Time Warner Telecom Reports Solid First Quarter 2008 Results- Grew quarterly Levered Free Cash Flow by 6 fold year over year -- Grew Modified EBITDA 22% year over year -- Demand from enterprise customers remains strong -

LITTLETON, Colo., May 12 /PRNewswire-FirstCall/ -- Time Warner Telecom Inc. , a leading provider of managed voice and data networking solutions for business customers, today announced its first quarter 2008 financial results, including $282.6 million of revenue, $93.4 million in Modified EBITDA(1) ("M-EBITDA") and a net loss of $.9 million.

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"This quarter was one of solid revenue growth and accelerated levered free cash flow," said Larissa Herda, Time Warner Telecom's Chairman, CEO and President. "The strength of our business is reflected in the fact that we exceeded our sequential trend for first quarter organic revenue growth as compared to the prior two years. Enterprise customers continue to require our network services as they drive to achieve operating efficiencies, maximize their IT budgets, address disaster recovery and business continuity requirements and webify their businesses. We see bandwidth demand continuing to be strong at a time when we are well positioned as a premier fiber based service provider in a shrinking marketplace of competitors with our capabilities, providing us a great opportunity to take market share."

Highlights for the Quarter For the quarter ending March 31, 2008, the Company -- -- Grew total revenue 8% year over year and 1% sequentially -- Grew enterprise revenue 16% year over year and 2% sequentially -- Grew enterprise revenue to 71% of total revenue from 67% in the same period last year -- Grew data and Internet revenue 33% year over year and 6% sequentially -- Grew M-EBITDA 22% year over year -- Achieved a 33.0% M-EBITDA margin, representing a 380 basis point improvement year over year -- Delivered $15.7 million of levered free cash flow(4), or a 6% levered free cash flow margin, which included $2.3 million for integration and branding expenditures. Excluding these items, the Company generated $18.0 million levered free cash flow Year over Year Results - First Quarter 2008 compared to First Quarter 2007 Revenue

Revenue for the quarter was $282.6 million representing a year over year increase of $21.2 million, or 8%. Key changes in revenue included:

-- $27.5 million increase in revenue from enterprise customers -- $4.6 million decrease in revenue from carriers, due to disconnects, including $2.4 million from one wireless customer, and repricing of renewed customer contracts, which outpaced new sales growth -- $1.7 million decrease in intercarrier compensation related to discontinuance of certain non-supported acquired products, as well as regulatory and contractual rate decreases

By product line, the percentage change in revenue year over year was as follows:

-- 33% increase for data and Internet services(5), which included growth due to success with Ethernet and IP-based product sales. Data and Internet services represented 33% of quarterly revenue compared to 27% last year -- 4% increase for voice services(6), which included strong growth due to bundled and other voice product sales. Voice services represented 29% of quarterly revenue compared to 31% last year -- 3% decrease for network services(7), which included disconnects and repricing of renewed customer contracts primarily from carrier customers partially offset by new customer sales. Network services represented 34% of quarterly revenue versus 38% a year ago -- 15% decrease in intercarrier compensation related to rate and product changes. Intercarrier compensation represented 4% of revenue for both the current quarter and the same period last year M-EBITDA and Margins

M-EBITDA grew to $93.4 million from $76.3 million for the quarter, a 22% increase, or $17.1 million over the same period last year. The increase in M-EBITDA primarily reflects solid revenue growth and integration cost synergies. Included in M-EBITDA are integration and branding expenses. Effective in 2008, the Company continues to separately track integration related capital expenditures but no longer is tracking any remaining operating-related integration expenses. Branding expenses totaled $.4 million for the current quarter and integration and branding expenses totaled $2.0 million for the same period last year.

Operating costs increased primarily reflecting higher employee costs, additional costs to launch new product capabilities in 14 acquired markets, and the impact of increased network access costs associated with additional sales, partially offset by integration cost synergies. Operating costs as a percent of revenue declined to 43% for the current period compared to 45% for the same period last year, reflecting synergies and scaling of the business.

Selling, general and administrative costs ("SG&A") increased primarily reflecting increased employee costs, including incentive-based compensation for sales employees due to higher sales, and non cash stock based compensation. Bad debt expense was $.9 million for the current quarter and the same period last year, representing less than 1% of quarterly revenue for both periods. SG&A costs as a percent of revenue declined to 26% for the current period as compared to 28% for the same period last year reflecting synergies and scaling of the business.

Modified gross margin(8) was 57.6% for the current quarter compared to 55.4%, a 220 basis point improvement from the same period last year. M-EBITDA margin for the quarter was 33.0% as compared to 29.2%, a 380 basis point improvement from the same quarter last year. The improvement in margins between periods primarily reflects synergies and scaling of the business.

The Company utilizes a fully burdened modified gross margin, including network costs, and personnel costs for customer care, provisioning, network maintenance, technical field and network operations, excluding non-cash stock-based compensation expense.

Net Loss

The Company's net loss was $.9 million, a loss of $.01 per share for the quarter compared to a net loss of $13.8 million, a loss of $.10 per share for the same period last year. The 93% improvement in the net loss primarily reflected strong M-EBITDA growth, partially offset by an increase in depreciation expense related to new capital assets placed in service, which was net of the impact of assets that became fully depreciated in the current quarter.

Sequential Results - First Quarter 2008 compared to Fourth Quarter 2007 Revenue

Revenue for the quarter was $282.6 million, as compared to $279.5 million for the fourth quarter of 2007, an increase of $3.1 million, or 1%. Key changes in revenue included:

-- $3.6 million increase in revenue from enterprise customers, reflecting strong seasonal growth offset by $1.5 million seasonal decline in usage-based revenue, and $.9 million net decrease in revenue from acquired customers due to discontinued products -- $.3 million decrease in revenue from carrier customers, including $.5 million of disconnects from one wireless customer -- $.2 million decrease in intercarrier compensation related primarily to regulatory rate decreases and a seasonal decline in usage partially offset by fluctuations in disputes

By product line, the percentage change in revenue sequentially was as follows:

-- 6% increase for data and Internet services, due to continued success with Ethernet and IP based product sales -- 2% decrease for voice services, due to a seasonal decline in usage and discontinuation of acquired products, partially offset by bundled and other voice product sales -- 1% decrease in network services primarily due to customer disconnects and repricing of contract renewals primarily for carrier customers, partially offset by ongoing customer sales -- 2% decrease in intercarrier compensation for rate changes and other fluctuations M-EBITDA and Margins

M-EBITDA was $93.4 million for the quarter, as compared to $93.3 million for the prior quarter. The Company's current quarter was impacted by seasonal trends which included a sequential cost increase due to resetting of payroll taxes and merit raises, and lower seasonal revenue growth associated with fewer selling days in the fourth quarter. The sequential impact in the current quarter for payroll taxes and merit raises was $3.4 million. Included in M-EBITDA are integration and branding expenses. Effective in 2008, the Company continues to separately track integration related capital expenditures but no longer is tracking any remaining operating-related integration expenses. Branding expenses totaled $.4 million for the current quarter and integration and branding expenses totaled $1.4 million for the prior quarter.

Operating costs as a percent of revenue were approximately 43% for both quarters. Operating costs increased for the quarter primarily reflecting an increase for payroll taxes and merit raises, partially offset by integration cost synergies. SG&A costs were 26% of revenue for both quarters. SG&A costs increased for the quarter primarily reflecting an increase in payroll taxes and merit raises, partially offset by a decrease in bad debt expense.

Modified gross margin was 57.6% compared to 57.7% for the prior quarter. M-EBITDA margin was 33.0% for the quarter, as compared to 33.4% in the prior quarter. The change in M-EBITDA and margins primarily reflects revenue growth and integration cost synergies offset by the seasonal effect of increased costs for payroll taxes and merit raises.

Net Loss

The Company's net loss was $.9 million, a loss of $.01 per share for the quarter compared to a net loss of $5.3 million, or a loss of $.04 per share for the prior quarter. The 82% improvement in net loss primarily reflected strong M-EBITDA and a decrease in depreciation expense related to assets which became fully depreciated in the current quarter.

M-EBITDA Margin Outlook

"In concert with our long-term perspective, we continue to invest in the business, and drive new sales opportunities, while balancing revenue growth, margins and cash flow," said Mark Peters, Time Warner Telecom's Executive Vice President and Chief Financial Officer. "We will continue to use this balanced approach as we remain focused on achieving mid-30% M-EBITDA margins during the summer of 2008. Our results were strong for the quarter and trends continue to be stable, however, we will continue to monitor our business for any signs of pressure related to the macroeconomic environment."

Monthly revenue churn was 1.1% for the current quarter as compared to 1.2% for the same quarter last year, and 1.0% for the fourth quarter of 2007. The Company continues to expect normal business fluctuations to impact sequential trends in revenue, margins and cash flow. This includes the timing of sales and installations, seasonality, disputes, repricing of contract renewals and ongoing revenue churn, which includes the impact from carrier customers related to their consolidation activities and network grooming.

Customer churn was 1.4% for both the current quarter and the same period last year and was 1.0% for the prior quarter. The Company experienced customer growth offset by churn primarily in the acquired customer base(2), relating to a planned program to migrate small acquired customers to its more advanced product suite. The Company expects ongoing customer churn throughout 2008 from very small, lower margin customers that fall below its service profile.

Time Warner Telecom will rebrand itself as tw telecom on July 1, 2008(9). The Company expects to spend $6 to $7 million in 2008 for branding related costs, which includes up to $2 million in capital expenditures associated with the name change.

Capital Expenditures

Excluding integration investments, capital expenditures were $57.7 million for the current quarter, compared to $49.2 million for the same period last year, and $61.8 million for the prior quarter. The increase in expenditures year over year was 17% reflecting strong customer driven success-based capital investments including expanded network capacity. Integration capital expenditures were $1.9 million for the quarter as compared to $5.9 million for the same period last year, and $4.8 million for the prior quarter.

For 2008, the Company expects total capital expenditures of $250 to $274 million, consisting of $10 to $14 million for integration and branding, and $240 to $260 million for its general operations which will primarily be used to fund growth opportunities.

Summary

"With a large national footprint of metro fiber networks, innovative product capabilities, growing bandwidth demand and a marketplace with fewer competitors with our capabilities than ever before, Time Warner Telecom is a powerful force in serving business customers," said Herda.

Time Warner Telecom Inc. plans to conduct a webcast conference call to discuss its earnings results on May 13 at 9:00 a.m. MDT (11:00 a.m. EDT). To access the webcast and the financial and statistical information to be discussed in the webcast, visit http://www.twtelecom.com/ under "Investor Relations."

(1) The Company uses a modified definition of EBITDA to eliminate certain non-cash and non-operating income or charges to earnings to enhance the comparability of its financial performance from period to period. Modified EBITDA (or "M-EBITDA") is defined as net income or loss before depreciation, amortization, accretion, impairment charges and other gains and losses, interest expense, debt extinguishment costs, interest income, income tax expense or benefit, cumulative effect of change in accounting principle, and non-cash stock-based compensation expense. (2) Acquired operations and acquired customer base reflect the acquisition of Xspedius Communications, LLC on October 31, 2006. (3) The Company defines unlevered free cash flow as Modified EBITDA less capital expenditures. Unlevered free cash flow is reconciled to Net Cash provided by (used in) operating activities in the supplemental information posted on the Company's website. (4) The Company defines levered free cash flow as Modified EBITDA less capital expenditures and net interest expense from operations (but excludes debt extinguishment costs). Levered free cash flow is reconciled to Net Cash provided by (used in) operating activities in the supplemental information posted on the Company's website. See the Supplemental Earnings information at http://www.twtelecom.com/ for more details on Levered Free Cash Flow margin and Levered Free Cash Flow margin excluding integration and branding costs. (5) Data and Internet services include services that enable customers to interconnect their internal computer networks and to access external networks, including Internet at high speeds using Ethernet protocol. Services include metro and wide area Ethernet, virtual private network solutions and Internet access. (6) Voice services contain traditional and next generation voice capabilities, including voice services from stand alone and bundled products, long distance, 800 services, and VoIP. (7) Network services include transmission speeds up to OC 192 to carrier and enterprise customers. These services transmit voice, data, image, as well as enable transmission for storage, using state-of-the-art fiber optics. (8) The Company defines modified gross margin as Total Revenue less operating costs excluding non-cash stock-based compensation expense. Modified gross margin is reconciled to gross margin in the financial tables. (9) The Company changed its corporate name to tw telecom inc. in March 2008, and is presently using its former name, Time Warner Telecom, Inc., as a trade name until July 1, 2008 in concert with its brand launch. Financial Measures

The Company provides financial measures using generally accepted accounting principles ("GAAP") as well as adjustments to GAAP measures to describe its business trends, including Modified EBITDA. Management believes that its definition of Modified EBITDA (see above) is a standard measure of operating performance and liquidity that is commonly reported and widely used by analysts, investors, and other interested parties in the telecommunications industry because it eliminates many differences in financial, capitalization, and tax structures, as well as non-cash and non-operating income or charges to earnings. Modified EBITDA is not intended to replace operating income (loss), net income (loss), cash flow, and other measures of financial performance and liquidity reported in accordance with GAAP. Management uses Modified EBITDA internally to assess on-going operations and it is the basis for various financial covenants contained in the Company's debt agreements. Modified EBITDA is reconciled to Net Loss, the most comparable GAAP measure, within the Consolidated Operations Highlights and in the supplemental information posted on the Company's website.

In addition, management uses unlevered and levered free cash flow, which measure the ability of M-EBITDA to cover capital expenditures. The Company uses these cash flow definitions to eliminate certain non-cash costs. Levered and unlevered free cash flow are reconciled to Net Cash provided by (used in) operating activities in the supplemental information posted on the Company's website. The Company also provides an adjustment to the measure gross margin by eliminating the impact of non-cash stock-based compensation expense related to the adoption of SFAS 123R. Management uses modified gross margin internally to assess on-going operations. Modified gross margin is reconciled to gross margin in the Consolidated Operations Highlights.

Forward Looking Statements

The statements in this press release concerning the outlook for 2008 and beyond, including expansion plans, growth prospects, expected margins, sales activity, timing of sales and installations, seasonality, disputes, repricing of contract renewals and ongoing revenue churn, expected cost synergies, integration and branding costs, integration activities and results and expected capital expenditures are forward-looking statements that reflect management's views with respect to future events and financial performance. These statements are based on management's current expectations and are subject to risks and uncertainties. Important factors that could cause actual results to differ materially from those in the forward looking statements include the risks summarized in the Company's filings with the SEC, especially the section entitled "Risk Factors" in its 2007 Annual Report on Form 10-K. Time Warner Telecom undertakes no obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Time Warner Telecom

Time Warner Telecom Inc., headquartered in Littleton, Colo., provides managed network services, specializing in Ethernet and transport data networking, Internet access, local and long distance voice, VoIP and security, to enterprise organizations and communications services companies throughout the U.S. As a leading provider of integrated and converged network solutions, Time Warner Telecom delivers customers overall economic value, quality service, and improved business productivity. Time Warner Telecom will change its name to tw telecom inc. on July 1, 2008. Please visit http://www.twtelecom.com/ for more information.

Time Warner Telecom Inc. Consolidated Operations Highlights (Dollars in thousands) Unaudited (1) Three Months Ended March 31, 2008 2007 Growth% Revenue Network services $96,806 $99,970 -3% Data and Internet services 92,790 69,881 33% Voice services 83,073 79,930 4% Service Revenue 272,669 249,781 9% Intercarrier compensation 9,915 11,611 -15% Total Revenue $282,584 $261,392 8% Expenses Operating costs 120,821 117,380 3% Gross Margin 161,763 144,012 12% Selling, general and administrative costs 74,480 72,473 3% Depreciation, amortization, and accretion 69,859 66,140 6% Operating Income 17,424 5,399 223% Interest expense (20,679) (23,462) -12% Interest income 2,686 4,539 -41% Loss before income taxes (569) (13,524) -96% Income tax expense 375 285 32% Net Loss ($944) ($13,809) -93% SUPPLEMENTAL INFORMATION TO RECONCILE MODIFIED GROSS MARGIN AND MODIFIED EBITDA Gross Margin $161,763 $144,012 Add back non-cash stock-based compensation expense 925 852 Modified Gross Margin 162,688 144,864 12% Selling, general and administrative costs 74,480 72,473 Add back non-cash stock-based compensation expense 5,160 3,943 Modified EBITDA 93,368 76,334 22% Non-cash stock-based compensation expense 6,085 4,795 Depreciation, amortization, and accretion 69,859 66,140 Net Interest expense 17,993 18,923 Income tax expense 375 285 Net Loss ($944) ($13,809) Modified Gross Margin % 57.6% 55.4% Modified EBITDA Margin % 33.0% 29.2% Free Cash Flow: Modified EBITDA $93,368 $76,334 22% Less: Capital Expenditures 59,637 55,104 8% Unlevered Free Cash Flow 33,731 21,230 59% Less: Net interest expense 17,993 18,923 -5% Levered Free Cash Flow $15,738 $2,307 582% Expenses included in M-EBITDA reported above (2) Integration expenses (3) $0 $1,779 Branding expenses 381 212 Total $381 $1,991 Expenditures included in Capital Expenditures above (2) Integration costs $1,872 $5,866 (1) For complete financials and related footnotes, please refer to the Company's SEC filings. (2) Represents costs to integrate the acquired operations and execute a branding plan. All amounts are included in the reported results above. (3) Effective in 2008 the Company is no longer separately tracking operating-related integration expenses. Time Warner Telecom Inc. Consolidated Operations Highlights (Dollars in thousands) Unaudited (1) Three Months Ended March 31, December 31, 2008 2007 Growth% Revenue Network services $96,806 $97,340 -1% Data and Internet services 92,790 87,489 6% Voice services 83,073 84,546 -2% Service Revenue 272,669 269,375 1% Intercarrier compensation 9,915 10,101 -2% Total Revenue $282,584 $279,476 1% Expenses Operating costs 120,821 119,179 1% Gross Margin 161,763 160,297 1% Selling, general and administrative costs 74,480 72,846 2% Depreciation, amortization, and accretion 69,859 73,129 -4% Operating Income 17,424 14,322 22% Interest expense (20,679) (22,491) -8% Interest income 2,686 3,875 -31% Other income/(loss) - (607) -100% Loss before income taxes (569) (4,901) -88% Income tax expense 375 391 -4% Net Loss ($944) ($5,292) -82% SUPPLEMENTAL INFORMATION TO RECONCILE MODIFIED GROSS MARGIN AND MODIFIED EBITDA Gross Margin $161,763 $160,297 Add back non-cash stock-based compensation expense 925 948 Modified Gross Margin 162,688 161,245 1% Selling, general and administrative costs 74,480 72,846 Add back non-cash stock-based compensation expense 5,160 4,862 Modified EBITDA 93,368 93,261 0% Non-cash stock-based compensation expense 6,085 5,810 Depreciation, amortization, and accretion 69,859 73,129 Net Interest expense 17,993 18,616 Other income/(loss) - (607) Income tax expense 375 391 Net Loss ($944) ($5,292) Modified Gross Margin % 57.6% 57.7% Modified EBITDA Margin % 33.0% 33.4% Free Cash Flow Modified EBITDA $93,368 $93,261 0% Less: Capital Expenditures 59,637 66,587 -10% Unlevered Free Cash Flow 33,731 26,674 26% Less: Net interest expense 17,993 18,616 -3% Levered Free Cash Flow $15,738 $8,058 95% Expenses included in M-EBITDA reported above (2) Integration expenses (3) $0 $1,273 Branding expenses 381 81 Total $381 $1,354 Expenditures included in Capital Expenditures above (2) Integration costs $1,872 $4,783 (1) For complete financials and related footnotes, please refer to the Company's SEC filings. (2) Represents costs to integrate the acquired operations and execute a branding plan. All amounts are included in the reported results above. (3) Effective in 2008 the Company is no longer separately tracking operating-related integration expenses. Time Warner Telecom Inc. Highlights of Results Per Share Unaudited (1) (2) Three Months Ended 3/31/08 12/31/07 3/31/07 Weighted Average Shares Outstanding (thousands) Basic and Diluted 146,810 146,120 143,768 Basic and Diluted Income (Loss) per Common Share ($0.01) ($0.04) ($0.10) As of 3/31/08 12/31/07 3/31/07 Common shares (thousands) Actual Shares Outstanding 146,978 146,542 144,554 Options (thousands) Options Outstanding 12,828 11,508 12,559 Options Exercisable 7,403 7,195 7,642 Options Exercisable and In-the-Money 2,691 3,034 3,262 (1) For complete financials and related footnotes, please refer to the Company's SEC filings. (2) Stock options, restricted stock units and convertible debt subject to conversion were excluded from the computation of weighted average shares outstanding because their inclusion would be anti-dilutive. Time Warner Telecom Inc. Condensed Consolidated Balance Sheet Highlights (Dollars in thousands) Unaudited (1) March 31, December 31, 2008 2007 ASSETS Cash and equivalents $318,218 $321,531 Receivables 87,479 87,994 Less: allowance (11,064) (12,018) Net receivables 76,415 75,976 Other current assets 20,033 22,164 Property, plant and equipment 3,083,907 3,022,752 Less: accumulated depreciation (1,792,026) (1,727,852) Net property, plant and equipment 1,291,881 1,294,900 Other Assets 547,077 550,147 Total $2,253,624 $2,264,718 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $45,448 $46,972 Deferred revenue 27,221 26,015 Accrued taxes, franchise and other fees 69,857 73,130 Accrued interest 9,624 16,707 Accrued payroll and benefits 34,919 36,560 Accrued carrier costs 45,551 50,898 Current portion of debt and lease obligations 7,586 7,337 Other current liabilities 29,912 30,647 Total current liabilities 270,118 288,266 Long-Term Debt and Capital Lease Obligations Floating rate senior secured debt - Term Loan B, due 1/7/2013 592,500 594,000 9 1/4% senior unsecured notes, due 2/15/2014 400,326 400,340 2 3/8% convertible senior debentures, due 4/1/2026 373,750 373,750 Capital lease obligations 9,531 9,565 Less: current portion (7,586) (7,337) Total long-term debt and capital lease obligations 1,368,521 1,370,318 Long-Term Deferred Revenue 19,243 19,672 Other Long-Term Liabilities 22,899 20,237 Stockholders' Equity 572,843 566,225 Total $2,253,624 $2,264,718 (1) For complete financials and related footnotes, please refer to the Company's SEC filings. Time Warner Telecom Inc. Condensed Consolidated Statements of Cash Flows (Dollars in thousands) Unaudited (1) Three Months Ended March 31, December 31, 2008 2007 Cash flows from operating activities: Net Loss ($944) ($5,292) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, amortization, and accretion 69,859 73,129 Stock-based compensation 6,085 5,810 Deferred debt issue, extinguishment costs and other 583 1,191 Changes in operating assets and liabilities: Receivables, prepaid expense and other assets 1,683 8,551 Accounts payable, deferred revenue, and other liabilities (18,392) 12,462 Net cash provided by operating activities 58,874 95,851 Cash flows from investing activities: Capital expenditures (59,637) (66,041) Proceeds from maturities of investments - 50,420 Proceeds from sale of assets and other investing activities (2,387) (1,762) Net cash used in investing activities (62,024) (17,383) Cash flows from financing activities: Net proceeds from issuance of common stock upon exercise of stock options and in connection with the employee stock purchase plan 1,477 7,198 Payment of debt and capital lease obligations (1,640) (1,620) Net cash (used in) provided by financing activities (163) 5,578 Increase (decrease) in cash and cash equivalents (3,313) 84,046 Cash and cash equivalents at the beginning of the period 321,531 237,485 Cash and cash equivalents at the end of the period $318,218 $321,531 Supplemental disclosures of cash flow information: Cash paid for interest $27,546 $15,674 Addition of capital lease obligation - $546 Supplemental information to reconcile capital expenditures: Capital expenditures per cash flow statement $59,637 $66,041 Addition of capital lease obligation - 546 Total capital expenditures $59,637 $66,587 (1) For complete financials and related footnotes, please refer to the Company's SEC filings. Time Warner Telecom Inc. Selected Operating Statistics Unaudited (1) Three Months Ended 2007 2008 Mar. 31 Jun. 30 Sept. 30 Dec. 31 Mar. 31 Operating Metrics: Route Miles Metro 18,092 18,324 18,520 18,832 19,009 Regional 6,884 6,922 6,921 6,921 6,921 Total 24,976 25,246 25,441 25,753 25,930 Buildings (2) Fiber connected buildings, on-net 7,689 7,884 8,109 8,355 8,587 Networks Class 5 Switches 71 71 70 70 70 Soft Switches 35 35 35 36 36 Headcount Total Headcount 2,778 2,817 2,876 2,859 2,883 Sales Associates (3) 490 497 519 508 511 Customers Total Customers (4) 31,431 31,342 31,440 31,638 31,200 (1) For complete financials and related footnotes, please refer to the Company's SEC filings. (2) Fiber connected buildings (e.g. "on-net") represents customer locations to which the Company's fiber network is directly connected. (3) Includes Sales Account Executives and Customer Care Specialists. (4) Consolidated customer counts reflect higher churn for the acquired operations' customer segment as well as conversion of the acquired customer base to a common customer profile in the second quarter of 2007.

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PRN Photo Desk, photodesk@prnewswire.com Time Warner Telecom Inc.

CONTACT: investor relations, Carole Curtin, +1-303-566-1000,
carole.curtin@twtelecom.com, or media relations, Bob Meldrum, +1-303-566-1354,
bob.meldrum@twtelecom.com, both of Time Warner Telecom Inc.

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

Edward C. Grady is Elected to Advanced Energy Board of Directors

FORT COLLINS, Colo., May 12 /PRNewswire-FirstCall/ -- Advanced Energy Industries, Inc. today announced that Edward C. Grady was elected by the stockholders as a new director on May 7, 2008. Mr. Grady currently serves on the Board of Directors of Evergreen Solar, Inc., a developer and manufacturer of solar panels and other solar energy products; Verigy Ltd., a provider of automated test systems for the semiconductor industry; and Electro Scientific Industries, Inc., a supplier of production equipment for micro-engineering applications.

Hans Betz, president and chief executive officer of Advanced Energy, said, "We are pleased to welcome Ed to our Board. His extensive experience in our markets, particularly the solar market, will benefit Advanced Energy as we continue to grow."

Mr. Grady was the president and chief executive officer of Brooks Automation, Inc., a leading worldwide provider of automation solutions to the global semiconductor and related industries, until his retirement October 2007, and continues to serve as a senior executive consultant. Prior to joining Brooks he was a partner at Propel Partners, a venture firm in Palo Alto, California. Prior to this he ran several divisions at KLA-Tencor and helped to grow the business to a level in excess of $1 billion in revenues. Before KLA-Tencor, he served as president and CEO of Hoya Micro Mask for three years. He started his career as an engineer for Monsanto/MEMC, and during his 13 years with the company, rose to the position of vice president of worldwide sales for EPI, the most profitable division in MEMC.

About Advanced Energy

Advanced Energy(R) develops innovative power and control technologies that enable high-growth, plasma thin-film manufacturing processes worldwide, including semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications. Advanced Energy(R) also develops grid connect inverters for the solar energy market.

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PRN Photo Desk, photodesk@prnewswire.com Advanced Energy Industries, Inc.

CONTACT: Lawrence D. Firestone, +1-970-407-6570,
lawrence.firestone@aei.com, or Annie Leschin or Brooke Deterline,
+1-970-407-6555, ir@aei.com, all of Advanced Energy Industries, Inc.

Web site: http://www.advanced-energy.com/

Centillium Communications Announces First Quarter 2008 Financial Results

FREMONT, Calif., May 12 /PRNewswire-FirstCall/ -- Centillium Communications, Inc. , a leading provider of highly innovative communications processing technology, today announced financial results for the first quarter ended March 31, 2008.

Net revenues for the first quarter of 2008 were $6.1 million, compared with $8.6 million during the fourth quarter of 2007 and $10.6 million during the first quarter of 2007.

The GAAP gross margin was 56.7 percent (56.7 percent, non-GAAP) for the first quarter of 2008, compared with 168 percent (64.4 percent, non-GAAP) for the fourth quarter of 2007 and 52.1 percent (52.2 percent, non-GAAP) for the first quarter of 2007. Further information about non-GAAP measures is provided below.

Net income was $0.5 million on a GAAP basis, or $0.01 per share, for the first quarter of 2008, compared with net income of $2.4 million, or $0.06 per share, for the fourth quarter of 2007 and a net loss of $5.9 million, or $0.14 per share, for the first quarter of 2007. The GAAP net income for the first quarter of 2008 included an $8.1 million benefit from the gain on sale of our DSL related assets and restructuring expense of $2.3 million. The GAAP results for all periods include charges for stock-based compensation due to the adoption of SFAS 123R, effective Jan. 1, 2006.

Non-GAAP results were a net loss of $5.0 million, or a net loss of $0.12 per share, for the first quarter of 2008, compared with a net loss of $4.2 million, or a net loss of $0.10 per share, for the fourth quarter of 2007 and a net loss of $5.3 million, or $0.13 per share, for the first quarter of 2007. The non-GAAP results for the first quarter excludes the effect of the $8.1 million gain on sale of our DSL related assets; restructuring expense of $2.3 million; and stock-based compensation of $277,000. The non-GAAP results for the fourth quarter of 2007 exclude the effect of the $8.9 million benefit from the reversal of accrued royalties; restructuring expense related to surplus space of $518,000; stock-based compensation of $336,000; and a $1.4 million impairment of assets charge related to the sale of our DSL related assets. The non-GAAP results for the first quarter of 2007 exclude stock-based compensation of $587,000.

Total cash, short-term investments and restricted cash were $41.7 million at March 31, 2008, compared with $36.8 million at Dec. 31, 2007. The restricted cash included in the $41.7 million was $1.8 million at March 31, 2008.

"During the first quarter, we took significant steps to restructure our business," said Faraj Aalaei, co-founder and CEO. "Our operating expense reduction measures will generate substantial savings beginning in the third quarter of 2008, and we are excited about the expected growth from our two businesses, Voice-over-Internet Protocol (VoIP) and Optical."

Conference Call Information

A conference call to review the first quarter 2008 financial results will follow this press release today at 2:00 p.m. Pacific time/5:00 p.m. Eastern time. To listen to the call, please dial (210) 839-8948, passcode: Centillium. A replay will be made available approximately one hour after the conclusion of the call and will remain available for approximately one week. To access the replay, dial (203) 369-1682. The conference call will also be web cast over the Internet; visit the Investor Relations section of the Centillium Communications website at http://www.centillium.com/ to access the call from the website. This web cast will be recorded and available for replay on the Centillium website from approximately two hours after the conclusion of the conference call until June 30, 2008.

Non-GAAP Financial Measures

In this earnings press release and during the earnings conference call and webcast as described above, Centillium has supplemented and will supplement its reported GAAP financials with non-GAAP measures. Non-GAAP gross margin, operating expenses, net loss and net loss per share, where applicable, exclude the effect of stock-based compensation and, with respect to the three months ended Dec. 31, 2008, restructuring expense and the gain on sale of our DSL related assets; and with respect to the three months ended Dec. 31, 2007, the effect of the reversal of accrued royalties, an impairment of assets charge related to the sale of our DSL related assets and restructuring expense. The company uses the non-GAAP information internally to evaluate its continuing operational performance and its cash requirements and to determine incentive compensation, and believes these non-GAAP measures are useful to investors as they provide additional insight into the underlying operating results and the company's cash requirements and its ongoing performance in the ordinary course of its operations. However, non-GAAP measures are not stated in accordance with, should not be considered in isolation from and are not a substitute for GAAP measures, and our non-GAAP measures may be different from similarly titled non-GAAP measures reported by other companies. A reconciliation of GAAP to non-GAAP results is provided in the table immediately below the GAAP Consolidated Statements of Operations included in this earnings press release.

About Centillium Communications, Inc.

Centillium Communications, Inc. delivers highly innovative communications processing technology for global systems vendors targeting service provider, enterprise and consumer markets. Centillium's high performance Systems-on-Chip (SoC) products power leading edge optical, Voice- over-Internet Protocol (VoIP), security and data systems requiring top quality, highly integrated, very low power processing solutions that help minimize the energy footprint of communications networks. With a long heritage of technology leadership and first-to-market product development, Centillium provides semiconductor solutions that keep customers and end users at the forefront of the communications evolution. Centillium is a global company with headquarters in Fremont, CA. Additional information is available at http://www.centillium.com/.

Safe Harbor Statement under Private Securities Litigation Reform Act of 1995

This press release includes statements that are forward-looking statements within the meaning of U.S. federal securities laws. For example, this press release speaks to Centillium's focus and expected growth in its Optical (FTTP) and VoIP businesses, and potential increases in customer base and market share. Actual results may differ materially from those indicated by such forward-looking statements based on a variety of risks and uncertainties, including without limitation the risk that Centillium's new focus on Optical and VoIP products will not be successful and that its growth expectations for those businesses will not be achieved; the risk that the anticipated expense savings and other anticipated benefits from Centillium's divestiture will be larger than currently anticipated; the possibility of business disruption resulting from the divestiture; as well as risks and uncertainties relating to the rate and breadth of deployment of broadband access in general, especially Optical (FTTP) and VoIP technologies, and Centillium's technology solutions in particular; the successful development and market acceptance of Centillium's new products and technology; Centillium's dependence on a few significant customers for a substantial portion of its revenue; Centillium's ability to continue and expand on its relationships with new customers; the timing, rescheduling or cancellation of significant customer orders and Centillium's ability, as well as the ability of its customers, to manage inventory; Centillium's ability to specify, develop or acquire, complete, introduce, market and transition to volume production new products and technologies in a cost-effective and timely manner; competitive pressures and other factors such as the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of Centillium's products; the timing of customer-industry qualification and certification of Centillium's products and the risks of non-qualification or non-certification; Centillium's ability to timely and accurately predict market requirements and evolving industry standards and to identify opportunities in new markets; changes in Centillium's product or customer mix; the satisfactory completion of the audits of Centillium's financial statements and systems of internal control; intellectual property disputes and customer indemnification claims and other types of litigation risk; the effectiveness of Centillium's expense and product cost control and reduction efforts; and Centillium's ability to attract, retain and motivate qualified personnel, including executive officers and other key management and technical personnel. Centillium undertakes no obligation to update forward-looking statements for any reason. Information about potential factors that could affect Centillium's financial results is included in Centillium's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in other documents on file with the Securities and Exchange Commission.

Centillium Communications and the Centillium Logo are trademarks of Centillium Communications, Inc. in the United States and certain other countries. All rights reserved.

- Summary Financial Data Attached - CENTILLIUM COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, December 31, March 31, 2008 2007 2007 (In thousands, except per share data) Net revenues $6,143 $8,593 $10,552 Cost of revenues (a) 2,662 3,053 5,058 Reversal of accrued royalties - (8,887) - Gross profit 3,481 14,427 5,494 Operating expenses: Research and development (a) 5,172 6,628 6,745 Selling, general and administrative (a) 3,878 3,825 4,991 Gain on sale of DSL related assets (8,106) - - Impairment of assets - 1,413 - Restructuring charges 2,274 518 - Total operating expenses 3,218 12,384 11,736 Operating income (loss) 263 2,043 (6,242) Interest income and other 350 456 677 Interest expense and other 56 6 (11) Income (loss) before provision for income taxes 557 2,493 (5,554) Provision for income taxes 50 97 334 Net income (loss) $507 $2,396 $(5,888) Basic net income (loss) per share $0.01 $0.06 $(0.14) Diluted net income (loss) per share $0.01 $0.06 $(0.14) Shares used to compute basic net income (loss) per share 41,720 41,633 41,149 Shares used to compute diluted net income (loss) per share 41,814 41,779 41,149 (a) Includes stock-based compensation as follows: Cost of revenues $5 $(4) $10 Research and development 110 101 241 Selling, general and administrative 162 239 336 $277 $336 $587 CENTILLIUM COMMUNICATIONS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, December 31, 2008 2007 (In thousands, except share and per share data) ASSETS Current assets: Cash and cash equivalents $25,299 $32,596 Short-term investments 14,571 4,209 Accounts receivable - net of allowance for doubtful accounts of $17 at March 31, 2008 and $22 at December 31, 2007 3,096 3,635 Inventories 1,221 2,802 Prepaid software tools 816 1,430 Other current assets 1,326 1,377 Net assets held for sale - 706 Total current assets 46,329 46,755 Restricted cash 1,800 - Property and equipment, net 1,062 1,193 Other assets 680 678 Total assets $49,871 $48,626 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings $1,300 $1,500 Accounts payable 4,708 4,765 Accrued compensation and related expenses 2,814 3,869 Accrued restructuring, current portion 1,876 475 Accrued liabilities and other 11,882 11,333 Total current liabilities 22,580 21,942 Accrued restructuring, long-term portion 779 891 Other long-term liabilities 810 938 Stockholders' equity: Common stock; $0.001 par value: Authorized shares: 100,000,000; Issued and outstanding shares: 41,706,661 at March 31, 2008, 41,718,601 at December 31, 2007 42 42 Additional paid-in capital 254,820 254,537 Accumulated deficit (229,220) (229,727) Accumulated other comprehensive loss 60 3 Total stockholders' equity 25,702 24,855 Total liabilities and stockholders' equity $49,871 $48,626 CENTILLIUM COMMUNICATIONS, INC. Supplemental Reconciliation of GAAP Results to Non-GAAP (Unaudited) Three Months Ended March 31, December 31, March 31, 2008 2007 2007 (In thousands, except per share data) GAAP gross margin 56.7% 167.9% 52.1% Reversal of accrued royalties - -103.4% - Stock-based compensation - -0.1% 0.1% Non-GAAP gross margin 56.7% 64.4% 52.2% GAAP research and development expenses $5,172 $6,628 $6,745 Stock-based compensation 110 101 241 Non-GAAP research and development expenses $5,062 $6,527 $6,504 GAAP selling, general, and administrative expenses $3,878 $3,825 $4,991 Stock-based compensation 162 239 336 Non-GAAP selling, general, and administrative expenses $3,716 $3,586 $4,655 GAAP operating expenses $3,218 $12,384 $11,736 Stock-based compensation 272 340 577 Gain on sale of DSL related assets (8,106) - - Restructuring charges 2,274 518 - Impairment of assets - 1,413 - Non-GAAP operating expenses $8,778 $10,113 $11,159 GAAP net income (loss) $507 $2,396 $(5,888) Stock-based compensation 277 336 587 Gain on sale of DSL related assets (8,106) Reversal of accrued royalties - (8,887) - Restructuring charges 2,274 518 - Impairment of assets - 1,413 - Non-GAAP net income (loss) $(5,048) $(4,224) $(5,301) GAAP basic and diluted net income (loss) per share $0.01 $0.06 $(0.14) Stock-based compensation 0.01 0.01 0.01 Gain on sale of DSL related assets (0.19) - - Reversal of accrued royalties - (0.21) - Restructuring charges 0.05 0.01 - Impairment of assets - 0.03 - Non-GAAP net income (loss) $(0.12) $(0.10) $(0.13)

Centillium Communications, Inc.

CONTACT: Hassan Parsa, Vice President, Business Development of Centillium
Communications, Inc., +1-510-771-3624, hparsa@centillium.com; or Christina L.
Carrabino, CLC Communications, Inc., +1-415-929-9307,
christina@clccommunication.com

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

Bally Technologies, Inc. Announces Record Earnings for Third Quarter Fiscal 2008 on Record Revenues of $233 Million- REPORTS $0.52 DILUTED EPS VERSUS $0.12 LAST YEAR AND OPERATING MARGIN OF 24 PERCENT VERSUS 10 PERCENT- SYSTEMS REVENUE UP 85 PERCENT TO RECORD $57 MILLION- FISCAL 2008 DILUTED EPS EXPECTED TO BE IN THE RANGE OF $1.78 TO $1.90- INITIATES FISCAL 2009 DILUTED EPS GUIDANCE IN THE RANGE OF $2.10 TO $2.50

LAS VEGAS, May 12 /PRNewswire-FirstCall/ -- Bally Technologies, Inc. , a leader in slots, video machines, casino management systems and networked solutions for the global gaming industry, announced today record diluted earnings per share ("Diluted EPS") for the three and nine months ended March 31, 2008 of $0.52 and $1.31, respectively, and record revenue of $232.6 million and $652.3 million, respectively. Diluted EPS adjusted for share-based compensation ("Adjusted EPS") for the three and nine months ended March 31, 2008 was $0.56 and $1.42, respectively.

"The continued momentum in all of our technology businesses drove record third-quarter earnings," said Richard M. Haddrill, the Company's Chief Executive Officer. "Another strong systems quarter reflects the continued demand for our Networked Floor of the Future technologies and vision highlighted by new customer contracts and demand for our iVIEW(TM) network that delivers interactive player content."

"Our gaming equipment division shipped over 7,300 sale units in the current quarter, which included a significant number of sale units delivered to a major domestic lottery that were not recognized in revenue in the current quarter," said Gavin Isaacs, the Company's Chief Operating Officer. "We are pleased with our steady increase in North America ship share, our ability to leverage our broad product portfolio for Class III, Class II, and central-determination markets, and the growth of international units to 25 percent of our total sale units in the current quarter. We attribute this success to our investments in game content and our recent investments in our international infrastructure."

Third Quarter Fiscal 2008 Highlights Three Months Ended Nine Months Ended March 31, March 31, 2008 2007 2008 2007 (dollars in millions, except per share amounts) Revenues: Bally Gaming and Systems $ 219.6 $ 162.2 $ 616.1 $ 443.9 Casino Operations 13.0 13.0 36.2 36.0 Total revenue $ 232.6 $ 175.2 $ 652.3 $ 479.9 Net income $ 30.2 $ 6.6 $ 75.9 $ 3.8 Adjusted EBITDA $ 74.2 $ 36.4 $ 196.6 $ 86.2 Diluted EPS $ 0.52 $ 0.12 $ 1.31 $ 0.07

Three Months Ended March 31, 2008 Compared with Three Months Ended March 31, 2007

-- Total revenues increased 33 percent to $232.6 million as compared with $175.2 million in the same period last year. -- Operating income increased by $36.5 million to $54.9 million as compared with $18.4 million in the same period last year. -- Operating margin was 24 percent in the three months ended March 31, 2008 as compared with 10 percent in the same period last year. -- Net income increased by $23.6 million to $30.2 million, as compared with $6.6 million in the same period last year. -- Adjusted EBITDA was $74.2 million, a 104-percent increase as compared with the same period last year. -- Selling, general and administrative ("SG&A") expenses declined to 26 percent of total revenue from 29 percent for the same period last year. SG&A expenses in the current quarter and year-to-date period benefited by $2.7 million from the resolution of table-technology disputes.

Nine Months Ended March 31, 2008 Compared with Nine Months Ended March 31, 2007

-- Total revenues increased 36 percent to $652.3 million as compared with $479.9 million in the same period last year. -- Operating income increased by $110.4 million to $142.8 million as compared with $32.4 million in the same period last year. -- Operating margin was 22 percent in the nine months ended March 31, 2008 as compared with 7 percent in the same period last year. -- Net income increased by $72.1 million to $75.9 million, as compared with $3.8 million in the same period last year. -- Adjusted EBITDA was $196.6 million, a 128-percent increase as compared with the same period last year. -- SG&A expenses declined to 27 percent of total revenue from 31 percent for the same period last year.

During the third quarter of fiscal 2008, the Company repurchased 280,000 shares of its common stock, at prices between $33.15 to $41.25, for total consideration of $10.7 million. Year to date, the Company has repurchased 429,253 shares for total consideration of $16.7 million. The Company has $64.3 million remaining available under its existing share repurchase authorization.

"Our third quarter results continue to show the improvements in our operating leverage," said Robert C. Caller, the Company's Chief Financial Officer. "Our operating income increased to 24 percent of revenue from 10 percent in the comparable period last year and from 20 percent in the December 2007 quarter despite the current economic environment and challenging replacement cycle."

Unaudited summary financial information for the Bally Gaming Equipment and Systems segment for the three and nine months ended March 31, 2008 and 2007 is presented below:

Three Months Ended March 31, % % 2008 Rev 2007 Rev Revenues: Gaming Equipment (1) $ 103.7 47 % $ 86.7 53 % Gaming Operations 58.9 27 % 44.7 28 % Systems (1) 57.0 26 % 30.8 19 % Total revenues $ 219.6 100 % $ 162.2 100 % Gross Margin: Gaming Equipment $ 45.5 44 % $ 30.6 35 % Gaming Operations 41.3 70 % 26.1 58 % Systems 40.2 71 % 23.4 76 % Total gross margin $ 127.0 58 % $ 80.1 49 % Selling, general and administrative $ 52.0 24 % $ 41.8 26 % Research and development costs 15.1 7 % 12.5 8 % Depreciation and amortization 3.7 2 % 5.2 3 % Operating income $ 56.2 25 % $ 20.6 13 % Nine Months Ended March 31, % % 2008 Rev 2007 Rev (dollars in millions) Revenues: Gaming Equipment (1) $ 296.4 48 % $ 219.4 50 % Gaming Operations 167.2 27 % 125.8 28 % Systems (1) 152.5 25 % 98.7 22 % Total revenues $ 616.1 100 % $ 443.9 100 % Gross Margin: Gaming Equipment $ 132.1 45 % $ 74.8 34 % Gaming Operations 108.7 65 % 72.5 58 % Systems 111.1 73 % 69.3 70 % Total gross margin $ 351.9 57 % $ 216.6 49 % Selling, general and administrative $ 143.6 23 % $ 124.0 28 % Research and development costs 43.1 7 % 38.4 9 % Depreciation and amortization 11.1 2 % 13.8 3 % Operating income $ 154.1 25 % $ 40.4 9 % (1) Gross Margin from Gaming Equipment and Systems excludes amortization related to certain intangibles, including core technology and license rights, which is included in depreciation and amortization. Three Months Ended Nine Months Ended March 31, March 31, 2008 2007 2008 2007 Operating Statistics: New gaming devices sold 6,742 6,032 19,037 14,131 Original Equipment Manufacturer ("OEM") units sold - - - 1,605 New unit Average Selling Price ("ASP") $13,427 $12,984 $13,281 $12,628 End-of-period installed base: Wide-area and local-area progressive systems 1,259 1,389 Rental and daily-fee games (1) 12,377 5,916 Lottery systems 7,980 7,736 Centrally determined systems (1) (2) 42,924 32,690 (1) Certain devices previously included in centrally determined systems that were converted to standalone devices have been reclassified to rental and daily-fee games. (2) Daily fee revenue from approximately 9,100 units included in centrally determined systems end-of-period installed base total as of March 31, 2008 are currently being deferred until completion of certain contractual commitments. There were no similar deferrals as of March 31, 2007. Highlights of Certain Results for the Three Months Ended March 31, 2008 Gaming Equipment -- Revenues increased 20 percent to approximately $103.7 million as compared with the same period last year. -- New gaming device sales increased 12 percent to 6,742 units as compared with 6,032 units in the same period last year. -- Average selling price ("ASP") of new gaming devices, excluding OEM sales, increased 3 percent as a result of product mix and price increases taking effect in the period. -- Gross margin increased from 35 percent in the same period last year to 44 percent, primarily due to the increase in ASP discussed above and improved purchasing and manufacturing efficiencies due to increased volumes and lower manufacturing costs due to the standardization of game platforms. Margins in the current quarter were negatively impacted by approximately $0.9 million in inventory charges associated with the consolidation of European inventories. Gaming Operations -- Revenues increased 32 percent to approximately $58.9 million as compared with the same period last year. -- Gross margin increased to 70 percent from 58 percent for the same period last year, principally due to increases in participation and rental revenue with a relatively fixed cost of operating expenses and a decrease in funding jackpot liabilities related to our wide- area progressives. -- Revenue and gross margin in fiscal 2007 included daily fees that relate to certain contracts which have been deferred in fiscal 2008 due to new contractual commitments made to the customers. Approximately $3.8 million in daily fees generated during the third quarter of fiscal 2008 were deferred pending delivery of the commitments. Systems -- Revenues increased 85 percent to approximately $57.0 million as compared with the same period last year, primarily as a result of continued acceptance of the Company's products including the Company's iVIEW(TM) player-communication devices and Power Bonusing(TM) software. -- Gross margin declined to 71 percent from 76 percent for the same period last year as a result of product mix. -- Maintenance revenues increased to approximately $10.0 million from approximately $8.5 million in the same period last year. -- As of March 31, 2008, the total number of iVIEW player- communication devices purchased and committed to be purchased was approximately 111,000 units. Highlights of Certain Results for the Nine Months Ended March 31, 2008 Gaming Equipment -- Revenues increased 35 percent to approximately $296.4 million as compared with the same period last year. -- New gaming device sales increased 35 percent to 19,037 units as compared with 14,131 units in the same period last year. -- ASP of new gaming devices, excluding OEM sales, increased 5 percent primarily due to product mix and price increases during the period. -- Gross margin increased to 45 percent from 34 percent in the same period last year, primarily due to the increase in ASP discussed above, the elimination of lower margin OEM sales, and improved purchasing and manufacturing efficiencies due to increased volumes and lower manufacturing costs due to the standardization of game platforms. Gaming Operations -- Revenues increased 33 percent to approximately $167.2 million as compared with the same period last year. -- Gross margin increased to 65 percent from 58 percent for the same period last year principally due to increases in participation and rental revenue with a relatively fixed cost of operating expenses. -- Revenue and gross margin in fiscal 2007 included daily fees that relate to certain contracts which have been deferred in fiscal 2008 due to new contractual commitments made to customers. Approximately $11.4 million in daily fees generated during the nine months ended March 31, 2008 were deferred pending delivery of the commitments. Systems -- Revenues increased 55 percent to approximately $152.5 million as compared with the same period last year primarily as a result of continued acceptance of the Company's products including iVIEW player-communication devices and Power Bonusing software. -- Gross margin increased to 73 percent from 70 percent in the same period last year primarily as a result of product mix. -- Maintenance revenues increased to approximately $28.8 million from approximately $24.0 million in the same period last year. Business Update -- Fiscal 2008 and 2009

The Company also announced it narrowed the range for fiscal 2008 guidance for Diluted EPS to $1.78 to $1.90, from an earlier range of $1.60 to $1.90. Adjusted EPS is now estimated between $1.93 to $2.05, from an earlier range of $1.75 to $2.05. The Company now expects revenue for fiscal 2008 to exceed $885 million, representing a 30-percent increase over fiscal 2007.

The Company initiated fiscal 2009 guidance for Diluted EPS of $2.10 to $2.50 and Adjusted EPS between $2.27 to $2.67.

The Company's fiscal 2009 Diluted EPS and revenue guidance anticipates continued year-over-year growth in each of game sales, gaming operations, and system revenues. The Company forecasts an increase in the placement of premium daily-fee games and rental games, a modest increase in the number of gaming devices sold with continued margin improvements on game sales, and continued growth in its system business. The Company also expects its selling, general and administrative expenses as a percentage of revenue to be lower in fiscal 2009 as compared with fiscal 2008 and expects improved operating margin in fiscal 2009 as compared with fiscal 2008.

The Company has provided this broad range of earnings guidance for fiscal 2009 to give investors general information on the overall direction of its business at this time. The guidance provided is subject to numerous uncertainties, including, among others, overall economic conditions, the market for gaming devices and systems, competitive product introductions, complex revenue recognition rules related to the Company's business, and assumptions about the Company's new product introductions and regulatory approvals. The Company may update this fiscal 2009 guidance from time to time as the year progresses.

Non-GAAP Financial Measures

The following table reconciles the Company's net income, as determined in accordance with generally accepted accounting principles ("GAAP"), to Adjusted EBITDA:

Three Months Ended Nine Months Ended March 31, March 31, 2008 2007 2008 2007 (in 000s) Net income $ 30,249 $ 6,582 $ 75,947 $ 3,838 Interest expense, net 5,494 6,976 17,997 23,773 Income tax expense 18,939 4,493 47,283 2,806 Depreciation and amortization 16,085 15,342 45,339 44,672 Share-based compensation 3,435 2,978 10,020 11,090 Adjusted EBITDA $ 74,202 $ 36,371 $ 196,586 $ 86,179

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, including asset charges and share-based compensation) is a supplemental non-GAAP financial measure used by the Company's management and is commonly used by industry analysts to evaluate the Company's financial performance. Adjusted EBITDA provides additional information about the Company's ability to service debt and is frequently used by investors and financial analysts in the gaming industry in measuring and comparing Bally's leverage, liquidity, and operating performance to other gaming companies. Adjusted EBITDA should not be considered an alternative to operating income or net cash from operations as determined in accordance with GAAP. Not all companies calculate Adjusted EBITDA the same way and the Company's presentation may be different from those presented by other companies.

The following table reconciles the Company's Diluted EPS, as determined in accordance with GAAP, to the Adjusted EPS:

Three Nine Months Months Ended Ended March 31, March 31, Fiscal 2008 Range Fiscal 2009 Range 2008 2008 Low High Low High Diluted EPS $ 0.52 $ 1.31 $1.78 $1.90 $ 2.10 $ 2.50 Share-based compensation, net of income tax benefit 0.04 0.11 0.15 0.15 0.17 0.17 Adjusted EPS $ 0.56 $ 1.42 $ 1.93 $ 2.05 $ 2.27 $2.67

The Company provides Adjusted EPS for the three months and nine months ended March 31, 2008 and the estimated range of Adjusted EPS for fiscal 2008 and 2009 in this press release as additional information regarding the Company's operating results for the three months and nine months ended March 31, 2008 and expected operating results for fiscal 2008 and 2009. Adjusted EPS adds back the impact of stock-based compensation, net of tax, to Diluted EPS as determined in accordance with GAAP. The Company believes that this presentation of Adjusted EPS facilitates investors' understanding of Bally's historical operating trends because it provides important supplemental information in evaluating the operating results of the business. Adjusted EPS is not an alternative to Diluted EPS as determined in accordance with GAAP.

Earnings Conference Call and Webcast

As previously announced, the Company is hosting a conference call and webcast at 4:30 p.m. EDT (1:30 p.m. PDT) on Monday, May 12. The conference-call dial-in number is 866-383-7998 or 617-597-5329 (passcode: Bally) and the webcast can be accessed by visiting http://www.ballytech.com/ and selecting "Investor Relations." Interested parties should initiate the call and webcast process at least five minutes prior to the beginning of the presentation. For those who miss this event, an archived version will be available at http://www.ballytech.com/ until June 11, 2008.

About Bally Technologies, Inc.

With a history dating back to 1932, Las Vegas-based Bally Technologies designs, manufactures, operates and distributes advanced gaming devices, systems and technology solutions worldwide. Bally's product line includes reel-spinning slot machines, video slots, wide-area progressives and Class II, lottery and central determination games and platforms. As the world's No. 1 gaming systems company, Bally also offers an array of casino management, slot accounting, bonusing, cashless and table management solutions. The Company also owns and operates the Rainbow Casino in Vicksburg, Miss. Additional Company information, including the Company's investor presentations, can be found at http://www.ballytech.com/.

This news release may contain "forward-looking" statements within the meaning of the Securities Act of 1933, as amended, and is subject to the safe harbor created thereby. Such information involves important risks and uncertainties that could significantly affect the results in the future and, accordingly, such results may differ from those expressed in any forward- looking statements. Future operating results may be adversely affected as a result of a number of risks that are detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update the information in this press release and represents that the information is only valid as of today's date.

Investor Contact: Robert Caller Media Contact: Laura Olson-Reyes (702) 584-7982 (702) 584-7742 rcaller@ballytech.com lolson-reyes@ballytech.com - BALLY TECHNOLOGIES, INC. - BALLY TECHNOLOGIES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Nine Months Ended March 31, March 31, 2008 2007 2008 2007 (in 000s, except per share amounts) Revenues: Gaming equipment and systems $160,627 $117,513 $448,889 $318,108 Gaming operations 58,981 44,731 167,237 125,770 Casino operations 13,001 12,974 36,165 36,051 232,609 175,218 652,291 479,929 Costs and expenses: Cost of gaming equipment and systems (1) 74,918 63,452 205,720 174,001 Cost of gaming operations 17,691 18,645 58,507 53,311 Direct cost of casino operations 4,901 4,681 14,332 13,583 Selling, general and administrative 60,416 51,303 173,679 151,150 Research and development costs 15,103 12,536 43,059 38,399 Depreciation and amortization 4,725 6,236 14,175 17,111 177,754 156,853 509,472 447,555 Operating income 54,855 18,365 142,819 32,374 Other income (expense): Interest income 832 680 2,836 2,004 Interest expense (6,326) (7,656) (20,833) (25,777) Other, net 1,281 (37) 2,274 1,143 Income before income taxes and minority interest 50,642 11,352 127,096 9,744 Income tax expense (18,939) (4,493) (47,283) (2,806) Minority interest (1,454) (277) (3,866) (3,100) Net income $30,249 $6,582 $75,947 $3,838 Basic and diluted earnings per share: Basic earnings per share $0.55 $0.12 $1.40 $0.07 Diluted earnings per share $0.52 $0.12 $1.31 $0.07 Weighted average shares outstanding: Basic 54,576 53,220 54,335 53,062 Diluted 58,396 55,662 58,114 55,249 (1) Cost of gaming equipment and systems excludes amortization related to certain intangibles, including core technology and license rights, which are included in depreciation and amortization. BALLY TECHNOLOGIES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS March 31, June 30, 2008 2007 (in 000s, except share amounts) ASSETS Current assets: Cash and cash equivalents $36,042 $40,842 Restricted cash 13,571 17,201 Accounts and notes receivable, net of allowances for doubtful accounts of $11,553 and $8,481 209,688 172,060 Inventories 91,154 81,151 Deferred tax assets, net 62,896 59,486 Deferred cost of revenue 61,751 36,744 Other current assets 19,415 14,399 Total current assets 494,517 421,883 Long-term investments (restricted) 10,803 10,455 Long-term receivables 7,988 9,840 Property, plant and equipment, net of accumulated depreciation of $57,270 and $46,320 72,494 75,623 Leased gaming equipment, net of accumulated depreciation of $88,553 and $73,396 92,132 67,965 Goodwill 162,728 161,708 Intangible assets, net of accumulated amortization of $29,203 and $24,543 30,503 24,401 Deferred tax assets, net 24,129 18,457 Long-term deferred cost of revenue 35,161 28,376 Other assets, net 5,582 6,187 Total assets $936,037 $824,895 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $40,568 $44,045 Accrued liabilities 52,611 56,427 Customer deposits 23,863 23,489 Jackpot liabilities 13,471 13,414 Deferred revenue 127,459 94,347 Income taxes payable 2,254 12,945 Current maturities of long-term debt and capital leases, including $2,800 and $2,381 owed to related parties 13,535 12,271 Total current liabilities 273,761 256,938 Long-term debt and capital leases, net of current maturities, including $2,800 and $7,600 owed to related parties 294,057 321,583 Long-term deferred revenue 55,629 36,651 Other income tax liability 20,285 - Other liabilities 8,057 9,321 Total liabilities 651,789 624,493 Minority interest 1,689 948 Commitments and contingencies Stockholders' equity: Special stock, 10,000,000 shares authorized: Series E, $100 liquidation value; 115 shares issued and outstanding 12 12 Common stock, $0.10 par value; 100,000,000 shares authorized; 55,686,000 and 54,612,000 shares issued and 54,669,000 and 54,025,000 outstanding 5,555 5,455 Treasury stock at cost, 1,017,000 and 587,000 shares (18,614) (1,894) Additional paid-in capital 285,138 253,809 Accumulated other comprehensive income 2,414 1,119 Retained earnings (accumulated deficit) 8,054 (59,047) Total stockholders' equity 282,559 199,454 Total liabilities and stockholders' equity $936,037 $824,895

Bally Technologies, Inc.

CONTACT: Investors, Robert Caller, +1-702-584-7982,
rcaller@ballytech.com, or Media, Laura Olson-Reyes, +1-702-584-7742,
lolson-reyes@ballytech.com, both of Bally Technologies, Inc.

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

SIRIUS Reports First Quarter 2008 Results* Revenue of $270.4 Million, Up 33% Year Over Year* Total Subscribers of More Than 8.6 Million, Up 31% Year Over Year* Record First Quarter Gross Subscriber Additions - Exceed 1 Million* Adjusted Loss From Operations Improves 55%

NEW YORK, May 12 /PRNewswire-FirstCall/ -- SIRIUS Satellite Radio today announced first quarter 2008 financial results, including a 33% increase in revenue to $270.4 million, total subscribers in excess of 8.6 million and a 55% decrease in the adjusted loss from operations.

(Logo: http://www.newscom.com/cgi-bin/prnh/19991118/NYTH125 )

"SIRIUS continues to demonstrate robust subscriber and revenue growth, along with strong cost discipline and significant improvement in our bottom line," said Mel Karmazin, CEO of SIRIUS. "Compared with a year ago, first quarter 2008 subscribers grew 31%, revenue grew 33%, while cash operating costs only grew 8%, leading to a 55% decline in our adjusted loss from operations."

"We await the FCC decision on our pending merger with XM, and we are eager to deliver the strong benefits of the combined company to our subscribers and stockholders."

SIRIUS ended first quarter 2008 with 8,644,319 subscribers, up 31% from 6,581,045 subscribers at the end of first quarter 2007. Retail subscribers increased 10% in the first quarter 2008 to 4,643,215 from 4,234,804 at the end of first quarter 2007. OEM subscribers increased 72% in the first quarter 2008 to 3,986,818 from 2,323,683 at the end of first quarter 2007. During the first quarter 2008, SIRIUS added 322,534 net subscribers and achieved a 52% share of satellite radio net subscriber additions.

Total revenue for the first quarter 2008 increased to $270.4 million, up 33% from first quarter 2007 total revenue of $204.0 million. Average monthly revenue per subscriber (or "ARPU") was $10.42 in first quarter 2008 as compared with $10.46 for first quarter 2007. First quarter 2008 average all-in customer churn was 2.7%. SAC per gross subscriber addition was $91 in first quarter 2008, an improvement over first quarter 2007's SAC per gross subscriber addition of $101.

SIRIUS reported a first quarter 2008 net loss of ($104.1) million, or ($0.07) per share, an improvement of 28% over first quarter 2007 net loss of ($144.7) million, or ($0.10) per share. The adjusted loss from operations for first quarter 2008 improved 53% to ($39.5) million, as compared to the adjusted loss from operations of ($84.0) million in first quarter 2007.

2008 OUTLOOK

Following approval of the pending merger with XM by the Federal Communications Commission, SIRIUS will provide guidance for 2008.

RESULTS OF OPERATIONS

The discussion of operating expenses below excludes the effects of stock-based compensation. SIRIUS believes this presentation improves the transparency of disclosure and is consistent with the way operating results are evaluated by management.

FIRST QUARTER 2008 VERSUS FIRST QUARTER 2007

For the first quarter of 2008, SIRIUS recognized total revenue of $270.4 million compared to $204.0 million for the first quarter of 2007. This 33%, or $66.4 million, increase in revenue was driven by a $64.8 million increase in subscriber revenue resulting from the net increase in subscribers of 2,063,274 from the first quarter of 2007.

The company's adjusted loss from operations decreased $44.5 million to ($39.5) million for the first quarter of 2008 from ($84.0) million for the first quarter of 2007 (refer to the reconciliation table of net loss to adjusted loss from operations). This decrease was driven by the increase in total revenue of $66.4 million offset by a $21.8 million increase in non-operating expenses.

Satellite and transmission expenses decreased $0.3 million to $7.0 million for the first quarter of 2008 compared to $7.3 million for the first quarter of 2007 as a result of lower maintenance expenses in the first of quarter 2008.

Programming and content expenses increased $1.8 million to $58.9 million for the first quarter of 2008 from $57.1 million for the first quarter of 2007. The increase was primarily attributable to higher compensation-related costs for additions to headcount.

Revenue share and royalties increased $15.2 million to $42.3 million for the first quarter of 2008 from $27.1 million for the first quarter of 2007. This increase was attributable to the determination by the Copyright Royalty Board in January 2008 of the royalty rate under the statutory license covering the performance of sound recordings. The 33% growth in the company's revenues also contributed to the increase in revenue share and royalties.

Customer service and billing expenses increased $4.9 million to $26.6 million for the first quarter of 2008 from $21.7 million for the first quarter of 2007. The increase was primarily attributable to higher call center operating costs necessary to accommodate the increase in the company's subscriber base. Customer service and billing expenses per average subscriber per month declined 9.0% to $1.05 for the first quarter of 2008 from $1.15 for the first quarter of 2007.

Sales and marketing expenses decreased $2.2 million to $33.2 million for the first quarter of 2008 from $35.4 million for the first quarter of 2007. This decrease was primarily attributable to lower advertising and reduced cooperative marketing spend with the company's distributors compared to the year-ago first quarter.

Subscriber acquisition costs (SAC) decreased $8.4 million, or 9%, to $89.8 million for the first quarter of 2008 from $98.2 million for the first quarter of 2007. This decrease was primarily attributable to production efficiencies and a higher average retail selling price, offset by increased OEM unit production.

SAC per gross subscriber addition decreased 10% to $91 for the first quarter of 2008 from $101 for the first quarter of 2007. The decrease was driven by lower per unit subsidies due to production efficiencies and a higher average retail selling price, offset by a higher mix of OEM gross additions.

General and administrative expenses increased $13.4 million to $36.8 million for the first quarter of 2008 from $23.4 million for the first quarter of 2007. The increase was primarily the result of higher litigation related costs and compensation-related costs to support the growth of our business.

Engineering, design and development expenses decreased $3.9 million to $7.5 million for the first quarter of 2008 from $11.4 million for the first quarter of 2007. This decrease was attributable to reduced OEM and product development costs.

SIRIUS reported a net loss of ($104.1) million, or ($0.07) per share, for the first quarter of 2008 compared to a net loss of ($144.7) million, or ($0.10) per share, for the first quarter of 2007.

SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES SUBSCRIBER DATA, METRICS AND OTHER NON-GAAP FINANCIAL MEASURES (Dollars in thousands, unless otherwise stated) Subscriber Data: For the Three Months Ended March 31, 2008 2007 Beginning subscribers 8,321,785 6,024,555 Net additions 322,534 556,490 Ending subscribers 8,644,319 6,581,045 Retail 4,643,215 4,234,804 OEM 3,986,818 2,323,683 Hertz 14,286 22,558 Ending subscribers 8,644,319 6,581,045 Retail 2,506 192,978 OEM 321,186 364,674 Hertz (1,158) (1,162) Net additions 322,534 556,490 Metrics: For the Three Months Ended March 31, 2008 2007 Gross subscriber additions 1,003,422 988,458 Deactivated subscribers 680,888 431,968 Average monthly churn (1)(6) 2.7% 2.3% SAC per gross subscriber addition (3)(6) $91 $101 Customer service and billing expenses per average subscriber (3)(6) $1.05 $1.15 Total revenue $270,350 $204,037 Free cash flow (4)(6) $(186,535) $(146,715) Monthly ARPU: Average monthly subscriber revenue per subscriber before the effects of Hertz subscribers and rebates $10.09 $10.30 Effects of Hertz subscribers 0.04 0.04 Effects of rebates (0.04) (0.24) Average monthly subscriber revenue per subscriber 10.09 10.10 Average monthly net advertising revenue per subscriber 0.33 0.36 ARPU $10.42 $10.46 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES SUBSCRIBER DATA, METRICS AND OTHER NON-GAAP FINANCIAL MEASURES - CONTINUED (Dollars in thousands, unless otherwise stated) Adjusted Loss from Operations: For the Three Months Ended March 31, 2008 2007 Net loss $(104,118) $(144,745) Depreciation 26,906 26,786 Stock-based compensation 22,262 24,260 Other non operating expense 14,950 9,145 Income tax expense 543 555 Adjusted loss from operations (7) $(39,457) $(83,999) Adjusted Net Loss: For the Three Months Ended March 31, 2008 2007 Net loss $(104,118) $(144,745) Stock-based compensation 22,262 24,260 Adjusted net loss $(81,856) $(120,485) Net loss per share (basic and diluted) (8) $(0.07) $(0.10) Weighted average common shares outstanding (basic and diluted) 1,475,496 1,457,011 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES SUBSCRIBER DATA, METRICS AND OTHER NON-GAAP FINANCIAL MEASURES - CONTINUED (Dollars in thousands, unless otherwise stated) Condensed Consolidated Statements of Operations: For the Three Months Ended March 31, 2008 2007 Total revenue $270,350 $204,037 Operating expenses (excludes depreciation and stock-based compensation shown separately below): Satellite and transmission 7,025 7,330 Programming and content 58,903 57,063 Revenue share and royalties 42,320 27,134 Customer service and billing 26,646 21,654 Cost of equipment 7,588 6,458 Sales and marketing 33,227 35,352 Subscriber acquisition costs 89,810 98,237 General and administrative 36,780 23,403 Engineering, design and development 7,508 11,405 Depreciation 26,906 26,786 Stock-based compensation 22,262 24,260 Total operating expenses 358,975 339,082 Loss from operations (88,625) (135,045) Other expense (14,950) (9,145) Loss before income taxes (103,575) (144,190) Income tax expense (543) (555) Net loss $(104,118) $(144,745) SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) For the Three Months Ended March 31, 2008 2007 Revenue: Subscriber revenue, including effects of rebates $255,640 $190,796 Advertising revenue, net of agency fees 8,408 6,721 Equipment revenue 6,063 4,671 Other revenue 239 1,849 Total revenue 270,350 204,037 Operating expenses (excludes depreciation shown separately below) (1): Cost of services: Satellite and transmission 7,822 7,986 Programming and content 61,692 59,998 Revenue share and royalties 42,320 27,134 Customer service and billing 26,922 21,853 Cost of equipment 7,588 6,458 Sales and marketing 38,467 40,996 Subscriber acquisition costs 89,824 100,117 General and administrative 48,778 35,343 Engineering, design and development 8,656 12,411 Depreciation 26,906 26,786 Total operating expenses 358,975 339,082 Loss from operations (88,625) (135,045) Other income (expense): Interest and investment income 2,802 6,042 Interest expense, net of amounts capitalized (17,675) (15,192) Other (expense) income (77) 5 Total other expense (14,950) (9,145) Loss before income taxes (103,575) (144,190) Income tax expense (543) (555) Net loss $(104,118) $(144,745) Net loss per share (basic and diluted) $(0.07) $(0.10) Weighted average common shares outstanding (basic and diluted) 1,475,496 1,457,011 (1) Amounts related to stock-based compensation included in other operating expenses were as follows: Satellite and transmission $797 $656 Programming and content 2,789 2,935 Customer service and billing 276 199 Sales and marketing 5,240 5,644 Subscriber acquisition costs 14 1,880 General and administrative 11,998 11,940 Engineering, design and development 1,148 1,006 Total stock-based compensation $22,262 $24,260 SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES BALANCE SHEET DATA (Dollars in thousands) As of March 31, 2008 December 31, 2007 (unaudited) Cash, cash equivalents and marketable securities $252,969 $439,289 Restricted investments 56,000 53,000 Working capital (741,218) (394,989) Total assets 1,469,823 1,694,149 Total debt 1,282,743 1,314,418 Total liabilities 2,309,257 2,486,886 Accumulated deficit (4,503,090) (4,398,972) Stockholders' deficit (839,434) (792,737) SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) For the Three Months Ended March 31, 2008 2007 Cash flows from operating activities: Net loss $(104,118) (144,745) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 26,906 26,786 Non-cash interest expense 1,004 754 Provision for doubtful accounts 2,560 2,088 Gain on disposal of assets - (4) Stock-based compensation 22,262 24,260 Deferred income taxes 543 555 Changes in operating assets and liabilities: Accounts receivable 18,765 6,639 Inventory 4,193 (473) Receivables from distributors (9,988) (7,569) Prepaid expenses and other current assets 14,256 (9,173) Other long-term assets 3,256 (23) Accounts payable and accrued expenses (116,741) (47,811) Accrued interest (11,885) (11,763) Deferred revenue 14,712 21,731 Other long-term liabilities (5,017) 7,702 Net cash used in operating activities (139,292) (131,046) Cash flows from investing activities: Additions to property and equipment (39,225) (12,458) Sales of property and equipment - 96 Purchases of restricted and other investments (3,000) (310) Sale of investments 5,000 - Merger related costs (10,018) (2,901) Sales of available-for-sale securities 8 10,850 Net cash used in investing activities (47,235) (4,723) Cash flows from financing activities: Repayment of long-term borrowings (625) - Proceeds from exercise of stock options 840 1,510 Net cash provided by financing activities 215 1,510 Net decrease in cash and cash equivalents (186,312) (134,259) Cash and cash equivalents at the beginning of period 438,820 393,421 Cash and cash equivalents at the end of period $252,508 $259,162 FOOTNOTES TO PRESS RELEASE AND TABLES FOR NON-GAAP FINANCIAL MEASURES

This press release, including the selected financial information above, includes the following non-GAAP financial measures: average monthly churn; SAC per gross subscriber addition; customer service and billing expenses per average subscriber; free cash flow; average monthly revenue per subscriber, or ARPU; adjusted loss from operations; and adjusted net loss. The definitions and usefulness of such non-GAAP financial measures are as follows (dollars in thousands, unless otherwise stated):

(1) SIRIUS defines average monthly churn as the number of deactivated subscribers divided by average quarterly subscribers. (2) SIRIUS defines SAC per gross subscriber addition as subscriber acquisition costs, excluding stock-based compensation, and margins from the direct sale of SIRIUS radios and accessories divided by the number of gross subscriber additions for the period. SAC per gross subscriber addition is calculated as follows: For the Three Months March 31, 2008 2007 Subscriber acquisition costs $89,824 $100,117 Less: stock-based compensation (14) (1,880) Add: margin from direct sales of SIRIUS radios and accessories 1,525 1,787 SAC $91,335 $100,024 Gross subscriber additions 1,003,422 988,458 SAC per gross subscriber addition $91 $101 (3) SIRIUS defines customer service and billing expenses per average subscriber as total customer service and billing expenses, excluding stock-based compensation, divided by the daily weighted average number of subscribers for the period. Customer service and billing expenses per average subscriber is calculated as follows: For the Three Months Ended March 31, 2008 2007 Customer service and billing expenses $26,922 $21,853 Less: stock-based compensation (276) (199) Customer service and billing expenses, as adjusted $26,646 $21,654 Daily weighted average number of subscribers 8,446,343 6,295,282 Customer service and billing expenses, as adjusted, per average subscriber $1.05 $1.15 (4) SIRIUS defines free cash flow as cash flow from operating activities, capital expenditures, merger related costs and restricted and other investment activity. Free cash flow is calculated as follows: For the Three Months Ended March 31, 2008 2007 Net cash used in operating activities $(139,292) $(131,046) Additions to property and equipment (39,225) (12,458) Merger related costs (10,018) (2,901) Restricted and other investment activity 2,000 (310) Free cash flow $(186,535) $(146,715) (5) SIRIUS defines ARPU as the total earned subscriber revenue and net advertising revenue divided by the daily weighted average number of subscribers for the period. ARPU is calculated as follows: For the Three Months Ended March 31, 2008 2007 Subscriber revenue $255,640 $190,796 Net advertising revenue 8,408 6,721 Total subscriber and net advertising revenue $264,048 $197,517 Daily weighted average number of subscribers 8,446,343 6,295,282 ARPU $10.42 $10.46 (6) SIRIUS believes average monthly churn; SAC per gross subscriber addition; customer service and billing expenses per average subscriber; free cash flow; and ARPU provide meaningful information regarding operating performance and liquidity and are used for internal management purposes; when publicly providing the business outlook; as a means to evaluate period-to-period comparisons; and to compare the company's performance to that of its competitors. SIRIUS also believes that investors use current and projected metrics to monitor performance of the business and make investment decisions. SIRIUS believes the exclusion of stock-based compensation expense in the calculations of SAC per gross subscriber addition and customer service and billing expenses per average subscriber is useful given the significant variation in expense that can result from changes in the fair market value of SIRIUS common stock, the effect of which is unrelated to the operational conditions that give rise to variations in the components of subscriber acquisition costs and customer service and billing expenses. Specifically, the exclusion of stock-based compensation expense in the calculation of SAC per gross subscriber addition is critical in being able to understand the economic impact of the direct costs incurred to acquire a subscriber and the effect over time as economies of scale are reached. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These non-GAAP financial measures may be susceptible to varying calculations; may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation for, or superior to measures of financial performance prepared in accordance with GAAP. (7) SIRIUS refers to net loss before taxes; other income (expense) -- including interest and investment income, interest expense, equity in net loss of affiliate; depreciation; and stock-based compensation expense as adjusted loss from operations. Adjusted loss from operations is not a measure of financial performance under GAAP. The company believes adjusted loss from operations is a useful measure of its operating performance. The company uses adjusted loss from operations for budgetary and planning purposes; to assess the relative profitability and on-going performance of consolidated operations; to compare performance from period to period; and to compare performance to that of its competitors. The company also believes adjusted loss from operations is useful to investors to compare operating performance to the performance of other communications, entertainment and media companies. The company believes that investors use current and projected adjusted loss from operations to estimate the current or prospective enterprise value and make investment decisions. Because the company funds and builds-out its satellite radio system through the periodic raising and expenditure of large amounts of capital, results of operations reflect significant charges for interest and depreciation expense. The company believes adjusted loss from operations provides useful information about the operating performance of the business apart from the costs associated with the capital structure and physical plant. The exclusion of interest expense and depreciation is useful given fluctuations in interest rates and significant variation in depreciation expense that can result from the amount and timing of capital expenditures and potential variations in estimated useful lives, all of which can vary widely across different industries or among companies within the same industry. The company believes the exclusion of taxes is appropriate for comparability purposes as the tax positions of companies can vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the various jurisdictions in which they operate. The company also believes the exclusion of stock-based compensation expense is useful given the significant variation in expense that can result from changes in the fair market value of the company's common stock. Finally, the company believes that the exclusion of equity in net loss of affiliate (SIRIUS Canada, Inc.) is useful to assess the performance of its core consolidated operations in the continental United States. To compensate for the exclusion of taxes, other income (expense), depreciation, impairment charges and stock-based compensation expense, the company separately measures and budgets for these items. There are material limitations associated with the use of adjusted loss from operations in evaluating the company compared with net loss, which reflects overall financial performance, including the effects of taxes, other income (expense), depreciation, impairment charges and stock-based compensation expense. The company uses adjusted loss from operations to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. Investors that wish to compare and evaluate the operating results after giving effect for these costs, should refer to net loss as disclosed in the unaudited consolidated statements of operations. Since adjusted loss from operations is a non-GAAP financial measure, the calculation of adjusted loss from operations may be susceptible to varying calculations; may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance in accordance with GAAP. (8) SIRIUS refers to adjusted net loss as net loss per share excluding stock-based compensation expense. Adjusted net loss is not a measure of financial performance under GAAP. The company believes adjusted net loss is useful to investors to compare its operating performance to the performance of other communications, entertainment and media companies. The company also believes the exclusion of stock-based compensation expense is useful given the significant variation in expense that can result from changes in the fair market value of the company's common stock. There are material limitations associated with the use of adjusted net loss in evaluating the company compared with net loss, which reflects overall financial performance, including the effects of stock-based compensation expense. The company uses adjusted net loss to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. Investors that wish to compare and evaluate the operating results after giving effect for these costs, should refer to net loss as disclosed in the unaudited consolidated financial statements of operations. Since adjusted net loss is a non-GAAP financial measure, the calculation of adjusted net loss may be susceptible to varying calculations; may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. About SIRIUS

SIRIUS, "The Best Radio on Radio," delivers more than 130 channels of the best programming in all of radio. SIRIUS is the original and only home of 100% commercial free music channels in satellite radio, offering 69 music channels. SIRIUS also delivers 65 channels of sports, news, talk, entertainment, traffic, weather and data. SIRIUS is the Official Satellite Radio Partner of the NFL, NASCAR, NBA, and broadcasts live play-by-play games of the NFL, NBA, as well as live NASCAR races. All SIRIUS programming is available for a monthly subscription fee of only $12.95.

SIRIUS Internet Radio (SIR) is an Internet-only version of the SIRIUS radio service, without the use of a radio, for the monthly subscription fee of $12.95. SIR delivers more than 80 channels of talk, entertainment, sports, and 100% commercial free music.

SIRIUS Backseat TV (TM) is the first ever live in-vehicle rear seat entertainment featuring three channels of children's programming, including Nickelodeon, Disney Channel and Cartoon Network, for the subscription fee of $6.99 plus applicable audio subscription fee.

SIRIUS products for the car, truck, home, RV and boat are available at shop.sirius.com and in more than 20,000 retail locations, including Best Buy, Circuit City, Crutchfield, Target, Wal-Mart, Sam's Club and RadioShack.

As of March 31, 2008, SIRIUS radios were available as a factory and dealer-installed option in 125 vehicle models and as a dealer only-installed option in 29 vehicle models.

SIRIUS has agreements with Aston Martin, Audi, Bentley, BMW, Chrysler, Dodge, Ford, Jaguar, Jeep, Kia, Land Rover, Lincoln, Maybach, Mazda, Mercedes-Benz, Mercury, MINI, Mitsubishi, Rolls-Royce, Volvo, and Volkswagen to offer SIRIUS radios as factory or dealer-installed equipment in their vehicles. SIRIUS has relationships with Toyota and Scion to offer SIRIUS radios as dealer-installed equipment, and a relationship with Subaru to offer SIRIUS radios as factory or dealer-installed equipment. SIRIUS radios are also offered to renters of Hertz vehicles at airport locations nationwide.

Click on http://www.sirius.com/ to listen to SIRIUS live, or to purchase a SIRIUS radio and subscription.

Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events or performance with respect to SIRIUS Satellite Radio Inc. are not historical facts and may be forward-looking and, accordingly, such statements involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to the factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2007 filed with the Securities and Exchange Commission. Among the significant factors that could cause our actual results to differ materially from those expressed are: our pending merger with XM Satellite Radio Holdings, Inc. ("XM"), including related uncertainties and risks and the impact on our business if the merger is not completed; any events which affect the useful life of our satellites; our dependence upon third parties, including manufacturers of SIRIUS radios, retailers, automakers and programming providers; and our competitive position versus other audio entertainment providers.

E-SIRI CONTACT INFORMATION FOR INVESTORS AND FINANCIAL MEDIA: Paul Blalock SIRIUS 212.584.5174 pblalock@siriusradio.com Hooper Stevens SIRIUS 212.901.6718 hstevens@siriusradio.com

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19991118/NYTH125
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com SIRIUS Satellite Radio

CONTACT: Paul Blalock, +1-212-584-5174, pblalock@siriusradio.com, or
Hooper Stevens, +1-212-901-6718, hstevens@siriusradio.com, both of SIRIUS

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ActivIdentity Reports Fiscal Second Quarter 2008 Financial ResultsActivIdentity reports GAAP net loss for the quarter of $0.93 per share and a non-GAAP loss of $0.03 per share

FREMONT, Calif., May 12 /PRNewswire-FirstCall/ -- ActivIdentity Corporation , a global leader in digital identity assurance, today announced its financial results for its fiscal second quarter ended March 31, 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20051108/SFTU161LOGO)

Revenue for the quarter ended March 31, 2008 was $13.6 million, compared to $14.9 million for the quarter ended March 31, 2007.

Our GAAP net loss for the second quarter of fiscal 2008 was $42.5 m