Sonic Foundry Reports Second Quarter 2008 Results

MADISON, Wis., May 1 /PRNewswire-FirstCall/ -- Sonic Foundry, Inc. , the recognized market leader for rich media webcasting and knowledge management, today announced financial results for its fiscal 2008 second quarter:

* Revenues totaled $3.9 million, up 3 percent from fiscal Q2 2007 * GAAP net loss of $2.3 million or $0.06 per diluted share * Non-GAAP net loss of $1.6 million or $0.04 per diluted share * Total billings reached $4.5 million, 9 percent growth year-over-year * Service revenues of $1.7 million, up 88 percent from the second quarter last year

Non-GAAP net loss primarily excludes all non-cash related expenses of stock compensation, depreciation and amortization and one time charges associated with program and personnel reductions announced in January 2008. A reconciliation between GAAP and non-GAAP results is provided at the end of this press release.

At March 31, 2008, an accumulated $3.5 million of unearned revenue had been billed and deferred, of which the company expects to realize $1.5 million in the upcoming quarter. Recorder units shipped increased 42 percent while service billings, a majority of which are deferred, were $2.0 million. As a result, gross margins were 71 percent for the second quarter, down from 77 percent in the past year. Future recognition of service revenues is expected to cause a rebound of gross margins to previous levels.

As previously reported, the company has recently concentrated more of its selling efforts on the education sector and is entering the two strongest seasons for U.S. educational buying. The company's total higher education sales pipeline is now over 65 percent, an increase of approximately 15 percentage points over the same quarter last year. Additionally, the company continues to experience expanded interest and purchasing internationally due in large part to growing demand in traditional and distance learning programs globally. International sales accounted for 23 percent of the quarter's billings.

The company experienced expanding market demand for more outsourced webcasting services within both the corporate and education sectors. New customers utilizing the company's webcasting and hosting services in the second quarter included Gulfstream Aerospace Corporation, Jackson Healthcare Systems, Lifespan, Inc., Olympus Winter & Ibe, Winston-Salem State University and Children's Healthcare of Atlanta. Service revenues increased from $913 thousand to $1.7 million year over year primarily due to growth in event and hosting services as well as an increase in support contracts and renewals. New customers of Sonic Foundry Event Services included Aventine HealthSciences, Birmingham City University, ESSEC Business School - France and Pitney Bowes MapInfo.

Sales to education institutions represented 51 percent of the customer mix followed by corporations at 37 percent, government at 7 percent and health at 4 percent. Key higher education licensed sales for the second quarter of fiscal 2009 included Canadian Forces College, Columbia College of Missouri, New Hampshire Community College, New Mexico State University, Northwestern Health Sciences University, Sakarya University-Turkey, University of British Columbia, University of Michigan Ross School of Business and University of New Mexico.

In January 2008, the company announced the initiation of cost savings measures that were designed to focus its overall market scope and concentrate on key vertical markets while positioning the company towards breakeven or better operations. Fiscal Q2 proforma expenses included one time costs associated with certain personnel and program reductions tied to this previous effort. The company expects to report additional expenses for fiscal Q3 totaling at least $425 thousand, which will also be reported on a proforma basis.

"We continue to experience expanded demand from the leading early adopters, specifically in the business and health education markets. We believe these sectors will remain primary areas of technology investment on a global basis, even with a slowing economy," said Rimas Buinevicius, chairman and CEO of Sonic Foundry. "The advantages offered by distance learning, blended learning and webcasting services resonate strongly with economically conscious technology buyers and having the most advanced product in the market positions us well before our strongest buying season."

Sonic Foundry will host a corporate webcast today for analysts and investors to discuss its second quarter fiscal 2008 results at 3:30 p.m. CT / 4:30 p.m. ET. It will use its patented rich media communications system, Mediasite, to webcast the presentation for both live and on-demand viewing. To access the presentation, go to http://www.sonicfoundry.com/q2. An archive of the webcast will be available for 30 days.

EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use the measure of non-GAAP net loss in our financial presentation, which exclude certain non-cash costs. These costs include stock-based compensation which we believe is helpful in understanding our past financial performance and our future results. Our non-GAAP financial measure is not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non- GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the factors management uses in planning for and forecasting future periods. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

* Stock-based compensation expenses: We adopted FASB Statement No. 123R, Share-Based Payments, on October 1, 2005, under the modified prospective method. Statement 123R requires us to record non-cash operating expenses associated with stock option awards at their estimated fair values. Prior to our Statement 123R adoption, we were required to record stock-based compensation expenses at intrinsic value, which was zero since we only issue stock options at the market price of our stock on the date issued. In accordance with the modified prospective method, our financial statements for prior periods have not been restated to reflect, and do not include, the changes in methodology to expense options at fair values in accordance with Statement 123R. Stock-based compensation is a key incentive offered to our employees. We believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues. As a result, we continue to evaluate our business performance excluding stock-based compensation expenses. * Depreciation and amortization of intangible and other assets expenses: We have excluded the effect of depreciation and amortization of assets from our pro-forma net loss. Amortization of intangible assets expense varies in amount and frequency and it is significantly affected by the timing and size of our acquisitions. Depreciation and amortization of asset costs is a non-cash expense that includes the periodic write-off of tooling, product design and other assets that contributed to revenues earned during the periods presented and will contribute to future period revenues as well. Amortization expenses will recur in future periods. * Personnel and program reduction costs: We have excluded the additional costs incurred as a result of our cost reduction plan which was communicated in January 2008. These costs include severance costs associated with employee reductions as we better aligned ourselves with key vertical markets. Also included is a one time charge associated with an early extinguishment of a lease. About Sonic Foundry(R), Inc.

Founded in 1991, Sonic Foundry is the recognized market leader for rich media webcasting and knowledge management, providing education and training solutions and services that link an information-driven world. Based in Madison, Wisconsin, the company has received numerous awards including the 2007 Frost & Sullivan Global Market Leadership Award, Ziff Davis Media's Baseline Magazine's sixth fastest-growing software company with sales under $150 million and Deloitte's Technology Fast 500. Named a Bersin & Associates 2007 Learning Leader, Sonic Foundry's webcasting and knowledge management solutions are trusted by education institutions, Fortune 500 companies and government agencies for a variety of critical communication needs. Sonic Foundry is changing the way organizations communicate via the web and how people around the globe receive vital information needed for education, business, professional advancement and safety. Product and service names mentioned herein are the trademarks of Sonic Foundry, Inc. or their respective owners.

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

Sonic Foundry, Inc. Consolidated Balance Sheets (in thousands, except for share data) (Unaudited) March 31, September 30, 2008 2007 Assets Current assets: Cash and cash equivalents $3,786 $8,008 Accounts receivable, net of allowances of $190 and $270 4,098 5,001 Inventories 77 204 Prepaid expenses and other current assets 623 975 Total current assets 8,584 14,188 Property and equipment: Leasehold improvements 980 975 Computer equipment 2,367 2,267 Furniture and fixtures 461 461 Total property and equipment 3,808 3,703 Less accumulated depreciation 1,857 1,520 Net property and equipment 1,951 2,183 Other assets: Goodwill and other intangibles, net of amortization of $1,662 and $1,656 7,604 7,610 Total assets $18,139 $23,981 Liabilities and stockholders' equity Current liabilities: Accounts payable $1,127 $1,512 Accrued liabilities 958 1,023 Unearned revenue 3,464 3,314 Current portion of notes payable 333 333 Current portion of capital lease obligation 59 66 Total current liabilities 5,941 6,248 Long-term portion of notes payable 389 556 Long-term portion of capital lease obligations 44 69 Other liabilities 302 348 Total liabilities 6,676 7,221 Stockholders' equity: - - Preferred stock, $.01 par value, authorized 5,000,000 shares; none issued and outstanding - - 5% preferred stock, Series B, voting, cumulative, convertible, $.01 par value (liquidation preference at par), authorized 10,000,000 shares, none issued and outstanding - - Common stock, $.01 par value, authorized 100,000,000 shares; 35,708,837 and 35,684,503 shares issued and 35,581,670 and 35,557,336 shares outstanding 357 357 Additional paid-in capital 184,049 183,528 Accumulated deficit (172,748) (166,930) Receivable for common stock issued (26) (26) Treasury stock, at cost, 127,167 shares (169) (169) Total stockholders' equity 11,463 16,760 Total liabilities and stockholders' equity $18,139 $23,981 See accompanying notes Sonic Foundry, Inc. Consolidated Statements of Operations (in thousands, except for share and per share data) (Unaudited) Three Months Ended March 31, Six Months Ended March 31, 2008 2007 2008 2007 Revenue: Product $2,182 $2,898 $3,124 $5,484 Services 1,719 913 3,277 1,791 Other 28 10 48 19 Total revenue 3,929 3,821 6,449 7,294 Cost of revenue: Product 1,030 790 1,539 1,533 Services 124 101 237 131 Total cost of revenue 1,154 891 1,776 1,664 Gross margin 2,775 2,930 4,673 5,630 Operating expenses: Selling and marketing 3,330 3,043 6,876 5,547 General and administrative 736 1,104 1,714 2,074 Product development 982 806 1,928 1,481 Total operating expenses 5,048 4,953 10,518 9,102 Loss from operations (2,273) (2,023) (5,845) (3,472) Other income, net (5) 111 27 131 Net loss $(2,278) $(1,912) $(5,818) $(3,341) Net loss per common share: - basic and diluted $(0.06) $(0.05) $(0.16) $(0.10) Weighted average common shares - basic and diluted 35,572,140 35,368,667 35,566,949 33,881,848 See accompanying notes Non-GAAP Consolidated Statements of Operations (in thousands) Fiscal Quarter Ended Fiscal Quarter Ended March 31, 2008 March 31, 2007 GAAP Adj(1) Non-GAAP GAAP Adj(1) Non-GAAP Revenues $3,929 - $2,520 $3,821 - $3,821 Cost of revenue 1,154 - 622 891 - 891 Total Operating expenses 5,048 (703) 4,345 4,953 (395) 4,558 Loss from operations (2,273) 703 (1,570) (2,023) 395 (1,628) Other income (5) - (5) 111 - 111 Net loss $(2,278) $703 $(1,575) $(1,912) $395 $(1,517) Diluted net loss per common share $(0.06) $0.02 $(0.04) $(0.05) $0.01 $(0.04) (1)Adjustments consist of the following: Personnel and program reduction costs 316 - Depreciation (in G&A) 166 156 Stock-based compensation(2) 221 239 Total non-GAAP adjustments 703 395 (2) Stock-based compensation is included in the following GAAP operating expenses: Selling and marketing 141 155 General and administrative 24 31 Research and development 56 53 Total stock-based compensation 221 239

Sonic Foundry, Inc.

CONTACT: Investors, Rob Schatz of Wolfe, Axelrod, Weinberger & Assoc.,
LLC, +1-212-370-4500, rob@wolfeaxelrod.com, for Sonic Foundry, Inc.

Web site: http://www.sonicfoundry.com/
http://www.sonicfoundry.com/q2

ACS Announces Third Quarter Fiscal Year 2008 ResultsCompany Delivers Strong Signings, Earnings and Cash Flow

DALLAS, May 1 /PRNewswire-FirstCall/ -- Affiliated Computer Services, Inc. today announced third quarter fiscal year 2008 revenues of $1.54 billion, an increase of 7% compared to the third quarter of the prior year. Adjusted non-GAAP diluted earnings per share for the third quarter of fiscal years 2008 and 2007 were $0.91 and $0.78, respectively, representing a 17% increase. See "Reconciliation of Reported GAAP Results to Adjusted Non-GAAP Results" below. Third quarter new business signings were the second highest in Company history at $245 million of annual recurring revenue. Third quarter fiscal year 2008 free cash flow was $161 million, or 10% of revenues.

Fiscal year-to-date revenues were $4.55 billion, an increase of 7% over the prior year period. Adjusted non-GAAP earnings per share for the nine months ended March 31, 2008 and 2007 were $2.58 and $2.24, respectively, representing a 15% increase. Fiscal year-to-date new business signings were $591 million of annual recurring revenue, a 30% increase over the prior year-to-date period. Fiscal year-to-date free cash flow was $342 million, or 8% of revenues.

"Our outstanding signings, free cash flow, and strong earnings growth underscore that our strategy is working," said Lynn Blodgett, ACS president and chief executive officer. "We are focused on providing specific vertical business process outsourcing solutions that we can leverage across many customers. In support of this strategy, this quarter we expanded our service offerings and geographic footprint with four new acquisitions and key new logos wins. These new capabilities, along with our ability to execute our sales strategy and operational excellence, delivered strong results this quarter and positions us well for the future."

Key highlights from ACS' fiscal year 2008 third quarter: -- During the quarter, the Company generated new business signings of $245 million in annual recurring revenue with an estimated total contract value of $1.1 billion. Government signings represented 63% of new business signings and Commercial contributed 37%. From a service line perspective, business process outsourcing contributed 84% of new business signings and 16% were information technology solutions. -- Total revenues were $1.54 billion and represented 7% growth, of which 5% was internal. The Commercial segment contributed 60% of revenues and grew 8% with 5% internal revenue growth. The Government segment contributed 40% of revenues and grew 6%, excluding divestitures, with 5% internal growth. -- Adjusted non-GAAP diluted earnings per share for the third quarter of fiscal years 2008 and 2007 were $0.91 and $0.78, respectively, representing a 17% increase. Third quarter fiscal year 2008 reported GAAP diluted earnings per share was $0.85 as compared to $0.82 in the prior year third quarter. Third quarter fiscal year 2007 included a $0.06 per diluted share gain related to the sale of a minority interest. See "Reconciliation of Reported GAAP Results to Adjusted Non-GAAP Results" below. -- Cash flow from operations during the third quarter was $229 million, or 15% of revenues. Free cash flow during the quarter was $161 million, or 10% of revenues. This quarter's cash flow results benefited from improved collections on accounts receivable, lower capital expenditures and additions to intangible assets. -- The Company expanded its service offerings and global capabilities by closing the following acquisitions this quarter: o In January 2008, to support its expansion, the Company acquired Syan Holdings Limited, a U.K.-based provider of information technology outsourcing services, for a purchase price of $69 million. Syan generated trailing twelve month revenue of approximately $75 million. o In February 2008, to deepen its healthcare vertical, the Company acquired Bowers & Associates, Inc., a Wisconsin-based provider of quality care and productivity management services and healthcare data analytics, for a purchase price of $8 million. Bowers had trailing twelve month revenue of approximately $5 million. o In March 2008, to further support its global expansion, the Company acquired sds business services GmbH, a Germany-based provider of data center, infrastructure services, and application related solutions, for a purchase price of $63 million. sds generated trailing twelve month revenue of approximately $40 million. o In March 2008, to broaden its transportation vertical, the Company acquired Communications Development, Inc., an Arkansas-based provider of outsourced marketing, consulting, and advertising services to the commercial transportation industry. Key year-to-date highlights for fiscal 2008: -- Year-to-date fiscal 2008 new business signings were $591 million of annual recurring revenue, with an estimated total contract value of $2.5 billion. Commercial signings contributed 55% of year-to-date fiscal 2008 new business signings and Government contributed 45%. From a service line perspective, business process outsourcing generated 80% of new business signings and 20% were information technology solutions. Trailing twelve month new business signings were $744 million in annual recurring revenue and increased 24% over the prior period. -- Year-to-date fiscal 2008 revenues were $4.55 billion. Total revenue growth was 7% with internal growth of 5%. The Commercial segment accounted for 59% of revenues in the year-to-date period and grew 7% with 5% internal revenue growth. The Government segment accounted for 41% of revenues in the year-to-date period and grew 7% with 6% internal revenue growth. -- Adjusted non-GAAP diluted earnings per share for the nine months ended March 31, 2008 and 2007 were $2.58 and $2.24, respectively, representing a 15% increase. Year-to-date fiscal 2008 reported GAAP diluted earnings per share was $2.32 compared to $2.12 in the prior year. See "Reconciliation of Reported GAAP Results to Adjusted Non-GAAP Results" below. -- Fiscal year-to-date cash flow from operations was $560 million, or 12% of revenues, and free cash flow was $342 million, or 8% of revenues. Capital expenditures and additions to intangibles were $218 million, or 5% of revenues. -- During the second quarter of fiscal year 2008, the Company completed a $200 million share repurchase program, purchasing 4.5 million shares at an average price of $44 per share. Events subsequent to ACS' fiscal year 2008 third quarter: -- In April 2008, to deepen its transportation vertical, the Company announced its intent to acquire Orbital Sciences Corporation's Transportation Management Systems (TMS) business for a purchase price of $43 million. TMS had trailing twelve month revenue of approximately $50 million. -- In April 2008, to broaden its healthcare vertical, the Company acquired CompIQ Corporation (CompIQ) for a purchase price of $22 million. CompIQ generated approximately $17 million of trailing twelve month revenue.

ACS will discuss its financial results on a conference call and web cast on http://www.acs-inc.com/ at 3:30 p.m. central time today. During the conference call, management will refer to a presentation provided on the Investor Relations page of ACS' website and will use certain non-generally accepted accounting principles ("GAAP") financial measures for which reconciliations to the most directly comparable GAAP financial measures will also be provided.

ACS, a FORTUNE 500 company with in excess of 63,000 people supporting client operations in more than 100 countries, provides business process outsourcing and information technology solutions to world-class commercial and government clients. The Company's Class A common stock trades on the New York Stock Exchange under the symbol "ACS." Visit ACS on the Internet at http://www.acs-inc.com/.

All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Company's prior filings with the Securities and Exchange Commission, including those set forth under Item 1A "Risk Factors" in the most recent Annual Report on Form 10-K filed on August 29, 2007. In addition, we operate in a highly competitive and rapidly changing environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statement.

AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES Consolidated Statements of Income Dollars in thousands, except per share amounts (Unaudited) Three months ended March 31, 2008 2007 Revenues $1,542,370 $1,440,546 Operating expenses: Cost of revenues: Wages and benefits 736,646 689,298 Services and supplies 338,320 304,734 Rent, lease and maintenance 184,622 174,052 Depreciation and amortization 96,413 87,995 Other 7,274 8,406 Total cost of revenues 1,363,275 1,264,485 Other operating expenses 15,184 13,470 Total operating expenses 1,378,459 1,277,955 Operating income 163,911 162,591 Interest expense 39,325 46,391 Other non-operating income, net (4,514) (12,325) Pretax profit 129,100 128,525 Income tax expense 46,462 46,466 Net income $82,638 $82,059 Earnings per share: Basic $0.86 $0.83 Diluted $0.85 $0.82 Shares used in computing earnings per share: Basic 96,089 98,945 Diluted 96,921 100,300 Note: See "Summary Reconciliation of Reported GAAP Results to Adjusted Non-GAAP Results" for certain items impacting the reported numbers above. AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES Consolidated Statements of Income Dollars in thousands, except per share amounts (Unaudited) Nine months ended March 31, 2008 2007 Revenues $4,546,895 $4,252,745 Operating expenses: Cost of revenues: Wages and benefits 2,153,642 2,023,766 Services and supplies 1,006,543 913,714 Rent, lease and maintenance 554,743 530,207 Depreciation and amortization 281,595 254,861 Other 21,171 28,161 Total cost of revenues 4,017,694 3,750,709 Other operating expenses 61,995 48,259 Total operating expenses 4,079,689 3,798,968 Operating income 467,206 453,777 Interest expense 126,344 140,489 Other non-operating income, net (10,703) (24,629) Pretax profit 351,565 337,917 Income tax expense 121,187 122,401 Net income $230,378 $215,516 Earnings per share: Basic $2.34 $2.15 Diluted $2.32 $2.12 Shares used in computing earnings per share: Basic 98,447 100,448 Diluted 99,414 101,749 Note: See "Summary Reconciliation of Reported GAAP Results to Adjusted Non-GAAP Results" for certain items impacting the reported numbers above. AFFILIATED COMPUTER SERVICES, INC AND SUBSIDIARIES Condensed Consolidated Balance Sheets Dollars in thousands (Unaudited) March 31, June 30, 2008 2007 Assets Cash and cash equivalents $328,907 $307,286 Accounts receivable, net 1,362,320 1,257,108 Income taxes receivable 10,871 13,268 Other current assets 250,328 232,872 Total current assets 1,952,426 1,810,534 Property, equipment, and software, net 899,280 897,319 Goodwill 2,750,337 2,612,368 Other intangible assets, net 446,637 481,378 Other assets 205,147 180,830 Total Assets $6,253,827 $5,982,429 Liabilities: Accounts payable $200,969 $97,951 Accrued compensation and benefits 177,737 246,742 Other accrued liabilities 359,244 400,238 Deferred taxes 84,457 14,418 Current portion of long-term debt 47,056 47,039 Current portion of unearned revenue 168,179 164,484 Total current liabilities 1,037,642 970,872 Long-term debt 2,370,894 2,342,272 Deferred taxes 376,175 367,565 Other long-term liabilities 318,710 235,552 Total Liabilities 4,103,421 3,916,261 Total Stockholders' Equity 2,150,406 2,066,168 Total Liabilities and Stockholders' Equity $6,253,827 $5,982,429 Frequently Used Terms

New business signings -- while there are no third party standards or requirements governing the calculation of new business signings, we define new business signings as annual recurring revenue from new contracts and the incremental portion of renewals that are signed during the period, which represents the estimated first twelve months of revenue to be recorded under the contracts after full implementation. We use new business signings as a measure of estimated recurring revenues represented by contractual commitments, both to forecast prospective revenues and to estimate capital commitments. Revenues are measured under GAAP.

Trailing twelve month new business -- is the preceding twelve months of new business signings at a point in time expressed in annual revenue, not total contract value.

Total contract value -- represents estimated total revenue over the term of the contract.

Restatement of Operating Segment Results

During the first quarter of fiscal year 2008, the Company reorganized the internal operating and reporting structures in its Commercial and Government segments to more formally align its sales, service delivery and financial organizations under their appropriate leadership. As a result, the Company has restated its Commercial and Government segment results for the three and nine months ended March 31, 2007 to reflect its current operating and reporting structure. The restatement has no impact on the Company's consolidated results for the period of restatement.

Use of Non-GAAP Financial Information

The Company reports its financial results in accordance with GAAP. However, the Company uses certain non-GAAP performance measures, including adjusted non-GAAP earnings per share, free cash flow and internal revenue growth to provide both management and investors a more complete understanding of the Company's underlying operational trends and results.

Management uses these non-GAAP measures to provide additional meaningful comparisons between current results and prior results, and as a basis for planning and forecasting for future periods.

Reconciliation of Reported GAAP Results to Adjusted Non-GAAP Results -- In addition to reporting operating income, pretax income, net income and earnings per share on a GAAP basis, the Company has also made certain non-GAAP adjustments which are described in "Description of Non-GAAP Adjustments," and are reconciled to the corresponding GAAP measures in the attached financial schedules titled, "Reconciliation of Reported Results to Income Adjusted for Certain Non-GAAP Items" included in this earnings release. In making these non-GAAP adjustments, the Company takes into account the impact of items that are infrequently occurring or that are non-operational in nature. Management believes that the exclusion of these items provides a useful basis for evaluating underlying business performance, but should not be considered in isolation and is not in accordance with, or a substitute for, evaluating business unit performance utilizing GAAP financial information. Management uses non-GAAP measures in its budgeting and forecasting processes and to further analyze its financial trends, as well as making financial comparisons to prior periods presented on a similar basis. The Company's management uses each of these non-GAAP financial measures in its own evaluation of the Company's performance, particularly when comparing performance to prior periods, and the Company believes that providing such adjusted results allows investors and other users of the Company's financial statements to better understand the Company's comparative operating performance for the periods presented.

The Company's management uses each of these non-GAAP financial measures in its own evaluation of the Company's performance, particularly when comparing performance to past periods. The Company's non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Although the Company's management believes non-GAAP measures are useful in evaluating the performance of its business, the Company acknowledges that items excluded from such measures may have a material impact on the Company's income from operations, pretax income, net income and earnings per share calculated in accordance with GAAP. Therefore, management uses non-GAAP measures in conjunction with GAAP results. Investors and users of our financial information should also consider the above factors when evaluating our results.

Description of Non-GAAP Adjustments:

The following items are included in our presentation of Non-GAAP adjustments:

1. Costs related to our internal investigation of our stock option grant practices, investigations begun by the Securities and Exchange Commission and Department of Justice, and shareholder derivative suits: The Company has incurred costs related to our internal investigation, as well as those of the SEC and DOJ. In addition, several derivative lawsuits have been filed in connection with our stock option grant practices, generally alleging claims related to breach of fiduciary duty and unjust enrichment by certain of our directors and senior executives and the Company has incurred costs related to these lawsuits. Management expects that the Company will continue to incur costs related to the ongoing investigations and derivative lawsuits (collectively, "Option Investigation Related Costs"). Management believes that these costs, although material and recurring, are not related to the Company's ongoing operations and that excluding them helps to provide a more meaningful representation of the Company's operating performance. 2. Costs related to buyout offers and related shareholder derivative suits: The Company has incurred costs in fiscal years 2008 and 2007 to evaluate our strategic alternatives, including the proposal from Darwin Deason, Chairman of the Board of Directors, and Cerberus. In addition, several lawsuits have been filed in connection with the announced buyout transaction, generally alleging claims related to breach of fiduciary duty, and seeking class action status ("Buyout Related Cost"). Management expects that the Company may continue to incur costs related to our evaluation of strategic alternatives and these lawsuits. Management believes that these costs, although material and possibly recurring, are not related to the Company's ongoing operations and that excluding them helps to provide a more meaningful representation of the Company's operating performance. 3. Cost related to amending certain employee stock options: During fiscal year 2007 and the first quarter of fiscal year 2008, the Company amended the exercise price of certain outstanding stock options in order to reprice all, or a portion, of the respective stock option grants to the correct accounting measurement date to avoid adverse tax consequences to individual holders under Section 409A of the Internal Revenue Code ("Section 409A"). During the first quarter of fiscal year 2008, the Company expensed approximately $1.2 million related to these amended stock options ("Amended Options"). During the third quarter of fiscal year 2008, the Company paid approximately $6.7 million to the individual holders in accordance with the terms of the amended stock options. Management believes that these costs and cash payments are not related to the Company's ongoing operations and that excluding them helps to provide a more meaningful representation of our operating performance. 4. Cost related to certain former employees' stock options: The exercise price of certain former employees' vested, unexercised and outstanding stock options were less than the fair market value per share of ACS stock on the revised measurement dates for such stock options. During the first quarter of fiscal year 2008, the Company notified certain former employees that the Company will pay them the additional 20% income tax imposed by Section 409A if a triggering event occurs and if the employee is required to recognize and report W-2 income under Section 409A, subject to certain limitations. During the three and nine months ended March 31, 2008, the Company accrued approximately $0.5 million and $1.0 million, respectively, based on the market price of ACS common stock at March 31, 2008 and will adjust this accrual to the fair market value of ACS stock each quarter until the options are exercised ("Income Tax Reimbursements"). Management believes that these costs are not related to the Company's ongoing operations and that excluding them helps to provide a more meaningful representation of our operating performance. 5. Gain related to sale of our decision support business: In the second quarter of fiscal year 2008, the Company divested its decision support business and recognized a pre-tax gain of $2.4 million. Management believes that the decision support business is not strategic to our ongoing operations and its sale is an isolated event. Management believes excluding the gain on its sale better reflects the performance of our continuing operations. 6. Waiver fee on our Credit Facility: In the first quarter of fiscal year 2007, the Company received an amendment, consent and waiver from the lenders under our Credit Facility with respect to, among other provisions, waiver of any default or event of default arising under the Credit Facility as a result of our failure to comply with certain reporting covenants ("Waiver Fee"). Management believes that our delayed filings of our Annual Report on Form 10-K for the year ended June 30, 2006 and Quarterly Report on Form 10-Q for the period ended September 30, 2006, which necessitated the waiver, are infrequently occurring events and excluding the Waiver Fee provides a more meaningful representation of our results of operations for the first quarter of fiscal year 2007. 7. Gain related to sale of minority interests: In the third quarter of fiscal year 2007, the Company divested its minority interest in a professional service business and recognized a pre-tax gain of $9.1 million. Management believes that this sale is an isolated event related to non-core operations and not representative of our ongoing operations. This business was not considered strategic to our ongoing operations and excluding the gains on the sale helps to isolate the performance of our continuing operations. 8. North Carolina contract settlement ("NC Settlement"): In the third quarter of fiscal year 2007, we mutually agreed to terminate the North Carolina MMIS contract, settled all issues related to the contract, and recognized $3.4 million in revenue related to this settlement. The Company believes that the contract termination and settlement was an infrequent occurrence and that excluding this settlement helps to provide a more meaningful representation of the performance of our continuing operations. 9. Litigation settlement: In the third and fourth quarters of fiscal year 2007, we recorded charges of approximately $2.2 million and $2.3 million, respectively, related to the settlement of a pre-acquisition claim related to our fiscal year 2005 acquisition of the human resources consulting business of Mellon Financial Corporation. In the third quarter of fiscal year 2008, we recovered approximately $1.8 million of this settlement. We believe that the settlement and subsequent recovery of this pre-acquisition claim is not related to our ongoing operations and that excluding them helps to provide a more meaningful representation of the performance from our continuing operations. AFFILIATED COMPUTER SERVICES, INC. AND SUBSIDIARIES RECONCILIATION OF OPERATING INCOME (GAAP) TO ADJUSTED OPERATING INCOME (Non-GAAP) (UNAUDITED) (In millions) Three Months Ended Nine Months Ended March 31, March 31, 2008 2007 2008 2007 Operating Income (GAAP) $163.9 $162.6 $467.2 $453.8 Adjusting items, pre-tax: Option investigation related costs 9.8 4.3 34.0 26.0 Buyout related costs 0.2 0.6 8.9 0.6 Amended options (409(a)) - - 1.2 - Income tax reimbursement 0.5 - 1.0 - Sale of decision support business - - (2.4) - NC settlement - (3.4) - (3.4) Legal settlement (1.8) 2.2 (1.8) 2.2 Adjusted Operating Income (Non-GAAP)* $172.7 $166.3 $508.2 $479.2 RECONCILIATION OF NET INCOME (GAAP) TO ADJUSTED NET INCOME (Non-GAAP) (UNAUDITED) (In millions) Three Months Ended Nine Months Ended March 31, March 31, 2008 2007 2008 2007 Net Income (GAAP) $82.6 $82.1 $230.4 $215.5 Adjusting items, net of tax: Option investigation related costs 6.3 2.7 21.9 16.6 Buyout related costs 0.1 0.4 5.8 0.4 Amended options (409(a)) - - 0.8 - Income tax reimbursement 0.3 - 0.7 - Sale of decision support business - - (1.6) - Waiver fee - - - 1.6 Sale of minority interests - (5.9) - (5.9) NC settlement - (2.1) - (2.1) Legal settlement (1.1) 1.4 (1.1) 1.4 Adjusted Net Income (Non-GAAP)* $88.3 $78.5 $256.8 $227.5 RECONCILIATION OF DILUTED EARNINGS PER SHARE (GAAP) TO ADJUSTED DILUTED EARNINGS PER SHARE (Non-GAAP) (UNAUDITED) Three Months Ended Nine Months Ended March 31, March 31, 2008 2007 2008 2007 Diluted Earnings Per Share (GAAP) $0.85 $0.82 $2.32 $2.12 Adjusting items, net of tax: Option investigation related costs 0.06 0.03 0.22 0.17 Buyout related costs - - 0.06 - Amended options (409(a)) - - 0.01 - Income tax reimbursement - - 0.01 - Sale of decision support business - - (0.02) - Waiver fee - - - 0.01 Sale of minority interests - (0.06) - (0.06) NC settlement - (0.02) - (0.02) Legal settlement (0.01) 0.01 (0.01) 0.01 Adjusted Diluted Earnings Per Share (Non-GAAP)* $0.91 $0.78 $2.58 $2.24 *Differences in schedule due to rounding.

Internal revenue growth -- is measured as total revenue growth less acquired revenue from acquisitions and revenues from divested operations. Acquired revenue from acquisitions is based on pre-acquisition normalized revenue of acquired companies. We use the calculation of internal revenue growth to measure revenue growth excluding the impact of acquired revenues and the revenue associated with divested operations and we believe these adjustments to historical reported results are necessary to accurately reflect our internal revenue growth.

For the three months ended March 31, 2008, the Company generated internal revenue growth of 5%. Internal revenue growth is measured as follows (unaudited, $ in millions):

Three months ended March 31, 2008 2007 Growth %(a) Consolidated Total Revenues $1,542 $1,440 7% Less: Divested - (2) Adjusted Base $1,542 $1,438 7% Acquired Revenues* $33 $- 2% Internal Revenues 1,509 1,438 5% Total $1,542 $1,438 7% Commercial Total Revenues $922 $851 8% Less: Divested - - Adjusted Base $922 $851 8% Acquired Revenues* $26 $- 3% Internal Revenues 896 851 5% Total $922 $851 8% Government Total Revenues $620 $589 5% Less: Divested - (2) Adjusted Base $620 $587 6% Acquired Revenues* $7 $- 1% Internal Revenues 613 587 5% Total $620 $587 6% * Acquired revenues are based on pre-acquisition normalized revenues of acquired companies. (a) Differences in schedule due to rounding.

For the nine months ended March 31, 2008, the Company generated internal revenue growth of 5%. Internal revenue growth is measured as follows (unaudited, $ in millions):

Nine months ended March 31, 2008 2007 Growth %(a) Consolidated Total Revenues $4,547 $4,253 7% Less: Divested - (3) Adjusted Base $4,547 $4,250 7% Acquired Revenues* $71 $- 2% Internal Revenues 4,476 4,250 5% Total $4,547 $4,250 7% Commercial Total Revenues $2,704 $2,533 7% Less: Divested - - Adjusted Base $2,704 $2,533 7% Acquired Revenues* $50 $- 2% Internal Revenues 2,654 2,533 5% Total $2,704 $2,533 7% Government Total Revenues $1,843 $1,720 7% Less: Divested - (3) Adjusted Base $1,843 $1,717 7% Acquired Revenues* $21 $- 1% Internal Revenues 1,822 1,717 6% Total $1,843 $1,717 7% * Acquired revenues are based on pre-acquisition normalized revenues of acquired companies. (a) Differences in schedule due to rounding. Free Cash Flow

Free cash flow -- is measured as operating cash flow (net cash provided by operating activities, as reported in our consolidated statements of cash flows) less capital expenditures (purchases of property, equipment and software, net of sales, as reported in our consolidated statements of cash flows) less additions to other intangible assets (as reported in our consolidated statements of cash flows). We believe that this free cash flow metric provides an additional measure of available cash flow after we have satisfied the capital expenditure requirements of our operations, and should not be taken in isolation to be a measure of cash flow available for us to satisfy all our obligations and execute our business strategies. We also rely on cash flows from investing and financing activities which, together with free cash flow, are expected to be sufficient for us to execute our business strategies. Our measure of free cash flow may not be comparable to similarly titled measures of other companies. (unaudited, $ in millions):

Three months ended Nine months ended March 31, March 31, 2008 2007 2008 2007 Free Cash Flow Net cash provided by operating activities $229 $90 $560 $395 Less: Purchase of property, equipment and software, net of sales (60) (69) (193) (239) Additions to other intangible assets (8) (15) (26) (30) Free Cash Flow* $161 $6 $342 $126 Certain cash flow items (included above): Cash interest paid on debt $32 $39 $118 $121 Cash paid on stock option investigations, potential buyout and derivative lawsuits 6 6 35 25 Tax, interest and penalties paid on stock option restatement - 35 - 35 Payments related to amended options 7 - 7 - Cash interest received (1) (2) (7) (7) Total* $43 $78 $153 $174 *Differences in schedule due to rounding.

Affiliated Computer Services, Inc.

CONTACT: Investors, Jon Puckett, Vice President, Investor Relations,
+1-214-841-8281, jon.puckett@acs-inc.com, or media, Kevin Lightfoot, Vice
President, Corporate Communications, +1-214-841-8191,
kevin.lightfoot@acs-inc.com, both of Affiliated Computer Services, Inc.

Web site: http://www.acs-inc.com/

Hifn, Inc. Reports Q2 FY2008 Results and Announces Stock Repurchase Program

LOS GATOS, Calif., May 1 /PRNewswire-FirstCall/ -- Hifn(TM) today reported financial results for the second quarter ended March 31, 2008. This press release contains both GAAP and non-GAAP financial information for which a reconciliation can be found on the final page.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070723/CLM036LOGO)

Revenues for the second quarter of fiscal 2008 were $9.3 million, a decrease of 15 percent from the $10.9 million in revenues reported in the previous quarter and a decrease of 16 percent from the $11.0 million in revenues reported in the second quarter of fiscal 2007. Revenues for the six months ended March 31, 2008 were $20.2 million, a decrease of one percent from the $20.3 million reported for the six months ended March 31, 2007.

Net loss for the second quarter ended March 31, 2008, on a generally-accepted accounting principles (GAAP) basis, was $2.0 million, or a loss of $0.14 per share. Non-GAAP net loss, adjusted for stock-based compensation expense and amortization of intangible assets, for the second quarter of fiscal 2008 was $748,000, or a loss of $0.05 per share. Net loss for the second quarter ended March 31, 2007, on a GAAP basis, was $707,000, or a loss of $0.05 per share. Non-GAAP net income, adjusted for stock-based compensation expense and amortization of intangible assets, for the second quarter of fiscal 2007 was $575,000, or an income of $0.04 per share.

Net loss for the six months ended March 31, 2008, on a GAAP basis, was $2.7 million, or a loss of $0.18 per share. Non-GAAP net loss, adjusted for stock-based compensation expense and amortization of intangible assets, for the six months ended March 31, 2008 was $246,000, or a loss of $0.02 per share. Net loss for the six months ended March 31, 2007, on a GAAP basis, was $3.4 million, or a loss of $0.24 per share. Non-GAAP net loss, adjusted for stock-based compensation expense and amortization of intangible assets, for the six months ended March 31, 2007 was $947,000, or a loss of $0.07 per share.

"This was a challenging quarter for the company, and our results underscore the combined execution and business environment issues we are addressing as we simultaneously expand our product line while diversifying out of our legacy dependence upon a relatively narrow customer set for top line growth. In the most recent quarter, revenue from two of our largest OEM customers came in below our expectations, while the new volume-production revenue streams driving our diversification strategy are now beginning to grow," said Albert E. Sisto, Chairman and CEO of Hifn. "We are however encouraged by our cost and cash management over the quarter. Operating expenses for the quarter were in line with earlier guidance and declined from expenses in the prior year second quarter, and our cash reserves have increased by $3.2M since the end of our 2007 fiscal year. We are continuing to upgrade and expand our sales force as we add feet on the street to stimulate revenue growth." Sisto continued, "Despite these transitional challenges, the core of the Hifn business and product family value proposition is meeting with growing acceptance and market adoption by a much wider customer set than at any time in our history, driven in the main by the ongoing convergence of networking and storage. We remain confident in our technology and close customer relationships going forward in 2008 and we have the financial resources to pursue our strategy," Sisto concluded.

Hifn management will hold a conference call to discuss these results today, May 1, 2008 at 1:30 p.m. Pacific Daylight Time (PDT). Those wishing to join should dial 800-509-8613 (domestic U.S.) or 706-679-4544 (international) at approximately 1:15 p.m. Playback of the conference call will be available for 72 hours after the call and may be accessed by calling 800-642-1687, pass code 44064623. This press release and information regarding the conference call may be accessed through the Investor Relations page in Hifn's corporate website at http://www.hifn.com/.

Hifn also announced today that its Board of Directors has approved a stock repurchase program under which Hifn may repurchase up to $8 million of its common stock. Under this stock repurchase program, until September 30, 2008, shares may be repurchased from time to time in the open market or through negotiated transactions.

"We are pleased that our Board of Directors has approved this repurchase program," commented Mr. Sisto. "This repurchase program is consistent with our commitment to enhance shareholder value."

Hifn is not obligated to purchase any shares under this stock repurchase program. Subject to applicable corporate securities laws, repurchases under this stock repurchase program may be made at such times and in such amounts as Hifn's management deems appropriate. Purchases under this stock repurchase program can be discontinued at any time management feels additional purchases are not warranted. Hifn intends on funding the repurchases under this stock repurchase program with existing cash resources.

About Hifn

Hifn delivers the key channel and OEM ingredients for 21st century storage and networking environments. Leveraging over a decade of leadership and expertise in the development of purpose-built Applied Services Processors (ASPs), Hifn is a trusted partner to industry leaders for whom infrastructure innovation in storage and networking is critical to success. With the majority of secure networked communications flowing through Hifn technology, the 21st century convergence of storage and networking drives our product roadmap forward. For more information, please visit: http://www.hifn.com/.

Non-GAAP Measures

Management uses non-GAAP measures internally for evaluating current financial performance, strategic decision making and forecasting. These non-GAAP measures are a derivative of our GAAP results adjusted for stock-based compensation expense and amortization of intangible assets. Given the importance of non-GAAP measures to management, Hifn believes these non-GAAP measures will help analysts and investors better understand management assessment of the company's operational financial performance as compared to prior periods. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data. Non-GAAP measures used by Hifn may be different from those used by other companies.

This press release contains forward-looking statements, such as statements about future events, such as Hifn's future financial performance, including statements related to increasing acceptance of our storage segment solutions, continued strong shipments of our network security processors, our ability to generate cash from our core business and Hifn's intention to repurchase shares of its common stock under the stock repurchase program. Readers are cautioned that Hifn's forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, such as: our dependence on a small number of customers; changes in customer demand and customer ordering patterns; stimulation of revenue growth through sales force expansion and product acceptance; continuous decline of expenses from prior year; our ability to successfully integrate and operate the business and technology of Siafu Software; and unexpected economic slowdown in the technology sector. In addition, Hifn's intention to repurchase shares of its common stock under the stock repurchase program may be affected by a number of factors, including, but not limited to: fluctuations in Hifn's stock price; Hifn's liquidity needs; management's assessment of general business or market conditions; and management's determination of alternative uses of Hifn's cash resources. Additional risks are detailed from time to time in Hifn's filings with the Securities and Exchange Commission. Hifn expressly disclaims any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Hifn's most recent reports on Form 10-K and Form 10-Q. Hifn's results of operations for the three months ended March 31, 2008 are not necessarily indicative of Hifn's operating results for any future periods. Any projections in this release are based on limited information currently available to Hifn and speak only as of the date of this release.

Hi/fn(R) is a registered trademark of hi/fn, inc. Hifn is a trademark of hi/fn, inc.

HIFN, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended March 31, March 31, 2008 2007 2008 2007 Net revenues $9,265 $11,029 $20,194 $20,298 Costs and operating expenses: Cost of revenues 3,122 3,596 6,594 6,800 Research and development 3,496 3,101 7,098 7,420 Sales and marketing 2,930 2,117 5,324 3,939 General and administrative 1,275 2,658 2,997 5,100 Amortization of intangibles 749 738 1,498 1,475 11,572 12,210 23,511 24,734 Loss from operations (2,307) (1,181) (3,317) (4,436) Interest and other income, net 284 490 629 980 Loss before income taxes (2,023) (691) (2,688) (3,456) Provision for (benefit from) income taxes 11 16 26 (47) Net loss $(2,034) $(707) $(2,714) $(3,409) Net loss per share, basic and diluted $(0.14) $(0.05) $(0.18) $(0.24) Weighted average shares outstanding, basic and diluted 14,859 13,973 14,818 13,960 HIFN, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) March 31, September 30, 2008 2007 ASSETS Current assets: Cash & short-term investments $38,504 $35,322 Accounts receivable, net 6,981 7,450 Inventories 2,817 2,784 Prepaid expenses and other current assets 1,143 1,428 Total current assets 49,445 46,984 Other receivables 164 189 Property and equipment, net 2,132 1,982 Goodwill, intangibles and other assets, net 7,987 9,811 $59,728 $58,966 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,191 $1,467 Accrued expenses and other current liabilities 4,343 4,051 Total current liabilities 6,534 5,518 Stockholders' equity: Common stock 15 15 Paid-in capital 174,042 171,573 Accumulated other comprehensive loss (6) 3 Accumulated deficit (116,430) (113,716) Treasury stock, at cost (4,427) (4,427) Total stockholders' equity 53,194 53,448 $59,728 $58,966 HIFN, INC. RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended March 31, March 31, 2008 2007 2008 2007 GAAP net loss $(2,034) $(707) $(2,714) $(3,409) Reconciling items: Stock-based compensation expense 537 544 970 987 Amortization of intangibles 749 738 1,498 1,475 Non-GAAP net income (loss) $(748) $575 $(246) $(947) GAAP basic net loss per share $(0.14) $(0.05) $(0.18) $(0.24) Reconciling items: Stock-based compensation expense 0.04 0.04 0.06 0.07 Amortization of intangibles 0.05 0.05 0.10 0.10 Non-GAAP basic net income (loss) per share $(0.05) $0.04 $(0.02) $(0.07) GAAP diluted net loss per share $(0.14) $(0.05) $(0.18) $(0.24) Reconciling items: Stock-based compensation expense 0.04 0.04 0.06 0.07 Amortization of intangibles 0.05 0.05 0.10 0.10 Non-GAAP diluted net income (loss) per share $(0.05) $0.04 $(0.02) $(0.07) Shares used to calculate GAAP net loss per share: Basic 14,859 13,973 14,818 13,960 Diluted 14,859 13,973 14,818 13,960 Shares used to calculate non-GAAP net income (loss) per share: Basic 14,859 13,973 14,818 13,960 Diluted 14,859 14,182 14,818 13,960

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20070723/CLM036LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Hifn, Inc.

CONTACT: William R. Walker, Vice President and Chief Financial Officer,
of Hifn, Inc., +1-408-399-3537, wwalker@hifn.com

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

GSI Commerce to Participate in Two Investor Conferences in May

KING OF PRUSSIA, Pa., May 1 /PRNewswire-FirstCall/ -- Leading e-commerce solutions provider, GSI Commerce Inc. , today announced that both Michael G. Rubin, the company's chairman, president and chief executive officer, and Michael R. Conn, the company's chief financial officer, are scheduled to participate at the Third Annual Needham & Company Internet and Digital Media Conference to be held May 8, in New York, N.Y., and also at the Goldman Sachs Ninth Annual Internet Conference to be held May 21 in Las Vegas, Nev.

GSI will present at the Needham & Co. conference on Thurs., May 8 at 1:30 p.m. EDT. A live audio webcast will be available to the public at http://www.wsw.com/webcast/needham24/gsic. GSI will present at the Goldman Sachs conference on Wed., May 21 at 2:35 p.m. PDT. A live audio webcast will be available to the public at http://cc.talkpoint.com/GOLD006/052108a_mg/?entity=gsicomm.

About GSI Commerce

GSI Commerce(R) (http://www.gsicommerce.com/) is a leading provider of services that enable e-commerce, multichannel retailing and interactive marketing for large, business-to-consumer (b2c) enterprises in the U.S. and internationally. We deliver customized e-commerce solutions through an e-commerce platform, which is comprised of technology, fulfillment and customer care. We offer each of the platform's components on a modular basis, or as part of an integrated, end-to-end solution. We also offer a full suite of interactive marketing services through two divisions, gsi interactive(SM) and e-Dialog Inc.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements to be made during the presentation, including those in the tape recording, live audio and live Webcast of the presentation, other than statements of historical fact, are or will be forward-looking statements. Actual results might differ materially from what is expressed or implied by these forward- looking statements. Additional information about potential factors that could affect GSI Commerce can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed by GSI Commerce with the SEC. GSI Commerce expressly disclaims any intent or obligation to update these forward-looking statements.

Contact: GSI Commerce, Inc. Corporate Marketing 610.491.7474 Fax: 610.265.2866 news@gsicommerce.com

GSI Commerce Inc.

CONTACT: GSI Commerce, Inc. Corporate Marketing, +1-610-491-7474, Fax,
+1-610-265-2866, news@gsicommerce.com

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

Entravision Communications Corporation Reports First Quarter 2008 Results- First Quarter 2008 Net Revenue Decreases 2% -- Repurchases 3.4 Million Shares in the First Quarter -- Completes First $100 Million Repurchase Plan Authorized on November 1, 2006 -

SANTA MONICA, Calif., May 1 /PRNewswire-FirstCall/ -- Entravision Communications Corporation today reported financial results for the three-month period ended March 31, 2008.

Historical results, which are attached, are in thousands of U.S. dollars (except share and per share data). The results of our outdoor operations are presented in discontinued operations within the statements of operations in accordance with SFAS 144, "Accounting for the Impairment or Disposal of Long-Lived Assets." This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure, is included beginning on page 7. Unaudited financial highlights are as follows:

Three-Month Period Ended March 31, 2008 2007 % Change Net revenue $55,653 $56,895 (2)% Operating expenses (1) 35,409 35,045 1 % Corporate expenses (2) 4,454 4,630 (4)% Consolidated adjusted EBITDA (3) 15,036 17,232 (13)% Free cash flow (4) $2,661 $6,647 (60)% Free cash flow per share, basic and diluted (4) $0.03 $0.06 (50)% Net loss (income) from continuing operations $(7,050) $908 NM Net loss applicable to common stockholders $(7,704) $(3,287) 134% Net loss (income) per share from continuing operations applicable to common stockholders, basic and diluted $(0.07) $0.01 NM Net loss per share applicable to common stockholders, basic and diluted $(0.08) $(0.03) 167% Weighted average common shares outstanding, basic 95,416,338 103,859,772 Weighted average common shares outstanding, diluted 95,416,338 104,285,879 (1) Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.4 million of non-cash stock-based compensation for the three-month periods ended March 31, 2008 and 2007, respectively. Operating expenses do not include corporate expenses, depreciation and amortization, and gain (loss) on sale of assets. (2) Corporate expenses include $0.4 million and $0.6 million of non-cash stock-based compensation for the three-month periods ended March 31, 2008 and 2007, respectively. (3) Consolidated adjusted EBITDA means net income (loss) plus (gain) loss on sale of assets, depreciation and amortization, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, income tax expense (benefit), equity in net income (loss) of nonconsolidated affiliate and syndication programming amortization less syndication programming payments. We use the term consolidated adjusted EBITDA because that measure is defined in our syndicated bank credit facility and does not include (gain) loss on sale of assets ,depreciation and amortization, non-cash stock-based compensation, net interest expense, income tax expense (benefit), equity in net income (loss) of nonconsolidated affiliate and syndication programming amortization and does include syndication programming payments. While many in the financial community and we consider consolidated adjusted EBITDA to be important, it should be considered in addition to, but not as a substitute for or superior to, other measures of liquidity and financial performance prepared in accordance with accounting principles generally accepted in the United States of America, such as cash flows from operating activities, operating income and net income. As consolidated adjusted EBITDA excludes non-cash (gain) loss of sales of assets, non-cash depreciation and amortization, non-cash stock-based compensation, net interest expense, income tax expense (benefit), equity in net income (loss) of nonconsolidated affiliate and syndication programming amortization and includes syndication programming payments, consolidated adjusted EBITDA has certain limitations because it excludes and includes several important non-cash financial line items. Therefore, we consider both non-GAAP and GAAP measures when evaluating our business. (4) Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense and capital expenditures. Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, less interest income less the change in the fair value of our interest rate swaps. Free cash flow per share is defined as free cash flow divided by the diluted weighted average common shares outstanding.

Commenting on the Company's earnings results, Walter Ulloa, Chairman and Chief Executive Officer, said, "During the first quarter we continued to execute on our strategic plan and strengthen the position of our television and radio stations in a challenging advertising environment due to general economic conditions. We also faced difficult comparisons in our operational results compared to the year ago period, when we outperformed the industry with robust results from both our television and radio divisions. We remain well positioned to capitalize on the expanding purchasing power of the Hispanic consumer. We are prudently investing in our broadcasting assets to build audience share, penetrating new business and maintaining our disciplined cost approach. We have a strong balance sheet and the pending sale of our outdoor advertising assets for $100 million will provide us with substantial financial flexibility to execute on our growth initiatives and build value for our shareholders."

The Company also announced that it repurchased 3.4 million shares of Class A common stock for approximately $22.4 million in the first quarter of 2008. Additionally, the Company announced that it repurchased 1.3 million shares of Class A common stock for approximately $8.4 million in the second quarter of 2008 thus completing the $100 million repurchase program authorized by the Company's Board of Directors on November 1, 2006. The Company's Board of Directors approved the repurchase of an additional $100 million of the Company's common stock on April 7, 2008.

Financial Results Three Months Ended March 31, 2008 Compared to Three Months Ended March 31, 2007 (Unaudited) Three-Month Period Ended March 31, 2008 2007 % Change Net revenue $55,653 $56,895 (2)% Operating expenses (1) 35,409 35,045 1 % Corporate expenses (1) 4,454 4,630 (4)% Depreciation and amortization 5,545 5,720 (3)% Operating income 10,245 11,500 (11)% Interest expense, net (22,164) (9,846) 125 % Income (loss) before income taxes (11,919) 1,654 NM Income tax (expense) benefit 4,995 (746) NM Net income (loss) before equity in net loss of nonconsolidated affiliates and discontinued operations (6,924) 908 NM Equity in net loss of nonconsolidated affiliates (126) - NM Income (loss) from continuing operations (7,050) 908 NM Loss from discontinued operations, net of tax (654) (4,195) (84)% Net loss $(7,704) $(3,287) 134 % (1) Operating expenses and corporate expenses are defined on page 1.

Net revenue decreased to $55.7 million for the three-month period ended March 31, 2008 from $56.9 million for the three-month period ended March 31, 2007, a decrease of $1.2 million. Of the overall decrease, $0.7 million came from our television segment and was primarily attributable to a decrease in national advertising sales, primarily due to a decrease in advertising rates. Additionally, $0.5 million of the overall decrease came from our radio segment and was primarily attributable to a decrease in local advertising sales, primarily due to a decrease in inventory sold and a decrease in advertising rates.

Operating expenses increased to $35.4 million for the three-month period ended March 31, 2008 from $35.0 million for the three-month period ended March 31, 2007, an increase of $0.4 million. The increase was primarily attributable to an increase in wages, syndication amortization and rent expense, partially offset by a decrease in national representation fees and other expenses associated with the decrease in net revenue.

Corporate expenses decreased to $4.5 million for three-month period ended March 31, 2008 from $4.6 million for the three-month period ended March 31, 2007, a decrease of $0.1 million. The decrease was primarily attributable to a decrease in non-cash stock-based compensation.

Segment Results The following represents selected unaudited segment information: Three-Month Period Ended March 31, 2008 2007 % Change Net Revenue Television $36,105 $36,791 (2) % Radio 19,548 20,104 (3) % Total $55,653 $56,895 (2) % Operating Expenses (1) Television $21,513 $21,494 0 % Radio 13,896 13,551 3 % Total $35,409 $35,045 1 % Corporate Expenses (1) $4,454 $4,630 (4)% Consolidated adjusted EBITDA (1) $15,036 $17,232 (13)% (1) Operating expenses, Corporate expenses, and Consolidated adjusted EBITDA are defined on page 1. Guidance

The following is the Company's guidance for the second quarter of 2008. Guidance constitutes a "forward-looking statement." Please see below regarding statements that are forward-looking.

Operating expenses and corporate expenses include non-cash stock-based compensation to comply with Statement of Financial Accounting Standards ("SFAS") No. 123 (Revised 2004), "Share-Based Payment" ("SFAS 123R"). The Company expects approximately $0.4 million in operating expenses and $0.5 million in corporate expenses related to equity compensation in the second quarter of 2008.

For the second quarter of 2008, the Company expects net revenues to decrease by low- to mid-single digit percentages and operating expenses to increase by low-single digit percentages as compared to the second quarter of 2007. Excluding the non-cash stock-based compensation, corporate expenses are expected to be approximately flat as compared to the second quarter of 2007.

Entravision Communications Corporation will hold a conference call to discuss its 2008 first quarter results on May 1, 2008 at 5 p.m. Eastern Time. To access the conference call, please dial 212-231-2918 ten minutes prior to the start time. The call will be webcast live and archived for replay at http://www.entravision.com/.

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision is the largest affiliate group of both the top-ranked Univision television network and Univision's TeleFutura network, with television stations in 20 of the nation's top 50 Hispanic markets. The company also operates one of the nation's largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC.

This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company's filings with the Securities and Exchange Commission.

(Financial Tables Follow) Entravision Communications Corporation Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited) Three-Month Period Ended March 31, 2008 2007 Net revenue (including related parties of $150 and $150) $55,653 $56,895 Expenses: Direct operating expenses (including related parties of $2,493 and $2,727) (including non-cash stock-based compensation of $124 and $153) 24,734 24,216 Selling, general and administrative expenses (including non-cash stock-based compensation of $155 and $267) 10,675 10,829 Corporate expenses (including non-cash stock-based compensation of $435 and $647) 4,454 4,630 Depreciation and amortization (includes direct operating of $4,344 and $4,478; selling, general and administrative of $1,002 and $1,027; and corporate of $199 and $215) (including related parties of $580 and $580) 5,545 5,720 45,408 45,395 Operating income 10,245 11,500 Interest expense (including related parties of $58 and $73) (22,595) (11,110) Interest income 431 1,264 Income (loss) before income taxes (11,919) 1,654 Income tax (expense) benefit 4,995 (746) Income (loss) before equity in net loss of nonconsolidated affiliate and discontinued operations (6,924) 908 Equity in net loss of nonconsolidated affiliate (including non-cash stock-based compensation of $0 and $2) (126) - Income (loss) from continuing operations (7,050) 908 Loss from discontinued operations, net of tax benefit of $973 and $2,646 (654) (4,195) Net loss applicable to common stockholders $(7,704) $(3,287) Basic and diluted earnings per share: Net income (loss) per share from continuing operations applicable to common stockholders, basic and diluted $(0.07) $0.01 Net loss per share from discontinued operations, basic and diluted $(0.01) $(0.04) Net loss per share applicable to common stockholders, basic and diluted $(0.08) $(0.03) Weighted average common shares outstanding, basic 95,416,338 103,859,772 Weighted average common shares outstanding, diluted 95,416,338 104,285,879 Entravision Communications Corporation Consolidated Statements of Cash Flows (In thousands, except share and per share data) (Unaudited) Three-Month Period Ended March 31, 2008 2007 Cash flows from operating activities: Net loss $(7,704) $(3,287) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 5,545 5,720 Deferred income taxes (5,217) (2,365) Amortization of debt issue costs 101 101 Amortization of syndication contracts 866 16 Payments on syndication contracts (707) (19) Equity in net loss of nonconsolidated affiliate 126 - Non-cash stock-based compensation 714 1,067 Change in fair value of interest rate swap agreements 14,043 3,286 Changes in assets and liabilities, net of effect of acquisitions and dispositions: Decrease in accounts receivable 6,475 2,716 Increase in prepaid expenses and other assets (655) (453) Decrease in accounts payable, accrued expenses and other liabilities (1,101) (3,262) Effect of discontinued operations (661) 8,106 Net cash provided by operating activities 11,825 11,626 Cash flows from investing activities: Proceeds from sale of property and equipment and intangibles 91 - Purchases of property and equipment and intangibles (4,004) (3,425) Purchase of a business (22,885) - Effect of discontinued operations (130) (359) Net cash used in investing activities (26,928) (3,784) Cash flows from financing activities: Proceeds from issuance of common stock 486 2,552 Payments on long-term debt (10,027) (76) Repurchase of Class U common stock (10,380) - Repurchase of Class A common stock (22,500) (2,840) Excess tax benefits from exercise of stock options - 123 Net cash used in financing activities (42,421) (241) Net increase (decrease) in cash and cash equivalents (57,524) 7,601 Cash and cash equivalents: Beginning 86,945 118,525 Ending $29,421 $126,126 Entravision Communications Corporation Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities (Unaudited; in thousands)

The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:

Three-Month Period Ended March 31, 2008 2007 Consolidated adjusted EBITDA (1) $15,036 $17,232 Interest expense (22,595) (11,110) Interest income 431 1,264 Income tax (expense) benefit 4,995 (746) Income tax benefit in discontinued operations 973 2,646 Amortization of syndication contracts (866) (16) Payments on syndication contracts 707 19 Non-cash stock-based compensation included in direct operating expenses (124) (153) Non-cash stock-based compensation included in selling, general and administrative expenses (155) (267) Non-cash stock-based compensation included in corporate expenses (435) (647) Depreciation and amortization (5,545) (5,720) Depreciation and amortization in discontinued operations - (5,789) Equity in net loss of nonconsolidated affiliates (126) - Net loss (7,704) (3,287) Depreciation and amortization 5,545 5,720 Deferred income taxes (5,217) (2,365) Amortization of debt issue costs 101 101 Amortization of syndication contracts 866 16 Payments on syndication contracts (707) (19) Equity in net loss of nonconsolidated affiliate 126 - Non-cash stock-based compensation 714 1,067 Change in fair value of interest rate swap agreements 14,043 3,286 Changes in assets and liabilities, net of effect of acquisitions and dispositions: Decrease in accounts receivable 6,475 2,716 Increase in prepaid expenses and other assets (655) (453) Decrease in accounts payable, accrued expenses and other liabilities (1,101) (3,262) Effect of discontinued operations (661) 8,106 Cash flows from operating activities $11,825 $11,626 (1) Consolidated adjusted EBITDA is defined on page 1. Entravision Communications Corporation Reconciliation of Free Cash Flow to Net Income (Loss) (Unaudited; in thousands)

The most directly comparable GAAP financial measure is net income (loss). A reconciliation of this non-GAAP measure to net income (loss) for each periods presented is as follows:

Three-Month Period Ended March 31, 2008 2007 Consolidated adjusted EBITDA (1) $15,036 $17,232 Net interest expense (1) 8,020 6,459 Cash paid for income taxes 222 342 Capital expenditures (2) 4,133 3,784 Free cash flow (1) 2,661 6,647 Capital expenditures (2) 4,133 3,784 Non-cash interest (expense) income relating to amortization of debt finance costs and interest rate swap agreements (14,144) (3,387) Non-cash income tax benefit 6,190 2,242 Amortization of syndication contracts (866) (16) Payments on syndication contracts 707 19 Non-cash stock-based compensation included in direct operating expenses (124) (153) Non-cash stock-based compensation included in selling, general and administrative expenses (155) (267) Non-cash stock-based compensation included in corporate expenses (435) (647) Depreciation and amortization (5,545) (5,720) Depreciation and amortization in discontinued operations - (5,789) Equity in net loss of nonconsolidated affiliates (126) - Net loss $(7,704) $(3,287) (1) Consolidated adjusted EBITDA, net interest expense and free cash flow are defined on page 1. (2) Capital expenditures is not part of the consolidated statement of operations.

Entravision Communications Corporation

CONTACT: John DeLorenzo, Chief Financial Officer of Entravision
Communications Corporation, +1-310-447-3870; or Mike Smargiassi or Joe
Kessler, both of Brainerd Communicators, Inc., +1-212-986-6667, for
Entravision Communications Corporation

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

DATATRAK International Management to Host Conference Call on May 8, 2008 to Discuss First Quarter Operating Results for 2008

CLEVELAND, May 1 /PRNewswire-FirstCall/ -- DATATRAK International, Inc. , a technology and services company focused on global eClinical solutions for the clinical trials industry, today announced that it will host a conference call to discuss first quarter operating results for 2008 at 4:30 p.m. ET on Thursday, May 8, 2008.

To participate via phone, participants are asked to dial 412-858-4600 a few minutes before 4:30 p.m. ET. The conference call will also be available via live web cast on DATATRAK International, Inc.'s web site by clicking the button labeled "Click here for Live Web Cast, 1st Quarter Earnings Call" on the Company's homepage at http://www.datatrak.net/ a few minutes before 4:30 p.m. ET.

A replay of the phone call and web cast will each be available at approximately 6:30 p.m. ET on May 8, 2008 and will run until 9:00 a.m. ET on May 15, 2008. The phone replay can be accessed by dialing 412-317-0088 (access code 419020). To access the web cast replay go to the Company's homepage at http://www.datatrak.net/ and click the button labeled "Click here for Replay of Web Cast, 1st Quarter Earnings Call."

DATATRAK International, Inc. is a worldwide technology company focused on the provision of multi-component eClinical solutions and related services for the clinical trials industry. The Company delivers a complete portfolio of software products that were created in order to accelerate clinical research data from investigative sites to clinical trial sponsors and ultimately the FDA, faster and more efficiently than manual methods or loosely integrated technologies. The DATATRAK eClinical(TM) software suite can be deployed worldwide through an ASP offering or in a licensed Enterprise Transfer ASP model that fully empowers clients to design, set up and manage their clinical trials independently. The DATATRAK software suite and its earlier versions have successfully supported hundreds of international clinical trials involving thousands of clinical research sites and encompassing tens of thousands of patients in 59 countries. DATATRAK International, Inc.'s product suite has been utilized in some aspect of the clinical development of 16 separate drugs and one medical device that have received regulatory approval from either the United States Food and Drug Administration or counterpart European bodies. DATATRAK International, Inc. has offices located in Cleveland, Ohio, Bonn, Germany, and Bryan, Texas. Its common stock is listed on the NASDAQ Stock Market under the ticker symbol "DATA". Visit the DATATRAK International, Inc. web site at http://www.datatrak.net/.

Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. These forward- looking statements are made based on management's expectations, assumptions, estimates and current beliefs concerning the operations, future results and prospects of the Company and are subject to uncertainties and factors (including those specified below) which are difficult to predict and, in many instances, are beyond the control of the Company. Factors that may cause actual results to differ materially from those in the forward-looking statements include the limited operating history on which the Company's performance can be evaluated; the ability of the Company to continue to enhance its software products to meet customer and market needs; fluctuations in the Company's quarterly results; the viability of the Company's business strategy and its early stage of development; the timing of clinical trial sponsor decisions to conduct new clinical trials or cancel or delay ongoing trials; the Company's dependence on major customers; government regulation associated with clinical trials and the approval of new drugs; the ability of the Company to compete in the emerging EDC market; losses that potentially could be incurred from breaches of contracts or loss of customer data; the inability to protect intellectual property rights or the infringement upon other's intellectual property rights; the Company's success in integrating its acquisition's operations into its own operations and the costs associated with maintaining and/or developing two product suites; and general economic conditions such as the rate of employment, inflation, interest rates and the condition of capital markets. This list of factors is not all-inclusive. In addition, the Company's success depends on the outcome of various strategic initiatives it has undertaken, all of which are based on assumptions made by the Company concerning trends in the clinical research market and the health care industry. The Company undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise.

CONTACT: Jeffrey A. Green, Pharm.D., FCP President and Chief Executive Officer DATATRAK International, Inc. 440/443-0082 x112 Raymond J. Merk Chief Financial Officer DATATRAK International, Inc. 440/443-0082 x181 Neal Feagans Investor Relations Feagans Consulting, Inc. 303/449-1184

DATATRAK International, Inc.

CONTACT: Jeffrey A. Green Pharm.D., FCP, President and Chief Executive
Officer, +1-440-443-0082, x112, or Raymond J. Merk, Chief Financial Officer,
+1-440-443-0082, x181, both of DATATRAK, International, Inc.; Neal Feagans,
Investor Relations, Feagans Consulting, Inc., +1-303-449-1184

Web site: http://www.datatrak.net/

Image Sensing Systems Announces First Quarter Financial Results

SAINT PAUL, Minn., May 1 /PRNewswire-FirstCall/ -- Image Sensing Systems, Inc. , announced today record financial results for its first quarter ended March 31, 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050512/CGISSLOGO)

Net income for the first quarter was $1.1 million ($.26 per fully diluted share) compared to $556,000 ($0.14 per fully diluted share) for the same period in 2007. Revenues for the first quarter were $5.9 million compared to $2.6 million for the same period a year ago. Revenue from royalties increased 26% to $2.9 million from $2.3 million in the first quarter of 2007 and reflects the continued success of our North American distributor, Econolite Control Products, Inc. (ECPI), in selling Autoscope(R) products in the United States and Canada. North American sales, which are sales of RTMS(R) in North America, were $1.6 million. International sales, which include both Autoscope and RTMS sales outside of North America, were $1.4 million in the first quarter, a four-fold increase over $353,000 in the same period in 2007. Sales of RTMS world-wide for the quarter were $1.8 million. We acquired the RTMS family of products in December 2007.

On a non-GAAP basis, excluding intangible asset amortization net of tax, net income for the quarter increased 113% to $1.2 million ($.29 per fully diluted share) and operating income increased 162% to $1.7 million as compared to the first quarter of 2007.

Ken Aubrey, CEO, said, "Our results reflect continued strong organic growth in our core business in addition to the solid performance of our recent acquisition despite what is typically the seasonally slowest quarter of the year. We executed well across all product lines and regions including the newly acquired RTMS radar family and were the beneficiary of several large projects internationally.

"We look forward to beginning shipments of the next generation RTMS G4 in the second quarter of 2008 and concluding some important enhancements for Autoscope Terra. We believe this should position us well for the remainder of 2008."

New Bank Financing

On May 1, 2008, we entered into three loan agreements with Associated Bank that replace our previous arrangements with Wells Fargo. The first two agreements include a three-year amortizing $3 million term loan and a three- year $5 million revolving line of credit. Under the agreements we have drawn fully the $3 million term loan and have advanced $2 million on the line of credit. A major benefit of the new agreements is that we are required to pledge only our auction rate securities (ARS) as collateral and the borrowings are based on an advance formula which includes ARS and receivables. This has freed up over $3.5 million in money market funds that were pledged under the Wells Fargo arrangement. The third agreement is a $10 million guidance facility to be used for future acquisitions. The use of the facility is subject to lender due diligence and meeting certain debt service ratios. We refer you to our Current Report on 8-K filed with the SEC dated May 1, 2008 for further detail.

Auction Rate Security Update

We continue to hold $5.5 million in face value of student loan backed ARS, substantially all of which are Federal government backed under the Federal Family Education Loan Program. All auctions since mid-February involving our ARS have failed. We continue to believe that the underlying credit quality of the ARS is excellent and that the main problem remains illiquidity. Based on an analysis of the ARS fair value, we have determined there is a temporary impairment and have recorded an unrealized loss of $251,000 ($166,000 net of tax) and have reclassified the ARS as long-term assets at March 31, 2008. The unrealized loss does not flow through our income statement, rather it is recorded directly to shareholders' equity as a component of accumulated other comprehensive income/loss. There is uncertainty in the ARS market and, should circumstances change, we may deem the impairment to be other than temporary or otherwise adjust our analysis.

Non-GAAP Information

We provide certain non-GAAP financial information as supplemental information to GAAP amounts. This non-GAAP information excludes the impact, net of tax, of amortizing the intangible assets from the EIS asset purchase that occurred in December 2007. Management believes that this presentation facilitates the comparison of our current operating results to historical operating results. Management uses this non-GAAP information to evaluate short-term and long-term operating trends in our core operations. Non-GAAP information is not prepared in accordance with GAAP and should not be considered a substitute for or an alternative to GAAP financial measures and may not be computed the same as similarly titled measures used by other companies.

About Image Sensing

Image Sensing Systems, Inc. is a technology company specializing in software-based detection solutions for the Intelligent Transportation Systems (ITS) sector and adjacent overlapping markets. Our industry leading computer enabled detection (CED) products, including the Autoscope(R) machine-vision family and the RTMS(R) radar family, combine embedded software signal processing with sophisticated sensing technologies for use in transportation and safety/surveillance management. CED is a group of technologies in which software, rather than humans, examines the outputs of complex sensors to determine what is happening in the field of view in real-time. With more than 80,000 instances sold in over 60 countries worldwide, our depth of experience coupled with breadth of product portfolio uniquely positions us to provide powerful hybrid technology solutions and to exploit the convergence of the traffic, security and environmental management markets. We are headquartered in St. Paul, Minnesota. Visit us on the web at imagesensing.com.

Safe Harbor Statement: Statements made in this release concerning the Company's or management's intentions, expectations, or predictions about future results or events are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Factors that could produce such a variation include, but are not limited to, the following: the inherent unreliability of earnings, revenue and cash flow predictions due to numerous factors, many of which are beyond the Company's control; developments in the demand for the Company's products and services; relationships with the Company's major customers and suppliers; unanticipated delays, costs and expenses inherent in the development and marketing of new products and services; the impact of governmental laws and regulations; and competitive factors. Our forward-looking statements speak only as of the time made, and we assume no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from the Company's current expectations are contained in the Company's reports and other documents filed with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2007.

Image Sensing Systems, Inc. Condensed Consolidated Statements of Income (in thousands, except per share information) (unaudited) Three-Month Period Ended March 31, 2008 2007 Revenue Royalties $2,892 $2,291 North American sales 1,625 - International sales 1,355 353 5,872 2,644 Cost of revenue Cost of sales 1,202 127 Gross profit 4,670 2,517 Operating expenses Selling, marketing and product support 1,333 685 General and administrative 888 570 Research and development 701 594 Amortization of intangible assets 192 - 3,114 1,849 Income from operations 1,556 668 Other income, net 41 138 Income before income taxes 1,597 806 Income taxes 541 250 Net income $1,056 $556 Net income per common share Basic $0.27 $0.15 Diluted $0.26 $0.14 Weighted average shares outstanding Basic 3,928 3,774 Diluted 4,026 3,888 Image Sensing Systems, Inc. Condensed Consolidated Statements of Income Reconciliation of GAAP to non-GAAP basis (in thousands, except per share information) (unaudited) GAAP Non-GAAP basis adjustments basis Quarter ended March 31, 2008 Revenue $ 5,872 $- $ 5,872 Cost of revenue 1,202 - 1,202 Gross profit 4,670 - 4,670 Operating expenses 3,114 (192)(1) 2,922 Income from operations 1,556 192 1,748 Other income 41 - 41 Income before income taxes 1,597 192 1,789 Income taxes 541 65(2) 606 Net income $1,056 $127 $1,183 Basic net income per share $0.27 $0.30 Diluted net income per share $0.26 $0.29 Weighted shares - basic 3,928 3,928 Weighted shares - diluted 4,026 4,026 Notes to adjustments (1) Intangible asset amortization for quarter (2) Income tax expense impact of (1) at ISS' marginal tax rate of 34% Image Sensing Systems, Inc. Condensed Consolidated Balance Sheet (in thousands) (unaudited) March 31, December 31, 2008 2007 Assets Current assets Cash and cash equivalents (including restricted cash) $6,559 $10,876 Receivables, net 5,273 4,997 Inventories 1,888 1,579 Prepaid expenses and deferred taxes 492 370 14,212 17,822 Property and equipment, net 639 700 Investments, net of valuation allowance 5,199 - Deferred income taxes 1,826 1,676 Goodwill and intangible assets, net 9,948 10,140 $31,824 $30,338 Liabilities and Shareholders' Equity Current liabilities Accounts payable and accrued expenses $ 1,916 $ 2,029 Bank debt 5,000 5,000 Income taxes payable 674 - 7,590 7,029 Income taxes payable - 84 Shareholders' equity 24,234 23,225 $31,824 $30,338 Image Sensing Systems, Inc. Condensed Consolidated Statement of Cash Flows (in thousands) (unaudited) Three-Month Period Ended March 31, 2008 2007 Operating activities Net income $1,056 $556 Adjustments to reconcile net income to net cash provided by (used in) operations Depreciation and amortization 290 57 Stock option expense 73 29 Changes in operating assets and liabilities (249) (722) Net cash provided by (used in) operating activities 1,170 (80) Investing activities Purchase of property and equipment, net of disposals (37) 4 Sale (purchase) of investments (5,450) 1,000 Net cash provided by (used in) investing activities (5,487) 1,004 Financing activity - proceeds from exercise of stock options - 30 Increase (decrease) in cash and cash equivalents (4,317) 954 Cash and cash equivalents, beginning of period 10,876 11,626 Cash and cash equivalents, end of period $6,559 $12,580

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20050512/CGISSLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk photodesk@prnewswire.com Image Sensing Systems

CONTACT: Greg Smith, Chief Financial Officer of Image Sensing Systems,
Inc., +1-651-603-7700

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

Photon Dynamics Reports Fiscal 2008 Second Quarter Results

SAN JOSE, Calif., May 1 /PRNewswire-FirstCall/ -- Photon Dynamics, Inc. today reported financial results for the second quarter of fiscal year 2008, ended March 31, 2008.

Revenue for the second quarter of fiscal 2008 was $45.1 million, compared to first quarter fiscal 2008 revenue of $16.2 million and second quarter of 2007 of $13.9 million. Net income for the second quarter was $3.9 million or $0.21 earnings per diluted share, compared to first quarter net loss of $8.2 million or $0.46 loss per share and a loss of $15.7 million or $0.95 loss per share for the second quarter a year ago.

Net income for the second quarter of fiscal 2008 reflects a net of $0.3 million in charges related to the following items:

-- Stock-based employee compensation expense of $0.5 million -- Recovery of previously reserved inventory of $1.9 million -- Amortization of intangible assets of $0.9 million -- Restatement-related expenses of $0.9 million

Second quarter non-GAAP net income was $4.2 million or $0.23 earnings per diluted share, compared to first quarter non-GAAP net loss of $5.7 million or $0.31 loss per share and non-GAAP loss of $10.9 million or $0.66 loss per share for the second quarter a year ago. A reconciliation of these non-GAAP measures is provided after the GAAP financial statements below.

Bookings for the second quarter of fiscal 2008 reached $80.0 million, and the Company posted a shippable backlog of $125.6 million at the end of March 2008. The Company noted that bookings and backlog are not necessarily indicative of future revenue and that historically bookings have fluctuated on a quarter-to-quarter basis. These fluctuations in bookings may continue in the future. The Company's cash, cash equivalents, short-term and long term investments were $65.2 million as of March 31, 2008.

Jeff Hawthorne, president and chief executive officer, commented, "Our second consecutive quarter of record bookings and our return to profitability demonstrate the execution of our strategic initiatives to enhance our competitiveness and drive to sustained profitability. With steady implementation of our strategic initiatives and with the shippable backlog of $125.6 million at the end of March, we are solidly poised to capitalize on the current growth cycle. We remain sharply focused on enhancing our profitability through a cycle. I appreciate all employees for their relentless hard work and dedication which facilitated our business wins."

Company Projections for Fiscal Year 2008 Third Quarter

The Company estimates revenue for the third quarter of fiscal 2008 to be between $4