RealNetworks Announces Intention to Spin Off Its Casual Games Business

SEATTLE, May 8 /PRNewswire-FirstCall/ -- RealNetworks(R), Inc., today announced that it intends to separate its global casual games business into an independent company and distribute shares of the newly created games company to its shareholders. RealNetworks may precede the spin off with an initial public offering and sale of up to 20% of the shares of the new games company.

RealNetworks' casual games business is a leader in the casual games industry worldwide, with a vertically integrated development, publishing, licensing, distribution and retail business. Casual games are family friendly and easy-to-learn but hard-to-master. Played on personal computers, mobile devices and living room consoles, casual games include board, word and hidden-object games and puzzles. In the first quarter of 2008, RealNetworks' games business revenue rose 33% from the first quarter of 2007 to $31.8 million. For 2007, games revenue was $108.5 million, up 26% over 2006.

"RealNetworks was a pioneer and has been a leader in the casual games industry since we introduced RealArcade in 2001," said Rob Glaser, Chairman and CEO of RealNetworks. "We believe that spinning off our casual games business will give it the best opportunity to continue to flourish and lead."

The company anticipates that spinning off its casual games business will result in two more flexible and focused companies. In addition, the separation will provide the games business with an industry-specific currency for future acquisitions and enhance its ability to attract and retain the best talent in the industry.

"Today's announcement demonstrates our commitment to create long-term value for RealNetworks' shareholders," said Michael Eggers, Senior Vice President and CFO of RealNetworks. "For investors, we anticipate that the spin off will create a pure-play casual games business with increased transparency, and that it will result in lower complexity in understanding and tracking RealNetworks' performance. We also think that the new structure will provide current and potential shareholders with two attractive investment options that may be more closely aligned with their various investment objectives."

RealNetworks expects that either a spin off or an IPO and subsequent spin off will be tax-free to its shareholders. In addition to a final approval by the RealNetworks' Board of Directors, completion of the transaction will be subject to a number of factors, including the effectiveness of a registration statement, the receipt of a favorable letter ruling from the Internal Revenue Service, the receipt of an opinion of tax counsel, market conditions, the execution of inter-company agreements and other matters.

RealNetworks expects to determine its specific course of action in time to file appropriate documents with the Securities and Exchange Commission by the end of the year.

Website materials

A Q&A, an 8K and this press release will be posted on special pages of the company's website, and can be found at http://investor.realnetworks.com/games.

Webcast and Conference Call Information

The Company will host a webcast and conference call today in conjunction with its regular first quarter earnings call at 5:00 pm ET/2:00 pm PT. The live webcast, featuring slides and audio, will be available at http://investor.realnetworks.com/. Listeners must use RealPlayer(R) to listen to the conference call, which can be downloaded for free at http://www.real.com/. The on-demand webcast will be available approximately two hours following the conclusion of the live webcast. Participants may access the conference call by dialing 800-857-5305 (773-681-5857 for international callers).

The passcode is "First Quarter Earnings" and the leader is Rob Glaser. A telephonic replay will be available until 8:00 pm ET on May 22, 2008, and may be accessed by dialing 866-424-3998 (for domestic callers) and 203-369-0851 (for international callers).

ABOUT REALNETWORKS

RealNetworks, Inc. delivers digital entertainment services to consumers via PC, portable music player, home entertainment system and mobile phone. Real created the streaming media category in 1995 and has continued to lead the market with pioneering products and services, including: RealPlayer(R), the first mainstream media player to enable one-click downloading and recording of Internet video; the award-winning Rhapsody(R) digital music service, which delivers more than 1 billion songs per year; RealArcade(R), one of the largest casual games destinations on the Web; and a variety of mobile entertainment services, such as ringback tones, offered to consumers through leading wireless carriers around the world. RealNetworks' corporate information is located at http://www.realnetworks.com/company.

Note Regarding Games Business Financial Information. In connection with any spin off or IPO transaction, RealNetworks intends to prepare separate, audited historical annual financial statements and unaudited historical quarterly financial statements for its games businesses on a stand-alone basis. The operating results and financial data reflected in the stand-alone financial statements of RealNetworks games business could differ from the operating results and financial data reported by RealNetworks on a consolidated basis in this press release due to adjustments made during the preparation and/or audit of the stand-alone financial statements.

Safe Harbor for Forward Looking Statements: This release contains a number of forward-looking statements that involve risks and uncertainties. Forward-looking statements are often identified by words such as "believe," "may," "will," "optimistic," "anticipate," "intend," "should," "could," "would," "strategy," "plan," "continue," or the negative of these words or other words or expressions of similar meaning and include, but are not limited to, statements regarding the following: RealNetworks' intention to separate its games business, distribute shares of the newly created games company to its shareholders and potentially precede the spin off with an initial public offering and sale of up to 20% of the shares of the games company; the anticipated benefits of the separation, spin off and IPO, including the opportunity of the games business to flourish and lead; the potential for the separated companies to better focus on their different markets; the ability of each company to make future acquisitions, retain employees and increase long-term value for shareholders; anticipated creation of a pure-play casual games business with increased transparency and anticipated lower complexity in understanding and tracking RealNetworks' performance; the intended tax-free nature of the proposed transactions; and the timing of RealNetworks' determination regarding the structure of the transaction. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by such statements, including, but not limited to, the following: the ability of RealNetworks to successfully manage and consummate the separation, spin off and/or potential IPO process including the risk of any delays in connection therewith or that such transactions may not occur; the state of the financial markets; the possibility that RealNetworks' financial results will be harmed as a result of the separation of the games business; risks relating to the allocation of assets and personnel between the companies; the increased expenses resulting from such transactions; the potential for business disruption and employee distraction during such transactions and whether or not such transactions occur and the ability to retain and motivate key employees during such process. More information about risk factors that could affect RealNetworks' business and financial results are included in RealNetworks' reports filed with the Securities and Exchange Commission including, but not limited to, its annual report on Form 10-K for the fiscal year ended December 31, 2007. All forward looking statements include the assumptions that underlie such statements and are based on management's estimates, projections and assumptions as of the date hereof. RealNetworks assumes no obligation to update any such forward looking statements or information.

A registration statement relating to shares to be sold in an IPO, if applicable, will be filed with the Securities and Exchange Commission. Such registration statement has not been filed or become effective. The shares of the games business may not be sold and offers may not be accepted prior to the time such registration statement becomes effective. This release does not constitute an offer to sell or the solicitation of any offer to buy any securities and there shall not be any sale of any securities of the games business in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

RealNetworks, RealPlayer, Rhapsody and RealArcade are trademarks or registered trademarks of RealNetworks or its subsidiaries.

RealNetworks, Inc.

CONTACT: Bill Hankes, +1-206-892-6614, bhankes@real.com, or Financial,
Marj Charlier, +1-206-892-6718, mcharlier@real.com, both of RealNetworks,
Inc.

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

Dot Hill Reports First Quarter 2008 Results

CARLSBAD, Calif., May 8 /PRNewswire-FirstCall/ -- Dot Hill Systems Corp. today announced financial results for the first quarter ended March 31, 2008. For the first quarter of 2008, net revenue was $52.8 million, which includes a reduction in revenue of $2.3 million associated with the warrant issued to Hewlett-Packard, and compares to $53.4 million for the first quarter of 2007 and $51.8 million for the fourth quarter of 2007.

Excluding the $2.3 million reduction in revenue mentioned above, net revenue for the first quarter of 2008 was $55.1 million on a non-GAAP basis, and exceeded the guidance range of $48 to $52 million that the company provided on March 13, 2008.

Net loss was $6.1 million for the first quarter of 2008, or $0.13 per fully diluted share. This compares to a net loss of $6.0 million for the first quarter of 2007, or $0.13 per fully diluted share, and a net loss of $46.4 million for the fourth quarter of 2007, or $1.01 per fully diluted share, which included a non-cash goodwill impairment charge of $40.7 million. Included in the first quarter 2008 net loss was the warrant issued to Hewlett-Packard of $2.3 million, a $3.8 million legal settlement, a $0.3 million currency gain, $0.7 million in share-based compensation expense and $0.3 million in severance costs largely associated with the closure of the company's office in the Netherlands.

On a non-GAAP basis after adjusting for the impacts from the issuance of a warrant to Hewlett-Packard, the legal settlement benefit, share-based compensation expense, foreign currency translation gains and severance costs, net loss for the first quarter of 2008 was $7.0 million, or $0.15 per share on a fully diluted basis, and was within the $0.15 to $0.19 net loss per share range issued by the company on March 13, 2008.

Gross margin for the first quarter of 2008 was 7.9 percent as compared to first quarter 2007 gross margin of 12.5 percent and fourth quarter 2007 gross margin of 12.2 percent. The decrease in gross margin percentage on a year-over-year and sequential basis was due primarily to the reduction in revenue associated with the warrant issued to Hewlett-Packard and secondarily to a change in the company's product sales mix. Adjusting first quarter 2008 results for the reduction in revenue, share-based compensation expense and severance costs, non-GAAP gross margin percentage was 12.0 percent.

The company exited the first quarter of 2008 with cash and cash equivalents of $77.4 million. This compares to the fourth quarter 2007 balance of cash and cash equivalents of $82.4 million. The sequential decrease in cash and cash equivalents was due primarily to operating losses and the creation of hub inventory for certain of Dot Hill's large OEM customers.

"Since last quarter, Dot Hill has made some significant progress on several fronts," said Dana Kammersgard, president and chief executive officer of Dot Hill. "We have executed well on our initial shipments to Hewlett-Packard and been successful in diversifying our revenue stream with now nearly 40 customers who are purchasing our R/Evolution products. There is intense focus on cost of goods sold reductions and tight operating expense control. In all, we continue to believe the combination of top-line growth and margin appreciation from our cost reduction efforts can yield a return to non-GAAP profitability later this year."

The company is targeting second quarter 2008 net revenue in the range of $66 to $70 million and a net loss per fully diluted share in the range of $0.07 to $0.10 on a non-GAAP basis, which excludes share-based compensation expense, foreign currency gains or losses, severance and restructuring expenses

Dot Hill's first quarter 2008 financial results conference call is scheduled to take place on May 8, 2008 at 4:30 p.m. ET. The live audio webcast will be accessible at http://investors.dothill.com/events.cfm. For access via telephone, please dial 877-407-8035 (U.S.) or 201-689-8035 (International) at least five minutes prior to the start of the call. A replay of the webcast will be available on the Dot Hill web site following the conference call. For a telephone replay, please dial 877-660-6853 (U.S.) or 201-612-7415 (International) and enter account number 286, then passcode 2833070.

About Non-GAAP Financial Measures

This press release contains financial results that exclude the effects of the issuance of warrants to Hewlett-Packard, goodwill impairment charges, stock-based compensation expense, severance costs, foreign currency adjustments and costs associated with legal settlements, and are not in accordance with U.S. generally accepted accounting principles (GAAP). The company believes that these non-GAAP financial measures provide meaningful supplemental information to both management and investors that are indicative of the company's core operating results and facilitates comparison of operating results across reporting periods. The company used these non-GAAP measures when evaluating its financial results as well as for internal resource management, planning and forecasting purposes. These non-GAAP measures should not be viewed in isolation from or as a substitute for the company's expected financial results in accordance with GAAP.

About Dot Hill

Delivering innovative technology and global support, Dot Hill empowers the OEM community to bring unique storage solutions to market, quickly, easily and cost-effectively. Offering high performance and industry-leading uptime, Dot Hill's RAID technology is the foundation for best-in-class storage solutions offering enterprise-class security, availability and data protection. The company's products are in use today by the world's leading service and equipment providers, common carriers, advanced technology and telecommunications companies as well as government agencies. Dot Hill solutions are certified to meet rigorous industry standards and military specifications, as well as RoHS and WEEE international environmental standards. Headquartered in Carlsbad, Calif., Dot Hill has offices and/or representatives in China, Germany, Japan, United Kingdom and the United States. For more information, visit us at http://www.dothill.com/.

Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such statements include statements regarding: Dot Hill's projected financial results for the second quarter of 2008; Dot Hill's ability to achieve profitability; and continued diversification of Dot Hill's revenue stream. The risks that contribute to the uncertain nature of the forward-looking statements include, among other things: the risk that actual financial results for the second quarter 2008 may be different from the financial guidance provided in this press release; the fact that no Dot Hill customer agreements provide for mandatory minimum purchase requirements; the risk that one or more of Dot Hill's OEM or other customers may cancel or reduce orders, not order as forecasted or terminate their agreements with Dot Hill; the risk that Dot Hill's new products may not prove to be popular; the risk that one or more of Dot Hill's suppliers or subcontractors may fail to perform or may terminate their agreements with Dot Hill; unforeseen technological, intellectual property, personnel or engineering issues; and the additional risks set forth in the form 10-K and most recently filed by Dot Hill. All forward-looking statements contained in this press release speak only as of the date on which they were made. Dot Hill undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

DOT HILL SYSTEMS CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In Thousands, Except Per Share Amounts) Three Months Ended March 31, 2007 2008 NET REVENUE $53,441 $52,826 COST OF GOODS SOLD 46,767 48,660 GROSS PROFIT 6,674 4,166 OPERATING EXPENSES: Sales and marketing 3,908 4,272 Research and development 6,074 7,424 General and administrative 3,670 3,043 Legal settlement - (3,836) Total operating expenses 13,652 10,903 OPERATING LOSS (6,978) (6,737) OTHER INCOME: Interest income, net 1,308 708 Other income, net - 79 TOTAL OTHER INCOME, NET 1,308 787 LOSS BEFORE INCOME TAXES (5,670) (5,950) INCOME TAX EXPENSE 292 160 NET LOSS $(5,962) $(6,110) NET LOSS PER SHARE: Basic and diluted $(0.13) $(0.13) WEIGHTED AVERAGE SHARES USED TO CALCULATE NET LOSS PER SHARE: Basic and diluted 45,157 45,956 COMPREHENSIVE LOSS: Net loss $(5,962) $(6,110) Foreign currency translation adjustments (604) (231) Comprehensive loss $(6,566) $(6,341) DOT HILL SYSTEMS CORP. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands Except Per Share Amounts) December 31, March 31, 2007 2008 ASSETS Current Assets: Cash and cash equivalents $82,358 $77,406 Accounts receivable, net of allowance of $302 and $195 32,445 36,569 Inventories 9,013 14,430 Prepaid expenses and other 3,968 4,626 Total current assets 127,784 133,031 Property and equipment, net 9,599 8,819 Intangible assets, net 2,280 1,873 Other assets 264 236 Total assets $139,927 $143,959 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $28,472 $35,738 Accrued compensation 3,115 3,612 Accrued expenses 6,227 5,588 Deferred revenue 1,409 1,284 Income taxes payable 143 270 Total current liabilities 39,366 46,492 Other long-term liabilities 4,132 3,769 Total liabilities 43,498 50,261 Commitments and Contingencies Stockholders' Equity: Preferred stock, $.001 par value, 10,000 shares authorized, no shares issued and outstanding - - Common stock, $.001 par value, 100,000 shares authorized, 45,781 and 46,055 shares issued and outstanding at December 31, 2007 and March 31, 2008, respectively 46 46 Additional paid-in capital 294,193 297,803 Accumulated other comprehensive loss (3,100) (3,331) Accumulated deficit (194,710) (200,820) Total stockholders' equity 96,429 93,698 Total liabilities and stockholders' equity $139,927 $143,959 DOT HILL SYSTEMS CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) Three Months Ended March 31, 2007 2008 Cash Flows From Operating Activities: Net loss $(5,962) $(6,110) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,775 1,465 Gain on disposal of property and equipment - (5) Provision for doubtful accounts - (171) Issuance of warrant to customer - 2,282 Share-based compensation expense 225 665 Changes in operating assets and liabilities: Accounts receivable 2,109 (4,032) Inventories (195) (5,390) Prepaid expenses and other assets 1,042 (626) Accounts payable (417) 6,987 Accrued compensation and other expenses (2,250) (121) Deferred revenue 28 (151) Income taxes payable 158 126 Other long-term liabilities 16 (363) Net cash used in operating activities (3,471) (5,444) Cash flows from investing activities Purchase of property and equipment (945) (268) Net cash used in investing activities (945) (268) Cash flows from financing activities Proceeds from sale of stock to employees 508 465 Proceeds from exercise of stock options and warrants 94 198 Net cash provided by financing activities 602 663 Effect of exchange rate changes on cash 64 97 Net decrease in cash and cash equivalents (3,750) (4,952) Cash and cash equivalents beginning of period 99,663 82,358 Cash and cash equivalents end of period $95,913 $77,406 Supplemental disclosures of cash flow information Cash paid for income taxes $125 $35 Supplemental disclosures of non-cash investing and financing activities Construction in progress costs incurred but no paid $481 $142 DOT HILL SYSTEMS CORP. RECONCILIATION TABLE OF NON-GAAP MEASURES (In Thousands, Except Per Share Amounts) (Unaudited) Three Months Ended March 31, 2007 2008 Net loss $(5,962) $(6,110) Effect of issuance of warrant to customer - 2,282 Effect of legal settlement - (3,836) Effect of currency gain (241) (294) Effect of share-based compensation 225 665 Effect of severance costs - 322 Net loss as adjusted $(5,978) $(6,971) Net loss per share: Basic and diluted $(0.13) $(0.15) Weighted average shares used to calculate net loss per share: Basic and diluted 45,157 45,956 Net revenue $53,441 $52,826 Effect of issuance of warrant to customer - 2,282 Net revenue as adjusted $53,441 $55,108 Gross profit $6,674 $4,166 Effect of issuance of warrant to customer - 2,282 Effect of share-based compensation 103 96 Effect of severance costs - 50 Gross profit as adjusted $6,777 $6,594

Dot Hill Systems Corp.

CONTACT: Hanif Jamal, Chief Financial Officer, +1-760-931-5500,
investors@dothill.com, or Kirsten Garvin, Director of Investor Relations,
+1-760-476-3811, kirsten.garvin@dothill.com, both of Dot Hill Systems Corp.

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

TI Vice President Ron Slaymaker to speak at Baird investor conferenceLive webcast at www.ti.com/irMay 14, 2008, 2:30 p.m. Central time

DALLAS, May 8 /PRNewswire/ -- Texas Instruments Incorporated (TI) Vice President Ron Slaymaker will speak at Baird's 2008 Growth Stock Conference in Chicago on Wednesday, May 14, at 2:30 p.m. Central time. Slaymaker will discuss TI's business outlook and its strategy to address key markets for its analog and embedded processing technologies and how these capabilities position it for growth.

The audio webcast can be accessed live through the Investor Relations section (http://www.ti.com/ir) of TI's website. Archived replays are available for 1 week.

Texas Instruments helps customers solve problems and develop new electronics that make the world smarter, healthier, safer, greener and more fun. A global semiconductor company, TI innovates through manufacturing, design and sales operations in more than 25 countries. For more information, go to http://www.ti.com/.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010105/NEF016LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk photodesk@prnewswire.com Texas Instruments Incorporated

CONTACT: Chris Rongone, +1-214-480-6868, c-rongone@ti.com, or Renee
Fancher, +1-214-567-7447, rfancher@ti.com, both of Texas Instruments
Incorporated

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

FairPoint Communications to Release 2008 First Quarter Earnings ResultsConference call and web broadcast details released

CHARLOTTE, N.C., May 8 /PRNewswire-FirstCall/ -- FairPoint Communications, Inc. announced today that it will release its 2008 first quarter financial results at 6:30 a.m. (EDT) on Friday, May 16, 2008. The Company will hold its earnings conference call at 8:30 a.m. (EDT) on the same morning, Friday, May 16, 2008.

Participants should call (888) 253-4456 (US/Canada) or (706) 643-3201 (international) at 8:20 a.m. (EDT) and request the FairPoint Communications First Quarter 2008 Earnings Call or Conference ID# 46956451. A telephonic replay will be available for anyone unable to participate in the live call. To access the replay, call (800) 642-1687 (US/Canada) or (706) 645-9291 (international) and enter confirmation code 46956451. The recording will be available from Friday, May 16, 2008 at 11:00 a.m. (EDT) through Friday, May 23, 2008 at 11:59 p.m. (EDT).

A live broadcast of the earnings conference call will be available via the Internet at http://www.fairpoint.com/ under the Investor Relations section. An online replay will be available beginning at 1:00 p.m. (EDT) on May 16, 2008 and will remain available for one year.

About FairPoint

FairPoint Communications, Inc. is an industry leading provider of communications services to communities across the country. Today, FairPoint owns and operates 32 local exchange companies in 18 states offering advanced communications with a personal touch including local and long distance voice, data, Internet, television and broadband services. FairPoint is traded on the New York Stock Exchange under the symbol FRP. Learn more at http://www.fairpoint.com/.

This press release may contain forward-looking statements by FairPoint that are not based on historical fact, including, without limitation, statements containing the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions and statements. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Such factors include those risks described from time to time in FairPoint's filings with the Securities and Exchange Commission ("SEC"), including, without limitation, the risks described in FairPoint's most recent Annual Report on Form 10-K on file with the SEC. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and FairPoint undertakes no duty to update this information.

CONTACTS: Investors: Brett Ellis 866-377-3747 bellis@fairpoint.com Media: Rose Cummings 704-602-7304 rcummings@fairpoint.com

FairPoint Communications, Inc.

CONTACT: Investors, Brett Ellis, +1-866-377-3747, bellis@fairpoint.com,
or Media, Rose Cummings, +1-704-602-7304, rcummings@fairpoint.com, both of
FairPoint Communications, Inc.

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

DATATRAK International Reports First Quarter Results for 2008

CLEVELAND, May 8 /PRNewswire-FirstCall/ -- DATATRAK International, Inc. , a technology and services company focused on global eClinical solutions for the clinical trials industry, today reported its operating results for the first quarter of 2008.

For the three months ended March 31, 2008, revenue decreased approximately 41% to $2,088,000 and the Company reported a net loss of $(2,233,000), or $(0.16) per share on both a basic and diluted basis. These results compared with revenue of $3,542,000 and a net loss of $(1,895,000) or $(0.16) per share on both a basic and diluted basis in the first quarter of 2007.

The gross profit margin for the first quarter was 55% compared to 62% for the same period a year ago. The decline in gross profit margin was a result of the 41% decrease in revenue partially offset by a 30% reduction in direct costs.

DATATRAK's backlog at March 31, 2008 was $13.9 million and backlog currently stands at approximately $12.9 million. This compares to a backlog of $13.0 million at December 31, 2007. Backlog is defined as the remaining value of signed contracts or authorization letters to commence services. The Company does not include in its backlog potential contracts or authorization letters that have passed the verbal stage, but have not been signed. All contracts are subject to possible delays or cancellation or can change in scope in a positive or negative direction. Therefore, current backlog is not necessarily indicative of the Company's future quarterly or annual revenue. Historically, backlog has been a poor predictor of the Company's short-term revenue.

"In our last financial release and conference call in late February we stated that we were seeing early signs of a building sales momentum as we entered this year and felt we were moving in such a direction that we believed 2008 would place us back on a positive sales growth trend," stated Dr. Jeffery A. Green, President and CEO of DATATRAK International, Inc. "This optimism was supported by a near record volume of approximately $4.1 million of new business during the fourth quarter of 2007, a reflection of positive results from our reorganized marketing and sales efforts. We were careful to frame our anticipated return to growth as a gradual, but positive trend, stating it was certainly possible that as we progressed through the remainder of 2008 and beyond, a particular quarter's sales may not necessarily be greater than the prior, however, looking out, the trend should be progressively upward."

Green Continued, "Based partially on our first quarter 2008 revenues, which represented our first sequential quarterly revenue increase in quite some time (going from $1.8 million in the fourth quarter of 2007 to $2.1 million during the first quarter of this year) and new backlog additions totaling approximately $3 million, I am pleased to report to you today that during this first quarter we continued to make progress towards achieving our recovery goals for 2008."

"Our relationship with NTT DATA continues to advance. During this quarter our respective teams have been working closely on continued training on our eClinical platform and we are working hand-in-hand with NTT DATA's marketing and sales team in Japan. NTT DATA will be present in our booth at the upcoming Annual DIA trade show in Boston in June."

"While challenges and uncertainties still confront us, we are encouraged with our progress during the most recent quarter and remain positive about our future potential. We are focused on, and working to return the Company to a positive cash flow environment as quickly as possible. I encourage you to join our conference call later today where these and other topics will be discussed in more detail."

The Company will also host a conference call today at 4:30 p.m. ET. 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.

DATATRAK International, Inc. and Subsidiaries Condensed Consolidated Balance Sheet Data (Unaudited) March 31, December 31, 2008 2007 Cash and investments $5,950,860 $8,514,361 Accounts receivable, net 1,395,989 1,070,688 Property & equipment, net 3,214,069 3,534,799 Deferred tax assets 1,301,700 1,399,000 Intangible assets, net 333,808 520,458 Goodwill 10,856,113 10,856,113 Other 511,102 577,792 Total assets $23,563,641 $26,473,211 Accounts payable and other current liabilities $6,452,693 $3,971,883 Long-term liabilities 2,674,241 5,931,962 Shareholders' equity 14,436,707 16,569,366 Total liabilities and shareholders' equity $23,563,641 $26,473,211 DATATRAK International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) For the Three Months Ended March 31, 2008 2007 Revenue $2,088,229 $3,542,095 Direct costs 933,879 1,337,471 Gross profit 1,154,350 2,204,624 Selling, general and administrative expenses 2,856,600 3,422,671 Depreciation and amortization 522,426 622,403 Loss from operations (2,224,676) (1,840,450) Interest income 59,740 70,192 Interest expense 66,567 98,669 Loss on disposal 1,382 - Loss before income taxes (2,232,885) (1,868,927) Income tax expense - 26,300 Net loss $(2,232,885) $(1,895,227) Net loss per share: Basic: Net loss per share $(0.16) $(0.16) Weighted-average shares outstanding 13,681,901 11,858,949 Diluted: Net loss per share $(0.16) $(0.16) Weighted-average shares outstanding 13,681,901 11,858,949

DATATRAK International, Inc.

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

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

Limelight Networks Reports First Quarter 2008 Results- Grew revenue to $30.2 million, a 29% increase from the year-ago first-quarter- Signed 183 new customers, up from 84 new customers in last year's first quarter, including 35 international and 77 signed in March- Introduced Limelight Live Event Services - a solution of professional services and advanced technologies - enabling content producers to broadcast live events- Announced content delivery network support for Microsoft Silverlight DRM powered by PlayReady- Launched content delivery network support for Adobe Flash Media Server 3- Received first patent award for digital rights management technology

TEMPE, Ariz., May 8 /PRNewswire-FirstCall/ -- Limelight Networks, Inc. today reported first-quarter 2008 revenue of $30.2 million, and a GAAP net loss of $18.4 million, or 22 cents per basic share. Non-GAAP net loss, adjusted for certain charges, was $2.0 million, or 2 cents per share. EBITDA adjusted for share-based compensation, litigation and damage costs, was $2.1 million. Limelight Networks' non-GAAP EPS loss of 2 cents per basic share excludes a charge of 15 cents per basic share related to litigation and damage costs and 5 cents per basic share of share-based compensation.

Reconciliation of GAAP to non-GAAP net income is included in the attached tables.

"We are pleased with our customer addition rate, platform advancements, additions to our service suite, and progress towards our goal of delivering a brilliant client and end-user experience. Our number of new customer wins was up over 110% compared to the same quarter last year - despite an unfavorable verdict in our ongoing litigation with Akamai. Over 40% of these new customers were signed in March, after the verdict was announced, clearly demonstrating continued confidence in our business," said Jeff Lunsford, chief executive officer, Limelight Networks, Inc.

Business Drivers

Limelight Networks signed 183 new customers in the first quarter, up significantly from 84 signed in the same quarter a year ago. Of those new customer wins, 35 were international, and 77 occurred in the month of March. The Company also saw early success with its newly announced Live Event Services product, continued growth of its electronic software delivery products, expanded agreements with existing customers, and international expansion in the quarter.

Solid Financial Footing

First-quarter revenue was $30.2 million, up 29 percent from $23.4 million in the year-ago first quarter and within the range of guidance previously provided by the Company.

"We are focused on continued growth of recurring revenues and further diversification of revenue streams, including extending our business into the enterprise sector. Our top 20 customers now account for 58% of total revenue, down from 64% a year ago," said Matt Hale, chief financial officer, Limelight Networks, Inc.

Capital purchases were $3.1 million, down from $5.6 million in last year's first quarter.

"We continue to make operational improvements throughout the business, including software platform enhancements and improvements in infrastructure performance," commented Hale.

Limelight Networks ended the quarter with no debt and approximately $195 million in cash and short-term marketable securities.

Second-Quarter Outlook

Limelight Networks anticipates second-quarter revenue to be in the range of $28 million to $30 million.

Conference Call and Web Audiocast

Management will host a quarterly conference call for investors beginning at 2:00 p.m. PST (5:00 p.m. EST). This call can be accessed toll-free at 1.800.561.2718 within the United States or 1.617.614.3525 outside of the U.S. using Conference ID 50345649.

The conference call will also be audiocast live at http://www.llnw.com/ and a replay will be available following the call from the Company's website.

Financial Statements LIMELIGHT NETWORKS, INC. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) March 31, December 31, 2008 2007 Assets Cash and cash equivalents $120,254 $113,824 Marketable securities 74,423 83,273 Accounts receivable, net 22,115 21,407 Income tax receivable 1,366 1,960 Prepaid expenses and other current assets 5,008 4,469 Current assets 223,166 224,933 Property and equipment, net 43,963 46,968 Marketable securities, less current portion 32 87 Other assets 876 1,440 Total assets $268,037 $273,428 Liabilities and stockholders' equity Accounts payable $4,929 $8,523 Accounts payable, related parties 150 230 Deferred revenue, current portion 5,399 4,237 Provision for litigation 55,264 48,130 Other current liabilities 14,753 9,312 Current liabilities 80,495 70,432 Deferred revenue, less current portion 7,328 8,189 Other liabilities 771 770 Total liabilities 88,594 79,391 Stockholders' equity 179,443 194,037 Total liabilities and stockholders' equity $268,037 $273,428 LIMELIGHT NETWORKS, INC. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended March 31, December 31, March 31, December 31, 2008 2007 2007 2006 Revenues $30,202 $29,132 $23,353 $22,110 Costs and operating expenses: Cost of revenues (1)(2) 20,672 18,435 14,497 13,232 General and administrative (1)(2) 13,329 7,961 7,774 10,061 Sales and marketing (1) 8,142 8,619 3,018 2,450 Research and development (1) 1,590 1,385 1,285 1,200 Provision for Litigation 7,134 48,130 - - Total costs and operating expenses 50,867 84,530 26,574 26,943 Operating loss (20,665) (55,398) (3,221) (4,833) Interest expense (21) (6) (573) (431) Interest income 1,891 2,035 89 129 Other income (expense) 170 (177) - 105 Loss before income taxes (18,625) (53,546) (3,705) (5,030) Income tax (benefit) expense (183) 1,799 200 (51) Net loss $(18,442) $(55,345) $(3,905) $(4,979) Net loss allocable to common stockholders $(18,442) $(55,345) $(3,905) $(4,979) Net loss per share: Basic $(0.22) $(0.67) $(0.18) $(0.25) Diluted $(0.22) $(0.67) $(0.18) $(0.25) Shares used in per share calculations: Basic 82,623 82,140 21,945 19,882 Diluted 82,623 82,140 21,945 19,882 (1) Includes share-based compensation (see supplemental table for figures) (2) Includes depreciation (see supplemental table for figures) LIMELIGHT NETWORKS, INC. Supplemental Financial Data (In thousands) (Unaudited) Three Months Ended March 31, December 31, March 31, December 31, 2008 2007 2007 2006 Supplemental financial data (in thousands): Share-based compensation: Cost of revenues $507 $479 $242 $201 General and administrative 1,665 1,454 3,743 4,655 Sales and marketing 1,306 1,272 235 143 Research and development 482 420 851 856 Total share-based Compensation $3,960 $3,625 $5,071 $5,855 Depreciation and amortization: Network-related depreciation $6,013 $5,429 $4,688 $3,908 Other depreciation 247 278 137 91 Total depreciation and amortization $6,260 $5,707 $4,825 $3,999 Capital expenditures: Capital Expenditures (cash and accrual) $3,095 $5,135 $5,575 $17,109 Net increase (decrease) in cash, cash equivalents and marketable securities $(2,475) $3,032 $4,995 $(3,501) End of period statistics: Number of production customers under recurring contract 1,232 1,157 726 693 Number of employees 244 239 167 123 LIMELIGHT NETWORKS, INC. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, December 31, March 31, December 31, 2008 2007 2007 2006 Cash flows from operating activities: Net loss $(18,442) $(55,345) $(3,905) $(4,979) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 6,260 5,707 4,824 3,999 Share-based compensation 3,960 3,625 5,071 5,855 Deferred income tax (benefit) expense (176) 33 (467) (470) Excess tax benefits related to stock option exercises - (1,596) - - Accounts receivable charges 1,562 2,268 677 743 Accretion of debt discount - - 41 74 Accretion of marketable securities (453) (530) - - Gain on sale of property and equipment - - - (175) (Gain) Loss on foreign exchange (106) 42 - - Loss on investment 55 387 - - Unrealized (gain) loss on marketable securities (58) - - - Changes in operating assets and liabilities: Accounts receivable (2,271) (5,243) 1,998 (6,313) Prepaid expenses and other current assets 87 1,037 (1,809) (499) Income taxes receivable 594 2,742 310 (3,124) Other assets 564 11 (119) (162) Accounts payable (4,678) 3,613 (732) (6,074) Accounts payable, related parties (80) 230 1 781 Deferred revenue 301 135 20 - Provision for litigation 7,134 48,130 - - Other current liabilities 5,035 (4,449) 630 2,161 Other long term liabilities 1 740 - - Net cash (used in) provided by operating activities: (711) 1,536 6,540 (8,183) Cash flows from investing activities: Purchase of marketable securities (34,725) (2,081) - - Sale of marketable securities 44,200 20,300 - - Purchases of property and equipment (2,441) (37,569) (3,095) (13,282) Net cash provided by (used in) investing activities 7,034 (19,350) (3,095) (13,282) Cash flows from financing activities: Borrowings on credit facilities - - - 23,818 Payments on credit facilities - - - (7,749) Borrowings on line of credit - - 1,500 - Payments on capital lease obligations - - (159) (71) Payments on notes payable - related parties - - - - Escrow funds returned from share repurchase - 1,190 298 317 Excess tax benefits related to stock option exercises - 1,573 23 1,627 Proceeds from exercise of stock options and warrants 107 175 31 200 Proceeds from preferred stock issuance - - - (107) Proceeds from initial public offering, net of issuance costs - (47) - - Effects of exchange rate changes on cash and cash equivalents - (4) - - Net cash provided by financing activities 107 2,887 1,693 18,035 Net increase (decrease) in cash and cash equivalents 6,430 (14,926) 5,138 (3,430) Cash and cash equivalents, beginning of period 113,824 128,750 7,611 11,041 Cash and cash equivalents, end of period $120,254 $113,824 $12,749 $7,611 Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use Non-GAAP net income and EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure of operating performance. We consider Non-GAAP net income to be an important indicator of overall business performance because it allows us to illustrate the impact of the effects of share-based compensation, litigation expenses and provision for litigation. We define EBITDA as GAAP net income before interest income, interest expense, other income and expense, provision for income taxes, depreciation and amortization. We define EBITDA adjusted for share-based compensation and litigation and damage costs as EBITDA plus expenses that we do not consider reflective of our ongoing operations. We use EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure to review and assess operating performance. We also believe use of EBITDA adjusted for share-based compensation and litigation and damage costs facilitates investors' use of operating performance comparisons from period to period.

The terms Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs are not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Our Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs should not be considered in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:

-- EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; -- they do not reflect changes in, or cash requirements for, our working capital needs; -- they do not reflect the cash requirements necessary for litigation costs and damages accruals; -- they do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt; -- they do not reflect income taxes or the cash requirements for any tax payments; -- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will be replaced sometime in the future, and EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs do not reflect any cash requirements for such replacements; -- while share-based compensation is a component of operating expense, the impact on our financial statements compared to other companies can vary significantly due to such factors as the assumed life of the options and the assumed volatility of our common stock; and -- other companies may calculate EBITDA and EBITDA adjusted for share- based compensation and litigation and damage costs differently than we do, limiting their usefulness as comparative measures.

We compensate for these limitations by relying primarily on our GAAP results and using Non-GAAP Net Income and EBITDA adjusted for share-based compensation and litigation and damage costs only as supplemental support for management's analysis of business performance . Non-GAAP Net Income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs are calculated as follows for the periods presented in thousands:

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, the company is presenting the most directly comparable GAAP financial measures and reconciling the non-GAAP financial metrics to the comparable GAAP measures.

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) (In thousands) (Unaudited) Three Months Ended March 31, December 31, March 31, December 31, 2008 2007 2007 2006 GAAP net loss $(18,442) $(55,345) $(3,905) $(4,979) Provision for litigation 7,134 48,130 - - Share-based compensation 3,960 3,625 5,071 5,855 Litigation defense expenses 5,366 2,772 885 2,296 Deferred CDN Services not yet delivered - 729 - - Deferred cost of traffic and services - 21 - - Non-GAAP net (loss) income $(1,982) $(68) $2,051 $3,172 Reconciliation of GAAP Net Income (Loss) to EBITDA to EBITDA Adjusted for Share-Based Compensation and Litigation and Damage Costs (In thousands) (Unaudited) Three Months Ended March 31, December 31, March 31, December 31, 2008 2007 2007 2006 GAAP net loss $(18,442) $(55,345) $(3,905) $(4,979) Add: depreciation and amortization 6,260 5,707 4,825 3,999 Add: interest expense 21 6 573 431 Less: interest and other income (2,062) (1,858) (89) (234) Plus income tax expense (benefit) (183) 1,799 200 (51) EBITDA $(14,406) $(49,691) $1,604 $(834) Add: provision for litigation 7,134 48,130 - - Add: share-based compensation 3,960 3,625 5,071 5,855 Add: litigation defense expenses 5,366 2,772 885 2,296 EBITDA adjusted for share-based compensation, litigation and damage costs $2,054 $4,836 $7,560 $7,317 Safe-Harbor Statement

This press release contains forward-looking statements concerning, among other things, the outlook for the Company's revenues, net loss and stock-based compensation expense for the second quarter of 2008, customer growth, market growth, pricing pressures, expansion into additional market segments, product and services improvements and litigation and related expenses. Forward-looking statements are not guarantees and are subject to a number of risks and uncertainties that could cause actual results to differ materially including, but not limited to, risks and uncertainties discussed in the Company's Annual Report on Form 10K and other filings with the Securities and Exchange Commission and the final review of the results and amendments and preparation of quarterly financial statements, including consultation with our outside auditors. Accordingly, readers are cautioned not to place undue reliance on any forward-looking statements. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason.

About Limelight Networks, Inc.

Limelight Networks, Inc. is a content delivery partner enabling the next wave of Internet business and entertainment. More than 1300 Internet, entertainment, software, and technology brands trust our robust, scalable platform to monetize their digital assets by delivering a brilliant online experience to their global audience. Our architecture bypasses the busy public Internet using a dedicated optical network that interconnects thousands of servers and delivers massive files at the speed of light - directly to the access networks that consumers use every day. Our proven network and passion for service provides our customers confidence that every object in their library will be delivered to every user, every time. For more information, visit http://www.limelightnetworks.com/ .

Limelight Networks, Inc.

CONTACT: Paul Alfieri, +1-917-297-4241, palfieri@llnw.com, or Matt Hale,
+1-602-850-5045, mhale@llnw.com, both of Limelight Networks, Inc.

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

SoftBrands Announces Second Quarter Fiscal 2008 Results

MINNEAPOLIS, May 8 /PRNewswire-FirstCall/ -- SoftBrands, Inc. , a global supplier of enterprise application software, today announced its financial results for the second quarter of fiscal 2008, ended March 31, 2008.

Revenues for second quarter fiscal 2008 increased 10.4 percent to $23.7 million, compared with $21.4 million in the prior year quarter. License revenue was 17.0% of total revenues in the current quarter, compared with 13.4% in second quarter fiscal 2007. Maintenance revenue was 57.1% of total revenues in the current quarter, compared with 62.9% of revenues in second quarter fiscal 2007.

SoftBrands reported an operating loss of $0.8 million in the second quarter of fiscal 2008, compared with an operating loss of $1.8 million in the fiscal 2007 quarter. The company reported a net loss available to common shareholders of $0.4 million, or a loss of $(0.01) per diluted share, compared with a net loss available to common shareholders of $3.3 million, or $(0.08) per diluted share, for second quarter fiscal 2007.

"We are pleased with our sales performance in the second quarter. We signed several large transactions in our hospitality business, including contracts with what will be the largest customer in our company's history, Red Roof Inns," said Randy Tofteland, SoftBrands' president and chief executive officer. "While our manufacturing business was slightly below its revenue plan for the quarter, we made progress with our SAP large enterprise strategy and we expect improved performance in manufacturing in the second half of the year based on the transactions we have closed since the end of the second quarter and the current pipeline of opportunities."

SoftBrands today updated its prior guidance for fiscal 2008 of GAAP revenue in the range of $100 million to $105 million; operating income of 4% to 7% of revenues; net income to common shareholders of (1)% to 2% of revenues; and diluted earnings per share of $(0.02) to $0.04.

Highlights of the second quarter and other recent developments include:

-- SoftBrands announced it has entered into a multi-phase project with Red Roof Inns, Inc. to supply a full suite of hospitality technology products and services to the U.S.-based hotel brand. Red Roof Inns, headquartered in Columbus Ohio, has nearly 350 properties and is known for value, consistency and excellent service.

-- SoftBrands and SAP have extended their partnership to include a common strategy for small sites of large enterprises, pursuing the sale of SAP-centric solutions at the plant level for large enterprises that run SAP solutions. SoftBrands is one of the first partners to work with SAP on a joint market approach and strategy for this market segment.

-- SoftBrands signed an agreement with De Vere Venues in the United Kingdom to provide its Epitome and Core solutions. The contract represents the first significant group business in the U.K. for the Epitome and Core products. The contract is expected to generate approximately $2 million in license and service revenues over the next year.

In the company's manufacturing business, second quarter fiscal 2008 revenues were $11.9 million, compared with $12.1 million in second quarter fiscal 2007. Second quarter fiscal 2008 operating income in manufacturing was $1.7 million, compared with $0.8 million in the prior year's quarter.

"We are confident about our SAP strategy and its potential to deliver significant license revenue. The outlook for this business is strong given a new partnership we have with SAP that includes shared performance goals and commitments by both parties," said Tofteland.

In the company's hospitality business, second quarter fiscal 2008 revenues were $11.7 million, compared with $9.3 million in the prior year's quarter. In second quarter fiscal 2008 SoftBrands' hospitality business posted an operating loss of $2.5 million, compared with an operating loss of $2.6 million in the prior year's quarter.

"In our hospitality business we are increasing spending on research and development above our original plan to improve the scalability and stability of our products for larger, more complex customers. This investment affected our profitability in the current quarter, and will also have an affect in the last two quarters of fiscal 2008, but will help our future growth in the hotel group segment," said Tofteland.

From a geographic perspective, 62% of revenues were generated in the Americas in the quarter; 24% in the EMEA region; and 14% in the Asia Pacific region. This compares to a respective mix of 60%, 26% and 14% in the prior year's quarter.

Six Month Results

SoftBrands revenues for the first half of fiscal 2008 were $45.9 million, compared with $46.4 million in the fiscal 2007 period. SoftBrands reported an operating loss of $2.0 million for the first six months of fiscal 2008, compared with an operating loss of $0.4 million for the first half of fiscal 2007. The company reported a net loss available to common shareholders in the fiscal 2008 period of $1.3 million, or a loss of $0.03 per diluted share, compared with a loss of $3.3 million, or a loss of $0.08 per diluted share in the fiscal 2007 period.

Cash and Liquidity

As of March 31, 2008, SoftBrands had $9.4 million in cash and cash equivalents, a decrease from $9.9 million at the end of the previous quarter. SoftBrands' total current assets, which includes accounts receivable, increased to $39.0 million from $31.9 million at the end of the previous quarter. Deferred revenue was $29.9 million at the end of the second quarter, an increase from $21.4 million at Dec. 31, 2007. SoftBrands said the significant increase in accounts receivable is primarily the result of large transactions near the end of the quarter and slower payment by certain hospitality customers. The increase in deferred revenues was the result of adding large customers at the end of the quarter, which will be accounted for under the contract method of accounting, and also the result of a large portion of maintenance renewals occurring in the first part of the calendar year.

Conference Call

SoftBrands will hold its second quarter earnings conference call at 5:00 pm Eastern Time today, May 8, 2008. Interested parties may listen to the call by dialing 800-573-4754 or international 617-224-4325 (passcode: 18819470). A live webcast will also be available at SoftBrands' website at http://www.softbrands.com/. A replay will be available approximately one hour after the conference call concludes and will remain available through May 15, 2008. The replay number is 888-286-8010 and international 617-801-6888 (passcode: 52855458). The webcast will be archived on SoftBrands' website for approximately one year.

Forward-Looking Statements

All statements other than historical facts included in this release regarding future operations are subject to the risks inherent in predictions and "forward-looking statements." These statements are based on the beliefs and assumptions of management of SoftBrands and on information currently available to us. Nevertheless, these forward-looking statements should not be construed as guarantees of future performance. They involve risks, uncertainties, and assumptions identified in filings by SoftBrands with the SEC, including:

-- Changes in the economy, natural disasters, disease or other events that affect the manufacturing and hospitality segments or the geographies we serve; -- Our increasing dependence upon our relationship with SAP; -- Our ability to continue to satisfy covenants with our lender; -- Our ability to timely complete and introduce, and the market acceptance of our new products; -- Our ability to properly document our sales consistent with the manner in which we recognize revenue; -- Our ability to manage international operations; -- Our ability to maintain and expand our base of clients on software maintenance programs; -- The effects of and our ability to rapidly adapt to changes in standards for operating systems, databases and other technologies; and -- Our ability to successfully upgrade our financial systems About SoftBrands

SoftBrands, Inc. is a leader in providing software solutions for businesses in the manufacturing and hospitality industries worldwide. The company has established a global infrastructure for distribution, development and support of enterprise software, and has approximately 5,000 customers in more than 100 countries actively using its manufacturing and hospitality products. SoftBrands, which has approximately 775 employees, is headquartered in Minneapolis, Minn., with branch offices in Europe, India, Asia, Australia and Africa. Additional information can be found at http://www.softbrands.com/.

SoftBrands, Inc. Consolidated Balance Sheets (In thousands, except share and per March 31, September 30, share data) 2008 2007 (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents $9,400 $8,682 Accounts receivable, net 22,814 15,683 Prepaid expenses and other current assets 6,829 4,474 Total current assets 39,043 28,839 Furniture, fixtures and equipment, net 2,292 2,602 Goodwill 37,211 37,271 Intangible assets, net 5,933 7,433 Other long-term assets 523 439 Total assets $85,002 $76,584 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term obligations $3,463 $3,510 Revolving loan 3,001 1,585 Accounts payable 4,354 4,554 Accrued expenses 8,407 8,329 Accrued restructuring costs 283 423 Deferred revenue 29,850 21,015 Other current liabilities 2,540 2,354 Total current liabilities 51,898 41,770 Long-term obligations 14,369 16,082 Other long-term liabilities 730 832 Total liabilities 66,997 58,684 Commitments and contingencies Stockholders' equity: Series A and undesignated preferred stock, $.01 par value; 10,647,973 shares authorized; no shares issued or outstanding - - Series B convertible preferred stock, $.01 par value; 4,331,540 shares authorized, issued and outstanding; liquidation value of $4,591 5,068 5,068 Series C-1 convertible preferred stock, $.01 par value; 18,000 shares authorized, issued and outstanding; liquidation value of $18,000 plus unpaid dividends of $364 and $368, respectively 18,000 18,000 Series D convertible preferred stock, $.01 par value; 6,673 shares authorized, 6,000 shares issued and outstanding; liquidation value of $6,000 plus unpaid dividends of $121 and $123, respectively 5,051 5,051 Common stock, $.01 par value; 110,000,000 shares authorized; 41,875,478 and 41,391,043 shares issued and outstanding, respectively 419 414 Additional paid-in capital 174,414 174,009 Accumulated other comprehensive loss (828) (811) Accumulated deficit (184,119) (183,831) Total stockholders' equity 18,005 17,900 Total liabilities and stockholders' equity $85,002 $76,584 SoftBrands, Inc. Consolidated Statements of Operations Three Months Ended Six Months Ended March 31, March 31, (In thousands, except per 2008 2007 2008 2007 share data) (Unaudited)(Unaudited)(Unaudited)(Unaudited) Revenues: Software licenses $4,012 $2,871 $7,009 $8,333 Maintenance and support 13,513 13,481 27,077 27,239 Professional services 4,691 4,407 9,617 9,345 Third-party software and hardware 1,439 666 2,201 1,503 Total revenues 23,655 21,425 45,904 46,420 Cost of revenues: Software licenses 590 222 1,178 1,229 Maintenance and support 4,151 4,193 8,156 8,099 Professional services 3,902 4,294 8,015 8,633 Third-party software and hardware 1,185 563 1,917 1,141 Total cost of revenues 9,828 9,272 19,266 19,102 Gross profit 13,827 12,153 26,638 27,318 Operating expenses: Selling and marketing 4,968 4,763 9,920 9,975 Research and product development 4,086 3,853 7,845 7,175 General and administrative 5,571 5,330 10,881 10,519 Restructuring related charges - - 25 - Total operating expenses 14,625 13,946 28,671 27,669 Operating loss (798) (1,793) (2,033) (351) Interest expense (496) (472) (988) (944) Other income, net 153 (89) 510 (40) Loss before provision for (benefit from) income taxes (1,141) (2,354) (2,511) (1,335) Provision for (benefit from) income taxes (1,186) 457 (2,223) 973 Net income (loss) 45 (2,811) (288) (2,308) Preferred stock dividends (485) (491) (976) (982) Net loss available to common shareholders $(440) $(3,302) $(1,264) $(3,290) Basic and diluted loss per common share $(0.01) $(0.08) $(0.03) $(0.08) Weighted-average common shares outstanding: Basic and diluted 41,827 41,192 41,623 41,121 SoftBrands, Inc. Supplemental Financial Information (Unaudited, in thousands) Revenues and Operating Income (Loss) Three Months Ended March 31, 2008 2007 % Change Operating Operating Operating Income Income Income Revenues (Loss) Revenues (Loss) Revenues (Loss) Manufacturing $11,916 $1,699 $12,119 $770 -1.7% 120.6% Hospitality 11,739 (2,497) 9,306 (2,563) 26.1% -2.6% Total $23,655 $(798) $21,425 $(1,793) 10.4% -55.5% Six Months Ended March 31, 2008 2007 % Change Operating Operating Operating Income Income Income Revenues (Loss) Revenues (Loss) Revenues (Loss) Manufacturing $24,476 $3,998 $24,840 $1,991 -1.5% 100.8% Hospitality 21,428 (6,031) 21,580 (2,342) -0.7% 157.5% Total $45,904 $(2,033) $46,420 $(351) -1.1% 479.2% Revenues by Segment and Type Three Months Ended March 31, 2008 2007 Manufacturing Hospitality Total Manufacturing Hospitality Total Software licenses $1,204 $2,808 $4,012 $1,233 $1,638 $2,871 Maintenance and support 7,817 5,696 13,513 7,884 5,597 13,481 Professional services 2,751 1,940 4,691 2,815 1,592 4,407 Third-party software and hardware 144 1,295 1,439 187 479 666 Total $11,916 $11,739 $23,655 $12,119 $9,306 $21,425 Six Months Ended March 31, 2008 2007 Manufacturing Hospitality Total Manufacturing Hospitality Total Software licenses $2,731 $4,278 $7,009 $2,682 $5,651 $8,333 Maintenance and support 15,913 11,164 27,077 15,957 11,282 27,239 Professional services 5,573 4,044 9,617 5,806 3,539 9,345 Third-party software and hardware 259 1,942 2,201 395 1,108 1,503 Total $24,476 $21,428 $45,904 $24,840 $21,580 $46,420 SoftBrands, Inc. Supplemental Financial Information (Unaudited, in thousands) Revenues by Segment and Geography Three Months Ended March 31, 2008 2007 Manufacturing Hospitality Total Manufacturing Hospitality Total Americas $7,077 $7,458 $14,535 $7,200 $5,685 $12,885 Europe, Middle East and Africa 3,312 2,390 5,702 3,421 2,219 5,640 Asia Pacific 1,527 1,891 3,418 1,498 1,402 2,900 Total $11,916 $11,739 $23,655 $12,119 $9,306 $21,425 Six Months Ended March 31, 2008 2007 Manufacturing Hospitality Total Manufacturing Hospitality Total Americas $14,671 $13,236 $27,907 $14,392 $13,995 $28,387 Europe, Middle East and Africa 6,661 4,334 10,995 7,115 4,610 11,725 Asia Pacific 3,144 3,858 7,002 3,333 2,975 6,308 Total $24,476 $21,428 $45,904 $24,840 $21,580 $46,420 Contact: Gregg Waldon Chief Financial Officer gregg.waldon@softbrands.com 612-851-1805 Susan Eich Vice President, Corporate Communications susan.eich@softbrands.com 612-851-6205

SoftBrands, Inc.

CONTACT: Gregg Waldon, Chief Financial Officer, +1-612-851-1805,
gregg.waldon@softbrands.com, or Susan Eich, Vice President, Corporate
Communications, +1-612-851-6205, susan.eich@softbrands.com, both of
SoftBrands, Inc.

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

RealNetworks Announces First Quarter 2008 ResultsAnnounces Intention to Spin off Games BusinessBoard Authorizes Share Repurchase Program

SEATTLE, May 8 /PRNewswire-FirstCall/ -- Digital entertainment services company RealNetworks(R), Inc. today announced results for the first quarter ended March 31, 2008.

Quarterly Highlights: -- Revenue of $147.6 million -- Net income of $2.4 million or $0.02 per diluted share -- Adjusted EBITDA of $19.9 million

"With solid first quarter performance, 2008 is off to a great start," said Rob Glaser, CEO of RealNetworks. "Our results exceeded our expectations across every major business."

In a separate release today, RealNetworks announced that it intends to spin off its games business and distribute shares in the newly created games company to its shareholders. Information on that announcement can be found at http://investor.realnetworks.com/games.

For the first quarter of 2008, revenue grew 14% to $147.6 million compared with $129.5 million for the first quarter of 2007. Revenue growth in the first quarter of 2008 compared with the first quarter of 2007 was due to: a 33% increase in Games revenue to $31.8 million; a 12% increase in Music revenue to $38.1 million; a 15% increase in Technology Products and Solutions revenue to $51.3 million, due in part to the acquisition of SonyNetServices and Exomi in 2007; and a 2% decline in Media Software and Services revenue to $26.4 million. Foreign currency exchange rate fluctuations positively affected 2008 first quarter revenue by approximately $2.0 million compared with the first quarter of 2007.

Net income for the first quarter of 2008 was $2.4 million or $0.02 per diluted share, compared with $40.0 million or $0.22 per diluted share in the first quarter of 2007. Results for the first quarter of 2007 included the final payment of $61 million related to Real's antitrust settlement and commercial agreements with Microsoft. Further information regarding these payments can be found in Real's SEC filings.

Adjusted EBITDA for the first quarter of 2008 was $19.9 million compared with $11.9 million in the first quarter of 2007. A reconciliation of GAAP net income to adjusted EBITDA is provided in the financial tables that accompany this release.

Gross margin was 62% in the first quarter of 2008 compared with 65% in the first quarter of 2007. Operating expenses for the first quarter of 2008 were $103.7 million, compared with $29.8 million in the first quarter of 2007. Operating expenses in the year-ago quarter were reduced by the $61 million payment related to the Microsoft settlement. Operating expenses in the first quarter of 2008 included $7.3 million of related party advertising in Rhapsody America.

As of March 31, 2008, Real had approximately $539.6 million in unrestricted cash, cash equivalents and short-term investments and $100 million of convertible debt.

Acquisition of Trymedia

In April 2008, Real acquired substantially all of the assets of Trymedia, a pioneer in casual games syndication from Macrovision for a total upfront cash payment of approximately $4 million. The acquisition is part of Real's strategy to build reach through syndicated distribution partnerships. With more than 250 partners including AOL, Yahoo!, Telstra and T-Online, Trymedia provides innovative syndication and commerce solutions that enable portals, online retailers and game developers to securely distribute PC games through physical and digital channels and maximize revenue throughout a game's lifetime.

Additional $50 million Stock Repurchase Program Authorized

In addition, the RealNetworks Board of Directors approved a share repurchase program of up to $50 million. Under the program, Real is authorized to repurchase up to $50 million of outstanding shares of common stock from time to time, depending on market conditions, share price and other factors. Repurchases may be made in the open market or through private transactions, in accordance with SEC requirements. Real may enter into a Rule 10(b)5-1 plan designed to facilitate the repurchase of all or a portion of the repurchase amount. Further, the repurchase program does not require Real to acquire a specific number of shares and may be terminated under certain conditions.

Real completed a previous $100 million stock repurchase program in the fourth quarter of 2007, repurchasing a total of approximately 13.9 million shares. Since the beginning of 2005, Real has repurchased approximately 44.2 million shares through its repurchase programs for $331.9 million.

Business Outlook

The following forward-looking statements reflect Real's expectations as of May 8, 2008. It is not Real's general practice to update these forward-looking statements until its next quarterly results announcement. For the full year 2008, Real expects revenue in the range of $628 million to $648 million, which includes approximately $12 million as a result of the acquisition of Trymedia. Real expects 2008 GAAP net income per share of $(0.05) to $0.00, and adjusted EBITDA of $62 million to $74 million, which reflects the higher-than-anticipated results of the first quarter offset by an approximate $5 million dilutive impact from the acquisition of Trymedia. Real's earnings per share guidance for 2008 includes tax expense of between $3 million and $6 million, and pretax income is expected to be between a loss of $(5) million and income of $6 million.

For the second quarter of 2008, Real expects revenue in the range of $151 million to $155 million, which includes approximately $4 million as a result of the acquisition of Trymedia. Real expects second quarter GAAP net income per share of $(0.04) to $0.00, and expects adjusted EBITDA of between $14 million and $17 million, which includes an approximate $2 million dilutive impact from the acquisition of Trymedia. Real's earnings per share guidance for the second quarter of 2008 includes tax expense in the range of $2 million to a benefit of $0.5 million, and pretax income is expected to be between a loss of $(3.5) million and a loss of $(0.5) million. For 2008, Real expects that small changes in its pre-tax earnings will result in large changes to its GAAP tax rate, which could significantly impact Real's quarterly GAAP results.

Webcast and Conference Call Information

The Company will host a webcast and conference call today at 5:00pm (Eastern)/ 2:00pm (Pacific). The live webcast featuring slides and audio, will be available at http://investor.realnetworks.com/. Listeners must use RealPlayer(R) to listen to the conference call, which can be downloaded for free at http://www.real.com/. The on-demand webcast will be available approximately two hours following the conclusion of the live webcast. Participants may access the conference call by dialing 800-857-5305

(773-681-5857 for international callers). The passcode is "First Quarter Earnings," and the leader is Rob Glaser. Telephonic replay will be available until 8:00 p.m. (Eastern), May 22, 2008. Dial In: 866-424-3998 (for domestic callers); and 203-369-0851 (for international callers).

RNWK-F For More Information Contact Press: Bill Hankes, (206) 892-6614, bhankes@real.com Financial: Marj Charlier, (206) 892-6718, mcharlier@real.com ABOUT REALNETWORKS

RealNetworks, Inc. delivers digital entertainment services to consumers via PC, portable music player, home entertainment system and mobile phone. Real created the streaming media category in 1995 and has continued to lead the market with pioneering products and services, including: RealPlayer(R), the first mainstream media player to enable one-click downloading and recording of Internet video; the award-winning Rhapsody(R) digital music service, which delivers more than 1 billion songs per year; RealArcade(R), one of the largest casual games destinations on the Web; and a variety of mobile entertainment services, such as ringback tones, offered to consumers through leading wireless carriers around the world. RealNetworks' corporate information is located at http://www.realnetworks.com/company.

About Non-GAAP Financial Measures

To supplement RealNetworks' condensed consolidated financial statements presented in accordance with GAAP, we present investors with certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA by reporting segment, adjusted cost of revenue and adjusted operating expenses.

-- Adjusted EBITDA and adjusted EBITDA by reporting segment consist of net income excluding the impact of the following: interest income, net; income taxes; depreciation; amortization (net of minority interest effect); stock-based compensation; expenses for employee stock options that were converted to cash rights; equity investment gains and losses from sales or impairments; income and expenses including charitable contributions related to the Microsoft agreements; and gain on initial formation of Rhapsody America. -- Adjusted cost of revenue consists of GAAP cost of revenue excluding stock-based compensation expenses, and acquisition costs including amortization of intangible assets (net of minority interest effect) and expenses for employee stock options that were converted to cash rights. -- Adjusted operating expenses consist of GAAP operating expenses excluding stock-based compensation expenses, antitrust litigation expenses (benefits) and acquisition costs including amortization of intangible assets (net of minority interest effect) and expenses for employee stock options that were converted to cash rights.

RealNetworks believes that the presentation of adjusted EBITDA, adjusted EBITDA by reporting segment, adjusted cost of revenue and adjusted operating expenses provides important supplemental information to management and investors regarding financial and business trends relating to the company's financial condition and results of operations. Management believes that the use of these non-GAAP financial measures provides consistency and comparability with our past financial reports, and also facilitates comparisons with other companies in our industry, many of which use similar non-GAAP financial measures to supplement their GAAP results. Management has historically used these non-GAAP measures when evaluating operating performance because the inclusion or exclusion of the items described above provides additional useful measures of our operating results and facilitates comparisons of our core operating performance against prior periods and our business model objectives. We have chosen to provide this information to investors in order to enable them to perform additional analyses of past, present and future operating performance, to enable them to compare us to other companies, and as a supplemental means to evaluate our ongoing operations. Externally, we believe that adjusted EBITDA continues to be useful to investors in their assessment of our operating performance and the valuation of our company.

Internally, adjusted EBITDA, adjusted EBITDA by reporting segment, adjusted cost of revenue, and adjusted operating expenses are significant measures used by management for purposes of:

-- supplementing the financial results and forecasts reported to our board of directors; -- evaluating the operating performance of our company which includes direct and incrementally controllable revenue and costs of operations, but excludes items considered by management to be either non-cash or non-operating such as interest income and expense, stock-based compensation, tax expense, deferred tax valuation allowance changes, depreciation and amortization; -- managing and comparing performance internally across our businesses and externally against our peers; -- establishing internal operating budgets; and -- evaluating and valuing potential acquisition candidates.

Adjusted EBITDA, adjusted EBITDA by reporting segment, adjusted cost of revenue, and adjusted operating expenses are not calculated in accordance with GAAP, and should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of our business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of RealNetworks' results as reported under GAAP. We expect to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. Some of the limitations in relying on our non-GAAP financial measures are:

-- Adjusted EBITDA and adjusted EBITDA by reporting segment are measures which we have defined for internal and investor purposes and are not in accordance with GAAP. A further limitation associated with these measures is that they do not include all costs and income that impact our net income and net income per share. We compensate for these limitations by prominently disclosing GAAP net income, which we believe is the most directly comparable GAAP measure, and providing investors with reconciliations from GAAP net income to adjusted EBITDA and adjusted EBITDA by reporting segment. -- Adjusted cost of revenue is limited in that it does not include stock-based compensation expenses, and certain costs associated with our acquisitions. Adjusted operating expenses are limited in that they do not include stock-based compensation expenses, antitrust litigation expenses (benefit) and certain costs associated with our acquisitions. We compensate for these limitations by prominently disclosing the reported GAAP results and providing investors with a reconciliation from GAAP to the adjusted amount.

In the financial tables of our earnings press release, RealNetworks has included reconciliations of GAAP net income to adjusted EBITDA, income before income taxes to adjusted EBITDA by reporting segment, GAAP cost of revenue to adjusted cost of revenue and GAAP operating expenses to adjusted operating expenses for the relevant periods.

Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to Real's announced intention to spin off its games business and distribute

shares in the games business to Real's shareholders and statements relating to Real's future revenue, GAAP net income (loss) per share, adjusted EBITDA, pre-tax income, income tax expense, interest income, depreciation and amortization and stock-based compensation expense. Actual results may differ materially from the results predicted. Factors that could cause actual results to differ from the results predicted include: risks associated with the ability to complete the proposed spin off transactions and their impact on the games business and Real's remaining businesses; potentially large changes in Real's GAAP tax rate that could result from even small changes in Real's pretax earnings; development and consumer acceptance of legal online music distribution services generally and RealNetworks' content services in particular because these are relatively new and unproven business models and markets; risks associated with the creation and operation of Rhapsody America; risks associated with acquisitions generally, and the acquisitions of WiderThan, Sony NetServices, GameTrust, Trymedia and Exomi in particular, including the risks of integration, unknown liabilities and operations in new markets and geographies; the potential that we will be unable to continue to enter into commercially attractive agreements with third parties for the provision of compelling content for our subscription service offerings; the emergence of new entrants and competition in the market for digital media subscription offerings and online music sales; the impact on our gross margins of content costs and from the mix of subscribers to subscription offerings with higher content costs than others; competitive risks, including competing technologies, products and services, and the competitive activities of our larger competitors, some of which have strong ties to streaming media users through other products; risks associated with the introduction of new products and services; risks inherent in strategic relationships, especially with competitors, and technology and service integration efforts; and risks relating to the ability of Real's strategic partners to generate subscribers for Real's digital content services. More information about potential risk factors that could affect RealNetworks' business and financial results is included in RealNetworks' annual report on Form 10-K for the most recent year ended December 31, and its quarterly reports on Form 10-Q and from time to time in other reports filed by RealNetworks with the Securities and Exchange Commission. More information about risks relating to the potential spin off of the games business is listed in the safe harbor for forward looking statements contained in the press release announcing the proposed spin off transaction as well as in our Form 10-Q to be filed for the quarter ended March 31, 2008. The preparation of our financial statements and forward-looking financial guidance requires us to make estimates and assumptions that affect the reported amount of assets and liabilities and the reported amounts of revenues and expenses during the reported period. Actual results may differ materially from these estimates under different assumptions or conditions. The Company assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates.

RealNetworks, Rhapsody, RealPlayer and RealArcade are trademarks or registered trademarks of RealNetworks, Inc. or its subsidiaries. All other companies or products listed herein are trademarks or registered trademarks of their respective owners.

RealNetworks, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) Quarters Ended March 31, 2008 2007 (in thousands, except per share data) Net revenue $147,563 $129,472 Cost of revenue 55,393 45,943 Gross profit 92,170 83,529 Operating expenses: Research and development 25,006 23,479 Sales and marketing 53,596 49,700 Advertising with related party (A) 7,340 - General and administrative 17,084 17,354 Restructuring charge 686 - Subtotal operating expenses 103,712 90,533 Antitrust litigation benefit, net (B) - (60,747) Total operating expenses 103,712 29,786 Operating (loss) income (11,542) 53,743 Other income (expenses): Interest income, net 4,958 9,102 Equity in net loss of investments (91) (132) Minority interest in Rhapsody America (C) 8,615 - Gain on sale of interest in Rhapsody America (D) 3,726 - Other income 768 467 Other income, net 17,976 9,437 Income before income taxes 6,434 63,180 Income taxes (4,008) (23,219) Net income $2,426 $39,961 Basic net income per share $0.02 $0.25 Diluted net income per share $0.02 $0.22 Shares used to compute basic net income per share 142,491 161,350 Shares used to compute diluted net income per share 154,736 178,053 (A) Consists of advertising purchased by Rhapsody America from MTV Networks (MTVN). MTVN has a 49% ownership interest in Rhapsody America. (B) Consists of amounts received under the Settlement and Commercial agreements with Microsoft, net of certain legal fees, personnel costs, public relations and other professional service fees incurred related to antitrust complaints against Microsoft, including proceedings in the European Union. (C) Minority interest reflects MTVN's 49% ownership share in the losses of Rhapsody America. (D) Consists of gains realized from MTVN's note payments to Rhapsody America. RealNetworks, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) March 31, December 31, 2008 2007 (in thousands) ASSETS Current assets: Cash and cash equivalents $478,737 $476,697 Short-term investments 60,892 79,932 Trade accounts receivable, net 72,718 84,674 Deferred costs, current portion 7,149 6,408 Prepaid expenses and other current assets 29,760 33,845 Total current assets 649,256 681,556 Equipment, software, and leasehold improvements, at cost: Equipment and software 116,899 109,621 Leasehold improvements 30,789 30,632 Total equipment, software, and leasehold improvements 147,688 140,253 Less accumulated depreciation and amortization 89,401 83,756 Net equipment, software, and leasehold improvements 58,287 56,497 Restricted cash equivalents 15,518 15,509 Equity investments 9,125 9,976 Other assets 13,909 10,161 Deferred tax assets, net, non-current portion 41,176 40,913 Other intangible assets, net 97,904 107,677 Goodwill 347,848 353,153 Total assets $1,233,023 $1,275,442 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $46,228 $56,160 Accrued and other liabilities 100,800 114,136 Deferred revenue, current portion 40,308 39,564 Related party payable (A) 8,299 17,241 Convertible debt 100,000 100,000 Accrued loss on excess office facilities, current portion 4,171 3,389 Total current liabilities 299,806 330,490 Deferred revenue, non-current portion 1,874 2,663 Accrued loss on excess office facilities, non-current portion 5,688 7,311 Deferred rent 4,637 4,518 Deferred tax liabilities, net, non-current portion 20,227 22,060 Other long-term liabilities 10,402 13,683 Total liabilities 342,634 380,725 Minority interest (B) 14,678 19,613 Shareholders' equity 875,711 875,104 Total liabilities and shareholders' equity $1,233,023 $1,275,442 (A) Related party payable reflects amounts owed to MTVN. (B) Minority interest reflects MTVN's 49% ownership in the net assets of Rhapsody America. RealNetworks, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Quarters Ended March 31, 2008 2007 (in thousands) Cash flows from operating activities: Net income $2,426 $39,961 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 12,971 9,933 Stock-based compensation 5,489 5,685 Loss on disposal of equipment, software, and leasehold improvements 75 41 Equity in net loss of investments 91 132 Excess tax benefit from stock option exercises (50) (294) Accrued loss on excess office facilities (841) (943) Deferred income taxes (939) (3,944) Minority interest in Rhapsody America (8,615) - Gain on sale of interest in Rhapsody America (3,726) - Other 32 26 Net change in certain assets and liabilities, net of acquisitions (18,202) 11,492 Net cash (used in) provided by operating activities (11,289) 62,089 Cash flows from investing activities: Purchases of equipment, software, and leasehold improvements (7,203) (3,839) Purchases of short-term investments (49,798) (55,432) Proceeds from sales and maturities of short-term investments 68,838 57,124 Purchases of intangible assets - (2,038) Proceeds from the sales of equity investments 350 - Payment of acquisition costs, net of cash acquired (6,011) - Decrease (increase) in restricted cash equivalents (9) 1,800 Net cash provided by (used in) investing activities 6,167 (2,385) Cash flows from financing activities: Net proceeds from sales of common stock under employee stock purchase plan and exercise of stock options 1,072 3,776 Net proceeds from sales of interest in Rhapsody America 7,406 - Excess tax benefit from stock option exercises 50 294 Repurchase of common stock - (78,481) Net cash provided by (used in) financing activities 8,528 (74,411) Effect of exchange rate changes on cash (1,366) 687 Net increase (decrease) in cash and cash equivalents 2,040 (14,020) Cash and cash equivalents, beginning of period 476,697 525,232 Cash and cash equivalents, end of period $478,737 $511,212 RealNetworks, Inc. and Subsidiaries Supplemental Financial Information (Unaudited) 2008 2007 Q1 Q4 Q3 Q2 Q1 (in thousands) Net Revenue by Line of Business: Consumer products and services (A) $96,286 $96,998 $91,824 $87,115 $85,040 Technology products and solutions (B) 51,277 59,884 53,271 49,056 44,432 Total net revenue $147,563 $156,882 $145,095 $136,171 $129,472 Consumer Products and Services: Subscriptions (C) $55,193 $54,784 $55,551 $51,091 $51,490 Media properties (D) 18,702 20,438 16,071 17,748 15,932 E-commerce and other (E) 22,391 21,776 20,202 18,276 17,618 Total consumer products and services revenue $96,286 $96,998 $91,824 $87,115 $85,040 Consumer Products and Services: Music (F) $38,079 $40,540 $37,658 $36,801 $34,127 Media software and services (G) 26,409 25,572 25,346 25,419 27,011 Games (H) 31,798 30,886 28,820 24,895 23,902 Total consumer products and services revenue $96,286 $96,998 $91,824 $87,115 $85,040 Net Revenue by Geography: United States $99,169 $96,806 $91,281 $88,035 $84,554 Rest of world 48,394 60,076 53,814 48,136 44,918 Total net revenue $147,563 $156,882 $145,095 $136,171 $129,472 Subscribers (presented as greater than)*: Total subscribers (I) 32,200 30,200 29,250 26,150 24,550 Technology products and solutions application services subscribers (J) 29,500 27,600 26,600 23,600 21,900 Music subscribers: Consumer music subscribers (K) 1,875 1,900 1,925 1,850 1,875 Technology products and solutions application services music subscribers (L) 800 825 825 825 800 Total Music Subscribers** 2,675 2,725 2,750 2,675 2,675 * Beginning the quarter ended December 31, 2006, total subscribers reflect the inclusion of subscribers related to wireless carrier application subscription services. Total music subscribers includes subscribers from our technology products and solutions application subscription services, such as music-on-demand, as well as our consumer music services, such as Rhapsody and Premium Radio. Although music-on-demand subscribers are included in the technology products and solutions application services subscribers and total music subscribers, these subscribers are only counted once as part of our total subscribers. ** Prior periods have been changed to reflect current period presentation. Totals may not equal due to rounding convention. (A) Revenue is derived from consumer digital media subscription services, RealPlayer Plus and related products, sales and distribution of third party software products, content such as games and music and advertising. (B) Revenue is derived from carrier application services such as ringback tones and music-on-demand, media delivery system software, support and maintenance services, broadcast hosting services and consulting services. (C) Revenue is derived from consumer digital media subscription services including: SuperPass, RadioPass, Rhapsody, GamePass and stand-alone subscriptions. (D) Revenue is derived from advertising and through the distribution of third party products. (E) Revenue is derived from RealPlayer Plus and related products, sales of third party software products, and content such as games and music. (F) Revenue is derived from Rhapsody and RadioPass subscription services and sales of music content, advertising generated from our music and music related websites and the distribution of third party products. (G) Revenue is derived from SuperPass subscriptions, RealPlayer Plus and related products, stand-alone subscription services, sales and distribution of third-party software products and advertising related to our non-game and non-music related web properties. (H) Revenue is derived from GamePass subscription service, sales of games, advertising generated from our games and game-related websites and the distribution of third-party products. (I) Total subscribers include technology products and solutions application services and consumer subscription services including: ringback tones, music-on-demand, video-on-demand, Rhapsody, Rhapsody- to-Go, RadioPass, SuperPass, GamePass, and stand-alone subscriptions. (J) Technology products and solutions application service subscribers include: ringback tones, music-on-demand and video-on-demand. (K) Consumer music subscribers include: Rhapsody, Rhapsody-to-Go, premium radio, and music-on-demand. (L) Technology products and solutions application services music subscribers include subscribers from application services including music-on-demand. RealNetworks, Inc. and Subsidiaries Supplemental Financial Information (Unaudited) Reconciliation of GAAP net income to adjusted EBITDA is as follows: Quarters Ended March 31, Dec. 31, Sept. 30, June 30, March 31, 2008 2007 2007 2007 2007 (in thousands) Net income in accordance with GAAP $2,426 $2,685 $4,342 $1,327 $39,961 Interest income, net (4,958) (6,417) (7,290) (8,065) (9,102) Stock-based compensation 5,489 6,627 5,984 5,622 5,685 Loss (gain) on equity investments - 34 - (132) - Conversion of WiderThan stock options to a cash equivalent 89 190 413 614 845 Depreciation and amortization 6,282 5,703 6,210 5,661 4,621 Acquisitions related intangible asset amortization (net of minority interest effect) 6,315 6,639 5,583 5,311 5,312 Gain on initial formation of Rhapsody America - - (3,866) - - Expenses (benefit) related to antitrust litigation: Income - - - - (61,000) Expenses 202 179 201 202 471 Charitable contributions - - - - 1,921 Income taxes 4,008