SAIC Awarded $47 Million Subcontract to Support the Distributed Common Ground System - ArmyCompany to Provide Intelligence, Embedded Mentor and On-site Technical Services

SAN DIEGO and MCLEAN, Va., May 15 /PRNewswire-FirstCall/ -- Science Applications International Corporation today announced it has been awarded a subcontract by Sensor Technologies, Inc. to provide advanced analytical and technical support on a task order for the Distributed Common Ground System - Army (DCGS-A). The task order, awarded under the Army's Strategic Services Sourcing (S3) contract, has a two-year period of performance. SAIC's subcontract has a value of more than $47 million.

DCGS-A provides the U.S. Army with fully integrated and timely intelligence on the battlefield. SAIC will continue to support current DCGS-A system users while integrating new tactics, techniques and procedures and processes to help improve customer capabilities. Throughout the task order, SAIC will provide embedded mentor services to Army and DoD forces around the globe.

"SAIC has done work supporting DCGS-A for the past 2 years -- developing solutions, assisting in transformation efforts, and helping meet demanding mission requirements," said John Thomas, SAIC senior vice president and business unit general manager. "We look forward to continuing to deliver innovative technology solutions to DCGS-A that help provide actionable intelligence to the Warfighter."

SAIC has previously provided system development and analytical support for the Army under a different contract vehicle.

About SAIC

SAIC is a FORTUNE 500(R) scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The company's approximately 44,000 employees serve customers in the Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. SAIC had annual revenues of $8.9 billion for its fiscal year ended January 31, 2008. For more information, visit http://www.saic.com/.

SAIC: From Science to Solutions(R)

Statements in this announcement, other than historical data and information, constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC's Annual Report on Form 10-K for the period ended January 31, 2008, and other such filings that SAIC makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.

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

SAIC

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

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

Telanetix Reports First Quarter 2008 Results- Grows total revenues to $7.7 million, up from $7.4 million in the fourth quarter 2007 -- Reports gross margin of 44.8% -- Provides second quarter 2008 revenue guidance of approximately $8.0 million -

SAN DIEGO, May 15 /PRNewswire-FirstCall/ -- Telanetix, Inc. (OTC BB: TNXI) a leading IP solutions provider offering telepresence and VoIP services to the SMB and SME markets, reported financial results for its first quarter ended March 31, 2008.

Financial Highlights for the First Quarter of 2008 Compared to Fourth Quarter of 2007

-- Revenue was $7.7 million, up from $7.4 million. -- Video revenue was $1.4 million, up from $1.2 million. -- Voice and network revenue was $6.3 million, up from $6.2 million. -- Gross profit was $3.4 million, or 44.8% of revenue, compared to $3.6 million, or 47.8% of revenue. -- Net loss was $9.2 million including Series A preferred stock dividends and accretion of $2.6 million, expense related to fair market valuation of $2.2 million and interest expense of $1.3 million. This compares to $1.4 million including Series A preferred stock dividends and accretion of $186,000, a credit related to fair market valuation of $2.4 million and interest expense of $1.3 million. -- Net loss per share was $0.39, compared to $0.06. -- At March 31, 2008, the cash and cash equivalents balance was $3.8 million, equal to the December 31, 2007 balance.

"We are very excited about 2008," said Doug Johnson, Telanetix CEO. "Our first quarter results are solid with sequential growth in video and voice and network businesses. Telanetix is in an incredible position out in front of a communications market. I believe we are going to change how business gets done. Both video and voice -- a natural pairing -- are truly high-potential markets. Our offer is compelling to the SME and SMB customer, and the market opportunity is vast. Through increased effective indirect sales channels and integrated operations, we expect to increase revenue and gross margin while we simultaneously reduce our operating costs. During the second quarter, we expect to continue revenue growth and reach approximately $8.0 million."

Recent Corporate Highlights -- Integrated video and voice and network divisions into the Bellevue, WA headquarters. -- Promoted Doug Johnson to Chief Executive Officer, while Tom Szabo remains as Chairman. -- Hired Paul Quinn as Chief Financial Officer. -- Entered into an agreement with CallSource(R) to provide $2.5 million of business phone service connectivity over a two-year term. -- Renewed Who's Calling contract to provide $4.0 million of services over two years. -- Secured Digital Presence(TM) accounts in financial services with national money management firm and medical industries with a New York Metropolitan Area hospital. -- Opened a new telepresence demonstration center in Alexandria, VA to gain additional traction in the Mid-Atlantic region. -- Launched Digital Phone Service, a complete VoIP solution aimed at simplifying the process for SMBs switching to VoIP-based phone system, specifically businesses with 2 to 5 employees, which account for 70% of the more than 6 million SMBs in the United States. -- Expanded distribution in Europe with Imago Group, PLC and in the U.S. with six major manufacturer representative firms: Anew Communications Technology, DMJ Technologies, Peter E. Schmitt Company, Omnivue, Mizzen Marketing and Nu-Way Technologies. Conference Call Information

Management will conduct a conference call at 8:00 am PT/11:00 am ET on May 16, 2008 to discuss the company's first quarter 2008 and second quarter 2008 outlook. To access the call in the United States, dial 888-713-4217; to dial-in internationally, dial 617-213-4869 and enter passcode 65733347. The call will also be broadcast live over the Internet and will be available for replay for 90 days at http://www.telanetix.com/. A telephone replay will be available two hours after the call through May 20, 2008 by dialing 888-286-8010 for domestic callers and 617-801-6888 for international callers. All parties will need the following replay pass code 24853243.

About Telanetix, Inc.

Telanetix is a leading IP solutions provider offering telepresence and advanced communication services to the SMB and SME markets. By leveraging on ubiquitous network infrastructures, Telanetix's solutions meet the real-world communications demands of its customers. The company's core technologies include a Telepresence offering, called Digital Presence(TM), designed to create fully immersive and interactive meeting environments that incorporate voice, video and data from multiple locations into a single environment; and IP enabled enhanced services that give companies flexible calling solutions at a fraction of the price of traditional telecom providers. Additional information can be found at the Telanetix corporate website, http://www.telanetix.com/.

Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified based on current expectations. Such risks and uncertainties include, without limitation, the risks and uncertainties set forth from time to time in reports filed by the company with the Securities and Exchange Commission. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The companies undertake no obligation to publicly release statements made to reflect events or circumstances after the date hereof.

TELANETIX, INC. Condensed Consolidated Balance Sheets March 31, December 31, 2008 2007 (Unaudited) ASSETS Current assets Cash $ 3,796,820 $ 3,779,821 Accounts receivable, net 2,234,280 2,406,885 Inventory 254,472 230,590 Prepaid expenses and other current assets 586,878 455,577 Total current assets 6,872,450 6,872,873 Property and equipment, net 5,742,032 5,844,421 Goodwill 6,934,304 6,934,304 Purchased intangibles, net 20,368,333 20,953,333 Other assets 916,733 738,024 Total assets $ 40,833,852 $ 41,342,955 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 2,908,250 $ 1,897,165 Accrued liabilities 2,688,978 2,618,305 Line of credit - 503,590 Deferred revenue 838,700 1,018,515 Deferred compensation, current portion 445,389 445,389 Current portion of capital lease obligations 1,008,824 1,200,989 Convertible debentures, current portion 3,922,719 3,670,734 Warrant and beneficial conversion feature liabilities 13,739,530 9,103,923 Total current liabilities 25,552,390 20,458,610 Non-current liabilities Capital lease obligations, net of current portion 1,327,880 1,433,694 Deferred revenue 123,607 69,700 Convertible debentures, less current portion 804,865 1,003,178 Total non-current liabilities 2,256,352 2,506,572 Total liabilities 27,808,742 22,965,182 Stockholders' equity Preferred stock, $.0001; Authorized: 10,000,000; Issued and outstanding: 13,000 at March 31, 2008 and December 31, 2007 1 1 Common stock, $.0001 par value; Authorized: 200,000,000 shares; Issued and outstanding: 23,609,507 at March 31, 2008 and 23,079,576 at December 31, 2007 2,361 2,308 Additional paid in capital 40,269,358 39,011,923 Warrants 10,000 10,000 Accumulated deficit (27,256,610) (20,646,459) Total stockholders' equity 13,025,110 18,377,773 Total liabilities and stockholders' equity $ 40,833,852 $ 41,342,955 TELANETIX, INC. Condensed Consolidated Statements of Operations Three months ended March 31, 2008 2007 (Restated) Revenues Product revenues $ 1,252,255 $ 419,518 Service revenues 6,404,506 42,750 Total revenues 7,656,761 462,268 Cost of revenues Cost of product revenues 1,138,961 102,051 Cost of service revenues 3,083,025 39,654 Total cost of revenues 4,221,986 141,705 Gross profit 3,434,775 320,563 Operating expenses Selling, general and administrative 4,537,155 1,248,007 Research, development and engineering 1,262,805 196,708 Depreciation 193,419 12,974 Amortization of purchased intangibles 585,000 - Total operating expenses 6,578,379 1,457,689 Operating loss (3,143,604) (1,137,126) Other income (expense) Interest income 7,540 7,540 Interest expense (1,265,595) (503,981) Change in fair market value of warrant and beneficial conversion feature liabilities (2,208,492) (3,922,196) Total other income (expense) (3,466,547) (4,418,637) Net loss (6,610,151) (5,555,763) Series A preferred stock dividends and accretion (2,554,242) - Net loss applicable to common stockholders $ (9,164,393) $ (5,555,763) Net loss per share - basic and diluted $ (0.39) $ (0.36) Weighted average shares outstanding - basic and diluted 23,237,715 15,575,640 TELANETIX, INC. Supplemental Table of Revenue Breakdown Three months ended March 31, 2008 2007 (Restated) Revenues Voice and network solutions revenues $ 6,292,826 $ - Video solutions revenues 1,363,935 462,268 Total revenues 7,656,761 462,268

Telanetix, Inc.

CONTACT: Investor Relations, Jim Blackman of PR Financial Marketing,
+1-713-256-0369, jim@prfmonline.com; or Media, Todd Barrish of Dukas PR,
+1-212-704-7385, todd@dukaspr.com, both for Telanetix, Inc.

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

Spreadtrum Communications, Inc. Announces First Quarter 2008 Results

First Quarter 2008 Financial Summary: -- Total revenue increased 51% year-over-year to US$39.5 million as baseband revenue grew 73% year-over-year. -- Diluted earnings per American Depositary Share (ADS) was US$0.06, up from US$0.05 in 1Q07. -- Gross margin in 1Q08 was 44.9% compared to 42.9% in 1Q07 and 45.5% in 4Q07. -- Operating margin in 1Q08 was 5.1% compared to 5.0% in 1Q07 and 17.6% in 4Q07. Excluding share-based compensation and amortization of intangibles from the Quorum acquisition, non-GAAP operating margin in 1Q08 was 10.8%. -- GAAP net income increased 37% year-over-year to US$2.8 million, while non-GAAP net income was up 55% year-over-year. Recent Business Highlights: -- Spreadtrum completed its acquisition of Quorum Systems, and the integrated team has already won joint designs at handset makers, with a 30-40% attach rate goal by year end. -- Two of Spreadtrum's customers together received over 50% of the initial round of 60,000 TD-SCDMA handset orders from China Mobile in January. Two more rounds of handset orders are expected before the Olympics, and the second phase of the TD-SCDMA network has begun. -- Spreadtrum announced its first mobile TV chip, SC6600V, the industry's first demodulator/decoder chip for CMMB-based mobile TV, which has already started commercial broadcasting in Beijing, Shanghai, and Shenzhen. -- Spreadtrum signed a new partnership agreement with Wingtech to expand that relationship, including a modified SC6600W product. -- Spreadtrum will hold its second annual Technology Forum in Shanghai, June 17-18, to outline its roadmap and plans with its customers, partners, industry media, and investors.

SHANGHAI, China, May 15 /Xinhua-PRNewswire-FirstCall/ -- Spreadtrum Communications, Inc. (Nasdaq: SPRD; the ''Company''), one of China's leading wireless baseband chipset providers, today announced its first quarter 2008 financial results. Under accounting principles generally accepted in the United States of America (US GAAP), diluted earnings per ADS was US$0.06 in the first quarter of 2008 (1Q08), an increase of 20% from US$0.05 in the same period in 2007 (1Q07). Net income for 1Q08 was US$2.8 million, an increase of 37% from US$2.0 million in 1Q07.

US GAAP net income for 1Q08 included US$1.9 million of share-based compensation expense and US$0.4 million of amortization of intangibles from the Quorum acquisition. Excluding the impact of this share-based compensation expense and the amortization of intangibles from the Quorum acquisition, the Company's non-GAAP net income for 1Q08 would have been US$5.0 million, up 55% from US$3.2 million in 1Q07. Diluted non-GAAP earnings per ADS in 1Q08 was US$0.11, up from US$0.08 in 1Q07.

Commenting on the results, the Company's President and CEO, Dr. Ping Wu, said:

''We are pleased that we were able to achieve our financial guidance in light of several factors that made this a challenging first quarter. Traditionally, Q1 is a seasonally slower quarter for the cellphone market. This year the market also had to work down a surplus of inventory from Q4 and cope with the impact of a snowstorm that disrupted travel and consumer spending. We were able to use this slower environment to streamline our internal operations, improve our product mix and enhance our product cost structure, which we believe will have a positive impact on profits in the 2nd half of this year.

On the business side, we completed our purchase of Quorum Systems in January and are far along in the integration of its R&D team and products into the combined Company. The joint team has already had some early successes in getting Quorum's RF transceivers designed into our customers' products and given this traction we are targeting a 30-40% attach rate for our basebands with Quorum's transceivers by the end of the year. Quorum's current products include low cost, low power single chip CMOS based multi-band transceivers for the GSM, GPRS, EDGE, TD-SCDMA, and WCDMA markets. With this acquisition we have more design options and more complete solutions for our customers--from 2G to 3G, physical layer software to protocol and applications.

On the 3G front, we are pleased that China Mobile began commercial trial in April and that two of our customers received a majority of the initial handset orders. We believe China Mobile will place two more rounds of handset orders in Q2 and Q3 respectively and that it has already begun to implement the 2nd phase of its TD-SCDMA network. We remain confident that we are well positioned for the ramp of this new technology in 2008 and beyond, as the market looks to ramp towards 100 million TD-based phones by 2011.

In addition to TD-SCDMA, we also have been working on additional growth drivers. We believe our recently announced mobile TV demodulator/decoder chip (the SC6600V) can work either as a stand-alone solution or with a host chip to address designers' needs and should become an important selling point for cellphones in the latter half of this year. The State Administration of Radio Film and Television (SARFT) already has commercial trials in 10 cities, including Beijing, Shanghai, and Shenzhen, and is expected to have CMMB network in 37 cities by August with network installation planned for another 324 cities in 2009. The area covered by CMMB signals will increase further once a planned satellite is launched.

Most of our revenue in 2008 should still come from our refreshed portfolio of 2G/2.5G products that we believe includes unique integrated features on a single chip that have normally been available only on Smartphones, but that Spreadtrum has brought into mainstream phones - such features as touchscreen, Java, dual-SIM, 5 mega-pixel sensors, and robust API capabilities, enabling such services as cell based A-GPS. Therefore, we believe we have the portfolio to allow handset designers to be successful now, but the roadmap to expand, not just within China's production, but into the international export market as well.''

First Quarter 2008 Financial Review Revenue

Revenue in the first quarter totaled US$39.5 million, representing an increase of 51% from 1Q07 but a seasonal decrease of 19% from 4Q07. Revenue from baseband semiconductors was US$35.5 million, or 90% of revenue, up from 79% of revenue in 1Q07, but a slight drop from 93% of revenue in 4Q07 given end-of-life orders from certain turnkey solution providers. Revenue from turnkey solutions was US$4.0 million, which represented 10% of revenue, down from 21% of revenue in 1Q07 and up from 7% of revenue in 4Q07.

Revenue from baseband semiconductors grew 73% from 1Q07 and decreased 21% from 4Q07 to US$35.5 million. Unit shipments of baseband semiconductors increased 96% from 1Q07 and decreased 25% from 4Q07. Nearly all baseband semiconductor shipments in the first quarter were 2G/2.5G related products. 3G products accounted for 1% of the baseband shipments in 1Q08. The average selling price per unit for baseband semiconductors increased by 8% from 4Q07 as a result of better product mix.

Revenue from turnkey solutions decreased during the quarter by 29% from 1Q07 and increased 11% from 4Q07 to US$4.0 million. The year-over-year decrease was a result of the Company's ongoing plan to phase out its SM5100 series modules, and the sequential increase reflected end-of-life purchases by the Company's modules customers.

Gross Margin

The gross margin for the quarter was 44.9%, up from 42.9% in 1Q07 and down from 45.5% in 4Q07. The non-GAAP gross margin was 45.1%, up from 43.1% in 1Q07 and down from 45.6% in 4Q07. Gross margin for baseband semiconductors in 1Q08 decreased approximately 0.7% from 1Q07, primarily as a result of a decline in the weighted average selling price. Gross margin for baseband semiconductors in 1Q08 increased 1.6% from 4Q07, primarily as a result of better product mix.

The cost of revenue in 1Q08 totaled US$21.7 million, representing an increase of 45% from 1Q07 and a decrease of 18% from 4Q07. The year-over-year increase in absolute dollars was driven by an increase in the total cost of baseband semiconductors from higher volumes partially offset by a decline in the total cost of turnkey solutions. The total cost of turnkey solutions declined as the Company continued to de-emphasize its SM5100 series module business. The sequential decrease was driven by a decrease in total wafer fabrication and assembly and testing costs as a result of the 25% decrease in baseband unit volume from 4Q07.

Operating Margin

The Company's operating margin was 5.1% in 1Q08, compared to 5.0% in 1Q07 and 17.6% in 4Q07. The year-over-year improvement in operating margin was due to higher gross margin and lower SG&A expense as a percentage of revenue partially offset by an increase in R&D expenses as a percentage of revenue. The increase in R&D expenses was primarily due to the acquisition of Quorum Systems, whose primary activities are the research and development of radio frequency transceivers. The sequential decrease in operating margin was primarily attributed to higher R&D expenses as a result of the Quorum acquisition and higher SG&A expenses, as percentages of revenue. Excluding stock based compensation expense and the amortization of intangibles from the Quorum acquisition, the non-GAAP operating margin in 1Q08 was 10.8%, up from 9.7% in 1Q07 and down from 20.7% in 4Q07.

Total operating expenses in 1Q08, which include selling, general and administrative (SG&A) expenses and research and development (R&D) expenses, were US$15.7 million, representing increases of 59% from 1Q07 and 17% from 4Q07. Total operating expenses for the quarter represented 39.9% of revenue, compared to 37.9% and 27.8% of revenue in 1Q07 and 4Q07, respectively. Excluding stock based compensation expense and the amortization of intangibles from the Quorum acquisition, total non-GAAP operating expenses in 1Q08 were US$13.6 million, representing increases of 55% from 1Q07 and 12% from 4Q07. Total non-GAAP operating expenses for the quarter represented 34.3% of revenue.

SG&A expenses increased by 22% in 1Q08 from 1Q07 and 15% from 4Q07 and represented 12.1% of revenue. These expenses as a percentage of revenue in 1Q08 improved from 15.0% of revenue in 1Q07 primarily due to lower fees for professional services and higher revenue level in 1Q08. These expenses as a percentage of revenue in 1Q08 increased from 8.6% of revenue in 4Q07 primarily due to lower revenue level in 1Q08. The year-over-year dollar increase was driven primarily by higher salary and benefits as a result of headcount addition, share-based compensation expense, marketing and business travel expense, partially offset by lower fees for professional services. The sequential dollar increase was driven primarily by higher salary and benefits as a result of headcount additions, higher stock-based compensation, marketing and professional service expenses.

R&D expenses in 1Q08 increased 83% year-over-year and 17% sequentially and represented 27.8% of revenue in 1Q08, compared to 22.9% in 1Q07 and 19.3% in 4Q07. The R&D expenses associated with Quorum Systems, which acquisition was completed in mid-January 2008, represented 4.9% of revenue. The year-over- year and sequential dollar increases were driven primarily by the Company's efforts to expand its product portfolio and the impact of the Quorum acquisition. These increases included higher expenses related to salary and benefits, higher stock-based compensation, depreciation and amortization, and non-recurring engineering expense, partially offset by an increase in government grants for R&D projects.

Non-Operating Income

In 1Q08, the Company recorded net interest income of US$0.8 million, representing an increase of US$0.4 million from 1Q07 and a decrease of US$0.7 million from 4Q07. The year-over-year increase was primarily attributed to interest earned from investing the higher balance of cash and cash equivalents arising from the Company's initial public offering. The sequential decrease was primarily due to a reduction in the balance of cash and cash equivalents, as a result of the Quorum purchase, and declines in interest rates.

Earnings

Diluted earnings per ADS was US$0.06, up 20% from US$0.05 in 1Q07 and down 73% from US$0.22 in 4Q07. Excluding stock based compensation expense and amortization of intangibles from the Quorum acquisition, non-GAAP diluted earnings per ADS for 1Q08 was US$0.11, up from US$0.08 in 1Q07 and down from US$0.25 in 4Q07.

The Company's net income totaled US$2.8 million in 1Q08, an increase of 37% from US$2.0 million in 1Q07 and a decrease of 73% from US$10.2 million in 4Q07. The net margin was 7.0%, down from 7.8% in 1Q07 and 21.0% in 4Q07. Excluding stock based compensation expense and amortization of intangibles from the Quorum acquisition, non-GAAP net margin was 12.7% in 1Q08, up from 12.5% in 1Q07 and down from 24.1% in 4Q07.

Balance Sheet and Cash Flow

As of March 31, 2008, the Company had US$97.2 million in cash and cash equivalents, which represented a decrease of US$59.8 million from December 31, 2007 due primarily to the US$55.4 million cash portion spent on the Quorum acquisition. In 1Q08, the Company also used US$2.7 million cash for operating activities, US$1.2 million on property and equipment, and US$1.4 million on intangible assets.

Accounts receivable (A/R) decreased from US$2.2 million at December 31, 2007 to US$1.4 million at March 31, 2008, and the average A/R days decreased from 5 days to 4 days. Inventory at March 31, 2008 was US$20.3 million, a decrease of $4.8 million from December 31, 2007, and the inventory days decreased from 86 days to 85 days, which is in-line with the Company's targets needed for the ramp up of several new products in 2008. Total assets as of December 31, 2007 were US$257.5 million, up 8.7% from US$236.9 million at December 31, 2007.

Current liabilities decreased from US$43.6 million at December 31, 2007 to US$28.0 million at March 31, 2008, primarily due to a decrease in accounts payable. Long-term liabilities at March 31, 2008 were US$19.8 million, compared to US$5.4 million at December 31, 2007, primarily due to an increase of deferred tax liability resulted from the Quorum acquisition.

Promotion

The Company promoted Dr. Yi Kang to the position of Vice President of Marketing. Dr. Kang joined Spreadtrum in 2003 and has worked on a number of different assignments. As the project manager, he led the team that developed the industry's first GSM/TD-SCDMA single chip baseband (SC8800). Later, he was the head of the Company's Beijing office, built up the R&D team in Beijing, and cultivated relationships with universities, the business community, and government agencies. Most recently he was the head of the Mobile Multimedia unit and led the team that developed the Company's CMMB-based mobile TV chip. Dr. Yi Kang received his Ph.D. degree from the University of Illinois at Urbana-Champaign.

Business Outlook:

The Company currently expects revenue in the second quarter to be approximately US$40 million to US$41 million, which represents a sequential increase of 2% to 4% from the US$39.5 million in the first quarter of 2008. A few select customers were undergoing restructuring efforts that began in Q1 and as a result are seeing some slower growth in Q2. We have engaged with several new customers in China and expect to see some initial ramp with these new customers in the 3rd and 4th quarters. In addition, as we begin to ramp up our mobile TV chip and as the TD-SCDMA market continues to ramp, we believe we should see a meaningful resumption of growth in our business during the 2nd half of this year.

The Company estimates its operating margin in 2Q08 should be in the range of 4%-5%, approximately flat from the Q1 level. The Company estimates its stock-based compensation expense will be approximately $2 million in the second quarter.

Webcast of Conference Call:

The Company's management team will conduct a conference call at 6:00 pm Eastern Time on May 15, 2008. A webcast of the conference call will be accessible on the Company's web site at http://www.spreadtrum.com/. The conference call can also be accessed via the following telephone numbers:

USA (Toll Free): 1-866-679-8035 USA (Toll): 1-617-213-4848 Hong Kong (Toll Free): 800-962-844 China (Toll Free): 10-800-130-0399 Participant Passcode: 97671951

Pre-registration (optional): https://www.theconferencingservice.com/prereg/key.process?key=PWAALGPHF

A replay of the conference call will be available for seven days via the following telephone numbers:

USA (Toll Free): 1-888-286-8010 USA (Toll): 1-617-801-6888 Participant Passcode: 1897 2285 Discussion of Non-GAAP Financial Measures

In addition to disclosing financial results prepared in accordance with US GAAP, the Company's earnings release contains non-GAAP financial measures that exclude the effects of share-based compensation and amortization of intangibles from the Quorum acquisition. The non-GAAP financial measures used by management and disclosed by the Company exclude the income statement effects of all forms of share-based compensation and amortization of intangibles from the Quorum acquisition.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with US GAAP. The financial results reported in accordance with US GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measures used by the Company may be prepared differently from and, therefore, may not be comparable to similarly titled measures used by other companies.

The Company believes that the presentation of non-GAAP gross margin, non- GAAP operating margin, non-GAAP net income, and non-GAAP diluted earnings per ADS provides important supplemental information to management and investors regarding financial and business trends relating to the Company's financial condition and results of operations. The non-GAAP diluted earnings per ADS is calculated by dividing non-GAAP net income by the US GAAP weighted average diluted shares outstanding.

Listed below are the share-based compensation amounts included in net income that management excludes in computing the non-GAAP financial measures referred to in the text of this press release. A reconciliation of GAAP to non-GAAP results is presented after the consolidated balance sheets.

Three months ended March 31, December 31, March 31, 2007 2007 2008 (in thousands of US dollars) Share-based compensation: Cost of revenue $ 49 $ 47 $ 75 Research and development 457 535 790 Selling, general, and administrative 711 913 991 Spreadtrum Communications, Inc. Condensed Consolidated Income Statements (in thousands of US dollars, except per share data and percentages) (unaudited) Three months ended Change from March 31, December March 31, 2007 31, 2007 2008 1Q07 4Q07 Revenue $26,167 $48,542 $39,498 51 % (19)% Cost of revenue 14,954 26,476 21,746 45 % (18)% Gross profit 11,213 22,066 17,752 58 % (20)% Operating expenses Research & development 5,996 9,352 10,967 83 % 17 % Selling, general & administrative 3,920 4,154 4,774 22 % 15 % Total operating expenses 9,916 13,506 15,741 59 % 17 % Operating income 1,297 8,560 2,011 55 % (77)% Non-operating income (expense) Interest income 439 1,452 795 81 % (45)% Interest expense (6) (27) (35) 483 % 30 % Other income, net 331 563 637 92 % 13 % Total non-operating income 764 1,988 1,397 83 % (30)% Income before tax 2,061 10,548 3,408 65 % (68)% Income tax expense 29 352 630 2,072 % 79 % Net income $2,032 $10,196 $2,778 37 % (73)% Basic earnings per ADS $0.36 $0.24 $0.06 (83)% (75)% Diluted earnings per ADS $0.05 $0.22 $0.06 20 % (73)% Margin analysis: Gross margin 42.9 % 45.5 % 44.9 % Operating margin 5.0 % 17.6 % 5.1 % Net margin 7.8 % 21.0 % 7.0 % Weighted average ADS equivalent: (1) Basic 5,659,595 42,263,233 43,164,186 Diluted 38,156,489 47,032,432 46,789,892 (1) Assumes all outstanding ordinary shares are represented by ADSs. Each ADS represents three ordinary shares. Spreadtrum Communications, Inc. Condensed Consolidated Balance Sheets (in thousands of US dollars) (unaudited) March 31, December 31, March 31, 2007 2007 2008 (Note) Cash and cash equivalents $44,801 $157,038 $97,232 Accounts receivable, net 10,713 2,198 1,410 Inventories 9,870 25,054 20,301 Deferred tax assets 202 392 392 Prepaid expenses and other current assets 1,063 5,650 5,625 Total current assets 66,649 190,332 124,960 Property and equipment, net 19,503 23,046 25,236 Acquired intangible assets, net 7,551 14,220 49,321 Goodwill -- -- 46,895 Deferred tax assets 1,060 1,222 1,225 Other long term assets 3,939 8,102 9,876 Total assets 98,702 236,922 257,513 Current portion of long term loan 1,099 685 -- Accounts payable 10,218 24,857 10,165 Advances from customers 2,028 1,210 1,532 Obligation on acquisition of building 5,447 -- -- Income tax payable 1,858 3,088 3,703 Accrued expenses and other current liabilities 12,596 13,773 12,594 Total current liabilities 33,246 43,613 27,994 Long term loan 3,232 3,423 3,562 Deferred tax liabilities 17 37 14,365 Other long-term obligations -- 1,954 1,905 Total long term liabilities 3,249 5,414 19,832 Total liabilities 36,495 49,027 47,826 Shareholders' equity 62,207 187,895 209,687 Total liabilities & $98,702 $236,922 $257,513 shareholders' equity Note: The financial information at March 31, 2008 includes preliminary valuation of Quorum, which is subject to further adjustments. Spreadtrum Communications, Inc. Supplemental Information (in thousands of US dollars, except percentages) Revenue (US$000) 2Q06 3Q06 4Q06 Baseband Semiconductor $11,760 $15,684 $22,645 Turnkey Solutions 17,961 11,017 8,317 Total $29,721 $26,701 $30,962 As % of Total Revenue Baseband Semiconductor 40 % 59 % 73 % Turnkey Solutions 60 % 41 % 27 % Gross Margin 38.8 % 43.2 % 46.4 % Revenue (US$000) 1Q07 2Q07 3Q07 4Q07 1Q08 Baseband $20,589 $27,357 $34,161 $44,971 $35,532 Semiconductor Turnkey Solutions 5,578 4,830 4,409 3,571 3,966 Total $26,167 $32,187 $38,570 48,542 39,498 As % of Total Revenue Baseband 79 % 85 % 89 % 93 % 90 % Semiconductor Turnkey Solutions 21 % 15 % 11 % 7 % 10 % Gross Margin 42.9 % 45.5 % 45.6 % 45.5 % 44.9 % Spreadtrum Communications, Inc. Reconciliation of GAAP to Non-GAAP Results (in thousands of US dollars, except per share data and percentages) (unaudited) Three months ended March 31, December 31, March 31, 2007 2007 2008 Cost of revenue $14,954 $26,475 $21,746 Adjustment for share-based compensation (49) (47) (75) Cost of revenue (non-GAAP) $14,905 $26,428 $21,671 Operating income $1,297 $8,560 $2,011 Adjustment for share-based compensation within: Cost of revenue 49 47 75 Research and development 457 535 790 Selling, general, and administrative 711 913 991 Adjustment for amortization of intangibles from Quorum acquisition within research and development -- -- 400 Operating income (non-GAAP) $2,514 $10,055 $4,267 Net income $2,032 $10,196 $2,778 Adjustment for share-based compensation within: Cost of revenue 49 47 75 Research and development 457 535 790 Selling, general, and administrative 711 913 991 Adjustment for amortization of intangibles from Quorum acquisition within research and development 400 Net income (non-GAAP) * $3,249 $11,691 $5,034 Diluted earnings per ADS $0.05 $0.22 $0.06 Adjustment for share-based compensation 0.03 0.03 0.04 Adjustment for amortization of intangibles from Quorum acquisition -- -- 0.01 Diluted earnings per ADS (non- GAAP)* $0.08 $0.25 $0.11 Gross margin 42.9 % 45.5 % 44.9 % Adjustment for share-based compensation 0.2 % 0.1 % 0.2 % Gross margin (non-GAAP) 43.1 % 45.6 % 45.1 % Operating margin 5.0 % 17.6 % 5.1 % Adjustment for share-based compensation 4.7 % 3.1 % 4.7 % Adjustment for amortization of intangibles from Quorum acquisition -- -- 1.0 % Operating margin (non-GAAP) 9.7 % 20.7 % 10.8 % Net margin 7.8 % 21.0 % 7.0 % Adjustment for share-based compensation 4.7 % 3.1 % 4.7 % Adjustment for amortization of intangibles from Quorum acquisition -- -- 1.0 % Net margin (non-GAAP)* 12.5 % 24.1 % 12.7 % * The non-GAAP adjustment does not take into consideration the impact of taxes. About Spreadtrum Communications, Inc.:

Spreadtrum Communications, Inc. (Nasdaq: SPRD; the ''Company'') is a fabless semiconductor company that designs, develops, and markets baseband processor solutions for the mobile wireless communications market. The Company combines its semiconductor design expertise with its software development capabilities to deliver highly-integrated baseband processors with multimedia functionality and power management. The Company has developed its solutions based on an open development platform, enabling its customers to develop customized wireless products that are feature-rich and meet their cost and time-to-market requirements.

Safe Harbor Statements:

This press release contains "forward-looking statements" within the meaning of the ''safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding the impact that the streamlining of the Company's internal operations, improvement of product mix and product and cost structure will have on the Company's operations in the second half of the year, the Company's target attach rate by year-end for the Company's baseband chips with Quorum's transceivers, China Mobile's placement of second and third rounds of TD-SCDMA handset orders before the Olympics, the TD-SCDMA industry's ramp up of TD-SCDMA technology towards a 100 million user target by 2011, China Mobile's implementation of the second phase of its TD-SCDMA network, our positioning for the ramp up in the manufacture of cellphones incorporating TD- SCDMA technology, that cellphones incorporating our mobile TV demodulator/decoder chip will become an important selling point, the availability of CMMB network in 37 cities by August and CMMB network installation plans for 2009, the revenue in 2008 coming mostly from the Company's refreshed portfolio of 2G/2.5G products, ramp up in sales to new customers during the third and fourth quarters, the improvement in our business during the second half of the year and the Company's expectations with respect to the revenue, operating margin, and stock-based compensation for the second quarter of 2008. These statements are forward-looking in nature and involve risks and uncertainties that may cause actual market trends and the Company's actual results to differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to, continuing competitive pressure in the semiconductor industry and the effect of such pressure on prices; unpredictable changes in technology and consumer demand for mobile phones; the Company's ability to integrate Quorum's operations into its own; the Company's ability to successfully produce and market Quorum's RF transceivers in volume; the rate at which the commercial deployment of TD- SCDMA technology will grow; market acceptance of products utilizing TD-SCDMA technology; the Company's ability to sustain recent rates of growth; the state of and any change in the Company's relationship with its major customers; and changes in political, economic, legal and social conditions in China. For additional discussion of these risks and uncertainties and other factors, please consider the information contained in the Company's filings with the U.S. Securities and Exchange Commission (the ''SEC''), including the registration statement on Form F-1 filed on June 26, 2007, as amended, especially the sections under ''Risk Factors'' and ''Management's Discussion and Analysis of Financial Condition and Results of Operations,'' and such other documents that the Company may file with the SEC from time to time, including on Form 6-K. The Company assumes no obligation to update any forward-looking statements, which apply only as of the date of this press release.

For investor information, please contact: Investor Relations Tel: +86-21-5080-2727 x2268 Email: ir@spreadtrum.com

Spreadtrum Communications, Inc.

CONTACT: Investor Relations at +86-21-5080-2727 x2268 or
ir@spreadtrum.com

ATA Announces Preliminary Results for Fourth Quarter and Fiscal Year Ended March 31, 2008

BEIJING, May 16 /Xinhua-PRNewswire-FirstCall/ -- ATA Inc. ("ATA" or the "Company") , the leading provider of computer-based testing and testing-related services in China, today announced its preliminary unaudited financial results for its fiscal fourth quarter ended March 31, 2008 ("Fourth Quarter 2008") and fiscal year ended March 31, 2008 ("Fiscal Year 2008").

The following is an estimate of our preliminary unaudited financial results for the fourth quarter and fiscal year ended March 31, 2008 and these estimates remain subject to change. These results may, for example, become subject to adjustment based upon, among other things, completion of our full year reporting processes, and our audited results could differ materially from the estimates provided below. For additional information regarding the various risks and uncertainties inherent in estimates of this type, see the section entitled "Cautionary Note Regarding Forward Looking Statements" at the end of this press release.

Fourth Quarter 2008 Highlights (Preliminary) -- Net revenues increased by 84.0% year-over-year to approximately RMB29.8 million (US$4.3 million). -- Gross profit increased by 290.3% year-over-year to approximately RMB16.7 million (US$2.4 million). -- Loss from operations decreased to approximately RMB4.6 million (US$ 0.7 million) from RMB12.6 million in the same period last year. -- Net loss was approximately RMB10.8 million (US$1.5 million) compared to a net loss of RMB11.8 million in the same period last year. -- Net loss excluding share-based compensation expense and foreign currency exchange losses (non-GAAP) was approximately RMB1.3 million (US$0.2 million) compared to RMB11.1 million in the same period last year. -- Basic and diluted loss per ADS were expected to be RMB0.60 (US$0.09). Basic and diluted loss per ADS excluding share-based compensation expense and foreign currency exchange losses (non-GAAP) were expected to be RMB0.07 (US$0.01). Each ADS represents two common shares of the Company. -- For the quarter, ATA delivered approximately 597,000 tests, an increase of 89.0% year-over-year. In addition, average revenue per test increased to RMB19.1 from RMB9.9 in the same period last year. Fiscal Year 2008 Highlights (Preliminary) -- Net revenue increased approximately by 103.6% year-over-year to RMB172.8 million (US$24.6 million). -- Gross profit increased approximately by 141.9% year-over-year to RMB105.9 million (US$15.1 million). -- Income from operations increased to approximately RMB25.6 million (US$3.7 million) compared to a loss from operations of RMB19.6 million in the previous year. -- Net income was approximately RMB15.1 million (US$2.2 million), compared to a loss of RMB16.8 million in the previous year. -- Net income excluding share-based compensation expense and foreign currency exchange losses, net (non-GAAP) was approximately RMB30.5 million (US$4.4 million), compared to a loss of RMB13.4 million in the previous year. -- Basic and diluted earnings per ADS were expected to be RMB1.19 (US$0.17) and RMB0.80 (US$0.11), respectively. Basic and diluted earnings per ADS excluding share-based compensation expense and foreign currency exchange losses (non-GAAP) were RMB2.40 (US$0.34) and RMB1.62 (US$0.23), respectively. -- For the full year, ATA delivered approximately 3.6 million tests, an increase of 8.9% year-over-year while average revenue per test increased to RMB21.5 from RMB7.4 in the same period last year.

"We are happy with our performance for 2008 and are very excited about what we can achieve for 2009," said Kevin Ma, ATA's Chairman and Chief Executive Officer. "We believe we remain the leading player in China's computer-based testing services market and are well positioned for further growth."

ATA's Chief Financial Officer, Carl Yeung, stated, "Our revenue and operating profitability for the full year has reached new milestones. For the quarter, despite a continuing slow down in growth of our test-based educational services and a delay in the launch of nationwide internet cafe licensure testing, we have continued to meet our revenue and profitability expectations as we experienced an increase in volume of test takers from Ministry of Labor and Securities Association of China."

Preliminary Financial Results for the Fourth Quarter 2008

For Fourth Quarter 2008, ATA estimates net revenues to be approximately RMB29.8 million (US$4.3 million), representing an 84.0% increase year-over-year. This increase was mainly driven by an estimated 263.7% increase in net revenues from testing services, and an estimated 31.2% increase in net revenues from test-based educational programs.

The overall number of tests delivered increased by 89.0% year-over-year to approximately 597,000 in Fourth Quarter 2008, while the average revenue per test delivered rose to RMB19.1 from RMB9.9 in the same period of fiscal year 2007. This increase in average revenue per test was due, in part, to a significant increase in the number of tests delivered for the Securities Association of China and Ministry of Labor.

Gross profit estimated to increase by 290.3% year-over-year to approximately RMB16.7 million (US$2.4 million) from RMB4.3 million in the same period last year. Gross margin estimated to increase to 56.1% in the Fourth Quarter 2008 from 26.4% in the same period last year, driven by higher contribution from the Company's more profitable testing services as a percentage of total net revenue.

Operating expenses estimated to increase by 26.4% year-over-year to approximately RMB21.4 million (USS$3.0 million) from RMB16.9 million in the same period last year, primarily due to the increase in general and administrative expenses related to share-based compensation, an increase in our research and development staff, and incremental expenses related to being a public company.

Loss from operations estimated to decrease to approximately RMB4.6 million (US$0.7 million) from RMB12.6 million in the same period last year. Operating margin expected to be negative 15.4% in Fourth Quarter 2008 compared to negative 77.7% in the same period last year. Operating margin improved due to stable operating expenses and a fast-growing revenue base.

For the quarter, ATA estimates to have incurred a foreign currency loss of RMB7.6 million (US$1.1 million) primarily due to a high US dollar cash balance from the January IPO proceeds and RMB appreciated against the US dollar during the quarter.

Net loss for Fourth Quarter 2008 was approximately RMB10.8 million (US$1.5 million), compared to net loss of RMB11.8 million in the same period last year. Basic and diluted loss per common share expected to be RMB0.30 (US$0.04), and basic and diluted loss per ADS were RMB0.60 (US$0.09).

Net loss excluding share-based compensation expense and foreign currency exchange losses (non-GAAP) expected to be RMB1.3 million (US$0.2 million) for Fourth Quarter 2008 compared to loss of RMB11.1 million in the same period last year. Basic and diluted loss per ADS excluding share-based compensation expense and foreign currency exchange losses (non-GAAP) were expected to be RMB0.07 (US$0.01).

Preliminary Financial Results for the Fiscal Year Ended March 31, 2008

For the fiscal year ended March 31, 2008 ATA reported net revenues of approximately RMB172.8 million (US$24.6 million), representing a 103.6% increase over the fiscal year ended March 31, 2007.

Total number of tests delivered was approximately 3.6 million, an increase of 8.9% over the fiscal year ended March 31, 2007, while average revenue per test increased to approximately RMB21.5 from RMB7.4 the prior year.

Gross profit margin for the full year expected to expand to approximately 61.3% compared to 51.6% for the fiscal year ended March 31, 2007.

Operating margin expected to improve to approximately 14.8% compared to negative 23.1% for the fiscal year ended March 31, 2007.

Net income was approximately RMB15.1 million (US$2.2 million), and net income excluding share-based compensation expense and foreign currency exchange losses (non-GAAP) was approximately RMB30.5 million (US$4.4 million).

Basic and diluted earnings per ADS were approximately RMB1.19 (US$0.17) and RMB0.80 (US$0.11), respectively. Basic and diluted earnings per ADS excluding share-based compensation expense and foreign currency exchange losses (non-GAAP) were RMB2.40 (US$0.34) and RMB1.62 (US$0.23), respectively.

Other Operating Data

As of March 31, 2008, ATA had 342 staff, 134 of which were in client service and support, 72 in sales and marketing, 73 in research and development and 63 in general and administrative functions.

As of March 31, 2008, ATA had 1,854 authorized test centers located throughout China.

The number of weighted average ADSs used to calculate basic and diluted earnings per ADS for the quarter ended March 31, 2008 were 18.0 million and 21.4 million respectively.

ATA had 43.6 million common shares outstanding as of March 31, 2008. First Quarter 2009 and Full Year Fiscal Year 2009 Guidance

For the fiscal first quarter 2009, ATA forecasts net revenues will be in the range of RMB66 million to RMB69 million, representing year-over-year growth in the range of 149% to 161%. ATA re-iterates the expectation that net revenues for the fiscal year ended March 31, 2009 will be in the range of RMB340 million to RMB350 million, which is expected to represent a 97% to 103% growth over fiscal year 2008. This is ATA's current and preliminary view, which is subject to change. Our results of operations for Fourth Quarter 2008 and the fiscal year ended March 31, 2008 are not necessarily indicative of our operating results for any future periods.

Conference Call

The Company will host a conference call at 6:00 p.m. ET on May 15, 2008, to discuss the results for the Fourth Quarter 2008. Joining Kevin Ma, CEO of ATA Inc., will be Walter Wang, Director and President, and Carl Yeung, Chief Financial Officer. To participate in the conference call, please dial +1(800)901-5248 five to ten minutes prior to the scheduled conference call time and ask to join the ATA Inc call. International callers should dial +1(617)786-4512. Callers from Hong Kong should dial +852-3002-1672.

If you are unable to participate in the call at this time, a replay will be available on May 15 at 9:00 p.m. ET, for seven days. To access the replay, dial +1(888)286-8010, international callers should dial +1(617)801-6888, and enter the pass code 64528046.

This conference call will be broadcast live over the Internet and can be accessed by all interested parties on ATA Inc.'s website at http://www.ata.net.cn/. To listen to the live webcast, please go to ATA Inc.'s website at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on ATA Inc.'s website for 90 days.

Other Announcements:

On May 13, 2008, ATA has completed the domestic PRC approvals required for acquisition of Beijing Jindixin Software Technology Company Limited, or Beijing Jindixin, and its parent company, JDX Holdings Limited. This acquisition is expected to expand ATA's business by allowing ATA to market test delivery services to test sponsors that are using software developed by Beijing Jindixin. This will expand ATA's scope of services to test sponsors that wish to outsource their test management systems, and leverage the relationships developed by the management of Beijing Jindixin with test sponsors.

ATA recorded registration of 470,000 test takers for the China Banking Association test scheduled to take place between May 31, 2008 and June 1, 2008. ATA expects its revenue per test taker for this client to decrease from RMB74 per test taker in fiscal year 2008 to RMB64 per test taker in fiscal year 2009. This is due to the China Banking Association lowering the test fee paid by candidates from RMB150 to RMB100. Although the test fee has been reduced, ATA will receive an effective higher revenue split of 64%, up from 49%. ATA will also reduce certain services in order to protect its profit per test taker. ATA believes that lower fees paid by test candidates will further support the high growth momentum for China Banking Association test takers. In addition, the new arrangement demonstrates ATA's strong position as an established test delivery provider in China.

About ATA Inc.:

ATA is the leading provider of computer-based testing services in China. The Company offers comprehensive services for the creation and delivery of computer-based tests based on its proprietary testing technologies and test delivery platform. The Company's computer-based testing services are used for professional licensure and certification tests in various industries, including information technology, or IT, services, banking, teaching, securities, insurance and accounting. ATA's test center network comprised 1,854 authorized test centers located throughout China as of March 31, 2008, which the Company believes is the largest test center network of any commercial testing service provider in China. Combined with its test delivery technologies, this network allows ATA's clients to administer large-scale nationwide tests in a consistent, secure and cost-effective manner. ATA has delivered over 24 million tests since it commenced operations in 1999, and in July 2007 delivered tests to more than 200,000 test takers in a single day for the China Banking Association, through its test delivery platform. For further information, please visit: http://www.ata.net.cn/ .

Cautionary Note Regarding Forward-looking Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "look forward to," "outlook," "forecast," "will," "expect," "anticipate," "future," "intend," "plan," "believe," "estimate" and similar terminology and include, among other things, the Company's anticipated financial and operating results for the fiscal quarter ending June 30, 2008 and the fiscal year ending March 31, 2009. Among the factors that could cause the Company's actual financial and operating results to differ from what the Company currently anticipate may include the Company's ability to meet challenges associated with its rapid expansion, the Company's ability to meet the expectations of current and future clients, the Company's ability to implement and maintain effective internal controls over financial reporting, the health of the PRC economy, and uncertainties with respect to the PRC legal and regulatory environments. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's prospectus dated January 28, 2008, which was filed with the U.S. Securities and Exchange Commission and is available on the Securities and Exchange Commission's website at http://www.sec.gov/. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations and prospects, se "Risk Factors" beginning on page 9 of our prospectus.

The forward-looking statements in this release involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the markets in which it operates. The Company undertakes no obligation to update forward-looking statements, which speak only of the Company's views as of the date of this release, to reflect subsequent events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, the Company cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

About Non-GAAP Financial Measures

To supplement ATA's consolidated financial results presented in accordance with U.S. generally accepted accounting principles ("GAAP"), ATA uses the following measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission: net income excluding share-based compensation expenses and foreign currency exchange losses and basic and diluted earnings per ADS excluding share-based compensation expenses and foreign currency exchange losses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

ATA believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses and foreign currency exchange losses, which may not be indicative of its operating performance from a cash perspective. ATA believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to ATA's historical performance and liquidity. ATA computes its non-GAAP financial measures using the consistent method from quarter to quarter. ATA believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP net income excluding share- based compensation expenses and basic and diluted earnings per share and per ADS excluding share-based compensation expenses is that share-based compensation charges have been and are expected to continue to be for the foreseeable future a significant recurring expense in ATA's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying table captioned "Reconciliations of Non-GAAP measures to the most comparable GAAP measures" set forth at the end this release, has more details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures used by ATA.

Currency Convenience Translation

The Company's financial information is stated in RMB. The translation of RMB amounts for the Fourth Quarter 2008 into United States dollars is included solely for the convenience of readers and has been made at the rate of RMB7.0120 to US$1.00, the noon buying rate as of March 31, 2008 in the City of New York for cable transfers in RMB per US dollar as certified for customs purposes by the Federal Reserve Bank of New York. Such translations should not be construed as representations that RMB amounts could be converted into US dollar at that rate or any other rate, or to be the amounts that would have been reported under US GAAP.

For more information, please contact: ATA Inc. Carl Yeung, CFO Tel: +86-10-6518-1122 x5107 Email: ir@ata.net.cn CCG Elite Investor Relations Crocker Coulson, President Tel: +1-646-213-1915 Email: crocker.coulson@ccgir.com Ed Job, CFA Tel: +1-646-213-1914 Email: ed.job@ccgir.com

ATA Inc.

CONTACT: Carl Yeung, CFO of ATA Inc., +86-10-6518-1122 x5107, or
ir@ata.net.cn; Or Crocker Coulson, President, +1-646-213-1915, or
crocker.coulson@ccgir.com; Or Ed Job, CFA, +1-646-213-1914, or
ed.job@ccgir.com, both of CCG Elite Investor Relations

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

Autodesk Reports First Quarter Fiscal 2009 Revenue of $599 Million

SAN RAFAEL, Calif., May 15 /PRNewswire-FirstCall/ -- Autodesk, Inc. today reported revenue of $599 million for the first quarter of fiscal 2009, an increase of 18 percent over the first quarter of fiscal 2008. First quarter net income was $95 million, or $0.41 per diluted share, on a GAAP basis and $117 million, or $0.50 per diluted share, on a non-GAAP basis. Net income in the first quarter of the prior year was $83 million, or $0.34 per diluted share on a GAAP basis, and $107 million, or $0.44 per diluted share on a non-GAAP basis. A reconciliation between GAAP and non-GAAP results is provided at the end of this press release.

"Fiscal 2009 is off to a good start with our solid first quarter results," said Carl Bass, Autodesk president and CEO. "International markets, especially emerging economies, continue to underpin our overall revenue growth. We also continue to experience strong growth of our 3D products. Autodesk continues to drive innovative design technologies into a variety of industries - architecture, engineering, manufacturing, media and entertainment - and we will continue to work hard to shape the evolution of industry design trends such as Digital Prototyping and Building Information Modeling."

Operational Highlights

In addition to favorable currency exchange rates, Autodesk's performance in the first quarter of fiscal 2009 was driven by revenue from new seats, continued customer adoption of our 3D design solutions, and strong revenue growth in emerging economies.

Revenue from the emerging economies increased 41 percent over the first quarter of fiscal 2008 to $101 million and represented 17 percent of total revenue.

The outstanding growth in emerging economies led to strong performance in our EMEA and Asia Pacific regions. EMEA revenue was $259 million, an increase of 25 percent as reported over the first quarter of fiscal 2008, and 11 percent at constant currency. Revenue in Asia Pacific was $149 million, an increase of 27 percent as reported year-over-year, and 18 percent at constant currency. Faced with continued economic headwinds, revenue in the Americas increased 4 percent over the first quarter of fiscal 2008 to $191 million, as expected.

Combined revenue from the Company's model-based 3D products, Inventor, Revit, Civil 3D, NavisWorks, and Robobat, increased 37 percent over the first quarter of fiscal 2008 to $146 million and comprised 24 percent of total revenue. Autodesk shipped approximately 35,000 commercial seats of its model- based 3D design products, including 11,500 commercial seats of Inventor and 24,000 seats of its Architecture, Engineering and Construction products - Revit, Civil 3D, and NavisWorks. In addition, revenue from 2D vertical products increased 16 percent compared to the first quarter of fiscal 2008.

Revenue from new seats increased by 23 percent compared to the first quarter of fiscal 2008.

Upgrade revenue and maintenance revenue combined increased 16 percent over the first quarter of fiscal 2008 to $228 million. Maintenance revenue increased 33 percent compared to the first quarter of fiscal 2008 to $167 million, or 28 percent of total revenue. Deferred maintenance revenue increased $40 million sequentially and $130 million compared to the first quarter of fiscal 2008. As expected, total upgrade revenue decreased 14 percent compared to the first quarter of fiscal 2008.

Business Outlook

The following statements are forward-looking statements which are based on current expectations and which involve risks and uncertainties some of which are set forth below. On May 1, 2008, Autodesk announced its intent to acquire Moldflow Corporation. Moldflow financials are not included in the following numbers.

Second Quarter Fiscal 2009

Net revenue for the second quarter of fiscal 2009 is expected to be in the range of $600 million and $610 million. GAAP earnings per diluted share are now expected to be in the range of $0.40 and $0.42. This is slightly lower than our prior projection due to additional stock-based compensation expenses. Non-GAAP earnings per diluted share are expected to be in the range of $0.52 and $0.54 and exclude $0.09 related to stock-based compensation expense and $0.03 for the amortization of acquisition related intangibles.

Third Quarter Fiscal 2009

Net revenue for the third quarter of fiscal 2009 is expected to be in the range of $605 million and $620 million. GAAP earnings per diluted share are expected to be in the range of $0.42 and $0.45. Non-GAAP earnings per diluted share are expected to be in the range of $0.53 and $0.56 and exclude $0.09 related to stock-based compensation expense and $0.02 for the amortization of acquisition related intangibles.

Full Year Fiscal 2009

For fiscal year 2009, net revenue is expected to be in the range of $2.45 billion and $2.50 billion. Full year GAAP earnings per diluted share are now expected to be in the range of $1.78 and $1.88. This is slightly lower than our prior projection due to additional stock-based compensation expenses. Non-GAAP earnings per diluted share are still expected to be in the range of $2.20 and $2.30 and exclude $0.32 related to stock-based compensation expense and $0.10 for the amortization of acquisition related intangibles.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraphs under "Business Outlook" above, statements regarding anticipated market trends and other statements regarding our expected performance and results. Other factors that could cause actual results to differ materially include the following: general market and business conditions, our performance in particular geographies, including emerging economies, complications or difficulties closing our pending acquisition of Moldflow Corporation, difficulties encountered in integrating new or acquired businesses and technologies or the inability to realize the anticipated benefits of acquisitions, fluctuation in foreign currency exchange rates, unexpected fluctuations in our tax rate, the timing and degree of expected investments in growth opportunities, slowing momentum in maintenance or subscription revenues, failure to achieve sufficient sell-through in our channels for new or existing products, pricing pressure, failure to achieve continued cost reductions and productivity increases, failure to achieve continued migration from 2D products to 3D products, changes in the timing of product releases and retirements, failure of key new applications to achieve anticipated levels of customer acceptance, failure to achieve continued success in technology advancements, the financial and business condition of our reseller and distribution channels, interruptions or terminations in the business of the Company's consultants or third party developers, and unanticipated impact of accounting for technology acquisitions.

Further information on potential factors that could affect the financial results of Autodesk are included in the Company's reports on Form 10-K for the year ended January 31, 2008 which is on file with the Securities and Exchange Commission. Autodesk does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Earnings Conference Call and Webcast

Autodesk will host its first quarter conference call today at 5:00 p.m. EDT. The live announcement may be accessed at http://www.autodesk.com/investors or by dialing 800-561-2813 or 617-614-3529 (passcode: 38361016). An audio webcast or podcast of the call will be available at 7:00 pm EDT at http://www.autodesk.com/investors. This replay will be maintained on our website for at least twelve months. An audio replay will also be available for one month beginning at 7:00 pm EDT by dialing 888-286-8010 or 617-801-6888 (passcode: 41192095).

About Autodesk

Autodesk, Inc. is the world leader in 2D and 3D design software for the manufacturing, building and construction, and media and entertainment markets. Since its introduction of AutoCAD software in 1982, Autodesk has developed the broadest portfolio of state-of-the-art digital prototyping solutions to help customers experience their ideas before they are real. Fortune 1000 companies rely on Autodesk for the tools to visualize, simulate and analyze real-world performance early in the design process to save time and money, enhance quality and foster innovation. For additional information about Autodesk, visit http://www.autodesk.com/.

Note: AutoCAD, Autodesk, Civil 3D, Inventor, Revit, NavisWorks, and Robobat are either registered trademarks or trademarks of Autodesk, Inc., in the US and/or other countries. All other brand names, product names or trademarks belong to their respective holders.

Investors: David Gennarelli, david.gennarelli@autodesk.com, 415-507-6033 Katie Blanchard, katherine.blanchard@autodesk.com, 415-507-6034 Press: Pam Pollace, pam.pollace@autodesk.com, 415-547-2441 Colleen Rubart, colleen.rubart@autodesk.com, 415-547-2368 Autodesk, Inc. Consolidated Statements of Income (In millions, except per share data) Three Months Ended April 30, 2008 2007 (Unaudited) Net revenues: License and other $432.2 $383.2 Maintenance 166.6 125.4 Total net revenues 598.8 508.6 Cost of license and other revenues 55.8 50.5 Cost of maintenance revenues 2.0 2.2 Total cost of revenues 57.8 52.7 Gross margin 541.0 455.9 Operating Expenses: Marketing and sales 223.9 192.5 Research and development 143.7 114.7 General and administrative 53.5 47.3 Total operating expenses 421.1 354.5 Income from operations 119.9 101.4 Interest and other income, net 6.9 9.8 Income before income taxes 126.8 111.2 Provision for income taxes (32.2) (27.9) Net income $94.6 $83.3 Basic net income per share $0.42 $0.36 Diluted net income per share $0.41 $0.34 Shares used in computing basic net income per share 226.2 231.2 Shares used in computing diluted net income per share 232.6 243.8 Autodesk, Inc. Condensed Consolidated Balance Sheets (In millions) April 30, January 31, 2008 2008 (Unaudited) (Audited) ASSETS: Current assets: Cash and cash equivalents $909.1 $917.9 Marketable securities 32.9 31.4 Accounts receivable, net 333.5 386.5 Deferred income taxes 96.7 98.1 Prepaid expenses and other current assets 51.2 47.9 Total current assets 1,423.4 1,481.8 Marketable securities 8.3 8.4 Computer equipment, software, furniture and leasehold improvements, net 84.3 80.2 Purchased technologies, net 60.6 64.4 Goodwill 447.6 443.4 Deferred income taxes, net 39.8 51.3 Other assets 76.0 79.4 $2,140.0 $2,208.9 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $73.7 $79.3 Accrued compensation 90.5 162.4 Accrued income taxes 18.8 14.4 Deferred revenues 431.3 400.7 Borrowings under line of credit 40.0 - Other accrued liabilities 80.2 89.7 Total current liabilities 734.5 746.5 Deferred revenues 118.4 105.4 Long term income taxes payable 93.1 86.5 Other liabilities 58.6 40.0 Commitments and contingencies Stockholders' equity: Preferred stock - - Common stock and additional paid-in capital 962.7 998.3 Accumulated other comprehensive income (loss) 20.1 13.8 Retained earnings 152.6 218.4 Total stockholders' equity 1,135.4 1,230.5 $2,140.0 $2,208.9 Autodesk, Inc. Condensed Consolidated Statements of Cash Flows (In millions) Three Months Ended April 30, 2008 2007 (Unaudited) Operating Activities Net income $94.6 $83.3 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 16.9 14.2 Stock-based compensation expense 25.2 14.8 Changes in operating assets and liabilities, net of business combinations 48.6 79.3 Net cash provided by operating activities 185.3 191.6 Investing Activities Purchases of available-for-sale marketable securities (2.1) (447.7) Sales and maturities of available-for-sale marketable securities 0.8 358.0 Capital and other expenditures (13.4) (6.8) Capitalization of software development costs (1.0) - Business combinations, net of cash acquired 0.2 - Net cash used in investing activities (15.5) (96.5) Financing activities Proceeds from issuance of common stock, net of issuance costs 35.3 - Borrowings under line of credit 39.9 - Repurchases of common stock (256.5) - Net cash used in financing activities (181.3) - Effect of exchange rate changes on cash and cash equivalents 2.7 1.3 Net increase in cash and cash equivalents (8.8) 96.4 Cash and cash equivalents at beginning of year 917.9 665.9 Cash and cash equivalents at end of period $909.1 $762.3 Autodesk, Inc. Reconciliation of GAAP financial measures to non-GAAP financial measures (In millions, except per share data) To supplement our consolidated financial statements presented on a GAAP basis, Autodesk provides investors with certain non-GAAP measures including non-GAAP net income, non-GAAP net income per share, non-GAAP cost of license and other revenues, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP interest and other income, net and non-GAAP provision for income taxes. These non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, employee tax reimbursements related to our stock option review, litigation expenses, in-process research and development expenses, restructuring expenses, amortization of purchased intangibles, investment impairment and income tax expenses. See our reconciliation of GAAP financial measures to non-GAAP financial measures herein. We believe these exclusions are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of Autodesk's underlying operational results and trends and our marketplace performance. For example, the non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release. The following table shows Autodesk's non-GAAP results reconciled to GAAP results included in this release. Three Months Ended April 30, 2008 2007 (Unaudited) GAAP cost of license and other revenues $55.8 $50.5 SFAS 123R stock-based compensation expense (1.0) (0.6) Amortization of developed technology (3.6) (2.1) Employee tax reimbursements related to stock option review - (1.1) Non-GAAP cost of license and other revenues $51.2 $46.7 GAAP gross margin $541.0 $455.9 SFAS 123R stock-based compensation expense 1.0 0.6 Amortization of developed technology 3.6 2.1 Employee tax reimbursements related to stock option review - 1.1 Non-GAAP gross margin $545.6 $459.7 GAAP marketing and sales $223.9 $192.5 SFAS 123R stock-based compensation expense (10.5) (6.1) Employee tax reimbursements related to stock option review - (4.8) Non-GAAP marketing and sales $213.4 $181.6 GAAP research and development $143.7 $114.7 SFAS 123R stock-based compensation expense (8.4) (4.9) Employee tax reimbursements related to stock option review - (4.4) Non-GAAP research and development $135.3 $105.4 GAAP general and administrative $53.5 $47.3 SFAS 123R stock-based compensation expense (5.3) (3.2) Amortization of customer relationships and trademarks (2.9) (1.9) Employee tax reimbursements related to stock option review - (1.7) Non-GAAP general and administrative $45.3 $40.5 GAAP operating expenses $421.1 $354.5 SFAS 123R stock-based compensation expense (24.2) (14.2) Employee tax reimbursements related to stock option review - (10.9) Amortization of customer relationships and trademarks (2.9) (1.9) Non-GAAP operating expenses $394.0 $327.5 GAAP income from operations $119.9 $101.4 SFAS 123R stock-based compensation expense 25.2 14.8 Employee tax reimbursements related to stock option review - 12.0 Amortization of developed technology 3.6 2.1 Amortization of customer relationships and trademarks 2.9 1.9 Non-GAAP income from operations $151.6 $132.2 GAAP provision for income taxes $(32.2) $(27.9) Income tax effect on difference between GAAP and non-GAAP total costs and expenses at a normalized rate (9.1) (7.3) Non-GAAP provision for income taxes $(41.3) $(35.2) GAAP net income $94.6 $83.3 SFAS 123R stock-based compensation expense 25.2 14.8 Employee tax reimbursements related to stock option review - 12.0 Amortization of developed technology 3.6 2.1 Amortization of customer relationships and trademarks 2.9 1.9 Income tax effect on difference between GAAP and non-GAAP total costs and expenses at a normalized rate (9.1) (7.3) Non-GAAP net income $117.2 $106.8 GAAP diluted net income per share $0.41 $0.34 SFAS 123R stock-based compensation expense 0.11 0.06 Employee tax reimbursements related to stock option review - 0.05 Amortization of developed technology 0.01 0.01 Amortization of customer relationships and trademarks 0.01 0.01 Income tax effect on difference between GAAP and non-GAAP total costs and expenses at a normalized rate (0.04) (0.03) Non-GAAP diluted net income per share $0.50 $0.44 GAAP diluted shares used in per share calculation 232.6 243.8 Impact of SFAS 123R on diluted shares 0.3 1.3 Non-GAAP diluted shares used in per share calculation 232.9 245.1 Other Supplemental Financial Information (1) Fiscal Year 2009 QTR 1 QTR 2 QTR 3 QTR 4 YTD 2009 Financial Statistics (in millions, except per share data): Total net revenues $599 $599 License and other revenues $432 $432 Maintenance revenues $167 $167 Gross Margin - GAAP 90% 90% Gross Margin - Non-GAAP 91% 91% GAAP Operating Expenses $421 $421 GAAP Operating Margin 20% 20% GAAP Net Income $95 $95 GAAP Diluted Net Income Per Share $0.41 $0.41 Non-GAAP Operating Expenses(2)(3) $394 $394 Non-GAAP Operating Margin(2)(4) 25% 25% Non-GAAP Net Income (2)(5) $117 $117 Non-GAAP Diluted Net Income Per Share (2)(6) $0.50 $0.50 Total Cash and Marketable Securities $950 $950 Days Sales Outstanding 51 51 Capital Expenditures $13 $13 Cash from Operations $185 $185 GAAP Depreciation and Amortization $17 $17 Revenue by Geography (in millions): Americas $191 $191 Europe $259 $259 Asia/Pacific $149 $149 Revenue by Segment (in millions): Platform Solutions and Emerging Business and Other $278 $278 Architecture, Engineering and Construction $129 $129 Manufacturing Solutions $119 $119 Media and Entertainment $67 $67 Other $6 $6 Other Revenue Statistics: % of Total Rev from AutoCAD, AutoCAD upgrades and AutoCAD LT 41% 41% % of Total Rev from 3D design products 24% 24% % of Total Rev from Emerging Economies 17% 17% Upgrade Revenue (in millions) $61 $61 Deferred Maintenance Revenue (in millions): Deferred Maintenance Revenue Balance $474 $474 Favorable (Unfavorable) Impact of U.S. Dollar Translation Relative to Foreign Currencies Compared to Comparable Prior Year Period (in millions): FX Impact on Total Net Revenues $41 $41 FX Impact on Total Operating Expenses $(14) $(14) FX Impact on Total Net Income $27 $27 Gross Margin by Segment (in millions): Platform Solutions and Emerging Business and Other $263 $263 Architecture, Engineering and Construction $119 $119 Manufacturing Solutions $110 $110 Media and Entertainment $50 $50 Unallocated amounts $(1) $(1) Common Stock Statistics: GAAP Shares Outstanding 223,616,000 223,616,000 GAAP Fully Diluted Weighted Average Shares Outstanding 232,607,000 232,607,000 Shares Repurchased 8,001,000 8,001,000 Installed Base Statistics: Total AutoCAD-based Installed Base 4,377,000 4,377,000 Total Inventor Installed Base 794,000 794,000 Total Maintenance Installed Base 1,587,000 1,587,000 (1) Totals may not agree with the sum of the components due to rounding. (2) To supplement our consolidated financial statements presented on a GAAP basis, Autodesk provides investors with certain non-GAAP measures including non-GAAP net income, non-GAAP net income per share, non-GAAP cost of license and other revenues, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP interest and other income, net and non-GAAP provision for income taxes. These non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, employee tax reimbursements related to our stock option review, litigation expenses, in-process research and development expenses, restructuring expenses, amortization of purchased intangibles, investment impairment and income tax expenses. See our reconciliation of GAAP financial measures to non-GAAP financial measures herein. We believe these exclusions are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of Autodesk's underlying operational results and trends and our marketplace performance. For example, the non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release. Fiscal Year 2009 QTR 1 QTR 2 QTR 3 QTR 4 YTD 2009 (3) GAAP Operating Expenses $421 $421 Stock-based compensation expense (24) (24) Amortization of customer relationships and trademarks (3) (3) In-process research and development - - Non-GAAP Operating Expenses $394 $394 (4) GAAP Operating Margin 20% 20% Stock-based compensation expense 4% 4% Amortization of developed technology 1% 1% Amortization of customer relationships and trademarks 0% 0% In-process research and development 0% 0% Non-GAAP Operating Margin 25% 25% (5) GAAP Net Income $95 $95 Stock-based compensation expense 25 25 Amortization of developed technology 4 4 Amortization of customer relationships and trademarks 3 3 In-process research and development - - Income tax effect on difference between GAAP and non-GAAP total costs and expenses at a normalized rate (9) (9) Non-GAAP Net Income $117 $117 (6) GAAP Diluted Net Income Per Share $0.41 $0.41 Stock-based compensation expense 0.11 0.11 Amortization of developed technology 0.01 0.01 Amortization of customer relationships and trademarks 0.01 0.01 In-process research and development - - Income tax effect on difference between GAAP and non-GAAP total costs and expenses at a normalized rate (0.04) (0.04) Non-GAAP Diluted Net Income Per Share $0.50 $0.50

Autodesk, Inc.

CONTACT: investors, David Gennarelli, david.gennarelli@autodesk.com,
+1-415-507-6033, or Katie Blanchard, katherine.blanchard@autodesk.com,
+1-415-507-6034, or press, Pam Pollace, pam.pollace@autodesk.com,
+1-415-547-2441, Colleen Rubart, colleen.rubart@autodesk.com, +1-415-547-2368,
all of Autodesk, Inc.

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

Novellus Announces Availability and Timing of Mid-Quarter Update Conference Call Webcast for Second Quarter 2008

SAN JOSE, Calif., May 15 /PRNewswire-FirstCall/ -- Novellus Systems, Inc. , today announced that it will provide its mid-quarter update for the second quarter 2008 in a conference call to be held Thursday, May 29, 2008, beginning at 1:30 p.m. PDT. The call will be available via an audio webcast that can be accessed on Novellus' Investor Relations home page, located at http://www.novellus.com/. A replay of the webcast will be available for seven days following the conference call.

About Novellus:

Novellus Systems, Inc. is a leading provider of advanced process equipment for the global semiconductor industry. The company's products deliver value to customers by providing innovative technology backed by trusted productivity. An S&P 500 company, Novellus is headquartered in San Jose, Calif. with subsidiary offices across the globe. For more information please visit http://www.novellus.com/.

Novellus Systems, Inc.

CONTACT: Robin S. Yim, Investor Relations of Novellus Systems, Inc.,
+1-408-943-9700

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

Simclar Announces Results for First Quarter of 2008

HIALEAH, Fla., May 15 /PRNewswire-FirstCall/ -- Simclar, Inc. , a multi-plant electronics contract manufacturer, reported its results for the three months ended March 31, 2008.

Revenue for the three months ended March 31, 2008 was $29,922,815 compared to $31,407,512 in the same period in 2007. The decrease, while disappointing, was due in the main to the postponement of the introduction of a key customer's new programs until later in the year.

Pre-tax income for the three months ended March 31, 2008 was $59,101 compared to $967,634 for the same period in 2007. While this decrease was partly as a result of the decrease in sales, the most significant factor was the inclusion in the 2008 results of costs of approximately $797,000 in relation to the closure of our North Carolina facility.

Net income for the three months ended March 31, 2008 was $40,485 or $0.01 per share, compared to $638,639 or $0.10 per share in the same period in 2007. However, exclusion of the North Carolina closure costs would give an adjusted net income for the first quarter of 2008 of $566,304 or $0.09 per share.

Chairman Sam Russell commented, "The quarter's performance, although below our expectations, was nevertheless severely impacted by the $0.8 million of costs incurred as a result of the closure of our North Carolina facility. With the closure now complete and the transferred business now fully integrated into our Mexican facility, we look forward to the future benefits of improved profitability and cash flow. Although it is evident that the economic slow-down has affected some of our key customers, our backlog at the end of the quarter was $28 million, an increase of 6% since the end of 2007, and our forecasts indicate a stronger second quarter. Management has implemented cost-reduction programs across each location to mitigate the effect of lower sales and reduced margins to improve profitability in future quarters, while retaining our competitive advantage. The company's cash generation in the first quarter has been good allowing the repayment of $1.5 million of bank loans, half of which were voluntary repayments".

Simclar, Inc., with four North American manufacturing locations, and numerous regional sales locations, has been engaged in contract manufacturing of electronic and electro-mechanical products for OEMs for 32 years.

Statements in this news release, which relate to other than strictly historical facts, such as statements about the Company's plans and strategies, expectations for future financial performance, and markets for the Company's products and services are forward-looking statements. The words "believe," "expect," "anticipate," "estimate," "project," and similar expressions identify forward-looking statements that speak only as of the date hereof. Investors are cautioned that such statements involve risks and uncertainties that could cause actual results to differ materially from historical or anticipated results due to many factors including, but not limited to, the Company's customer concentration, debt covenants, competition, the effectiveness of our internal controls, and other risks detailed in the Company's most recent Annual Report on Form 10-K and other Securities and Exchange Commission filings. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

Visit Simclar, Inc. at its website, http://www.simclar.com/ for more information about the Company.

Simclar, Inc.

CONTACT: Steph Donnelly, CFO of Simclar, Inc., +1-937-220-9777

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

SRA Awarded $10 Million Task Order from Department of Defense's Defense Threat Reduction Agency

FAIRFAX, Va., May 15 /PRNewswire-FirstCall/ -- SRA International, Inc. , a leading provider of technology and strategic consulting services and solutions to government organizations, today announced it has been awarded a task order to provide logistics, network support, software engineering and Web services for research and development operations for the Defense Threat Reduction Agency (DTRA). The task order, awarded in March under the U.S. Army Communications-Electronics Command (CECOM) Rapid Response (CR2) contract, has an estimated value of $10 million over two years.

DTRA's mission is to safeguard the U.S. and its allies from weapons of mass destruction by providing capabilities to reduce, eliminate and counter threats, and mitigate their effects.

"SRA is privileged to continue our support of DTRA's nationally critical mission," said SRA Senior Vice President of the National Security Sector, Pat Burke. "Through a partnership that focuses on innovation and excellence, SRA has been awarded this DTRA recompete contract for the third time. DTRA recognizes our ability to deliver results and seamlessly work with the agency's team as well as multiple contractors."

About SRA International, Inc.

SRA is a leading provider of technology and strategic consulting services and solutions -- including systems design, development, and integration; and outsourcing and managed services -- to clients in national security, civil government, and health care and public health markets. The Company also delivers business solutions for contingency and disaster response planning, information assurance, business intelligence, environmental strategies, enterprise architecture, infrastructure management, and wireless integration.

FORTUNE(R) magazine has chosen SRA as one of the "100 Best Companies to Work For" for nine consecutive years. The Company's 6,400 employees serve clients from its headquarters in Fairfax, Virginia, and offices around the world. For additional information on SRA, please visit http://www.sra.com/.

Any statements in this press release about future expectations, plans, and prospects for SRA, including statements about the estimated value of the contract and work to be performed, and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements. In addition, the forward-looking statements included in this press release represent our views as of May 15, 2008. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to May 15, 2008.

SRA International, Inc.

CONTACT: Sheila S. Blackwell of SRA International, Inc.,
+1-703-227-8345, sheila_blackwell@sra.com

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

Frank Musso Joins Document Capture Technologies Board of DirectorsBrings over 30 Years of Financial and Management Consulting Expertise to Board

SAN JOSE, Calif., May 15 /PRNewswire-FirstCall/ -- Document Capture Technologies, Inc. (BULLETIN BOARD: DCMT) , a leading provider of secure imaging solutions, today announced that its Board of Directors has elected Frank Musso, CPA CFE, as a Director of the Company, effective May 15, 2008.

The Board of Directors has appointed Mr. Musso to serve as the Chair of the Audit Committee. Mr. Musso has over 30 years of financial experience and was an audit supervisor with KPMG, New York City. For the last 17 years, he has provided consulting and interim C-level management for a variety of public and private companies, in strategic development, mergers and acquisitions, corporate finance, and organizational structure. Mr. Musso has also served as a volunteer Treasurer, Board and Executive Committee member of two non profit organizations.

"We are delighted to welcome Frank to our Board and look forward to tapping into the financial and leadership experience that he brings to our Board of Directors," said David P. Clark, Chief Executive Officer "We expect that his consulting on Sarbanes-Oxley implementation and compliance and governance issues with publicly held companies will be very beneficial to us as we are in the midst of that process right now. We are confident that Frank's expertise will make him a valuable resource for the Company and a strong advocate for the interests of our shareholders."

About Document Capture Technologies, Inc.

Document Capture Technologies, Inc. (BULLETIN BOARD: DCMT.OB) , headquartered in San Jose, Calif., designs and manufactures document capture solutions for OEM customers worldwide. The company currently manufactures over 20 proprietary document capture products and has become one of the world's largest private-label manufacturers of USB-powered mobile document scanning devices. The Company's growing intellectual property portfolio in document capture includes four key patents with an additional one patent pending.

Forward-Looking Statements

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on current expectations and are subject to a number of known and unknown risks, uncertainties and other factors beyond the Company's control that could cause actual events and results to differ materially from these statements. These risks include, without limitation, that there can be no assurance that any strategic opportunities will be available to the Company and that any strategic opportunities may only be available on terms not acceptable to the Company. These statements are not guarantees of future performance, and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Document Capture undertakes no obligation to update publicly any forward-looking statements.

Company Contact: Document Capture Technologies, Inc. David P. Clark (561) 835-4069 dclark@docucap.com Investor Contact: Hayden Communications, Inc. Peter Seltzberg (646) 415-8972 peter@haydenir.com

Document Capture Technologies, Inc.

CONTACT: David P. Clark of Document Capture Technologies, Inc.,
+1-561-835-4069, dclark@docucap.com; or investors, Peter Seltzberg of Hayden
Communications, Inc., +1-646-415-8972, peter@haydenir.com, for Document
Capture Technologies, Inc.

Document Capture Technologies Reports First Quarter 2008 Financial Results

SAN JOSE, Calif., May 15 /PRNewswire-FirstCall/ -- Document Capture Technologies, Inc. (BULLETIN BOARD: DCMT) , a leading provider of secure imaging solutions, today announced financial results for the first quarter ended March 31, 2008.

Net sales for the first quarter ended March 31, 2008 were $2.5 million, a decrease of 39%, compared to $4.1 million in net sales for the first quarter of 2007. The decrease in net sales in the quarter was primarily due to the timing and rescheduling of significant customer orders that resulted in a lower number of scanners shipped in the quarter and less favorable market conditions in the U.S. First quarter revenue comparisons were also impacted by pushed out orders from the fourth quarter of 2006 worth approximately $700,000 that were recognized in the first quarter of 2007.

David P. Clark, Chief Executive Officer, commented, "Though the domestic spending environment remains challenged for growth, and we have seen some of this impact on our customers' quarterly order patterns, we remain optimistic in our ability to grow our business and look forward to being able to report additional progress in dialogs with strategic partners, new product launches, and new initiatives in the coming months. The strength of our balance sheet continues to work to our advantage and our business generated over one million dollars in cash for the quarter, a positive swing of approximately two million dollars compared to last year's first quarter."

Cost of sales for the first quarter of 2008 were $1.8 million, resulting in lower gross profit of $733,000, or 29% gross margin, compared to gross profit of $1.6 million, or 40% gross margin, based on $2.5 million cost of sales for the first quarter of 2007. The decreased gross margin percentage in the first quarter of 2008 as compared to the first quarter of 2007 was directly attributable to the devaluation of the U.S. dollar against the Chinese Yuan and certain product mix factors.

William Hawkins, Chief Operating Officer commented, "While we did experience some softness in orders, particularly due to the general slow down in consumer IT spending,