to the 2008 Period and same property operating income decreased 3.1%. For the 2009 Period, shopping center same property operating income decreased 4.3% due to overall increases in tenant vacancies and credit loss reserves. Same property operating income in the office portfolio increased 1.1% for the 2009 Period, due primarily to lease termination fees received, which were largely offset by increased tenant vacancy at Avenel Business Park.

As of September 30, 2009, 91.8% of the operating portfolio, including the Northrock and Westview Village development projects which are phasing into service, was leased compared to 94.7% at September 30, 2008. On a same property basis, 92.9% of the portfolio was leased, compared to the prior year level of 94.7%. The 2009 leasing percentages declined due to a net decrease of approximately 147,000 square feet of leased space.

Funds from operations (FFO) available to common shareholders (after deducting preferred stock dividends) decreased 8.3% to $14,648,000 in the 2009 Quarter compared to $15,966,000 for the 2008 Quarter. On a diluted per share basis, FFO available to common shareholders decreased 7.4% to $0.63 per share for the 2009 Quarter compared to $0.68 per share for the 2008 Quarter. FFO, a widely accepted non-GAAP financial measure of operating performance for REITs, is defined as net income plus income attributable to the noncontrolling interest, extraordinary items and real estate depreciation and amortization, excluding gains from property dispositions. FFO available to common shareholders for the 2009 Period decreased 11.8% to $41,666,000 from $47,263,000 during the 2008 Period. Per share FFO available to common shareholders for the 2009 Period decreased 11.4% to $1.79 per diluted share compared to $2.02 per diluted share for the 2008 Period. FFO decreased in the 2009 Period primarily due to the expense associated with the second quarter financing activities ($2,023,000 or $0.09 per diluted share), increased preferred stock dividends ($1,687,000 or $0.07 per diluted share), and to a lesser extent, decreased property operating income. During the 2009 second quarter, the Company refinanced mortgage debt on four properties. As a result of these refinancings, the Company incurred expense totaling $1,660,000 related to the early retirement of the existing mortgage debt due to mature December 2011. The Company also modified its existing revolving credit agreement which was due to expire in December 2010. Interest expense and amortization of deferred debt costs includes $363,000 associated with the modification. Therefore, total expense recognized in the 2009 Period for these financing activities was $2,023,000.

Saul Centers is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland. Saul Centers currently operates and manages a real estate portfolio of 52 community and neighborhood shopping center and office properties totaling approximately 8.4 million square feet of leasable area. Over 80% of the Company's property operating income is generated from properties in the metropolitan Washington, DC/Baltimore area.

Saul Centers, Inc. Condensed Consolidated Balance Sheets ($ in thousands) September 30, December 31, 2009 2008 ---- ---- Assets (Unaudited) Real estate investments Land $223,035 $215,407 Buildings and equipment 738,125 713,154 Construction in progress 126,066 98,920 ------- ------ 1,087,226 1,027,481 Accumulated depreciation (270,413) (252,763) -------- -------- 816,813 774,718 Cash and cash equivalents 14,297 13,006 Accounts receivable and accrued income, net 36,815 37,495 Deferred leasing costs, net 16,170 16,901 Prepaid expenses, net 4,860 2,981 Deferred debt costs, net 7,466 5,875 Other assets 8,294 2,897 ----- ----- Total assets $904,715 $853,873 ======== ======== Liabilities Mortgage notes payable $569,634 $548,265 Construction loans payable 48,294 19,230 Dividends and distributions payable 12,179 12,864 Accounts payable, accrued expenses and other liabilities 27,295 22,394 Deferred income 24,015 23,233 ------ ------ Total liabilities 681,417 625,986 ------- ------- Stockholders' equity Preferred stock 179,328 179,328 Common stock 179 179 Additional paid-in capital 165,794 164,278 Accumulated deficit (123,541) (118,865) -------- -------- Total Saul Centers, Inc. stockholders' equity 221,760 224,920 Noncontrolling interest 1,538 2,967 ----- ----- Total stockholders' equity 223,298 227,887 ------- ------- Total liabilities and stockholders' equity $904,715 $853,873 ======== ======== Saul Centers, Inc. Condensed Consolidated Statements of Operations (In thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Revenue (Unaudited) (Unaudited) Base rent $31,776 $31,466 $93,572 $93,599 Expense recoveries 7,145 7,652 21,773 21,730 Percentage rent 214 253 775 799 Other 1,138 1,576 3,258 3,646 ----- ----- ----- ----- Total revenue 40,273 40,947 119,378 119,774 ------ ------ ------- ------- Operating expenses Property operating expenses 4,919 5,360 15,134 14,872 Provision for credit losses 189 236 748 660 Real estate taxes 4,531 4,241 13,567 12,530 Interest expense and amortization of deferred debt costs 8,942 8,568 25,920 25,877 Depreciation and amortization of deferred leasing costs 7,084 8,487 21,208 22,419 General and administrative 3,259 2,791 9,328 8,904 ----- ----- ----- ----- Total operating expenses 28,924 29,683 85,905 85,262 ------ ------ ------ ------ Operating income 11,349 11,264 33,473 34,512 Loss on early extinguishment of debt - - (1,660) - Gain on property dispositions - - - 205 --- --- --- --- Net income 11,349 11,264 31,813 34,717 Income attributable to the noncontrolling interest (1,742) (1,743) (4,746) (5,837) ------ ------ ------ ------ Net income attributable to Saul Centers, Inc. 9,607 9,521 27,067 28,880 Preferred dividends (3,785) (3,785) (11,355) (9,668) ------ ------ ------- ------ Net income available to common stockholders $5,822 $5,736 $15,712 $19,212 ====== ====== ======= ======= Per share net income available to common stockholders: Diluted $0.32 $0.32 $0.88 $1.07 ===== ===== ===== ===== Weighted average common stock: Common stock 17,892 17,834 17,881 17,801 Effect of dilutive options 47 157 37 170 -- --- -- --- Diluted weighted average common stock 17,939 17,991 17,918 17,971 ====== ====== ====== ====== Saul Centers, Inc. Supplemental Information (In thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Reconciliation of (Unaudited) (Unaudited) net income attributable to Saul Centers Inc. to FFO: (1) Net income attributable to Saul Centers Inc. $9,607 $9,521 $27,067 $28,880 Less: Gain on property dispositions - - - (205) Add: Real property depreciation and amortization 7,084 8,487 21,208 22,419 Add: Income attributable to the noncontrolling interest 1,742 1,743 4,746 5,837 ----- ----- ----- ----- FFO 18,433 19,751 53,021 56,931 Less: Preferred dividends (3,785) (3,785) (11,355) (9,668) ------ ------ ------- ------ FFO available to common shareholders $14,648 $15,966 $41,666 $47,263 ======= ======= ======= ======= Weighted average shares : Diluted weighted average common stock 17,939 17,991 17,918 17,971 Convertible limited partnership units 5,416 5,416 5,416 5,416 ----- ----- ----- ----- Diluted & converted weighted average shares 23,355 23,407 23,334 23,387 ====== ====== ====== ====== Per share amounts: FFO available to common shareholders (diluted) $0.63 $0.68 $1.79 $2.02 ===== ===== ===== ===== Reconciliation of net income attributable to Saul Centers Inc. to same property operating income: Net income attributable to Saul Centers Inc. $9,607 $9,521 $27,067 $28,880 Add: Interest expense and amortization of deferred debt costs 8,942 8,568 25,920 25,877 Add: Depreciation and amortization of deferred leasing costs 7,084 8,487 21,208 22,419 Add: General and administrative 3,259 2,791 9,328 8,904 Add: Loss on early extinguishment of debt - - 1,660 - Less: Gain on property dispositions - - - (205) Less: Interest income - (190) (6) (501) Add: Income attributable to the noncontrolling interest 1,742 1,743 4,746 5,837 ----- ----- ----- ----- Property operating income 30,634 30,920 89,923 91,211 Less: Acquisitions & developments (319) - (3,729) (2,298) Total same property operating income $30,315 $30,920 $86,194 $88,913 ======= ======= ======= ======= Total shopping centers $23,448 $24,149 $65,219 $68,158 Total office properties 6,867 6,771 20,975 20,755 ----- ----- ------ ------ Total same property operating income $30,315 $30,920 $86,194 $88,913 ======= ======= ======= ======= (1) The National Association of Real Estate Investment Trusts (NAREIT) developed FFO as a relative non-GAAP financial measure of performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by NAREIT as net income, computed in accordance with GAAP, plus income attributable to the noncontrolling interest, extraordinary items and real estate depreciation and amortization, excluding gains or losses from property dispositions. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs, which is disclosed in the Company's Consolidated Statements of Cash Flows for the applicable periods. There are no material legal or functional restrictions on the use of FFO. FFO should not be considered as an alternative to net income, its most directly comparable GAAP measure, as an indicator of the Company's operating performance, or as an alternative to cash flows as a measure of liquidity. Management considers FFO a meaningful supplemental measure of operating performance because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time (i.e. depreciation), which is contrary to what we believe occurs with our assets, and because industry analysts have accepted it as a performance measure. FFO may not be comparable to similarly titled measures employed by other REITs.

Saul Centers, Inc.

CONTACT: Scott V. Schneider, Saul Centers, Inc., +1-301-986-6220

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

ResMed Inc. Announces Record Financial Results for the Quarter Ended September 30, 2009

SAN DIEGO, Nov. 5 /PRNewswire-FirstCall/ -- ResMed Inc. today announced record revenue and income results for the quarter ended September 30, 2009. Revenue for the September 2009 quarter was $247.0 million, a 13% increase (a 16% increase on a constant currency basis) over the quarter ended September 30, 2008. For the quarter ended September 30, 2009, income from operations was $52.7 million and net income was $42.1 million, an increase of 44% and 50%, respectively, compared to the quarter ended September 30, 2008. Diluted earnings per share for the quarter ended September 30, 2009 was $0.55, an increase of 53% compared to the quarter ended September 30, 2008.

SG&A costs were $76.8 million for the September 2009 quarter, an increase of $5.4 million or 8% (an 11% increase on a constant currency basis) over the same period in the prior fiscal year. SG&A expenses were favorably impacted by the appreciation of the US dollar against international currencies. The increase in SG&A was primarily due to expenses necessary to support sales growth. SG&A costs were 31% of revenue in the September 2009 quarter, compared to 33% in the same period in the prior fiscal year.

R&D expenses were $17.9 million for the September 2009 quarter, or approximately 7% of revenue. R&D expenses increased by 4% (a 9% increase on a constant currency basis) compared to the prior year quarter. R&D expenses were positively impacted by the appreciation of the US dollar against international currencies, particularly the Australian dollar. The increase in research and development outlays reflects ResMed's continuing commitment to innovation within its product portfolio, as well as an ongoing commitment to clinical research and product development.

Amortization of acquired intangibles was $1.8 million ($1.2 million, net of tax) for the quarter ended September 30, 2009. Stock-based compensation costs incurred during the quarter ended September 30, 2009 of $6.5 million ($4.5 million, net of tax) consisted of expenses associated with stock options granted to employees and with our employee stock purchase plan.

During the quarter, the company donated $1.0 million ($0.6 million, net of tax) to the ResMed Foundation. The Foundation was established to promote research into the deleterious medical consequences of untreated sleep-disordered breathing.

Inventory, at $175.1 million, increased by $17.7 million compared to June 30, 2009. Accounts receivable days sales outstanding, at 77 days, increased by 3 days compared to June 30, 2009.

Kieran T. Gallahue, President and Chief Executive Officer, commented, "In the first quarter of fiscal 2010, we continued to show strong growth year over year. Our favorable mix of product sales and market share gains led to a 19% increase in the Americas over the prior year quarter, resulting in $134.7 million in revenue. Sales outside the Americas were impacted by currency movements, in particular the depreciation of the Euro against the US dollar. As a result, sales outside the Americas increased by 8% to $112.3 million, but were up 13% in constant currency terms. Cash flow from operations for the September quarter was $64.1 million. Our robust revenue growth, strong operating cash flows and exciting product pipeline continue to position us well for the future."

Mr. Gallahue continued, "As promised, we are steadily introducing new products in what proves to be a very exciting year for launching innovative treatment options for sleep-disordered breathing. This summer, we launched the ApneaLink(TM) Plus, our type 3 device for home sleep testing and more recently, we launched the Swift(TM) FX mask in Europe and the Mirage(TM) SoftGel mask in the Americas. These two new masks are receiving a great reception. We are also taking active steps, both in concert with another industry participant, and on our own, to drive further awareness in the primary care community of the health dangers of sleep-disordered breathing through educational programs. These efforts should further enlighten both doctors and patients especially with respect to the relationship between sleep-disordered breathing/obstructive sleep apnea and co-morbidities such as cardiac disease, diabetes, hypertension and obesity as well as the dangers of sleep apnea in regard to occupational health and safety, especially in the transport industry."

About ResMed

ResMed is a leading manufacturer of medical equipment for the treatment and management of sleep-disordered breathing and other respiratory disorders. We are dedicated to developing innovative products to improve the lives of those who suffer from these conditions and to increasing awareness among patients and healthcare professionals of the potentially serious health consequences of untreated sleep-disordered breathing. For more information on ResMed, visit http://www.resmed.com/.

ResMed will host a conference call at 1:30 p.m. US Pacific Time today to discuss these quarterly results. Individuals wishing to access the conference call may do so via ResMed's Web site at http://www.resmed.com/ or by dialing (866) 700-7173 (domestic) or +1 (617) 213-8838 (international) and entering conference I.D. No. 58367514. Please allow extra time prior to the call to visit the Web site and download the streaming media player (Windows Media Player) required to listen to the Internet broadcast. The online archive of the broadcast will be available approximately 90 minutes after the live call and will be available for two weeks. A telephone replay of the conference call is available by dialing (888) 286-8010 (domestic) and +1 (617) 801-6888 (international) and entering conference I.D. No. 96602021.

Further information can be obtained by contacting Connie Bienfait at ResMed Inc., San Diego, at (858) 836-5971; Brett Sandercock at ResMed Limited, Sydney, on (+612) 8884-2090; or by visiting the Company's multilingual Web site at http://www.resmed.com/.

Statements contained in this release that are not historical facts are "forward-looking" statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements regarding the Company's future revenue, earnings or expenses, new product development and new markets for the Company's products, are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements. Those risks and uncertainties are discussed in the Company's Annual Report on Form 10-K for its most recent fiscal year and in other reports the Company files with the US Securities & Exchange Commission. Those reports are available on the Company's Web site.

RESMED INC AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) (In US$ thousands, except per share data) Three Months Ended September 30, 2009 2008 ---- ---- Net revenue $246,992 $217,931 Cost of sales 96,814 90,804 ------------- ------ ------ Gross profit 150,178 127,127 ------------ ------- ------- Operating expenses Selling, general and administrative 76,756 71,337 Research and development 17,914 17,293 Amortization of acquired intangible assets 1,845 1,933 Donation to Foundation 1,000 - ---------------------- ----- --- Total operating expenses 97,515 90,563 ------------------------ ------ ------ Income from operations 52,663 36,564 ---------------------- ------ ------ Other income (expense), net: Interest income (expense), net 2,125 3,231 Other, net 3,118 (1,068) ---------- ----- ------ Total other income (expense), net 5,243 2,163 --------------------------------- ----- ----- Income before income taxes 57,906 38,727 Income taxes 15,804 10,701 ------------ ------ ------ Net income $42,102 $28,026 ---------- ------- ------- Basic earnings per share $0.56 $0.37 Diluted earnings per share $0.55 $0.36 Basic shares outstanding 75,394 75,613 Diluted shares outstanding 76,762 77,180 -------------------------- ------ ------ RESMED INC AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) (In US$ thousands except share and per share data) September 30, June 30, 2009 2009 ---- ---- Assets Current assets: Cash and cash equivalents $477,824 $415,650 Accounts receivable, net 208,825 212,096 Inventories 175,108 157,431 Deferred income taxes 43,859 44,368 Income taxes receivable 4,998 2,067 Prepaid expenses and other current assets 29,196 21,672 ----------------------------------------- ------ ------ Total current assets 939,810 853,284 -------------------- ------- ------- Property, plant and equipment, net 397,375 377,613 Goodwill 221,186 213,169 Other intangibles 35,431 35,023 Deferred Income taxes 20,464 19,364 Other assets 5,870 9,515 ------------ ----- ----- Total non-current assets 680,326 654,684 ------------------------ ------- ------- Total assets $1,620,136 $1,507,968 ------------ ---------- ---------- Liabilities and Stockholders' Equity Current liabilities: Accounts payable $47,287 $48,293 Accrued expenses 75,297 67,018 Deferred revenue 31,192 28,881 Income taxes payable 69,808 56,972 Deferred Income taxes 416 391 Current portion of long-term debt 68,296 67,545 --------------------------------- ------ ------ Total current liabilities 292,296 269,100 ------------------------- ------- ------- Non Current Liabilities: Deferred income taxes 11,548 11,137 Deferred revenue 14,878 15,238 Income taxes payable 3,395 3,110 Long-term debt 95,093 94,191 -------------- ------ ------ Total non-current liabilities 124,914 123,676 ----------------------------- ------- ------- Total liabilities 417,210 392,776 ----------------- ------- ------- Stockholders' Equity: Common Stock 300 301 Additional paid-in capital 545,186 522,982 Retained earnings 736,893 694,791 Treasury stock (244,342) (208,659) Accumulated other comprehensive income 164,889 105,777 -------------------------------------- ------- ------- Total stockholders' equity 1,202,926 1,115,192 -------------------------- --------- --------- Total liabilities and stockholders' equity $1,620,136 $1,507,968 ---------- ----------

ResMed Inc.

CONTACT: Connie Bienfait of ResMed Inc., San Diego, +1-858-836-5971; or
Brett Sandercock of ResMed Limited, Sydney, (+612) 8884-2090

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

Harris Stratex Networks Announces Q1 Fiscal 2010 Financial ResultsReports Q1 revenue of $120 million and continued strong cash management

RESEARCH TRIANGLE PARK, N.C., Nov. 5 /PRNewswire-FirstCall/ -- Harris Stratex Networks, Inc. , a leading provider of wireless solutions that enable the evolution of next-generation fixed and mobile broadband networks, today reported financial results for the first quarter of fiscal year 2010, which ended October 2, 2009.

Revenue for the first quarter of fiscal 2010 was $120.0 million, compared with $195.8 million in the year ago period. GAAP net loss was $7.8 million or $0.13 per share, compared with a GAAP net income of $6.5 million or $0.10 per diluted share in the year ago quarter.

Non-GAAP Financial Results

Non-GAAP net loss for the quarter was $800,000, or $0.01 per share, compared with non-GAAP net income of $11.9 million, or $0.20 per share, in the year ago quarter. The non-GAAP gross margin of 33 percent was partially driven by lower logistics expenses and improved supplier pricing on select projects. Non-GAAP results exclude $6.1 million of pre-tax charges comprised primarily of $3.8 million for amortization of purchased intangibles, and $2.2 million of restructuring and stock compensation expense.

A reconciliation of GAAP to non-GAAP financial measures is provided on Table 4 along with the accompanying notes.

As of the quarter end on October 2, 2009 cash, cash equivalents and short-term investments were $133.0 million, compared with $137.1 million as of the quarter ended July 3, 2009. While the overall cash balance was down, due partly to a $4.2 million investment payment, our operating cash flow for the quarter was a positive $4.4 million.

First Quarter Revenue by Business Segment

Revenue in the North America segment was $48.0 million in the first quarter of fiscal 2010, compared with $63.0 million in the year ago period. International revenue was $72.0 million, compared with $132.8 million in the year ago period. Network Operations revenue, which represented 2 percent of revenue in FY2009, is now reported within the North America and International segments.

"The macroeconomic environment remains challenging and continues to constrain our revenue growth potential. However, we are seeing stabilization in North America, continued strength in Asia Pacific and even early indications of potential growth in countries hardest hit by this downturn," said Harald Braun, president and chief executive officer of Harris Stratex Networks. "Our strategy remains one of driving innovation and functionality at cost-effective prices for our global customer base, offering high-speed IP wireless backhaul and 4G-ready solutions. As a testament to our innovation leadership, Harris Stratex was awarded the 2009 Wireless Backhaul Distinction Award for our Eclipse IP wireless backhaul platform. This award recognized the Eclipse platform's global reputation as the most comprehensive wireless backhaul solution currently available.

"Our continued focus on cash management has strengthened our balance sheet and enabled us to post our ninth consecutive quarter of positive operating cash flow. In these challenging times, we believe these accomplishments position us well to fund our R&D and improve our top line growth as the economy recovers," added Braun.

Outlook and Guidance

Due to the current macro-economic situation, it is difficult to provide financial guidance, and it is likely that Harris Stratex Networks' actual results could differ materially from current expectations.

The Company's current revenue expectations for the second quarter of fiscal year 2010 are in the range of $120 million to $130 million.

Conference Call

Harris Stratex Networks will host a conference call today at 4:30 p.m. Eastern Time to discuss the company's financial results. Those wishing to join the call should dial 480-629-9820 (Conference ID: 4167871) at approximately 4:20 p.m. A replay of the call will be available starting approximately one hour after the call's completion until November 12. To access the replay, dial 303-590-3030 (Conference ID: 4167871). A live and archived webcast of the conference call will also be available via the company's Web site at http://www.harrisstratex.com/investors/conference-call.

Non-GAAP Measures and Comparative Financial Information

Harris Stratex Networks, Inc. reports information in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Management of Harris Stratex Networks monitors revenues, cost of product sales and services, research and development expenses, selling and administrative expenses, operating income or loss, tax expense or benefit, net income or loss, and net income or loss per share on a non-GAAP basis for planning and forecasting results in future periods, and may use these measures for some management compensation purposes. These measures exclude certain costs and expenses as shown on the attached GAAP reconciliation table. As a result, management is presenting these non-GAAP measures in addition to results reported in accordance with GAAP to better communicate underlying operational and financial performance in each period. Management believes these non-GAAP measures provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on results in any given period. Management also believes that these non-GAAP measures enhance the ability of an investor to analyze trends in Harris Stratex Networks' business and to better understand our performance.

Harris Stratex Networks management does not, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Harris Stratex Networks presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate the Company's financial performance. Reconciliations of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP are included in the tables below.

About Harris Stratex Networks, Inc.

Harris Stratex Networks, Inc. is a leading provider of wireless solutions that enable the evolution of next-generation fixed and mobile broadband networks. The company offers reliable, flexible and scalable wireless network solutions, backed by comprehensive professional services and support. Harris Stratex Networks serves all global markets, including mobile network operators, public safety agencies, private network operators, utility and transportation companies, government agencies and broadcasters. Customers in more than 135 countries depend on Harris Stratex Networks to build, expand and upgrade their voice, data and video solutions. Harris Stratex Networks is recognized around the world for innovative, wireless networking solutions and services. For more information, visit http://www.harrisstratex.com/.

Forward-Looking Statements

The information contained in this document includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the Securities Exchange Act and Section 27A of the Securities Act. All statements, trend analyses and other information contained herein about the markets for the services and products of Harris Stratex Networks and trends in revenue, as well as other statements identified by the use of forward-looking terminology, including "anticipated", "believe", "plan", "estimate", "expect", "goal", "will", "see", "continues", "delivering", "view", and "intend", or the negative of these terms or other similar expressions, constitute forward-looking statements. These forward-looking statements are based on estimates reflecting the current beliefs of the senior management of Harris Stratex Networks. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should therefore be considered in light of various important factors, including those set forth in this document. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following:

-- continued weakness in the global economy affecting customer spending; -- continued price erosion as a result of increased competition in the microwave transmission industry; -- the volume, timing and customer, product and geographic mix of our product orders may have an impact on our operating results; -- the ability to achieve business plans for Harris Stratex Networks; -- the ability to manage and maintain key customer relationships; -- the ability to maintain projected product rollouts, product functionality, anticipated cost reductions or market acceptance of planned products; -- future costs or expenses related to litigation; -- the ability of our subcontractors to perform or our key suppliers to manufacture or deliver material; -- customers may not pay for products or services in a timely manner, or at all; -- the failure of Harris Stratex Networks to protect its intellectual property rights and its ability to defend itself against intellectual property infringement claims by others; -- currency and interest rate risks; -- the impact of political, economic and geographic risks on international sales; -- uncertain economic conditions in the telecommunications sector combined with operator and supplier consolidation which makes it difficult to estimate growth.

For more information regarding the risks and uncertainties for our business, see "Risk Factors" in our form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on September 4, 2009 as well as other reports filed by Harris Stratex Networks with the SEC from time to time. Harris Stratex Networks undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.

Table 1 HARRIS STRATEX NETWORKS, INC. Fiscal Year 2010 First Quarter Summary CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Quarter Ended ------------- October 2, September 26, 2009 2008 ---------- ------------- (In millions, except per share amounts) Revenue from product sales and services $120.0 $195.8 Cost of product sales and services (80.2) (134.9) Amortization of purchased technology (2.1) (1.8) ----- ----- Gross margin 37.7 59.1 Research and development expenses (10.7) (10.2) Selling and administrative expenses (30.8) (36.5) Amortization of intangible assets (1.5) (1.4) Restructuring charges (1.1) (3.3) ----- ----- Operating (loss) income (6.4) 7.7 Interest income - 0.4 Interest expense (0.5) (0.7) ----- ----- (Loss) income before income taxes (6.9) 7.4 Provision for income taxes (0.9) (0.9) ----- ----- Net (loss) income $(7.8) $6.5 ===== ==== Net (loss) income per common share of Class A and Class B common stock (Notes 1 and 2): Basic $(0.13) $0.11 ====== ===== Diluted $(0.13) $0.10 ====== ===== Basic weighted average shares outstanding 58.9 58.5 ==== ==== Diluted weighted average shares outstanding 58.9 58.5 ==== ==== (1) The net (loss) income per common share amounts are the same for Class A and Class B because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. There was no Class B common stock outstanding during the quarter ended October 2, 2009. (2) For the quarter ended September 26, 2008, the calculation of diluted earnings per share includes a potential deduction to net income of $0.2 million for the assumed after-tax effect of the change in fair value of warrants using the "treasury stock" method. Table 2 HARRIS STRATEX NETWORKS, INC. Fiscal Year 2010 First Quarter Summary CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) October 2, July 3, 2009 2009(1) ---------- ------- (In millions) Assets Cash and cash equivalents $133.0 $136.8 Short-term investments - 0.3 Receivables 114.3 142.9 Inventories and unbilled costs 128.2 126.4 Other current assets 32.2 29.7 Property, plant and equipment 57.1 57.4 Goodwill 3.2 3.2 Identifiable intangible assets 80.8 84.1 Non-current deferred taxes 8.0 8.0 Other assets 12.1 11.4 ---- ---- $568.9 $600.2 ====== ====== Liabilities and Shareholders' Equity Short-term debt $10.0 $10.0 Accounts payable 63.6 69.6 Accrued expenses and other current liabilities 96.1 114.8 Restructuring and other long-term liabilities 3.1 4.3 Redeemable preference shares 8.3 8.3 Non-current deferred taxes and reserve for uncertain tax positions 5.7 5.3 Shareholders' equity 382.1 387.9 ----- ----- $568.9 $600.2 ====== ====== (1) Derived from audited financial statements. Table 3 HARRIS STRATEX NETWORKS, INC. Fiscal Year 2010 First Quarter Summary CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Quarter Ended ------------- October 2, September 26, 2009 2008 ---- ---- (In millions) Operating Activities Net (loss) income $(7.8) $6.5 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Amortization of identifiable intangible assets 3.7 3.4 Depreciation and amortization of property, plant and equipment and capitalized software 6.0 5.6 Non-cash share-based compensation expense 1.0 1.0 Decrease in fair value of warrants - (0.3) Deferred income tax expense (benefit) 0.4 (0.7) Changes in operating assets and liabilities: Receivables 28.8 5.5 Unbilled costs and inventories (1.9) (13.6) Accounts payable and accrued expenses (13.4) 4.3 Advance payments and unearned income (7.2) 1.0 Restructuring liabilities and other (5.2) (8.8) ----- ----- Net cash provided by operating activities 4.4 3.9 Investing Activities Cash paid related to acquisition of Telsima in prior fiscal year (4.2) - Purchases of short-term investments and available for sale securities - (1.2) Sales and maturities of short-term investments and available for sale securities 0.3 1.8 Additions of property, plant and equipment (3.9) (4.4) Additions of capitalized software (0.9) (1.0) ----- ----- Net cash used in investing activities (8.7) (4.8) Financing Activities Increase in short-term debt - 10.0 Payments on long-term debt - (8.8) --- ----- Net cash provided by financing activities - 1.2 Effect of exchange rate changes on cash and cash equivalents 0.5 (0.9) --- ----- Net decrease in cash and cash equivalents (3.8) (0.6) Cash and cash equivalents, beginning of year 136.8 95.0 ----- ---- Cash and cash equivalents, end of quarter $133.0 $94.4 ====== ===== HARRIS STRATEX NETWORKS, INC. Fiscal Year 2010 First Quarter Summary RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE

To supplement our consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (GAAP), we provide additional measures of revenue, cost of product sales and services, gross margin, research and development expenses, selling and administrative expenses, operating income (loss), income (loss) before income taxes, income taxes, net income (loss), and net income (loss) per basic and diluted share adjusted to exclude certain costs, charges, expenses and losses, including such amounts related to our merger with Stratex Networks. Harris Stratex Networks, Inc. ("we" or "our") believes that these nonGAAP financial measures, when considered together with the GAAP financial measures provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on results in any particular period. We also believe these non-GAAP measures enhance the ability of investors to analyze trends in our business and to understand our performance. In addition, we may utilize nonGAAP financial measures as a guide in our forecasting, budgeting and long-term planning process and to measure operating performance for some management compensation purposes. Any analysis of nonGAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. A reconciliation of these nonGAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follows.

Table 4 HARRIS STRATEX NETWORKS, INC. Fiscal Year 2010 First Quarter Summary RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Condensed Consolidated Statements of Operations (Unaudited) Quarter Ended October 2, 2009 ---------------------------------------- As Non-GAAP % of Reported Adjustments Non-GAAP Sales ---------------------------------------- (In millions, except per share amounts) Revenue from product sales and services $120.0 $- $120.0 Cost of product sales and services(A) (80.2) 0.2 (80.0) Amortization of purchased technology(B) (2.1) 2.1 - ----- --- --- Gross margin 37.7 2.3 40.0 33.3% Research and development expenses (C) (10.7) 0.1 (10.6) 8.8% Selling and administrative expenses (D) (30.8) 1.1 (29.7) 24.8% Amortization of intangible assets (E) (1.5) 1.5 - Restructuring charges (F) (1.1) 1.1 - ----- --- --- Operating (loss) income (6.4) 6.1 (0.3) (0.3)% Interest income - - - Interest expense (0.5) - (0.5) ----- --- ----- Tax (Loss) income before income taxes (6.9) 6.1 (0.8) rate Provision for income taxes (G) (0.9) 0.9 - 0% ----- --- --- Net (loss) income $(7.8) $7.0 $(0.8) ===== ==== ===== Net (loss) income per common share of Class A and Class B common stock (Notes 1 and 2): Basic $(0.13) $(0.01) ====== ====== Diluted $(0.13) $(0.01) ====== ====== Basic weighted average shares outstanding 58.9 58.9 ==== ==== Diluted weighted average shares outstanding 58.9 58.9 ==== ==== Quarter Ended September 26, 2008 ---------------------------------------- As Non-GAAP % of Reported Adjustments Non-GAAP Sales ---------------------------------------- (In millions, except per share amounts) Revenue from product sales and services $195.8 $- $195.8 Cost of product sales and services (A) (134.9) 0.4 (134.5) Amortization of purchased technology (B) (1.8) 1.8 - ----- --- --- Gross margin 59.1 2.2 61.3 31.3% Research and development expenses (C) (10.2) 0.2 (10.0) 5.1% Selling and administrative expenses (D) (36.5) 1.1 (35.4) 18.1% Amortization of intangible assets (E) (1.4) 1.4 - Restructuring charges (F) (3.3) 3.3 - ----- --- --- Operating (loss) income 7.7 8.2 15.9 8.1% Interest income 0.4 - 0.4 Interest expense (0.7) - (0.7) ----- --- ----- Tax (Loss) income before income taxes 7.4 8.2 15.6 rate Provision for income taxes (G) (0.9) (2.8) (3.7) 24% ----- ----- ----- Net (loss) income $6.5 $5.4 $11.9 ==== ==== ===== Net (loss) income per common share of Class A and Class B common stock (Notes 1 and 2): Basic $0.11 $0.20 ===== ===== Diluted $0.10 $0.20 ===== ===== Basic weighted average shares outstanding 58.5 58.5 ==== ==== Diluted weighted average shares outstanding 58.5 58.5 ==== ==== (1) The net (loss) income per common share amounts are the same for Class A and Class B because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. (2) For the quarter ended September 26, 2008, the calculation of diluted earnings per share includes a potential deduction to net income of $0.2 million for the assumed after-tax effect of the change in fair value of warrants using the "treasury stock" method. Notes to Table 4:

Note A - Cost of sales and services - Includes adjustment to cost of product sales and services for the first quarter of fiscal 2010 to remove purchase accounting adjustments for the amortization of the step-up in the value of fixed assets ($0.1 million) and adjustment to remove FAS 123R expense ($0.1 million).

For the first quarter of fiscal 2009, includes adjustment to cost of product sales and services to remove purchase accounting adjustments for the amortization of the step-up in the value of fixed assets ($0.2 million) and adjustment to remove FAS 123R expense ($0.2 million).

Note B - Amortization of purchased technology - Adjustment for the first quarters of fiscal 2010 and 2009 to remove amortization of purchased intangibles.

Note C - Research and development expenses - Adjustment for the first quarter of fiscal 2010 to remove FAS 123R expense of $0.1 million.

For the first quarter of fiscal 2009, adjustment is to remove FAS 123R expense of $0.2 million.

Note D - Selling and administrative expenses - Includes adjustment for the first quarter of fiscal 2010 to remove purchase accounting adjustments related to the amortization of the step-up in the value of fixed assets ($0.1 million), to remove FAS 123R expense ($0.9 million) and to remove expenses related to rebranding in connection with the anticipated change in Company name required by the license agreement termination notice from Harris Corporation ($0.1 million).

For the first quarter of fiscal 2009, includes adjustment to remove purchase accounting adjustments related to the amortization of the step-up in the value of fixed assets ($0.4 million) and FAS 123R expense ($0.7 million).

Note E - Amortization of intangible assets - Adjustment for the first quarters of fiscal 2010 and 2009 to remove amortization of purchased intangibles.

Note F - Restructuring charges - Adjustment to remove charges for restructuring incurred during the first quarters of fiscal 2010 and 2009.

Note G - Provision for income taxes - Adjustment to reflect a zero pro forma percent tax rate for the first quarter of fiscal 2010 and a pro forma 24 percent tax rate for the first quarter of fiscal 2009.

Table 5 HARRIS STRATEX NETWORKS, INC. Fiscal Year 2010 First Quarter Summary SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA (Unaudited) Quarter Ended -------------------------------------------------------------- October 2, 2009 September 26, 2008 ----------------------------- -------------------------------- (In millions) As Non-GAAP As Non-GAAP Reported Adjustments Non-GAAP Adjusted(1) Adjustments Non-GAAP -------- ----------- -------- ----------- ----------- -------- North America (1) $48.0 $- $48.0 $63.0 $- $63.0 International (1): Africa 29.9 - 29.9 65.8 - 65.8 Europe, Middle East, and Russia 18.6 - 18.6 37.8 - 37.8 Latin America and AsiaPac 23.5 - 23.5 29.2 - 29.2 ---- --- ---- ---- --- ---- Total International 72.0 - 72.0 132.8 - 132.8 ---- --- ---- ----- --- ----- $120.0 $- $120.0 $195.8 $- $195.8 ====== == ====== ====== == ======

(1) We previously reported three operating segments in our public filings: North America Microwave, International Microwave and Network Operations. During the first quarter of fiscal 2010, we realigned the management structure of our Network Operations segment to geographically integrate with our North America Microwave and International Microwave segments to gain cost efficiencies. As a result, we eliminated the Network Operations segment as a separate reporting unit and consolidated this segment into our remaining two segments that are based on the geographical location where revenue is recognized. Additionally, we have dropped the word "Microwave" from the name of our North America and International segments. Segment information for the first quarter of fiscal 2009 has been adjusted to reflect this change.

Harris Stratex Networks, Inc.

CONTACT: Investors: Mary McGowan, Summit IR Group Inc., +1-408-404-5401,
Mary@summitirgroup.com, or Media: Cynthia Johnson, Harris Stratex Networks,
Inc., +1-919-767-3323, Cynthia.johnson@hstx.com

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

SandRidge Energy, Inc. Reports Financial and Operational Results for Third Quarter and First Nine Months of 2009

OKLAHOMA CITY, Nov. 5 /PRNewswire-FirstCall/ -- SandRidge Energy, Inc. today announced financial and operational results for the quarter and nine months ended September 30, 2009.

Financial Highlights Third Quarter -- Adjusted net income available to common stockholders (which excludes non-cash asset impairments, unrealized gains or losses on derivative contracts and gains or losses on the sale of assets) of $28.0 million, or $0.16 per share, in third quarter 2009 compared to adjusted net income available to common stockholders of $27.1 million, or $0.17 per share, in third quarter 2008 -- Adjusted EBITDA of $130.9 million compared to $178.2 million in third quarter 2008 -- Operating cash flow of $85.6 million compared to $137.2 million in third quarter 2008 -- Net loss applicable to common stockholders of $104.1 million, or $0.58 per share fully diluted, compared to net income available to common stockholders of $230.3 million, or $1.40 per share fully diluted, in third quarter 2008 -- No borrowings outstanding under credit facility at September 30, 2009 First Nine Months -- Adjusted net income available to common stockholders (which excludes non-cash asset impairments, unrealized gains or losses on derivative contracts and gains or losses on the sale of assets) of $112.8 million, or $0.66 per share, in the first nine months of 2009 compared to adjusted net income available to common stockholders of $82.1 million, or $0.54 per share, in the first nine months of 2008 -- Adjusted EBITDA of $433.8 million compared to $521.1 million in the first nine months of 2008 -- Operating cash flow of $304.8 million compared to $425.6 million in the first nine months of 2008 -- Net loss applicable to common stockholders of $1.35 billion, or $7.85 per share fully diluted, compared to net income available to common stockholders of $137.1 million, or $0.89 per share fully diluted, in the first nine months of 2008 Operational Update and Guidance -- Production growth of approximately 9% in the first nine months of 2009 compared to the first nine months of 2008 -- 2009 net production guidance revised to reflect approximately 4% growth from 2008 -- Initial 2010 net production guidance of 120 Bcfe, an increase of approximately 15% over expected 2009 production, with estimated capital expenditures of $750 million -- CO2 treating capacity increased by 60 MMcf per day from second quarter 2009 to 375 MMcf per day currently, with an additional 400 MMcf per day available mid-2010 upon start up of Century Plant Phase 1 -- Rig count increased to 9 rigs currently from low of 4 rigs during third quarter 2009

Adjusted net income available to common stockholders, adjusted EBITDA, and operating cash flow are non-GAAP financial measures. Each measure is defined and reconciled to the most directly comparable GAAP measure under "Non-GAAP Financial Measures" beginning on page 8.

Tom L. Ward, Chief Executive Officer of SandRidge, commented, "SandRidge's catalyst for growth is CO2 treating capacity to develop the Warwick Thrust reservoir. We grew production 58% in 2008 due to increased access to CO2 treating capacity. Since filling the CO2 plants to capacity of 315 MMcf per day in the second quarter of this year, we have been able to keep the plants full by running four to five rigs due to the prolific nature of the Warwick Thrust. As a result of work performed over the summer at our Grey Ranch Plant, we have increased our CO2 treating capacity to 375 MMcf per day currently. The Century Plant will give us the ability to grow as we did in 2008 on a much larger scale and at lower cost. With the recent capacity increase at our legacy plants, we began to increase our rig count in the fourth quarter of 2009 and will continue into 2010 as we prepare for the Century Plant. We currently have 9 rigs active and expect to be running approximately 26 rigs by mid-year 2010. The majority of these rigs will be used to develop the Warwick Thrust in the Pinon Field. We are also initiating our exploration program in the West Texas Overthrust outside of Pinon. We have identified 20 structures and plan to test six of them in 2010. Based upon our seismic interpretation, these structures are similar in size and characteristics to Pinon. Our 2010 capital expenditure plan of approximately $750 million is expected to result in 2010 production of approximately 120 Bcfe, roughly 15% growth from 2009 assuming no additional production from our exploration program.

"So far in 2009 our notable accomplishments include enhancing our balance sheet strength through a series of transactions including issuances of convertible preferred stock, common stock, and high yield notes and monetizing non-strategic assets. This, combined with a disciplined reduced capital expenditure program for 2009, has resulted in zero borrowings from our $985 million revolver at the end of the third quarter. Our hedges have provided a net realized price of $7.51 per Mcfe for the first nine months of 2009. We expect that our full-year 2009 production will grow 4% over fiscal 2008, even though we have deferred 5 Bcf through shut-ins and reduced drilling."

Information regarding the company's production, pricing, costs and earnings is presented below:

Three Months Ended Nine Months Ended September 30, September 30, ---------------- ---------------- 2009 2008 2009 2008 ------- ------- ------- ------ Production: Natural gas (MMcf) 20,897 22,209 67,583 63,097 Crude oil (MBbl)(1) 723 521 2,163 1,751 Natural gas equivalent (MMcfe) 25,235 25,335 80,561 73,603 Daily production (MMcfed) 274 275 295 269 Average price per unit: Realized natural gas price per Mcf - as reported $2.82 $9.04 $3.23 $9.09 Realized impact of derivatives per Mcf 3.85 (0.95) 3.95 (0.99) ------ ------- ------ ------ Net realized price per Mcf $6.67 $8.09 $7.18 $8.10 ====== ======= ====== ====== Realized crude oil price per barrel - as reported (1) $62.76 $112.24 $51.02 $104.73 Realized impact of derivatives per barrel (1) 3.71 (12.05) 4.38 (9.07) ------ ------- ------ ------ Net realized price per barrel (1) $66.47 $100.19 $55.40 $95.66 ====== ======= ====== ====== Realized price per Mcfe - as reported $4.14 $10.23 $4.08 $10.28 ====== ======= ====== ====== Net realized price per Mcfe - including impact of derivatives per Mcfe $7.43 $9.15 $7.51 $9.22 ====== ======= ====== ====== Average cost per Mcfe: Lease operating $1.64 $1.62 $1.59 $1.57 Production taxes 0.04 0.27 0.04 0.40 General and administrative: General and administrative, excluding stock-based compensation 0.75 0.88 0.75 0.84 Stock-based compensation 0.24 0.28 0.21 0.19 Depletion 1.31 2.84 1.58 2.84 Lease operating cost per Mcfe: Excluding offshore and tertiary recovery $1.46 $1.42 $1.43 $1.37 Offshore operations 3.88 4.35 3.04 3.74 Tertiary recovery operations 4.05 11.67 8.57 11.28 Earnings per share: (Loss) income per share (applicable) available to common stockholders Basic $(0.58) $1.41 $(7.85) $0.90 Diluted (0.58) 1.40 (7.85) 0.89 Adjusted net income per share available to common stockholders 0.16 0.17 0.66 0.54 Weighted average number of common shares outstanding (thousands) Basic 178,069 163,020 171,902 153,125 Diluted 178,069 164,554 171,902 154,489 (1) Includes NGLs Discussion of Financial Results

The company reported a net loss applicable to stockholders during the third quarter and first nine months of 2009 as a result of depressed natural gas and crude oil prices. Natural gas and crude oil revenue for the third quarter of 2009 decreased 59.7% compared to the same period in 2008. Natural gas and crude oil revenues for the first nine months of 2009 were 56.6% lower than the comparable period in 2008. Also contributing significantly to the loss applicable to stockholders during the first nine months of 2009 was a first quarter $1.3 billion non-cash full cost ceiling impairment.

Production, Pricing and Operating Costs

Natural gas and crude oil production for the third quarter and first nine months of 2009 was 25.2 Bcfe and 80.6 Bcfe, respectively, compared to 25.3 Bcfe and 73.6 Bcfe, respectively, for the comparable periods of 2008. Lower average commodity prices received during the 2009 periods resulted in natural gas and crude oil revenues of $104.3 million for the third quarter of 2009 compared to $259.1 million for the same period in 2008. Revenues for the first nine months of 2009 declined to $328.6 million from $756.8 million for the first nine months of 2008.

The average price received, excluding the impact of derivative contract settlements, for natural gas decreased 68.8% to $2.82 per Mcf for the third quarter of 2009 compared to $9.04 per Mcf for the third quarter of 2008 and 64.5% to $3.23 per Mcf for the first nine months of 2009 compared to $9.09 for the same period in 2008. Additionally, average prices received, excluding the impact of derivative contract settlements, for crude oil production in the third quarter of 2009 decreased 44.1% to $62.76 per barrel compared to $112.24 in the third quarter of 2008, and decreased 51.3% to $51.02 per barrel for the first nine months of 2009 compared to $104.73 for the first nine months of 2008.

Total production expense increased slightly to $41.4 million for the third quarter of 2009 from $41.1 million for the third quarter of 2008 and to $128.4 million for the first nine months of 2009 from $115.5 million for the first nine months of 2008. The increase in expenses for the nine month period was due to an increase in the number of wells operated and volumes produced during the 2009 period compared to the 2008 period.

Gains (Losses) on Commodity Derivative Contracts

The company enters into natural gas and crude oil swaps and basis swaps for a portion of its production in order to stabilize future cash inflows for planning purposes. The company incurred a net $47.9 million loss ($130.9 million unrealized loss and $83.0 million realized gain) on commodity derivative contracts for the third quarter of 2009 compared to a $292.5 million gain ($319.8 million unrealized gain and $27.3 million realized loss) for the same period in 2008. For the first nine months of 2009, the company recorded a net gain of $139.7 million ($136.5 million unrealized loss and $276.2 million realized gain) on commodity derivative contracts. This compares to a $4.1 million net loss ($73.9 million unrealized gain and $78.0 million realized loss) for same period in 2008.

Drilling Activities

The company continued to operate a reduced number of rigs on its properties during the third quarter of 2009. At September 30, 2009, the company had 8 rigs operating compared to 17 at December 31, 2008 and a high of 47 rigs operating in the second quarter of 2008. The company averaged 6 rigs operating during the third quarter of 2009 and drilled 29 wells. The company drilled a total of 94 wells during the first nine months of 2009. A total of 25 gross (23 net) operated wells were completed and brought on production throughout the third quarter of 2009 bringing the total number of operated wells completed and brought on production during 2009 to 116 gross (107 net). Currently, SandRidge has 9 rigs operating, of which 5 are drilling in the Pinon Field area of the West Texas Overthrust ("WTO").

CO2 Treating Capacity and Century Plant Update

The company has increased its CO2 treating capacity in the WTO by 60 MMcf per day to 375 MMcf per day currently from 315 MMcf per day at the end of the second quarter. Approximately 50 MMcf per day of the capacity increase resulted from equipment upgrades at the company-owned Grey Ranch Plant. The additional 10 MMcf per day of treating capacity resulted from upgrades at the Mitchell Plant.

Construction of the Century Plant, located in Pecos County, Texas, remains on schedule with anticipated start up of Phase 1 in July 2010. Century Plant Phase 1 will add approximately 400 MMcf per day of CO2 treating capacity, giving the company access to total CO2 treating capacity in the WTO of approximately 775 MMcf per day. Century Plant Phase 2 is expected to come on line in 2011, increasing access to total CO2 treating capacity to over 1 Bcf per day.

Exploration Update

Exploration efforts during the third quarter continued to focus on the integration of approximately 1,300 square miles of 3-D seismic data and evolving sub-surface geologic models. Six of 20 leads have been identified as drill-ready prospects for 2010 by the company's exploration teams. The first two wells of the company's exploratory program will begin drilling during the first quarter of 2010 and will test structural prospects on the east and west sides of SandRidge's extensive acreage position (approximately 650,000 acres) in the WTO. The company plans to test the rest of the identified structures over the next two to three years.

Capital Expenditures

The table below summarizes the company's capital expenditures for the three and nine-month periods ended September 30, 2009 and 2008:

Three Months Ended Nine Months Ended September 30, September 30, ----------------- ------------------- 2009 2008 2009 2008 ------- --------- -------- ---------- (in thousands) Drilling and production WTO $33,213 $261,056 $196,456 $750,883 Non-WTO (excluding tertiary) 37,976 118,139 145,394 273,330 Tertiary 1,046 9,395 12,205 18,764 ------- -------- -------- ---------- 72,235 388,590 354,055 1,042,977 Leasehold and seismic WTO 1,557 116,350 9,689 232,940 Non-WTO (excluding tertiary) 3,928 62,228 9,934 104,472 Tertiary - 3 - 87 ------- -------- -------- ---------- 5,485 178,581 19,623 337,499 Pipe inventory 9,554 32,920 96,265 32,920 Total exploration and development 87,274 600,091 469,943 1,413,396 ------- -------- -------- ---------- Drilling and oil field services 569 15,049 2,770 50,840 Midstream 2,500 40,696 43,788 110,125 Other - general 7,374 19,218 25,700 34,994 ------- -------- -------- ---------- Total capital expenditures $97,717 $675,054 $542,201 $1,609,355 ======= ======== ======== ==========

The company's capital expenditures in the third quarter of 2009 totaled $97.7 million and were 85.5% lower than capital expenditures incurred for the same period in 2008 due to the company's decreased drilling activities. Capital expenditures for the first nine months of 2009 were 66.3% lower than the comparable period in 2008.

Derivative Contracts

The table below sets forth the company's natural gas price and basis swaps and crude oil swaps through 2013 as of November 3, 2009. Current natural gas and crude oil derivative contracts excluding basis swaps account for 77% of anticipated production for 2009 at $8.59 per Mcfe, and 67% of anticipated production for 2010 at $7.70 per Mcfe. Since August 4, 2009, the company has entered only into additional natural gas basis swaps for 2013, which are included below. The company currently does not have natural gas or crude oil swaps for 2011, 2012 or 2013.

Year Ending ------------------------------------------------------ 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 ---------- ---------- ---------- ---------- ---------- Natural Gas Swaps: Volume (Bcf) 79.35 80.29 0.00 0.00 0.00 Swap $8.42 $7.70 NM NM NM Natural Gas Basis Swaps: Volume (Bcf) 69.35 82.13 104.03 113.46 3.65 Swap $0.74 $0.74 $0.47 $0.55 $0.48 Crude Oil Swaps: Volume (MMBbls) 0.18 0.00 0.00 0.00 0.00 Swap $126.55 NM NM NM NM Balance Sheet

The company's capital structure at September 30, 2009 and December 31, 2008 is presented below:

September 30, December 31, 2009 2008 ------------- ------------ (in thousands) Cash and cash equivalents $14,642 $636 ========== ========== Current maturities of long-term debt 13,925 16,532 Long-term debt (net of current maturities): Senior credit facility - 573,457 Notes payable - Drilling rig fleet and oil field services equipment 8,403 17,375 Mortgage 17,256 17,952 Senior Notes: Senior Floating Rate Notes due 2014 350,000 350,000 8.625% Senior Notes due 2015 650,000 650,000 9.875% Senior Notes due 2016, net 350,627 - 8.0% Senior Notes due 2018 750,000 750,000 ---------- ---------- Total debt 2,140,211 2,375,316 Stockholders' equity: Preferred stock 3 - Common stock 178 163 Additional paid-in capital 2,537,690 2,170,986 Treasury stock, at cost (20,427) (19,332) Accumulated deficit (2,708,459) (1,358,296) ---------- ---------- Total SandRidge Energy, Inc. stockholders' (deficit) equity (191,015) 793,521 ---------- ---------- Noncontrolling interest 30 30 Total capitalization $1,949,226 $3,168,867 ========== ==========

The company's total debt (short-term and long-term) decreased $235.1 million during the first nine months of 2009 through net repayments of amounts outstanding under its senior credit facility with proceeds from the issuance of preferred and common equity and asset sale transactions. Additionally, during the first nine months of 2009, the company made principal payments on its rig loans and real estate loan related to the purchase of the company's headquarters building totaling $11.6 million and $0.7 million, respectively. At September 30, 2009, the company had classified $13.9 million of its long-term debt as current. This total included $13.0 million related to its rig loan and $0.9 million related to the real estate loan. Total debt as of September 30, 2009 was $2.140 billion compared to $2.375 billion at year-end 2008. The company was in compliance with all of the financial and other covenants contained in its debt agreements at September 30, 2009. During October 2009, the company's $985.4 million borrowing base and $1.75 billion commitment were reaffirmed by the group of lenders under its senior credit facility.

During 2009, the company has raised a total of approximately $947.7 million through the private placement of 8.5% convertible perpetual preferred stock and 9.875% Senior Notes due 2016, the registered underwritten offering of common stock and the sale of its Pinon Field gathering and compression assets and deep drilling rights in East Texas. The company used proceeds from these transactions and cash flow from operations to reduce amounts outstanding under its senior credit facility to $0 at September 30, 2009.

Operational Guidance Year Ending Year Ending December 31, 2009 December 31, 2010 --------------------------------- ----------------- Previous Updated Initial Projection as of Projection as of Projection as of August 6, 2009 November 5, 2009 November 5, 2009 Production Natural Gas (Bcf) 92 - 102 87 96 Crude Oil (MMBbls) 3 - 3 3 4 ------------- ------------- ------------- Total (Bcfe) 110 - 120 105 120 Differentials Natural Gas $0.79 $0.79 $0.90 - $0.95 Crude Oil 7.00 7.00 7.00 Costs per Mcfe Lifting $1.57 - $1.73 $1.57 - $1.73 $1.58 - $1.74 Production Taxes 0.12 - 0.14 0.12 - 0.14 0.20 - 0.25 DD&A - oil & gas 1.50 - 1.57 1.50 - 1.57 1.29 - 1.42 DD&A - other 0.42 - 0.46 0.42 - 0.46 0.40 - 0.44 ------------- ------------- ------------- Total DD&A $1.92 - $2.03 $1.92 - $2.03 $1.69 - $1.86 G&A - cash 0.67 - 0.78 0.67 - 0.78 0.67 - 0.78 G&A - stock 0.20 - 0.25 0.20 - 0.25 0.26 - 0.29 ------------- ------------- ------------- Total G&A $0.87 - $1.03 $0.87 - $1.03 $0.93 - $1.07 Interest Expense $1.56 - $1.72 $1.60 - $1.75 $1.55 - $1.71 Corporate Tax Rate 0% 0% 0% Deferral Rate 0% 0% 0% Shares Outstanding at End of Period (in millions) Common Stock 183.6 194.3 198.0 Preferred Stock (converted) 33.1 33.1 33.1 ------------- ------------- ------------- Fully Diluted 216.7 227.4 231.1 Capital Expenditures ($ in millions) Exploration and Production $335 - $460 $335 - $460 $615 Land and Seismic 15 - 30 15 - 30 30 ------------- ------------- ------------- Total Exploration and Production $350 - $490 $350 - $490 $645 Oil Field Services 2 - 5 2 - 5 5 Midstream and Other 148 - 205 148 - 205 100 ------------- ------------- ------------- Total Capital Expenditures $500 - $700 $500 - $700 $750

2009 Guidance Update: The company is updating the 2009 guidance provided on August 6, 2009 related to production, interest expense per unit and common stock outstanding. Interest expense per unit has increased as a result of reduced production estimates. Revised common stock outstanding reflects the anticipated issuance of common stock in conjunction with the company's acquisition of Crusader Energy Group Inc. and its subsidiaries in the fourth quarter of 2009. The remainder of the previously provided guidance is unchanged.

2010 Initial Operational Guidance: In 2010, the company expects to incur approximately $750 million in capital expenditures and produce approximately 120 Bcfe. Approximately 82% of the capital expenditure budget is allocated to exploration and production. The company intends to increase the number of rigs operating on its properties to 26 rigs by mid-year 2010. The majority of these rigs will be drilling high-CO2 gas wells in the Warwick Thrust. Recent plant upgrades have resulted in a 60 MMcf per day increase in CO2 treating capacity. An additional 400 MMcf per day of CO2 treating capacity will become available in mid-2010 with the start up of Century Plant Phase 1.

Non-GAAP Financial Measures

Operating cash flow, adjusted EBITDA, and adjusted net income available to common stockholders are non-GAAP financial measures.

The company defines operating cash flow as net cash provided by operating activities before changes in operating assets and liabilities. It defines EBITDA as net (loss) income before income tax expense (benefit), interest expense, and depreciation, depletion and amortization. Adjusted EBITDA, as presented herein, is EBITDA excluding interest income, gains or losses on the sale of assets and other various non-cash items (including asset impairments, income from equity investments, noncontrolling interest, stock-based compensation, unrealized (gain) loss on derivative contracts, and provision for doubtful accounts). This definition of adjusted EBITDA generally conforms to the EBITDA definition in the company's credit agreement.

Operating cash flow and adjusted EBITDA are supplemental financial measures used by the company's management and by securities analysts, investors, lenders, rating agencies and others who follow the industry as an indicator of the company's ability to internally fund exploration and development activities and to service or incur additional debt. The company also uses these measures because operating cash flow and adjusted EBITDA relate to the timing of cash receipts and disbursements that the company may not control and may not relate to the period in which the operating activities occurred. Further, operating cash flow and adjusted EBITDA allow the company to compare its operating performance and return on capital with those of other companies without regard to financing methods and capital structure. These measures should not be considered in isolation or as a substitute for net cash provided by operating activities prepared in accordance with generally accepted accounting principles ("GAAP"). Adjusted EBITDA should not be considered as a substitute for net income, operating income, cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA excludes some, but not all, items that affect net income and operating income and these measures may vary among other companies. Therefore, the company's adjusted EBITDA may not be comparable to similarly titled measures used by other companies.

Management also uses the supplemental financial measure of adjusted net income available (loss applicable) to common stockholders, which excludes asset impairments, unrealized (loss) gain on derivative contracts and gains or losses on the sale of assets from net income available (loss applicable) to common stockholders. Management uses this financial measure as an indicator of the company's operational trends and performance relative to other oil and natural gas companies and believes it is more comparable to earnings estimates provided by securities analysts. Adjusted net income available (loss applicable) to common stockholders is not a measure of financial performance under GAAP and should not be considered a substitute for net income available (loss applicable) to common stockholders.

The tables below reconcile the most directly comparable GAAP financial measures to operating cash flow, EBITDA, adjusted EBITDA, and adjusted net income available (loss applicable) to common stockholders.

Reconciliation of Net Cash Provided by Operating Activities to Operating Cash Flow Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------- 2009 2008 2009 2008 -------- -------- -------- ---------- (in thousands) Net cash provided by operating activities $131,238 $237,534 $273,220 $534,368 (Deduct) add: Changes in operating assets and liabilities (45,686) (100,348) 31,597 (108,735) -------- -------- -------- -------- Operating cash flow $85,552 $137,186 $304,817 $425,633 ======== ======== ======== ======== Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA Three Months Ended Nine Months Ended September 30, September 30, ------------------- -------------------- 2009 2008 2009 2008 --------- -------- ---------- -------- (in thousands) Net (loss) income $(101,316) $230,346 $(1,347,347) $153,378 Adjusted for: Income tax (benefit) expense (2,580) 130,693 (4,114) 89,308 Interest expense(1) 48,682 38,326 135,507 96,170 Depreciation, depletion and amortization - other 12,092 17,597 38,851 51,342 Depreciation, depletion and amortization - natural gas and crude oil 33,060 71,964 127,503 209,296 --------- -------- ---------- -------- EBITDA (10,062) 488,926 (1,049,600) 599,494 Asset impairment - - 1,304,418 - Provision for doubtful accounts - 1,623 62 1,623 (Income) loss from equity investments (593) 60 (1,027) (1,355) Noncontrolling interest 4 2 11 853 Interest income (89) (923) (287) (3,068) Stock-based compensation 6,158 7,023 16,526 14,283 Unrealized losses (gains) on derivative contracts 135,490 (317,092) 137,313 (81,603) Loss (gain) on sale of assets 9 (1,420) 26,359 (9,131) --------- -------- ---------- -------- Adjusted EBITDA $130,917 $178,199 $433,775 $521,096 ========= ======== ========== ======== (1) Excludes unrealized loss (gain) on interest rate swap of $4.5 million and $2.7 million for the three-month periods ended September 30, 2009 and 2008, respectively, and $0.9 million and ($7.7) million for the nine-month periods ended September 30, 2009 and 2008, respectively. Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------ 2009 2008 2009 2008 -------- -------- -------- -------- (in thousands) Net cash provided by operating activities $131,238 $237,534 $273,220 $534,368 Changes in operating assets and liabilities (45,686) (100,348) 31,597 (108,735) Interest expense(1) 48,682 38,326 135,507 96,170 Other non-cash items (3,317) 2,687 (6,549) (707) -------- -------- -------- -------- Adjusted EBITDA $130,917 $178,199 $433,775 $521,096 ======== ======== ======== ======== (1) Excludes unrealized loss (gain) on interest rate swap of $4.5 million and $2.7 million for the three-month periods ended September 30, 2009 and 2008, respectively, and $0.9 million and ($7.7) million for the nine-month periods ended September 30, 2009 and 2008, respectively. Reconciliation of Net (Loss) Income (Applicable) Available to Common Stockholders to Adjusted Net Income Available to Common Stockholders Three Months Ended Nine Months Ended September 30, September 30, ------------------- --------------------- 2009 2008 2009 2008 --------- -------- ----------- -------- (in thousands) Net (loss) income (applicable) available to common stockholders $(104,132) $230,346 $(1,350,163) $137,146 Asset impairment - - 1,304,418 - Unrealized losses (gains) on derivative contracts 135,490 (317,092) 137,313 (81,603) Loss (gain) on sale of assets 9 (1,420) 26,359 (9,131) Effect of income taxes (3,365) 115,299 (5,117) 35,714 --------- -------- ----------- -------- Adjusted net income available to common stockholders 28,002 27,133 112,810 82,126 Preferred stock dividends 2,816 - 2,816 16,232 --------- -------- ----------- -------- Total adjusted net income $30,818 $27,133 $115,626 $98,358 ========= ======== =========== ======== Weighted average number of common shares outstanding (thousands): Basic 178,069 163,020 171,902 153,125 Fully diluted(1) 214,324 164,554 207,687 163,275 Per share - basic $0.16 $0.17 $0.66 $0.54 ========= ======== =========== ======== Per share - fully diluted $0.14 $0.16 $0.56 $0.60 ========= ======== =========== ======== (1) Weighted average fully diluted common shares outstanding for certain periods presented includes shares that are considered antidilutive for calculating earnings per share in accordance with GAAP. Conference Call Information

The company will host a conference call to discuss these results on Friday, November 6, 2009 at 8:00 am CST. The telephone number to access the conference call from within the U.S. is 866-318-8616 and from outside the U.S. is 617-399-5135. The passcode for the call is 43012211. An audio replay of the call will be available at 11:00 am CST on November 6, 2009 until 11:59 pm CST on December 6, 2009. The number to access the conference call replay from within the U.S. is 888-286-8010 and from outside the U.S. is 617-801-6888. The passcode for the replay is 96782011.

A live audio webcast of the conference call also will be available via SandRidge's website, http://www.sandridgeenergy.com/, under Investor Relations/Events. The webcast will be archived for replay on the company's website for 30 days.

2009 Annual Earnings Release and Conference Call

February 25, 2010 (Thursday) - Earnings press release and filing of 10-K after market close

February 26, 2010 (Friday) - Earnings conference call at 9:00 am EST 3rd Annual Investor/Analyst Meeting

March 2, 2010 (Tuesday) - New York, NY at the Grand Hyatt New York, 109 East 42nd Street at 8:00 am EST

Conference Participation SandRidge Energy, Inc. will participate in the following upcoming events: -- November 17, 2009 - Bank of America-Merrill Lynch, 2009 Energy Conference -- November 18, 2009 - UBS Investment Bank, 2009 Energy Mini-Conferences -- December 2-3, 2009 - Bank of America-Merrill Lynch, 2009 Credit Conference -- January 13, 2010 - Goldman Sachs, 2010 Global Energy Conference -- February 1-5, 2010 - Credit Suisse, 2010 Energy Summit

Between 6:00 a.m. Central Time and 8:00 a.m. Central Time on the day of each presentation, the corresponding slides and webcast information will be accessible on the Investor Relations portion of the company's website at http://www.sandridgeenergy.com/. Slides and, as applicable, webcasts will be archived and available for at least 30 days after each presentation. The specific date of each presentation will be posted on the same Investor Relations page as soon as it is known but no later than the day of the presentation. Please check the website for updates regularly as this schedule is subject to change. Also, please note that SandRidge Energy, Inc. intends for its website to be used as a reliable source of information for all future events in which it may participate.

SandRidge Energy, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, ------------------- --------------------- 2009 2008 2009 2008 --------- -------- ----------- -------- (Unaudited) Revenues: Natural gas and crude oil $104,348 $259,141 $328,628 $756,762 Drilling and services 5,878 12,054 17,449 36,345 Midstream and marketing 16,453 58,343 62,051 174,240 Other 8,176 4,485 19,839 13,812 --------- -------- ----------- -------- Total revenues 134,855 334,023 427,967 981,159 Expenses: Production 41,350 41,070 128,379 115,512 Production taxes 1,069 6,717 3,153 29,456 Drilling and services 9,676 8,191 21,697 20,426 Midstream and marketing 14,889 51,908 56,702 157,059 Depreciation, depletion and amortization - natural gas and crude oil 33,060 71,964 127,503 209,296 Depreciation, depletion and amortization - other 12,092 17,597 38,851 51,342 Impairment - - 1,304,418 - General and administrative 25,006 29,235 77,123 76,432 Loss (gain) on derivative contracts 47,933 (292,526) (139,722) 4,086 Loss (gain) on sale of assets 9 (1,420) 26,359 (9,131) --------- -------- ----------- -------- Total expenses 185,084 (67,264) 1,644,463 654,478 --------- -------- ----------- -------- (Loss) income from operations (50,229) 401,287 (1,216,496) 326,681 --------- -------- ----------- -------- Other income (expense): Interest income 89 923 287 3,068 Interest expense (53,201) (41,026) (136,368) (88,421) Income (loss) from equity investments 593 (60) 1,027 1,355 Other (expense) income, net (1,144) (83) 100 856 --------- -------- ----------- -------- Total other (expense) income (53,663) (40,246) (134,954) (83,142) --------- -------- ----------- -------- (Loss) income before income tax (benefit) expense (103,892) 361,041 (1,351,450) 243,539 Income tax (benefit) expense (2,580) 130,693 (4,114) 89,308 --------- -------- ----------- -------- Net (loss) income (101,312) 230,348 (1,347,336) 154,231 Less: net income attributable to noncontrolling interest 4 2 11 853 --------- -------- ----------- -------- Net (loss) income (applicable) attributable to SandRidge Energy, Inc. (101,316) 230,346 (1,347,347) 153,378 Preferred stock dividends and accretion 2,816 - 2,816 16,232 --------- -------- ----------- -------- (Loss) income (applicable) available to SandRidge Energy, Inc. common stockholders $(104,132) $230,346 $(1,350,163) $137,146 ========= ======== =========== ======== (Loss) income per share (applicable) available to SandRidge Energy, Inc. common stockholders: Basic $(0.58) $1.41 $(7.85) $0.90 ========= ======== =========== ======== Diluted $(0.58) $1.40 $(7.85) $0.89 ========= ======== =========== ======== Weighted average number of SandRidge Energy, Inc. common shares outstanding: Basic 178,069 163,020 171,902 153,125 ========= ======== =========== ======== Diluted 178,069 164,554 171,902 154,489 ========= ======== =========== ======== SandRidge Energy, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands, except per share data) September 30, December 31, 2009 2008 ------------- ------------ (Unaudited) ASSETS Current assets: Cash and cash equivalents $14,642 $636 Accounts receivable, net: Trade 80,328 102,746 Related parties 257 6,327 Derivative contracts 129,453 201,111 Inventories 3,405 3,686 Other current assets 32,358 41,407 ---------- ---------- Total current assets 260,443 355,913 Natural gas and crude oil properties, using full cost method of accounting Proved 5,064,490 4,676,072 Unproved 229,687 215,698 Less: accumulated depreciation, depletion and impairment (3,792,437) (2,369,840) ---------- ---------- 1,501,740 2,521,930 ---------- ---------- Other property, plant and equipment, net 462,487 653,629 Derivative contracts - 45,537 Investments 9,158 6,088 Restricted deposits 32,872 32,843 Other assets 44,268 39,118 ---------- ---------- Total assets $2,310,968 $3,655,058 ========== ========== LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $13,925 $16,532 Accounts payable and accrued expenses: Trade 230,506 366,337 Related parties 155 230 Derivative contracts 7,223 5,106 Asset retirement obligation 2,077 275 Billings in excess of costs incurred 5,141 14,144 ---------- ---------- Total current liabilities 259,027 402,624 Long-term debt 2,126,286 2,358,784 Other long-term obligations 6,967 11,963 Derivative contracts 21,640 3,639 Asset retirement obligation 88,033 84,497 ---------- ---------- Total liabilities 2,501,953 2,861,507 ---------- ---------- Commitments and contingencies Equity: SandRidge Energy, Inc. stockholders' equity: Preferred stock, $0.001 par value, 50,000 shares authorized: 8.5% Convertible perpetual preferred stock; 2,650 issued and outstanding at September 30, 2009 and no shares issued and outstanding in 2008; aggregate liquidation preference of $265,000 at September 30, 2009 3 - Common stock, $0.001 par value; 400,000 shares authorized; 184,986 issued and 183,524 outstanding at September 30, 2009 and 167,372 issued and 166,046 outstanding at December 31, 2008 178 163 Additional paid-in capital 2,537,690 2,170,986 Treasury stock, at cost (20,427) (19,332) Accumulated deficit (2,708,459) (1,358,296) ---------- ---------- Total SandRidge Energy, Inc. stockholders' (deficit) equity (191,015) 793,521 Noncontrolling interest 30 30 ---------- ---------- Total (deficit) equity (190,985) 793,551 ---------- ---------- Total liabilities and equity $2,310,968 $3,655,058 ========== ========== SandRidge Energy, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) Nine Months Ended September 30, ---------------------- 2009 2008 ---------- ---------- (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $(1,347,336) $154,231 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Provision for doubtful accounts 62 1,623 Depreciation, depletion and amortization 166,354 260,638 Impairment 1,304,418 - Debt costs amortization 6,037 4,026 Deferred income taxes 4 83,225 Unrealized loss (gain) on derivative contracts 137,313 (81,603) Loss (gain) on sale of assets 26,359 (9,131) Investment income - restricted deposits (29) (304) Income from equity investments (1,027) (1,355) Stock-based compensation 16,526 14,283 Stock-based compensation excess tax benefit (3,864) - Changes in operating assets and liabilities (31,597) 108,735 ---------- ---------- Net cash provided by operating activities 273,220 534,368 ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures for property, plant and equipment(1) (628,153) (1,609,355) Proceeds from sale of assets 263,630 158,534 Loans to unconsolidated investees - (5,500) Fundings of restricted deposits - (781) ---------- ---------- Net cash used in investing activities (364,523) (1,457,102) ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from borrowings 1,638,365 1,768,722 Repayments of borrowings (1,874,046) (864,100) Dividends paid - preferred - (17,552) Noncontrolling interest distributions (11) (5,497) Proceeds from issuance of 8.5% convertible perpetual preferred stock 243,289 - Proceeds from issuance of common stock 107,603 - Purchase of treasury stock (1,095) (3,536) Debt issuance costs (8,796) (17,540) ---------- ---------- Net cash provided by financing activities 105,309 860,497 ---------- ---------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 14,006 (62,237) CASH AND CASH EQUIVALENTS, beginning of period 636 63,135 ---------- ---------- CASH AND CASH EQUIVALENTS, end of period $14,642 $898 ========== ========== Supplemental Disclosure of Noncash Investing and Financing Activities: Change in accrued capital expenditures(1) $(85,952) $- 8.5% Convertible perpetual preferred stock dividends payable 2,816 - Accretion on redeemable convertible preferred stock - 7,636 (1) Capital expenditures on an accrual basis were $542,201 for the nine months ended September 30, 2009. For further information, please contact: Kevin R. White Senior Vice President SandRidge Energy, Inc. 123 Robert S. Kerr Avenue Oklahoma City, OK 73102-6406 (405) 429-5515

Cautionary Note to Investors - This press release includes "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, including, but not limited to, the information appearing under the heading "Operational Guidance." These statements express a belief, expectation or intention and are generally accompanied by words that convey projected future events or outcomes. The forward-looking statements include projections and estimates of future natural gas and crude oil production, pricing differentials, operating costs and capital spending, and descriptions of our development plans. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, including the volatility of natural gas and oil prices, our success in discovering, estimating, developing and replacing natural gas and oil reserves, the availability and terms of capital, the ability of counterparties to transactions with us to meet their obligations, our timely execution of hedge transactions, credit conditions of global capital markets, the duration and gravity of the recession, construction risks related to the Century Plant, including the reliance we place on third parties, the amount and timing of future development costs, the availability and demand for alternative energy sources, regulatory changes, including those related to carbon dioxide, and other factors, many of which are beyond our control. We refer you to the discussion of risk factors in Part I, Item 1A - "Risk Factors" of the Annual Report on Form 10-K we filed with the U.S. Securities and Exchange Commission (the "SEC") on February 26, 2009 and in Part II, Item 1A - "Risk Factors" of the Quarterly Report on Form 10-Q we filed with the SEC on November 5, 2009. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on our company or our business or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise any forward-looking statements.

SandRidge Energy, Inc. is a natural gas and crude oil company headquartered in Oklahoma City, Oklahoma with its principal focus on exploration and production. SandRidge and its subsidiaries also own and operate gas gathering and processing facilities and CO2 treating and transportation facilities and conduct marketing and tertiary oil recovery operations. In addition, Lariat Services, Inc., a wholly-owned subsidiary of SandRidge, owns and operates a drilling rig and related oil field services business. SandRidge focuses its exploration and production activities in West Texas, the Cotton Valley Trend in East Texas, the Gulf Coast, the Mid-Continent, and the Gulf of Mexico. SandRidge's internet address is http://www.sandridgeenergy.com/.

SandRidge Energy, Inc.

CONTACT: Kevin R. White, Senior Vice President of SandRidge Energy,
Inc., +1-405-429-5515

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

Boston Beer Reports Third Quarter 2009 Results

BOSTON, Nov. 5 /PRNewswire-FirstCall/ -- The Boston Beer Company, Inc. reported a third quarter core product depletions increase of 6% as compared to the third quarter of 2008. Net revenue for the third quarter of 2009 was $108.7 million, an increase of $7.6 million, or 8%, over the same period last year. Net income for the third quarter was $10.4 million, or $0.72 per diluted share, an increase of $10.7 million, or $0.74 per diluted share, from the third quarter of 2008, primarily as a result of increased core shipments and improved gross margins. The third quarter 2008 results included the estimated after-tax negative impact on net income of $1.2 million, or $0.08 per diluted share, resulting from accruals for full year shortfall fees at other brewers as a result of volumes transferred to the Pennsylvania Brewery, and $1.2 million, or $0.08 per diluted share, resulting from additional costs of a product recall initiated in April 2008. Excluding these provisions, the Company's third quarter net income increased $8.3 million, or $0.58 per diluted share.

Jim Koch, Chairman and Founder of the Company, commented, "Our 6% depletions growth in the third quarter exceeded our expectations. We believe that these results continued the improved trends that we began to see towards the end of the second quarter. While trends have improved, we continue to face increased competition from expanded distribution of domestic specialty brands and regional craft brands. We are happy with our sales execution, our brand strength and our position within the craft category and remain positive about the future of craft beer and our potential for future growth."

Key highlights of the third quarter were: -- Depletions growth of 6% for the quarter and 2% year to date, adjusted for comparable selling days. -- The Packaging Services Agreement with Diageo North America, Inc. ended on May 2, 2009. The Pennsylvania Brewery is now dedicated solely to brewing the Company's beers and is showing efficiency, capacity and cost improvements. -- Gross margins improved to 54% for the quarter and 51% year to date, but remain significantly lower than the gross margins realized prior to 2006, due to the significant brewery operating, packaging and ingredient cost increases experienced since then, which have not been fully offset with pricing. -- Estimate of earnings per diluted share for 2009 has been increased from previous guidance of $1.40 to $1.70 to between $1.75 and $2.05.

Martin Roper, the Company's President and CEO, stated, "During the third quarter we experienced an improvement in our underlying brand volumes. The brands may have responded positively to the redesign of our packaging and the increased investment in media advertising and our sales force, but it is also possible that some of the drinkers of the competitive variety introduced in the last 24 months may be returning to our beers. Looking forward, we have no certainty that these trends will continue but we intend to continue our increased investment and sales activities levels. We feel we are in a good position to compete effectively through the strength of our brand and our sales force and are currently projecting that we should finish the year with depletions growth of approximately 2% to 3%. "

Mr. Roper continued, "Our Pennsylvania Brewery continues to brew great Samuel Adams beer and has now completed its first full quarter dedicated solely to brewing our products. Our gross margins improved again, as the Diageo contract volumes were very low margin. We have also seen some efficiency gains as the brewery focuses on brewing and packaging beer. The third quarter costs also benefited from increased utilization of capacity relative to prior quarters. We believe we are on the right track to bring the Pennsylvania Brewery's economics closer to what we anticipated and to increase capacity to support future growth. We are focused on a multi-year program to identify and execute projects that will continue to reduce cost, drive efficiency and increase productivity at both our Pennsylvania Brewery and our Cincinnati Brewery. Looking forward to 2010, we expect that continued improvement in the efficiencies at our breweries will contribute to improved gross margins compared to 2009 but that this will not return us to the gross margins experienced prior to the increases in brewery operating costs and packaging and ingredient costs since 2006. "

3rd Quarter Results

Core shipment volume for the three months ended September 26, 2009 was approximately 538,000 barrels, a 7% increase versus the same period in 2008. Excluding the impact of the product recall in 2008, core shipment volume increased 6%. The third quarter depletions increase of 6% was primarily attributed to increases in Samuel Adams® Seasonals, the Twisted Tea® brand family and the Samuel Adams® Brewmaster's Collection, which were partially offset by decreases in Samuel Adams Boston Lager® and Sam Adams Light®.

Bill Urich, Boston Beer Company CFO, said, "Our third quarter 2009 gross margin of 54% represented an increase of 10 percentage points over our third quarter 2008 gross margin that included the impact of the 2008 product recall and shortfall fees. Excluding the impact of the recall and shortfall fees in 2008, our gross margin has increased by 6 percentage points. This increase is due primarily to price increases, improved costs of operating our breweries, driven by lower energy costs, and the impact of the low margin Diageo contract production in the third quarter of 2008, partially offset by increased costs of package materials."

The Company's net income of $10.4 million, or $0.72 per diluted share, for the three months ended September 26, 2009 represents an increase of $10.7 million, or $0.74 per diluted share, from the same period last year. The increase in net income is primarily due to increased core shipments, improved gross margin and lower advertising, promotional and selling costs, driven by lower freight costs, offset by an increase in the provision for income taxes. Third quarter 2009 advertising, promotional and selling expenses were $1.3 million lower than those incurred in the third quarter of 2008, primarily as a result of decreases in freight expenses for shipping beer to wholesalers, driven primarily by reduced fuel costs, and the timing of certain marketing programs, offset by an increase in advertising and salary and benefit costs related to the addition of sales personnel. Third quarter 2009 general and administrative costs were $1.0 million lower than those incurred in the third quarter of 2008, primarily as a result of reduced salary and benefit costs. The Company recorded a tax provision in the third quarter of 2009 of $6.8 million, compared to $0.9 million in the prior year. The Company currently expects its full year tax rate to be approximately 43%.

Year to Date Results

Core shipment volume for the nine month period ended September 26, 2009 was 1.5 million barrels, which was flat compared to the same period in 2008. Excluding the impact of the 2008 product recall, 2009 core shipment volume decreased 3% from 2008 levels. In the first nine months of 2009, total Company depletions increased 2%, due primarily to increases in Samuel Adams® Seasonals, the Twisted Tea® brand family and the Samuel Adams® Brewmaster's Collection, which were partially offset by decreases in Samuel Adams Boston Lager® and Sam Adams Light®.

The Company's net income of $23.7 million, or $1.65 per diluted share, for the nine months ended September 26, 2009 represents an increase of $19.2 million, or $1.34 per diluted share, compared to the same period last year. The increase in net income is primarily due to the impact of product recall costs of $22.8 million incurred in the first nine months of 2008, price increases on core products of approximately 3% and lower advertising, promotional and selling costs in 2009, offset by an increase in the provision for income taxes. Advertising, promotional and selling expenses incurred during the first nine months of 2009 decreased by $11.4 million, as compared to 2008. The decrease was primarily due to reductions in freight expenses to wholesalers and better advertising rates and utilization, as well as more efficient spending and the timing of marketing programs that were only partially offset by increases in salaries and benefits due to the addition of sales personnel. General and administrative costs increased by $1.1 million during the first nine months of 2009 as compared to 2008, driven by a full nine months of operating costs related to the Pennsylvania Brewery, compared to only four months in the same period in 2008, offset by a decrease in salary and benefit costs at the Company's corporate office. The Company recorded a tax provision in the first nine months of 2009 of $17.8 million, compared to $5.1 million in the prior year.

Other matters

Year-to-date depletions reported to the Company through October 2009 increased approximately 2% from the same period in 2008, with two fewer selling days in 2009.

Shipments and orders in-hand suggest that core shipments year-to-date through December 2009 will be up approximately 1% compared to the same period in 2008, after adjusting the 2008 shipments for the total volume credited to wholesalers for the product recall during 2008. Actual shipments may differ and no inferences should be drawn with respect to shipments in future periods. The Company believes inventories at wholesalers at the end of the third quarter were at appropriate levels given the current volumes and trends.

Based on information of which the Company is currently aware and its projection that 2009 depletions will increase approximately 2 to 3% compared to 2008, the Company projects 2009 earnings per diluted share of between $1.75 and $2.05, but actual results could vary significantly from this target. The Company is committed to maintaining volume and healthy pricing, and is prepared to invest to accomplish this, even if these investments cause short term earnings decreases.

The Company currently expects 2009 capital expenditures to be between $14.0 million and $18.0 million. This amount includes approximately $7.0 million of carryover projects committed in 2008 for the Pennsylvania Brewery and completed during the first half of 2009. The Company is focused on projects that will increase efficiency and productivity at its breweries. Decisions as to which projects will actually be undertaken will depend, in part, on their projected returns on investment. Accordingly, actual 2009 capital expenditures may well be different from these estimates.

Looking forward to 2010, based on information of which the Company is currently aware, the Company hopes to increase revenue per barrel by 2% through minor front line and deal level adjustments and forecasts stability on costs of packaging and ingredients and a continued improvement in operating costs at the Pennsylvania Brewery. If successful, the Company could have full year 2010 gross margins that are consistent with the gross margin levels realized in the third quarter of 2009. While the Company continues to experience a healthy pricing environment, there is no guarantee that it will be able to achieve the planned price increases. The Company intends to increase investment in its brands in 2010 commensurate with the opportunities for growth that it sees, but there is no guarantee such increased investments will result in increased volumes. The Company will provide further 2010 guidance when the Company presents full year 2009 results.

The Company is currently evaluating 2010 capital expenditures and, based on current information, its initial estimates are between $15.0 million and $25.0 million, most of which relate to continued investments in the Pennsylvania Brewery, as the Company pursues efficiency initiatives. The actual amount spent may well be different from these estimates as the Company continues to analyze its investment opportunities. Based on information currently available, the Company believes it could support growth in 2010 in excess of 10% without significant capacity expansion.

The Company expects that its cash balances as of September 26, 2009 of $44.8 million, along with future operating cash flow and the Company's unused line of credit of $50.0 million, will be sufficient to fund future cash requirements. The Company continues to be in compliance with all of the covenants under its credit facility.

During the nine months ended September 26, 2009, the Company repurchased approximately 139,500 shares of its Class A Common Stock for a total cost of $4.1 million. Through November 3, 2009, the Company has repurchased a cumulative total of approximately 8.6 million shares of its Class A Common Stock for an aggregate purchase price of $118.1 million. The Company has approximately $21.9 million remaining on the $140.0 million share buyback expenditure limit set by the Board of Directors. The share buyback expenditure limit set by the Board of Directors was increased from $120.0 million to $140.0 million on August 10, 2009. As of November 3, 2009, the Company had 10.1 million shares of Class A Common Stock and 4.1 million shares of Class B Common Stock outstanding.

The Boston Beer Company began in 1984 with a generations-old family recipe that Founder and Brewer Jim Koch uncovered in his father's attic. After bringing the recipe to life in his kitchen, Jim brought it to bars in Boston with the belief that drinkers would appreciate a complex, full-flavored beer, brewed fresh in America. That beer was Samuel Adams Boston Lager®, and it helped catalyze what became known as the American craft beer revolution.

Today, the Company brews more than 21 styles of beer. The Company uses the traditional four vessel brewing process and often takes extra steps like dry-hopping and a secondary fermentation known as krausening. It passionately pursues the development of new styles and the perfection of its classic beers by constantly searching for the world's finest ingredients. While resurrecting traditional brewing methods, the Company has earned a reputation as a pioneer in another revolution, the "extreme beer" movement, where it seeks to challenge drinkers' perceptions of what beer can be. The Boston Beer Company strives to elevate the image of American craft beer by entering festivals and competitions the world over, and in the past five years it has won more awards in international beer competitions than any other brewery in the world. The Company remains independent, and brewing quality beer remains its single focus. While the Company is the country's largest-selling craft beer, it accounts for only about eight-tenths of one percent of the U.S. beer market. For more information, please visit http://www.samueladams.com/.

Statements made in this press release that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including, but not limited to, the Company's report on Form 10-K for the years ended December 27, 2008 and December 29, 2007. Copies of these documents may be found on the Company's website, http://www.bostonbeer.com/, or obtained by contacting the Company or the SEC.

The Boston Beer Company, Inc. Financial Results Operating Results (in thousands, except per share data) (unaudited) (unaudited) Three Months Ended Nine Months Ended ------------------ ----------------- Sept. 26, Sept. 27, Sept. 26, Sept. 27, 2009 2008 2009 2008 ---- ---- ---- ---- Barrels sold 545 671 1,689 1,723 Revenue, net of product recall returns of $979 and $13,307 for the three and nine months ended September 27, 2008, respectively $118,851 $110,467 $335,967 $323,446 Less Excise Tax 10,129 9,339 28,102 28,823 ------ ----- ------ ------ Net revenue 108,722 101,128 307,865 294,623 Cost of goods sold 50,417 55,983 149,564 149,735 Costs (recovery) associated with product recall - 1,254 (24) 9,546 ---- ----- ---- ----- Gross profit 58,305 43,891 158,325 135,342 Operating expenses: Advertising, promotional and selling expenses 32,737 34,004 89,792 101,249 General and administrative expenses 8,388 9,368 27,149 26,017 ----- ----- ------ ------ Total operating expenses 41,125 43,372 116,941 127,266 ------ ------ ------- ------- Operating income 17,180 519 41,384 8,076 Other income, net: Interest income 46 134 85 1,316 Other (expense) income, net (4) (14) - 200 --- --- --- --- Total other income, net 42 120 85 1,516 -- --- --- ----- Income before income taxes 17,222 639 41,469 9,592 Income tax provision 6,848 934 17,811 5,101 ----- --- ------ ----- Net income (loss) $10,374 $(295) $23,658 $4,491 ======= ===== ======= ====== Net income (loss) per common share - basic $0.74 $(0.02) $1.68 $0.32 ===== ====== ===== ===== Net income (loss) per common share - diluted $0.72 $(0.02) $1.65 $0.31 ===== ====== ===== ===== Weighted-average number of common shares - basic 14,008 13,934 14,054 13,890 ====== ====== ====== ====== Weighted-average number of common shares - diluted 14,334 13,934 14,322 14,333 ====== ====== ====== ====== Consolidated Balance Sheets: (in thousands, except share data) (unaudited) September 26, December 27, 2009 2008 ---- ---- Assets Current Assets: Cash and cash equivalents $44,802 $9,074 Accounts receivable, net of allowance for doubtful accounts of $300 and $255 as of September 26, 2009 and December 27, 2008, respectively 24,331 18,057 Inventories 24,132 22,708 Prepaid expenses and other assets 6,736 16,281 Deferred income taxes 1,988 2,734 ----- ----- Total current assets 101,989 68,854 Property, plant and equipment, net 146,665 147,920 Other assets 1,530 1,606 Goodwill 1,377 1,377 ----- ----- Total assets $251,561 $219,757 ======== ======== Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $18,709 $20,203 Accrued expenses 55,273 46,854 ------ ------ Total current liabilities 73,982 67,057 Deferred income taxes 9,617 9,617 Other liabilities 2,656 3,055 ----- ----- Total liabilities 86,255 79,729 Commitments and Contingencies Stockholders' Equity: Class A Common Stock, $.01 par value; 22,700,000 shares authorized; 10,144,258 and 10,068,486 issued and outstanding as of September 26, 2009 and December 27, 2008, respectively 101 101 Class B Common Stock, $.01 par value; 4,200,000 shares authorized; 4,107,355 issued and outstanding 41 41 Additional paid-in capital 108,350 102,653 Accumulated other comprehensive loss, net of tax (431) (431) Retained earnings 57,245 37,664 ------ ------ Total stockholders' equity 165,306 140,028 ------- ------- Total liabilities and stockholders' equity $251,561 $219,757 ======== ======== Consolidated Statements of Cash Flows: (in thousands) (unaudited) Nine Months Ended ----------------- September 26, September 27, 2009 2008 ---- ---- Cash flows provided by operating activities: Net income $23,658 $4,491 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 12,679 8,289 Impairment of long-lived assets 589 - (Gain) loss on disposal of property, plant and equipment (1) 25 Bad debt expense (recovery) 49 (7) Stock-based compensation expense 2,408 3,354 Excess tax benefit from stock-based compensation arrangements (1,174) (4,578) Deferred income taxes 746 - Proceeds from sale of trading securities - 16,200 Changes in operating assets and liabilities: Accounts receivable (6,323) (3,331) Inventories (1,424) (5,714) Prepaid expenses and other assets 9,641 (754) Accounts payable (1,494) 6,890 Accrued expenses 9,593 2,649 Other liabilities (399) (343) ---- ---- Net cash provided by operating activities 48,548 27,171 ------ ------ Cash flows used in investing activities: Purchases of property, plant and equipment (11,900) (45,339) Proceeds from disposal of property, plant and equipment - 11 Purchase of brewery assets - (44,960) - ------- Net cash used in investing activities (11,900) (90,288) ------- ------- Cash flows used in financing activities: Repurchase of Class A common stock (4,077) (15,324) Proceeds from exercise of stock options 1,642 4,842 Excess tax benefit from stock-based compensation arrangements 1,174 4,578 Net proceeds from sale of investment shares 341 301 --- --- Net cash used in financing activities (920) (5,603) ---- ------ Change in cash and cash equivalents 35,728 (68,720) Cash and cash equivalents at beginning of period 9,074 79,289 ----- ------ Cash and cash equivalents at end of period $44,802 $10,569 ======= ======= Supplemental disclosure of cash flow information: Income taxes paid $7,336 $8,329

Copies of The Boston Beer Company's press releases, including quarterly financial results, are available on the Internet at http://www.bostonbeer.com/

Boston Beer Company, Inc.

CONTACT: Erika Schermerhorn, +1-617-368-5091

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

PDI Reports 2009 Third Quarter Financial ResultsManagement will host Conference Call at 4:30 PM ET Today

SADDLE RIVER, N.J., Nov. 5 /PRNewswire-FirstCall/ -- PDI, Inc. , a leading provider of sales and marketing support to U.S. pharmaceutical companies, today reported financial and operational results for the third quarter ended September 30, 2009.

Commenting on today's announcement, Nancy Lurker, Chief Executive Officer of PDI, Inc., stated, "Third quarter 2009 revenues of $21.0 million were lower than last year by approximately 14%. Higher revenue in our Marketing Services business was offset by reductions in our Sales Services business. Despite lower revenue, this year's third quarter operating loss was reduced by more than 50% compared to last year. The reduction in operating loss was in large part due to the absence of the impact of the product commercialization contract that was in effect in 2008. However, on an adjusted basis, excluding the loss from the product commercialization contract, facilities realignment and severance charges, the third quarter 2009 operating loss is still 38% lower than last year, in large part due to our ongoing cost reduction initiatives and higher revenue in Marketing Services.

"While revenues were down in the third quarter compared to last year, as expected, they were up almost 30% over the second quarter of this year. However, the current economic climate coupled with pharmaceutical industry consolidation and downsizing, has led to a delay in gaining significant new business as many pharmaceutical companies have slowed their sales force initiatives while they continue to implement their integration and cost cutting strategies. Our continuing discussions with current and potential clients have confirmed their intent to expand their use of CSOs as an integral part of their business strategy, although it is still too early to predict with any certainty how robust the demand will be when the market recovers. That said, we have recently experienced an increase in the number of new business opportunities before us, lending credence to our belief that as recessionary pressures ease, the industry, and PDI, should benefit. Considering these factors and the uncertainty surrounding the duration of the U.S. recession, we approach year end and enter 2010 with a sense of caution as to the timing of gaining significant new business.

"In the interim, PDI continues to develop plans to manage in today's environment and we are executing on our goals, including focusing on our core business, identifying areas in which to drive down expenses while reinvesting in order to bolster our competitive position, and improving asset utilization. A new virtual call center, which went live in early October, and our recently announced co-marketing agreement with Physicians Interactive, will allow us to further expand the range of integrated, value-added services we provide. We expect these and other initiatives, including a new sales force automation system designed to lower costs while enhancing the effectiveness and efficiency of our field force, to make a positive impact on both existing and new client engagements moving forward.

"We continue to focus aggressively on gaining new business while working in parallel to reduce our cost structure so that as the market improves, the impact on our earnings and profitability will be that much more pronounced. As evidence of our progress, on an adjusted basis, even with reduced revenue, we significantly reduced our operating loss in part due to our ongoing cost reduction initiatives. Our next most visible sign of cost reduction efforts will come at the end of the fourth quarter of this year when we will be relocating our corporate offices to smaller, less costly facilities in Parsippany, New Jersey. While this move will require a charge to earnings of up to $5 million, we anticipate that it will result in savings beginning in 2010."

Financial Overview - Third Quarter 2009

For the quarter ended September 30, 2009, net revenue totaled $21.0 million, compared to $24.5 million in the same period last year. Revenue in the Sales Services segment for the third quarter of 2009 was $17.8 million, compared to $20.0 million in the same period of 2008. While Sales Services has gained revenue as a result of new contracts and the expansion of existing contracts, these gains were more than offset by lost revenue from the internalization of a contract sales force by a long-term client and the expiration or termination of other sales force arrangements in effect during 2008. Revenue in the Marketing Services segment for the third quarter of 2009 was $5.1 million compared to $4.5 million in 2008. A 30% increase in our Pharmakon business unit due to an increase in the number of projects was partially offset by a decrease in revenue from closing the VIM business unit in 2009.

Gross profit for the third quarter of 2009 was $6.9 million compared to $0.4 million in the same period last year. Gross profit for the Sales Services segment increased to $4.3 million from $2.8 million last year and gross profit in the Marketing Services segment increased to $2.4 million from $1.7 million in the year ago period. The impact on gross profit of lower revenue in the Sales Services segment was more than offset by lower operating costs, in large part resulting from the Company's cost savings initiatives as well as the recognition of higher performance related fees in 2009. The increase in gross profit in the Marketing Services segment was primarily attributable to higher revenue from our Pharmakon business unit. The Company's third quarter 2008 gross profit was negatively impacted by $4.1 million from the execution of the product commercialization agreement which was mutually terminated in the second quarter of 2009.

Total operating expenses for the third quarter of 2009 were $11.4 million compared to $10.0 million in the same period in 2008.

Other income, which is primarily interest income, declined to $30,000 in the third quarter of 2009 compared to $600,000 in 2008 due to a combination of significantly lower interest rates and lower average cash balances.

The operating loss for the third quarter of 2009 declined to $4.6 million compared to $9.6 million in the same period of 2008. On an adjusted basis, which excludes the loss from the product commercialization contract, facilities realignment and severance charges, the operating loss for the third quarter of 2009 declined 38% to $2.7 million from $4.4 million in 2008.

The net loss per share for the third quarter of 2009 was $0.32 compared to $0.63 in 2008.

Cash and cash equivalents as of September 30, 2009 were $70.6 million, a $5.6 million decline from June 30, 2009 and a $19.5 million decline from December 31, 2008. This decrease is primarily attributable to the Company's operating losses and cash expenses related to fulfillment of commitments, which extend through December 31, 2009, under the terminated product commercialization contract. As of September 30, 2009, the Company's cash equivalents were predominately invested in Treasury money market funds and the Company had no commercial debt.

Conference Call

As previously announced, PDI will hold a conference call today, to discuss financial and operational results of the third quarter ended September 30, 2009 as follows:

Time: 4:30 pm (ET) Dial-in numbers: 866-644-4654 (U.S. & Canada) or (706) 643-1203 Conference ID#: 38133586 Live webcast: http://www.pdi-inc.com/

The teleconference replay will be available three hours after completion through Saturday, November 7, 2009 by dialing 800-642-1687 (U.S. & Canada) or 706-645-9291 and entering conference ID 38133586. The archived webcast will be available for one year on the Company's investor website, http://www.pdi-inc.com/.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures. A reconciliation of these to the comparable GAAP measures is included as Exhibit A.

About PDI

PDI provides commercialization services for established and emerging biopharmaceutical companies. The Company is dedicated to maximizing the return on investment for its clients by providing strategic flexibility, sales, marketing and commercialization expertise.

For more information, please visit the Company's website at http://www.pdi-inc.com/.

Forward-Looking Statements

This press release contains forward-looking statements regarding future events and financial performance. These statements are based on current expectations and assumptions involving judgments about, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond PDI's control. These statements also involve known and unknown risks, uncertainties and other factors that may cause PDI's actual results to be materially different from those expressed or implied by any forward-looking statement. For example, with respect to statements regarding projections of future revenues, actual results may differ materially from those set forth in this release based on the loss, early termination or significant reduction of any of our existing service contracts or the failure to meet performance goals in PDI's incentive-based arrangements with customers. In addition, with respect to statements regarding the prospects for PDI's future growth, actual results may differ materially based on adverse market conditions, PDI's inability to successfully implement its strategic initiatives relating to leveraging and expanding its core CSO capabilities, expanding its range of integrated, value-added services and reducing expenses, adverse changes in outsourcing trends in the pharmaceutical industry or a reduction or elimination of the role of pharmaceutical sales representatives. Also, with respect to statements regarding anticipated future savings relating to the impending relocation of our corporate headquarters, these savings may be offset in whole or in part by expenses associated with the lease for our current corporate headquarters unless we are able to successfully sublet this facility in a timely manner. Additionally, all forward-looking statements are subject to the risk factors detailed from time to time in PDI's periodic filings with the Securities and Exchange Commission, including without limitation, PDI's Annual Report on Form 10-K for the year ended December 31, 2008, and PDI's subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K. Because of these and other risks, uncertainties and assumptions, undue reliance should not be placed on these forward-looking statements. In addition, these statements speak only as of the date of this press release and, except as may be required by law, PDI undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

PDI, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except for per share data) Three Months Nine Months Ended Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenue, net $21,041 $24,496 $60,863 $87,124 Cost of services 14,182 24,084 42,152 74,423 ------ ------ ------ ------ Gross profit 6,859 412 18,711 12,701 Compensation expense 5,774 5,696 17,820 19,006 Other selling, general and administrative expenses 4,431 4,305 12,690 12,892 Facilities realignment 1,220 - 3,030 - ----- - ----- - Total operating expenses 11,425 10,001 33,540 31,898 ------ ------ ------ ------ Operating loss (4,566) (9,589) (14,829) (19,197) Other income, net 30 629 194 2,579 -- --- --- ----- Loss before income tax (4,536) (8,960) (14,635) (16,618) Provision for income tax 26 44 477 923 -- -- --- --- Net loss $(4,562) $(9,004) $(15,112) $(17,541) ======= ======= ======== ======== Loss per share of common stock: Basic $(0.32) $(0.63) $(1.06) $(1.23) Diluted $(0.32) $(0.63) $(1.06) $(1.23) Weighted average number of common shares and common share equivalents outstanding: Basic 14,216 14,243 14,216 14,253 Diluted 14,216 14,243 14,216 14,253 Segment Data (Unaudited) (in thousands) Product Sales Marketing Commercial- Services Services ization Eliminations Consolidated -------- -------- ----------- ------------ ------------ Three months ended September 30, 2009: Revenue $17,800 $5,081 $- $(1,840) $21,041 Gross profit 4,347 2,447 - 65 6,859 Gross profit % 24.4% 48.2% 0.0% NM 32.6% Three months ended September 30, 2008: Revenue $19,979 $4,517 $- $- $24,496 Gross profit 2,831 1,710 (4,129) - 412 Gross profit % 14.2% 37.9% NM 0.0% 1.7% Nine months ended September 30, 2009: Revenue $52,230 $12,036 $- $(3,403) $60,863 Gross profit 10,308 5,617 2,486 300 18,711 Gross profit % 19.7% 46.7% 0.0% NM 30.7% Nine months ended September 30, 2008: Revenue $68,636 $19,488 $(1,000) $- $87,124 Gross profit 13,876 8,441 (9,616) - 12,701 Gross profit % 20.2% 43.3% NM 0.0% 14.6% NM - Not Meaningful Selected Balance Sheet Data (Unaudited) (in thousands) September 30, December 31, 2009 2008 ---- ---- Cash and cash equivalents $70,551 $90,074 Total current assets $93,707 $112,999 Total current liabilities 20,107 31,360 ------ ------ Working capital $73,600 $81,639 ------- ------- Total assets $124,925 $149,036 Total liabilities $31,781 $41,929 Total stockholders' equity $93,144 $107,107 Selected Cash Flow Data (Unaudited) (in thousands) September 30, September 30, 2009 2008 ---- ---- Net loss $(15,112) $(17,541) Non-cash items 4,605 4,992 Net change in assets and liabilities (8,371) 6,229 ------ ----- Net cash used in operations $(18,878) $(6,320) Change in cash and cash equivalents $(19,523) $(4,875) Exhibit A Non-GAAP Financial Measures

When we evaluate the performance of our business as a whole, we focus on results (such as gross profit, operating expense and operating income/loss) before certain types of gains and charges because such gains and charges are not a component of our ongoing income or expenses and/or may have a disproportionate positive or negative impact on the results of our ongoing underlying business operations. These non-GAAP results should not be considered in isolation and are not in accordance with, or a substitute for, GAAP results. Our non-GAAP results may differ from similar measures used by other companies, even if similar terms are used to identify such measures. PDI's management believes non-GAAP results are useful in evaluating the performance of its business; however, its reliance on these measures is limited since items excluded from such measures may have a material impact on our revenue, gross profit, operating expenses and operating loss calculated in accordance with GAAP. Therefore, investors should consider these limitations and evaluate non-GAAP results in conjunction with GAAP.

Reconciliation from GAAP to non-GAAP ("Adjusted") Financial Measures (Unaudited) (in thousands) Three Months Ended Three Months Ended September 30, 2009 September 30, 2008 ------------------ ------------------ Gross Operating Gross Operating Revenue Profit (Loss) Revenue Profit (Loss) ------- ------ --------- ------- ------ --------- GAAP $21,041 $6,859 $(4,566) $24,496 $412 $(9,589) Product commercialization(1) - - - - 4,129 4,785 Facilities realignment(2) - - 1,220 - - - Severance(3) - - 600 - - 400 --- --- --- --- --- --- non-GAAP ("Adjusted") $21,041 $6,859 $(2,746) $24,496 $4,541 $(4,404) ======= ====== ======= ======= ====== ======= (1) Represents costs from our PC Services segment in connection with the promotional contract that was mutually terminated in April 2009. $4.1 million is recorded within Cost of services, $0.4 million is recorded within Compensation expense and $0.3 million is recorded within Selling, general and administrative expense in the Company's Condensed Consolidated Statement of Operations. (2) Relates to charges for exiting and subleasing the first floor of our Saddle River, New Jersey facility in connection with our cost savings initiative and is recorded within Facilities Realignment in the Company's Condensed Consolidated Statement of Operations. (3) Relates to severance charges at our TVG business unit during the three months ended September 30, 2009 and severance charges for an executive departure during the three months ended September 30, 2008 and is recorded within Compensation expense in the Company's Condensed Consolidated Statement of Operations.

PDI, Inc.

CONTACT: Amy Lombardi of PDI, Inc., +1-201-574-8663,
ALombardi@pdi-inc.com; or investors, Melody Carey of Rx Communications Group,
+1-917-322-2571, MCarey@RxIR.com

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

Eastern Insurance Holdings, Inc. Announces Third Quarter 2009 Results

LANCASTER, Pa., Nov. 5 /PRNewswire-FirstCall/ -- Eastern Insurance Holdings, Inc. ("EIHI") today reported earnings for the three months ended September 30, 2009. EIHI reported net income of $3.3 million, or $0.36 per diluted share, for the third quarter of 2009, compared to a net loss of $3.1 million, or $0.34 per diluted share, for the same period in 2008. EIHI's diluted book value per share was $15.55 as of September 30, 2009 compared to $14.13 as of December 31, 2008, an increase of $1.42 per share or 10.0 percent.

"Our largest business segment, workers' compensation insurance, led the Company to another strong quarter of earnings and increases in our book value per share" said Bruce M. Eckert, Chief Executive Officer. "Our profitable performance was aided by the positive returns of our investment portfolio. Also of significance were the solid operating results in our Midwest and Southeast regions; additional confirmation of the benefits of our strategic, geographic initiatives. Despite continuing rate pressures, we were able to not only retain 84.7 percent of our renewal business, but also achieve year-over-year premium growth. We continue to be pleased with the marketplace's receptivity to our "ParallelPay" workers' compensation product. Since its introduction at the end of the first quarter of this year, we have recorded premium writings of approximately $4.2 million through September 30, 2009, the majority of which represents new premium writings."

Eckert continued, "Our group benefits insurance segment recorded a profitable quarter, as well, principally aided by the strong performance of its investment portfolio, particularly the convertible bond portfolio. Loss ratios in our group life and long- and short-term disability policies were as expected for the quarter; however, our dental loss ratio came in higher than expected as a result of competitive rate pressure, particularly in our Southeast market. We were pleased to note, however, that September results indicated a 5.1 percent rate increase on our dental renewals while we maintained an 85.9 percent retention ratio. A continuation of this trend should bring our dental loss ratio more in line with previous years' results."

Consolidated highlights for the third quarter include: -- Revenue for the third quarter of 2009 increased to $37.9 million compared to $29.5 million for the same period in 2008. The increase in revenue is due primarily to an increase in income from limited partnerships and a change to net realized investment gains in 2009 from net realized investment losses in 2008, partially offset by a decrease in investment income; -- Net premiums earned were $33.1 million for the third quarter of 2009 and 2008. Net premiums earned were impacted by the growth in workers' compensation insurance premium and the acquisition of Employers Security Insurance Company offset by the termination of the reinsurance treaty effective July 1, 2008 that comprised the run-off specialty reinsurance segment and a $588,000 reduction related to favorable third quarter 2009 loss experience under retrospectively rated policies; -- Net investment income decreased $400,000 to $2.0 million ($1.4 million after-tax) for the three months ended September 30, 2009, compared to $2.4 million ($1.6 million after-tax) for the same period in 2008. The decrease in net investment income is due primarily to the short-term interest rate environment; -- The change in equity interest in limited partnerships increased $2.2 million to income of $523,000 ($376,000 after-tax) for the three months ended September 30, 2009, compared to a loss of $1.7 million ($1.1 million after-tax) for the same period in 2008; -- Net realized investment gains, excluding the segregated portfolio cell reinsurance segment, were $1.8 million ($1.1 million after-tax) for the three months ended September 30, 2009, compared to net realized investment losses, excluding the segregated portfolio cell reinsurance segment, of $3.8 million ($2.5 million after-tax) for the same period in 2008; and -- $350,000 ($228,000 after-tax) of favorable loss reserve development on prior accident years was recorded in the workers' compensation insurance segment for the three months ended September 30, 2009, compared to no favorable loss reserve development on prior accident years for the same period in 2008.

Weighted average fully diluted shares considered outstanding used to calculate diluted earnings per share for the three months ended September 30, 2009 and 2008 consisted of the following:

2009 2008 ---- ---- Shares issued on June 16, 2006 10,603,548 10,603,548 Weighted average ESOP shares 236,845 162,095 Weighted average restricted stock shares 117,429 93,711 Weighted average treasury shares purchased (2,091,757) (2,038,235) Weighted average stock warrants exercised(1) 180,291 - Stock warrants(1) - 306,099 --------- ------- Total 9,046,356 9,127,218 ========= ========= (1) 306,099 warrants were outstanding as of January 1, 2009 of which 244,879 warrants were earned. The remaining 61,220 warrants will not be earned. On March 10, 2009, the 244,879 warrants were exercised. EIHI retained 64,588 warrants as payment of the exercise price. Segment Operating Results Workers' Compensation Insurance

EIHI's workers' compensation insurance segment reported net income of $2.5 million for the third quarter of 2009, compared to $527,000 for the third quarter of 2008. Highlights for the third quarter include:

-- Direct written premiums increased to $29.8 million for the three months ended September 30, 2009, compared to $26.4 million for the same period in 2008, an increase of 12.8 percent; -- Net premiums earned increased to $17.8 million for the third quarter of 2009, compared with $15.8 million for the third quarter of 2008, an increase of 12.7 percent; -- Net investment income was $800,000 for the third quarter of 2009, compared to $1.1 million for the same period in 2008. The decrease in net investment income is due primarily to a decrease in the invested asset base and the short-term interest rate environment; -- The change in equity interest in limited partnerships was income of $358,000 for the three months ended September 30, 2009, compared to a loss of $1.4 million for the same period in 2008; -- After-tax net realized investment gains of $220,000 were recorded for the three months ended September 30, 2009, compared to after-tax net realized investment losses of $475,000 for the same period in 2008; -- The combined ratio was 89.0 percent for the third quarter of 2009, compared to 88.7 percent for the same period last year; -- The accident year loss and LAE ratio was 64.8 percent and 60.0 percent for the three months ended September 30, 2009 and 2008, respectively. For the three months ended September 30, 2009, $350,000 of favorable loss reserve development on prior accident years was recorded, which decreased the 2009 loss ratio by 2.0 percentage points compared to no favorable loss reserve development on prior accident years in the third quarter of 2008; and -- The expense ratio was 27.0 percent for the three months ended September 30, 2009 and 2008. Segregated Portfolio Cell Reinsurance

As previously reported, the segregated portfolio cell reinsurance segment has thirteen active programs, which produce fee-based revenue and segregated portfolio cell dividends for EIHI's other business segments. Prospecting activity in this segment has increased despite current economic trends, largely as a result of our expansion into the Southeast and Midwest markets.

Group Benefits Insurance

EIHI's group benefits insurance segment reported net income of $911,000 for the three months ended September 30, 2009, compared to a net loss of $1.1 million for the same period in 2008. Highlights for the third quarter include:

-- Net premiums earned were $9.0 million for the third quarter of 2009, compared to $9.1 million in 2008; -- Net investment income was $385,000 for the third quarter of 2009, compared to $656,000 for the third quarter of 2008. The decrease in net investment income is due primarily to a decrease in the invested asset base and the short-term interest rate environment; -- The change in equity interest in limited partnerships was income of $61,000 for the three months ended September 30, 2009, compared to a loss of $121,000 for the same period in 2008; -- After-tax net realized investment gains of $896,000 were recorded for the three months ended September 30, 2009, compared to after-tax net realized investment losses of $1.9 million for the same period in 2008; -- The combined ratio was 105.1 percent for the third quarter of 2009, compared to 95.7 percent for the same period last year; -- The calendar year loss and LAE ratio was 72.4 percent for the three months ended September 30, 2009, compared to 65.0 percent for the same period in 2008. The increase in the calendar year loss and LAE ratio is primarily due to an increase in the dental loss ratio as a result of the competitive rate environment; and -- The expense ratio was 32.7 percent for the three months ended September 30, 2009, compared to 30.7 percent for the same period in 2008. The increase in the expense ratio is largely a result of increased corporate expense allocations. Run-Off Specialty Reinsurance

Prior to July 1, 2008, business in the run-off specialty reinsurance segment was assumed through participation in a reinsurance treaty with an unaffiliated ceding company related to an underground storage tank insurance program, referred to as "EnviroGuard," and a non-hazardous waste transportation product, referred to as "EIA Liability." Effective July 1, 2008, EIHI terminated the reinsurance treaty that comprised the run-off specialty reinsurance segment.

EIHI's run-off specialty reinsurance segment reported net income of $345,000 for the third quarter of 2009, compared to a net loss of $1.3 million for the same period last year. Highlights for the third quarter include:

-- Net premiums earned were $14,000 for the third quarter of 2009, compared to $2.1 million in 2008. The decrease in net premiums earned is due to the July 1, 2008 termination of the reinsurance treaty that comprised the run-off specialty reinsurance segment; -- Net investment income was $259,000 for the three months ended September 30, 2009, compared to $338,000 for the same period last year; -- The change in equity interest in limited partnerships was income of $104,000 for the three months ended September 30, 2009, compared to a loss of $143,000 for the same period in 2008; and -- After-tax net realized investment gains of $11,000 were recorded for the three months ended September 30, 2009, compared to after-tax net realized investment losses of $171,000 for the same period in 2008. Corporate and Other

The corporate and other segment primarily includes corporate expenses and EIHI's third party administration business. The corporate and other segment recorded a net loss of $415,000 for the three months ended September 30, 2009, compared to a net loss of $1.2 million for the same period in 2008. The decrease in the net loss in 2009 compared to 2008 is due to a reduction in corporate expenses and an increase in earnings from EIHI's jointly-owned segregated portfolio cells.

Financial Condition

Total assets were $399.2 million as of September 30, 2009. Shareholders' equity was $151.4 million as of September 30, 2009. As of September 30, 2009, EIHI's book value per share and diluted book value per share were $15.60 and $15.55, respectively. Outstanding shares used to calculate book value per share and diluted book value per share were 9,691,257 and 10,340,445, respectively, as of September 30, 2009. The basic book value per share calculation includes the impact of restricted stock awards of 251,675 shares and warrants exercised of 180,291. The diluted book value per share calculation includes the additional impact of stock options to purchase 649,188 common shares, which have a weighted average exercise price of $14.36.

Conference Call with Investors

EIHI will hold a conference call with investors beginning at 10:00 a.m. Eastern Time on Friday, November 6, 2009 to review the Company's 2009 third quarter results. The conference call will be available via a live webcast accessed through the Investor Relations section of http://www.easterninsuranceholdings.com/. The dial-in numbers for the conference call are as follows:

Live Call --------- 800-860-2442 (Domestic) 412-858-4600 (International)

A replay of the conference call will be available through November 16, 2009, at 877-344-7529 (domestic) and 412-317-0088 (international). The replay conference number for the conference call is 435122. An online archive of the webcast will be available on the Investor Relations section of http://www.easterninsuranceholdings.com/.

Consolidated Financial Results

Set forth in the tables below are the unaudited consolidated balance sheets as of September 30, 2009 and December 31, 2008 and unaudited statements of income for the three and nine months ended September 30, 2009 and 2008.

EASTERN INSURANCE HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands, except share and per share data) September December 30, 31, 2009 2008 ----- ----- ASSETS Investments: Fixed income securities, at estimated fair value (amortized cost, $168,734; $180,102) $175,349 $183,136 Convertible bonds, at estimated fair value (amortized cost, $14,431; $13,783) 15,955 12,346 Equity securities, at estimated fair value (cost, $17,927; $22,287) 21,104 17,162 Other long-term investments, at estimated fair value (cost, $10,177; $10,586) 9,857 9,519 ----- ----- Total investments 222,265 222,163 Cash and cash equivalents 68,354 52,875 Accrued investment income 1,676 2,058 Premiums receivable (net of allowance, $582; $581) 39,171 29,615 Reinsurance recoverable on paid and unpaid losses and loss adjustment expenses 28,188 29,637 Deferred acquisition costs 7,339 5,760 Deferred income taxes, net 3,438 6,281 Federal income taxes recoverable 205 16 Intangible assets 7,880 9,179 Goodwill 10,752 10,752 Other Assets 9,920 8,975 ----- ----- Total assets $399,188 $377,311 ======== ======== LIABILITIES Reserves for unpaid losses and loss adjustment expenses $156,500 $159,117 Unearned premium reserves 53,442 42,365 Advance premium 1,375 1,594 Accounts payable and accrued expenses 12,791 13,136 Ceded reinsurance balances payable 5,754 6,886 Benefit plan liabilities 499 497 Segregated portfolio cell dividend payable 15,422 13,140 Loan payable 1,975 2,439 ----- ----- Total liabilities $247,758 $239,174 -------- -------- SHAREHOLDERS' EQUITY Series A preferred stock, par value $0, auth. shares - 5,000,000; no shares issued and outstanding - - Common capital stock, par value $0, auth. shares - 20,000,000; issued - 11,783,014 and 11,602,723, respectively; outstanding - 9,691,257 and 9,512,366, respectively - - Unearned ESOP compensation (5,047) (5,606) Additional paid in capital 112,666 111,772 Treasury stock, at cost (2,091,757 and 2,090,357 shares, respectively) (32,666) (32,655) Retained earnings 70,989 66,492 Accumulated other comprehensive income (loss), net 5,488 (1,866) ----- ------ Total shareholders' equity 151,430 138,137 ------- ------- Total liabilities and shareholders' equity $399,188 $377,311 ======== ======== EASTERN INSURANCE HOLDINGS, INC. AND SUBSIDIARIES UNAUDITED STATEMENTS OF INCOME (Unaudited, in thousands, except share and per share data) Three Months Nine Months Ended Ended ------------ ------------ September September September September 30, 30, 30, 30, 2009 2008 2009 2008 ----- ----- ----- ----- Revenue: Net premiums earned $33,108 $33,118 $100,864 $99,363 Net investment income 1,960 2,412 5,632 7,407 Change in equity interest in limited partnerships 523 (1,657) 800 (1,965) Net realized investment gains (losses) 2,088 (4,518) 349 (4,213) Other revenue 206 167 569 522 --- --- --- --- Total revenue 37,885 29,522 108,214 101,114 ------ ------ ------- ------- Expenses: Losses and loss adjustment expenses incurred 20,595 22,517 64,479 62,930 Acquisition and other underwriting expenses 4,415 4,588 13,371 14,224 Other expenses 6,612 6,584 19,488 19,113 Amortization of intangible assets 433 328 1,299 984 Policyholder dividends 118 325 241 253 Segregated portfolio dividend expense 1,086 29 434 2,602 ----- -- --- ----- Total expenses 33,259 34,371 99,312 100,106 ------ ------ ------ ------- Income (loss) before income taxes 4,626 (4,849) 8,902 1,008 Income tax expense (benefit) 1,335 (1,760) 3,189 20 ----- ------ ----- -- Net income (loss) $3,291 $(3,089) $5,713 $988 ====== ======= ====== ==== Earnings per share (EPS): Basic shares outstanding 9,027,706 8,776,743 8,963,740 9,017,853 Basis EPS $0.36 $(0.34) $0.63 $0.11 Diluted shares outstanding 9,046,356 8,776,743 9,047,750 9,371,896 Diluted EPS $0.36 $(0.34) $0.62 $0.10 Cautionary Statement

Some of the statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "project," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms or other similar terminology. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. No assurance can be given that management's expectations, beliefs or projections will occur or be achieved or accomplished. Factors that could affect the Company's actual results include, among others, the fact that our loss reserves are based on estimates and may be inadequate to cover our actual losses; the uncertain effects of emerging claim and coverage issues on our business; an inability to obtain or collect on our reinsurance protection; a downgrade in the A.M. Best rating of our insurance subsidiaries; the impact of extensive regulation of the insurance industry and legislative and regulatory changes; a failure to realize our growth strategies and investment objectives; the further deterioration in the fixed income and equity security markets, the effects of intense competition; the loss of one or more principal employees; the geographic concentration of our business; the failure of independent insurance brokers to adequately market our products; and other factors described in our filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update any forward-looking statements.

Eastern Insurance Holdings, Inc.

CONTACT: Kevin Shook, Treasurer and Chief Financial Officer, Eastern
Insurance Holdings, Inc., +1-717-735-1660, kshook@eains.com

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

NETGEAR to Host Financial Analyst Day

SAN JOSE, Calif., Nov. 5 /PRNewswire-FirstCall/ -- NETGEAR, Inc. (Nasdaq GM: NTGR), a worldwide provider of technologically advanced, branded networking products, will host a financial analyst day in New York. The Company's executive team will present an overview of NETGEAR's growth strategy.

Date: Monday, November 9, 2009 Time: 8:30 a.m., EST Place: http://www.netgear.com/

The presentation will be webcast on NETGEAR's IR website at http://www.netgear.com/. Interested parties should access the webcast approximately 10 minutes before the scheduled start time. The webcast replay will be available approximately 24 hours after the presentation ends and will be accessible for two weeks after the event.

About NETGEAR, Inc.

NETGEAR (NASDAQ GM: NTGR) designs innovative, branded technology solutions that address the specific networking, storage, and security needs of small- to medium-sized businesses and home users. The company offers an end-to-end networking product portfolio to enable users to share Internet access, peripherals, files, multimedia content, and applications among multiple computers and other Internet-enabled devices. Products are built on a variety of proven technologies such as wireless, Ethernet and powerline, with a focus on reliability and ease-of-use. NETGEAR products are sold in over 27,000 retail locations around the globe, and via more than 37,000 value-added resellers. The company's headquarters are in San Jose, Calif., with additional offices in 25 countries. NETGEAR is an ENERGY STAR® partner. More information is available by visiting http://www.netgear.com/ or calling (408) 907-8000. Follow NETGEAR at http://twitter.com/NETGEAR and http://www.facebook.com/netgear.

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

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

NETGEAR, Inc.

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

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

F.N.B. Capital Corporation Provides $10M in Mezzanine Financing to B.J. Alan Company, Inc.Leading Consumer Firework Retailer and Distributor Plans for Expanded Business Opportunities and Growth for Phantom Fireworks

PITTSBURGH, Nov. 5 /PRNewswire-FirstCall/ -- F.N.B. Capital Corporation, a Pittsburgh-based merchant banking subsidiary of F.N.B. Corporation , is pleased to announce the closing of a $10 million mezzanine financing investment in The B.J. Alan Company, a Youngstown, Ohio based distributor of consumer fireworks. The mezzanine financing provided by F.N.B. Capital Corporation will be invested to expand the Phantom Fireworks brand, allow for further business growth and to assist with the seasonal nature of the business.

"We are thrilled to have formed a new partnership with B.J. Alan Company," noted Stephen Gurgovits, Jr., President and CEO of F.N.B. Capital Corporation. "Under the leadership of Bruce Zoldan, Phantom Fireworks has become a highly respected leader in the consumer fireworks industry. I am confident that Bruce's industry knowledge and know-how combined with our support and expertise will foster a path of continued success and growth for the Company."

For over 30 years, B.J. Alan Company has built and developed the Phantom Fireworks brand by serving customers through high-end permanent retail showrooms across the country. Additionally, the Company successfully manages over 1,000 temporary Phantom Fireworks locations during the Independence Day selling season.

Bruce Zoldan, President and CEO of B.J. Alan Company stated, "We are pleased to enter into this transaction with the F.N.B. Capital Corporation team. Since the 1970s we have strived to provide our customers with best- of-class service and selection and this investment will allow us to continue our growth strategies and capitalize on the favorable trends in our industry:"

B.J. Alan has been at the forefront of product safety and innovation as demonstrated by its breadth of products including favorites such as fountains, cakes, rockets, mortars, and aerial repeaters. Additionally, management has been highly involved in various industry associations including leadership roles in the American Pyrotechnics Association and the American Fireworks Standards Laboratory which have a successful track record of improving the safety of products, encouraging responsible legislation and better educating consumers.

For more information on B.J. Alan Company, including a product catalog and location guide, visit http://www.fireworks.com/.

About F.N.B. Capital Corporation, LLC

F.N.B. Capital Corporation, LLC is headquartered in Pittsburgh, PA. A subsidiary of F.N.B. Corporation, it specializes in providing subordinated debt, private equity and other types of financial capital to small and medium sized commercial enterprises, focusing on recapitalizations, buyouts, generational transitions, mergers and acquisitions and other growth capital needs.

About F.N.B. Corporation

F.N.B. Corporation, headquartered in Hermitage, PA, is a diversified financial services company with total assets of $8.6 billion as of September 30, 2009. F.N.B. Corporation is a leading provider of commercial and retail banking, leasing, wealth management, insurance, merchant banking and consumer finance services in Pennsylvania and Ohio, where it owns and operates First National Bank of Pennsylvania, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National Insurance Agency, LLC, F.N.B. Capital Corporation, LLC, Regency Finance Company and Bank Capital Services. It also operates consumer finance offices in Tennessee and loan production offices in Pennsylvania, Tennessee and Florida.

The common stock of F.N.B. Corporation trades on the New York Stock Exchange under the symbol "FNB". Investor information is available on F.N.B. Corporation's Web site at http://www.fnbcorporation.com/.

F.N.B. Capital Corporation

CONTACT: Jennifer Reel, +1-724-983-4856, office, or +1-724-699-6389,
cell, reel@fnb-corp.com

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

Cadence Pharmaceuticals Reports Third Quarter 2009 Financial Results

SAN DIEGO, Nov. 5 /PRNewswire-FirstCall/ -- Cadence Pharmaceuticals, Inc. , a biopharmaceutical company focused on in-licensing, developing and commercializing proprietary product candidates principally for use in the hospital setting, today reported financial results for the three and nine months ended September 30, 2009.

Based upon the Priority Review designation granted by the FDA for Cadence's New Drug Application (NDA) for Acetavance(TM) (intravenous acetaminophen), the company accelerated its commercial readiness activities during the third quarter of 2009. Commenting on the third quarter achievements, Ted Schroeder, President and CEO of Cadence stated, "We are extremely pleased with the progress we have made in building our commercial infrastructure, including the recruitment of a highly experienced commercial leadership team to launch Acetavance, if approved by the FDA."

Financial Results

For the three months ended September 30, 2009, Cadence reported a net loss of $11.4 million, or $0.23 per share, compared to a net loss of $13.7 million, or $0.36 per share, for the same period in 2008. Operating expenses for the three months ended September 30, 2009 decreased $2.4 million to $11.3 million, from the $13.7 million reported for the comparable period in 2008. The decline in operating expenses during the current year was primarily the result of a reduction in research and development costs as the company completed its clinical development program for Acetavance in early 2009 and submitted an NDA for this product candidate in May 2009. Further, in March 2009, the company discontinued the development program for its omiganan product candidate. Partially offsetting this reduction is an increase in sales and marketing expenses as the company focused significant resources on establishing its commercial infrastructure in preparation for the potential commercialization of Acetavance. More specifically, during the three months ended September 30, 2009, Cadence hired its sales management team for the potential launch of Acetavance, if approved, and is currently recruiting sales representatives contingent on FDA approval. Cadence also increased spending related to the development of marketing materials and programs during the three months ended September 30, 2009. In addition, general and administrative expenses increased during the current quarter primarily due to increased personnel costs, including an additional $0.6 million in stock-based compensation charges.

For the nine months ended September 30, 2009, Cadence reported a net loss of $30.2 million, or $0.63 per share, compared to a net loss of $43.1 million, or $1.18 per share, for the same period in 2008. Operating expenses for the nine months ended September 30, 2009 were $29.4 million, a decrease of $13.6 million from the $43.0 million reported for the comparable period in 2008. The decrease in current year expenses is primarily due to a reduction in research and development costs as a result of the company's discontinuation of the development program for its omiganan product candidate in March 2009, the completion of its clinical development program for Acetavance in early 2009, and the submission of its NDA for Acetavance in May 2009. Partially offsetting this reduction is an increase in sales and marketing expenses in 2009 as the company began establishing its commercial and supply operation functions in preparation for the potential commercialization of Acetavance. General and administrative expenses increased during the current year primarily due to increased personnel costs, including an additional $0.8 million in stock-based compensation charges.

As of September 30, 2009, Cadence held cash, cash equivalents and short-term investments of $96.6 million.

Conference Call and Webcast on November 5, 2009 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time)

Cadence management will host a conference call on November 5, 2009 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) and interested investors may participate in the conference call by dialing 888-811-5448 (domestic) or 913-312-4376 (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 and remain available on the company's website until the next quarterly financial results call.

About Cadence Pharmaceuticals, Inc.

Cadence Pharmaceuticals is a biopharmaceutical company focused on in-licensing, developing and commercializing proprietary product candidates principally for use in the hospital setting. The company is currently developing Acetavance (intravenous acetaminophen), an investigational product candidate for the treatment of acute pain and fever. For more information about Cadence's pipeline, visit http://www.cadencepharm.com/.

Forward-Looking Statements

Statements included in this press release that are not a description of historical facts are forward-looking statements. Words such as "believes," "expects," "anticipates," "plans," "will," and "assuming," and similar expressions, are intended to identify forward-looking statements, and are based on Cadence's current beliefs and expectations. Forward-looking statements include statements regarding: the company's efforts to accelerate the development of its commercial and supply operations infrastructure, the likelihood of obtaining regulatory approval for Acetavance in a timely manner, or at all, and any financial estimates or projections. The inclusion of forward-looking statements such as these 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 possibility that the FDA may not complete its review of Cadence's NDA for Acetavance by the PDUFA goal date, or that the FDA may not approve the NDA if it determines that the clinical, non-clinical or other data submitted in the NDA are not adequate to support the safety or efficacy of this product candidate; the possibility that pre-approval inspections by the FDA of the site where Acetavance is manufactured, or Cadence's clinical trial sites, may raise issues that must be resolved prior to obtaining approval of the NDA; the risk that increased attention to drug safety issues may result in a more cautious approach by the FDA, which could delay the completion of the review process for the Acetavance NDA, or result in limitations in the indications for use or the inclusion of unfavorable information in the labeling for this product candidate; intense competition from existing and new products, which could diminish the commercial potential for Acetavance; the possibility that the patent rights covering Acetavance may not be sufficient to preclude other intravenous formulations of acetaminophen from being developed by competitors; the company's dependence on Acetavance, which is Cadence's only product candidate; the potential for Cadence to require substantial additional funding in order to obtain regulatory approval for and commercialize Acetavance, and the risk that the company may not be able to raise sufficient capital when needed, or at all; 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 Acetavance(TM) are trademarks of Cadence Pharmaceuticals, Inc.

Contact: William R. LaRue SVP & Chief Financial Officer Cadence Pharmaceuticals, Inc. Phone : 858-436-1400 CADENCE PHARMACEUTICALS, INC. (a development stage company) CONDENSED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 2009 2008 2009 2008 ---- ---- ---- ---- Operating expenses: Research and development $4,924,778 $10,241,943 $15,144,099 $32,463,211 Sales and marketing 2,608,441 664,143 4,330,695 2,175,120 General and administrative 3,762,851 2,754,064 9,549,203 8,323,996 Other (944) 509 412,141 28,766 ---- --- ------- ------ Total operating expenses 11,295,126 13,660,659 29,436,138 42,991,093 ---------- ---------- ---------- ---------- Loss from operations (11,295,126) (13,660,659) (29,436,138) (42,991,093) Other (expense) income, net (145,979) (88,336) (742,411) (71,653) -------- ------- -------- ------- Net loss $(11,441,105) $(13,748,995) $(30,178,549) $(43,062,746) ============ ============ ============ ============ Basic and diluted net loss per share(1) $(0.23) $(0.36) $(0.63) $(1.18) ====== ====== ====== ====== Shares used to compute basic and diluted net loss per share(1) 50,364,493 38,116,063 48,189,177 36,371,272 ========== ========== ========== ========== (1) As a result of the issuance of 12,039,794 shares of common stock pursuant to a private placement in the first quarter of 2009 and 9,240,307 shares of common stock pursuant to an effective shelf registration in the first quarter of 2008, there is a lack of comparability in the per share amounts between the 2009 and 2008 periods presented. CADENCE PHARMACEUTICALS, INC. (a development stage company) CONDENSED BALANCE SHEETS September 30, December 31, 2009 2008 ---- ---- (unaudited) Assets Current assets: Cash, cash equivalents and short-term investments $96,552,282 $47,627,246 Restricted cash 1,695,696 2,195,696 Prepaid expenses and other current assets 569,427 219,674 ------- ------- Total current assets 98,817,405 50,042,616 Property and equipment, net 6,826,161 4,477,020 Restricted cash 189,738 537,586 Other assets 25,082 90,792 ------ ------ Total assets $105,858,386 $55,148,014 ============ =========== Liabilities and Stockholders' Equity Current liabilities: Accounts payable 2,997,956 $4,877,854 Accrued liabilities 5,599,841 9,063,310 Current portion of long-term debt 6,229,049 7,694,173 Other current liabilities 22,048 22,048 ------ ------ Total current liabilities 14,848,894 21,657,385 Deferred rent 725,625 952,274 Long-term debt, less current portion and discount 1,650,996 6,098,113 Total stockholders' equity 88,632,871 26,440,242 ---------- ---------- Total liabilities and stockholders' equity $105,858,386 $55,148,014 ============ ===========

Cadence Pharmaceuticals, Inc.

CONTACT: William R. LaRue, SVP & Chief Financial Officer of Cadence
Pharmaceuticals, Inc., +1-858-436-1400

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

Air Methods Reports 3Q2009 Results and 4Q2009 UpdateFully-Diluted Earnings Per-Share of $1.01 Reflects 51% Growth in Net Income

DENVER, Nov. 5 /PRNewswire-FirstCall/ -- Air Methods Corporation reported results for the quarter ended September 30, 2009. Revenue increased 3% to $137.6 million from $133.8 million in the year-ago quarter. For the nine-month period, revenue increased 3% to $390.4 million, up from $379.9 million in the prior-year nine-month period. The prior-year quarter and nine-month period included $7.3 million in revenue generated from hurricane response activities, as compared with no revenue from such activities during the current-year periods. Excluding revenue generated from hurricane response activities in the prior-year periods, revenue increased 9% and 5% for the quarter and nine-month period ended September 30, 2009, respectively.

For the quarter, net income increased 51% to $12.6 million, or $1.01 per diluted share, as compared with prior-year quarter net income of $8.4 million, or $0.67 per diluted share. Net income for the nine-month period increased 69% to $26.2 million, or $2.12 per diluted share, compared to $15.5 million, or $1.23 per diluted share, for the prior-year period. The current-year and prior-year quarters included pre-tax net gains on disposition of assets of $0.2 million and $1.1 million, respectively.

Third Quarter Highlights

Community-Based Services: Revenue from Community-Based Services decreased 3% to $80.2 million from $82.6 million, while segment net income increased 4% to $18.3 million during the third quarter, as compared with segment net income of $17.5 million in the prior-year quarter. The decrease in revenue is entirely attributed to the absence of hurricane response revenue in the current-year quarter. Excluding the hurricane response revenue generated in the prior-year quarter, Community-Based Services revenue increased 7%. Total community-based patient transports increased slightly to 10,752 in the current-year quarter from 10,690 in the prior-year quarter. Community-based patient transports for bases open greater than one year (Same-Base Transports) decreased 2% or 171 transports, as compared with the prior-year quarter. Weather cancellations for these same-base locations increased by 220 compared with the prior-year quarter.

The increase in segment net income is attributed to improved net revenue per community-based transport, combined with lower maintenance and fuel expenditures. Net revenue per community-based transport increased 7% to $7,509, compared with $7,047 in the prior-year quarter. Divisional maintenance expense decreased by $1.6 million over the prior-year quarter, reflecting an 18% decrease in cost per flight hour. In addition, fuel expense decreased by $2.1 million over the prior-year quarter, reflecting a 41% decrease per hour flown. The improvement in net revenue per community-based transport is attributed to recent price increases, while reduction in maintenance expenditures is attributed to fleet rejuvenation activities and converting several twin-engine helicopters to more efficient single-engine aircraft. Decrease in fuel expense reflects reduced cost per gallon.

Hospital-Based Services: Revenue from Hospital-Based Services increased by 6% to $51.6 million from $48.6 million, while segment net income increased to $5.3 million in the current-year quarter from $0.4 million during the prior-year third quarter. The increase in segment net income is primarily attributed to decreased maintenance expenses and improved pricing from renewed contracts. Maintenance expense for the quarter decreased by $4.3 million, reflecting a 21% decrease in cost per flight hour. This reduction in expense is attributed to the same factors discussed above within the Community-Based Services segment.

Products Division: Revenue, excluding revenue generated from internal projects, increased to $5.9 million from $2.7 million in the prior-year quarter. Segment net income, excluding internal projects, increased to $1.8 million from $0.7 million in the prior-year quarter.

The Company also provided an update on October 2009 flight volume. Total community-based transports during October 2009 were 3,065 compared with 3,495 during October 2008. Same-Base Transports decreased 489 transports or 15%, while weather cancellations for these same bases increased by 636 transports. Weather cancellations almost doubled as compared with the prior-year month, reflecting very severe weather conditions.

Aaron Todd, Chief Executive Officer, stated, "We are pleased with the continued strength in our financial performance through the third quarter of 2009. Despite more severe weather and the lack of hurricane response activities in the current-year quarter compared with the prior-year quarter, the Company has achieved strong earnings growth. Our cost reduction initiatives continue to improve our operating margins and our fleet rejuvenation and conversion activities will be ongoing throughout future periods. Our strong cash flows from operating activities of $52 million has allowed the Company to repay its line of credit in full, while also providing liquidity to finance aircraft purchases and safety technology upgrades. Although we experienced our most severe weather month of the entire year during October, our Same-Base Transports would have increased by over 4% absent the increase in weather cancellations."

The Company will discuss these results in a conference call scheduled today at 4:15 p.m. Eastern. Interested parties can access the call by dialing (877) 883-0656 (domestic) or (706) 643-8826 (international) or by accessing the web cast at http://www.airmethods.com/. A replay of the call will be available at (800) 642-1687 (domestic) or (706) 645-9291 (international), access number 38313928, for 3 days following the call and the web cast can be accessed at http://www.airmethods.com/ for 30 days.

Air Methods Corporation (http://www.airmethods.com/) is a leader in emergency air medical transportation and medical services. The Hospital-Based Services Division is the largest provider of air medical transport services for hospitals. The Community-Based Services Division is the largest community-based provider of air medical services. The Products Division specializes in the design and manufacture of aeromedical and aerospace technology. The Company's fleet of owned, leased or maintained aircraft features over 300 helicopters and fixed wing aircraft.

Forward Looking Statements: This news release includes certain forward-looking statements, which are subject to various risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors, including but not limited to the size, structure and growth of the Company's air medical services and products markets; the collection rates for patient transports; the continuation and/or renewal of air medical service contracts; the acquisition of profitable Products Division contracts and other flight service operations; the successful expansion of the community-based operations; and other matters set forth in the Company's public filings.

CONTACTS: Aaron D. Todd, Chief Executive Officer, (303) 792-7413 or Trent Carman, Chief Financial Officer, at (303) 792-7591. Please contact Christine Clarke at (303) 792-7579 to be included on the Company's fax and/or mailing list.

---FINANCIAL STATEMENTS ATTACHED--- AIR METHODS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (Amounts in thousands) September 30, December 31, 2009 2008 ------------- ------------ ASSETS ------ Current assets: Cash and cash equivalents $23,181 13,147 Trade receivables, net 126,109 133,467 Other current assets 58,187 61,134 ------ ------ Total current assets 207,477 207,748 Net property and equipment 183,603 146,167 Other assets, net 38,338 41,009 ------ ------ Total assets $429,418 394,924 ======== ======= LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Current liabilities: Notes payable related to assets held for sale $12,531 19,520 Current portion of indebtedness 15,330 15,638 Accounts payable, accrued expenses and other 64,152 56,628 ------ ------ Total current liabilities 92,013 91,786 Long-term indebtedness 88,429 85,858 Other non-current liabilities 56,776 56,816 ------ ------ Total liabilities 237,218 234,460 Total stockholders' equity 192,200 160,464 ------- ------- Total liabilities and stockholders' equity $429,418 394,924 ======== ======= AIR METHODS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share amounts) Three Months Nine Months Ended Ended September 30, September 30, ------------ ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenue: Flight operations $131,723 131,079 370,917 370,298 Product operations 5,879 2,753 19,448 9,592 ----- ----- ------ ----- Total revenue 137,602 133,832 390,365 379,890 ------- ------- ------- ------- Expenses: Operating expenses 96,290 100,141 285,197 290,924 General and administrative 15,978 15,947 48,388 50,671 Gain on disposition of assets, net (239) (1,130) (772) (2,568) Depreciation and amortization 4,758 4,328 13,976 12,628 ----- ----- ------ ------ 116,787 119,286 346,789 351,655 ------- ------- ------- ------- Operating income 20,815 14,546 43,576 28,235 Interest expense (1,285) (1,270) (3,643) (3,943) Other, net 935 928 2,698 2,180 --- --- ----- ----- Income before income taxes 20,465 14,204 42,631 26,472 Income tax expense (7,861) (5,835) (16,387) (10,939) ------ ------ ------- ------- Net income $12,604 8,369 26,244 15,533 ======= ===== ====== ====== Income per common share: Basic $1.02 0.69 2.15 1.28 Diluted $1.01 0.67 2.12 1.23 Weighted average common shares outstanding: Basic 12,337,120 12,179,714 12,218,369 12,170,980 Diluted 12,498,320 12,522,932 12,397,026 12,590,252

Air Methods Corporation

CONTACT: Aaron D. Todd, Chief Executive Officer, +1-303-792-7413, or
Trent Carman, Chief Financial Officer, +1-303-792-7591, or to be included on
the Company's fax and/or mailing list, Christine Clarke, +1-303-792-7579, all
of Air Methods Corporation

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

Arabian American Development Announces Third Quarter 2009 Financial ResultsYear-to-Date 2009 Net Income Increases to $7.3 Million Year over Year

DALLAS, Nov. 5 /PRNewswire-FirstCall/ -- Arabian American Development Co. today announced financial results for the third quarter and nine months ended September 30, 2009.

Financial Highlights -- Sales volume of petrochemical products for the third quarter of 2009 increased approximately 24.3% compared to the same period in 2008. -- Net income for the quarter ended September 30, 2009 was $528,000, or $0.02 per basic and diluted share compared to a net loss of $(6.9) million, or $(0.30) per basic and diluted share for the prior-year period. -- Net income for the nine months ended September 30, 2009 increased to $7.3 million or $0.31 per basic and diluted share, compared to a net loss of $(2.3) million, or $(0.10) per basic and diluted share for the prior-year period, a swing to the positive of $9.7 million. -- Gross profit for the three months ended September 30, 2009, and comparable period in 2008 was $4.3 million and a loss of $(9.1) million, respectively. -- Gross profit for the nine months ended September 30, 2009 and comparable period in 2008 was $19.7 million and $2.6 million, respectively. Operational Highlights -- Reached a binding agreement resolving prior discussions surrounding the Al Masane Al Kobra Mining Company (AMAK) corporate documentation which releases the Company from any future financial obligations and eliminates any further liability to AMAK or the Saudi government. -- Signed a new, one-year contract with an existing customer with headquarters in Mexico. The contract is an increase over the original value of an existing contract based on current market conditions. The Company will deliver an estimated annual volume of approximately 3.6 million U.S. gallons of pentanes. -- Signed a three-year contract with a new customer, a joint venture between a major European petrochemical manufacturer and a Middle Eastern national petrochemical company, to deliver a volume of over five million pounds annually for 100% of the supply of high purity C5's to the joint venture's state-of-the-art polyethylene facility. -- Signed a new contract with an existing customer which is estimated at $11 to $15 million per year over the term of the contract for normal hexane, isohexane and isopentane. The additional volume represents an increase of approximately 40% from the previous contract.

Consolidated revenue for the quarter ended September 30, 2009 decreased 35.8% to $30.6 million, compared to revenue of $47.7 million in the third quarter of 2008 and a 7.2% sequential increase compared to revenue of $28.6 million in the second quarter of 2009. Transloading generated no revenues in the third quarter of 2009 compared to revenues of $7.9 million in the year-ago period. This is due to the expiration in April 2009, and non renewal, of a contract with a transloading customer because the market for diluents used in the oil sands crude production decreased as the price of crude oil fell to comparatively low levels in the later part of 2008. Petrochemical product sales (predominantly C5 and C6 hydrocarbons and related products) represented $29.7 million or 97%, of total revenue for the third quarter of 2009 and $38.8 million, or 81.2% of total revenue, for the third quarter last year. Petrochemical sales were down on a dollar basis in the quarter due to lower prices to customers, however from a volume standpoint, sales increased 24.3% for the quarter. The Company generated $0.9 million in toll processing fees during the third quarter of 2009 compared with $1.1 million for the prior year's third quarter. Toll processing customers are active and remain on long-term contracts.

During the third quarter of 2009, the cost of petrochemical sales and processing (including depreciation) decreased approximately $30.5 million or 53.6% as compared to the same period in 2008. Consequently, total gross profit margin on revenue for the third quarter of 2009 increased approximately $13.4 million or 147.1% as compared to the same period in 2008. The cost of petrochemical product sales and processing and gross profit for the three months ended September 30, 2009 was not impacted by any derivative transactions. The cost of petrochemical product sales and processing and gross profit for the three months ended September 30, 2008 includes an unrealized loss of approximately $17.7 million and a realized gain of approximately $2.4 million for a net loss effect of approximately $15.3 million. Therefore, the increase in gross profit margin for the period was primarily due to the decreased price of feedstock during the quarter.

General and Administrative costs for the third quarter of 2009 increased approximately $825,000 to $2.5 million from $1.7 million as compared to the same period in 2008 due primarily to the expensing of expenditures in Saudi Arabia versus their capitalization in the prior year and increases in consulting fees, property taxes, and travel.

The Company reported net income attributable to Arabian American Development in the third quarter of 2009 of $528,000 or $0.02 per basic and diluted share (based on 23.7 million and 23.8 million weighted average number of shares outstanding, respectively). This compares to a net loss of $(6.9) million, or $(0.30) per basic and diluted share for third quarter of 2008 (based on 23.5 million weighted average number of shares outstanding, respectively).

Nick Carter, President and Chief Executive Officer, commented, "Sales volume was up approximately 24.3% from the year-ago period and demand remained strong for most products through the first nine months of 2009. During the quarter, we signed a number of new contracts, including a new international customer as well as renewal of contracts with existing customers, one of whom increased their volume by 40%. We began to see the volume and financial impact of these contracts reflected in our third quarter results. We are seeing the direct benefits of opening and staffing a marketing office in Europe to better serve customers in the Eastern Hemisphere and for the nine months ended September 30, 2009, we saw international sales volume increase 29.9% over the same period in 2008."

Mr. Carter continued, "Transloading sales for the third quarter of 2009 decreased 100.0% due to the contract expiration of the transloading venture undertaken by the Company in April 2008. As we indicated previously, the contract expired in April 2009 and was not renewed because the market for crude oil fell in the latter part of 2008. This was relatively low margin business and, therefore, we do not anticipate the reduction in revenue from transloading to significantly impact our profitability for the year. In addition, we continue our conversations with certain customers who have approached the Company about a possible contract for the 2010 calendar year, and negotiations are underway to secure other contracts. This business is good if we can make use of existing facilities and manpower in an efficient manner, but it's not a key component of our operation."

Year-to-Date 2009 Financial Results

Consolidated revenue for the nine months ended September 30, 2009 decreased 28.8% to $86.6 million, compared to revenue of $121.6 million in the same period in 2008. Excluding transloading revenues of $4.6 million and $15.9 million generated in the first nine months of the periods ended September 30, 2009, and September 30, 2008, respectively, revenues were $82.0 million, a 22.4% decrease from $105.7 million in the year-ago period. Sales decreased on a dollar basis but saw significantly higher margins given pricing strength and feedstock price declines. Petrochemical sales volume for the nine months increased 13.5%. The Company generated $2.7 million in toll processing fees during the nine months ended September 30, 2009, which is a decrease of 15.0% compared to $3.2 million in the year-ago period.

Total gross profit margin on petrochemical product sales, transloading sales and processing during the first nine months of 2009 increased approximately $17.1 million as compared to the same period in 2008. The cost of petrochemical product sales and processing and gross profit margin for the nine month period ended September 30, 2009, includes an estimated unrealized gain of approximately $17.4 million, a realized loss of $16.3 million for a net gain effect of approximately $1.1 million. The cost of petrochemical product sales and processing and gross profit margin for the nine month period ended September 30, 2008, includes an estimated unrealized loss of approximately $10.1 million, a realized gain of $5.5 million for a net loss effect of approximately $4.6 million.

General and Administrative costs for the first nine months of 2009 increased approximately $303,000 to $6.6 million from $6.3 million the same period in 2008. This increase is primarily attributable increases in consulting fees, property taxes, and travel.

For the first nine months of 2009, net income of Arabian American Development increased to $7.3 million, or $0.31 per basic and diluted share (based on 23.7 million and 23.8 million weighted average shares outstanding, respectively) compared to a net loss of $(2.3) million, or $(0.10) per basic and diluted share (based on 23.4 million weighted average shares outstanding, respectively) for the year-ago period.

The Company completed the quarter with $2.5 million in cash and cash equivalents compared to $2.8 million as of December 31, 2008. Trade receivables increased during the first nine months by $2.2 million to $14.1 million due to increased credit terms being extended to foreign customers. The average collection period remains normal for the business. Inventories increased from December 31, 2008 due to an increase in the volume and price of inventory the Company had on hand at the end of the period. Derivative instruments decreased from a current liability of approximately $8.7 million (primarily crude options) to $1.2 million (primarily interest rate swaps on term debt) due to settlements of instruments during the first nine months of 2009 and changes in fair value of contracts on hand at September 30, 2009.

The Company had $17.7 million in working capital as of September 30, 2009 and ended the quarter with a current ratio of 3.0 to 1. Shareholders' equity increased 16.5 % at September 30, 2009 to $54.9 million from $47.1 million as of December 31, 2008.

The Company finalized an agreement surrounding the Al Masane Al Kobra Mining Company (AMAK) corporate documentation. Under the Agreement, the Company is released from any future financial obligations and will have no further liability to AMAK or the mine property. Further information may be found in the Company's report on Form 8K filed on August 25, 2009, with the Securities and Exchange Commission, which can be reviewed at http://www.sec.gov/.

Nick Carter, President and Chief Executive Officer, Arabian American Development Co., commented, "The increased market prices of copper, gold and silver over the last few months has doubled the projected annual cash flow of the project from the low point of nine months ago. As the price of zinc begins to reflect the improving global economic activity, we expect the projections will really start to reflect the significant long term value of this project. The mill construction is coming along and we anticipate doing ore processing test runs soon after the first of the year. We are looking forward to seeing the project come to fruition."

Teleconference

Management will conduct a conference call and live web cast at 4:30 p.m. Eastern Time, on Thursday, November 5, 2009. Anyone interested in participating should call 877-941-1430 if calling within the United States or 480-629-9667 if calling internationally. There will be a playback available until November 12, 2009. To listen to the playback, please call 800-406-7325 if calling within the United States or 303-590-3030 if calling internationally. Please use pin number 4179611 for the replay. A link to a simultaneous webcast of the teleconference will be available at http://www.arabianamericandev.com/ through Windows Media Player or RealPlayer. A replay of the call will also be available through the same link.

About Arabian American Development Company (ARSD)

ARSD owns and operates a petrochemical facility located in southeast Texas just north of Beaumont which specializes in high purity petrochemical solvents and other solvent type manufacturing. The Company is also the original developer and an equity investor in a Saudi Arabian joint stock company involving a mining project in the Al-Masane area of Saudi Arabia which is currently under construction. The mine is scheduled to be in production in late 2010 and will produce economic quantities of zinc, copper, gold, and silver.

Safe Harbor

Statements in this release that are not historical facts are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon management's belief as well as assumptions made by and information currently available to management. Because such statements are based upon expectations as to future economic performance and are not statements of fact, actual results may differ from those projected. These risks, as well as others, are discussed in greater detail in Arabian American's filings with the Securities and Exchange Commission, including Arabian American's Annual Report on Form 10-K for the year ended December 31, 2008 and the Company's subsequent Quarterly Reports on Form 10-Q.

Tables follow ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, DECEMBER 31, 2009 2008 ---- ---- (unaudited) ASSETS ------ Current Assets Cash and cash equivalents $2,469,926 $2,759,236 Trade Receivables, net of allowance for doubtful accounts of $126,000 and $500,000, respectively 14,090,220 11,904,026 Current portion of notes receivable, net of discount of $22,104 and $53,628, respectively 468,109 528,549 Derivative instrument deposits -- 3,950,000 Prepaid expenses and other assets 781,801 799,342 Inventories 3,787,904 2,446,200 Deferred income taxes 1,903,122 8,785,043 Income taxes receivable 3,000,000 429,626 --------- ------- Total current assets 26,501,082 31,602,022 Property, Pipeline and Equipment 50,303,714 47,184,865 Less: Accumulated Depreciation (17,067,622) (14,649,791) ------------ ------------ Net Property, Pipeline and Equipment 33,236,092 32,535,074 Investment in AMAK 33,002,407 33,002,407 Mineral Properties in the United States 605,848 588,311 Notes Receivable, net of discount of $4,345 and $16,793, respectively, net of current portion 52,177 407,388 Other Assets 10,938 10,938 ------ ------ TOTAL ASSETS $93,408,544 $98,146,140 =========== =========== LIABILITIES ----------- Current Liabilities Accounts payable $2,436,628 $6,069,851 Accrued interest 126,342 147,461 Derivative instruments 1,167,085 8,673,311 Accrued liabilities 1,556,584 1,029,690 Accrued liabilities in Saudi Arabia 1,075,749 1,429,156 Notes payable 12,000 12,000 Current portion of post retirement benefit 83,202 -- Current portion of long-term debt 1,724,860 4,920,442 Current portion of other liabilities 618,505 544,340 ------- ------- Total current liabilities 8,800,955 22,826,251 Long-Term Debt, net of current portion 23,964,627 23,557,294 Post Retirement Benefit, net of current portion 808,815 823,500 Other Liabilities, net of current portion 692,719 446,035 Deferred Income Taxes 4,210,581 3,356,968 --------- --------- Total liabilities 38,477,697 51,010,048 ---------- ---------- EQUITY ------ Common Stock-authorized 40,000,000 shares of $.10 par value; issued and outstanding, 23,433,995 and 23,421,995 shares in 2009 and 2008, respectively 2,343,399 2,342,199 Additional Paid-in Capital 41,511,024 41,325,207 Accumulated Other Comprehensive Loss (763,014) (1,120,072) Retained Earnings 11,564,508 4,299,535 ---------- --------- Total Arabian American Development Company Stockholders' Equity 54,655,917 46,846,869 Noncontrolling Interest 274,930 289,223 ------- ------- Total equity 54,930,847 47,136,092 ---------- ---------- TOTAL LIABILITIES AND EQUITY $93,408,544 $98,146,140 =========== =========== ARABIAN AMERICAN DEVELOPMENT COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- REVENUES Petrochemical Product Sales $29,741,240 $38,784,278 $79,280,937 $102,444,163 Transloading Sales -- 7,890,773 4,624,681 15,935,628 Processing Fees 906,848 1,066,919 2,724,801 3,207,402 ------- --------- --------- --------- 30,648,088 47,741,970 86,630,419 121,587,193 OPERATING COSTS AND EXPENSES Cost of Petrochemical Product Sales and Processing (including depreciation of $556,281, $260,543, $1,671,957, and $746,348, respectively) 26,354,402 56,851,844 66,948,640 118,973,330 ---------- ---------- ---------- ----------- GROSS PROFIT (LOSS) 4,293,686 (9,109,874) 19,681,779 2,613,863 GENERAL AND ADMINISTRATIVE EXPENSES General and Administrative 2,480,340 1,655,790 6,581,643 6,278,770 Depreciation 107,397 82,534 328,739 237,591 ------- ------ ------- ------- 2,587,737 1,738,324 6,910,382 6,516,361 --------- --------- --------- --------- OPERATING INCOME (LOSS) 1,705,949 (10,848,198) 12,771,397 (3,902,498) OTHER INCOME (EXPENSE) Interest Income 12,141 56,628 53,976 164,731 Interest Expense (324,449) (109,368) (970,857) (199,675) Miscellaneous Income (Expense) 65,176 (2,757) (17,293) 42,109 ------ ------- -------- ------ (247,132) (55,497) (934,174) 7,165 --------- -------- --------- ----- INCOME (LOSS) BEFORE INCOME TAXES 1,458,817 (10,903,695) 11,837,223 (3,895,333) INCOME TAXES 934,246 (3,969,245) 4,586,543 (1,534,230) ------- ----------- --------- ----------- NET INCOME (LOSS) 524,571 (6,934,450) 7,250,680 (2,361,103) NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST 3,557 3,388 14,293 18,043 ----- ----- ------ ------ NET INCOME (LOSS) ATTRIBUTABLE TO ARABIAN AMERICAN DEVELOPMENT COMPANY $528,128 $(6,931,062) $7,264,973 $(2,343,060) ======== ============ ========== =========== Basic Earnings (Loss) per Common Share Net Income (Loss) attributable to Arabian American Development Company $0.02 $(0.30) $0.31 $(0.10) Basic Weighted Average Number of Common Shares Outstanding 23,733,995 23,471,995 23,725,995 23,354,193 ========== ========== ========== ========== Diluted Earnings (Loss) per Common Share Net Income (Loss) attributable to Arabian American Development Company $0.02 $(0.30) $0.31 $(0.10) Diluted Weighted Average Number of Common Shares Outstanding 23,753,535 23,471,995 23,822,601 23,354,193 ========== ========== ========== ========== Company Contact: Nick Carter, President and Chief Executive Officer (409) 385-8300 ncarter@southhamptonr.com Investor Contact: Cameron Donahue, Partner Hayden IR (651) 653-1854 Cameron@haydenir.com

Arabian American Development Co.

CONTACT: Nick Carter, President and Chief Executive Officer of Arabian
American Development Co., +1-409-385-8300, ncarter@southhamptonr.com; or
Investors, Cameron Donahue, Partner of Hayden IR, +1-651-653-1854,
Cameron@haydenir.com, for Arabian American Development Co.

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

EZCORP's Net Income Increases 31%

AUSTIN, Texas, Nov. 5 /PRNewswire-FirstCall/ -- EZCORP, Inc. announced today results for its fourth fiscal quarter and 2009 fiscal year ended September 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090713/EZCORPLOGO)

EZCORP's net income for the quarter ended September 30, 2009 increased 31% to $20.9 million ($0.42 per share) compared to $16.0 million ($0.37 per share) for the prior year quarter. Total revenues for the quarter increased 34% to $164.8 million, primarily from a 43% increase in total sales (merchandise and jewelry scrapping) and a 39% increase in pawn service charges. Operating income improved 64% to $30.3 million (31% of net revenue) compared to $18.5 million (25% of net revenue) in the prior year quarter.

For the twelve months ended September 30, 2009, net income increased 31% to $68.5 million ($1.42 per share) compared to $52.4 million ($1.21 per share) for the prior year. Total revenues grew 31% to $597.5 million while operating income increased 38% to $101.5 million.

Acquisitions completed in November and December 2008 contributed net income of $4.2 million and $10.7 million in the current quarter and fiscal year. After the effect of shares issued, the acquisitions contributed approximately $0.04 and $0.11 per share in the current quarter and fiscal year.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, "This is our 29th consecutive quarter and ninth consecutive year of earnings growth. We continue to deliver strong operating results with a strong balance sheet even in this tough economic environment. These results clearly demonstrate the value of our strategy to build earning assets through the pursuit of quality acquisitions, new store openings, and leveraging our store base through the introduction of new loan products."

Rotunda continued, "We expect fiscal 2010 earnings of $1.65 to $1.69 per share, with $0.41 to $0.43 per share for the December quarter, representing earnings growth of approximately 18% and 27%. This includes the expected accretion from our $49 million strategic investment in Cash Converters completed earlier today. In fiscal 2010, we plan to open 40 to 50 Empeno Facil pawn locations in Mexico, 35 to 45 Cash-Max payday loan locations in Canada, and 6 pawnshops in the United States."

EZCORP provides loans or credit services to customers who do not have cash resources or access to credit to meet their short-term cash needs. In its pawnshops, the Company offers non-recourse loans collateralized by tangible personal property, commonly known as pawn loans. At these locations, the Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. The Company also offers a variety of short-term consumer loans, including payday loans, installment loans and auto title loans, or fee-based credit services to customers seeking loans from unaffiliated lenders.

At September 30, 2009, EZCORP operated a total of 910 locations in the U.S., Mexico and Canada consisting of 369 U.S. pawnshops, 62 Mexico pawnshops, 477 U.S. short-term loan stores and 2 Canada short-term loan stores. The Company also has strategic investments in Albemarle & Bond Holdings PLC, one of the U.K.'s largest pawnbroking businesses with 115 stores, and Cash Converters International Ltd., an operator and franchisor of approximately 500 locations worldwide.

This announcement contains certain forward-looking statements regarding the Company's expected operating and financial performance for future periods, including new store expansion, anticipated benefits of acquisitions and investments and expected future earnings. These statements are based on the Company's current expectations. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including changing market conditions in the overall economy and the industry, consumer demand for the Company's services and merchandise, actions of third parties who offer services and products in the Company's locations and changes in the regulatory environment. For a discussion of these and other factors affecting the Company's business and prospects, see the Company's annual, quarterly and other reports filed with the Securities and Exchange Commission.

You are invited to listen to a conference call discussing these results on November 5, 2009 at 3:30pm Central Time. The conference call can be accessed over the Internet or replayed at your convenience at the following address.

http://www.videonewswire.com/event.asp?id=63071 For additional information, contact Dan Tonissen at (512) 314-2289. EZCORP, Inc. Highlights of Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) ------------------------------------- Three Months Ended September 30, ---------------- 2009 2008 ---- ---- 1 Revenues: 2 Merchandise sales $48,381 $34,926 3 Jewelry scrapping sales 40,313 27,162 4 Pawn service charges 37,392 26,860 5 Signature loan fees 34,935 33,561 6 Auto title loan fees 1,923 - 7 Other 1,857 893 ----- --- 8 Total revenues 164,801 123,402 9 Cost of goods sold: 10 Cost of merchandise sales 30,216 20,490 11 Cost of jewelry scrapping sales 25,557 17,180 ------ ------ 12 Total cost of goods sold 55,773 37,670 13 Bad debt: 14 Signature loan bad debt 10,379 12,303 15 Auto title loan bad debt 227 - --- --- 16 Total bad debt 10,606 12,303 ------ ------ 17 Net revenue 98,422 73,429 18 19 Operations expense 54,282 41,619 20 Administrative expense 10,605 9,533 21 Depreciation and amortization 3,275 3,327 22 (Gain) / Loss on sale/disposal of assets (57) 412 --- --- 23 Operating income 30,317 18,538 24 25 Interest income (24) (118) 26 Interest expense 361 192 27 Equity in net income of unconsolidated affiliate (1,853) (1,180) 28 Other - (3) --- --- 29 Income before income taxes 31,833 19,647 30 Income tax expense 10,894 3,616 ------ ----- 31 Net income $20,939 $16,031 ======= ======= 32 ----- ----- 33 Net income per share, diluted $0.42 $0.37 ===== ===== 34 35 Weighted average shares, diluted 49,287 43,468 EZCORP, Inc. Highlights of Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) ------------------------------------- Year Ended September 30, -------------- 2009 2008 ---- ---- 1 Revenues: 2 Merchandise sales $204,674 $155,828 3 Jewelry scrapping sales 118,922 76,732 4 Pawn service charges 130,169 94,244 5 Signature loan fees 133,344 128,478 6 Auto title loan fees 3,589 - 7 Other 6,758 2,121 ----- ----- 8 Total revenues 597,456 457,403 9 Cost of goods sold: 10 Cost of merchandise sales 126,564 92,612 11 Cost of jewelry scrapping sales 77,025 46,790 ------ ------ 12 Total cost of goods sold 203,589 139,402 13 Bad debt: 14 Signature loan bad debt 33,553 37,150 15 Auto title loan bad debt 380 - --- --- 16 Total bad debt 33,933 37,150 ------ ------ 17 Net revenue 359,934 280,851 18 19 Operations expense 206,237 158,927 20 Administrative expense 40,497 34,951 21 Depreciation and amortization 12,746 12,354 22 (Gain) / Loss on sale/disposal of assets (1,024) 939 ------ --- 23 Operating income 101,478 73,680 24 25 Interest income (281) (477) 26 Interest expense 1,425 420 27 Equity in net income of unconsolidated affiliate (5,016) (4,342) 28 Other 38 8 --- --- 29 Income before income taxes 105,312 78,071 30 Income tax expense 36,840 25,642 ------ ------ 31 Net income $68,472 $52,429 ======= ======= 32 ----- ----- 33 Net income per share, diluted $1.42 $1.21 ===== ===== 34 35 Weighted average shares, diluted 48,076 43,327 EZCORP, Inc. Highlights of Consolidated Balance Sheets (Unaudited) (in thousands, except per share data and store counts) ------------------------------------------------------ As of September 30, 2009 2008 ---- ---- 1 Assets: 2 Current assets: 3 Cash and cash equivalents $44,764 $27,444 4 Pawn loans 101,684 75,936 5 Signature loans, net 8,357 7,124 6 Pawn service charges receivable, net 18,187 12,755 7 Auto title loans, net 1,663 1 8 Auto title loan finance charges receivable, net 529 - 9 Signature loan fees receivable, net 5,599 5,406 10 Inventory, net 64,001 43,209 11 Deferred tax asset 15,670 10,926 12 Prepaid expenses and other assets 16,927 9,115 ------ ----- 13 Total current assets 277,381 191,916 14 15 Investment in unconsolidated affiliate 38,851 38,439 16 Property and equipment, net 51,154 40,079 17 Deferred tax asset, non-current 6,311 8,139 18 Goodwill 100,719 24,376 19 Other assets, net 18,101 5,771 ------ ----- 20 Total assets $492,517 $308,720 ======== ======== 21 Liabilities and stockholders' equity: 22 Current liabilities: 23 Current maturities of long-term debt $10,000 $- 24 Accounts payable and other accrued expenses 33,838 29,425 25 Customer layaway deposits 4,175 2,327 26 Federal income taxes payable 572 246 --- --- 27 Total current liabilities 48,585 31,998 28 29 Long-term debt, less current maturities 25,000 - 30 Deferred gains and other long-term liabilities 3,247 3,672 31 Total stockholders' equity 415,685 273,050 ------- ------- 32 Total liabilities and stockholders' equity $492,517 $308,720 ======== ======== 33 34 Pawn loan balance per ending pawn store $236 $229 35 Inventory per ending pawn store $148 $130 36 Book value per share $8.54 $6.58 37 Tangible book value per share $6.14 $5.89 38 Pawn store count - end of period 431 332 39 Signature loan store count - end of period 479 477 40 Shares outstanding - end of period 48,703 41,525 EZCORP, Inc. Operating Segment Results (Unaudited) (in thousands, except store counts) Three months ended U.S. Pawn Empeno EZMONEY September 30, 2009: Operations Facil Operations Consolidated ---------- ----- ---------- ------------ 1 Revenues: 2 Sales $85,554 $3,131 $9 $88,694 3 Pawn service charges 35,838 1,554 - 37,392 4 Signature loan fees 527 - 34,408 34,935 5 Auto title loan fees 322 - 1,601 1,923 6 Other 1,780 77 - 1,857 ----- --- --- ----- 7 Total revenues 124,021 4,762 36,018 164,801 8 9 Cost of goods sold 53,747 2,020 6 55,773 10 Signature loan bad debt 247 - 10,132 10,379 11 Auto title loan bad debt 52 - 175 227 --- --- --- --- 12 Net revenues 69,975 2,742 25,705 98,422 13 14 Operations expense 37,761 1,809 14,712 54,282 ------ ----- ------ ------ 15 Store operating income $32,214 $933 $10,993 $44,140 ======= ==== ======= ======= 16 17 Pawn store count - end of period 369 62 - 431 18 Signature loan store count - end of period 6 - 473 479 19 20 Three months ended September 30, 2008: 21 Revenues: 22 Sales $60,001 $2,087 $- $62,088 23 Pawn service charges 25,343 1,517 - 26,860 24 Signature loan fees 651 - 32,910 33,561 25 Auto title loan fees - - - - 26 Other 893 - - 893 --- --- --- --- 27 Total revenues 86,888 3,604 32,910 123,402 28 29 Cost of goods sold 36,289 1,381 - 37,670 30 Signature loan bad debt 367 - 11,936 12,303 31 Auto title loan bad debt - - - - --- --- --- --- 32 Net revenues 50,232 2,223 20,974 73,429 33 34 Operations expense 25,753 1,328 14,538 41,619 ------ ----- ------ ------ 35 Store operating income $24,479 $895 $6,436 $31,810 ======= ==== ====== ======= 36 37 Pawn store count - end of period 294 38 - 332 38 Signature loan store count - end of period 6 - 471 477 EZCORP, Inc. Operating Segment Results (Unaudited) (in thousands, except store counts) Year ended U.S. Pawn Empeno EZMONEY September 30, 2009: Operations Facil Operations Consolidated ---------- ----- ---------- ------------ 1 Revenues: 2 Sales $313,048 $10,539 $9 $323,596 3 Pawn service charges 124,396 5,773 - 130,169 4 Signature loan fees 2,293 - 131,051 133,344 5 Auto title loan fees 1,313 - 2,276 3,589 6 Other 6,646 112 - 6,758 ----- --- --- ----- 7 Total revenues 447,696 16,424 133,336 597,456 8 9 Cost of goods sold 196,914 6,669 6 203,589 10 Signature loan bad debt 828 - 32,725 33,553 11 Auto title loan bad debt 124 - 256 380 --- --- --- --- 12 Net revenues 249,830 9,755 100,349 359,934 13 14 Operations expense 140,525 5,833 59,879 206,237 ------- ----- ------ ------- 15 Store operating income $109,305 $3,922 $40,470 $153,697 ======== ====== ======= ======== 16 17 Pawn store count - end of period 369 62 - 431 18 Signature loan store count - end of period 6 - 473 479 19 20 Year ended September 30, 2008: 21 Revenues: 22 Sales $225,747 $6,813 $- $232,560 23 Pawn service charges 89,431 4,813 - 94,244 24 Signature loan fees 2,782 - 125,696 128,478 25 Auto title loan fees - - - - 26 Other 2,116 5 - 2,121 ----- --- --- ----- 27 Total revenues 320,076 11,631 125,696 457,403 28 29 Cost of goods sold 135,142 4,260 - 139,402 30 Signature loan bad debt 1,108 - 36,042 37,150 31 Auto title loan bad debt - - - - --- --- --- --- 32 Net revenues 183,826 7,371 89,654 280,851 33 34 Operations expense 98,581 4,141 56,205 158,927 ------ ----- ------ ------- 35 Store operating income $85,245 $3,230 $33,449 $121,924 ======= ====== ======= ======== 36 37 Pawn store count - end of period 294 38 - 332 38 Signature loan store count - end of period 6 - 471 477

Photo: http://www.newscom.com/cgi-bin/prnh/20090713/EZCORPLOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com EZCORP, Inc.

CONTACT: Dan Tonissen of EZCORP, Inc., +1-512-314-2289

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

ThermoGenesis Reports 15 Percent Increase in First Quarter Revenues; Improved Bottom Line

RANCHO CORDOVA, Calif., Nov. 5 /PRNewswire-FirstCall/ -- ThermoGenesis Corp. , a leading supplier of innovative products for processing and storing adult stem cells, today reported results for the first quarter of fiscal 2010.

For the quarter ended September 30, 2009, the Company reported revenues of $5.2 million, a 15 percent increase over revenues of $4.5 million in the first quarter a year ago. The Company said the key contributors to the growth in revenues included an increase of approximately $0.5 million, or 40%, in sales of AXP(TM) AutoXpress(TM) (AXP(TM)) disposables over the prior year quarter and new product sales of the MarrowXpress(TM) (MXP(TM)) and Res-Q(TM)60 BMC (Res-Q) Systems.

Total disposable revenues in the first quarter of fiscal 2010 increased over 40% to $3.0 million versus $2.1 million in the first quarter of fiscal 2009.

The Company reported an 18% reduction in its net loss to $2.2 million, or $0.04 per share, in the first quarter of fiscal 2010, versus a net loss of $2.7 million, or $0.05 per share, in the same period of fiscal 2009. ThermoGenesis ended the first quarter of fiscal 2010 with $13.1 million in cash and short-term investments, compared with $15.6 million at the end of fiscal 2009.

"We are pleased with the direction of the leading indicators of our quarterly performance, including revenue growth, an improved bottom line and the success of our new products, the MXP and Res-Q Systems, in generating promising new revenues," noted J. Melville Engle, Chief Executive Officer of ThermoGenesis. "We are now on track to turning this business around and I remain optimistic we will achieve break even in the third quarter and profitability in the fourth quarter of fiscal 2010."

"We are particularly encouraged by the initial market experience of the MXP and Res-Q as they have been able to deliver high stem cell yields on a consistent basis. In addition, we have continued to enhance our quality control efforts and strengthen the management team. Our most recent additions include Jorge Artiles as Vice President, Chief Quality and Regulatory Affairs Officer, and Hal Baker as Vice President Commercial Operations. Both of these executives bring extensive major company experience and significant expertise to ThermoGenesis and will play important roles in our product quality and market expansion initiatives," he added.

Company's Conference Call and Webcast

Management will host a conference call today at 2:00 PM Pacific (5:00 PM Eastern) to review the fiscal first quarter financial results.

The call can be accessed by dialing 1-800-860-2442 within the U.S. or 1-412-858-4600 outside the U.S. and referencing, "ThermoGenesis." Mr. J. Melville Engle, Chief Executive Officer and Mr. Matthew T. Plavan, Executive Vice President, Chief Operating Officer and Chief Financial Officer will host the call to discuss the first quarter results and other corporate events, followed by a Q&A session. Participants are asked to call the assigned number approximately 5 minutes before the conference call begins.

To listen to the audio webcast of the call during or after the event, please visit: http://www.thermogenesis.com/investors-webcasts-and-calls.aspx.

Replay

A replay of the conference call will be available two hours after the call for the following five business days by dialing 1-877-344-7529 within the U.S. or 1-412-317-0088 outside the U.S. and entering the following account number when prompted '385107'.

Financial Statements ThermoGenesis Corp. Condensed Consolidated Balance Sheets (Unaudited) September 30, June 30, 2009 2009 ----------- ----------- ASSETS Current assets: Cash and cash equivalents $2,743,000 $6,655,000 Short term investments 10,377,000 8,976,000 Accounts receivable, net 4,463,000 4,235,000 Inventories 5,290,000 5,233,000 Other current assets 403,000 662,000 ----------- ----------- Total current assets 23,276,000 25,761,000 Equipment, net 1,903,000 1,784,000 Other assets 108,000 110,000 ----------- ----------- $25,287,000 $27,655,000 =========== =========== Current liabilities: Accounts payable $1,567,000 $1,781,000 Other current liabilities 3,075,000 3,057,000 ----------- ----------- Total current liabilities 4,642,000 4,838,000 Long-term liabilities 218,000 363,000 Stockholders' equity 20,427,000 22,454,000 ----------- ----------- $25,287,000 $27,655,000 =========== =========== ThermoGenesis Corp. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended September 30, 2009 2008 ----------- ----------- Product and other revenues $5,193,000 $4,502,000 Cost of product and other revenues 3,636,000 3,222,000 ----------- ----------- Gross profit 1,557,000 1,280,000 Expenses: Selling, general and administrative 2,163,000 2,447,000 Research and development 1,594,000 1,600,000 ----------- ----------- Total operating expenses 3,757,000 4,047,000 Interest and other income, net 11,000 88,000 Net loss ($2,189,000) ($2,679,000) =========== =========== Per share data: Basic and diluted net loss per common share ($0.04) ($0.05) =========== =========== Shares used in computing per share data 56,092,960 56,027,960 =========== =========== ThermoGenesis Corp. Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended, September 30, 2009 2008 ----------- ----------- Cash flows from operating activities: Net loss ($2,189,000) ($2,679,000) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 111,000 120,000 Stock based compensation expense 162,000 123,000 Loss on impairment of equipment 26,000 -- Accretion of discount on short-term investments (1,000) (76,000) Net change in operating assets and liabilities: Accounts receivable, net (228,000) 1,800,000 Inventories (57,000) (856,000) Prepaid expenses and other current assets 259,000 1,000 Other assets 2,000 6,000 Accounts payable (214,000) (1,555,000) Accrued payroll and related expenses (209,000) (149,000) Deferred revenue (154,000) (240,000) Other current liabilities 237,000 569,000 ----------- ----------- Net cash used in operating activities (2,255,000) (2,936,000) ----------- ----------- Cash flows from investing activities: Capital expenditures (256,000) (105,000) Purchase of investments (1,499,000) (3,982,000) Maturities of investments 99,000 9,000,000 ----------- ----------- Net cash (used in) provided by investing activities (1,656,000) 4,913,000 ----------- ----------- Cash flows from financing activities: Payments on capital lease obligations (1,000) (3,000) ----------- ----------- Net cash used in financing activities (1,000) (3,000) ----------- ----------- Net (decrease) increase in cash and cash equivalents (3,912,000) 1,974,000 Cash and cash equivalents at beginning of period 6,655,000 4,384,000 ----------- ----------- Cash and cash equivalents at end of period $2,743,000 $6,358,000 =========== =========== About ThermoGenesis Corp.

ThermoGenesis Corp. (http://www.thermogenesis.com/) is a leader in developing and manufacturing automated blood processing systems and disposable products that enable the manufacture, preservation and delivery of cell and tissue therapy products. These products include:

-- The BioArchive® System, an automated cryogenic device, is used by cord blood stem cell banks in more than 25 countries for cryopreserving and archiving cord blood stem cell units for transplant. -- AXP® AutoXpress(TM) Platform (AXP), a proprietary family of automated devices that includes the AXP and the MXP(TM) MarrowXpress and companion sterile blood processing disposables for harvesting stem cells in closed systems. The AXP device is used for the processing of cord blood. GE Healthcare is the exclusive global distribution partner for the AXP cord blood product except for Central and South America, China (except Hong Kong), Russia/CIS and Japan, where ThermoGenesis markets through independent distributors. The MXP is used for isolating stem cells from bone marrow. -- The Res-Q(TM) 60 BMC (Res-Q), a point of care system that is designed for bone marrow stem cell processing. This product was launched in July 2009. -- The CryoSeal® FS System, an automated device and companion sterile blood processing disposable, is used to prepare fibrin sealants from plasma in about an hour. The CryoSeal FS System is approved in the U.S. for liver resection surgeries. The CryoSeal FS System has received the CE-Mark which allows sales of the product throughout the European community. Asahi Medical is the exclusive distributor for the CryoSeal System in Japan and the Company markets through independent distributors in Europe and South America.

This press release contains forward-looking statements, and such statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual outcomes to differ materially from those contemplated by the forward-looking statements. Several factors, including timing of FDA approvals, changes in customer forecasts, our failure to meet customers' purchase order and quality requirements, supply shortages, production delays, changes in the markets for customers' products, introduction timing and acceptance of our new products scheduled for fiscal years 2010, and introduction of competitive products and other factors beyond our control, could result in a materially different revenue outcome and/or in our failure to achieve the revenue levels we expect for fiscal 2010. A more complete description of these and other risks that could cause actual events to differ from the outcomes predicted by our forward-looking statements is set forth under the caption "Risk Factors" in our annual report on Form 10-K and other reports we file with the Securities and Exchange Commission from time to time, and you should consider each of those factors when evaluating the forward-looking statements.

ThermoGenesis Corp. Web site: http://www.thermogenesis.com/ Contact: Investor Relations +1-916-858-5107, or ir@thermogenesis.com

ThermoGenesis Corp.

CONTACT: Investor Relations of ThermoGenesis Corp., +1-916-858-5107,
ir@thermogenesis.com

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

InterMune Reports Third Quarter 2009 Financial Results and Business Highlights

BRISBANE, Calif., Nov. 5 /PRNewswire-FirstCall/ -- InterMune, Inc. today announced results from operations for the third quarter and nine months ended September 30, 2009. InterMune reported a net loss for the third quarter of 2009 of $8.8 million, or $0.19 per share, compared with a net loss of $14.0 million, or $0.36 per share, in the third quarter of 2008.

Dan Welch, Chairman, Chief Executive Officer and President of InterMune, said, "The third quarter and recent weeks have been a period of exceptional progress and accomplishment for InterMune. As announced yesterday, we submitted our New Drug Application (NDA) for pirfenidone, the first NDA ever submitted for a medicine for patients who suffer from idiopathic pulmonary fibrosis (IPF). We also made excellent progress on our hepatitis C virus (HCV) protease inhibitor ITMN-191 (RG7227) including the initiation of our Phase 2b clinical study and the presentation of the promising results of our novel clinical study of two direct antiviral agents, INFORM-1, at the AASLD meeting earlier this week." Mr. Welch continued, "Our efforts are now focused on the submission of the MAA for pirfenidone, the support of the NDA and the work to be prepared to bring pirfenidone to patients, should our NDA and/or MAA be granted approval by the regulatory authorities in the United States and Europe, respectively."

Results for the Three Months Ended September 30, 2009

InterMune reported total revenue in the third quarter of 2009 of $27.3 million, compared with total revenue of $23.3 million in the third quarter of 2008. Total revenue in the third quarter of 2009 primarily consisted of revenue from the collaboration with Roche for the development of protease inhibitors, including ITMN-191, which totaled $20.8 million in the third quarter of 2009, compared with $15.8 million in the third quarter of 2008. Third quarter 2009 collaboration revenue included a $20.0 million milestone payment from Roche associated with initiation of the Phase 2b clinical trial of ITMN-191 in patients chronically infected with HCV. Collaboration revenue in the third quarter a year earlier included a $15.0 million development milestone payment from Roche.

InterMune reported Actimmune® (interferon gamma-1b) revenue in the third quarter of 2009 of $6.5 million, compared with $7.5 million in the same quarter of 2008, a decrease of approximately 15 percent, reflecting lower off-label physician prescriptions of Actimmune for the treatment of IPF, which InterMune does not promote.

Research and development (R&D) expenses in the third quarter of 2009 were $20.6 million compared with $25.6 million in the third quarter of 2008, a decrease of approximately 20 percent, reflecting completion of the CAPACITY clinical trials in early 2009, partially offset by expenses associated with the RECAP extension study and the preparation of the NDA and MAA for pirfenidone. General and administrative (G&A) expenses were $9.9 million in the third quarter of 2009, compared with $8.2 million in the same period a year earlier, an increase of approximately 20 percent, primarily attributed to costs related to preparation for the potential commercialization of pirfenidone, which is subject to regulatory approvals.

InterMune recorded a non-cash loss on extinguishment of debt of $0.7 million in the third quarter of 2009 in connection with the September 2009 exchange of approximately $3.8 million of its 0.25% Convertible Senior Notes due 2011 held by certain of its debt holders for shares of the company's common stock. A total of approximately 250,000 shares of common stock were issued in connection with the transaction.

As of September 30, 2009, InterMune had cash, cash equivalents and available-for-sale securities of approximately $139.7 million, compared with $154.7 million as of December 31, 2008.

Results for the Nine Months Ended September 30, 2009

InterMune also reported results from operations for the nine months ended September 30, 2009. The net loss for the period was $87.4 million, or $2.00 per share, compared with a net loss of $72.7 million, or $1.87 per share, in the first nine months of 2008.

Total revenue in the first nine months of 2009 was $42.1 million, compared with total revenue of $40.8 million in the same period of 2008, an increase of 3 percent. Actimmune revenue totaled $19.6 million in the first nine months of 2009, compared with $23.3 million of Actimmune revenue in the first nine months of 2008, a decrease of approximately 16 percent, reflecting lower off-label sales of Actimmune for the treatment of IPF, which InterMune does not promote. Revenue from the collaboration with Roche was $22.5 million in the first nine months of 2009, compared with $17.5 million in the same period of 2008. Collaboration revenue in the first nine months of 2009 included a $20.0 million milestone payment from Roche in connection with the start of the Phase 2b clinical trial program of ITMN-191, which was initiated in August. Collaboration revenue in the first nine months of 2008 included a $15.0 million development milestone payment received in the third quarter of 2008.

R&D expenses were $68.0 million in the first nine months of 2009, a 13 percent decrease compared to $78.0 million in the same period of 2008. This decrease in R&D expenses was primarily due to the completion of the Phase 3 CAPACITY program in early 2009, partially offset by increased expenses associated with: the RECAP pirfenidone study, the INFORM-1 and Phase 2b studies with ITMN-191 and the preparation of the NDA and MAA for pirfenidone. G&A expenses of $26.9 million in the first nine months of 2009 were approximately 19 percent higher than $22.7 million in the first nine months of 2008, primarily reflecting costs related to preparation for the potential commercialization of pirfenidone, which is subject to regulatory approvals. Expenses in the first nine months of 2009 included a milestone payment of $13.5 million for pirfenidone made to Marnac/KDL in accordance with the pirfenidone purchase agreement and InterMune's decision to submit NDA and MAA filings for pirfenidone.

On January 1, 2009, the company adopted guidance in the Debt Topic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"), formerly FASB Staff Position APB 14-1, "Accounting for Convertible Debt Instruments That May Be Settled In Cash Upon Conversion (Including Partial Cash Settlement)," and recorded additional interest expense for the third quarter of 2009 of $1.0 million and $3.7 million for the first nine months of 2009. This guidance requires retrospective application upon adoption; therefore, net losses attributable to InterMune for the third quarter and first nine months of 2008 have been adjusted from those which were previously reported to reflect additional interest expense of $1.5 million and $6.0 million, respectively.

Clinical Development Highlights - Third Quarter and Recent Events Pirfenidone: -- On November 4, InterMune announced that it had submitted an electronic NDA with the U.S. Food and Drug Administration (FDA) seeking approval to market pirfenidone for the treatment of patients with IPF. Pirfenidone has been granted both "Fast Track" and Orphan Drug designations by the FDA. -- An oral presentation focused on the safety profile of pirfenidone was presented at the European Respiratory Society (ERS) Annual Congress in Vienna, Austria on September 14. Safety data from four clinical studies -- CAPACITY 1, CAPACITY 2, RECAP and a long-term open-label study -- showed that treatment with pirfenidone was safe and generally well tolerated. ITMN-191 (RG7227) -- On November 3, results of INFORM-1 were presented at the meeting of the American Association for the Study of the Liver (AASLD). INFORM-1 is a Phase 1 study of two direct-acting antiviral (DAA) compounds administered without interferon or ribavirin for the treatment of patients chronically infected with HCV. The study combined the oral NS3 protease inhibitor ITMN-191 and the oral nucleoside analog polymerase inhibitor RG7128. The results announced at AASLD focused on the recently completed final three cohorts of INFORM-1, consisting of higher-dose, twice-daily regimens: -- The full dose combination of RG7128 1000mg and RG7227 900mg administered twice-daily without pegylated interferon or ribavirin for 13 days resulted in 88% of HCV-positive treatment-naive patients achieving HCV RNA below the lower limit of quantification (LLOQ; <43 IU/mL), and 63% of patients having HCV RNA below the lower limit of detection (LLOD; <15 IU/mL). -- The same regimen in "null responders" resulted in 50% of patients with HCV RNA below LLOQ and 25% of patients with HCV RNA below LLOD. -- No treatment-emergent resistance to RG7227 or RG7128 was observed in the study. -- The all-oral, interferon-free combination showed promising safety and tolerability. No treatment-related serious adverse events (SAEs), dose reductions or discontinuations were reported in any patient in INFORM-1, including previously reported lower dose cohorts. The most commonly reported adverse events (AEs) were headache, nausea and diarrhea and these had a similar incidence to previously reported lower-dose cohorts. -- Enrollment began in August for the company's Phase 2b study of ITMN-191 in combination with PEGASYS® (pegylated interferon) and COPEGUS® (ribavirin), the current standard of care in HCV. The Phase 2b trial will study both twice-daily (600mg and 900mg q12h) and three-times-daily regimens (300mg q8h) and both 12-week and 24-week treatment durations. Enrollment is proceeding well with approximately 165 patients enrolled to date. -- A Phase 1b multiple-ascending-dose (MAD) study was initiated in September of 2009 to evaluate once-daily and twice-daily ITMN-191 co-administered with low-dose ritonavir in combination with standard-dose pegylated interferon and ribavirin in HCV-infected patients. Ritonavir is an antiviral compound commonly used at low doses to enhance or "boost" the pharmacokinetic (PK) profiles of protease inhibitors. Potential benefits of ritonavir boosting are less-frequent administration and a lower dose or pill burden for ITMN-191, which may enhance the possibility of co-formulation with other direct antiviral agents. Leadership Additions - Preparation for Potential Pirfenidone Launch

The company today announced in a separate press release the expansion of its senior leadership team that will prepare the company to bring pirfenidone to patients, should InterMune's NDA and/or MAA be granted approval by the regulatory authorities in the United States and Europe, respectively:

-- Sr. Vice President and General Manager, Europe - Mr. Giacomo di Nepi. -- Vice President, Sales - Ms. Terri Shoemaker. -- Vice President, Marketing - Mr. Erik Harris. -- Vice President, Managed Care and Access - Mr. Darren Cline.

Further expansion of InterMune's commercial infrastructure will be made upon the successful outcome of key regulatory events related to the NDA and MAA, expected in 2010.

2009 Key Project Guidance

The company provided the following guidance on its key development projects, pirfenidone and ITMN-191 (RG7227).

Milestones And Key Events Expected Date ------------------------- ------------- Pirfenidone ----------- Submission of pirfenidone MAA to EMEA Q1 2010 ------------------------------------- ------- ITMN-191 (RG7227) ---------------- Rapid Virologic Response (RVR) data from Phase 2b (12-week regimens) Q1 2010 ------------------------------------------------- ------- Initiate INFORM-2 program Q1 2010 ------------------------- ------- Initiate longer duration INFORM studies to evaluate SVR H1 2010 --------------------------------------------------- ------- Guidance for 2009 Revenue and Expenses

The company updated its 2009 financial guidance for revenue and operating expenses from the guidance initially provided on February 26, 2009.

Revenue: 2009 revenue, including Actimmune® and milestone payments from Roche, is expected to be in a range of approximately $45 to $50 million. Actimmune revenue represents approximately 50 percent of this revenue range.

Operating Expenses -- R&D expense: anticipated to be in a range of approximately $90 to $100 million, net of development cost reimbursements under the Roche collaboration. Of this amount, approximately 60 percent is attributed to pirfenidone which includes expenses for CAPACITY, RECAP, the preparation and support of NDA and MAA submissions and manufacturing. Approximately 35 percent of the R&D expense is attributed to the company's one-third share of all development expenses incurred by the collaboration with Roche on ITMN-191. The balance of 2009 R&D expense is related to the advancement of a named pirfenidone analog compound, ITMN-520, toward an expected IND filing in 2010. -- G&A expense: anticipated to be in a range of approximately $35 to $40 million. The G&A guidance range includes approximately $5.0 million of various pirfenidone pre-launch costs. Conference Call and Webcast Details

InterMune will host a conference call today at 4:30 p.m. EST to discuss its financial results for its third quarter and first nine months of 2009, its forward-looking financial guidance and its clinical development programs. Interested investors and others may participate in the conference call by dialing 888-799-0528 (U.S.) or 973-200-3372 (international), conference ID# 37626791. A replay of the webcast and teleconference will be available approximately three hours after the call.

To access the webcast, please log on to the company's website at http://www.intermune.com/ at least 15 minutes prior to the start of the call to ensure adequate time for any software downloads that may be required.

The teleconference replay will be available approximately three hours after the call. The teleconference replay will be available for 10 business days following the call and can be accessed by dialing 800-642-1687 (U.S.) or 706-645-9291 (international), and entering the conference ID# 37626791. The webcast will remain available on the company's website until the next earnings call.

About InterMune

InterMune is a biotechnology company focused on the research, development and commercialization of innovative therapies in pulmonology and hepatology. InterMune has an R&D portfolio addressing idiopathic pulmonary fibrosis (IPF) and hepatitis C virus (HCV) infections. The pulmonology portfolio includes pirfenidone for which InterMune has completed a Phase 3 program in patients with IPF (CAPACITY) and has submitted a New Drug Application (NDA) to the FDA. The hepatology portfolio includes the HCV protease inhibitor compound RG7227 (ITMN-191) which entered Phase 2b in August of 2009 and a second-generation HCV protease inhibitor research program. For additional information about InterMune and its R&D pipeline, please visit http://www.intermune.com/.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended, that reflect InterMune's judgment and involve risks and uncertainties as of the date of this release, including without limitation the statements related to anticipated product development timelines and the likelihood of regulatory success. All forward-looking statements and other information included in this press release are based on information available to InterMune as of the date hereof, and InterMune assumes no obligation to update any such forward-looking statements or information. InterMune's actual results could differ materially from those described in InterMune's forward-looking statements. Pirfenidone failed to achieve statistical significance on the primary endpoint in one of its two pivotal clinical trials and there can be no assurance that the regulatory authorities in either the United States or Europe will grant regulatory approval based upon this data, in combination with the other efficacy and safety results the company currently has submitted in support of its NDA file and plans to submit in support of its MAA filing. Other factors that could cause or contribute to such differences include, but are not limited to, those discussed in detail under the heading "Risk Factors" in InterMune's most recent annual report on Form 10-K filed with the SEC on March 16, 2009 (the "Form 10-K") and other periodic reports filed with the SEC, including the following: (i) the fact that physician prescriptions of Actimmune for the treatment of IPF, an indication for which Actimmune has not been approved by the FDA, have declined significantly following the March 2007 termination of the Phase 3 INSPIRE trial of Actimmune in IPF and the risk that InterMune's revenue will continue to decline as expected; (ii) risks related to regulation by the FDA and other agencies with respect to InterMune's communications with physicians concerning Actimmune for the treatment of IPF; (iii) reimbursement risks associated with third-party payors; (iv) risks related to whether InterMune is able to obtain, maintain and enforce patents and other intellectual property; (v) risks related to significant regulatory, supply and competitive barriers to entry; (vi) risks related to the uncertain, lengthy and expensive clinical development and regulatory process, including having no unexpected safety, toxicology, clinical or other issues; (vii) risks related to achieving positive clinical trial results; (viii) risks related to timely patient enrollment and retention in clinical trials; (ix) the results of the InterMune CAPACITY trials of pirfenidone differ in some respects from those of the Shionogi & Co., Ltd. Phase 3 trial of pirfenidone and there can be no assurance that the U.S. or European regulatory authorities will approve the use of pirfenidone for the treatment of IPF; (x) the results as reported by Shionogi concerning their Phase 3 trial may differ from those published or presented in a peer-reviewed forum; and (xi) risks related to the company's manufacturing strategy, which relies on third-party manufacturers and which exposes InterMune to additional risks where it may lose potential revenue. The risks and other factors discussed above should be considered only in connection with the fully discussed risks and other factors discussed in detail in the Form 10-K and InterMune's other periodic reports filed with the SEC, all of which are available via InterMune's web site at http://www.intermune.com/.

Actimmune® is a registered trademark of InterMune, Inc. Pegasys® and Copegus® are registered trademarks of Roche.

Financial tables follow InterMune, Inc. PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30 September 30 ------------ ------------ 2009 2008* 2009 2008* ---- ---- ---- ---- Revenue, net Actimmune $6,493 $7,505 $19,635 $23,297 Collaboration revenue 20,818 15,818 22,454 17,454 ------ ------ ------ ------ Total revenue, net 27,311 23,323 42,089 40,751 Costs and expenses: Cost of goods sold 1,019 1,413 5,737 7,276 Research and development 20,608 25,618 67,965 78,028 General and administrative 9,916 8,205 26,911 22,744 Acquired research and development milestones 1,750 - 15,250 - Restructuring charges 55 - 795 - -- -- --- -- Total costs and expenses 33,348 35,236 116,658 108,048 Loss from operations (6,037) (11,913) (74,569) (67,297) Interest income 331 1,212 1,498 4,644 Interest expense (2,714) (2,971) (7,934) (10,067) Loss on extinguishment of debt (724) - (10,264) (1,294) Other income (expense) 396 18 6,043 1,286 --- -- ----- ----- Loss from continuing operations before income taxes (8,748) (13,654) (85,226) (72,728) Income tax expense/ (benefit) 23 325 2,217 - -- --- ----- -- Loss from continuing operations (8,771) (13,979) (87,443) (72,728) Discontinued operations: Income (loss) from discontinued operations - (3) - 71 -- -- -- -- Net loss $(8,771) $(13,982) $(87,443) $(72,657) ======= ======== ======== ======== Basic and diluted loss per share: Continuing operations $(0.19) $(0.36) $(2.00) $(1.87) Discontinued operations - - - - -- -- -- -- Net loss per share $(0.19) $(0.36) $(2.00) $(1.87) ====== ====== ====== ====== Shares used in computing basic and diluted net loss per share 45,431 39,031 43,810 38,954 ====== ====== ====== ====== * As adjusted due to the implementation of new accounting guidance in the Debt Topic of the FASB ASC, previously referred to as FSP APB 14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)" InterMune, Inc. PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) September 30, December 31, 2009 2008* ---- ---- Cash, cash equivalents and available-for-sale securities $139,679 $154,713 Other assets 17,476 17,097 ------ ------ Total assets $157,155 $171,810 ======== ======== Total other liabilities $31,781 $40,443 Liability under government settlement 20,050 23,665 Deferred collaboration revenue 60,535 62,989 Convertible senior notes 128,153 155,084 Stockholders' deficit (83,364) (110,371) ------- -------- Total liabilities and stockholders' deficit $157,155 $171,810 ======== ======== * As adjusted due to the implementation of new accounting guidance in the Debt Topic of the FASB ASC, previously referred to as FSP APB 14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)"

InterMune, Inc.

CONTACT: Jim Goff of InterMune, Inc., +1-415-466-2228,
jgoff@intermune.com

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

United States Patent Office Issues Patent Covering the Approved Administration of Kuvan With Food

NOVATO, Calif., Nov. 5 /PRNewswire-FirstCall/ -- BioMarin Pharmaceutical Inc. announced today that the United States Patent and Trademark Office has issued a patent covering the approved administration of Kuvan® (sapropterin dihydrochloride) with food for the treatment of phenylketonuria (PKU). The patent expires in 2024.

"We believe that the food effect patent, based on the discovery that food increases the bioavailability of Kuvan, along with our patents for once daily dosing and stable tablet formulation, will create significant barriers to therapeutically equivalent generic competition from entering the market for approximately ten years beyond orphan drug exclusivity," said Jean-Jacques Bienaime, Chief Executive Officer of BioMarin. "We remain committed to serving the PKU community with initiatives such as implementation of an outcomes study in the second quarter of next year and the ongoing development of a blood Phe monitor. We also look forward to results from various investigator-sponsored trials that, if positive, will strengthen the value proposition for the use of Kuvan."

About Kuvan

Kuvan® (sapropterin dihydrochloride) Tablets are indicated in the United States to reduce blood phenylalanine (Phe) levels in patients with hyperphenylalaninemia (HPA) due to tetrahydrobiopterin- (BH4-) responsive phenylketonuria (PKU). Kuvan is to be used in conjunction with a Phe-restricted diet. The active ingredient in Kuvan, sapropterin dihydrochloride, is the synthetic form of 6R-BH4 (tetrahydrobiopterin), a naturally occurring enzyme cofactor that works in conjunction with phenylalanine hydroxylase (PAH) to metabolize Phe.

Kuvan has received orphan drug designation from both the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMEA). Kuvan has received seven years of orphan exclusivity in the United States and ten years of market exclusivity in the E.U.

About PKU

PKU, a genetic disorder affecting approximately 50,000 diagnosed patients in the developed world, is caused by a deficiency of the enzyme phenylalanine hydroxylase. PAH is required for the metabolism of phenylalanine, an essential amino acid found in most protein-containing foods. If the active enzyme is not present in sufficient quantities, Phe accumulates to abnormally high levels in the blood and becomes toxic to the brain, resulting in a variety of complications including severe mental retardation and brain damage, mental illness, seizures, tremors, and limited cognitive ability. As a result of newborn screening efforts implemented in the 1960s and early 1970s, virtually all PKU patients under the age of 40 in developed countries have been diagnosed at birth. To learn more about PKU, please visit http://www.pku.com/. Information on this website is not incorporated by reference into this press release.

About BioMarin

BioMarin develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. The company's product portfolio comprises three approved products and multiple clinical and pre-clinical product candidates. Approved products include Naglazyme® (galsulfase) for mucopolysaccharidosis VI (MPS VI), a product wholly developed and commercialized by BioMarin; Aldurazyme® (laronidase) for mucopolysaccharidosis I (MPS I), a product which BioMarin developed through a 50/50 joint venture with Genzyme Corporation; and Kuvan® (sapropterin dihydrochloride) Tablets, for phenylketonuria (PKU), developed in partnership with Merck Serono, a division of Merck KGaA of Darmstadt, Germany. Other product candidates include PEG-PAL (PEGylated recombinant phenylalanine ammonia lyase), which is currently in Phase II clinical development for the treatment of PKU and GALNS (N-acetylgalactosamine 6-sulfatase), which is currently in Phase I/II clinical development for the treatment of MPS IVA. For additional information, please visit http://www.bmrn.com/. Information on BioMarin's website is not incorporated by reference into this press release.

Forward-Looking Statement

This press release contains forward-looking statements about the business prospects of BioMarin Pharmaceutical Inc., including, without limitation, statements about: expectations related to patents associated with Kuvan. These forward-looking statements are predictions and involve risks and uncertainties such that actual results may differ materially from these statements. These risks and uncertainties include, among others: possible actions by others to challenge, invalidate or design around the patents; and those factors detailed in BioMarin's filings with the Securities and Exchange Commission, including, without limitation, the factors contained under the caption "Risk Factors" in BioMarin's 2008 Annual Report on Form 10-K, as amended, and the factors contained in BioMarin's reports on Form 10-Q and Form 8-K. Stockholders are urged not to place undue reliance on forward-looking statements, which speak only as of the date hereof. BioMarin is under no obligation, and expressly disclaims any obligation to update or alter any forward-looking statement, whether as a result of new information, future events or otherwise.

BioMarin®, Naglazyme® and Kuvan® are registered trademarks of BioMarin Pharmaceutical Inc.

Aldurazyme® is a registered trademark of BioMarin/Genzyme LLC. Contact: Investors Media Eugenia Shen Susan Berg BioMarin Pharmaceutical Inc. BioMarin Pharmaceutical Inc. (415) 506-6570 (415) 506-6594

BioMarin Pharmaceutical Inc.

CONTACT: Investors, Eugenia Shen, +1-415-506-6570, or Media, Susan Berg,
+1-415-506-6594, both of BioMarin Pharmaceutical Inc.

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

Coherent, Inc. Reports Fourth Fiscal Quarter ResultsOrders surge 50% sequentially

SANTA CLARA, Calif., Nov. 5 /PRNewswire-FirstCall/ -- Coherent, Inc. today announced financial results for its fourth fiscal quarter ended October 3, 2009, posting net sales of $107.6 million and a net loss, on a U.S. generally accepted accounting principles (GAAP) basis, of $4.5 million ($0.18 per share). These results compare to net sales of $142.0 million and net income of $4.1 million, or $0.17 per diluted share, for the fourth quarter of fiscal 2008.

Non-GAAP net loss for the fourth quarter of fiscal 2009 was $0.9 million or $0.04 per share after excluding after tax stock-related compensation expense of $1.3 million ($0.05 per share), restructuring expense of $1.1 million, net of tax ($0.04 per share), increased valuation allowances against deferred tax assets of $1.1 million ($0.05 per share) and an after tax charge of $0.1 million related to litigation resulting from our internal stock option investigation ($0.00 per share). Net income for the fourth quarter of fiscal 2008 included an after tax charge of $0.2 million related to litigation resulting from our internal stock option investigation ($0.01 per diluted share), after tax stock-related compensation expense of $1.3 million ($0.05 per diluted share) and restructuring expense of $2.6 million, net of tax ($0.11 per diluted share). Excluding these charges, non-GAAP net income for the fourth quarter of fiscal 2008 was $8.2 million, or $0.34 per diluted share.

In comparison, net sales for the third quarter of fiscal 2009 were $98.5 million and net loss, on a GAAP basis, was $7.0 million ($0.29 per share). Non-GAAP net loss for the third quarter of fiscal 2009 was $2.2 million or $0.09 per share after excluding after tax stock-related compensation expense of $1.4 million ($0.06 per share), restructuring expense of $3.4 million, net of tax ($0.14 per share) and an after tax charge of $0.1 million related to litigation resulting from our internal stock option investigation ($0.00 per share).

Orders received during the three months ended October 3, 2009 of $133.4 million decreased 5.7% from the same prior year period and increased by 50.5% compared to orders received in the immediately preceding quarter. The book-to-bill ratio was 1.2, resulting in backlog of $164.3 million at October 3, 2009 compared to a backlog of $137.6 million at July 4, 2009 and a backlog of $183.5 million at September 27, 2008.

For the fiscal year ended October 3, 2009, Coherent posted net sales of $435.9 million and a net loss on a GAAP basis of $35.3 million ($1.45 per share), as compared to the prior year period sales of $599.3 million and a net income of $23.4 million ($0.83 per diluted share). Orders received for the fiscal year ended October 3, 2009 were $419.2 million, compared to $594.0 million in orders received during the same period a year ago.

"The fourth quarter lived up to our expectations as a turning point for bookings with double-digit, sequential growth in all four end markets. Microelectronics was particularly robust as service orders responded to higher fab utilization rates, capacity expanded for OLEDs and mobile touch screen displays and additional design wins were secured. The scientific research market was also very active with record total bookings and record unit volumes for our Chameleon(TM) and amplifier product lines due to the strength of the products as well as benefits from U.S. stimulus funds. Finally, a number of our instrumentation and medical OEM customers reverted to annual buying patterns, which signals confidence in their end markets. Combined with additional first quarter opportunities and our recent acquisition, we believe that we have the foundation to achieve $475 to $500 million in fiscal 2010 sales," said John Ambroseo, Coherent's President and Chief Executive Officer.

Summarized statement of operations information is as follows (unaudited, in thousands except per share data): Three Months Ended Year Ended ------------------ ---------- October 3, July 4, Sept. 27, October 3, Sept. 27, 2009 2009 2008 2009 2008 ---- ---- ---- ---- ---- Net sales $107,593 $98,479 $142,000 $435,882 $599,262 Cost of sales (A) (B) (E) 70,093 64,865 86,971 274,772 347,356 ------ ------ ------ ------- ------- Gross profit 37,500 33,614 55,029 161,110 251,906 Operating expenses: Research & development (A) (B) (E) 15,500 15,529 17,464 61,417 74,287 Selling, general & administrative (A) (B) (C) (E) 27,285 29,223 30,694 108,098 146,376 Impairment of Goodwill (D) - - - 19,286 - Intangibles amortization 1,722 1,907 2,051 7,466 8,651 ----- ----- ----- ----- ----- Total operating expenses 44,507 46,659 50,209 196,267 229,314 ------ ------ ------ ------- ------- Income (loss) from operations (7,007) (13,045) 4,820 (35,157) 22,592 Other income (expense), net (E) 1,803 3,329 1,772 (698) 14,695 ----- ----- ----- ---- ------ Income (loss) before income taxes (5,204) (9,716) 6,592 (35,855) 37,287 Provision (benefit) for income taxes (F) (709) (2,701) 2,445 (536) 13,884 ---- ------ ----- ---- ------ Net income (loss) $(4,495) $(7,015) 4,147 $(35,319) $23,403 ======= ======= ===== ========= ======= Net income (loss) per share: Basic $(0.18) $(0.29) $0.18 $(1.45) $0.85 ====== ====== ===== ====== ===== Diluted $(0.18) $(0.29) $0.17 $(1.45) $0.83 ====== ====== ===== ====== ===== Shares used in computation: Basic 24,390 24,331 23,696 24,281 27,505 ====== ====== ====== ====== ====== Diluted 24,390 24,331 24,372 24,281 28,054 ====== ====== ====== ====== ====== (A) Stock-related compensation expense included in operating results is summarized below (all footnote amounts are unaudited, in thousands): Stock-related compensation expense Three Months Ended Year Ended ------------------ ---------- October 3, July 4, Sept. 27, October 3, Sept. 27, 2009 2009 2008 2009 2008 ---- ---- ---- ---- ---- Cost of sales $93 $200 $264 $753 $1,893 Research & development 250 249 282 933 1,970 Selling, general & administrative 940 1,039 1,406 5,199 9,062 --- ----- ----- ----- ----- Impact on income (loss) From operations $1,283 $1,488 $1,952 $6,885 $12,925 ------ ------ ------ ------ ------- For the quarters ended October 3, 2009, July 4, 2009 and September 27, 2008, the impact on net income (loss), net of tax was $1,308 ($0.05 per share), $1,368 ($0.06 per share) and $1,308 ($0.05 per diluted share), respectively. For the fiscal year ended October 3, 2009 and September 27, 2008, the impact on net income (loss), net of tax was $5,801 ($0.24 per share) and $9,006 ($0.32 per diluted share), respectively. (B) Restructuring costs included in operating results are summarized below: Restructuring costs Three Months Ended Year Ended ------------------ ---------- October 3, July 4, Sept. 27, October 3, Sept. 27, 2009 2009 2008 2009 2008 ---- ---- ---- ---- ---- Cost of sales $743 $2,621 $2,662 $9,539 $3,990 Research & development 519 799 406 2,608 679 Selling, general & administrative 412 1,469 534 3,522 1,135 --- ----- --- ----- ----- Impact on income (loss) from operations $1,674 $4,889 $3,602 $15,669 $5,804 ------ ------ ------ ------- ------ For the quarters ended October 3, 2009, July 4, 2009 and September 27, 2008, the impact on net income (loss), net of tax was $1,054 ($0.04 per share), $3,354 ($0.14 per share) and $2,566 ($0.11 per diluted share), respectively. For the fiscal years ended October 3, 2009 and September 27, 2008, the impact on net income (loss), net of tax was $11,483 ($0.47 per share) and $3,940 ($0.14 per diluted share), respectively. (C) The quarter ended October 3, 2009 includes $192 ($121 net of tax ($0.00 per share)) of costs related to litigation resulting from our internal stock option investigation. The quarter ended July 4, 2009 includes $108 ($74 net of tax ($0.00 per share)) of costs related to litigation resulting from our internal stock option investigation. The quarter ended September 27, 2008 includes $302 ($184 net of tax ($0.01 per diluted share)) of costs related to litigation resulting from our internal stock option investigation. The fiscal year ended October 3, 2009 includes $1,140 ($820 net of tax ($0.03 per share)) of costs related to litigation resulting from our internal stock option investigation. The fiscal year ended September 27, 2008 includes $9,089 ($5,496 net of tax ($0.20 per diluted share)) of costs related to our restatement of financial statements and litigation resulting from our internal stock option investigation. (D) The fiscal year ended October 3, 2009 includes a $19,286 ($0.79 per share) non-cash charge for the impairment of all of the goodwill of our Commercial Lasers and Components segment. (E) Changes in deferred compensation plan liabilities are included in cost of sales and operating expenses while gains and losses on deferred compensation plan assets are included in other income (expense) net. Deferred compensation expense (benefit) included in operating results is summarized below: Deferred compensation Three Months Ended Year Ended expense (benefit) ------------------ ---------- October 3, July 4, Sept. 27, October 3, Sept. 27, 2009 2009 2008 2009 2008 ---- ---- ---- ---- ---- Cost of sales $43 $87 $(56) $(98) $(19) Research & development 182 309 (284) (593) (154) Selling, general & administrative 1,476 2,431 (1,627) (2,877) (1,235) ----- ----- ------ ------ ------ Impact on income (loss) from operations $1,701 $2,827 $(1,967) $(3,568) $(1,408) ------ ------ ------- ------- ------- For the quarters ended October 3, 2009, July 4, 2009 and September 27, 2008, the impact on other income (expense) net from gains or losses on deferred compensation plan assets was income of $1,435, income of $2,259 and expense of $1,669, respectively. For the fiscal years ended October 3, 2009 and September 27, 2008, the impact on other income (expense) net was expense of $4,326 and expense of $1,073, respectively. (F) The quarter ended October 3, 2009 includes a $1,111 ($0.05 per share) increase in valuation allowances against deferred tax assets. The fiscal year ended October 3, 2009 includes a tax charge of $2,666 ($0.11 per share) resulting from a recently enacted change in state tax law and a $1,111 ($0.05 per share) increase in valuation allowances against deferred tax assets. The fiscal year ended September 27, 2008 include a tax charge of $1,394 ($0.05 per diluted share) in connection with a dividend from one of our European subsidiaries. Summarized balance sheet information is as follows (unaudited, in thousands): October 3, Sept. 27, 2009 2008 ---- ---- ASSETS Current assets: Cash, cash equivalents and short-term investments $243,635 $218,094 Restricted cash -- 2,645 Accounts receivable, net 74,235 96,611 Inventories 97,767 120,519 Prepaid expenses and other assets 67,133 71,914 ------ ------ Total current assets 482,770 509,783 Property and equipment, net 98,792 100,996 Other assets 172,042 195,604 ------- ------- Total assets $753,604 $806,383 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term obligations $9 $9 Accounts payable 21,639 26,333 Other current liabilities 64,694 86,985 ------ ------ Total current liabilities 86,342 113,327 Other long-term liabilities 91,691 94,621 Total stockholders' equity 575,571 598,435 ------- ------- Total liabilities and stockholders' equity $753,604 $806,383 ======== ======== Reconciliation of GAAP to Non-GAAP net income (unaudited, in thousands, net of tax): Three Months Ended Year Ended ------------------ ---------- October 3, July 4, Sept. 27, October 3, Sept. 27, 2009 2009 2008 2009 2008 ---- ---- ---- ---- ---- GAAP net income (loss) $(4,495) $(7,015) $4,147 $(35,319) $23,403 Stock option investigation and related restatement of financial statements, and litigation expenses 121 74 184 820 5,496 Stock-related compensation expense 1,308 1,368 1,308 5,801 9,006 Impairment of goodwill -- -- -- 19,286 -- Restructuring costs 1,054 3,354 2,566 11,483 3,940 one-time tax expense 1,111 -- -- 3,777 1,394 ----- ----- ----- Non-GAAP net income (loss) $(901) $(2,219) $8,205 $5,848 $43,239 ===== ======= ====== ====== ======= Non-GAAP net income per share (loss) $(0.04) $(0.09) $0.34 $0.24 $1.54 ====== ======= ===== ===== =====

The Company's conference call scheduled for 1:30 p.m. PT today will include discussions relative to the fourth quarter results and some comments regarding forward looking guidance on future operating performance. Readers are encouraged to refer to the risk disclosures described in the Company's reports on Forms 10-K, 10-Q and 8-K, as applicable and as filed from time-to-time by the Company.

Forward-Looking Statements

This press release contains forward-looking statements, as defined under the Federal securities laws. These forward-looking statements include the statements in this press release that relate to whether our customers have confidence in their own end markets and the potential range of sales by Coherent in fiscal 2010. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. Factors that could cause actual results to differ materially include risks and uncertainties, including, but not limited to, risks associated with quarterly and annual fluctuations in our net sales and operating results, our and our customers' exposure to risks associated with worldwide economic slowdowns, the ability of our customers to forecast their own end markets, our ability to increase our sales volumes, our ability to accurately forecast future periods, the impact that our operations and potential acquisitions will have on revenue, customer acceptance and adoption of our new product offerings and continued purchases of our existing products and services, and other risks identified in the Company's SEC filings. Readers are encouraged to refer to the risk disclosures described in the Company's reports on Forms 10-K, 10-Q and 8-K, as applicable and as filed from time-to-time by the Company. Actual results, events and performance may differ materially from those presented herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update these forward-looking statements as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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

Coherent, Inc.

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

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

Trubion Pharmaceuticals, Inc. Reports Third Quarter and Nine Months 2009 Financial Results

SEATTLE, Nov. 5 /PRNewswire-FirstCall/ -- Trubion Pharmaceuticals, Inc. today announced financial results for its third quarter and nine months ended Sept. 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090320/TRUBIONLOGO) Third Quarter and Nine Months 2009 Financial Results

Revenue for the third quarter and nine months ended Sept. 30, 2009, was $4.5 million and $12.8 million, respectively, compared with $3.8 million and $12.2 million, respectively, in 2008. Revenues were primarily earned through Trubion's strategic collaborations with Pfizer Inc. and Facet Biotech Corporation (announced Aug. 28, 2009).

Of the $12.8 million in revenue Trubion recognized during the first nine months of 2009, $8.5 million was collaborative research funding from the Pfizer collaboration and $3.6 million for recognition of the $40 million upfront fee received from Wyeth prior to its acquisition by Pfizer. Revenue earned in the nine months ended Sept. 30, 2009, also included $643,000 that was earned through the Facet collaboration. This is composed of $191,000 for recognition of the $20 million upfront fee and $1.4 million equity premium, and $452,000 in collaborative research funding.

This is compared with revenue of $12.2 million recognized in the first nine months of 2008, which was composed of $8.1 million for collaboration research funding from the Pfizer collaboration and $4.1 million for recognition of the $40 million upfront fee paid by Wyeth prior to its acquisition by Pfizer.

Total operating expenses for the third quarter and first nine months of 2009 were $10.6 million and $36.5 million, respectively, compared with $10.4 million and $32.3 million in 2008.

Net loss for the third quarter and nine months ended Sept. 30, 2009, was $6.2 million, or $0.33 per diluted common share, and $23.9 million, or $1.31 per diluted common share, respectively. This is compared with a net loss of $6.6 million, or $0.37 per diluted common share, and $19.2 million, or $1.07 per diluted common share, in 2008.

Trubion had $61.7 million in cash, cash equivalents and investments as of Sept. 30, 2009, compared with $52.9 million as of Dec. 31, 2008.

"Over the past nine months, we have continued to advance our clinical programs, including TRU-015 for rheumatoid arthritis, TRU-016 for chronic lymphocytic leukemia and SBI-087 for rheumatoid arthritis and systemic lupus erythematosus," said Peter Thompson, M.D., FACP, president, chief executive officer and chairman of Trubion. "The data we've collected from each study to-date suggests that these product candidates may provide differentiated, best-in-class treatments for patients with autoimmune and inflammatory diseases, or cancer. In addition, our Facet agreement has significantly extended our runway, and we continue to meter our expenses to reduce our previously anticipated cash burn rate."

Recent milestones -- On Aug. 27, 2009, Trubion entered into an agreement with Facet for the worldwide development and commercialization of TRU-016, a CD37-directed product candidate in phase 1 clinical development for the treatment of chronic lymphocytic leukemia (CLL). Trubion received an upfront payment of $20 million and may receive up to $176.5 million in additional contingent payments upon the achievement of certain development, regulatory and sales milestones. In addition, Facet purchased 2,243,649 shares of Trubion common stock for an aggregate purchase of $10 million, or $4.46 per share. -- Trubion presented the second course of re-treatment data from a Phase 2b study (15002) of TRU-015 for rheumatoid arthritis (RA) at the American College of Rheumatology (ACR) Annual Meeting in Oct. 2009. Data continue to demonstrate that repeat administration of TRU-015 is well-tolerated and improves the signs and symptoms of RA as measured by the ACR rates. At 24 weeks after the second re-treatment course, subjects in the group that had received 800 mg of TRU-015 of the initial treatment achieved ACR 20, 50 and 70 response rates of 72%, 39% and 21%, respectively. Results were similar to the response rates seen 24 weeks after the first re-treatment of the same cohort as presented at the European League Against Rheumatism (EULAR) Annual Meeting in June 2009 (70%, 40% and 23%, respectively). Trubion has now administered more than 1,300 doses of TRU-015 over a period of four and a half years. -- In Sept. 2009, patient enrollment was completed in the second Phase 2b study (2203) of TRU-015 for RA. 2009 Financial Guidance

The company has revised its 2009 guidance after taking into account its collaboration agreement with Facet. As a result, the company has lowered its anticipated annual burn rate from $30 million-$35 million to $0-$5 million. No changes have been made to anticipated revenues for 2009. The revised guidance is as follows:

-- Reiterate 2009 revenues of approximately $15 million to $20 million; and -- Revised 2009 operating cash requirements are now expected to be approximately $0 to $5 million.

This guidance does not include any additional cash receipts associated with potential new partnerships.

Conference Call Details

Trubion will host a conference call and webcast to discuss its third quarter and nine months ended Sept. 30, 2009, financial results and provide an update on business activities. The call will be held Nov. 5 at 2 p.m. Pacific Time, 5 p.m. Eastern Time. The live event will be available from Trubion's website at http://investors.trubion.com/, or by calling (703) 639-1156 or (866) 238-0637. A replay of the discussion will be available beginning at 8 p.m. Eastern Time from Trubion's website or by calling (703) 925-2533 or (888) 266-2081 and entering 1408250. The telephone replay will be available until midnight, Nov. 11, 2009.

About Trubion

Trubion is a biopharmaceutical company that is creating a pipeline of novel protein therapeutic product candidates to treat autoimmune and inflammatory diseases and cancer. The Company's mission is to develop a variety of first-in-class and best-in-class product candidates, customized for optimal safety, efficacy and convenience that it believes may offer improved patient experiences. Trubion's current product candidates are novel single-chain protein, or SMIP, therapeutics, and are designed using its custom drug assembly technology. Trubion's product pipeline includes CD20-directed SMIP therapeutics such as TRU-015 and SBI-087 for autoimmune and inflammatory diseases, developed under the Company's Pfizer collaboration. Trubion's product pipeline also includes TRU-016, a novel CD37-targeted therapy for the treatment of B-cell malignancies developed under the company's Facet collaboration. In addition to Trubion's current clinical stage product pipeline, the Company is also developing its multi-specific SCORPION technology, both for targeting cell-surface molecules like CD79b and HLA-DR, as well simultaneously neutralizing soluble ligands like TNF and IL-6. More information is available in the investors section of Trubion's website: http://investors.trubion.com/index.cfm.

Forward-Looking Statements

Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. These statements include, but are not limited to, those related to the potential development and commercialization of TRU-015. These statements are based on current expectations and assumptions regarding future events and business performance and involve certain risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to, risks associated with the Company's collaborations, including the risk that the Company and Pfizer with regard to TRU-015 and SBI-087, and the Company and Facet with regard to TRU-016, are unable to advance their respective clinical development programs and regulatory applications and action at the expected rate, the risk that the Company is unable to develop or commercialize its clinical-stage products, the risk that the Company does not achieve the financial results that it expects during 2010 and such other risks as are identified in the Company's quarterly report on Form 10-Q for the period ended Sept. 30, 2009, and from time to time in other reports filed by Trubion with the U.S. Securities and Exchange Commission. These reports are available on the Investors page of the company's corporate website at http://www.trubion.com/. Trubion undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

Contact: Jim DeNike Senior Director, Corporate Communications Trubion Pharmaceuticals, Inc. (206) 838-0500 jdenike@trubion.com http://www.trubion.com/ Waggener Edstrom Worldwide Healthcare Amy Petty Senior Account Executive (617) 576-5788 amyp@waggeneredstrom.com TRBN-G (Tables Follow) TRUBION PHARMACEUTICALS. INC. STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited) Three months ended Nine months ended September 30, September 30, ----------------- ----------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenue $4,452 $3,766 $12,783 $12,197 Operating expenses: Research and development 7,410 7,397 27,587 23,302 General and administrative 3,146 2,987 8,877 8,985 ----- ----- ----- ----- Total operating expenses 10,556 10,384 36,464 32,287 ------ ------ ------ ------ Loss from operations (6,104) (6,618) (23,681) (20,090) Interest income 8 370 162 1,585 Interest expense (131) (334) (409) (677) ---- ---- ---- ---- Net loss $(6,227) $(6,582) $(23,928) $(19,182) ======= ======= ======== ======== Basic and diluted net loss per share $(0.33) $(0.37) $(1.31) $(1.07) ====== ====== ====== ====== Shares used in computation of basic and diluted net loss per share 18,868 17,859 18,267 17,847 ====== ====== ====== ====== September 30 December 31, 2009 2008 ---- ---- Balance Sheet Data: Cash and cash equivalents $31,811 $29,969 Investments 29,920 22,928 Total assets 72,676 67,290 Deferred revenue 37,054 19,493 Total stockholders' equity 19,017 31,468

Photo: http://www.newscom.com/cgi-bin/prnh/20090320/TRUBIONLOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Trubion Pharmaceuticals, Inc.

CONTACT: Jim DeNike, Senior Director, Corporate Communications of
Trubion Pharmaceuticals, Inc., +1-206-838-0500, jdenike@trubion.com; or Amy
Petty, Senior Account Executive of Waggener Edstrom Worldwide Healthcare,
+1-617-576-5788, amyp@waggeneredstrom.com, for Trubion Pharmaceuticals

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

Universal Corporation Reports Improved Six Month Results

RICHMOND, Va., Nov. 5 /PRNewswire-FirstCall/ --

HIGHLIGHTS Six Months Diluted earnings per share increased to $3.23 versus $2.02 last year. Revenues flat as pricing and mix offset effect of shipment delays.

Operating income up 33%, to $146 million on lower currency costs and better product mix.

Quarter Diluted earnings per share increased to $1.77 versus $1.38 last year. Revenues down 18% to $648 million on lower volumes due to shipment timing. Operating income up 7%, to $76 million on lower currency costs.

George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation , announced that net income for the first six months of fiscal year 2010, which ended on September 30, 2009, was $96.3 million, or $3.23 per diluted share. Results were above last year's net income of $62.9 million, or $2.02 per diluted share, mostly because of a $17 million decline in currency-related costs, better margins, and a favorable tax rate related to the reversal of provisions for uncertain tax positions due to expiration of the time period during which those positions could be challenged by the tax authorities. Revenues for the six months of about $1.3 billion were flat, as lower volumes due to later shipments and reduced old crop tobacco sales were offset by a better mix of business and higher prices in some areas.

For the second quarter of fiscal year 2010, net income was $52.5 million, or $1.77 per diluted share, compared to last year's net income of $41.8 million, or $1.38 per diluted share. The increase was primarily due to a $25 million decline in currency-related costs and the tax provision reversal. Revenues for the quarter of about $648 million were down significantly, as some shipments were either accelerated into the first quarter or delayed until later in the year.

Mr. Freeman stated, "We are very pleased with our performance so far this year. All of our operations continue to perform well, benefitting from continued cost controls and global coordination. Earlier shipments of Brazilian and European tobacco boosted results in our first fiscal quarter, so we expected lower volumes this period. In addition, some African shipments will be later this year than last. Our costs were lower this quarter, especially those related to currency movement, and that factor has offset the effect of reduced shipments.

"We do not foresee an oversupply of flue-cured tobacco in the coming year. In fact, rains in Brazil during the season could reduce the crop there. Although African burley crops were very large this year, they were smaller than we anticipated, and it appears that the supply has been absorbed by the market. We would not expect to see any significant increase in worldwide dealer inventories for flue-cured and burley tobacco. However, looking at the current worldwide situation, the U.S. dollar has weakened in recent weeks, which could increase costs as we enter the next purchasing season.

"As we look ahead in the intermediate term, we will maintain our relationship with Japan Tobacco Inc. ("JTI"), one of our largest customers, as they work on their previously announced steps to enhance direct leaf procurement capabilities in some origins by acquiring and entering joint ventures with smaller leaf merchants. They have made certain announcements in recent weeks regarding their progress toward that goal, and we believe that it is likely that our U.S. flue-cured and burley volumes for JTI as well as our Malawi burley volumes for them will be reduced or eliminated over time, although we expect these actions will have no effect on volumes this fiscal year. We remain focused on measuring the business impact of these volume reductions and believe that we will continue to sell them significant volumes of processed tobacco outside these two countries."

FLUE-CURED AND BURLEY LEAF TOBACCO OPERATIONS: First Six Months

Operating income for the flue-cured and burley tobacco operations, which comprise the North America and Other Regions segments, increased by more than 30% to $134 million for the first half of this fiscal year, largely on the strength of lower currency-related costs and better margins. Revenues were flat, primarily because a better mix of business and higher prices in some areas offset the effect of lower volumes from shipment delays and lower old crop shipments. In North America, operating income increased by nearly $5 million due to higher prices and improved experience with farmer advances in some areas, although revenues declined on lower sales of old crop leaf and lower Canadian volumes. Earnings for the Other Regions segment were up by 28%, primarily due to lower currency-related costs in Brazil. Volumes improved in Asia and South America, although shipment delays in some areas limited that improvement. African shipments were substantially lower this year because the current crop will be shipped later and first quarter shipments of old crop were reduced. Earnings in Africa improved because of a better product mix and additional processing income. In Europe, lower margins and a weaker local currency reduced reported results. Revenues for Other Regions were nearly flat for the six months as lower volumes, especially in Africa, were offset by improved mix.

Second Quarter

In the second quarter of fiscal year 2010, operating income for flue-cured and burley operations increased by 5% to $69 million, compared to the same period last year. Revenues for the group at $597 million were markedly lower as improvements in product mix overall did not offset the impact of lower volumes, primarily related to late shipments in Africa and accelerated shipments from Brazil and Europe in the first quarter of fiscal year 2010. Operating income for the North America segment increased by $4 million, largely reflecting some pricing improvements and lower costs, which more than offset the effects of lower volumes shipped. Revenues for North America were down on lower volumes. Results for the Other Regions segment were flat on lower volumes, as operating margins improved mostly because of lower currency losses this year. Although average sales prices in the Other Regions segment were slightly higher in the quarter, that increase was not sufficient to offset the effect on segment revenues of lower shipments from Africa.

OTHER TOBACCO OPERATIONS:

The Other Tobacco Operations segment performed well during the first six months of fiscal year 2010. The dark tobacco group saw an improved mix of business that more than offset slightly lower volumes and costs of rationalizing their U.S. operations. Despite an improvement in product mix that benefited current year results, the oriental tobacco joint venture earnings were flat due to the absence of currency gains in the first half of this year. For the second quarter of fiscal year 2010, the segment was flat. Improvement in the dark tobacco business volumes and margin were offset by lower results from the oriental tobacco group where currency gains last year were not repeated. Revenues for the segment were higher in both the quarter and the six months ended September 30, 2009, on higher volumes in the quarter and flat volumes for the six months. Dark tobacco revenues, which are normally the predominant factor in this segment's revenues, were higher in the quarter due to higher prices caused by increased leaf costs during last year's purchasing season and a more favorable product mix. Revenues for dark tobacco were flat for the six months.

OTHER ITEMS:

Cost of sales decreased by 21% to about $500 million in the quarter ended September 30, 2009, on the lower volumes shipped, and lower costs, as the U.S. dollar had strengthened against the currencies of many origins during the leaf purchasing season. Selling, general, and administrative costs decreased by 15%, reflecting lower currency remeasurement losses this year. For the six months, the pattern was similar with somewhat lower volumes combining with lower costs to reduce cost of sales by about 5% and selling, general, and administrative expenses falling by 5% in response to lower currency remeasurement losses. Interest expense was about $3 million lower than that of fiscal year 2009 in the quarter and the six months because of lower average borrowing combined with lower average interest rates. The effective income tax rate at 30% for the six months is lower than that of last year because of the reversal of some taxes provided on uncertain tax positions due to expiration of the time period during which those positions could be challenged by the tax authorities. Absent that reversal, the rate would be lower than the U.S. statutory income tax rate due to the relative size of earnings in regions with lower statutory tax rates.

Additional information

Amounts included in the previous discussion are attributable to Universal Corporation and exclude earnings related to non-controlling interests in subsidiaries.

This information includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions readers that any statements contained herein regarding earnings and expectations for its performance are forward-looking statements based upon management's current knowledge and assumptions about future events, including anticipated levels of demand for and supply of its products and services; costs incurred in providing these products and services; timing of shipments to customers; changes in market structure; and general economic, political, market, and weather conditions. Actual results, therefore, could vary from those expected. A further list and description of these risks, uncertainties and other factors can be found in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2009, and in other documents the Company files with the Securities and Exchange Commission. This information should be read in conjunction with the Annual Report on Form 10-K for the year ended March 31, 2009.

At 5:00 p.m. (Eastern Time) on November 5, 2009, the Company will host a conference call to discuss these results. Those wishing to listen to the call may do so by visiting http://www.universalcorp.com/ at that time. A replay of the webcast will be available at that site for three months. A taped replay of the call will also be available until November 26, 2009, by dialing (800) 642-1687. The confirmation number to access the replay is 39756293.

Headquartered in Richmond, Virginia, Universal Corporation is the world's leading tobacco merchant and processor and conducts business in more than 30 countries. Its revenues for the fiscal year ended March 31, 2009, were $2.6 billion. For more information on Universal Corporation, visit its web site at http://www.universalcorp.com/.

UNIVERSAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands of dollars, except per share data) Three Months Ended Six Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- (Unaudited) (Unaudited) Sales and other operating revenues $647,918 $785,590 $1,264,030 $1,291,877 Costs and expenses Cost of goods sold 500,575 630,447 977,323 1,033,700 Selling, general and administrative expenses 71,478 83,948 141,070 148,795 ------ ------ ------- ------- Operating income 75,865 71,195 145,637 109,382 Equity in pretax earnings of unconsolidated affiliates 5,605 7,583 9,246 7,533 Interest income 231 417 796 1,367 Interest expense 6,694 10,113 14,849 17,779 ----- ------ ------ ------ Income before income taxes and other items 75,007 69,082 140,830 100,503 Income taxes 20,335 23,115 42,354 33,396 ------ ------ ------ ------ Net income 54,672 45,967 98,476 67,107 Less: net income attributable to noncontrolling interests in subsidiaries (2,157) (4,185) (2,216) (4,214) ------ ------ ------ ------ Net income attributable to Universal Corporation 52,515 41,782 96,260 62,893 Dividends on Universal Corporation convertible perpetual preferred stock (3,713) (3,713) (7,425) (7,425) ------ ------ ------ ------ Earnings available to Universal Corporation common shareholders $48,802 $38,069 $88,835 $55,468 ======= ======= ======= ======= Earnings per share attributable to Universal Corporation common shareholders: Basic $1.97 $1.50 $3.57 $2.12 ===== ===== ===== ===== Diluted $1.77 $1.38 $3.23 $2.02 ===== ===== ===== ===== See accompanying notes. UNIVERSAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands of dollars) September 30, September 30, March 31, 2009 2008 2009 ---- ---- ---- (Unaudited) (Unaudited) ASSETS Current Cash and cash equivalents $61,991 $40,765 $212,626 Short-term investments - 15,950 - Accounts receivable, net 293,985 284,107 263,383 Advances to suppliers, net 89,169 169,342 214,282 Accounts receivable - unconsolidated affiliates 39,199 34,403 20,371 Inventories - at lower of cost or market: Tobacco 919,842 778,053 586,136 Other 66,039 80,095 60,712 Prepaid income taxes 23,544 10,058 13,181 Deferred income taxes 48,503 32,979 68,264 Other current assets 74,236 90,503 64,964 ------ ------ ------ Total current assets 1,616,508 1,536,255 1,503,919 Property, plant and equipment Land 16,188 16,133 15,773 Buildings 259,596 255,875 251,875 Machinery and equipment 523,380 504,568 492,214 ------- ------- ------- 799,164 776,576 759,862 Less accumulated depreciation (476,256) (450,946) (447,575) -------- -------- -------- 322,908 325,630 312,287 Other assets Goodwill and other intangibles 106,036 106,267 106,097 Investments in unconsolidated affiliates 120,608 108,137 103,987 Deferred income taxes 15,080 33,512 17,376 Other noncurrent assets 115,342 96,767 94,510 ------- ------ ------ 357,066 344,683 321,970 ------- ------- ------- Total assets $2,296,482 $2,206,568 $2,138,176 ========== ========== ========== See accompanying notes. UNIVERSAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands of dollars) September 30, September 30, March 31, 2009 2008 2009 ---- ---- ---- (Unaudited) (Unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY Current Notes payable and overdrafts $301,376 $260,511 $168,608 Accounts payable and accrued expenses 214,729 205,166 236,837 Accounts payable - unconsolidated affiliates 6,988 320 19,191 Customer advances and deposits 70,089 60,326 14,162 Accrued compensation 22,581 17,632 24,710 Income taxes payable 11,574 9,891 6,867 Current portion of long-term obligations - 79,500 79,500 -- ------ ------ Total current liabilities 627,337 633,346 549,875 Long-term obligations 331,905 321,617 331,808 Pensions and other postretirement benefits 86,888 91,562 91,248 Other long-term liabilities 73,845 88,296 79,159 Deferred income taxes 55,035 35,335 52,842 ------ ------ ------ Total liabilities 1,175,010 1,170,156 1,104,932 Shareholders' equity Universal Corporation: Preferred stock: Series A Junior Participating Preferred Stock, no par value, 500,000 shares authorized, none issued or outstanding - - - Series B 6.75% Convertible Perpetual Preferred Stock, no par value, 5,000,000 shares authorized, 219,999 shares issued and outstanding (219,999 at September 30, 2008, and March 31, 2009) 213,023 213,023 213,023 Common stock, no par value, 100,000,000 shares authorized, 24,715,901 shares issued and outstanding (25,026,040 at September 30, 2008, and 24,999,127 at March 31, 2009) 195,227 193,643 194,037 Retained earnings 743,922 653,402 686,960 Accumulated other comprehensive loss (36,745) (30,944) (64,547) ------- ------- ------- Total Universal Corporation shareholders' equity 1,115,427 1,029,124 1,029,473 Noncontrolling interests in subsidiaries 6,045 7,288 3,771 ----- ----- ----- Total shareholders' equity 1,121,472 1,036,412 1,033,244 --------- --------- --------- Total liabilities and shareholders' equity $2,296,482 $2,206,568 $2,138,176 ========== ========== ========== See accompanying notes. UNIVERSAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of dollars) Six Months Ended September 30, ------------- 2009 2008 ---- ---- (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $98,476 $67,107 Adjustments to reconcile net income to net cash used by operating activities: Depreciation 20,524 20,451 Amortization 1,020 493 Provisions for losses on advances and guaranteed loans to suppliers 8,827 9,972 Remeasurement loss (gain), net 8,562 24,603 Other, net 8,562 10,006 Changes in operating assets and liabilities, net (279,720) (321,938) -------- -------- Net cash used by operating activities (133,749) (189,306) -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (26,429) (21,748) Purchases of short-term investments - (9,658) Maturities and sales of short-term investments - 52,740 Proceeds from sale of property, plant and equipment, and other 2,134 14,298 ----- ------ Net cash provided (used) by investing activities (24,295) 35,632 ------- ------ CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of short-term debt, net 125,997 144,884 Repayment of long-term obligations (79,500) - Issuance of common stock 72 37 Repurchase of common stock (10,947) (105,689) Dividends paid on convertible perpetual preferred stock (7,425) (7,425) Dividends paid on common stock (22,950) (22,962) ------- ------- Net cash provided by financing activities 5,247 8,845 ----- ----- Effect of exchange rate changes on cash 2,162 (476) ----- ---- Net decrease in cash and cash equivalents (150,635) (145,305) Cash and cash equivalents at beginning of year 212,626 186,070 ------- ------- Cash and cash equivalents at end of period $61,991 $40,765 ======= ======= See accompanying notes. NOTE 1. BASIS OF PRESENTATION

Universal Corporation, with its subsidiaries ("Universal" or the "Company"), is the world's leading leaf tobacco merchant and processor. Because of the seasonal nature of the Company's business, the results of operations for any fiscal quarter will not necessarily be indicative of results to be expected for other quarters or a full fiscal year. All adjustments necessary to state fairly the results for the period have been included and were of a normal recurring nature. Certain amounts in prior year statements have been reclassified to conform to the current year presentation. This press release should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2009.

NOTE 2. ACCOUNTING PRONOUNCEMENTS

Effective April 1, 2009, Universal adopted Financial Accounting Standards Board ("FASB") Statement of Financial Accounting Standards No. 160, "Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No. 51" ("SFAS 160"). SFAS 160 requires that noncontrolling interests in subsidiaries that are included in a company's consolidated financial statements, commonly referred to as "minority interests," be reported as a component of shareholders' equity in the balance sheet. It also requires that a company's consolidated net income include the amounts attributable to both the company's interest and the noncontrolling interest in the subsidiary, identified separately in the financial statements. The new guidance requires certain disclosures about noncontrolling interests in the consolidated financial statements. Adoption of SFAS 160 did not have a material impact on the Company's financial statements.

NOTE 3. GUARANTEES AND OTHER CONTINGENT LIABILITIES

Guarantees of bank loans to growers for crop financing and construction of curing barns or other tobacco producing assets are industry practice in Brazil and support the farmers' production of tobacco there. At September 30, 2009, the Company's total exposure under guarantees issued by its operating subsidiary in Brazil for banking facilities of farmers in that country was approximately $154 million ($176 million face amount including unpaid accrued interest, less $22 million recorded for the fair value of the guarantees). About 70% of these guarantees expire within one year, and all of the remainder expire within five years. The subsidiary withholds payments due to the farmers on delivery of tobacco and forwards those payments to the third-party banks. Failure of farmers to deliver sufficient quantities of tobacco to the subsidiary to cover their obligations to the third-party banks could result in a liability for the subsidiary under the related guarantees; however, in that case, the subsidiary would have recourse against the farmers. The maximum potential amount of future payments that the Company's subsidiary could be required to make at September 30, 2009, was the face amount, $176 million including unpaid accrued interest ($163 million as of September 30, 2008, and $139 million at March 31, 2009). The fair value of the guarantees was a liability of approximately $22 million at September 30, 2009 ($28 million at September 30, 2008, and $35 million at March 31, 2009). In addition to these guarantees, the Company has other contingent liabilities totaling approximately $56 million, primarily related to a bank guarantee that bonds an appeal of a 2006 fine in the European Union. Various subsidiaries of the Company are involved in other litigation and tax examinations incidental to their business activities. While the outcome of these matters cannot be predicted with certainty, management is vigorously defending the claims and does not currently expect that any of them will have a material adverse effect on the Company's financial position. However, should one or more of these matters be resolved in a manner adverse to management's current expectation, the effect on the Company's results of operations for a particular fiscal reporting period could be material.

NOTE 4. EARNINGS PER SHARE

The following table sets forth the computation of earnings per share for the periods presented in the consolidated statements of income.

Three Months Ended Six Months Ended September 30, September 30, ------------- ------------- (in thousands, except per share data) 2009 2008 2009 2008 ------------------------------------- ---- ---- ---- ---- Basic Earnings Per Share ------------------------ Numerator for basic earnings per share Net income attributable to Universal Corporation $52,515 $41,782 $96,260 $62,893 Less: Dividends on convertible perpetual preferred stock (3,713) (3,713) (7,425) (7,425) ------ ------ ------ ------ Earnings available to Universal Corporation common shareholders for calculation of basic earnings per share 48,802 38,069 88,835 55,468 ------ ------ ------ ------ Denominator for basic earnings per share Weighted average shares outstanding 24,801 25,404 24,892 26,146 ------ ------ ------ ------ Basic earnings per share $1.97 $1.50 $3.57 $2.12 ===== ===== ===== ===== Diluted Earnings Per Share -------------------------- Numerator for diluted earnings per share Earnings available to Universal Corporation common shareholders $48,802 $38,069 $88,835 $55,468 Add: Dividends on convertible perpetual preferred stock (if conversion assumed) 3,713 3,713 7,425 7,425 ----- ----- ----- ----- Earnings available to Universal Corporation common shareholders for calculation of diluted earnings per share 52,515 41,782 96,260 62,893 ------ ------ ------ ------ Denominator for diluted earnings per share: Weighted average shares outstanding 24,801 25,404 24,892 26,146 Effect of dilutive securities (if conversion or exercise assumed) Convertible perpetual preferred stock 4,732 4,716 4,730 4,715 Employee share-based awards 162 229 147 224 --- --- --- --- Denominator for diluted earnings per share 29,695 30,349 29,769 31,085 ------ ------ ------ ------ Diluted earnings per share $1.77 $1.38 $3.23 $2.02 ===== ===== ===== =====

For the three- and six-month periods ended September 30, 2009 and 2008, certain employee share-based awards were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. These awards included stock appreciation rights and stock options totaling 725,201 shares at a weighted-average exercise price of $50.33 for the quarter and six months ended September 30, 2009, and 404,800 shares at a weighted-average exercise price of $58.96 for the quarter and six months ended September 30, 2008.

NOTE 5. SEGMENT INFORMATION

The principal approach used by management to evaluate the Company's performance is by geographic region, although some components of the business are evaluated on the basis of their worldwide operations. The Company evaluates the performance of its segments based on operating income after allocated overhead expenses (excluding significant non-recurring charges or credits), plus equity in pretax earnings of unconsolidated affiliates.

Operating results for the Company's reportable segments for each period presented in the consolidated statements of income were as follows:

Three Months Ended Six Months Ended September 30, September 30, ------------- ------------- (in thousands of dollars) 2009 2008 2009 2008 ---- ---- ---- ---- SALES AND OTHER OPERATING REVENUES Flue-cured and burley leaf tobacco operations: North America $49,874 $54,866 $86,006 $103,293 Other regions (1) 547,177 686,276 1,068,349 1,087,761 ------- ------- --------- --------- Subtotal 597,051 741,142 1,154,355 1,191,054 Other tobacco operations (2) 50,867 44,448 109,675 100,823 ------ ------ ------- ------- Consolidated sales and other operating revenues $647,918 $785,590 $1,264,030 $1,291,877 ======== ======== ========== ========== OPERATING INCOME Flue-cured and burley leaf tobacco operations: North America $7,948 $3,750 $8,254 $3,324 Other regions (1) 61,477 62,453 125,386 97,638 ------ ------ ------- ------ Subtotal 69,425 66,203 133,640 100,962 Other tobacco operations (2) 12,045 12,575 21,243 15,953 ------ ------ ------ ------ Segment operating income 81,470 78,778 154,883 116,915 Less: Equity in pretax earnings of unconsolidated affiliates (3) 5,605 7,583 9,246 7,533 ----- ----- ----- ----- Consolidated operating income $75,865 $71,195 $145,637 $109,382 ======= ======= ======== ======== (1) Includes South America, Africa, Europe, and Asia regions, as well as inter-region eliminations. (2) Includes Dark Air-Cured, Special Services, and Oriental, as well as inter-company eliminations. Sales and other operating revenues for this reportable segment include limited amounts for Oriental because its financial results consist principally of equity in the pretax earnings of an unconsolidated affiliate. (3) Item is included in segment operating income, but not included in consolidated operating income.

Universal Corporation

CONTACT: Karen M. L. Whelan of Universal Corporation, +1-804-359-9311,
Fax, +1-804-254-3584, investor@universalleaf.com

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

CA Declares Quarterly Dividend

ISLANDIA, N.Y., Nov. 5 /PRNewswire-FirstCall/ -- CA, Inc. today announced that its Board of Directors has declared a regular, quarterly cash dividend of $0.04 per share. The dividend will be paid on November 30, 2009 to stockholders of record at the close of business on November 17, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090402/NYTH500LOGO ) About CA

CA , the world's leading independent IT management software company, helps customers optimize IT for better business results. CA's Enterprise IT Management solutions for mainframe and distributed computing enable Lean IT -- empowering organizations to more effectively govern, manage and secure their IT operations. For more information, visit http://www.ca.com/.

Connect with CA -- CA Social Media Page -- CA Newsletters -- CA Press Releases -- CA Podcasts Trademarks

Copyright © 2009 CA. All Rights Reserved. One CA Plaza, Islandia, N.Y. 11749. All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.

Contacts: Michelle Healy Carol Lu Public Relations Investor Relations (631) 342-4701 (212) 415-6920 michelle.healy@ca.com carol.lu@ca.com

Photo: http://www.newscom.com/cgi-bin/prnh/20090402/NYTH500LOGO
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com CA

CONTACT: Michelle Healy, Public Relations, +1-631-342-4701,
michelle.healy@ca.com, or Carol Lu, Investor Relations, +1-212-415-6920,
carol.lu@ca.com

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

BioSpecifics Technologies Corp. Reports Third Quarter 2009 Financial Results

LYNBROOK, N.Y., Nov. 5 /PRNewswire-FirstCall/ -- BioSpecifics Technologies Corp. , a biopharmaceutical company developing first-in-class collagenase-based products, today announced its financial results for the third quarter ended September 30, 2009.

"We were extremely happy that, in September of this year, the FDA's Arthritis Advisory Committee unanimously recommended, by a vote of 12-0, the approval of XIAFLEX(TM) for the treatment of Dupuytren's disease, and we are eagerly awaiting a response on the Biologics License Application that was submitted by our partner, Auxilium," stated Thomas L. Wegman, President of BioSpecifics. "We also look forward to the Phase IIb results testing XIAFLEX in Peyronie's disease, which Auxilium expects to report in December."

"I am very pleased that for the nine months ended September 30, 2009, as compared to the nine months ended September 30, 2008, Company revenues increased by 100% and, during the same period, the Company's net loss decreased," continued Mr. Wegman.

Three Months Ended September 30, 2009 and 2008

The Company reported a net loss of $0.4 million for the third quarter ended September 30, 2009, or ($0.06) per basic and diluted common share, compared to a net loss of $0.2 million, or ($0.04) per basic and diluted common share, for the same period in 2008.

Revenue for the third quarter ended September 30, 2009 was $0.8 million, compared to $0.3 million for the same period in 2008. The increase in revenue was due to earn-out payments triggered by certain net sales levels of topical collagenase under the earn-out payment provision of the Company's Asset Purchase Agreement with DFB Biotech, Inc.

Research and development expenses for the third quarter ended September 30, 2009 and 2008 were approximately $0.1 million in each respective quarter. Research and development expenses include employee-related expenses, costs of materials, lab expenses, facility costs and overhead.

General and administrative expenses for the third quarter ended September 30, 2009 totaled $1.2 million, compared to $0.9 million for the same period in 2008. The increase in general and administrative expenses was primarily due to outside consulting expenses, directors' fees, legal fees and the Company incurring certain facility costs which were previously reimbursable under its Transition Services Agreement with DFB Biotech, which expired in October 2008.

As of September 30, 2009, the Company held cash, cash equivalents and short-term investments of $9.3 million.

Nine Months Ended September 30, 2009 and 2008

The Company reported a net loss of $1.4 million for the nine months ended September 30, 2009, or ($0.23) per basic and diluted common share, compared to a net loss of $1.5 million, or ($0.25) per basic and diluted common share, for the same period in 2008.

Revenue for the nine months ended September 30, 2009 was $2.4 million, compared to $1.2 million for the same period in 2008. The increase in revenue was due to earn-out payments triggered by certain net sales levels of topical collagenase under the earn-out payment provision of the Company's Asset Purchase Agreement with DFB Biotech and a milestone payment received and recognized from Auxilium Pharmaceuticals, Inc.

Third Quarter Corporate Highlights -- In its September 3, 2009 edition, The New England Journal of Medicine published data from the pivotal CORD I Phase III clinical trial of XIAFLEX for the treatment of Dupuytren's disease, a debilitating disorder resulting from excessive collagen deposition that causes contractures of the fingers, in an article entitled "Injectable Collagenase Clostridium Histolyticum for Dupuytren's Contracture." The article describes the positive results observed in the largest, prospective, double blind, placebo controlled clinical trial ever conducted in the field of Dupuytren's contracture. -- On September 16, 2009, the Arthritis Advisory Committee of the U.S. Food and Drug Administration (FDA) unanimously recommended, by a vote of 12 to 0, that the FDA approve XIAFLEX for the treatment of Dupuytren's disease. Webcast and Conference Call

The Company will host a conference call today at 4:30 p.m. ET to discuss its third quarter 2009 results.

To participate in the conference call, please dial 800-860-2442 (domestic) or 412-858-4600 (international). The presentation will be available via a live webcast at: http://www.videonewswire.com/event.asp?id=63660 .

A replay of the call will be available one hour after the conference ends on November 5, 2009 until 9:00am ET on November 12, 2009. To access the replay, please dial 877-344-7529 (domestic) or 412-317-0088 (international) and reference the access code 435394. The archived webcast will be available for 90 days in the Investor Relations section of the Company's website at http://www.biospecifics.com/.

About BioSpecifics Technologies Corp.

BioSpecifics Technologies Corp. is a biopharmaceutical company that has developed injectable collagenase for eleven clinical indications, three of which include: Dupuytren's disease, Peyronie's disease, and frozen shoulder (adhesive capsulitis). Its strategic partner Auxilium has announced the acceptance of the Biologic License Application and Priority Review by the FDA's Arthritis Advisory Committee for injectable collagenase XIAFLEX in the treatment of Dupuytren's disease, and on September 16, 2009, the Arthritis Advisory Committee unanimously recommended, by a vote of 12 to 0, that the FDA approve XIAFLEX for the treatment of Dupuytren's disease. Pfizer, Inc. is responsible for marketing XIAFLEX product in Europe.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact, including statements regarding the Company's strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management, its expected revenue growth, and any other statements containing the words "believes", "expects", "anticipates", "plans", "estimates" and similar expressions, are forward-looking statements. There are a number of important factors that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements, including the ability of its partner Auxilium to obtain regulatory approval of XIAFLEX in the United States for Dupuytren's disease and Peyronie's disease, the preparedness of Auxilium for the commercial launch of XIAFLEX for the treatment of Dupuytren's disease and the ability of Pfizer, Inc. to obtain regulatory approval of XIAFLEX in its territory for the same indications, which will determine the amount of milestone, royalty and sublicense income payments the Company may receive; the amount of earn-out payments the Company may receive from DFB Biotech and its affiliates; whether Auxilium exercises its option under the license agreement between Auxilium and the Company for additional indications; the potential benefits of the Company's existing license and development agreements; the Company's estimates regarding expenses, future revenue, capital requirements and needs for additional financing; and other factors identified in the Company's Form 10-K for the year ended December 31, 2008, the Form 10-Q for the quarter ended June 30, 2009 and any subsequent reports filed with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

BioSpecifics Technologies Corp.

CONTACT: BioSpecifics Technologies Corp., Thomas L. Wegman, President,
+1-516-593-7000, thomas_wegman@biospecifics.com

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

Seneca Foods Reports Sales Up $21.6 Million and Earnings Up $21.2 Million for the Six Months Ended September 26, 2009

MARION, N.Y., Nov. 5 /PRNewswire-FirstCall/ -- Seneca Foods Corporation is pleased to report that net sales for the six months ended September 26, 2009 increased from last year by $21.6 million, or 4.1%, to $553.7 million. The increase in sales is attributable to increased selling prices/improved sales mix of $45.8 million partially offset by a sales volume reduction of $24.2 million. Net earnings increased to $23.5 million, or $1.92 per diluted share, compared to $2.3 million or $0.19 per diluted share in the prior year. Excluding a non-cash after-tax LIFO charge of $6.1 million and $16.0 million, net earnings per diluted share were $2.42 and $1.49 during the six months periods ended September 26, 2009 and September 27, 2008, respectively.

For the quarter ended September 26, 2009, sales increased 2.5% to $323.2 million compared to last year. The increase in sales is attributable to increased selling prices/improved sales mix of $15.8 million partially offset by reduced sales volume of $8.0 million. Net earnings were $12.4 million, or $1.02 per diluted share, versus $4.4 million or $0.36 per diluted share in the quarter ended September 27, 2008. Excluding a non-cash after-tax LIFO charge of $3.1 million and $9.3 million, net earnings per diluted share were $1.27 and $1.11 during the quarters ended September 26, 2009 and September 27, 2008, respectively.

Pre-tax results for six months ended September 27, 2008 included a $0.3 million gain on the sale of unused equipment.

"We continue to be pleased with the strong earnings performance of the company in the second quarter. Our retail store brands business remains one of the key drivers in earnings growth as consumers stretch their food budgets through the purchase of our products. Nevertheless, sales of store brand canned fruits and vegetables show signs of slowing as the leading brands are becoming more aggressive in their promotional activities", said Kraig H. Kayser, President and CEO.

Seneca Foods is one of the country's largest processors of canned fruits and vegetables with manufacturing facilities located throughout the United States. Its products are sold under the Libby's, Aunt Nellie's Farm Kitchen, Stokely's, READ, and Seneca labels as well as through the private label and industrial markets. In addition, under an alliance with General Mills Operations, LLC, a successor to the Pillsbury Company and a subsidiary of General Mills, Inc., Seneca produces canned and frozen vegetables, which are sold by General Mills Operations, LLC under the Green Giant label. Seneca's common stock is traded on the Nasdaq Global Stock Market under the symbols "SENEA" and "SENEB".

Non-GAAP Financial Measures--Net Earnings Excluding LIFO Impact, EBITDA and FIFO EBITDA

Net Earnings excluding LIFO, EBITDA and FIFO EBITDA are non-GAAP financial measures. The Company believes these non-GAAP financial measures provide a basis for comparison to companies that do not use LIFO and to periods prior to 2008 when the company did not use LIFO and enhance the understanding of the company's operating performance. The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP.

Set forth below is a reconciliation of reported net earnings and reported diluted earnings per share to net earnings excluding LIFO and diluted earnings per share excluding LIFO.

Quarter Ended ---------------------------------------------------- September 26, 2009 September 27, 2008 ------------------------- ----------------------- Income Diluted Income Diluted (in millions) EPS (in millions) EPS ------------ ------- ----------- ------- Net earnings, as reported: $12.4 $1.02 $4.4 $0.36 LIFO charge, after tax at statutory federal rate $3.1 $0.25 $9.3 $0.75 Net earnings, excluding LIFO impact $15.5 $1.27 $13.7 $1.11 Diluted weighted average common shares outstanding (in thousands) 10,709 7,659 ====== ===== Six Months Ended --------------------------------------------------- September 26, 2009 September 27, 2008 ------------------------ --------------------- Income Diluted Income Diluted (in millions) EPS (in millions) EPS ----------- ------- ----------- ------- Net earnings, as reported: $23.5 $1.92 $2.3 $0.19 LIFO charge, after tax at statutory federal rate $6.1 $0.50 $16.0 $1.30 Net earnings, excluding LIFO impact $29.6 $2.42 $18.3 $1.49 Diluted weighted average common shares outstanding (in thousands) 9,181 7,659 ===== =====

Set forth below is a reconciliation of reported net earnings to EBITDA and FIFO EBITDA (earnings before interest, income taxes, depreciation, amortization, non-cash charges and credits related to the LIFO inventory valuation method). The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP.

Six Months Ended ---------------------------------- EBITDA and FIFO EBITDA: September 26, September 27, 2009 2008 ------------ ------------ (In thousands) Net earnings $23,511 $2,288 Income taxes 12,921 1,691 Interest expense, net of interest income 5,183 7,363 Depreciation and amortization 10,883 10,949 Interest amortization (300) (319) ---- ---- EBITDA 52,198 21,972 LIFO charge 9,429 24,572 ----- ------ FIFO EBITDA $61,627 $46,544 ======= ======= Forward-Looking Information

The information contained in this report contains, or may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and include statements regarding the intent, belief or current expectations of the Company or its officers (including statements preceded by, followed by or that include the words "believes," "expects," "anticipates" or similar expressions) with respect to various matters, including (i) the Company's anticipated needs for, and the availability of, cash, (ii) the Company's liquidity and financing plans, (iii) the Company's ability to successfully integrate acquisitions into its operations, (iv) trends affecting the Company's financial condition or results of operations, including anticipated sales price levels and anticipated expense levels, in particular higher production, fuel and transportation costs, (v) the Company's plans for expansion of its business (including through acquisitions) and cost savings, and (vi) the impact of competition.

Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on such statements, which speak only as of the date the statements were made. Among the factors that could cause actual results to differ materially are:

-- general economic and business conditions; -- cost and availability of commodities and other raw materials such as vegetables, steel and packaging materials; -- transportation costs; -- climate and weather affecting growing conditions and crop yields; -- leverage and the Company's ability to service and reduce its debt; -- foreign currency exchange and interest rate fluctuations; -- effectiveness of the Company's marketing and trade promotion programs; -- changing consumer preferences; -- competition; -- product liability claims; -- the loss of significant customers or a substantial reduction in orders from these customers; -- changes in, or the failure or inability to comply with, U.S., foreign and local governmental regulations, including environmental and health and safety regulations; and -- other risks detailed from time to time in the reports filed by the Company with the SEC.

Except for ongoing obligations to disclose material information as required by the federal securities laws, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of the filing of this report or to reflect the occurrence of unanticipated events.

Seneca Foods Corporation Unaudited Condensed Consolidated Statements of Net Earnings For the Periods Ended September 26, 2009 and September 27, 2008 (In thousands of dollars, except share data) Quarter Year-to-Date ------------------- ------------------- 2009 2008 2009 2008 -------- -------- -------- -------- Net sales $323,205 $315,418 $553,733 $532,131 ======== ======== ======== ======== Other operating income, net (note 3) $31 $12 $31 $283 === === === ==== Operating income (note 1 and 2) $22,458 $11,073 $41,615 $11,342 Interest expense, net 2,546 3,611 5,183 7,363 ----- ----- ----- ----- Earnings before income taxes $19,912 $7,462 $36,432 $3,979 Income taxes expense 7,487 3,097 12,921 1,691 ----- ----- ------ ----- Net earnings $12,425 $4,365 $23,511 $2,288 ======= ====== ======= ====== Earnings applicable to common stock (note 4) $10,879 $2,722 $17,632 $1,422 ======= ====== ======= ====== Basic earnings per share $1.02 $0.36 $1.94 $0.19 ===== ===== ===== ===== Diluted earnings per share $1.02 $0.36 $1.92 $0.19 ===== ===== ===== ===== Weighted average shares outstanding basic 10,639,848 7,591,423 9,111,845 7,591,340 Weighted average shares outstanding diluted 10,709,156 7,659,214 9,181,153 7,659,131 Note 1: The effect of the LIFO inventory valuation method on second quarter pre-tax results was to reduce operating earnings by $4,728,000 and $14,296,000, for the three month periods ended September 26, 2009 and September 27, 2008, respectively. Note 2: The effect of the LIFO inventory valuation method on year-to-date pre-tax results was to reduce operating earnings by $9,429,000 and $24,572,000, for the six month periods ended September 26, 2009 and September 27, 2008, respectively. Note 3: Other operating income for the prior year-to-date period of $283,000 principally represents a net gain on the sale of unused fixed assets. Note 4: The Company uses the "two-class" method for basic earnings per share by dividing the earnings allocated to common shareholders by the weighted average of common shares outstanding during the period. The diluted earnings per share includes the effect of convertible shares for the each period presented. Average common and participating shares totaled 12,146,152 as of September 26, 2009.

Seneca Foods Corporation

CONTACT: Roland E. Breunig, CFO, Seneca Foods Corporation,
+1-608-757-6000

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

The Hain Celestial Group Announces First Quarter Fiscal Year 2010 ResultsEarnings Grow 17.6% to $0.20 Per Share Operating Free Cash Flow Improves by $56.4 Million in the Latest 12 Months Solid Performance Continues in Hain Celestial US Operations Reconfirms Guidance of $1.19 - $1.28 Per Share

MELVILLE, N.Y., Nov. 5 /PRNewswire-FirstCall/ -- The Hain Celestial Group, Inc. , a leading natural and organic products company providing consumers with A Healthy Way of Life(TM), today reported results for the first quarter ended September 30, 2009. The Company reported that earnings per share grew 17.6% to $0.20 per share on net income of $8.1 million as compared to the prior year quarter earnings of $0.17 per share on net income of $7.0 million, on the strength of profit contributions from the Company's United States and Continental European operations. These results are after the Company absorbed charges of $1.8 million, or $0.03 per share, for the planned and previously disclosed consolidation of its two United Kingdom-based fresh food-to-go production facilities, and a $1.0 million, or $0.02 per share, net loss representing the Company's minority interest in the quarterly results of Hain Pure Protein ("HPP").

(Logo: http://www.newscom.com/cgi-bin/prnh/20050324/NYTH131)

Sales for the first quarter this year totaled $230.5 million versus $248.4 million in the prior year first quarter, after deducting $38.4 million of sales for HPP. Total sales in the prior year quarter amounted to $286.8 million including HPP, which was then a consolidated subsidiary. Sales in the current year first quarter were impacted by increased promotional spending activity and, the Company believes, would have otherwise increased over last year's quarter with the comparison unfavorably affected by a total of approximately $22 million from destocking at a major distributor, the Celestial Seasonings® SKU rationalization, reductions of personal care product sales into the chain drug channel, the phasing out of the supply of fresh sandwiches to a major retail customer in the United Kingdom and changes in foreign currencies.

Sales for the first quarter this year totaled $230.5 million versus $248.4 million in the prior year first quarter, after deducting $38.4 million of sales for HPP, a consolidated subsidiary in last year's quarter. Sales in the current year first quarter were impacted by increased promotional spending activity and, the Company believes, would have otherwise been in line with last year's quarter with the comparison unfavorably affected by a total of approximately $56 million, consisting of: the deconsolidation of $38.4 million from HPP, plus a total of $17.6 million from distributor and retailer destocking, the Celestial Seasonings® SKU rationalization, reductions of personal care products sales into the chain drug channel, the phasing out of the supply of fresh sandwiches to a major retail customer in the United Kingdom and changes in foreign currencies.

"Last year at this time we were experiencing strong sales in our first quarter, which began to moderate in the second quarter. In the current economic climate we are encouraged by signs of momentum in the United States, Canada and selected parts of Europe. This year we continue to see expanded distribution from new channels even as certain customers have reduced their inventory levels in the quarter," said Irwin D. Simon, President and Chief Executive Officer. "The Company realized more favorable fuel and commodity input pricing, cost containment and productivity initiatives. We believe the Company will continue to benefit from such initiatives and from new customers at our Fakenham facility, where we have seen expansion of both the Linda McCartney® brand and private label sales in the United Kingdom."

"In the United Kingdom, where we continue to focus on improving our sales and operating performance, we have consolidated into fewer production locations. We have moved production of Daily Bread(TM) products into our Luton facility. This consolidation has gone well and is now substantially complete, although additional consolidation costs will impact our second quarter. We continue to produce our frozen meat-free offerings at our Fakenham facility and our non-dairy beverage products at our Manchester facility," Mr. Simon said. "In addition, we absorbed a net loss from our minority interest in HPP amounting to $1.0 million in the quarter, which arose principally from sales of existing inventory of commodity products at lower than anticipated prices. We are encouraged by the progress HPP is making in moving away from commodity poultry products and concentrating on antibiotic-free products. We look forward to a return to profitable results at HPP during the remainder of the fiscal year."

Gross margins in this year's first quarter were 26.8% compared to 24.0% in the prior year quarter. The 280 basis point increase in gross margin is reflective of the deconsolidation of HPP offset by increased promotional spending. The Company anticipates higher margin performance in the coming quarters of the fiscal year.

Selling, general and administrative expenses were 18.5% as a percentage of sales in this year's first quarter compared to 18.6% in the prior year quarter. The deconsolidation of HPP, which operates at a lower expense base, affected the comparison of selling, general and administrative expenses as a percentage of sales by 183 basis points. This increase was offset by reductions in spending resulting from the Company's focus on cost control, including the benefit of actions taken in reducing headcount and consolidating locations.

"As stated when we reported our year-end results in late August, we expect to see a stronger second half of fiscal year 2010. With the benefit of new commodity contracts, we plan to maintain our higher level of promotional spending toward the consumer in the upcoming quarters and expect this to further our sales momentum," stated Irwin Simon. "We're excited about the launch of Martha Stewart Clean products, which are in selected stores now, and the nationwide rollout scheduled for early calendar year 2010. We are also excited about our joint venture with Hutchison Whampoa's China Meditech with its anticipated rollout of co-branded Zhi Ling Tong and Earth's Best® products later in the calendar year. In addition, we expect that as consumers dine at home and seek out more natural products, our Natural Initiative's back-to-basics approach to food labeling should solidify our leadership role in the natural and organic consumer products category," concluded Irwin Simon.

The Company's balance sheet remains strong. The Company reduced borrowings by $16.3 million in the quarter bringing the total debt reduction to $76.5 million over the most recent 12 months. Debt as a percentage of equity was 33.8%, with equity at $716.1 million at September 30, 2009. Operating free cash flow was $30.4 million over the most recent 12-month period, improving by $56.4 million from a year ago.

Fiscal Year 2010 Guidance

The Company reconfirmed its fiscal year 2010 guidance of $1.19 to $1.28 of earnings per share. For the full fiscal year 2010, sales are expected to increase from 4% to 6% from the Company's fiscal year 2009 sales base less HPP sales, items discontinued in the SKU rationalization and the reclassification of promotional expenses. Net sales are expected to be $1.0 to $1.02 billion due to the effect of the reclassification

Webcast and Upcoming Events

Hain Celestial will host a conference call and webcast at 4:30 PM Eastern Standard Time today to review its first quarter fiscal year 2010 results. The Company is scheduled to present at several investor conferences including: Citi's Small/Mid-Cap Conference on November 20, 2009 and J. P. Morgan's SMid Cap Conference on December 3, 2009. These events will be webcast and available under the Investor Relations section of the Company's website at http://www.hain-celestial.com/.

The Hain Celestial Group

The Hain Celestial Group , headquartered in Melville, NY, is a leading natural and organic products company in North America and Europe. Hain Celestial participates in many natural categories with well-known brands that include Celestial Seasonings®, Terra®, Garden of Eatin'®, Health Valley®, WestSoy®, Earth's Best®, Arrowhead Mills®, MaraNatha®, SunSpire®, DeBoles®, Gluten Free Cafe(TM), Hain Pure Foods®, Hollywood®, Spectrum Naturals®, Spectrum Essentials®, Walnut Acres Organic®, Imagine®, Rice Dream®, Soy Dream®, Rosetto®, Ethnic Gourmet®, Yves Veggie Cuisine®, Granose®, Realeat®, Linda McCartney®, Daily Bread(TM), Lima®, Grains Noirs®, Natumi®, JASON®, Zia® Natural Skincare, Avalon Organics®, Alba Botanica®, Queen Helene®, Tushies® and TenderCare®. Hain Celestial has been providing "A Healthy Way of Life(TM)" since 1993. For more information, visit http://www.hain-celestial.com/.

Safe Harbor Statement

This press release contains forward-looking statements under Rule 3b-6 of the Securities Exchange Act of 1934, as amended. Words such as "expect," "expected", "anticipate," "estimate," "believe," "may," "potential," "can," "position", "positioned," "should," "plan," and similar expressions, or the negative of those expressions, may identify forward-looking statements. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve known and unknown risks and uncertainties, which could cause our actual results to differ materially from those described in the forward-looking statements. These risks include but are not limited to our ability to achieve our guidance for sales and earnings per share in fiscal year 2010 given the recessionary environment in the U.S. and other markets that we sell products as well as economic and business conditions generally and their effect on our customers and consumers' product preferences, and our business, financial condition and results of operations; changes in estimates or judgments related to our impairment analysis of goodwill and other intangible assets; our ability to implement our business and acquisition strategy, including our strategy for improving results in Europe; HPP's ability to implement its business strategy; our ability to realize sustainable growth generally and from investments in core brands, offering new products and our focus on cost containment, productivity, cash flow and margin enhancement in particular, our ability to effectively integrate our acquisitions; our ability to successfully execute our joint ventures; competition; the success and cost of introducing new products as well as our ability to increase prices on existing products, availability and retention of key personnel; our reliance on third party distributors, manufacturers and suppliers; our ability to maintain existing contracts and secure and integrate new customers; our ability to respond to changes and trends in customer and consumer demand, preferences and consumption; international sales and operations; changes in fuel and commodity costs; the continuing adverse effects on our results of operations from the impacts of foreign exchange; the resolution of the civil litigation regarding our stock option practices; changes in, or the failure to comply with, government regulations; and other risks detailed from time-to-time in the Company's reports filed with the SEC, including the annual report on Form 10-K for the fiscal year ended June 30, 2009. As a result of the foregoing and other factors, no assurance can be given as to future results, levels of activity and achievements and neither the Company nor any person assumes responsibility for the accuracy and completeness of these statements.

Non-GAAP Financial Measures

Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should only be read in connection with the Company's condensed consolidated statements of earnings presented in accordance with GAAP.

The Company defines Operating Free Cash Flow as cash provided from operating activities less capital expenditures. For the 12-month period ended September 30, 2009, cash provided from operating activities was $42.7 million and capital expenditures were $12.3 million for a total of $30.4 million.

Under the Investor Relations section of the Company's website at http://www.hain-celestial.com/, the Company will post a schedule detailing the reclassification of promotional expenses for each annual and quarterly period in fiscal years 2009 and 2008 to allow comparison to reported amounts.

THE HAIN CELESTIAL GROUP, INC. Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended Sept. 30, ----------------- 2009 2008 -------- -------- (Unaudited) Note A Net sales $230,484 $286,784 Cost of sales 168,676 217,951 ------- ------- Gross profit 61,808 68,833 SG&A expenses 42,564 53,339 Restructuring expenses 1,779 598 ----- --- Operating income 17,465 14,896 Interest expense and other expenses 3,042 3,984 Equity in net loss of unconsolidated affiliate, net 996 - --- --- Income before income taxes 13,427 10,912 Income tax provision 5,337 4,146 ----- ----- Net income $8,090 $6,766 Loss attributable to noncontrolling interest - 256 --- --- Net income attributable to The Hain Celestial Group, Inc. $8,090 $7,022 ====== ====== Basic net income per share $0.20 $0.17 ===== ===== Diluted net income per share $0.20 $0.17 ===== ===== Weighted average common shares outstanding: Basic 40,701 40,225 ====== ====== Diluted 41,159 41,499 ====== ====== Note A - The three months ended September 30, 2008 includes an adjustment of $2,533 ($12,572 for the fiscal year ended June 30, 2009) to reclassify certain promotional expenses which had the effect of reducing selling, general and administrative expenses and reducing net sales. The reclassification did not affect reported net income. THE HAIN CELESTIAL GROUP, INC. Consolidated Balance Sheets (In thousands) Sept. 30, June 30, ----------- ---------- 2009 2009 ----------- ---------- (Audited) ASSETS Current assets: Cash and cash equivalents $16,647 $41,408 Trade receivables, net 131,838 114,506 Inventories 165,238 158,590 Deferred income taxes 13,333 13,028 Other current assets 17,149 21,599 ------ ------ Total current assets 344,205 349,131 Property, plant and equipment, net 102,786 102,135 Goodwill, net 460,293 456,459 Trademarks and other intangible assets, net 148,055 149,196 Investments in and advances to affiliates 46,328 49,061 Other assets 17,177 17,514 ------ ------ Total assets $1,118,844 $1,123,496 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $127,808 $134,618 Income taxes payable 5,582 1,877 Current portion of long-term debt 43 44 -- -- Total current liabilities 133,433 136,539 Deferred income taxes 24,633 24,615 Other noncurrent liabilities 2,656 2,647 Long-term debt, less current portion 242,036 258,372 ------- ------- Total liabilities 402,758 422,173 Stockholders' equity: Common stock 417 417 Additional paid-in capital 504,752 503,161 Retained earnings 220,375 212,285 Treasury stock (16,326) (16,309) Accumulated other comprehensive income 6,868 1,769 ----- ----- Total stockholders' equity 716,086 701,323 ------- ------- Total liabilities and stockholders' equity $1,118,844 $1,123,496 ========== ==========

Photo: http://www.newscom.com/cgi-bin/prnh/20050324/NYTH131
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com The Hain Celestial Group, Inc.

CONTACT: Ira Lamel, or Mary Anthes, both of The Hain Celestial Group,
Inc., +1-631-730-2200; or David Lilly, or Paige Gruman, both of Kekst and
Company, +1-212-521-4800

Web Site: http://www.hain-celestial.com/

GateHouse Media Announces Third Quarter 2009 Results

FAIRPORT, N.Y., Nov. 5 /PRNewswire-FirstCall/ --

Third Quarter 2009 Highlights -- Total reported revenues were $144.9 million, a 15.0% decline compared to the prior year. -- Total As Adjusted Revenues were $143.5 million, a decline of 14.9% on a same-store basis. -- Reported operating costs and SG&A expense decreased $23.2 million or 16.3% from the prior year. -- Reported net income was $2.0 million as compared to an $18.5 million net loss in the prior year. -- As Adjusted EBITDA was $27.3 million, a 13.6% decline on a same-store basis. -- Levered Free Cash Flow per share was $0.19, an increase of 11.8% versus $0.17 for the prior year.

GateHouse Media, Inc. (the "Company" or "GateHouse Media") (OTC Pink Sheets: GHSE) today reported financial results for the quarter ended September 30, 2009.

The Company reported total revenues of $144.9 million, a decline of 15.0% versus prior year. As Adjusted Revenues were $143.5 million for the quarter, down 14.9% on a same-store basis versus the prior year quarter. The decline in same-store revenue was driven primarily by the print classified and local advertising categories, which were down 28.5% and 13.7%, respectively. Both categories continue to be impacted by the recession. Circulation revenue declined 3.6% in the quarter on a same-store basis.

In the quarter, reported operating and SG&A costs declined by $23.2 million or 16.3%. Same-store expenses declined by 15.2%, driven by compensation expense which declined 14.3%. Expense declines in the quarter reflect permanent cost reduction initiatives implemented primarily in the first half of the year. In addition, declines in newsprint pricing and consumption resulted in a 37.8% reduction in newsprint expense. Although newsprint prices have begun to increase, the Company anticipates it will continue to benefit from moderate newsprint prices and consumption declines during the remainder of the year.

Reported operating income for the third quarter was $14.0 million, a 44.2% increase from $9.7 million in the prior year. As Adjusted EBITDA for the quarter was $27.3 million, which was down 13.6% on a same-store basis from the prior year. As Adjusted EBITDA performance is improving as the Company realizes the full benefit of permanent cost reduction initiatives.

Levered Free Cash Flow for the third quarter was $11.1 million or $0.19 per share. This represents an 11.8% increase from $0.17 in the prior year, driven by lower interest expense and capital expenditures. Interest expense for the quarter was $15.7 million, down $5.9 million or 27.1% as compared to the prior year. The decline in interest expense was due primarily to lower LIBOR rates.

Non-cash compensation expense for Restricted Stock Grants in the third quarter was $0.7 million.

One-time costs and other non-cash expenses in the quarter were $0.9 million, and related primarily to reorganization and expense control initiatives introduced to realize permanent expense savings.

Commenting on GateHouse Media's results, Mike Reed, Chief Executive Officer, said, "While current economic conditions continue to present a challenging revenue environment, the permanent cost reduction initiatives we implemented this year resulted in higher EBITDA margins and increased levered free cash flow in the quarter.

"Revenue trends are showing signs of potential stabilization in terms of nominal dollars. Our total same-store revenue declined 14.9% in the third quarter, a slight improvement over 15.2% and 16.3% in the first and second quarters, respectively. September was our strongest month based on year-over-year revenue performance and we are encouraged that this trend may continue as we enter what has historically been our seasonally best quarter.

"Due to the cost initiatives put in place in the first half of the year, our As Adjusted EBITDA margin has improved each quarter, reaching 19.0% in the third quarter, compared to 16.6% and 6.7% in the first and second quarters, respectively. Solid As Adjusted EBITDA results, combined with lower interest expense and capital spending resulted in levered free cash flow of $0.19 per share in the third quarter compared to $0.16 per share in the second quarter and $0.17 last year.

"In addition to ongoing cost reduction initiatives, we continue to focus on strengthening our balance sheet, in particular, working capital and liquidity. During the third quarter, we were able to improve our short term liquidity position by retiring $16.0 million of short term debt at a discount."

About GateHouse Media, Inc.

GateHouse Media, Inc., headquartered in Fairport, New York, is one of the largest publishers of locally based print and online media in the United States as measured by its 88 daily publications. GateHouse Media currently serves local audiences of more than 10 million per week across 21 states through hundreds of community publications and local websites. GateHouse Media is traded in the over-the-counter market under the symbol "GHSE."

For more information regarding GateHouse Media and to be added to our email distribution list, please visit http://www.gatehousemedia.com/.

Non-GAAP Financial Measures

A non-GAAP financial measure is generally defined as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable GAAP measure. GateHouse Media defines and uses Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow, non-GAAP financial measures, as set forth below. The Company strongly urges stockholders and other interested persons not to rely on any single financial measure to evaluate its business. In addition, because Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow are not measures of financial performance under GAAP and are susceptible to varying calculations, these non-GAAP measures, as presented in this press release, may differ from and may not be comparable to similarly titled measures used by other companies.

Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow

The Company defines Adjusted EBITDA as income (loss) from continuing operations before interest, income tax expense (benefit), depreciation and amortization and other non-recurring or non-cash items. The Company defines As Adjusted EBITDA as Adjusted EBITDA before other non-cash items such as non-cash compensation and non-recurring integration and reorganization costs. The Company defines As Adjusted Revenues as total revenues plus revenues of discontinued operations less revenues from non-wholly owned subsidiaries. The Company defines Levered Free Cash Flow as As Adjusted EBITDA less capital expenditures, cash taxes and interest expense.

Management's Use of Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow

Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow are not measurements of financial performance under GAAP and should not be considered in isolation or as alternatives to income from operations, net income (loss), cash flow from continuing operating activities or any other measure of performance or liquidity derived in accordance with GAAP. GateHouse Media's management believes these non-GAAP measures, as defined above, are useful to investors for the following reasons:

-- Evaluating performance and identifying trends in day-to-day performance because the items excluded have little or no significance on its day-to-day operations; -- Providing assessments of controllable expenses that afford management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance; and -- Indicators for management to determine if adjustments to current spending decisions are needed.

Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow provide GateHouse Media with measures of financial performance, independent of items that are beyond the control of management in the short-term, such as depreciation and amortization, taxation and interest expense associated with its capital structure. These metrics measure GateHouse Media's financial performance based on operational factors that management can impact in the short-term, namely the cost structure or expenses of the organization. Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow are some of the metrics used by senior management and the Board of Directors to review the financial performance of the business on a monthly basis. In addition, GateHouse Media's management utilizes these metrics to evaluate the Company's performance, along with other criteria, to determine the funds available for paying the quarterly dividend.

Forward-Looking Statements

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to various risks and uncertainties, including without limitation, statements relating to progress made by the Company in its integration efforts, growth in revenues and cash flow, on-line revenues, expense reduction efforts and potential acquisition and sale opportunities. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "would," "project," "predict," "continue" or other similar words or expressions. Forward looking statements are based on certain assumptions or estimates, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Although the Company believes that the expectations reflected in such forward looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. Factors which could have a material adverse effect on the Company's operations and future prospects or which could cause events or circumstances to differ from the forward-looking statements include, but are not limited to, the condition of the economy and the credit markets generally, the Company's ability to maintain adequate liquidity and financing sources and an appropriate level of debt, the Company's ability to close on a timely basis upon announced or contemplated transactions, unexpected liabilities arising from any transaction or that the Company will not receive the expected benefits from the transaction, the Company's limited operating history on a combined basis, the Company's ability to generate sufficient cash flow to cover required interest, long-term obligations and dividends, the effect of the Company's indebtedness and long-term obligations on its liquidity, the Company's ability to effectively manage its growth, unforeseen costs associated with the acquisition of new properties, the Company's ability to find suitably priced acquisitions, the Company's ability to integrate acquired assets and businesses, any increases in the price or reduction in the availability of newsprint, seasonal and other fluctuations affecting the Company's revenues and operating results, any declines in circulation, the Company's ability to obtain additional capital on terms acceptable to it, the Company's vulnerability to economic downturns, regulatory changes or acts of nature in certain geographic areas, increases in competition for skilled personnel, departure of key officers, increases in market interest rates, the cost and difficulty of complying with increasing and evolving regulation, and other risks detailed from time to time in the Company's SEC reports, including but not limited to its most recent Annual Report on Form 10-K filed with the SEC under Commission File Number 001-33091. When considering forward- looking statements, readers should keep in mind the risk factors and other cautionary statements in such SEC filings. Readers are also cautioned not to place undue reliance on any of these forward-looking statements, which reflect management's views as of the date of this press release. The factors discussed above and the other factors noted in the Company's SEC filings could cause actual results to differ significantly from those contained in any forward-looking statement. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements and expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

GATEHOUSE MEDIA, INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations (In thousands, except share and per share data) Three Three Nine Nine months months months months ended ended ended ended September September September September 30, 2009 30, 2008 30, 2009 30, 2008 ---------- ---------- ---------- ---------- Revenues: Advertising $100,901 $122,979 $302,996 $372,087 Circulation 35,750 37,666 106,746 109,200 Commercial printing and other 8,282 9,891 25,281 30,462 ---------- ---------- ---------- ---------- Total revenues 144,933 170,536 435,023 511,749 Operating costs and expenses: Operating costs 80,678 95,625 254,811 286,695 Selling, general, and administrative 38,618 46,889 124,993 144,090 Depreciation and amortization 12,053 16,693 43,774 53,238 Integration and reorganization costs 199 1,505 1,431 5,632 Impairment of long-lived assets - 118 206,089 102,635 (Gain) loss on sale of assets (606) 4 (420) 210 Goodwill and mastheads impairment - - 275,310 333,554 ---------- ---------- ---------- ---------- Operating income (loss) 13,991 9,702 (470,965) (414,305) Interest expense 15,727 21,587 49,214 69,220 Amortization of deferred financing costs 340 340 1,020 1,504 Gain on early extinguishment of debt (7,538) - (7,538) - Loss on derivative instrument 3,552 3,769 9,465 5,525 Other (income) expense (210) (41) 462 (5) ---------- ---------- ---------- ---------- Income (loss) from continuing operations before income taxes 2,120 (15,953) (523,588) (490,549) Income tax expense (benefit) (6) (207) 308 (13,523) ---------- ---------- ---------- ---------- Income (loss) from continuing operations 2,126 (15,746) (523,896) (477,026) Loss from discontinued operations, net of income taxes (78)(a) (2,759) (2,442)(a) (13,520) ---------- ---------- ---------- --------- Net income (loss) $2,048 $(18,505) $(526,338) $(490,546) Net loss attributable to noncontrolling interest $114 $- $336 $- ---------- ---------- ---------- --------- Net income (loss) attributable to GateHouse Media $2,162 $(18,505) $(526,002) $(490,546) ========== ========== ========== ========== Income (loss) per share: Basic and diluted: Income (loss) from continuing operations attributable to GateHouse Media $0.04 $(0.28) $(9.12) $(8.36) Loss from discontinued operations, attributable to GateHouse Media, net of income taxes $- (0.05) $(0.04) $(0.24) ---------- ---------- ---------- ---------- Net income (loss) attributable to GateHouse Media $0.04 $(0.33) $(9.16) $(8.60) ========== ========== ========== ========== Dividends declared per share $- $- $- $0.20 Basic weighted average shares outstanding 57,478,622 57,110,077 57,380,638 57,034,723 ---------- ========== ---------- ========== Diluted weighted average shares outstanding 57,478,622 57,110,077 57,380,638 57,034,723 ========== ========== ========== ========== (a) Included in income from discontinued operations, net of taxes are total revenues of $3 for the three months ended September 30, 2009 primarily related to Kansas City, KS on-line publication and $769 for the nine months ended September 30, 2009 primarily from Derby, KS, Charles City, IA, New Hampton, IA and Kansas City, KS on-line publication. GATEHOUSE MEDIA, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except share data) September 30, December 31, 2009 2008 ---------- ---------- (unaudited) Assets Current assets: Cash and cash equivalents $12,513 $11,744 Accounts receivable, net of allowance for doubtful accounts of $4,356 and $6,024 at September 30, 2009 and December 31, 2008, respectively 63,472 75,274 Inventory 6,617 10,790 Prepaid expenses 4,750 4,576 Other current assets 3,789 3,808 ---------- ---------- Total current assets 91,141 106,192 Property, plant, and equipment, net of accumulated depreciation of $75,709 and $57,400 at September 30, 2009 and December 31, 2008, respectively 176,987 194,401 Goodwill 14,361 261,332 Intangible assets, net of accumulated amortization of $124,526 and $100,132 at September 30, 2009 and December 31, 2008, respectively 302,180 565,033 Deferred financing costs, net 6,035 7,055 Other assets 9,529 2,489 Long-term assets held for sale 1,433 13,119 ---------- ---------- Total assets $601,666 $1,149,621 ========== ========== Liabilities and Stockholders' Equity (Deficit) Current liabilities: Current portion of long-term liabilities $2,589 $1,879 Short-term note payable - 11,538 Short-term debt 9,000 17,000 Accounts payable 8,341 20,378 Accrued expenses 31,576 31,395 Accrued interest 3,182 7,895 Deferred revenue 28,680 28,444 ---------- ---------- Total current liabilities 83,368 118,529 Long-term liabilities: Long-term debt 1,197,000 1,195,000 Long-term liabilities, less current portion 16,441 16,658 Derivative instruments 40,583 34,957 Pension and other postretirement benefit obligations 13,086 13,555 ---------- ---------- Total liabilities 1,350,478 1,378,699 ---------- ---------- Stockholders' equity (deficit): Common stock, $0.01 par value, 150,000,000 shares authorized at September 30, 2009; 58,313,868 and 58,213,868 shares issued, and 58,009,221 and 58,020,693 outstanding at September 30, 2009 and December 31, 2008, respectively 568 568 Additional paid-in capital 828,346 825,580 Accumulated other comprehensive loss (47,765) (51,604) Accumulated deficit (1,529,321) (1,003,319) Treasury stock, at cost, 204,647 and 193,175 shares at September 30, 2009 and December 31, 2008, respectively (304) (303) ---------- ---------- Total GateHouse Media stockholders' deficit (748,476) (229,078) Noncontrolling Interest (336) - ---------- ---------- Total stockholders' deficit (748,812) (229,078) ---------- ---------- Total liabilities and stockholders' deficit $601,666 $1,149,621 ========== ========== GATEHOUSE MEDIA, INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Cash Flows (In thousands) Nine months Nine months ended ended September 30, September 30, 2009 2008 ------------- ------------- Cash flows from operating activities: Net loss $(526,338) $(490,546) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 43,843 54,845 Amortization of deferred financing costs 1,020 1,504 Loss on derivative instrument 9,465 5,525 Non-cash compensation expense 2,766 2,942 Deferred income taxes - (13,375) (Gain) loss on sale of assets (420) 210 Gain on early extinguishment of debt (7,538) - Pension and other postretirement benefit obligations (302) (581) Non-cash interest expense - 618 Impairment of long-lived assets 208,459 111,932 Goodwill and masthead impairment 275,310 340,575 Changes in assets and liabilities, net of sales/acquisitions: Accounts receivable, net 11,317 10,936 Inventory 4,136 (1,642) Prepaid expenses (218) 317 Other assets (3,699) (19) Accounts payable (12,037) 4,842 Accrued expenses (140) (3,006) Accrued interest (4,713) (2,069) Deferred revenue 391 (114) Other long-term liabilities 638 (628) --------- --------- Net cash provided by operating activities 1,940 22,266 --------- --------- Cash flows from investing activities: Purchases of property, plant, and equipment (1,964) (7,541) Proceeds from sale of publications and other assets 11,069 45,700 Acquisitions, net of cash acquired (275) (25,611) --------- --------- Net cash provided by investing activities 8,830 12,548 --------- --------- Cash flows from financing activities: Payment of debt issuance costs - (6) Borrowings under term loans - 19,505 Repayments under short-term debt (6,000) - Repayments under short-term note payable (4,000) (19,517) Borrowings under revolving credit facility - 39,700 Repayments under revolving credit facility - (50,700) Purchase of treasury stock (1) (67) Payment of dividends - (34,731) Issuance of subsidiary preferred stock - 11,500 Payment of subsidiary preferred stock issuance costs - (176) --------- --------- Net cash used in financing activities (10,001) (34,492) --------- --------- Net increase in cash and cash equivalents 769 322 Cash and cash equivalents at beginning of period 11,744 12,096 --------- --------- Cash and cash equivalents at end of period $12,513 $12,418 ========= ========= GATEHOUSE MEDIA, INC. AND SUBSIDIARIES As Adjusted EBITDA (In thousands) Three months Three months Nine months Nine months ended ended ended ended September September September September 30, 2009 30, 2008 30, 2009 30, 2008 ---------- ---------- ---------- ---------- Income (loss) from continuing operations $2,126 $(15,746) $(523,896) $(477,026) Income tax expense (benefit) (6) (207) 308 (13,523) Loss on derivative instrument (1) 3,552 3,769 9,465 5,525 Gain on early extinguishment of debt (7,538) - (7,538) - Amortization of deferred financing costs 340 340 1,020 1,504 Write-off of financing costs - - 743 - Interest expense 15,727 21,587 49,214 69,220 Impairment of long-lived assets - 118 206,089 102,635 Depreciation and amortization 12,053 16,693 43,774 53,238 Goodwill and masthead impairment - - 275,310 333,554 -------- -------- -------- -------- Adjusted EBITDA from continuing operations 26,254 26,554 54,489 75,127 Non-cash compensation and other expense 1,672 3,323 6,492 14,070 Non-cash portion of postretirement benefits expense (149) 119 (302) 1,012 Integration and reorganization costs 199 1,505 1,431 5,632 (Gain) loss on sale of assets (602) 4 (368) 210 Income (loss) from discontinued operations (39) 1,166 7 4,678 -------- -------- -------- -------- As Adjusted EBITDA 27,335 32,671 61,749 100,729 Net capital expenditures (400) (1,633) (1,964) (7,422) Cash taxes (329) 202 (566) 146 Interest paid (15,478) (21,456) (52,922) (69,089) -------- -------- -------- -------- Levered Free Cash Flow $11,128 $9,784 $6,297 $24,364 ======== ======== ======== ======== (1) Non-cash loss on derivative instruments is related to interest rate swap agreements which are financing related and are excluded from Adjusted EBITDA. GATEHOUSE MEDIA, INC. AND SUBSIDIARIES As Adjusted Revenues (In thousands) Three months Three months Nine months Nine months ended ended ended ended September September September September 30, 2009 30, 2008 30, 2009 30, 2009 --------- --------- ---------- --------- Total revenues from continuing operations $144,933 $170,536 $435,023 $511,749 Revenues from discontinued operations 3 2,989 769 18,125 Revenues from non-wholly owned subsidiary (1,433) (2,099) (2,947) (2,730) -------- -------- -------- -------- As Adjusted Revenues $143,503 $171,426 $432,845 $527,144 ======== ======== ======== ========

GateHouse Media, Inc.

CONTACT: Melinda A. Janik, Chief Financial Officer, +1-585-598-0031, or
Mark Maring, Investor Relations, +1-585-598-6874

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

The Princeton Review Reports Third Quarter and Nine Month 2009 Financial Results-- Revenue for third quarter of $34.3 million, compared to $34.7 million in 2008 -- Operating income from continuing operations for third quarter of $0.7 million, compared to $1.3 million in 2008 -- Revenue increased 5.8% to $110.6 million for nine month period

FRAMINGHAM, Mass., Nov. 5 /PRNewswire-FirstCall/ -- The Princeton Review, Inc. , a leading provider of test preparation and supplemental educational services, today announced revenue of $34.3 million and operating income from continuing operations of $0.7 million for the third quarter ended September 30, 2009; as well as revenue of $110.6 million and operating income from continuing operations of $1.3 million for the nine months ended September 30, 2009.

For the quarter ended September 30, 2009, revenue decreased 1.2% to $34.3 million, compared to $34.7 million in 2008. The Princeton Review reported operating income from continuing operations of $0.7 million compared to $1.3 million in 2008. The 2009 three month results include restructuring and acquisition expenses of $1.4 million compared to $0.5 million in 2008.

For the nine months ended September 30, 2009, revenue increased 5.8% to $110.6 million, from $104.5 million in the same period in the prior year. For the nine-month period, the Company's operating income from continuing operations was $1.3 million in 2009 compared to $3.1 million in 2008. The 2009 nine month results include restructuring and acquisition expenses of $5.5 million compared to $2.2 million in 2008.

On October 19, 2009 the Company entered into a definitive agreement to acquire Penn Foster Education Group, Inc., one of the oldest and largest post-secondary and online career education companies in the United States. The company operates three accredited educational institutions--Penn Foster College, Penn Foster Career School, and Penn Foster High School--that collectively serve more than 223,000 students in over 150 countries.

CEO Comment

"Our financial results demonstrate achievement of sustainable profitability, even in the midst of a difficult economy. Due to the positive impact of earlier cost reductions and the stable performance of our core Test Prep business, we are generating positive cash flow," said Michael Perik, CEO and President of The Princeton Review. "We are investing in our customer supporting technology, including expansion of our online offerings to extend our market reach, bring products to market more quickly, and meet evolving consumer demand. In addition, the pending acquisition of Penn Foster gives us entry into the worker retraining market and strengthens our marketing and partnership capabilities. We expect that these actions will deliver meaningful financial benefit over time."

Test Preparation Services

For the third quarter of 2009, Test Preparation Services division revenue remained flat at $34.1 million, compared to the same period in 2008. Incremental revenue from the acquisition of The Princeton Review's Southern California franchises in July 2008, and increased revenue from new institutional contracts and growth in online revenues, were offset by a decrease in organic revenue due to more students purchasing lower priced tutoring and classroom offerings.

For the nine month period, Test Preparation Services revenue increased by $1.2 million, or 1.4%, to $86.7 million compared to $85.5 million for the same period in 2008. Incremental revenue from the Test Services, Inc. acquisition in March 2008 and the Southern California franchise acquisition were partially offset by decreased organic revenue due to the same trends affecting the third quarter.

Operating income in the Test Preparation Services division was $9.3 million for the third quarter of 2009, compared to $8.4 million for the third quarter of 2008. For the nine month period, operating income in the Test Prep division was $15.0 million compared to $17.8 million for the same period in 2008. Lower gross margin due to a decline in average revenue per enrollment and incremental amortization and depreciation due to 2008 acquisitions are the primary reasons for the decline in Test Preparation Services division operating income.

Supplemental Educational Services (SES)

The SES division generates substantially all its revenues and profits during the traditional school year which runs from September to June. For the third quarter of 2009, SES revenues decreased by $0.5 million, or 71.4%, to $0.2 million compared to $0.7 million in the third quarter of 2008. For the nine month period, SES revenue increased by $4.8 million, or 25.1%, to $23.9 million, from $19.1 million in 2008. The 2009 increases resulted from new market expansion.

Operating loss in the SES division was $3.4 million for the third quarter of 2009 compared to $2.4 million in the third quarter of 2008. For the nine month period, SES division operating income was $2.4 million compared to $2.1 million in 2008 due to increased revenue from new market expansion.

Conference Call Details

The Princeton Review will review its third quarter 2009 financial results and provide additional business highlights on a conference call on November 5, 2009 at 4:30 p.m. Eastern Standard Time. A copy of this earnings release is available at http://ir.princetonreview.com/releases.cfm?type=earnings. To participate on the live call, investors should dial (719) 325-2185 approximately ten minutes prior to the start time. In addition, the call will be available via live webcast over the Internet. To access the live webcast of the conference call, please go to http://ir.princetonreview.com/events.cfm 15 minutes prior to the start time of the call to register. An archived webcast will be available on the Company's website at http://ir.princetonreview.com/events.cfm. Additionally, a replay of the call can be accessed by dialing either (888) 203-1112 or (719) 457-0820, passcode 4938225, through December 5, 2009.

About The Princeton Review, Inc.

The Princeton Review has been a pioneer and leader in helping students achieve their higher education goals for more than 25 years through college and graduate school test preparation and private tutoring. With more than 165 print and digital publications and a free website, http://www.princetonreview.com/, the Company provides students and their parents with the resources to research, apply to, prepare for, and learn how to pay for higher education. The Princeton Review also partners with schools and guidance counselors throughout the U.S. to assist in college readiness, test preparation and career planning services, helping more students pursue postsecondary education.

Safe Harbor Statement

All statements in this press release that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as "believe," "intend," "expect," "may," "could," "would," "will," "should," "plan," "project," "contemplate," "anticipate," or similar statements. Because these statements reflect The Princeton Review's current views concerning future events, these forward-looking statements are subject to risks and uncertainties. The Princeton Review's actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors, including, but not limited to, satisfaction of closing conditions for the acquisition and related financings; the possibility that the acquisition or related financings will not be completed, or if completed, not completed on a timely basis; demand for the company's products and services; the company's ability to compete effectively and adjust to rapidly changing market dynamics; the timing of revenue recognition from significant contracts with schools and school districts; market acceptance of the company's newer products and services; continued federal and state focus on assessment and remediation in K-12 education; the Company's ability to assimilate and integrate certain of the operations of Penn Foster; unanticipated acquisition related costs and negative effects on our reported results of operations from acquisition-related charges; our ability to achieve expected synergies and operating efficiencies in the acquisition within the expected time-frames or at all; the potential negative effects from the substantial amount of outstanding indebtedness to be incurred to finance the acquisition; the ability to meet debt service requirements; availability and terms of capital, including following the transaction; liquidity uncertainties; and the other factors described under the caption "Risk Factors" in The Princeton Review's most recent Forms 10-K and 10-Q filed with the Securities and Exchange Commission. The Princeton Review undertakes no obligation to update publicly any forward-looking statements contained in this press release.

- Tables to Follow - THE PRINCETON REVIEW, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ------------------ ------------------- Revenue Test Preparation Services $34,090 $34,050 $86,673 $85,472 SES Services 235 699 23,947 19,071 ------------------ ------------------- Total revenue 34,325 34,749 110,620 104,543 ------------------ ------------------- Cost of revenue Test Preparation Services 11,237 10,634 30,719 28,492 SES Services 486 544 12,048 8,599 ------------------ ------------------- Total cost of revenue 11,723 11,178 42,767 37,091 ------------------ ------------------- Gross profit 22,602 23,571 67,853 67,452 ------------------ ------------------- Operating expenses Selling, general and administrative 20,518 21,741 61,065 62,082 Restructuring 1,131 482 5,179 2,233 Acquisition expenses 285 - 285 - ------------------ ------------------- Total operating expenses 21,934 22,223 66,529 64,315 ------------------ ------------------- Operating income from continuing operations 668 1,348 1,324 3,137 Interest (expense) income, net (134) (400) (647) (272) Other income (expense) 1 - 255 (2) ------------------ ------------------- Income from continuing operations before income taxes 535 948 932 2,863 Provision for income taxes (391) (499) (512) (1,162) ------------------ ------------------- Income from continuing operations 144 449 420 1,701 Discontinued operations Loss from discontinued operations (405) (7,764) (711) (9,357) Gain (loss) from disposal of discontinued operations - (240) 913 (240) Benefit for income taxes 29 11 78 40 ------------------ ------------------- Income (loss) from discontinued operations (376) (7,993) 280 (9,557) Net income (loss) (232) (7,544) 700 (7,856) Dividends and accretion on Preferred Stock (1,252) (1,191) (3,667) (3,489) ------------------ ------------------- Net loss attributed to common stockholders $(1,484) $(8,735) $(2,967) $(11,345) ================== =================== Earnings (loss) per share Basic and diluted: Loss from continuing operations $(0.03) $(0.02) $(0.10) $(0.06) Income (loss) from discontinued operations (0.01) (0.24) 0.01 (0.30) ------------------ ------------------- Loss attributed to common shareholders $(0.04) $(0.26) $(0.09) $(0.35) ------------------ ------------------- Weighted average shares used in computing income (loss) per share Basic and diluted 33,725 33,498 33,728 31,973 ------------------ ------------------- REVU-E

The Princeton Review, Inc.

CONTACT: Stephen C. Richards of The Princeton Review, Inc.,
+1-508-663-5053, srichards@review.com

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

CBS Corporation Reports Third Quarter 2009 Results

NEW YORK, Nov. 5 /PRNewswire-FirstCall/ -- CBS Corporation today reported results for the third quarter ended September 30, 2009.

"Through this extraordinary time, Leslie and his team have managed CBS not simply to survive but to truly thrive," said Sumner Redstone, Executive Chairman, CBS Corporation. "The strong performance of the CBS content businesses continues to build audiences, as well as our value proposition for advertisers. At the same time we've further solidified our financial position. I feel very good about what the future holds for CBS, especially given the improving economic outlook."

"The operating environment for our businesses continues to improve and we are finishing the year with strong momentum," said Leslie Moonves, President and Chief Executive Officer, CBS Corporation. "So far this year, each quarter has been better than the one before, with the third quarter showing significant improvement over the second, just as we expected. Going forward, we have many reasons for optimism as we look to 2010: In the new fall season, we are not only again the #1 television network, we have also grown our audience year-over-year. Our premium cable business continues to enhance its profile and once again added subscribers during the quarter. We've sold five series into domestic syndication this year, and global demand for our programming continues to grow. And on the local front, pacing continues rising steadily for TV, radio and outdoor, and we expect that with our new streamlined cost structure, margins will improve significantly going forward as well."

Moonves continued: "Over the long term, we continue to believe that great content is the best driver of growth in this industry, which is why we've been so focused on building our content businesses across the Company. To highlight this strategy, we are realigning our business segments beginning in the fourth quarter. Our aim is to offer greater transparency so others can continue to view CBS the way we do - as a collection of leading content businesses in all the right areas of distribution - and be better able to gauge our progress against our long-term goals going forward."

Third Quarter 2009 Results

Revenues for the third quarter of 2009 totaled $3.35 billion compared to $3.38 billion for the same prior-year quarter due to lower advertising sales largely offset by higher syndication sales.

Operating income before depreciation and amortization ("OIBDA") for the third quarter of 2009 was $565.6 million compared with a loss of $13.48 billion for last year's third quarter. Operating income was $418.2 million for the third quarter of 2009 versus an operating loss of $13.62 billion for the same quarter last year.

Results for the third quarter of 2009 included a pre-tax non-cash impairment charge of $31.7 million ($23.1 million, net of tax) and results for 2008 included pre-tax non-cash impairment charges of $14.12 billion ($12.69 billion, net of tax). Before impairment charges, third quarter 2009 OIBDA was $597.3 million and operating income was $449.9 million compared with OIBDA of $638.8 million and operating income of $499.1 million for the third quarter of 2008.

Net earnings for the third quarter of 2009 were $207.6 million versus a net loss of $12.46 billion for the same quarter last year and diluted earnings per share were $.30 in 2009 compared to a loss of $18.58 per diluted share in 2008. Before impairment charges, adjusted net earnings for the third quarter of 2008 were $265.9 million and adjusted diluted earnings per share were $.39.

Results for the third quarter of 2009 included three discrete items: the pre-tax non-cash impairment charge of $31.7 million ($23.1 million, net of tax), which was related to the disposition of radio stations, offset by a settlement of $28.0 million ($16.8 million, net of tax) related to the favorable resolution of certain disputes regarding a previously disposed business and a tax benefit of $41.8 million resulting from the settlement of federal and state income tax audits. Together, these items contributed $.05 to diluted earnings per share for the third quarter of 2009.

Free cash flow for the third quarter of 2009 was a net cash outflow of $23.6 million versus a net cash outflow of $38.1 million for the third quarter of 2008.

Nine Months 2009 Results

Revenues were $9.52 billion for the first nine months of 2009 versus $10.42 billion for the same prior-year period reflecting lower advertising sales partially offset by higher affiliate revenues.

OIBDA for the first nine months of 2009 was $1.20 billion versus a loss of $12.08 billion for the same prior-year period, and operating income was $767.9 million versus an operating loss of $12.46 billion for the same prior-year period. Before impairment charges, OIBDA was $1.23 billion and operating income was $799.6 million for the first nine months of 2009 compared with OIBDA of $2.04 billion and operating income of $1.66 billion for the same prior-year period.

Net earnings were $167.7 million, or $.25 per diluted share, for the first nine months of 2009 versus a net loss of $11.81 billion, or a loss of $17.64 per diluted share, for the same prior-year period. Before impairment charges and gain on dispositions, adjusted net earnings for the first nine months of 2008 were $840.3 million and adjusted diluted earnings per share were $1.25.

Free cash flow was $532.4 million for the first nine months of 2009 versus $1.36 billion for the same prior-year period.

Business Outlook

The Company continues to expect full year 2009 OIBDA to be in the range of $1.725 billion to $1.925 billion.

Consolidated and Segment Results

In the fourth quarter of 2009, the Company will realign its operating segments to more effectively highlight its long-term strategy of investing in content businesses and capitalizing on its strong local presence. The tables below present revenues, OIBDA and operating income (loss), under its previous segment structure as the Company did not operate under the new segment structure during the periods presented. The Company has included a comparison of this view with third quarter revenues and OIBDA under the new segment presentations on page 13 of this earnings release.

Reconciliations of all non-GAAP measures to reported results have been included at the end of this earnings release.

(Dollars in millions) Three Months Ended Nine Months Ended September 30, September 30, Revenues 2009 2008 2009 2008 -------- -------- -------- -------- -------- Television $2,269.0 $2,075.9 $6,447.1 $6,781.5 Radio 318.9 392.5 900.6 1,172.4 Outdoor 424.9 549.3 1,238.9 1,644.3 Interactive 121.3 142.3 381.3 235.4 Publishing 230.4 225.0 573.5 612.6 Eliminations (14.5) (9.3) (25.2) (22.7) ------------- --------- --------- --------- --------- Total Revenues $3,350.0 $3,375.7 $9,516.2 $10,423.5 ------------- --------- --------- --------- --------- Three Months Ended Nine Months Ended September 30, September 30, OIBDA 2009 2008 2009 2008 -------- -------- -------- -------- -------- Television $483.9 $412.8 $1,019.3 $1,373.6 Radio 93.1 139.4 240.6 420.3 Outdoor 32.6 113.9 99.9 369.0 Interactive 4.1 3.7 18.0 (12.0) Publishing 28.4 25.8 36.6 59.9 Corporate (34.8) (38.5) (98.0) (106.4) Residual costs (7.9) (18.3) (79.8) (63.2) Eliminations (2.1) - (2.1) - ------------- --------- --------- --------- --------- OIBDA Before Impairment Charges 597.3 638.8 1,234.5 2,041.2 ------------- --------- --------- --------- --------- Impairment Charges (31.7) (14,117.2) (31.7) (14,117.2) ------------- --------- --------- --------- --------- Total OIBDA $565.6 $(13,478.4) $1,202.8 $(12,076.0) ------------- --------- --------- --------- --------- Three Months Ended Nine Months Ended September 30, September 30, Operating Income (Loss) 2009 2008 2009 2008 -------- -------- -------- -------- -------- Television $440.6 $367.4 $889.7 $1,240.3 Radio 82.8 130.6 212.5 396.3 Outdoor (34.9) 51.8 (97.9) 188.3 Interactive (15.6) (14.0) (41.3) (38.0) Publishing 26.6 23.4 30.6 52.6 Corporate (39.6) (41.8) (112.1) (116.0) Residual costs (7.9) (18.3) (79.8) (63.2) Eliminations (2.1) - (2.1) - ------------ --------- --------- --------- --------- Operating Income Before Impairment Charges 449.9 499.1 799.6 1,660.3 ------------ --------- --------- --------- --------- Impairment Charges (31.7) (14,117.2) (31.7) (14,117.2) ------------ --------- --------- --------- --------- Total Operating Income (Loss) $418.2 $(13,618.1) $767.9 $(12,456.9) ------------ --------- --------- --------- ---------

Television (CBS Television Network, CBS Television Stations, CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS College Sports Network, CBS Films and Showtime Networks)

Television revenues for the third quarter of 2009 increased 9% to $2.27 billion from $2.08 billion for the same prior-year period primarily due to higher television license fees and affiliate revenues partially offset by lower local advertising sales. The following table presents revenues by type for the Television segment for the three months ended September 30, 2009 and 2008.

(Dollars in millions) Three Months Ended September 30, % of % of Television Revenues by Type 2009 Total 2008 Total ---------------------- -------- ----- -------- ----- Advertising sales $1,003.3 44% $1,061.1 51% Television license fees 799.2 35 585.5 28 Affiliate revenues 335.1 15 300.6 14 Home entertainment 47.0 2 52.4 3 Other 84.4 4 76.3 4 ----- ---- - ---- - Total Television Revenues $2,269.0 100% $2,075.9 100% ---------------- -------- --- -------- ---

Television license fees increased 36% due to higher domestic syndication sales in 2009, which included the first cycle sales of Medium, Criminal Minds, Ghost Whisperer, Everybody Hates Chris and Numb3rs, compared to 2008, which included license fees for the domestic syndication sale of CSI: NY. Affiliate revenues increased 11% primarily due to growth in subscriptions and rate increases at Showtime Networks and CBS College Sports Network, and higher retransmission revenues. Advertising sales decreased 5% due to softness in the local advertising marketplace and lower political advertising sales.

Television OIBDA for the third quarter of 2009 increased 17% to $483.9 million from $412.8 million for the same prior-year period primarily due to higher profits from syndication sales and higher affiliate revenues partially offset by lower local advertising sales and higher television series costs reflecting the impact of the 2008 Writers Guild of America strike which reduced programming costs for the 2007/2008 broadcast season. Operating income for the third quarter of 2009 was $440.6 million versus an operating loss of $7.58 billion for the same prior-year period, which included an impairment charge of $7.94 billion to reduce the carrying value of goodwill and intangible assets.

Radio (CBS Radio)

Radio revenues for the third quarter of 2009 decreased 19% to $318.9 million from $392.5 million for the same prior-year period, primarily due to continued weakness in the radio advertising marketplace.

Radio OIBDA for the third quarter of 2009 decreased 33% to $93.1 million from $139.4 million for the same prior-year period as lower talent and employee-related costs resulting from restructuring and cost-savings initiatives were more than offset by lower advertising revenues. Operating income for the third quarter of 2009 was $51.1 million, which included an impairment charge of $31.7 million resulting from radio station divestitures, versus an operating loss of $3.19 billion for the same prior-year period, which included an impairment charge of $3.32 billion to reduce the carrying value of goodwill and intangible assets.

Outdoor (CBS Outdoor)

Outdoor revenues for the third quarter of 2009 decreased 23% to $424.9 million from $549.3 million for the same prior-year period, reflecting the soft worldwide advertising marketplace and the unfavorable impact of foreign exchange rate changes. In constant dollars, Outdoor revenues decreased 19% from the third quarter of 2008. Americas (comprising North and South America) revenues for the third quarter of 2009 decreased 20% (18% in constant dollars) to $280.3 million from $349.3 million for the same prior-year period and Europe and Asia revenues decreased 28% (21% in constant dollars) to $144.6 million from $200.0 million for the same quarter last year.

Outdoor OIBDA for the third quarter of 2009 decreased 71% to $32.6 million from $113.9 million for the same prior-year period principally driven by the advertising decline. Outdoor's franchise and lease costs are generally fixed in nature and with lower revenues, certain transit contracts are operating at their minimum guarantee levels, which significantly reduced OIBDA margins in the third quarter of 2009. For the third quarter of 2009, Outdoor reported an operating loss of $34.9 million versus an operating loss of $2.80 billion for the same prior-year period, which included an impairment charge of $2.86 billion to reduce the carrying value of goodwill and intangible assets.

Interactive (CBS Interactive)

Interactive revenues for the third quarter of 2009 decreased 15% to $121.3 million from $142.3 million for the same quarter last year, reflecting weakness in the display advertising market. Adjusted for divestitures and foreign exchange rate fluctuations, Interactive revenues decreased 13% from the third quarter of 2008.

Interactive OIBDA for the third quarter of 2009 increased 11% to $4.1 million from $3.7 million for the same prior-year period primarily due to lower employee-related costs partially offset by lower revenues. Interactive reported an operating loss of $15.6 million for the third quarter of 2009 versus an operating loss of $14.0 million for the same quarter last year resulting from depreciation and amortization expense associated with the CNET acquisition.

Publishing (Simon & Schuster)

Publishing revenues for the third quarter of 2009 increased 2% to $230.4 million from $225.0 million for the same prior-year period reflecting the timing of the release of titles. Best-selling titles in the third quarter of 2009 included Arguing with Idiots by Glenn Beck and Her Fearful Symmetry by Audrey Niffenegger. In constant dollars, Publishing revenues increased 4% over the same prior-year period.

Publishing OIBDA for the third quarter of 2009 increased 10% to $28.4 million from $25.8 million for the same quarter last year and operating income increased 14% to $26.6 million from $23.4 million for the same prior-year period primarily due to revenue growth, partially offset by higher write-offs of advances for author royalties.

Corporate

Corporate expenses before depreciation expense decreased to $34.8 million for the third quarter of 2009 from $38.5 million for the same prior-year period primarily reflecting the favorable impact from the termination of a real estate lease arrangement.

Residual Costs

Residual costs primarily include pension and postretirement benefits costs for benefit plans retained by the Company for previously divested businesses. Residual costs decreased to $7.9 million for the third quarter of 2009 from $18.3 million for the same quarter last year primarily due to a settlement of $28.0 million related to the favorable resolution of certain disputes regarding a previously disposed business partially offset by an increase in pension costs due to pension plan asset performance in 2008.

Interest Expense

Interest expense for the third quarter of 2009 was $135.4 million versus $134.8 million for the same prior-year period.

Interest Income

Interest income of $1.6 million for the third quarter of 2009 decreased from $6.4 million for the same quarter last year reflecting lower interest rates.

Other Items, Net

"Other items, net" for the third quarter of 2009 was $15.0 million principally reflecting foreign exchange gains. "Other items, net" for the third quarter of 2008 reflected a net loss of $41.3 million, which included a $56.4 million write-down of investments associated with other-than-temporary declines in the market value of the Company's investments.

Provision for Income Taxes

The Company's effective income tax rate for the third quarter of 2009 was 26.6% versus 9.7% for the third quarter of 2008. The tax provision for 2009 included a tax benefit of $41.8 million from the settlement of federal and state income tax audits. The tax benefit for 2008 included a benefit of $1.45 billion related to the non-cash impairment charges.

Equity in Loss of Investee Companies, Net of Tax

For the third quarter of 2009, equity in loss of investee companies, net of tax, was $12.1 million versus $6.5 million for the comparable prior-year period, reflecting the Company's share of the operating results of its equity investments.

About CBS Corporation

CBS Corporation is a mass media company with constituent parts that reach back to the beginnings of the broadcast industry, as well as newer businesses that operate on the leading edge of the media industry. The Company, through its many and varied operations, combines broad reach with well-positioned local businesses, all of which provide it with an extensive distribution network by which it serves audiences and advertisers in all 50 states and key international markets. It has operations in virtually every field of media and entertainment, including broadcast television (CBS and The CW - a joint venture between CBS Corporation and Warner Bros. Entertainment), cable television (Showtime Networks and CBS College Sports Network), local television (CBS Television Stations), television production and syndication (CBS Television Studios, CBS Studios International and CBS Television Distribution), radio (CBS Radio), advertising on out-of-home media (CBS Outdoor), publishing (Simon & Schuster), interactive media (CBS Interactive), music (CBS Records), licensing and merchandising (CBS Consumer Products), video/DVD (CBS Home Entertainment) and motion pictures (CBS Films). For more information, log on to http://www.cbscorporation.com/.

Cautionary Statement Concerning Forward-looking Statements

This news release contains both historical and forward-looking statements. All statements, including Business Outlook, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements are not based on historical facts, but rather reflect the Company's current expectations concerning future results and events. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause the actual results, performance or achievements of the Company to be different from any future results, performance or achievements expressed or implied by these statements. These risks, uncertainties and other factors include, among others: advertising market conditions generally; changes in the public acceptance of the Company's programming; changes in technology and its effect on competition in the Company's markets; changes in the Federal Communications laws and regulations; the impact of piracy on the Company's products, the impact of the consolidation in the market for the Company's programming; other domestic and global economic, business, competitive and/or other regulatory factors affecting the Company's businesses generally; the impact of union activity, including possible strikes or work stoppages or the Company's inability to negotiate favorable terms for contract renewals; and other factors described in the Company's news releases and filings with the Securities and Exchange Commission including but not limited to the Company's most recent Form 10-K, Form 10-Qs and Form 8-Ks. The forward-looking statements included in this document are made only as of the date of this document, and under section 27A of the Securities Act and section 21E of the Exchange Act, we do not have any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.

CBS CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited; all amounts, except per share amounts, are in millions) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Revenues $3,350.0 $3,375.7 $9,516.2 $10,423.5 -------- -------- -------- -------- -------- Operating income (loss) 418.2 (13,618.1) 767.9 (12,456.9) Interest expense (135.4) (134.8) (402.5) (407.8) Interest income 1.6 6.4 4.3 39.2 Loss on early extinguishment of debt - - (29.8) - Other items, net 15.0 (41.3) (.4) 83.4 ---------------- -------- -------- -------- -------- Earnings (loss) before income taxes 299.4 (13,787.8) 339.5 (12,742.1) (Provision) benefit for income taxes (79.7) 1,332.1 (145.4) 947.9 Equity in loss of investee companies, net of tax (12.1) (6.5) (26.4) (15.3) -------------------- -------- -------- -------- -------- Net earnings (loss) $207.6 $(12,462.2) $167.7 $(11,809.5) ------------------ -------- -------- -------- -------- Basic net earnings (loss) per common share $.31 $(18.58) $.25 $(17.64) Diluted net earnings (loss) per common share $.30 $(18.58) $.25 $(17.64) Weighted average number of common shares outstanding: Basic 674.8 670.9 673.2 669.4 Diluted 685.1 670.9 680.5 669.4 Dividends per common share $.05 $.27 $.15 $.79 -------------------- -------- -------- -------- -------- CBS CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited; Dollars in millions) At At September 30, December 31, 2009 2008 ------------- ------------ Assets Cash and cash equivalents $473.8 $419.5 Receivables, net 2,726.9 2,749.9 Programming and other inventory 861.3 1,027.3 Prepaid expenses and other current assets 1,039.3 996.1 ----------------------------------------- ------- ----- Total current assets 5,101.3 5,192.8 -------------------- ------- ------- Property and equipment 5,065.7 4,899.5 Less accumulated depreciation and amortization 2,166.5 1,891.2 --------------------------------- ------- ------- Net property and equipment 2,899.2 3,008.3 -------------------------- ------- ------- Programming and other inventory 1,451.8 1,578.1 Goodwill 8,661.3 8,647.8 Intangible assets 6,953.9 7,104.2 Other assets 1,493.0 1,358.1 ------------ ------- ------- Total Assets $26,560.5 $26,889.3 ------------ --------- --------- Liabilities and Stockholders' Equity Accounts payable $373.6 $462.8 Participants' share and royalties payable 890.0 962.3 Program rights 707.5 840.1 Current portion of long-term debt 22.7 21.3 Accrued expenses and other current liabilities 2,226.8 2,514.4 ---------------------------------- ------- ------- Total current liabilities 4,220.6 4,800.9 ------------------------- ------- ------- Long-term debt 6,963.7 6,974.8 Other liabilities 6,530.0 6,516.3 Stockholders' equity 8,846.2 8,597.3 -------------------- ------- ------- Total Liabilities and Stockholders' Equity $26,560.5 $26,889.3 ------------------------------------------ --------- --------- CBS CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited; Dollars in millions) Nine Months Ended September 30, 2009 2008 ---- ---- Operating Activities: Net earnings (loss) $167.7 $(11,809.5) Adjustments to reconcile net earnings (loss) to net cash flow provided by operating activities: Depreciation and amortization 434.9 380.9 Impairment charges 31.7 14,117.2 Deferred income tax provision (benefit) 148.2 (1,245.8) Write-down of investments - 56.4 Net gain on dispositions (.6) (135.4) Stock-based compensation 108.2 110.5 Loss on early extinguishment of debt 29.8 - Equity in loss of investee companies, net of tax and distributions 28.1 21.1 Decrease to accounts receivable securitization program (150.0) - Change in assets and liabilities, net of effects of acquisitions (230.1) 218.3 ---------------------------------------- ------ ----- Net cash flow provided by operating activities 567.9 1,713.7 ----------------------------------- ----- ------- Investing Activities: Acquisitions, net of cash acquired (11.8) (1,950.9) Capital expenditures (185.5) (349.6) Investments in and advances to investee companies (24.5) (8.9) Purchases of marketable securities (35.6) - Proceeds from dispositions 72.4 366.7 Other, net (.5) (12.4) ---------- --- ----- Net cash flow used for investing activities (185.5) (1,955.1) ------------------------------------------- ------ -------- Financing Activities: Repayments to banks, including commercial paper, net (2.3) (5.0) Proceeds from issuance of senior notes 974.4 - Repayment of senior notes (1,007.5) - Payment of capital lease obligations (11.6) (13.7) Dividends (263.5) (524.3) Purchase of Company common stock (18.7) (45.6) Proceeds from exercise of stock options - 31.2 Excess tax benefit from stock-based compensation 1.1 5.0 ----------------------------------- --- --- Net cash flow used for financing activities (328.1) (552.4) ------------------------------------------- ------ ------ Net increase (decrease) in cash and cash equivalents 54.3 (793.8) Cash and cash equivalents at beginning of period 419.5 1,346.9 ----------------------------------------- ----- ------- Cash and cash equivalents at end of period $473.8 $553.1 ------------------------------------------ ------ ------ CBS CORPORATION AND SUBSIDIARIES SUPPLEMENTAL DISCLOSURES REGARDING SEGMENT INFORMATION (Unaudited; Dollars in millions)

In the fourth quarter of 2009, the Company will realign its operating segments to more effectively highlight its long-term strategy of investing in content businesses and capitalizing on its strong local presence. The following tables provide the components and comparisons of the Company's third quarter revenues and OIBDA under the previous and new segment presentations.

Previous Segment Presentation New Segment Presentation ------------------------------- ------------------------------- Television Entertainment CBS Television Network, CBS Television Network, CBS Television Stations, CBS Television Studios, CBS Television Studios, CBS Studios International, CBS Studios International, CBS Television Distribution, CBS Television Distribution, CBS Films and CBS Interactive CBS College Sports Network, CBS Films and Showtime Networks Radio Cable Networks CBS Radio Showtime Networks and CBS College Sports Network Outdoor Publishing CBS Outdoor Simon & Schuster Interactive Local Broadcasting CBS Interactive CBS Television Stations and CBS Radio Publishing Outdoor Simon & Schuster CBS Outdoor Previous Segment Presentation New Segment Presentation --------------------------------- ----------------------------------- Three Months Ended Three Months Ended September 30, September 30, Revenues 2009 2008 Revenues 2009 2008 Television $2,269.0 $2,075.9 Entertainment $1,828.3 $1,623.8 Cable Networks 331.1 312.4 Radio 318.9 392.5 Publishing 230.4 225.0 Content Group 2,389.8 2,161.2 Outdoor 424.9 549.3 Local Broadcasting 589.8 705.9 Interactive 121.3 142.3 Outdoor 424.9 549.3 Local Group 1,014.7 1,255.2 Publishing 230.4 225.0 Eliminations (14.5) (9.3) Eliminations (54.5) (40.7) Total Revenues $3,350.0 $3,375.7 Total Revenues $3,350.0 $3,375.7 Previous Segment Presentation New Segment Presentation ---------------------------------- ---------------------------------- Three Months Ended Three Months Ended September 30, September 30, OIBDA 2009 2008 OIBDA 2009 2008 Television $483.9 $412.8 Entertainment $324.5 $262.5 Cable Networks 127.9 102.0 Radio 93.1 139.4 Publishing 28.4 25.8 Content Group 480.8 390.3 Outdoor 32.6 113.9 Local Broadcasting 130.7 190.7 Interactive 4.1 3.7 Outdoor 32.6 113.9 Local Group 163.3 304.6 Publishing 28.4 25.8 Corporate (34.8) (38.5) Corporate (34.8) (38.5) Residual costs (7.9) (18.3) Residual costs (7.9) (18.3) Eliminations (2.1) - Eliminations (4.1) .7 OIBDA Before OIBDA Before Impairment Impairment Charges 597.3 638.8 Charges 597.3 638.8 Impairment Impairment Charges (31.7) (14,117.2) Charges (31.7) (14,117.2) Total OIBDA $565.6 $(13,478.4) Total OIBDA $565.6 $(13,478.4) CBS CORPORATION AND SUBSIDIARIES SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (Unaudited; Dollars in millions) Operating Income (Loss) Before Depreciation and Amortization

The following tables set forth the Company's Operating Income (Loss) Before Depreciation and Amortization ("OIBDA") for the three and nine months ended September 30, 2009 and 2008. The Company defines OIBDA as net earnings (loss) adjusted to exclude the following line items presented in its Statements of Operations: Equity in loss of investee companies, net of tax; (Provision) benefit for income taxes; Other items, net; Loss on early extinguishment of debt; Interest income; Interest expense; and Depreciation and amortization. The Company defines "OIBDA Before Impairment Charges" as OIBDA excluding impairment charges.

The Company presents OIBDA Before Impairment Charges on a segment basis as the primary measure of profit and loss for its operating segments in accordance with Financial Accounting Standards Board guidance for segment reporting.

The Company uses OIBDA, among other things, to evaluate the Company's operating performance, to value prospective acquisitions and as one of several components of incentive compensation targets for certain management personnel, and this measure is among the primary measures used by management for planning and forecasting of future periods. This measure is an important indicator of the Company's operational strength and performance of its business because it provides a link between profitability and operating cash flow. The Company believes the presentation of this measure is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by the Company's management, helps improve their ability to understand the Company's operating performance and makes it easier to compare the Company's results with other companies that have different financing and capital structures or tax rates. In addition, this measure is also among the primary measures used externally by the Company's investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry.

Since OIBDA is not a measure of performance calculated in accordance with accounting principles generally accepted in the United States ("GAAP"), it should not be considered in isolation of, or as a substitute for, net earnings (loss) as an indicator of operating performance. OIBDA, as the Company calculates it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure does not necessarily represent funds available for discretionary use, and is not necessarily a measure of the Company's ability to fund its cash needs. As OIBDA excludes certain financial information compared with net earnings (loss), the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions which are excluded. The Company provides the following reconciliations of total OIBDA to net earnings (loss) and OIBDA Before Impairment Charges for each segment to such segment's operating income (loss), the most directly comparable amounts reported under GAAP.

CBS CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)

(Unaudited; Dollars in millions) Three Months Ended September 30, 2009 Operating Income OIBDA Before Depreciation (Loss) Before Operating Impairment and Impairment Impairment Income Charges Amortization Charges Charges (Loss) Television $483.9 $(43.3) $440.6 $ - $440.6 Radio 93.1 (10.3) 82.8 (31.7) 51.1 Outdoor 32.6 (67.5) (34.9) - (34.9) Interactive 4.1 (19.7) (15.6) - (15.6) Publishing 28.4 (1.8) 26.6 - 26.6 Corporate (34.8) (4.8) (39.6) - (39.6) Residual costs (7.9) - (7.9) - (7.9) Eliminations (2.1) - (2.1) - (2.1) Total $597.3 $(147.4) $449.9 $(31.7) $418.2 Three Months Ended September 30, 2008 Operating Income OIBDA Before Depreciation (Loss) Before Operating Impairment and Impairment Impairment Income Charges Amortization Charges Charges (Loss) Television $412.8 $(45.4) $367.4 $(7,943.3) $(7,575.9) Radio 139.4 (8.8) 130.6 (3,318.7) (3,188.1) Outdoor 113.9 (62.1) 51.8 (2,855.2) (2,803.4) Interactive 3.7 (17.7) (14.0) - (14.0) Publishing 25.8 (2.4) 23.4 - 23.4 Corporate (38.5) (3.3) (41.8) - (41.8) Residual costs (18.3) - (18.3) - (18.3) Total $638.8 $(139.7) $499.1 $(14,117.2) $(13,618.1) Three Months Ended September 30, 2009 2008 ---- ---- OIBDA Before Impairment Charges $597.3 $638.8 Impairment Charges (31.7) (14,117.2) ------------------ ----- --------- Total OIBDA 565.6 (13,478.4) Depreciation and amortization (147.4) (139.7) ----------------------------- ------ ------ Operating income (loss) 418.2 (13,618.1) Interest expense (135.4) (134.8) Interest income 1.6 6.4 Other items, net 15.0 (41.3) ---------------- ---- ----- Earnings (loss) before income taxes 299.4 (13,787.8) (Provision) benefit for income taxes (79.7) 1,332.1 Equity in loss of investee companies, net of tax (12.1) (6.5) -------------------------- ----- ---- Net earnings (loss) $207.6 $(12,462.2) ------------------ ------ ---------- CBS CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)

(Unaudited; Dollars in millions) Nine Months Ended September 30, 2009 Operating Income OIBDA Before Depreciation (Loss) Before Operating Impairment and Impairment Impairment Income Charges Amortization Charges Charges (Loss) Television $1,019.3 $(129.6) $889.7 $ - $889.7 Radio 240.6 (28.1) 212.5 (31.7) 180.8 Outdoor 99.9 (197.8) (97.9) - (97.9) Interactive 18.0 (59.3) (41.3) - (41.3) Publishing 36.6 (6.0) 30.6 - 30.6 Corporate (98.0) (14.1) (112.1) - (112.1) Residual costs (79.8) - (79.8) - (79.8) Eliminations (2.1) - (2.1) - (2.1) Total $1,234.5 $(434.9) $799.6 $(31.7) $767.9 Nine Months Ended September 30, 2008 Operating Income OIBDA Before Depreciation (Loss) Before Operating Impairment and Impairment Impairment Income Charges Amortization Charges Charges (Loss) Television $1,373.6 $(133.3) $1,240.3 $(7,943.3) $(6,703.0) Radio 420.3 (24.0) 396.3 (3,318.7) (2,922.4) Outdoor 369.0 (180.7) 188.3 (2,855.2) (2,666.9) Interactive (12.0) (26.0) (38.0) - (38.0) Publishing 59.9 (7.3) 52.6 - 52.6 Corporate (106.4) (9.6) (116.0) - (116.0) Residual costs (63.2) - (63.2) - (63.2) Total $2,041.2 $(380.9) $1,660.3 $(14,117.2) $(12,456.9) Nine Months Ended September 30, 2009 2008 ---- ---- OIBDA Before Impairment Charges $1,234.5 $2,041.2 Impairment Charges (31.7) (14,117.2) ------------------ ----- --------- Total OIBDA 1,202.8 (12,076.0) Depreciation and amortization (434.9) (380.9) ----------------------------- ------ ------ Operating income (loss) 767.9 (12,456.9) Interest expense (402.5) (407.8) Interest income 4.3 39.2 Loss on early extinguishment of debt (29.8) - Other items, net (.4) 83.4 ---------------- --- ---- Earnings (loss) before income taxes 339.5 (12,742.1) (Provision) benefit for income taxes (145.4) 947.9 Equity in loss of investee companies, net of tax (26.4) (15.3) -------------------------- ----- ----- Net earnings (loss) $167.7 $(11,809.5) ------------------ ------ ---------- CBS CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)

(Unaudited; Dollars in millions) Free Cash Flow

Free cash flow reflects the Company's net cash flow provided by (used for) operating activities less capital expenditures and increases/(decreases) to the accounts receivable securitization program. The Company uses free cash flow, among other measures, to evaluate its operating performance and as one of several components of incentive compensation targets for certain management personnel. Management believes free cash flow provides investors with an important perspective on the cash available to service debt, make strategic acquisitions and investments, maintain its capital assets, satisfy its tax obligations and fund ongoing operations and working capital needs. As a result, free cash flow is a significant measure of the Company's ability to generate long term value. It is useful for investors to know whether this ability is being enhanced or degraded as a result of the Company's operating performance. The Company believes the presentation of free cash flow is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by management. In addition, free cash flow is also a primary measure used externally by the Company's investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry.

As free cash flow is not a measure of performance calculated in accordance with GAAP, free cash flow should not be considered in isolation of, or as a substitute for, net earnings (loss) as an indicator of operating performance or net cash flow provided by (used for) operating activities as a measure of liquidity. Free cash flow, as the Company calculates it, may not be comparable to similarly titled measures employed by other companies. In addition, free cash flow does not necessarily represent funds available for discretionary use and is not necessarily a measure of the Company's ability to fund its cash needs. As free cash flow deducts capital expenditures and increases/(decreases) to the accounts receivable securitization program from net cash flow provided by (used for) operating activities, the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions which are not reflected. The Company provides below a reconciliation of free cash flow to net cash flow provided by (used for) operating activities, the most directly comparable amount reported under GAAP.

The following table presents a reconciliation of the Company's net cash flow provided by operating activities to free cash flow:

Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net cash flow provided by operating activities $172.6 $91.3 $567.9 $1,713.7 Exclude: (Increase) decrease to accounts (150.0) - 150.0 - receivables securitization program Capital expenditures (46.2) (129.4) (185.5) (349.6) -------------------- ----- ------ ------ ------ Free cash flow $(23.6) $(38.1) $532.4 $1,364.1 -------------- ------ ------ ------ -------- The following table presents a summary of the Company's cash flows: Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net cash flow provided by operating activities $172.6 $91.3 $567.9 $1,713.7 Net cash flow provided by (used for) investing $.3 $(166.4) $(185.5) $(1,955.1) activities Net cash flow used for financing activities $(40.6) $(185.7) $(328.1) $(552.4) ---------------------- ------ ------- ------- ------- CBS CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)

(Unaudited; all amounts, except per share amounts, are in millions) 2008 Adjusted Results

The following tables reconcile financial measures excluding impairment charges and dispositions to the reported measures included in this earnings release. The Company believes that adjusting its financial results for the impact of these items is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by the Company's management, provides a clearer perspective on the current underlying performance of the Company and makes it easier to compare the Company's year-over-year results.

Three Months Ended September 30, 2008 ------------------------------------- 2008 Impairment 2008 Reported Charges(a) Adjusted -------- ----------- -------- Revenues $3,375.7 $- $3,375.7 -------- --------- -------- --------- OIBDA (13,478.4) 14,117.2 638.8 -------- --------- -------- --------- Operating income (loss) (13,618.1) 14,117.2 499.1 Interest expense (134.8) - (134.8) Interest income 6.4 - 6.4 Other items, net (41.3) 56.4 15.1 -------- --------- -------- --------- Earnings (loss) before income taxes taxes (13,787.8) 14,173.6 385.8 Benefit (provision) for income taxes 1,332.1 (1,445.5) (113.4) -------- --------- -------- --------- Effective income tax rate 9.7% 29.4% -------- --------- -------- --------- Equity in loss of investee companies, net of tax (6.5) - (6.5) -------- --------- -------- --------- Net earnings (loss) $(12,462.2) $12,728.1 $265.9 -------- --------- -------- --------- Diluted EPS $(18.58) $18.97 $.39 Diluted weighted average number of common shares outstanding 670.9 674.1 -------- --------- -------- --------- Nine Months Ended September 30, 2008 2008 Impairment 2008 Reported Charges(a) Dispositions(b) Adjusted Revenues $10,423.5 $ - $ - $10,423.5 OIBDA (12,076.0) 14,117.2 - 2,041.2 Operating income (loss) (12,456.9) 14,117.2 - 1,660.3 Interest expense (407.8) - - (407.8) Interest income 39.2 - - 39.2 Other items, net 83.4 56.4 (127.2) 12.6 Earnings (loss) before income taxes (12,742.1) 14,173.6 (127.2) 1,304.3 Benefit (provision) for income taxes 947.9 (1,445.5) 48.9 (448.7) Effective income tax rate 7.4% 34.4% Equity in loss of investee companies, net of tax (15.3) - - (15.3) Net earnings (loss) $(11,809.5) $12,728.1 $(78.3) $840.3 Diluted EPS $(17.64) $19.01 $(.12) $1.25 Diluted weighted average number of common shares outstanding 669.4 674.1 (a) Represents non-cash impairment charges to reduce goodwill and other intangible assets at Television ($7.94 billion), Radio ($3.32 billion) and Outdoor ($2.86 billion) and to write-down the market value of investments ($56.4 million) due to other-than temporary declines. (b) Gain on sale of investment in Sundance Channel. CBS CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)

(Unaudited; Dollars in millions) Interactive Segment Comparable Revenues Reconciliation

The following table presents revenues for the Interactive segment on a comparable basis for the three months ended September 30, 2009 and 2008, which exclude the impact of divested interactive businesses and foreign exchange rate changes. The Company believes that adjusting the revenues of the Interactive segment to exclude the impact of divested interactive businesses and foreign exchange rate changes provides investors with a clearer perspective on the current underlying financial performance of the Interactive segment.

Three Months Ended September 30, Better/ 2009 2008 (Worse)% ------ ------ ------ Interactive revenues, as reported $121.3 $142.3 (15)% Divested interactive businesses (.8) (3.6) n/m Foreign exchange rate changes - (.9) n/m --------------------- ------ ------ ------ Interactive revenues, comparable basis $120.5 $137.8 (13)% --------------------- ------ ------ ------ n/m - not meaningful Business Outlook

The following table presents the Company's business outlook for 2009, which is based on 2008 results adjusted to exclude impairment charges.

Twelve Months Ended December 31, 2008 2008 Impairment 2008 2009 Reported Charges Adjusted Business Outlook OIBDA $(11,627.1) $14,181.4 $2,554.3 $1.725 billion to $1.925 billion Depreciation and amortization (531.6) - (531.6) Operating income (loss) $(12,158.7) $14,181.4 $2,022.7

CBS Corporation

CONTACT: Press: Gil Schwartz, Executive Vice President, Corporate
Communications, +1-212-975-2121, gdschwartz@cbs.com, or Dana McClintock,
Senior Vice President, Corporate Communications, +1-212-975-1077,
dlmcclintock@cbs.com, or Andrea Prochniak, Vice President, Corporate
Communications, +1-212-975-0053, andrea.prochniak@cbs.com; or Investors: Adam
Townsend, Executive Vice President, Investor Relations, +1-212-975-5292,
adam.townsend@cbs.com, or Debra Wichser, Vice President, Investor Relations,
+1-212-975-3718, debra.wichser@cbs.com

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

Company News On-Call: http://www.prnewswire.com/comp/965075.html

Horsehead Holding Corp. Announces Third Quarter 2009 Earnings

PITTSBURGH, Nov. 5 /PRNewswire-FirstCall/ -- Horsehead Holding Corp. , the parent company of Horsehead Corporation, reported a consolidated net loss of $3.6 million for the third quarter of 2009, or $(0.10) per diluted share, on net sales of $60.3 million. For the third quarter of 2008, Horsehead reported consolidated net income of $9.4 million, or $0.27 per diluted share, on net sales of $109.2 million. Earnings before the effect of hedges and certain non-cash charges, a non-GAAP measure(1), were $0.5 million for the current quarter, or $0.01 per diluted share compared to a net loss on a similar basis of $1.4 million or $(0.04) per diluted share for the prior year quarter.

"The third quarter results demonstrated that our strategy of focusing on cost reduction and increasing our share of the electric arc furnace ("EAF") dust recycling market are providing the expected benefit. These cost reductions more than offset the effect of a 23% lower volume of shipments for the quarter when compared to the prior year quarter," said Jim Hensler, President and Chief Executive Officer. "Even though reported domestic steel production declined 38% compared with the prior year quarter, our EAF dust receipts declined by only 8% reflecting our growth in market share."

Hensler further commented, "Domestic steel production has continued to increase steadily over the past several months. As a result, we are now operating all of our Waelz kilns used for EAF dust recycling, with the last idled kiln at our Rockwood, Tennessee facility restarted in the past week. This trend supports our decision to continue to move forward with construction of our new EAF dust processing facility in Barnwell, South Carolina."

"While the LME price for zinc increased in the third quarter compared to the second quarter of 2009, the majority of this increase will not be realized until the next quarter for our zinc oxide shipments."

Third Quarter Financial Highlights Compared to the same quarter last year: -- Product shipments decreased 9,047 tons, or 22.8%, to 30,568 tons for the quarter. -- Net sales decreased $48.9 million, or 44.8%, to $60.3 million. Lower average price realization and lower shipment volume reduced sales $10.0 million and $17.2 million, respectively. While the quarters had the same average LME zinc price of $0.80/lb, realized price was lower in the current quarter due to contractual lag effects on pricing for the majority of our zinc oxide products and lower premiums on metal. Current quarter net sales were further reduced by $1.4 million relating to hedges, of which $0.9 million related to put options for 2010 purchased during the quarter. In comparison, the third quarter 2008 net sales included a favorable $17.2 million effect relating to our hedging activities. These adjustments related to hedging decreased earnings per share for the current quarter by $0.03 compared to a $0.31 per share increase in the same quarter last year. The quarter closed with a LME zinc price of $0.87/lb, compared to $0.75/lb on September 30, 2008. -- Cost of sales (excluding depreciation) decreased $30.9 million, or 35.4%, to $56.4 million reflecting $16.1 million from cost reductions and $14.8 million from reduced shipment levels. The cost per ton of zinc produced declined 17.6% between the current quarter and the prior year quarter on 21% lower production volume. Non-cash charges relating to increased EAF dust inventory of $1.1 million and the write-down of certain idled assets at the Beaumont, Texas facility of $0.9 million partially offset the cost reductions realized during the quarter. -- During the quarter the estimated tax rate for the full year of 2009 was reduced to 33.3% from a prior estimate of 35.8% to reflect the impact of permanent differences on lower expected losses for the year and completion of the 2008 tax returns. This change reduced estimated tax benefits for 2009 by approximately $1.0 million, or $(0.03) per diluted share in the current quarter and resulted in an effective rate for the third quarter of 9.5% compared to 35.7% for the prior year quarter.

Cash generated by operating activities (excluding investing activities) was $10.1 million for the quarter ended September 30, 2009. Investing activities for the quarter consisted of capital spending of $4.1 million and an increase in restricted cash of $19.3 million to support letters of credit previously supported by our credit facility. Financing activities during the quarter included $79.8 million in net proceeds from an equity offering. Cash and cash equivalents were $145.2 million as of September 30, 2009 with $0.3 million of debt.

Third Quarter Shipments and Production Data Quarter ended September 30, ----------------- 2009 2008 ---- ---- Zinc production - tons 27,214 34,457 Zinc product shipments - tons 30,568 39,615 Zinc contained - tons 27,818 35,941 Net sales realization Zinc products - per lb $0.79 $0.90 Zinc products - per lb zinc contained $0.87 $0.99 LME average zinc price - per lb $0.80 $0.80 Business Outlook

According to Mr. Hensler, "Our focus in the near term is to closely monitor market conditions and adjust capacity utilization as needed while controlling costs and minimizing working capital needs. Market conditions have improved but it still remains unclear whether this trend will be sustained. We have successfully implemented significant cost reductions this year and will continue to pursue additional cost savings opportunities."

Hensler also noted, "Construction of our new EAF dust processing facility in Barnwell, South Carolina continues to progress according to plan. Through the third quarter, we have spent approximately $32 million of the expected $65 million investment. In addition, we have recently awarded another $16 million in new contracts. Given the upward trend in steel production, we plan to be ready to start the first kiln in the second quarter of 2010 and expect to have the second kiln ready later in the year. We should be well positioned to respond to increased output from steel mills."

"In keeping with our strategy of hedging the price of zinc to minimize downside risk, we have moved forward over the last six weeks while option prices were attractive to purchase put options for 2010 at a strike price of $0.65 per pound for a cost of approximately $5.3 million. We believe this provides an important protection to the liquidity of the business in the event that the price of zinc declines significantly from current levels while allowing the company to fully benefit from higher zinc prices."

"Finally, during the third quarter we completed a follow on equity offering raising capital for new strategic growth initiatives. We are continuing to identify potential investment opportunities which leverage our expertise in environmental services and high temperature metals recovery. We are excited about these opportunities and are working diligently to pursue them."

Conference Call Information

Horsehead will conduct a conference call with investors and analysts on Friday, November 6, 2009, at 11:00 am EST to discuss the quarterly results. Dial-in instructions are as follows:

Dial-In Numbers: United States: (888) 423-3273 International: (612) 288-0329

An Audio-Only Web Conference Cast will also be available from the Investor Relations Corporate Information page of our website http://www.horsehead.net/ or directly at http://65.197.1.15/att/confcast . Enter Conference ID# 119183 then click Go.

A replay of the call will be available beginning at 1:00 pm EST on Friday, November 6, 2009 and ending on Friday, November 13, 2009 at 11:59 pm EST. Dial in instructions for the replay are:

Dial-In Numbers: United States: (800) 475-6701 International: (320) 365-3844 Access Code: 119183 About Horsehead

Horsehead Holding Corp. is the parent company of Horsehead Corporation, a leading U.S. producer of specialty zinc and zinc-based products. Horsehead, headquartered in Pittsburgh, Pa., employs over 800 people and has seven locations throughout the U.S. Visit http://www.horsehead.net/ for more information.

Cautionary Statement about Forward-Looking Statements

This press release contains forward-looking statements, including statements about business outlook and strategy, and statements about historical results that may suggest trends for our business. These statements are based on assumptions, estimates and information available to us at the time of this press release and are not guarantees of future performance. There may be other factors that may cause our actual results to differ materially from the forward-looking statements. Our actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. We can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them does, what impact they will have on our results of operations and financial condition. You should carefully read the factors described in the "Risk Factors" section of our filings with the Securities and Exchange Commission for a description of certain risks that could, among other things, cause our actual results to differ from these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update this earnings release to reflect events or circumstances after the date hereof.

Summary Financial Results (in thousands except per share amounts): Income Statement (unaudited) Quarter ended Nine months ended Sept 30, Sept 30, ------------- ----------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net sales $60,310 $109,186 $147,730 $354,157 Cost of sales (excluding depreciation) 56,404 87,276 165,721 280,206 ------ ------ ------- ------- Gross profit (loss) (excluding depreciation) 3,906 21,910 (17,991) 73,951 Depreciation 3,743 3,018 10,956 8,845 S G & A expenses 3,683 4,735 11,429 13,517 ----- ----- ------ ------ Income (loss) from operations (3,520) 14,157 (40,376) 51,589 Interest expense 596 360 1,550 1,089 Interest and other income 159 808 442 1,957 --- --- --- ----- Income (loss) before taxes (3,957) 14,605 (41,484) 52,457 Income tax provision (benefit) (377) 5,210 (13,797) 19,325 ----- ----- ------- ------ Net income (loss) $(3,580) $9,395 $(27,687) $33,132 ======= ====== ======== ======= Earnings (loss) per diluted share $(0.10) $0.27 $(0.78) $0.94 Weighted average diluted shares outstanding 36,498 35,332 35,676 35,258 EBITDA (1) $223 $17,175 $(29,420) $60,434 Balance Sheet Items (unaudited) Sept 30, December 31, ------- ----------- 2009 2008 ---- ---- Cash $145,176 $122,768 Other current assets 74,236 98,422 Property, plant and equipment, net 151,539 136,141 Other assets 37,288 1,147 ------ ----- Total assets $408,239 $358,478 ======== ======== Current liabilities $43,397 $60,278 Long-term debt 266 58 Other long-term liabilities 19,895 11,583 Stockholders' equity 344,681 286,559 ------- ------- Total liabilities and stockholders' equity $408,239 $358,478 ======== ======== (1) Earnings before the effect of hedges and certain non-cash charges and EBITDA are non-GAAP financial measures. Management uses EBITDA to help it evaluate our performance and to compare our current results with those for prior periods as well as with the results of other companies in our industry. We caution investors that EBITDA should not be considered as a substitute for disclosures made in accordance with GAAP. Below is a reconciliation of Earnings before the effect of hedges and certain non- cash charges and EBITDA to net income: Quarter ended Sept 30, ------------- 2009 2008 ---- ---- Net income (loss) $(3,580) $9,395 Non-Cash hedge charges (benefit), net of taxes 1,239 (11,092) Change in EAF dust reserve, net of taxes 996 345 Write-down of idle assets, net of taxes 870 - Change in effective tax rate 951 - --- -- Earnings before the effect of hedges and certain non-cash charges $476 $(1,352) ---- ------- Quarter ended Sept 30, ------------- 2009 2008 ---- ---- Net income (loss) $(3,580) $9,395 Income tax provision (benefit) (377) 5,210 Interest expense 596 360 Interest and other income (159) (808) Depreciation 3,743 3,018 ----- ----- EBITDA $223 $17,175 ---- -------

Horsehead Holding Corp.

CONTACT: Robert D. Scherich, Vice President & CFO of Horsehead Holding
Corp., +1-724-773-9000

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

Pratt & Whitney Rocketdyne Answers Call for Clean-Coal Technology with Commissioning of Compact Gasification Pilot Plant

CANOGA PARK, Calif., Nov. 5 /PRNewswire/ -- Responding to the nation's need for affordable clean-coal technology, Pratt & Whitney Rocketdyne today celebrated the commissioning of a compact gasification pilot plant in Illinois designed to help lower energy costs, provide a clean alternative fuel source and strengthen U.S. energy security. The pilot plant is the first step toward global commercialization of the innovative technology. Pratt & Whitney Rocketdyne is a United Technologies Corp. company.

The commissioning was held at the Gas Technology Institute in Des Plaines, Ill., where the pilot plant for the compact gasifier is located. Pratt & Whitney Rocketdyne has teamed with ExxonMobil Research and Engineering (EMRE), Zero Emission Energy Plants, Ltd. (ZEEP), the Alberta Energy Research Institute (AERI) and the Illinois Department of Commerce and Economic Opportunity (DCEO) to develop and commercialize compact gasification, a higher efficiency and lower cost alternative to current gasification systems.

"The Pratt & Whitney Rocketdyne gasifier provides a 90 percent decrease in size compared to competing systems, thereby enabling higher efficiency, and as much as a 25 percent reduction in cost with enhanced reliability," said Jim Maser, president, Pratt & Whitney Rocketdyne. "We look forward to leveraging Pratt & Whitney Rocketdyne's 50 years of engineering experience and working together with our teams in this initiative to reduce cost and improve performance of gasification plants worldwide."

Gasification is a process that converts carbon-containing material such as coal or biomass into synthesis gas (syngas). Syngas can be burned to produce electricity or further processed to manufacture chemicals, fertilizers, liquid transportation fuels, synthetic natural gas or hydrogen.

The capital cost to build a commercial-scale compact gasification plant using Pratt & Whitney Rocketdyne's technology is estimated to be 20 percent less than conventional gasification plants. Pratt & Whitney Rocketdyne's compact gasifier is also expected to reduce carbon dioxide emissions by up to 10 percent compared to standard gasification technologies. EMRE is sharing development cost and collaborating with Pratt & Whitney Rocketdyne to develop, demonstrate and license the technology.

Pratt & Whitney Rocketdyne, Inc., a part of Pratt & Whitney, is a preferred provider of high-value propulsion, power, energy and innovative system solutions used in a wide variety of government and commercial applications, including the main engines for the space shuttle, Atlas and Delta launch vehicles, missile defense systems and advanced hypersonic engines.

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

Pratt & Whitney Rocketdyne

CONTACT: Bryan Kidder, +1-818-586-2213, bryan.kidder@pwr.utc.com, or
Carri Karuhn, +1-818-586-4963, carri.karuhn@pwr.utc.com, both of Pratt &
Whitney Rocketdyne

Web Site: http://www.pw.utc.com/

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News archive of November 2009
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