Align Technology (ALGN) Announces Third Quarter Fiscal 2009 Results

Oct. 22, 2009 (GlobeNewswire) —

 * includes training, ancillary products, and retainers

 * Utilization = # of cases shipped/# of doctors to whom cases
   were shipped

 ALIGN TECHNOLOGY, INC.
 BUSINESS OUTLOOK SUMMARY
 (unaudited)

Rocky Brands, Inc. (RCKY) Announces Third Quarter Fiscal 2009 Results

Oct. 22, 2009 (Business Wire) — Rocky Brands, Inc. (Nasdaq: RCKY) today announced financial results for its third quarter ended September 30, 2009.

For the third quarter of 2009, net sales were $66.6 million versus net sales of $72.5 million in the third quarter of 2008. The Company’s earnings before income taxes increased 53.4% to $4.4 million in third quarter 2009 compared to $2.9 million in the same period last year. Net earnings increased 17.2% to $2.8 million, or $0.50 per diluted share versus net earnings of $2.4 million, or $0.43 per diluted share a year ago. In the third quarter of 2008, the Company received a one-time prior year tax benefit of approximately $0.6 million, or $0.10 per diluted share. Excluding this one-time benefit, third quarter 2009 diluted EPS increased 51.5% to $.50 compared to $.33 in the third quarter of 2008.

Mike Brooks, Chairman and Chief Executive Officer, commented, “We are very pleased with our third quarter performance. Our recent results reflect the steps we have taken over the last 18 months to reduce expenses and improve efficiency in order to enhance our profitability and strengthen our balance sheet. For the fifth consecutive quarter we lowered our operating expenses double digits on a percentage basis as we continue to remove costs from our retail division by transitioning more customer transactions to the internet. At the same time, our ability to more effectively manage our inventory levels and receivables decreased borrowings under our credit facility and lowered our interest expense by 14%. Equally important, we began to see some stabilization of our sales base with several of our wholesale categories – Hunting, Western, and Duty – reporting positive gains. With inventories at retailers relatively clean, we are optimistic we will continue to benefit from a higher frequency of reorders and we are confident that we can deliver improved profitability year-over-year during the fourth quarter.”

Third Quarter Review

Net sales for the third quarter decreased to $66.6 million compared to $72.5 million a year ago. Wholesale sales for the third quarter decreased 2.1% to $54.5 million compared to $55.6 million for the same period in 2008. Retail sales for the third quarter were $11.5 million compared to $15.3 million for the same period last year. Retail sales were down year-over-year as a result of the ongoing transition to more internet driven transactions, and the decision to remove a portion of our Lehigh mobile stores from operation to help lower costs as discussed below. Military segment sales for the third quarter were $0.6 million versus $1.6 million for the same period in 2008. Third quarter 2009 military sales include the initial shipments of insulated boots under the $29 million blanket purchase agreement the company received from the General Services Administration (GSA) in July 2009.

Gross margin in the third quarter of 2009 was $24.7 million, or 37.1% of sales compared to $27.1 million, or 37.4% for the same period last year.

Selling, general and administrative (SG&A) expenses decreased $3.4 million or 15.4% to $18.6 million, or 27.9% of sales for the third quarter of 2009 compared to $22.0 million, or 30.3% of sales, a year ago. The decrease in SG&A expenses was primarily the result of a reduction in salaries & benefits, freight, Lehigh mobile store expenses and tradeshow expenses.

Income from operations increased $1.0 million, or 19.8% to $6.1 million, or 9.2% of sales for the period compared to income from operations of $5.1 million, or 7.1% sales in the prior year.

Interest expense decreased $0.3 million or 14.4% to $2.0 million for the third quarter of 2009 versus $2.3 million for the same period last year. The decrease is the result of a reduction in average borrowings combined with lower interest rates compared to the same period last year.

The Company’s funded debt decreased $24.1 million, or 22.4% to $83.4 million at September 30, 2009 versus $107.6 million at September 30, 2008.

Inventory decreased $15.3 million, or 18.3%, to $68.1 million at September 30, 2009 compared with $83.3 million on the same date a year ago.

The Company’s accounts receivable decreased 19.8% to $58.3 million at September 30, 2009 versus $72.7 million at September 30, 2008.

Conference Call Information

The Company’s conference call to review third quarter fiscal 2009 results will be broadcast live over the internet today, Thursday, October 22, 2009 at 4:30 pm Eastern Time. The broadcast will be hosted at www.rockybrands.com.

About Rocky Brands, Inc.

Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky Outdoor Gear®, Georgia Boot®, Durango®, Lehigh®, and the licensed brands Dickies®, Michelin® and Mossy Oak®.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management, and include statements in this press release regarding a higher frequency of reorders and improved profitability (paragraph 3). These forward-looking statements involve numerous risks and uncertainties, including, without limitation, the various risks inherent in the Company’s business as set forth in periodic reports filed with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2008 (filed March 3, 2009) and the Company’s quarterly report on Form 10-Q for the quarters ended March 31, 2009 (filed May 4, 2009) and June 30, 2009 (filed July 31, 2009). One or more of these factors have affected historical results, and could in the future affect the Company’s businesses and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the Company, or any other person should not regard the inclusion of such information as a representation that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.

Speedus Corp. (SPDE) Subsidiary Cleared as Apple iPhone Developer; Medical Applications for Smartphones Planned

STAMFORD, Conn., Oct. 21 /PRNewswire/ — Zargis Medical Corp., a subsidiary of Speedus Corp. (Nasdaq: SPDE) and a spin-off from Siemens Corporate Research (NYSE: SI), today announced that is has been cleared as an Apple(®) iPhone(®) developer and has begun development of medical diagnostic support software and related peripherals for the iPhone and other leading smartphones.

Zargis has identified the handheld environment as a logical delivery platform for its telemedicine and diagnostic software initiatives, and with its team of experienced developer’s plans to leverage the smartphone platform as a mobile hub between medical device peripherals and computer-aided diagnostic support located either locally or remotely.

A recent report released by Manhattan Research stated that 64% of doctors, more than double the number eight years ago, own smartphones, and that this figure will increase to 81% penetration in 2012. However, despite the rapid adoption of the iPhone and other smartphones by physicians, currently available healthcare applications for these devices are generally limited to medical reference libraries, educational tools and applications designed to manage patient medical records.

“The future of healthcare delivery is about connectivity and mobility. Zargis’ expertise in computer-aided auscultation and our advanced medical software platform positions us perfectly to create diagnostic software and peripherals that are a natural fit for smartphones. We intend to improve healthcare efficiency by helping clinicians bring medical technology to the patient, rather than the other way around,” stated Zargis CEO John Kallassy.

About Zargis Medical Corp.

Zargis Medical Corp. develops advanced diagnostic decision support products and services for primary care physicians, pediatricians, cardiologists and other healthcare professionals. Zargis was formed in 2001 when Siemens Corporate Research, a division of Siemens AG (NYSE: SI), and Speedus Corp. co-invested to develop and market an advanced acoustic technology designed to detect heart abnormalities identified through analysis of heart sounds.

For additional information about Zargis or Speedus Corp., contact Peter Hodge at 888.773.3669 (ext. 23) or phodge@zargis.com or visit the following Web sites: www.zargis.com and www.speedus.com.

Statements contained herein that are not historical facts, including but not limited to statements about the Company’s product, corporate identity and focus, may be forward-looking statements that are subject to a variety of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the Company, including, but not limited to, the continuing development of the Company’s sales, marketing and support efforts.

TigerLogic (TIGR) Announces the General Availability of Omnis Studio 5

Banner Corporation (BANR) Announces Third Quarter Results

WALLA WALLA, Wash., Oct. 20, 2009 (GLOBE NEWSWIRE) — Banner Corporation (Nasdaq:BANR), the parent company of Banner Bank and Islanders Bank, today reported that it had a net loss of $6.4 million for the third quarter ended September 30, 2009, compared to a net loss of $991,000 for the third quarter of 2008. The current quarter’s results include a $25.0 million provision for loan losses and a $4.6 million net gain from the valuation of financial instruments carried at fair value. For the nine-month period ended September 30, 2009, Banner reported a net loss of $32.2 million compared to a net loss of $49.5 million for the nine months ended September 30, 2008. The nine month results for 2008 included a $50.0 million goodwill impairment charge.

In the fourth quarter a year ago, Banner issued $124 million of senior preferred stock to the U.S. Treasury as a participant in the Treasury’s Capital Purchase Program. In the quarter ended September 30, 2009, Banner paid a $1.6 million dividend on this preferred stock and accrued $373,000 for related discount accretion. Including the preferred stock dividend and related accretion, the net loss to common shareholders was $8.4 million, or $0.44 per diluted share, for the third quarter, compared to a net loss of $991,000, or $0.06 per diluted share, for the third quarter a year ago. Year-to-date, the net loss to common shareholders was $38.0 million, or $2.11 per diluted share, compared to a net loss of $49.5 million, or $3.09 per diluted share for the first nine months of 2008.

“Similar to recent quarters, our provision for loan losses during the third quarter reflects continued material levels of non-performing loans and net charge-offs, particularly for loans for the construction of one-to-four family homes and for acquisition and development of land for residential properties,” said D. Michael Jones, President and CEO. “However, while there is still much work to be accomplished, we are encouraged by the further reduction in our exposure to residential construction loans during the quarter and the slowdown in the surfacing of new problem assets. By contrast to construction and development loans, the non-housing related segments of our loan portfolio have continued to perform as expected with only normal levels of credit problems given the serious economic slowdown.”

“Retail deposit growth was a highlight again in the third quarter as we continued to replace public and brokered funds with attractively priced core deposits which will continue to strengthen our commercial banking franchise,” Jones continued. “Also notable in the quarter was strong mortgage banking revenues as exceptionally low interest rates resulted in continued refinancing opportunities for many of our customers, and lower home prices and first-time buyer incentives led to solid purchase financing activities. Continuing its earlier success, our Great Northwest Home Rush promotion contributed to additional home sales. Through the date of this announcement our builders have accepted purchase offers on 361 of the 617 homes listed under this program, with 289 of those sales having closed through September 30, 2009.”

Credit Quality

“In addition to the weakness in the residential construction market, property values exhibited further declines, particularly for land and developed building lots, resulting in additional charge-offs and impairment reserves,” said Jones. “As a result, our provision for loan losses for the quarter ended September 30, 2009, while significantly less than in the immediately preceding quarter, was in excess of our normal expectations. Although property values have declined, sales of finished homes have improved, our reserve levels are substantial, and both our impairment analysis and charge-off actions reflect current appraisals and valuation estimates as well as recent regulatory examination results. Unfortunately, with respect to land and lot loans, those appraisals generally reflect a very limited number of sales which frequently involve distressed transactions and assume in many cases that market recoveries will be protracted, resulting in disappointingly low and uncertain valuation estimates which required further loss provisioning. We remain hopeful that the final resolution of many of these loans will reflect better than currently recognized values and we are confident that we have the capital and human resources necessary to manage the collection of problem assets in the current economic environment.”

Banner recorded a $25.0 million provision for loan losses in the third quarter, compared to $45.0 million in the preceding quarter and $8.0 million in the third quarter of 2008. For the first nine months of the year, the provision for loan losses was $92.0 million compared to $29.5 million for the first nine months of 2008. The allowance for loan losses at September 30, 2009 was $95.2 million, representing 2.44% of total loans outstanding. Non-performing loans totaled $243.3 million at September 30, 2009, compared to $225.1 million in the preceding quarter and $119.4 million at September 30, 2008. In addition, Banner’s real estate owned and repossessed assets totaled $53.8 million at September 30, 2009, compared to $57.2 million three months earlier and $10.2 million at September 30, 2008. Banner’s net charge-offs in the quarter ended September 30, 2009 totaled $20.5 million, or 0.53% of average loans outstanding and year-to-date net charge-offs were $72.0 million, or 1.83% of average loans outstanding.

At September 30, 2009, the geographic distribution of our construction and land development loans, including residential and commercial properties, is approximately 33% in the greater Puget Sound market, 37% in the greater Portland, Oregon market, and 8% in the greater Boise, Idaho market, with the remaining 22% distributed in various eastern Washington, eastern Oregon and northern Idaho markets served by Banner Bank. One-to-four family residential construction and related lot and land loans represent 16% of the total loan portfolio and 73% of non-performing assets. The geographic distribution of non-performing construction, land and land development loans and real estate owned included approximately $110 million, or 44%, in the Puget Sound region, $84 million, or 34%, in the greater Portland market area and $27 million, or 11%, in the greater Boise market area.

Income Statement Review

Banner’s net interest margin was 3.30% for the third quarter, compared to 3.24% in the preceding quarter and 3.45% for the third quarter a year ago. Funding costs decreased 18 basis points compared to the previous quarter and decreased 67 basis points from the same quarter a year earlier, while asset yields decreased eight basis points from the prior linked quarter and 82 basis points from the third quarter a year ago, all reflecting the much lower interest rate environment. For the first nine months of 2009, the net interest margin was 3.27% compared to 3.52% for the first nine months of 2008.

“Funding costs continued to decline, which allowed our net interest margin to expand modestly despite the drag on earnings from the still high level of non-performing assets,” said Jones. Non-accruing loans reduced the margin by approximately 42 basis points in this year’s third quarter compared to approximately 45 basis points in the immediately preceding quarter of 2009 and approximately 24 basis points in the third quarter of 2008.

For the third quarter of 2009, net interest income before the provision for loan losses was $36.4 million, compared to $34.9 million in the preceding quarter and $37.6 million in the third quarter a year ago. In the first nine months of 2009, net interest income before the provision for loan losses was $106.2 million compared to $112.0 million in the first nine months of 2008. Revenues from core operations* (net interest income before the provision for loan losses plus total other operating income excluding fair value adjustments) were $45.2 million in the third quarter of 2009, compared to $43.9 million in the second quarter of 2009 and $45.7 million for the third quarter a year ago. Revenues from core operations for the first nine months of 2009 were $131.9 million, compared to $135.4 million for the same period of 2008.

Banner’s results for the quarter included a net gain of $4.6 million ($3.0 million after tax), compared to a net loss of $6.1 million ($3.9 million after tax) in the third quarter a year ago, for fair value adjustments as a result of changes in the valuation of financial instruments carried at fair value in accordance with the adoption of Statement of Financial Accounting Standards (SFAS) Nos. 157 and 159. The fair value adjustments in the current quarter predominantly reflect changes in the valuation of trust preferred securities, including pooled trust preferred securities, and junior subordinated debentures, both owned and issued by the Company.

Total other operating income, which includes the changes in the valuation of financial instruments noted above, was $13.4 million in the third quarter, compared to $20.0 million in the preceding quarter and $2.0 million for the same quarter a year ago. For the first nine months of 2009, total other operating income was $38.1 million, compared to $18.9 million in the same period in 2008. Total other operating income from core operations* (excluding fair value adjustments) for the current quarter was $8.8 million, compared to $8.9 million in the preceding quarter and $8.1 million for the same quarter a year ago. For the first nine months of 2009, total other operating income from core operations increased 9% to $25.6 million, compared to $23.4 million in the first nine months of 2008. Income from deposit fees and other service charges increased to $5.7 million in the third quarter of 2009, compared to $5.4 million for the preceding quarter; however, reflecting the reduction in customer transaction volumes in the current economic environment, fees were slightly less than the $5.8 million recorded in the third quarter a year ago despite growth in the number of accounts. Income from mortgage banking operations decreased to $2.1 million in the third quarter compared to $2.9 million in the preceding quarter, but was up substantially from the $1.5 million recorded in the third quarter a year ago.

“The soft economy continued to adversely affect our payment processing business compared to a year ago as activity levels for deposit customers, cardholders and merchants remained subdued; however, we are pleased with the year-over-year growth in our customer base and encouraged by the continuing improvement in activity compared to the very low levels we experienced earlier this year,” said Jones. “We are also pleased that our mortgage banking revenues remained strong and substantially above the levels reported a year ago. Although not as significant as in the first two quarters of the year, the high level of refinancing activity again resulted in accelerated termination of mortgage servicing rights as reflected in the impairment of loan servicing revenues in the third quarter. Amortization and write-off of mortgage servicing rights totaled $415,000 for the third quarter of 2009, compared to $912,000 and $559,000, respectively, in the first and second quarters of this year and $176,000 in the third quarter a year ago.”

“We had another good quarter of managing controllable operating expenses; however, collection and legal costs, including charges related to acquired real estate, remained high,” said Jones. “Compensation, occupancy and other manageable operating expenses have shown steady reductions over the past twelve months as we have made significant progress in improving our core operating efficiency. Unfortunately, compared to a year ago FDIC insurance expense has increased substantially and offset much of this improvement. FDIC insurance charges were $2.2 million and $7.8 million, respectively, for the quarter and nine months ended September 30, 2009, compared to $701,000 and $1.7 million, respectively, for the quarter and nine months ended September 30, 2008. In addition, expenses associated with acquired real estate increased to $2.8 million for the quarter and $5.2 million for the nine months ended September 30, 2009, compared to $758,000 and $1.6 million, respectively, for the same quarter and nine-month period a year earlier. We anticipate collection costs and FDIC insurance premiums will continue to be above historical levels for a number of future quarters.”

Total other operating expenses from core operations* (non-interest expenses excluding the goodwill write-off that occurred during the quarter ended June 30, 2008) were $36.6 million in the third quarter, compared to $36.9 million in the preceding quarter and $34.0 million in the third quarter a year ago. For the first nine months of the year, other operating expenses from core operations were $107.3 million compared to $102.9 million in the first nine months of 2008. Operating expenses from core operations as a percentage of average assets was 3.17% in the third quarter of 2009, compared to 3.27% in the preceding quarter and 2.91% in the third quarter a year ago.

*Earnings information excluding the goodwill impairment charge and fair value adjustments (alternately referred to as total other operating income from core operations, total other operating expenses from core operations, revenues from core operations, or operating expenses from core operations) represent non-GAAP (Generally Accepted Accounting Principles) financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in the Company’s core operations reflected in the current quarter’s and year-to-date’s results. Where applicable, the Company has also presented comparable earnings information using GAAP financial measures.

Balance Sheet Review

Net loans were $3.80 billion at September 30, 2009, compared to $3.94 billion a year earlier. Total assets were $4.79 billion at September 30, 2009, compared to $4.65 billion a year earlier.

“In the third quarter of 2009, commercial and multifamily real estate loan balances increased by $19.6 million while commercial business loans were essentially unchanged compared to the prior quarter end. In addition, agricultural loans experienced an expected seasonal increase of $10.3 million and one-to-four family residential loans increased by $23.4 million,” said Jones. “However, the continued reductions in construction and land development loans resulted in a modest decrease in total loan balances compared to the prior quarter end. Although still slower than historical levels, home sales have improved, contributing to a $205 million reduction in our portfolio of one-to-four family construction loans over the past twelve months, including a $60.0 million decrease in the most recent quarter. As a result, at September 30, 2009 our one-to-four family construction loans totaled $277 million, a decline of $378 million from their peak quarter-end balance of $655 million at June 30, 2007.

Total deposits were $3.86 billion at September 30, 2009, compared to $3.75 billion at the end of the preceding quarter and $3.79 billion a year ago. Non-interest-bearing accounts increased by nearly $39 million during the quarter to $546 million at September 30, 2009, compared to $508 million at June 30, 2009 and $522 million a year ago. Interest-bearing accounts increased by $73 million in the third quarter of 2009 and at quarter end exceeded the year earlier balances by $45 million despite the substantial decrease in public funds and brokered deposits.

“Our retail deposit franchise had another strong quarter and we have now more than replaced all of the public funds and brokered deposits that we have chosen to run off,” said Jones. “Over the past twelve months, we have allowed $253 million in public funds to run off as the new higher collateralization requirements and the shared risk exposure under the Washington and Oregon State requirements have made retaining those deposits less desirable than in the past. In addition, although brokered deposits have never been an important component of our funding, we have reduced brokered deposits by $58 million over the same twelve-month period. We are pleased that we were able to produce this retail deposit growth while also significantly reducing our overall cost of deposits, including another 20 basis point decrease during the third quarter. This strong retail deposit growth, especially in the third quarter, has allowed us to steadily build our short-term liquidity, a key operating goal, and lower our loan-to-deposits ratio towards our long-term goal of 95%.”

“Despite the challenging operating environment, Banner Corporation and its subsidiary banks continue to maintain capital levels significantly in excess of the requirements to be categorized as ‘well-capitalized’ under applicable regulatory standards,” said Jones. Banner Corporation’s Tier 1 leverage capital to average assets ratio was 9.66% and its total capital to risk-weighted assets ratio was 12.54% at September 30, 2009.

Tangible stockholders’ equity at September 30, 2009 was $395.2 million, including $117.0 million attributable to preferred stock, compared to $301.4 million a year ago. Tangible common stockholders’ equity was $278.2 million at September 30, 2009, or 5.82% of tangible assets, compared to $301.4 million, or 6.60% of tangible assets a year earlier. Tangible book value per common share was $14.13 at quarter-end, compared to $18.01 a year earlier. At September 30, 2009, Banner had 19.7 million shares outstanding, while it had 16.7 million shares outstanding a year ago.

“A frequently asked question about us is the date of our bank regulatory examinations. A regularly scheduled regulatory examination of Banner Bank, our lead bank, was conducted in the late third quarter of 2009. We have not yet received a written report of that examination but have had the normal field examiner exit conference and have incorporated the financial-related results of that conference in our third quarter financial results,” concluded Jones.

Conference Call

Banner will host a conference call on Wednesday, October 21, 2009, at 8:00 a.m. PDT, to discuss third quarter 2009 results. The conference call can be accessed live by telephone at 480-629-9723 using access code 4171247 to participate in the call. To listen to the call online, go to the Company’s website at www.bannerbank.com. A replay will be available for a week at (303) 590-3030, using access code 4171247.

About the Company

Banner Corporation is a $4.8 billion bank holding company operating two commercial banks in Washington, Oregon and Idaho. Banner serves the Pacific Northwest region with a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans. Visit Banner Bank on the Web at www.bannerbank.com.

This press release contains statements that the Company believes are “forward-looking statements.” These statements relate to the Company’s financial condition, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements, as they are subject to risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors which could cause actual results to differ materially include, but are not limited to, the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes and other properties and fluctuations in real estate values in our market areas; results of examinations of us by the Board of Governors of the Federal Reserve System and our bank subsidiaries by the Federal Deposit Insurance Corporation, the Washington State Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our reserve for loan losses or to write-down assets; fluctuations in agricultural commodity prices, crop yields and weather conditions; our ability to control operating costs and expenses; our ability to implement our branch expansion strategy; our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we have acquired or may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; our ability to manage loan delinquency rates; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; legislative or regulatory changes that adversely affect our business; adverse changes in the securities markets; inability of key third-party providers to perform their obligations to us; our ability to pay dividends; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board; war or terrorist activities; other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and other risks detailed in Banner’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2008.

 BANR - Third Quarter 2009 Results
 RESULTS OF OPERATIONS
 (in thousands except shares and per share data)

                     Quarters Ended                Nine Months Ended
            ----------------------------------  ----------------------
              Sep 30,     Jun 30,     Sep 30,     Sep 30,    Sep 30,
               2009        2009        2008        2009       2008
            ----------  ----------  ----------  ----------  ----------

 INTEREST
  INCOME:
  Loans
   receiv-
   able     $   56,175  $   55,500  $   64,181  $  168,022  $  196,348
  Mortgage-
   backed
   securi-
   ties          1,422       1,569       1,040       4,792       3,280
  Securi-
   ties and
   cash
   equi-
   valents       1,976       2,089       2,786       6,248       8,374
            ----------  ----------  ----------  ----------  ----------
                59,573      59,158      68,007     179,062     208,002

 INTEREST
  EXPENSE:
  Deposits      20,818      21,638      26,818      65,548      84,446
  Federal
   Home
   Loan Bank
   advances        630         675       1,160       2,025       4,310
  Other
   borrow-
   ings            655         671         734       1,553       1,874
  Junior
   subord-
   inated
   deben-
   tures         1,118       1,249       1,669       3,700       5,399
            ----------  ----------  ----------  ----------  ----------
                23,221      24,233      30,381      72,826      96,029
            ----------  ----------  ----------  ----------  ----------

  Net
   interest
   income
   before
   provision
   for loan
   losses       36,352      34,925      37,626     106,236     111,973

 PROVISION
  FOR LOAN
  LOSSES        25,000      45,000       8,000      92,000      29,500
            ----------  ----------  ----------  ----------  ----------

  Net
   interest
   income
   (loss)       11,352     (10,075)     29,626      14,236      82,473

 OTHER
  OPERATING
  INCOME:
  Deposit
   fees and
   other
   service
   charges       5,705       5,408       5,770      16,049      16,277
  Mortgage
   banking
   opera-
   tions         2,065       2,860       1,500       7,640       4,694
  Loan
   servicing
   fees            282         248         536         260       1,485
  Miscell-
   aneous          768         412         286       1,700         980
            ----------  ----------  ----------  ----------  ----------
                 8,820       8,928       8,092      25,649      23,436
  Increase
   (Decrease)
   in
   valuation
   of fin-
   ancial
   instru-
   ments
   carried
   at fair
   value         4,633      11,049      (6,056)     12,429      (4,584)
            ----------  ----------  ----------  ----------  ----------

  Total
   other
   operating
   income       13,453      19,977       2,036      38,078      18,852

 OTHER
  OPERATING
  EXPENSE:
  Salary
   and
   employee
   benefits     17,379      17,528      18,241      52,508      57,623
  Less
   capital-
   ized
   loan
   origi-
   nation
   costs        (2,060)     (2,834)     (2,040)     (7,010)     (7,009)
  Occupancy
   and
   equipment     5,715       5,928       5,956      17,697      17,813
  Informa-
   tion/
   computer
   data
   services      1,551       1,599       1,560       4,684       5,389
  Payment
   and card
   process-
   ing
   services      1,778       1,555       1,913       4,786       5,212
  Profess-
   ional
   services      1,456       1,183       1,117       3,833       3,203
  Adver-
   tising
   and
   market-
   ing           1,899       2,207       1,572       5,938       4,667
  Deposit
   insurance     2,219       4,102         701       7,818       1,661
  State/
   municipal
   business
   and use
   taxes           558         532         572       1,630       1,712
  Real
   estate
   opera-
   tions         2,799       1,805         758       5,227       1,592
  Miscell-
   aneous        3,335       3,286       3,650      10,202      11,067
            ----------  ----------  ----------  ----------  ----------

                36,629      36,891      34,000     107,313     102,930
  Goodwill
   write-
   off              --          --          --          --      50,000
            ----------  ----------  ----------  ----------  ----------

   Total
    other
    operat-
    ing
    expense     36,629      36,891      34,000     107,313     152,930
            ----------  ----------  ----------  ----------  ----------

   Income
    (Loss)
    before
    pro-
    vision
    (benefit)
    for
    income
    taxes      (11,824)    (26,989)     (2,338)    (54,999)    (51,605)

  PROVISION
   FOR
   (BENEFIT
   FROM)
   INCOME
   TAXES        (5,376)    (10,478)     (1,347)    (22,777)     (2,143)
            ----------  ----------  ----------  ----------  ----------

  NET
   INCOME
   (LOSS)   $   (6,448) $  (16,511) $     (991) $  (32,222) $  (49,462)
            ==========  ==========  ==========  ==========  ==========

  PREFERRED
   STOCK
   DIVIDEND
   AND
   DISCOUNT
   ACCRETION
   Preferred
    stock
    dividend     1,550       1,550          --       4,650          --
   Preferred
    stock
    discount
    accre-
    tion           373         373          --       1,119          --
            ----------  ----------  ----------  ----------  ----------

  NET INCOME
   (LOSS)
   AVAILABLE
   TO
   COMMON
   SHARE-
   HOLDERS  $   (8,371) $  (18,434) $     (991) $  (37,991) $  (49,462)
            ==========  ==========  ==========  ==========  ==========

  Earnings
   (Loss)
   per
   share
   available
   to
   common
   share-
   holder
   Basic    $    (0.44) $    (1.04) $    (0.06) $    (2.11) $    (3.09)
   Diluted  $    (0.44) $    (1.04) $    (0.06) $    (2.11) $    (3.09)

  Cumulative
   dividends
   declared
   per
   common
   share    $     0.01  $     0.01  $     0.05  $     0.03  $     0.45

  Weighted
   average
   common
   shares
   out-
   standing
   Basic    19,022,522  17,746,051  16,402,607  17,982,945  16,025,403
   Diluted  19,022,522  17,746,051  16,402,607  17,982,945  16,025,403

  Common
   shares
   repur-
   chased
   during
   the
   period           --          --          --          --     613,903
  Common
   shares
   issued
   in conn-
   ection
   with
   exercise
   of stock
   options
   or DRIP   1,507,485     780,906     675,186   2,781,905     653,036

 BANR - Third Quarter 2009 Results
 FINANCIAL  CONDITION
 (in thousands except shares and per share data)

                      Sep 30,      Jun 30,       Sep 30,     Dec 31,
                       2009         2009          2008        2008
                    -----------  -----------  -----------  -----------
 ASSETS
 Cash and due
  from banks        $    60,531  $    67,339  $    80,508  $    89,964
 Federal funds and
  interest-bearing
  deposits              270,623       16,919          403       12,786
 Securities -
  at fair value         167,944      167,476      239,009      203,902
 Securities -
  available for sale     74,527       50,980           --       53,272
 Securities - held
  to maturity            76,630       77,321       55,389       59,794
 Federal Home
  Loan Bank stock        37,371       37,371       37,371       37,371
 Loans receivable:
   Held for sale          4,781        8,377        6,085        7,413
   Held for
    portfolio         3,891,413    3,904,704    3,993,094    3,953,995
   Allowance for
    loan losses         (95,183)     (90,694)     (58,846)     (75,197)
                    -----------  -----------  -----------  -----------
                      3,801,011    3,822,387    3,940,333    3,886,211

 Accrued interest
  receivable             20,912       18,892       22,799       21,219
 Real estate owned
  held for sale, net     53,576       56,967       10,147       21,782
 Property and
  equipment, net        104,469      103,709       97,958       97,647
 Goodwill and other
  intangibles, net       11,718       12,365       85,513       13,716
 Bank-owned
  life insurance         54,037       53,341       52,500       52,680
 Other assets            54,659       47,475       28,329       34,024
                    -----------  -----------  -----------  -----------
                    $ 4,788,008  $ 4,532,542  $ 4,650,259  $ 4,584,368
                    ===========  ===========  ===========  ===========

 LIABILITIES
 Deposits:
   Non-interest-
    bearing         $   546,956  $   508,284  $   521,927  $   509,105
   Interest-bearing
    transaction and
    savings
    accounts          1,305,546    1,131,093    1,086,621    1,137,878
   Interest-bearing
    certificates      2,008,673    2,110,466    2,182,318    2,131,867
                    -----------  -----------  -----------  -----------
                      3,861,175    3,749,843    3,790,866    3,778,850

 Advances from
  Federal Home Loan
  Bank at fair value    255,806      115,946      209,243      111,415
 Customer
  repurchase
  agreements and
  other borrowings      174,770      158,249      104,496      145,230
 Junior
  subordinated
  debentures at
  fair value             47,859       49,563      101,358       61,776
 Accrued expenses
  and other
  liabilities            28,715       36,652       44,486       40,600
 Deferred
  compensation           12,960       12,815       12,880       13,149
                    -----------  -----------  -----------  -----------
                      4,381,285    4,123,068    4,263,329    4,151,020

 STOCKHOLDERS'
  EQUITY
 Preferred stock -
  Series A              117,034      116,661           --      115,915
 Common stock           327,385      322,582      306,741      316,740
 Retained earnings
  (accumulated
  deficit)              (36,402)     (27,826)      82,377        2,150
 Other components
  of stockholders'
  equity                 (1,294)      (1,943)      (2,188)      (1,457)
                    -----------  -----------  -----------  -----------
                        406,723      409,474      386,930      433,348
                    -----------  -----------  -----------  -----------
                    $ 4,788,008  $ 4,532,542  $ 4,650,259  $ 4,584,368
                    ===========  ===========  ===========  ===========
 Common Shares
  Issued:
 Shares outstanding
  at end of period   19,933,943   18,426,458   16,980,468   17,152,038
   Less unearned
    ESOP shares at
    end of period       240,381      240,381      240,381      240,381
                    -----------  -----------  -----------  -----------
 Shares outstanding
  at end of period
  excluding
  unearned
  ESOP shares        19,693,562   18,186,077   16,740,087   16,911,657
                    ===========  ===========  ===========  ===========
 Common
  stockholders'
  equity per
  share(1)          $     14.72  $     16.10  $     23.11  $     18.77
 Common
  stockholders'
  tangible equity
  per share(1)(2)   $     14.13  $     15.42  $     18.01  $     17.96
 Tangible common
  stockholders'
  equity to
  tangible
  assets                   5.82%        6.20%        6.60%        6.64%
 Consolidated
  Tier 1
  leverage capital
  ratio                    9.66%        9.90%        8.86%       10.32%

 (1) Calculation is based on number of common shares outstanding at
     the end of the period rather than weighted average shares
     outstanding and excludes unallocated shares in the ESOP.

 (2) Tangible common equity excludes preferred stock, goodwill, core
     deposit and other intangibles.

 BANR - Third Quarter 2009 Results
 ADDITIONAL FINANCIAL INFORMATION
 (dollars in thousands)

                          Sep 30,     Jun 30,     Sep 30,     Dec 31,
                           2009        2009        2008        2008
                        ----------  ----------  ----------  ----------
 LOANS (including
  loans held for sale):
 Commercial real
  estate
   Owner occupied       $  481,698  $  476,922  $  448,972  $  459,446
   Investment
    properties             585,206     572,999     564,947     554,263
 Multifamily real
  estate                   152,832     150,168     141,787     151,274
 Commercial
  construction              83,937      90,762     113,342     104,495
 Multifamily
  construction              62,614      56,968      22,236      33,661
 One- to
  four-family
  construction             277,419     337,368     482,443     420,673
 Land and land
  development
   Residential             346,308     359,994     417,041     424,002
   Commercial               47,182      43,703      64,480      62,128
 Commercial
  business                 678,187     678,273     694,688     679,867
 Agricultural
  business
  including secured
  by farmland              225,603     215,339     213,753     204,142
 One- to
  four-family real
  estate                   676,928     653,513     561,043     599,169
 Consumer                  278,280     277,072     274,447     268,288
                        ----------  ----------  ----------  ----------

  Total loans
   outstanding          $3,896,194  $3,913,081  $3,999,179  $3,961,408
                        ==========  ==========  ==========  ==========

 Restructured loans
  performing under
  their restructured
  terms                 $   55,161  $   55,031  $   15,514  $   23,635
                        ==========  ==========  ==========  ==========

 Loans 30 - 89 days
  past due and on
  accrual               $   21,243  $   34,038  $   18,587  $   61,124
                        ==========  ==========  ==========  ==========
 Total delinquent
  loans (including
  loans on
  non-accrual)          $  264,531  $  259,107  $  137,953  $  248,469
                        ==========  ==========  ==========  ==========

 Total delinquent
  loans / Total
  loans outstanding          6.79%       6.62%       3.45%       6.27%

 GEOGRAPHIC CONCENTRATION OF LOANS AT
  September 30, 2009

            Washington    Oregon      Idaho       Other        Total
            ----------  ----------  ----------  ----------  ----------
 Commercial
  real
  estate
  Owner
   occupied $  380,170  $   59,793  $   41,735  $       --  $  481,698
  Invest-
   ment
   proper-
   ties        423,431     107,090      44,243      10,442     585,206
 Multi-
  family
  real
  estate       127,882      12,823       8,800       3,327     152,832
 Commercial
  construc-
  tion          62,827      13,390       7,720          --      83,937
 Multi-
  family
  construc-
  tion          33,837      28,777          --          --      62,614
 One- to
  four-
  family
  construc-
  tion         133,319     129,552      14,548          --     277,419
 Land and
  land
  develop-
  ment
  Resi-
   dential     170,345     132,624      43,339          --     346,308
  Commercial    30,400      12,127       4,655          --      47,182
 Commercial
  business     483,451      94,828      74,621      25,287     678,187
 Agri-
  cultural
  business
  including
  secured
  by
  farmland     105,119      55,488      64,963          33     225,603
 One- to
  four-
  family
  real
  estate       470,912     169,564      33,205       3,247     676,928
 Consumer      196,305      64,056      17,418         501     278,280
            ----------  ----------  ----------  ----------  ----------

  Total
   loans
   outstand-
   ing      $2,617,998  $  880,112  $  355,247  $   42,837  $3,896,194
            ==========  ==========  ==========  ==========  ==========

  Percent
   of
   total
   loans         67.2%       22.6%        9.1%        1.1%      100.0%

 DETAIL OF LAND AND LAND DEVELOPMENT LOANS AT
   September 30, 2009

            Washington    Oregon       Idaho       Other       Total
            ----------  ----------  ----------  ----------  ----------
 Residential
  Acqui-
   sition &
   develop-
   ment     $   93,883  $   91,781  $   20,236  $       --  $  205,900
  Improved
   lots         53,187      33,431       2,754          --      89,372
  Unimproved
   land         23,275       7,412      20,349          --      51,036
            ----------  ----------  ----------  ----------  ----------

  Total
   resi-
   dential
   land and
   develop-
   ment     $  170,345  $  132,624  $   43,339  $       --  $  346,308
            ==========  ==========  ==========  ==========  ==========
 Commercial
   & indus-
   trial

  Acqui-
   sition &
   develop-
   ment     $    8,975  $       --  $      200  $       --  $    9,175
  Improved
   land          9,906      10,643          --          --      20,549
  Unimproved
   land         11,519       1,484       4,455          --      17,458
            ----------  ----------  ----------  ----------  ----------

  Total
   commer-
   cial
   land and
   develop-
   ment     $   30,400  $   12,127  $    4,655  $       --  $   47,182
            ==========  ==========  ==========  ==========  ==========

 BANR - Third Quarter 2009 Results
 ADDITIONAL FINANCIAL INFORMATION
 (dollars in thousands)

                             Quarters Ended        Nine Months Ended
                     ----------------------------  ------------------
                      Sep 30,   Jun 30,   Sep 30,  Sep 30,    Sep 30,
                       2009      2009      2008      2009      2008
                     --------  --------  --------  --------  --------
 CHANGE IN THE
  ALLOWANCE FOR
  LOAN LOSSES

 Balance, beginning
  of period          $ 90,694  $ 79,724  $ 58,570  $ 75,197  $ 45,827

 Provision             25,000    45,000     8,000    92,000    29,500

 Recoveries of loans
  previously
  charged off:
   Commercial real
    estate                 --        --     1,530        --     1,530
   Multifamily real
    estate                 --        --        --        --        --
   Construction
    and land              299       266        39       617        48
   One- to
    four-family
    real estate            21        89         4       112        44
   Commercial
    business              120       249       130       439       390
   Agricultural
    business,
    including
    secured by
    farmland                6        22       610        28       618
   Consumer               152        32        44       215       126
                     --------  --------  --------  --------  --------
                          598       658     2,357     1,411     2,756
 Loans charged-off:
   Commercial real
    estate                 --        --        --        --        (7)
   Multifamily real
    estate                 --        --        --        --        --
   Construction and
    land              (16,614)  (27,290)   (7,567)  (56,321)  (13,616)
   One- to
    four-family
    real estate          (856)   (1,181)     (220)   (3,128)     (411)
   Commercial
    business           (3,060)   (2,438)   (1,889)   (9,292)   (4,439)
   Agricultural
    business,
    including
    secured by
    farmland               --    (3,186)      (60)   (3,186)      (60)
   Consumer              (579)     (593)     (345)   (1,498)     (704)
                     --------  --------  --------  --------  --------
                      (21,109)  (34,688)  (10,081)  (73,425)  (19,237)
                     --------  --------  --------  --------  --------
   Net charge-offs    (20,511)  (34,030)   (7,724)  (72,014)  (16,481)
                     --------  --------  --------  --------  --------

 Balance, end
  of period          $ 95,183  $ 90,694  $ 58,846  $ 95,183  $ 58,846
                     ========  ========  ========  ========  ========

 Net charge-offs /
  Average loans
  outstanding            0.53%     0.87%     0.19%     1.83%     0.42%

                              Sep 30,  Jun 30,  Sep 30,  Dec 31,
                               2009     2009      2008    2008
                              -------  -------  -------  -------
 ALLOCATION OF
 ALLOWANCE FOR
 LOAN LOSSES

 Specific or allocated
  loss allowance
   Commercial real estate     $ 7,580  $ 5,333  $ 2,789  $ 4,199
   Multifamily real estate         89       83      103       87
   Construction and land       49,829   55,585   21,932   38,253
   One- to four-family
    real estate                 2,304    1,333      511      752
   Commercial business         20,906   19,474   23,085   16,533
   Agricultural business,
    including secured
    by farmland                 1,540    1,323    1,097      530
   Consumer                     1,758    1,540    2,935    1,730
                              -------  -------  -------  -------

     Total allocated           84,006   84,671   52,452   62,084

   Estimated allowance for
    undisbursed commitments     2,202    1,976    1,060    1,108
   Unallocated                  8,975    4,047    5,334   12,005
                              -------  -------  -------  -------

     Total allowance for
      loan losses             $95,183  $90,694  $58,846  $75,197
                              =======  =======  =======  =======

 Allowance for loan losses /
  Total loans outstanding        2.44%    2.32%    1.47%    1.90%

 BANR - Third Quarter 2009 Results
 ADDITIONAL FINANCIAL INFORMATION
 (dollars in thousands)

                             Sep 30,    Jun 30,    Sep 30,    Dec 31,
                               2009      2009       2008       2008
                            ---------  ---------  ---------  ---------

 NON-PERFORMING ASSETS
 Loans on non-accrual status
  Secured by real estate:
   Commercial               $   8,073  $   7,244  $   6,368  $  12,879
   Multifamily                     --         --         --         --
   Construction and land      193,281    180,989     98,108    154,823
   One- to four-family         18,107     15,167      6,583      8,649
  Commercial business          15,070     12,339      6,905      8,617
  Agricultural business,
   including secured by
   farmland                     5,868      7,478        265      1,880
  Consumer                         --        227        427        130
                            ---------  ---------  ---------  ---------
                              240,399    223,444    118,656    186,978

 Loans more than 90 days
  delinquent, still on
  accrual Secured by
  real estate:
   Commercial                      --         --         --         --
   Multifamily                     --         --         --         --
   Construction and land        2,090        603         --         --
   One- to four-family            690        624        635        124
   Commercial business             --        209         --         --
   Agricultural business,
    including secured by
    farmland                       --         --         --         --
   Consumer                       109        189         75        243
                            ---------  ---------  ---------  ---------

                                2,889      1,625        710        367
                            ---------  ---------  ---------  ---------
 Total non-performing
  loans                       243,288    225,069    119,366    187,345
 Securities on
  non-accrual at fair
  value                         1,236         --         --         --
 Real estate owned (REO)
   / Repossessed assets        53,765     57,197     10,153     21,886
                            ---------  ---------  ---------  ---------

  Total non-performing
   assets                   $ 298,289  $ 282,266  $ 129,519  $ 209,231
                            =========  =========  =========  =========

 Total non-performing
  assets / Total assets         6.23%      6.23%      2.79%      4.56%

 DETAIL & GEOGRAPHIC CONCENTRATION OF
  NON-PERFORMING ASSETS AT
   September 30, 2009

            Washington    Oregon       Idaho       Other       Total
            ----------  ----------  ----------  ----------  ----------

 Secured
  by real
  estate:
  Commer-
   cial     $    7,136  $      787  $      150  $       --  $    8,073
  Multi-
   family           --          --          --          --          --
  Construc-
   tion and
   land
   One- to
    four-
    family
    con-
    struc-
    tion        29,562      29,816       9,186          --      68,564
   Resi-
    dential
    land
    acqui-
    sition
    & devel-
    opment      31,480      36,222      10,097          --      77,799
   Resi-
    dential
    land
    improved
    lots        12,068       6,549       1,423          --      20,040
   Resi-
    dential
    land
    unim-
    proved       9,188         421       2,221          --      11,830
   Commer-
    cial
    land
    acqui-
    sition
    & devel-
    opment          --          --          --          --          --
   Commer-
    cial
    land
    improved        --      10,656          --          --      10,656
   Commer-
    cial
    land
    unim-
    proved       4,382          --       2,100          --       6,482
            ----------  ----------  ----------  ----------  ----------
   Total
    con-
    struc-
    tion
    and
    land        86,680      83,664      25,027          --     195,371
  One- to
   four-
   family        9,750       3,055       4,816       1,176      18,797
 Commercial
  business      13,000         631       1,439          --      15,070
 Agri-
  cultural
  business,
  including
  secured
  by
  farmland          --         253       5,615          --       5,868
 Consumer          109          --          --          --         109
            ----------  ----------  ----------  ----------  ----------
 Total non-
  performing
  loans        116,675      88,390      37,047       1,176     243,288
 Securities
  on non-
  accrual           --          --          --       1,236       1,236
 Real
  estate
  owned
  (REO) and
  reposs-
  essed
  assets        40,312       9,025       4,428          --      53,765
            ----------  ----------  ----------  ----------  ----------
   Total
    non-
    per-
    forming
    assets
    at end
    of the
    period  $  156,987  $   97,415  $   41,475  $    2,412  $  298,289
            ==========  ==========  ==========  ==========  ==========

 BANR - Third Quarter 2009 Results
 ADDITIONAL FINANCIAL INFORMATION
 (dollars in thousands)

 DEPOSITS & OTHER
  BORROWINGS
                       Sep 30,      Jun 30,      Sep 30,      Dec 31,
                        2009         2009         2008         2008
                     ----------   ----------   ----------   ----------
 BREAKDOWN OF
  DEPOSITS

 Non-interest-
  bearing            $  546,956   $  508,284   $  521,927   $  509,105
                     ----------   ----------   ----------   ----------

 Interest-bearing
  checking              329,820      312,024      373,496      378,952
 Regular savings
  accounts              521,663      499,447      519,285      474,885
 Money market
  accounts              454,063      319,622      193,840      284,041
                     ----------   ----------   ----------   ----------

   Interest-bearing
    transaction &
    savings
    accounts          1,305,546    1,131,093    1,086,621    1,137,878
                     ----------   ----------   ----------   ----------

 Interest-bearing
  certificates        2,008,673    2,110,466    2,182,318    2,131,867
                     ----------   ----------   ----------   ----------

   Total deposits    $3,861,175   $3,749,843   $3,790,866   $3,778,850
                     ==========   ==========   ==========   ==========

 INCLUDED IN
  TOTAL DEPOSITS

 Public
  transaction
  accounts           $   44,645   $   48,644   $  100,776   $  117,402
 Public interest-
  bearing
  certificates           98,906      134,213      295,432      221,915
                     ----------   ----------   ----------   ----------

   Total public
    deposits         $  143,551   $  182,857   $  396,208   $  339,317
                     ==========   ==========   ==========   ==========

 Total brokered
  deposits           $  186,087   $  247,514   $  243,723   $  268,458
                     ==========   ==========   ==========   ==========

 INCLUDED IN OTHER
  BORROWINGS
 Customer
  repurchase
  agreements /
  "Sweep accounts"   $  124,795   $  108,277   $  103,496   $  145,230
                     ==========   ==========   ==========   ==========

 GEOGRAPHIC CONCENTRATION OF DEPOSITS AT
  September 30, 2009

                     Washington     Oregon       Idaho        Total
                     ----------   ----------   ----------   ----------

                     $2,998,259   $  599,166   $  263,750   $3,861,175
                     ==========   ==========   ==========   ==========

  REGULATORY CAPITAL RATIO AT                        Minimum for
  September 30, 2009                               Capital Adequacy
                            Actual               or "Well Capitalized"
                     -----------------------   -----------------------
                       Amount       Ratio        Amount       Ratio
                     ----------   ----------   ----------   ----------

 Banner Corporation-
  consolidated
   Total capital to
    risk-weighted
    assets           $  491,587        12.54%  $  313,651         8.00%
   Tier 1 capital to
    risk-weighted
    assets              442,009        11.27%     156,826         4.00%
   Tier 1 leverage
    capital to
    average assets      442,009         9.66%     183,122         4.00%

 Banner Bank
   Total capital to
    risk-weighted
    assets              449,907        12.02%     374,243        10.00%
   Tier 1 capital to
    risk-weighted
    assets              402,549        10.76%     224,546         6.00%
   Tier 1 leverage
    capital to
    average assets      402,549         9.18%     219,310         5.00%

 Islanders Bank
   Total capital to
    risk-weighted
    assets               25,899        12.93%      20,028        10.00%
   Tier 1 capital to
    risk-weighted
    assets               24,259        12.11%      12,017         6.00%
   Tier 1 leverage
    capital to
    average assets       24,259        11.31%      10,727         5.00%

 BANR - Third Quarter 2009 Results
 ADDITIONAL FINANCIAL INFORMATION
 (dollars in thousands)
 (rates / ratios annualized)

                                                         Nine
                      Quarters Ended                 Months  Ended
             ---------------------------------  ----------------------
 OPERATING
 PERFORMANCE
               Sep 30,     Jun 30,    Sep 30,     Sep 30,     Sep 30,
                2009        2009       2008        2009        2008
             ----------  ---------  ----------  ----------  ----------
 Average
  loans      $3,905,763  3,925,196  $4,001,999  $3,924,487  $3,917,155
 Average
  securities
  and
  deposits      461,360    394,244     342,153     419,924     330,474
 Average
  non-
  interest-
  earning
  assets        219,780    199,981     296,572     204,414     334,733
             ----------  ---------  ----------  ----------  ----------
  Total
   average
   assets    $4,586,903  4,519,421  $4,640,724  $4,548,825  $4,582,362
             ==========  =========  ==========  ==========  ==========

 Average
  deposits   $3,821,065  3,679,653  $3,810,718  $3,731,782  $3,712,530
 Average
  borrow-
  ings          377,976    429,708     415,517     408,111     415,453
 Average
  non-
  interest-
  bearing
  lia-
  bilities     (25,527)   (18,421)     25,506     (17,357)     31,967
             ----------  ---------  ----------  ----------  ----------
  Total
   average
   lia-
   bilities   4,173,514  4,090,940   4,251,741   4,122,536   4,159,950

 Total
  average
  stock-
  holders'
  equity        413,389    428,481     388,983     426,289     422,412
             ----------  ---------  ----------  ----------  ----------
  Total
   average
   lia-
   bilities
   and
   equity
             $4,586,903  4,519,421  $4,640,724  $4,548,825  $4,582,362
             ==========  =========  ==========  ==========  ==========

 Interest
  rate
  yield on
  loans            5.71%      5.67%       6.38%       5.72%       6.70%
 Interest
  rate
  yield on
  securities
  and
  deposits         2.92%      3.72%       4.45%       3.52%       4.71%
             ----------  ---------  ----------  ----------  ----------

  Interest
   rate
   yield
   on
   interest-
   earning
   assets         5.41%      5.49%       6.23%       5.51%       6.54%
             ----------  ---------  ----------  ----------  ----------

 Interest
  rate
  expense
  on
  deposits         2.16%      2.36%       2.80%       2.35%       3.04%
 Interest
  rate
  expense
  on
  borrowings       2.52%      2.42%       3.41%       2.38%       3.72%
             ----------  ---------  ----------  ----------  ----------

  Interest
   rate
   expense
   on
   interest-
   bearing
   lia-
   bilities        2.19%      2.37%       2.86%       2.35%       3.11%
             ----------  ---------  ----------  ----------  ----------

 Interest
  rate
  spread           3.22%      3.12%       3.37%       3.16%       3.43%
             ==========  =========  ==========  ==========  ==========

 Net
  interest
  margin           3.30%      3.24%       3.45%       3.27%       3.52%
             ==========  =========  ==========  ==========  ==========

 Other
  operating
  income /
  Average
  assets           1.16%      1.77%       0.17%       1.12%       0.55%

 Other
  operating
  income
  (loss)
  EXCLUDING
  change
  in
  valuation
  of
  financial
  instruments
  carried
  at fair
  value /
  Average
  assets(1)        0.76%      0.79%       0.69%       0.75%       0.68%

 Other
  operating
  expense /
  Average
  assets           3.17%      3.27%       2.91%       3.15%       4.46%

 Other
  operating
  expense
  EXCLUDING
  goodwill
  write-
  off /
  Average
  assets(1)        3.17%      3.27%       2.91%       3.15%       3.00%

 Efficiency
  ratio
  (other
   operating
  expense /
  revenue)        73.54%     67.19%      85.72%      74.36%     116.90%

 Return
  (Loss)
  on
  average
  assets          (0.56%)    (1.47%)     (0.08%)     (0.95%)     (1.44%)

 Return
  (Loss)
  on
  average
  equity          (6.19%)   (15.46%)     (1.01%)    (10.11%)    (15.64%)

 Return
  (Loss)
   on
  average
  tangible
  equity(2)       (6.37%)   (15.93%)     (1.30%)    (10.42%)    (21.82%)

 Average
  equity /
  Average
  assets           9.01%      9.48%       8.38%       9.37%       9.22%

 (1) Earnings information excluding the fair value adjustments and
     goodwill impairment charge (alternately referred to as operating
     income (loss) from core operations and expenses from core
     operations) represent non-GAAP (Generally Accepted Accounting
     Principles) financial measures.

 (2) Average tangible equity excludes goodwill, core deposit and other
     intangibles.

HMN Financial, Inc. (HMNF) Announces Third Quarter Results

Oct. 20, 2009 (Business Wire) — HMN Financial, Inc. (NASDAQ:HMNF):

Third Quarter Highlights

• Net income of $881,000 compared to net loss of $7.1 million in third quarter of 2008
• Diluted earnings per share of $0.12 compared to diluted loss per share of $1.93 in third quarter of 2008
• Provision for loan losses down $12.4 million from third quarter of 2008
• Net interest margin of 3.46%, up 25 basis points from third quarter of 2008
• Nonperforming assets of $77.2 million, down $2.3 million from second quarter of 2009

Year to Date Highlights

• Net loss of $10.9 million compared to net loss of $7.6 million in the first nine months of 2008
• Diluted loss per share of $3.32 compared to diluted loss per share of $2.08 in the first nine months of 2008
• Provision for loan losses up $4.8 million over first nine months of 2008
• Net interest margin of 3.35%, up 14 basis points from first nine months of 2008
• Nonperforming assets of $77.2 million, up $2.4 million in the first nine months of 2009
• Total assets decreased $113 million in first nine months of 2009

HMN Financial, Inc. (HMN or the Company) (NASDAQ:HMNF), the $1.0 billion holding company for Home Federal Savings Bank (the Bank), today reported net income of $881,000 for the third quarter of 2009, a $7.9 million change from a net loss of $7.1 million for the third quarter of 2008. Net income available to common shareholders for the third quarter of 2009 was $443,000, a change of $7.5 million, from a net loss available to common shareholders of $7.1 million for the third quarter of 2008. Diluted earnings per common share for the third quarter of 2009 were $0.12, up $2.05 from the diluted loss per share of $1.93 for the third quarter of 2008. The increase in net income for the third quarter of 2009 is due primarily to a $12.4 million decrease in the loan loss provision between the periods. The provision decreased primarily because of the $12.0 million provision and related charge-off recorded in the third quarter of 2008 due to apparently fraudulent activity on a commercial loan.

President’s Statement

“We are pleased to report positive earnings for the third quarter of 2009” said Bradley Krehbiel, Principal Executive Officer of HMN. “While the economic environment for commercial real estate continues to be challenging, we are encouraged by some recent sales and renewed interest in some of our non-performing real estate. We continue to focus our efforts on reducing non-performing assets, reducing industry loan concentrations, increasing our core retail and commercial deposit relationships and reducing expenses. We believe that, over time, our focus on these areas will be effective in generating improved financial results. In the meantime, Home Federal Savings Bank continues to have adequate available liquidity and its capital position remains above the levels required for it to be considered a well capitalized financial institution by regulatory standards.”

Third Quarter Results

Net Interest Income

Net interest income was $8.6 million for the third quarter of 2009, the same as for the third quarter of 2008. Interest income was $14.3 million for the third quarter of 2009, a decrease of $2.1 million, or 12.5%, from $16.4 million for the same period in 2008. Interest income decreased primarily because of a decrease in the average yields earned on loans and investments. The decreased average yields were the result of the 175 basis point decrease in the prime interest rate between the periods. Decreases in the prime rate, which is the rate that banks charge their prime business customers, generally decrease the rates on adjustable rate consumer and commercial loans in the portfolio and on new loans originated. Interest income was also adversely affected by the increase in non-performing loans between the periods. The average yield earned on interest-earning assets was 5.77% for the third quarter of 2009, a decrease of 37 basis points from the 6.14% average yield for the third quarter of 2008.

Interest expense was $5.7 million for the third quarter of 2009, a decrease of $2.1 million, or 26.5%, compared to $7.8 million for the third quarter of 2008. Interest expense decreased primarily because of the lower interest rates paid on money market accounts and certificates of deposits. The decreased rates were the result of the 175 basis point decrease in the federal funds rate that occurred between the periods and the 225 basis point decrease that occurred in the first nine months of 2008. Decreases in the federal funds rate, which is the rate that banks charge other banks for short term loans, generally have a lagging effect and decrease the rates banks pay for deposits. The lagging effect of deposit rate changes is primarily due to the Bank’s deposits that are in the form of certificates of deposit which do not reprice immediately when the federal funds rate changes. The average interest rate paid on interest bearing liabilities was 2.43% for the third quarter of 2009, a decrease of 69 basis points from the 3.12% average rate paid in the third quarter of 2008. Net interest margin (net interest income divided by average interest earning assets) for the third quarter of 2009 was 3.46%, an increase of 25 basis points, compared to 3.21% for the third quarter of 2008.

Provision for Loan Losses

The provision for loan losses was $3.4 million for the third quarter of 2009, a decrease of $12.4 million, compared to $15.8 million for the third quarter of 2008. The provision decreased primarily because of the $12.0 million provision and related charge-off recorded in the third quarter of 2008 due to apparently fraudulent activity on a commercial loan. The loan loss provision for the third quarter of 2009 includes $3.2 million related to a commercial loan that was charged off during the quarter because the collateral supporting the loan was determined to be inadequate due to the apparently fraudulent activity of the borrower. Total non-performing assets were $77.2 million at September 30, 2009, a decrease of $2.3 million, or 2.8%, from $79.5 million at June 30, 2009. Non-performing loans decreased $1.0 million and foreclosed and repossessed assets decreased $1.3 million during the third quarter. The non-performing loan and foreclosed and repossessed asset activity for the quarter was as follows:

The following table summarizes the amounts and categories of non-performing assets in the Bank’s portfolio and loan delinquency information as of the end of the two most recently completed quarters and December 31, 2008.

(1) Excludes non-accrual loans.

The following table summarizes the number and types of commercial real estate loans (the largest category of non-performing loans) that were non-performing as of the end of the two most recently completed quarters and December 31, 2008.

Non-Interest Income and Expense

Non-interest income was $1.9 million for the third quarter of 2009, a decrease of $156,000, or 7.7%, from $2.0 million for the same period in 2008. Securities gains decreased $479,000 as a result of decreased investment sales. Fees and service charges decreased $129,000 between the periods primarily because of decreased service charges and overdraft fees. Gains on sales of loans increased $435,000 due to an increase in the single-family mortgage loans that were sold. Mortgage servicing fees increased $22,000 because of an increase in the single-family mortgage loans being serviced between the periods as more loans were sold with the servicing rights retained.

Non-interest expense was $6.0 million for the third quarter of 2009, a decrease of $611,000, or 9.2%, from $6.6 million for the same period of 2008. Losses (gains) on real estate owned changed from $0 in the third quarter of 2008 to a gain of $357,000 in the third quarter of 2009 primarily because the gains recognized on the sale of two commercial real estate properties exceeded the loss recognized on a residential development that was written down due to a decrease in the estimated value. Data processing costs decreased $187,000 primarily because of decreases in third party vendor charges for internet and other banking services as a result of the system conversion that occurred in the fourth quarter of 2008. Occupancy expense decreased $161,000 primarily because of a decrease in depreciation expense and non-capitalized software and equipment purchases. Other non-interest expenses decreased $61,000 primarily because the increased FDIC deposit insurance assessments and other real estate expenses in the third quarter of 2009 were less than the litigation settlement expense recorded in the third quarter of 2008. Amortization of mortgage servicing rights decreased $21,000 due to a decrease in the prepayments between the periods of single-family mortgage loans being serviced. Compensation expense increased $170,000 between the periods primarily because of an increase in the number of employees in the mortgage, commercial and computer operations areas of the Bank.

The effect of income taxes changed $5.0 million between the periods from a benefit of $4.8 million in the third quarter of 2008 to an expense of $0.2 million in the third quarter of 2009. The change was due to an increase in taxable income and an effective tax rate that decreased from 40.4% in the third quarter of 2008 to 16.6% in the third quarter of 2009. In the third quarter of 2009, the Company recorded a tax adjustment that reduced income tax expense $264,000. This adjustment was related to an immaterial correction of the previously recorded second quarter income tax expense. Excluding this adjustment, the effective tax rate would have been 41.6% for the third quarter of 2009.

Return on Assets and Equity

Return on average assets for the third quarter of 2009 was 0.34%, compared to (2.54%) for the third quarter of 2008. Return on average equity was 3.52% for the third quarter of 2009, compared to (29.14%) for the same period of 2008. Book value per common share at September 30, 2009 was $18.09, compared to $20.77 at September 30, 2008.

Nine Month Period Results

Net Income (Loss)

The net loss was $10.9 million for the nine-month period ended September 30, 2009, an increased loss of $3.3 million, from the $7.6 million loss for the nine month period ended September 30, 2008. The net loss available to common shareholders was $12.3 million for the nine month period ended September 30, 2009, an increased loss of $4.7 million, from the net loss available to common shareholders of $7.6 million for the same period of 2008. Diluted loss per common share for the nine month period in 2009 was $3.32, an increased loss of $1.24, from the diluted loss per share of $2.08 for the same period in 2008. The increase in net loss for the first nine months of 2009 is primarily due to a $4.8 million increase in the loan loss provision between the periods as a result of increased commercial loan charge offs.

Net Interest Income

Net interest income was $25.9 million for the first nine months of 2009, an increase of $0.5 million, or 1.7%, from $25.4 million for the same period in 2008. Interest income was $44.5 million for the nine-month period ended September 30, 2009, a decrease of $5.9 million, or 11.8%, from $50.4 million for the same period in 2008. Interest income decreased primarily because of a decrease in the average yields earned on loans and investments. The decreased average yields were the result of the 175 basis point decrease in the prime interest rate between the periods. Decreases in the prime rate generally decrease the rates on adjustable rate consumer and commercial loans in the portfolio and on new loans originated. Interest income was also adversely affected by the increase in non-performing loans between the periods. The average yield earned on interest-earning assets was 5.75% for the first nine months of 2009, a decrease of 62 basis points from the 6.37% average yield for the same period of 2008.

Interest expense was $18.6 million for the nine-month period ended September 30, 2009, a decrease of $6.4 million, or 25.5%, from $25.0 million for the same period in 2008. Interest expense decreased primarily because of the lower interest rates paid on money market accounts and certificates of deposits. The decreased rates were the result of the 175 basis point decrease in the federal funds rate that occurred between the periods and the 225 basis point decrease that occurred in the first nine months of 2008. Decreases in the federal funds rate generally have a lagging effect and decrease the rates banks pay for deposits. The lagging effect of deposit rate changes is because many of the Bank’s deposits are in the form of certificates of deposit which do not reprice immediately when the federal funds rate changes. The average interest rate paid on interest bearing liabilities was 2.55% for the first nine months of 2009, a decrease of 83 basis points from the 3.38% average rate paid in the same period of 2008. Net interest margin (net interest income divided by average interest earning assets) for the first nine months of 2009 was 3.35%, an increase of 14 basis points, compared to 3.21% for the first nine months of 2008.

Provision for Loan Losses

The provision for loan losses was $23.3 million for the first nine-months of 2009, an increase of $4.8 million, from $18.5 million for the same nine-month period in 2008. The provision for loan losses increased primarily as the result of an increase in the loan loss allowance recorded for specific commercial real estate loans due to decreases in the estimated value of the underlying collateral supporting the loans. An additional provision for loan losses of $2.9 million was recorded on two non-performing residential development loans and a $3.0 million provision for loan losses was established on two alternative fuel plants based on updated appraised values during the first nine months of 2009. An analysis of the loan portfolio during the first nine months of the year resulted in a $2.7 million increase in the loan loss provision for other risk rated loans. The loan loss provision for the first nine months of 2009 also includes a $6.9 million increase related to two unrelated commercial loans that were charged off after it was determined that the collateral supporting the loans was inadequate due to the apparently fraudulent actions of the respective borrowers. The loan loss provision for the first nine months of 2008 included a $12.0 million provision and related charge off due to apparently fraudulent activity on a commercial loan. Total non-performing assets were $77.2 million at September 30, 2009, an increase of $2.4 million, or 3.3%, from $74.8 million at December 31, 2008. Non-performing loans decreased $2.5 million and foreclosed and repossessed assets increased $4.9 million during the nine month period. The non-performing loan and foreclosed and repossessed asset activity for the first nine months of 2009 was as follows:

A rollforward of the Company’s allowance for loan losses for the nine-month periods ended September 30, 2009 and 2008 follows:

Non-Interest Income and Expense

Non-interest income was $6.0 million for the first nine months of 2009, an increase of $529,000, or 9.7%, from $5.5 million for the same period in 2008. Gains on sales of loans increased $1.4 million between the periods primarily because of an increase in sales of single family mortgages between the periods. Mortgage servicing fees increased $48,000 between the periods due to an increase in the single-family mortgage loans being serviced. Security gains decreased $474,000 due to decreased investment sales. Other income decreased $418,000 primarily as a result of decreased commissions on the sale of uninsured investment products. Fees and service charges decreased $43,000 between the periods primarily because of decreased service charges and overdraft fees.

Non-interest expense was $25.1 million for the first nine months of 2009, an increase of $2.2 million, or 9.7%, from $22.9 million for the same period in 2008. Losses on real estate owned increased $3.8 million between the periods primarily because the losses recognized on three residential developments caused by a decrease in their estimated value exceeded the gains recognized on the sale of two commercial real estate properties. Other non-interest expenses increased $2.1 million primarily because of a $1.0 million increase in Federal Deposit Insurance Corporation (FDIC) insurance premiums, $557,000 increase in costs related to other real estate, $461,000 increase for interest expense on a pending state tax assessment as a result of an unfavorable tax court ruling and $155,000 increase in legal fees primarily related to the ongoing state tax assessment challenge. Compensation expense increased $907,000 between the periods primarily because of additional staffing in the mortgage, commercial and computer operations areas and costs associated with the employment agreement of a former executive officer. These increases were offset by a $3.8 million decrease in goodwill impairment charges between the periods. Data processing costs decreased $435,000 primarily because of decreases in third party vendor charges for internet and other banking services as a result of the system conversion that occurred in the fourth quarter of 2008. Occupancy expense decreased $353,000 primarily because of a decrease in depreciation expense and non-capitalized software and equipment purchases. Amortization of mortgage servicing rights decreased $25,000 due to a decrease in the prepayments between the periods of single-family mortgage loans being serviced.

The effect of income taxes changed $2.6 million between the periods from a benefit of $2.9 million for the nine month period ended September 30, 2008 to a benefit of $5.5 million for the nine month period ended September 30, 2009. The change was due to an increase in taxable loss and an effective tax rate that decreased from 42.9% in the first nine months of 2008, excluding the goodwill impairment charge, to 33.5% for the first nine months of 2009. The goodwill impairment charge recorded in the first nine months of 2008 was not tax deductible and therefore no tax benefit was realized related to the impairment charge. In the first nine months of 2009, the Company recorded additional income tax expense of $1.0 million, which was a reduction of the overall tax benefit, as a result of an unfavorable tax court ruling related to the tax treatment of the inter-company dividends paid to the Bank by a former subsidiary in prior tax years. Excluding this adjustment, the effective tax rate would have been 39.6% for the first nine months of 2009.

Return on Assets and Equity

Return on average assets for the nine-month period ended September 30, 2009 was (1.34%), compared to (0.92%) for the same period in 2008. Return on average equity was (13.79%) for the nine-month period ended September 30, 2009, compared to (10.36%) for the same period in 2008.

General Information

HMN Financial, Inc. and Home Federal Savings Bank are headquartered in Rochester, Minnesota. The Bank operates ten full service offices in southern Minnesota located in Albert Lea, Austin, Eagan, LaCrescent, Rochester, Spring Valley and Winona and two full service offices in Iowa located in Marshalltown and Toledo. Home Federal Private Banking operates branches in Edina and Rochester, Minnesota. Home Federal Savings Bank also operates loan origination offices located in Rochester, Minnesota and Sartell, Minnesota.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding adequate available liquidity, reducing non-performing assets, reducing industry loan concentrations, increasing core retail and commercial deposit relationships, reducing expenses and generating improved financial results. These statements are often identified by such forward-looking terminology as “expect,” “intent,” “look,” “believe,” “anticipate,” “estimate,” “project,” “seek,” “may,” “will,” “would,” “could,” “should,” “trend,” “target,” and “goal” or similar statements or variations of such terms. A number of factors could cause actual results to differ materially from the Company’s assumptions and expectations. These include but are not limited to the adequacy and marketability of real estate securing loans to borrowers, possible legislative and regulatory changes and adverse economic, business and competitive developments such as shrinking interest margins; reduced collateral values; deposit outflows; reduced demand for financial services and loan products; changes in accounting policies and guidelines, or monetary and fiscal policies of the federal government or tax laws; international economic developments, changes in credit or other risks posed by the Company’s loan and investment portfolios; technological, computer-related or operational difficulties; adverse changes in securities markets; results of litigation; the Company’s use of the proceeds from the sale of securities to the U.S. Treasury Department or other significant uncertainties. Additional factors that may cause actual results to differ from the Company’s assumptions and expectations include those set forth in the Company’s most recent filings on Form 10-K and Form 10-Q with the Securities and Exchange Commission. All forward-looking statements are qualified by, and should be considered in conjunction with, such cautionary statements.

Cascade Financial (CASB) Earns $1.6 Million in Third Quarter; Reports Strong Checking Deposit Growth

Cascade Financial Corporation (Nasdaq:CASB), parent company of Cascade Bank, today reported net income of $1.6 million for the third quarter of 2009. After adjustments for the preferred stock dividend and accretion of the issuance discount on the U.S. Treasury preferred stock, the Bank earned $1.0 million, or $0.09 per diluted share, in the third quarter of 2009, compared to a net loss of $6.6 million, or $0.55 per diluted share, in the third quarter a year ago. Dividends on preferred stock issued to the U.S. Treasury under the Capital Purchase Program for the quarter totaled $487,125, and the accretion of the issuance discount on preferred stock for the quarter was $105,000. In the third quarter last year, Cascade recorded an Other Than Temporary Impairment (OTTI) charge of $17.3 million on Fannie Mae and Freddie Mac preferred shares after the U.S. Government placed these companies into conservatorship. Excluding the OTTI charge, third quarter 2008 net income would have been $4.7 million.

“Cascade posted a solid quarter, returning to profitability with record checking deposit growth, controlled operating costs and a stable net interest margin, in spite of the drag of nonperforming loans,” stated Carol K. Nelson, President and CEO. “Checking deposits were up 89% year-over-year and 14% from the prior quarter, and the net interest margin expanded slightly from the previous quarter as core deposit growth helped lower our cost of funds. We continue to operate in a challenging lending environment and are taking every opportunity to strengthen our capital levels and have increased our total risk based capital to 13.01% from 12.62% in the second quarter.”

 3Q09 Highlights:  (compared to 3Q08)

 * Net income of $1.6 million, with income available to common
   shareholders of $1.0 million, or $0.09 per diluted common share
 * Compensation expense down 11% in spite of adding one new branch
 * Deposit mix improved with total checking account balances
   representing 32% of total deposits versus 17%
 * Total checking account balances increased 89%
   * Personal checking account balances grew 119%
   * Business checking account balances grew 56%
 * Loan portfolio mix improved with a 29% reduction in real estate
   construction loans
 * Total allowance for loan losses to total loans increased to
   2.02%, up from 1.21%
 * Tier 1 capital ratio improved to 9.05% from 7.87%
 * Risk weighted capital ratio increased to 13.01% from 10.40%

Year to date, Cascade reported a net loss of $24.6 million, and a loss attributable to common stockholders of $26.4 million, or $2.18 per diluted share, compared to a net loss of $372,000 for the first nine months of 2008. During the second quarter of 2009, Cascade recorded an impairment charge of $11.7 million against its goodwill based upon an impairment analysis. The non-cash goodwill impairment charge represented the write-off of a portion of the goodwill recorded from a prior bank acquisition. The goodwill charge does not impact liquidity, operations, tangible capital or the Corporation’s regulatory capital ratios. The loan loss provision for the first nine months of 2009 was $36.2 million versus $4.8 million in the first nine months of 2008.

Credit Quality

“Asset quality trends are beginning to show signs of stabilization,” said Rob Disotell, Chief Credit Officer. “During the third quarter, Cascade had lower charge-offs, which have moderated after we aggressively wrote down the value of loans during the first half of 2009. Additionally, the pace of nonperforming loan growth has slowed. While Nonperforming Loans (NPLs) were up $11.2 million, Real Estate Owned (REO) and other repossessed assets were down $905,000 compared to the previous quarter.”

Nonperforming loans increased during the quarter to $125.7 million, or 10.21% of total loans, at September 30, 2009, compared to $114.4 million or 9.33% of total loans three months earlier.

The following table shows nonperforming loans versus total loans in each category:

                                                 Nonper
                                    Balance at   -forming   NPL as a %
 LOAN PORTFOLIO ($ in 000's)         9/30/2009  Loans (NPL)  of Loans
 ---------------------------        ----------  ----------  ----------
 Business                           $  473,546  $    8,624          2%
 R/E construction
  Spec construction                     70,325      17,760         25%
  Land acquisition and development     129,345      56,835         44%
  Land                                  35,416      19,679         56%
  Multifamily and
   custom construction                  17,594          --          0%
  Commercial construction               32,208       6,364         20%
                                    ----------  ----------
 Total R/E construction                284,888     100,638         35%
 Commercial R/E                        193,652      13,459          7%
 Multifamily                            84,029       2,100          2%
 Home equity/consumer                   31,455         458          1%
 Residential                           163,151         408          0%
                                    ----------  ----------
 Total                              $1,230,721  $  125,687         10%
                                    ==========  ==========

“During the quarter we saw good migration of nonperforming loans through the loan portfolio,” added Disotell. While $20.9 million in loans were placed on nonaccrual status, $6.0 million were paid off during the quarter, and $3.4 million were charged off. Additions to nonperforming loans were centered in:

 * $8.1 million in loans to one business banking client secured by
   real estate
 * $6.4 million in commercial real estate construction loans on a
   retail building
 * $2.6 million in advances on existing spec construction loans to
   fund the completion of single family homes, with over
   $4.1 million in paydowns during the quarter
 * $1.9 million in net additions to multifamily loans

 Paydowns on loans on nonaccrual status during the quarter were
 centered in:
 * $4.1 million in spec construction loans through the sale of
   completed homes
 * $1.9 million in land acquisition and development through the
   sale of completed homes

Net additions to nonaccrual loans were $11.2 million for the quarter.

The following table shows the migration of nonperforming loans through the portfolio in each category: (9/30/09 compared to 6/30/09)

 NONPER
  -FORMING
  LOANS     Balance   Additions Paydowns Charge-offs           Balance
 ($ in         at      during    during    during  Transfers     at
  000's)   9/30/2009   quarter   quarter   quarter   to REO  6/30/2009
 -------------------  --------  --------  --------  --------  --------
 Business   $  8,624  $  8,098  $    (24) $     --  $     --  $    550
 R/E
  construc
  -tion
  Spec
   construc
   -tion      17,760     2,640    (4,138)     (986)       --    20,244
  Land
   acqui
   -sition
   and
   develop
   -ment      56,835        --    (1,870)   (1,140)     (239)   60,084
  Land        19,679       788        --    (1,204)       --    20,095
  Commercial
   R/E         6,364     6,364        --        --        --        --
            --------  --------  --------  --------  --------  --------
 Total R/E
  construc
  -tion      100,638     9,792    (6,008)   (3,330)     (239)  100,423
 Commercial
  R/E         13,459       724        --        --        --    12,735
 Multifamily   2,100     1,850        --        --        --       250
 Home equity
  /consumer      458       307        --       (55)      (10)      216
 Residential     408       140        (7)       --        --       275
            --------  --------  --------  --------  --------  --------
 Total      $125,687  $ 20,911  $ (6,039) $ (3,385) $   (249) $114,449
            ========  ========  ========  ========  ========  ========

“Despite increased levels of home sales in the Puget Sound Region in recent months, the housing market remains fragile and continues to present challenges,” said Disotell. “We continue to build our allowance for loan losses with a year-to-date provision expense of $36.2 million compared to net charge-offs of $27.2 million and a third quarter provision expense of $4.0 million compared to net charge-offs of $3.4 million.” Net charge-offs were $18.5 million in the preceding quarter and $43,000 in the third quarter a year ago. At September 30, 2009, REO and other repossessed assets decreased to $7.0 million from $7.9 million at June 30, 2009.

The following table shows the change in REO and other repossessed assets during the quarter:

 REO and other repossessed assets ($ in 000's)
 ---------------------------------------------
 Balance at 6/30/09                                 $  7,872
 Additions                                               457
 Sales                                                (1,293)
 Write-downs                                              --
 Loss on sales                                           (69)
                                                    --------
 Balance at 9/30/09                                 $  6,967
                                                    ========

Nonperforming assets were 8.05% of total assets at September 30, 2009, compared to 7.59% at the end of the preceding quarter, and 1.10% a year ago. The total allowance for loan losses, which includes the $75,000 allowance for off-balance sheet loan commitments, was $24.8 million at quarter-end, equal to 2.02% of total loans compared to 2.00% at June 30, 2009, and 1.21% as of September 30, 2008.

Loans delinquent 31-90 days totaled $1.1 million, or 0.09% of total loans at September 30, 2009, compared to $23.7 million, or 1.93% of total loans at June 30, 2009 and $171,000, or 0.01% of total loans at September 30, 2008. The bank had seven loans totaling $2.5 million that were 90 days or more past due and still accruing interest at September 30, 2009.

Loan Portfolio

“The modest increase in total loans was attributed to our builder loan program,” said Lars Johnson, Chief Financial Officer. “We continue to be reticent to lend on construction projects and commercial real estate in this economic environment.” Total loans increased 1%, or $17.7 million, on a year-over-year basis to $1.23 billion as of September 30, 2009. Total loans, however, remained relatively unchanged from the end of the previous quarter as Cascade further reduced its real estate construction concentrations.

The following table shows the changes in the loan portfolio in each category: (9/30/09 compared to 6/30/09 and 9/30/08)

                         Sept. 30,   June 30,    Sept. 30,   One Year
 LOANS ($ in 000's)        2009        2009        2008       Change
 Business               $  473,546  $  467,923   $ 473,213          0%
 R/E construction          284,888     296,931     403,569        -29%
 Commercial R/E            193,652     192,886     119,787         62%
 Multifamily                84,029      91,554      74,535         13%
 Home equity/consumer       31,455      30,919      29,659          6%
 Residential               163,151     146,231     112,283         45%
                        ----------  ----------  ----------
 Total loans            $1,230,721  $1,226,444  $1,213,046          1%
                        ==========  ==========  ==========

Construction loans outstanding decreased 29% to $285 million at September 30, 2009, compared to $404 million a year ago. Commercial real estate loans increased 62% from year ago levels to $194 million, which includes $66.0 million in loans reclassified into that category as construction projects were completed and hit their lease up targets. Multifamily loans increased 13% from year ago levels to $84.0 million and business loans were unchanged compared to a year ago at $474 million. Home equity and consumer loans increased 6% to $31.5 million, while residential loans grew 45% to $163 million, compared to a year ago.

Further details on changes during the third quarter are as follows:

                                     Net new
                        Balance at    loans-   Reclassifi-   Transfers
 LOANS ($ in 000's)      9/30/2009   payments    cations      to REO
 ------------------     ----------  ----------  ----------  ----------
 Business               $  473,546  $    5,623  $       --  $       --
 R/E construction          284,888      (6,128)     (2,346)       (239)
 Commercial R/E            193,652       1,326        (560)         --
 Multifamily                84,029      (7,525)         --          --
 Home equity/consumer       31,455         601          --         (10)
 Residential               163,151      14,014       2,906          --
                        ----------  ----------  ----------  ----------
 Total loans             1,230,721       7,911          --        (249)
 Deferred loan fees         (3,204)         94        (370)         --
 Allowance for
  loan losses              (24,749)     (4,000)        373          --
                        ----------  ----------  ----------  ----------
 Loans, net             $1,202,768  $    4,005  $        3  $     (249)
                        ==========  ==========  ==========  ==========

                                    Charge-offs Balance at
 LOANS ($ in 000's)                     (1)      6/30/2009     Change
 ------------------                 ----------  ----------  ----------
 Business                           $       --  $  467,923          1%
 R/E construction                       (3,330)    296,931         -4%
 Commercial R/E                             --     192,886          0%
 Multifamily                                --      91,554         -8%
 Home equity/consumer                      (55)     30,919          2%
 Residential                                --     146,231         12%
                                    ----------  ----------
 Total loans                            (3,385)  1,226,444          0%
 Deferred loan fees                         --      (2,928)         9%
 Allowance for loan losses               3,368     (24,490)         1%
                                    ----------  ----------
 Loans, net                         $      (17) $1,199,026          0%
                                    ==========  ==========

 (1) Excludes negative now accounts totaling $61,000 and recoveries
     of $78,000

Investment Portfolio and Liquidity

Total assets increased by $36.3 million, or 2%, in the third quarter from the end of the second quarter and grew by $95.2 million, or 6%, year-over-year to $1.65 billion at September 30, 2009. The increase in interest-bearing deposits was $43.4 million on a sequential basis and $69.2 million on a year-over-year comparison. The investment portfolio increased $2.9 million over the preceding quarter and $26.1 million over the past twelve months to $281 million at September 30, 2009. “The mix of Available For Sale (AFS) securities compared to Held To Maturity (HTM) securities continued to shift as HTM securities have been called and replaced with securities designated as AFS,” added Johnson. “The primary motivation for this shift is to provide more flexibility in managing the securities portfolio.” All debt securities held in the investment portfolio are rated AAA.

Deposit Growth

Total deposits were up $31.4 million, or 3% from the prior quarter-end and up $40.2 million, or 4% compared to a year ago. Total checking account balances were up $41.0 million, or 14% from the prior quarter and up $154 million, or 89% compared to a year ago. Personal checking account balances grew by 119% or $108 million over the last twelve months and business checking balances grew 56% or $46.4 million during the same time period. “The robust growth in core deposits over the past twelve months has lowered our funding costs and demonstrates the effectiveness of our strong sales culture as well as continued success of the High Performance Checking Program,” said Nelson. The growth in business checking balances resulted from a combination of new accounts, higher business escrow account balances and the movement of public funds previously in money market accounts and CDs into insured checking accounts. CDs were down $5.8 million during the third quarter but were up $23.4 million on a year-over-year basis and brokered CDs were down $10.0 million at the quarter-end to $180 million.

The following table shows deposits in each category: (9/30/09 compared to 6/30/09 and 9/30/08)

                         Sept. 30,   June 30,    Sept. 30,   One Year
 DEPOSITS ($ in 000's)     2009        2009        2008       Change
 Personal checking
  accounts              $  198,766   $ 146,310  $   90,772        119%
 Business checking
  accounts                 128,846     140,345      82,485         56%
                        ----------  ----------  ----------
 Total checking accounts   327,612     286,655     173,257         89%
 Savings and MMDA          128,918     132,704     266,560        -52%
 CDs                       576,133     581,937     552,688          4%
                        ----------  ----------  ----------
 Total deposits         $1,032,663  $1,001,296  $  992,505          4%
                        ==========  ==========  ==========

Capital Management

Cascade remains well capitalized for regulatory purposes with a Risk Based Capital Ratio of 13.01% and Tier 1 Capital Ratio of 9.05% as of September 30, 2009. Tangible book value was $7.11 per common share at quarter-end, compared to $7.79 a year ago. Cascade’s tangible capital to assets ratio was 5.29% at quarter-end compared to 6.16% twelve months earlier.

In June 2009, Cascade announced that it would temporarily suspend its regular quarterly cash dividend on common stock to preserve capital.

Operating Results

Third quarter net interest income was down 15% to $10.9 million compared to $12.8 million for the third quarter of 2008, due primarily to the reversal of previously accrued interest on nonperforming loans as well as the increase in nonperforming loans compared to the third quarter a year ago.

Total other income increased 36% to $3.2 million for the quarter, compared to $2.3 million for the third quarter a year ago. Gain on securities sales was up $939,000.

Total other expenses were $7.9 million in the third quarter of 2009, compared to $7.2 million, excluding the $17.3 million OTTI charge, in the third quarter of 2008. There was an 11% reduction in compensation expense, even with one new branch, but this reduction was more than offset by a $319,000 increase in FDIC insurance, higher legal expenses associated with loan workouts, and an increase in REO expense.

For the first nine months of 2009, net interest income was $32.9 million, compared to $34.8 million for the first nine months of 2008. The impact of the increase in nonperforming assets is the primary cause for the lower year-to-date net interest income. Other income increased 29% to $9.1 million for the first nine months of 2009 compared to $7.0 million in the first nine months of 2008. The increase is primarily due to the $800,000 increase in gain on sale of securities and the $1.3 million increase in fair value gain on junior subordinated debentures. For the first nine months of the year, total other expenses excluding the 2Q09 goodwill impairment increased to $26.6 million compared to $21.4 million, excluding the 3Q08 OTTI, in the first nine months of 2008. The increase was largely due to the increase in FDIC insurance premiums, the FDIC special assessment, the loss on REO and REO expense.

The efficiency ratio, excluding the 2Q09 goodwill charge and 3Q08 OTTI charge, was 56.4% in the third quarter of 2009 compared to 76.6% in the preceding quarter and 47.3% in the third quarter a year ago. For the first nine months of 2009, the efficiency ratio, excluding the 2Q09 goodwill charge and 3Q08 OTTI charge, was 61.3% compared to 51.1% in the first nine months of 2008. This ratio was impacted by costs associated with REO, legal expenses and the FDIC special assessment.

Net Interest Margin

Cascade’s net interest margin was 3.03% for the third quarter of 2009, compared to 3.01% in the immediate prior quarter and 3.52% for the third quarter a year ago. “The drag from nonperforming loans, including the reversal of previously accrued interest, continues to weigh on net interest income. Our net interest margin improved slightly during the third quarter compared to the preceding quarter as the reduction in our deposit costs more than offset the drag from nonperforming loans,” said Johnson. “Our yield on earning assets declined by three basis points compared to the preceding quarter, while the cost of interest-bearing liabilities decreased by eleven basis points driven by a decline in the cost of deposits by the same amount. This eight basis point improvement in the interest spread only translated into a two basis point improved margin because earning assets were a smaller percentage of total assets due to the increase in nonperforming assets.” For the first nine months of 2009, the net interest margin was 3.02%, compared to 3.24% for the first nine months of 2008.

The following table depicts Cascade’s yield on assets, its cost of funds and the resulting spread and margin:

                  3Q09  2Q09  1Q09  4Q08  3Q08  2Q08  1Q08  4Q07  3Q07
                 -----------------------------------------------------
 Asset yield     5.60% 5.63% 5.83% 6.07% 6.67% 6.31% 6.62% 7.20% 7.29%
 Liability cost  2.63% 2.74% 3.02% 3.33% 3.44% 3.51% 4.03% 4.32% 4.42%

 Spread          2.97% 2.89% 2.81% 2.74% 3.23% 2.80% 2.59% 2.88% 2.87%
 Margin          3.03% 3.01% 3.03% 3.01% 3.52% 3.17% 3.02% 3.38% 3.37%

Regulatory Matters

Cascade Bank recently received notice from the FDIC that based on an off-site review of its financial information, the Bank will be subject to a corrective action program based upon the finalization of a full scope examination completed in June 2009. The concern was primarily focused on the deterioration of asset quality, concentration of credit in the real estate area, and liquidity. In light of the concern, the Bank was instructed to take steps to preserve capital; provide prior notice to the FDIC of certain management changes; seek prior regulatory approval of any severance or any golden parachute payments; and obtain a non-objection from the regulators before paying any cash dividend.

Conference Call

Cascade’s management team will host an analyst call on Wednesday, October 21, 2009, at 11:00 a.m. PDT (2:00 p.m. EDT) to discuss third quarter results. Interested investors may listen to the call live or via replay at www.cascadebank.com under shareholder information. Investment professionals are invited to dial (480) 629-9818, using access code 4164643 to participate in the live call. A replay will be available for a week at (303) 590-3030, using access code 4164643.

About Cascade Financial

Established in 1916, Cascade Bank, the only operating subsidiary of Cascade Financial Corporation, is a state chartered commercial bank headquartered in Everett, Washington. Cascade Bank has proudly served the Puget Sound region for over 90 years and operates 22 full service branches in Everett, Lynnwood, Marysville, Mukilteo, Shoreline, Smokey Point, Issaquah, Clearview, Woodinville, Lake Stevens, Bellevue, Snohomish, North Bend, Burlington and Edmonds.

In June 2009, Cascade was ranked #55 on the Seattle Times’ Northwest 100 list of public companies. In April 2009, Cascade was ranked #5 on the Puget Sound Business Journal’s list of largest bank companies headquartered in the Puget Sound area.

Non-GAAP Financial Measures

This news release contains certain non-GAAP financial measures in addition to results presented in accordance with Generally Accepted Accounting Principles (GAAP). These measures include tangible book value per share, efficiency ratio and tangible capital/assets ratio. These measures should not be construed as a substitute for GAAP measures; they should be read and used in conjunction with Cascade’s GAAP financial information. A reconciliation of the included non-GAAP financial measures to GAAP measures is included elsewhere in this release.

Forward-Looking Statements

Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Reform Act. CASB’s actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “intend,” “may increase,” “may fluctuate,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could.” These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; results of various investment activities; the effects of competitors’ pricing policies, of changes in laws and regulations on competition and of demographic changes on target market populations’ savings and financial planning needs; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; the adoption by CASB of an FFIEC policy that provides guidance on the reporting of delinquent consumer loans and the timing of associated credit charge-offs for financial institution subsidiaries; and the resolution of legal proceedings and related matters. In addition, the banking industry in general is subject to various monetary and fiscal policies and regulations, which include those determined by the Federal Reserve Board, the Federal Deposit Insurance Corporation, and state regulators, whose policies and regulations could affect CASB’s results. These statements are representative only on the date hereof, and CASB undertakes no obligation to update any forward-looking statements made.

 BALANCE SHEET
 (Dollars in
  thousands                              Three
  except per     Sept. 30,   June 30,    Month     Sept. 30,  One Year
  share amounts)   2008        2009      Change      2008      Change
                ----------  ----------  --------  ----------  --------
 (Unaudited)

 ASSETS

 Cash and due
  from banks    $    4,401  $   13,976      -69%  $   12,822      -66%
 Interest
  -bearing
  deposits          69,838      26,403      165%         611        NM

 Securities
  available-for
  -sale            242,136     227,924        6%     102,313      137%
 Federal Home
  Loan Bank
  (FHLB) stock      11,920      11,920        0%      11,920        0%
 Securities held
  -to-maturity      26,912      38,243      -30%     140,615      -81%
                ----------  ----------            ----------
 Total
  securities       280,968     278,087        1%     254,848       10%
 Loans
  Business         473,546     467,923        1%     473,213        0%
  R/E
   construction    284,888     296,931       -4%     403,569      -29%
  Commercial R/E   193,652     192,886        0%     119,787       62%
  Multifamily       84,029      91,554       -8%      74,535       13%
  Home equity
   /consumer        31,455      30,919        2%      29,659        6%
  Residential      163,151     146,231       12%     112,283       45%
                ----------  ----------            ----------
  Total loans    1,230,721   1,226,444        0%   1,213,046        1%
  Deferred
   loan fees        (3,204)     (2,928)       9%      (3,248)      -1%
  Allowance for
   loan losses     (24,749)    (24,490)       1%     (14,531)      70%
                ----------  ----------            ----------
 Loans, net      1,202,768   1,199,026        0%   1,195,267        1%
 Real estate
  owned (REO)
  and other
  repossessed
  assets             6,967       7,872      -11%       1,446      382%
 Premises and
  equipment         15,009      15,319       -2%      15,676       -4%
 Bank owned life
  insurance         24,275      24,052        1%      23,388        4%
 Deferred tax
  asset              6,426       7,167      -10%       8,437      -24%
 Other assets       23,062      25,486      -10%      14,173       63%
 Goodwill           12,885      12,885        0%      24,585      -48%
 Core deposit
  intangible,
  net                  388         423       -8%         529      -27%
                ----------  ----------            ----------
  Total assets  $1,646,987  $1,610,696        2%  $1,551,782        6%
                ==========  ==========            ==========

 LIABILITIES
  AND EQUITY
 Liabilities:
 Deposits
  Personal
   checking
   accounts     $  198,766  $  146,310       36%  $   90,772      119%
  Business
   checking
   accounts        128,846     140,345       -8%      82,485       56%
                ----------  ----------            ----------
  Total checking
   accounts        327,612     286,655       14%     173,257       89%
  Savings and
   money market
   accounts        128,918     132,704       -3%     266,560      -52%
  Certificates
   of deposit      576,133     581,937       -1%     552,688        4%
                ----------  ----------            ----------
 Total deposits  1,032,663   1,001,296        3%     992,505        4%
 FHLB advances     239,000     239,000        0%     255,000       -6%
 Securities sold
  under
  agreement to
  repurchase       147,455     146,600        1%     120,983       22%
 Federal Reserve
  borrowings        60,000      60,000        0%      30,000      100%
 Other
  liabilities        7,489       7,307        2%       8,194       -9%
 Jr. Sub. Deb.
  (Trust
  Preferred
  Securities)       15,465      15,465        0%      15,465        0%
 Jr. Sub. Deb.
  (Trust
  Preferred
  Securities),
  at fair value      8,357       8,708       -4%      10,535      -21%
                ----------  ----------            ----------
  Total
   liabilities   1,510,429   1,478,376        2%   1,432,682        5%
                ----------  ----------            ----------

 Stockholders'
  equity:
 Preferred stock    36,931      36,826        0%          --        NM
 Common stock
  and paid in
  capital           41,129      41,054        0%      40,857        1%
 Retained
  earnings          54,503      53,430        2%      79,753      -32%
 Warrants issued
  to U.S.
  Treasury           2,389       2,389        0%          --        NM
 Accumulated
  other
  comprehensive
  gain (loss),
  net                1,606      (1,379)       NM      (1,510)       NM
                ----------  ----------            ----------
  Total
   stockholders'
   equity          136,558     132,320        3%     119,100       15%
                ----------  ----------            ----------
 Total
  liabilities
  and
  stockholders'
  equity        $1,646,987  $1,610,696        2%  $1,551,782        6%
                ==========  ==========            ==========

 STATEMENT OF
  OPERATIONS
 (Dollars in     Quarter     Quarter               Quarter
  thousands       Ended       Ended      Three      Ended
  except per     Sept. 30,   June 30,    Month     Sept. 30,  One Year
  share amounts)   2009        2009      Change      2008      Change
 (Unaudited)    ----------  ----------  --------  ----------  --------

 Interest
  income        $   20,189  $   20,215        0%  $   24,345      -17%
 Interest
  expense            9,271       9,392       -1%      11,508      -19%
                ----------  ----------            ----------
 Net interest
  income            10,918      10,823        1%      12,837      -15%
 Provision for
  loan losses        4,000      18,300      -78%       1,250      220%
                ----------  ----------            ----------
 Net interest
  income (loss)
  after
  provision for
  loan losses        6,918      (7,477)       NM      11,587      -40%
 Other income:
  Checking fees      1,342       1,270        6%       1,328        1%
  Service fees         237         286      -17%         280      -15%
  Bank owned
   life
   insurance           239         208       15%         271      -12%
  Gain on sales
   /calls of
   securities          852         226      277%         (87)       NM
  Gain on sale
   of loans             23          98      -77%          36      -36%
  Fair value
   gains               351          12        NM         389      -10%
  Other                123         120        2%         109       13%
                ----------  ----------            ----------
 Total other
  income             3,167       2,220       43%       2,326       36%

 Total income
  (loss)            10,085      (5,257)       NM      13,913      -28%
                ----------  ----------            ----------
 Other expenses:
  Compensation
   expense           3,382       3,587       -6%       3,789      -11%
  Other
   operating
   expenses          3,989       3,942        1%       3,187       25%
  FDIC insurance
   and WPDPC
   assessment          505       1,241      -59%         186      172%
  Loss on sale
   of REO               69       1,225      -94%           3        NM
  OTTI charge           --          --        NM      17,338        NM
                ----------  ----------            ----------
  Other expenses
   excluding
   goodwill
   impairment        7,945       9,995      -21%      24,503      -68%
  Goodwill
   impairment           --      11,700        NM          --        NM
                ----------  ----------            ----------
 Total other
  expenses           7,945      21,695      -63%      24,503      -68%
                ----------  ----------            ----------

 Net income
  (loss) before
  provision
  (benefit) for
  income tax         2,140     (26,952)       NM     (10,590)       NM

 Provision
  (benefit) for
  income tax           507      (5,552)       NM      (3,971)       NM
                ----------  ----------            ----------

 Net income
  (loss)             1,633     (21,400)       NM      (6,619)       NM

 Dividends on
  preferred
  stock                487         487        0%          --        NM
 Accretion of
  issuance
  discount on
  preferred
  stock                105         105        0%          --        NM
                ----------  ----------            ----------

 Income (loss)
  available for
  common
  stockholders  $    1,041  $  (21,992)       NM  $   (6,619)       NM
                ==========  ==========            ==========
 EARNINGS PER
  SHARE
  INFORMATION

 Earnings per
  share, basic  $     0.09  $    (1.82)       NM  $    (0.55)       NM
 Earnings per
  share,
  diluted       $     0.09  $    (1.82)       NM  $    (0.55)       NM

 Weighted
  average number
  of shares
  outstanding
 Basic          12,128,257  12,110,434            12,059,480
 Diluted        12,128,257  12,110,434            12,140,168

                                         Nine        Nine
                                        Months      Months
 STATEMENT OF OPERATIONS                 Ended       Ended      Nine
 (Dollars in thousands except per      Sept. 30,   Sept. 30,   Month
  share amounts)                         2009        2008      Change
                                      ----------  ----------  --------
 (Unaudited)
 Interest income                      $   61,814  $   70,152      -12%
 Interest expense                         28,954      35,395      -18%
                                      ----------  ----------
 Net interest income                      32,860      34,757       -5%
 Provision for loan losses                36,175       4,840      647%
                                      ----------  ----------
 Net interest (loss) income after
  provision for loan losses               (3,315)     29,917     -111%
 Other income:
  Checking fees                            3,724       3,640        2%
  Service fees                               772         825       -6%
  Bank owned life insurance                  687         790      -13%
  Gain on sales/calls of securities        1,196         396      202%
  Gain on sale of loans                      160         119       34%
  Fair value gains                         2,153         887      143%
  Other                                      359         340        6%
                                      ----------  ----------
 Total other income                        9,051       6,997       29%

 Total income                              5,736      36,914      -84%
                                      ----------  ----------
 Other expenses:
  Compensation expense                    10,575      11,039       -4%
  Other operating expenses                11,281       9,923       14%
  FDIC insurance and WPDPC assessment      2,505         385      551%
  Loss on sale of REO                      1,348           3        NM
  OTTI charge                                858      17,338      -95%
                                      ----------  ----------
  Other expenses excluding
   goodwill impairment                    26,567      38,688      -31%
  Goodwill impairment                     11,700          --        NM
                                      ----------  ----------
 Total other expenses                     38,267      38,688       -1%
                                      ----------  ----------

 Net loss before benefit
  for income tax                         (32,531)     (1,774)       NM

 Benefit for income tax                   (7,947)     (1,402)     467%
                                      ----------  ----------

 Net loss                                (24,584)       (372)       NM

 Dividends on preferred stock              1,456          --        NM
 Accretion of issuance discount
  on preferred stock                         315          --        NM
                                      ----------  ----------     

 Loss attributable to common
  stockholders                        $  (26,355) $     (372)       NM
                                      ==========  ==========

 EARNINGS PER SHARE INFORMATION

 Earnings per share, basic            $    (2.18) $    (0.03)       NM
 Earnings per share, diluted          $    (2.18) $    (0.03)       NM

 Weighted average number of
  shares outstanding
 Basic                                12,113,623  12,047,700
 Diluted                              12,113,623  12,168,009

 (Dollars in thousands except per share amounts)(Unaudited)

                                                   Nine        Nine
              Quarter     Quarter     Quarter     Months      Months
 PERFORMANCE   Ended       Ended       Ended       Ended       Ended
  MEASURES   Sept. 30,   June 30,    Sept. 30,   Sept. 30,   Sept. 30,
  AND RATIOS   2009        2009        2008        2009        2008
            ----------  ----------  ----------  ----------  ----------
 Return on
  average
  common
  equity         6.77%     -80.68%     -20.69%     -30.08%      -0.39%
 Return on
  average
  assets         0.40%      -5.33%      -1.69%      -2.02%      -0.03%
 Efficiency
  ratio*        56.41%      76.63%      47.25%      61.34%      51.13%
 Net
  interest
  margin         3.03%       3.01%       3.52%       3.02%       3.24%

 *Excludes goodwill and OTTI charges for 6/30/09
  and 9/30/08 respectively

                                                   Nine        Nine
              Quarter     Quarter     Quarter     Months      Months
               Ended       Ended       Ended       Ended       Ended
 AVERAGE     Sept. 30,   June 30,    Sept. 30,   Sept. 30,   Sept. 30,
  BALANCES     2009        2009        2008        2009        2008
            ----------  ----------  ----------  ----------  ----------
 Average
  assets    $1,634,855  $1,611,721  $1,556,771   1,626,966   1,519,073
 Average
  earning
  assets     1,430,829   1,440,316   1,452,526   1,453,728   1,430,815
 Average
  total
  loans      1,231,888   1,247,475   1,201,676   1,246,130   1,168,611
 Average
  deposits   1,024,489     986,945     988,905     995,071     961,859
 Average
  equity
  (including
  preferred
  stock)       133,375     142,861     127,936     145,728     126,369
 Average
  common
  equity
  (excluding
  preferred
  stock)        96,513     106,102     127,936     108,961     126,369
 Average
  tangible
  common
  equity
  (excluding
  pref stock
  and good
  will)         83,223      92,776     102,804      91,778     101,202

                                     Sept. 30,    June 30,   Sept. 30,
 EQUITY ANALYSIS                       2009        2009        2008
                                    ----------  ----------  ----------
 Total equity                       $  136,558  $  132,320  $  119,100
 Less: senior preferred stock           36,931      36,826          --
                                    ----------  ----------  ----------
 Total common equity                    99,627      95,494     119,100
 Less: goodwill and intangibles         13,273      13,308      25,114
                                    ----------  ----------  ----------
 Tangible common equity             $   86,354  $   82,186  $   93,986

 Common stock outstanding           12,146,080  12,110,434  12,071,032
 Book value per common share        $     8.20  $     7.89  $     9.87
 Tangible book value
  per common share                  $     7.11  $     6.79  $     7.79

                                     Sept. 30,   June 30,    Sept. 30,
 ASSET QUALITY                         2009        2009        2008
                                    ----------  ----------  ----------
 Nonperforming loans (NPLs)         $  125,687  $  114,449  $   15,697
 Nonperforming loans/total loans        10.21%       9.33%       1.29%
 REO and other repossessed assets   $    6,967  $    7,872  $    1,446
 Nonperforming assets               $  132,654  $  122,321  $   17,143
 Nonperforming assets/total assets       8.05%       7.59%       1.10%
 Net loan charge-offs in
  the quarter                       $    3,368  $   18,512  $       43
 Net charge-offs in the quarter
  /total loans                           0.27%       1.51%       0.00%

 Allowance for loan losses          $   24,749  $   24,490  $   14,531
 Plus: Allowance for off-balance
  sheet commitments                         75          72         107
                                    ----------  ----------  ----------
 Total allowance for loan losses    $   24,824  $   24,562  $   14,638
 Total allowance for loan losses
  /total loans                           2.02%       2.00%       1.21%
 Total allowance for loan losses
  /nonperforming loans                     20%         21%         93%

 Capital/asset ratio (inc.
  Jr. Sub. Deb.)                         9.81%       9.77%       9.29%
 Capital/asset ratio (Tier 1, inc.
  Jr. Sub. Deb.)                         9.05%       9.10%       7.87%
 Tangible cap/asset ratio
  (ex. Jr. Sub. Deb. and preferred
  stock)                                 5.29%       5.15%       6.16%
 Risk based capital/risk
  weighted asset ratio                  13.01%      12.62%      10.40%

                                      Quarter    Quarter     Quarter
                                       Ended       Ended       Ended
                                     Sept. 30,   June 30,    Sept. 30,
 INTEREST SPREAD ANALYSIS              2009        2009        2008
                                    ----------  ----------  ----------
 Yield on total loans                    5.51%       5.57%       6.82%
 Yield on investments                    4.38%       4.49%       5.38%
 Yield on earning assets                 5.60%       5.63%       6.67%

 Cost of deposits                        1.51%       1.62%       2.59%
 Cost of FHLB advances                   4.35%       4.33%       4.30%
 Cost of Federal Reserve borrowings      0.25%       0.30%       2.37%
 Cost of securities sold under
  agreement to repurchase                5.89%       5.74%       5.32%
 Cost of Jr. Sub. Debentures             8.70%       8.79%       8.00%
 Cost of interest-bearing
  liabilities                            2.63%       2.74%       3.44%

 Net interest spread                     2.97%       2.89%       3.23%
 Net interest margin                     3.03%       3.01%       3.52%

 RECONCILIATION TO NON-GAAP FINANCIAL MEASURES*
 (Dollars in thousands)
 (Unaudited)

                       Quarter Ended              Nine Months Ended
             Sept. 30,   June 30,    Sept. 30,   Sept. 30,   Sept. 30,
               2009        2009        2008        2009        2008
            ----------  ----------  ----------  ----------  ----------

 AVERAGE
  TANGIBLE
  COMMON
  EQUITY

 Income
  (loss)
  available
  for common
  stock
  -holders  $    1,041  $  (21,992) $   (6,619) $  (26,355) $     (372)
 Less
  goodwill
  impairment        --      11,700          --      11,700          --
            ----------  ----------  ----------  ----------  ----------
 Income
  (loss)
  available
  for common
  stock
  -holders
  excluding
  goodwill
  impair
  -ment     $    1,041  $  (10,292) $   (6,619) $  (14,655) $     (372)

 Average
  tangible
  common
  equity
  (excluding
  preferred
  stock)    $   83,223  $   92,776  $  102,804  $   91,778  $  101,202

 EFFICIENCY
  RATIO

 Net
  interest
  income    $   10,918  $   10,823  $   12,837  $   32,860  $   34,757
 Other
  income         3,167       2,220       2,326       9,051       6,997
            ----------  ----------  ----------  ----------  ----------
 Total
  income    $   14,085  $   13,043  $   15,163  $   41,911  $   41,754

 Total other
  expenses  $    7,945  $   21,695  $   24,503  $   38,267  $   38,688
 OTTI       $       --  $       --  $   17,338  $      858  $   17,338
 Goodwill
  impair
  -ment     $       --  $   11,700  $       --  $   11,700  $       --
            ----------  ----------  ----------  ----------  ----------
 Total other
  expenses
  (excluding
  OTTI and
  goodwill
  impair
  -ment)    $    7,945  $    9,995  $    7,165  $   25,709  $   21,350

 Efficiency
  ratio         56.41%      76.63%      47.25%      61.34%      51.13%

 TANGIBLE
  COMMON
  EQUITY
  RATIO

 Total
  assets    $1,646,987  $1,610,696  $1,551,782
 Less
  goodwill
  and
  intang
  -ibles        13,273      13,308      25,114
            ----------  ----------  ----------
 Total
  tangible
  assets    $1,633,714  $1,597,388  $1,526,668

 Tangible
  common
  equity    $   86,354  $   82,186  $   93,986
 Tangible
  cap/asset
  ratio (ex.
  Jr. Sub
  Deb and
  preferred
  stock)         5.29%       5.15%       6.16%

 *Management believes that the presentation of non-GAAP results
  provides useful information to investors regarding the effects on
  the Company's reported results of operations.

EMG Signs Gas Sale Agreements with Three Israeli Combined Cycle Cogeneration Plants

Oct. 19, 2009 (Business Wire) — Ampal-American Israel Corporation (Nasdaq:AMPL), a holding company in the business of acquiring and managing interests in various businesses, with emphasis in recent years on energy and related fields, announced today that it has been advised by East Mediterranean Gas Co.(“EMG”), in which Ampal has a 12.5% interest, that EMG signed three Gas Sale Agreements with respect to three combined cycle cogeneration plants with a total production capacity of 270 Megawatts. The contracts provide for gas deliveries over an 18 year contract period and have a total contract value of $1.3 Billion. Descriptions of the three contracts follow:

1. Ashdod Energy Ltd. – gas supply agreement for the cogeneration plant in the Agan Chemicals factory in Ashdod, Israel, with production capacity of 55 Megawatts and 40 tons of steam per hour.
2. Ramat Negev Energy Ltd. – gas supply agreement for the cogeneration plant in the Makhteshim Chemicals Works factory in Ramat Hovav, Israel, with production capacity of 115 Megawatts and 110 tons of steam per hour.
3. Solad Energy Ltd. – gas supply agreement for the cogeneration plant in the Solbar factory in Ashdod, Israel, with production capacity of 100 Megawatts and 90 tons of steam per hour.

These three agreements signed by EMG are joining the three previous gas sale agreements signed between EMG and the Israeli Electric Company, Dorad Energy Ltd., and Nesher.

Mr. Yosef A. Maiman, the Chairman, President and CEO of Ampal commented: “The signing of the three agreements by EMG, as well as EMG’s active and ongoing negotiations with other potential customers, including electricity producers and industrial companies, buttresses our view that EMG’s gas supply is stable and reliable and, we believe, demonstrates that the energy market in Israel, as well as the financing sources for these projects, believe in the reliability and competitiveness of EMG’s gas. EMG is working with more potential customers who desire to replace costly, polluting fuels with cleaner and cheaper natural gas, and they are turning to EMG as a solution.”

About Ampal:

Ampal and its subsidiaries acquire interests primarily in businesses located in the State of Israel or that are Israel-related. The Company is seeking opportunistic situations in a variety of industries, with a focus on energy and related sectors. The Company’s goal is to develop or acquire majority interests in businesses that are profitable and generate significant free cash flow that Ampal can control. For more information about Ampal please visit our web site at www.ampal.com.

Safe Harbor Statement

Certain information in this press release includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) and information relating to Ampal that are based on the beliefs of management of Ampal as well as assumptions made by and information currently available to the management of Ampal. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and similar expressions as they relate to Ampal or Ampal’s management, identify forward-looking statements. Such statements reflect the current views of Ampal with respect to future events or future financial performance of Ampal, the outcome of which is subject to certain risks and other factors which could cause actual results to differ materially from those anticipated by the forward-looking statements, including among others, the economic and political conditions in Israel, the Middle East, including the situation in Iraq, and the global business and economic conditions in the different sectors and markets where Ampal’s portfolio companies operate. Should any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcome may vary from those described herein as anticipated, believed, estimated, expected, intended or planned. Subsequent written and oral forward-looking statements attributable to Ampal or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. Please refer to the Ampal’s annual, quarterly and periodic reports on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially. Ampal assumes no obligation to update or revise any forward-looking statements.

Sprint Nextel to Acquire Wireless Affiliate iPCS, Inc. (IPCS)

Oct. 19, 2009 (Business Wire) — Sprint Nextel Corp. (NYSE: S) and iPCS, Inc. (NASDAQ: IPCS) today announced an agreement for Sprint Nextel to acquire iPCS for approximately $831 million, including the assumption of $405 million of net debt. This transaction value represents 6.4x projected 2010 Adjusted Earnings Before Income, Taxes, and Depreciation (“Adjusted EBITDA”*). Sprint expects to achieve approximately $30 million of synergies annually in the transaction and expects the transaction to be free cash flow accretive to Sprint in 2010.

Under the terms of the agreement, Sprint Nextel will commence a cash tender offer to acquire all of iPCS’ outstanding common shares for $24.00 per share. This price per share represents a 34 percent premium to iPCS’ closing stock price as of October 16, 2009. The agreement also requires a minimum of a majority of the shares outstanding (on a fully-diluted basis) to be tendered in the offer. Following completion of the tender offer, any remaining shares of iPCS will be acquired in a cash merger at the same price per share. Shareholders with approximately 9.5 percent of the outstanding common shares of iPCS have already agreed to tender their shares pursuant to the tender offer and to vote their shares in favor of the merger.

The acquisition is subject to customary regulatory approvals and other customary closing conditions, and is expected to be completed either late in the fourth quarter of 2009 or early 2010. As part of the agreement, Sprint Nextel and iPCS will seek an immediate stay of all pending litigation between the parties with a final resolution to become effective upon closing of the acquisition.

As a result, Sprint will no longer be required to divest its iDEN network in certain iPCS territories and will terminate its previously announced divestiture process pending closing of the transaction.

iPCS’s services are sold under the Sprint brand name and in Sprint-branded stores. Because of the nearly seamless marketing and sales relationship between Sprint and iPCS, customers should not experience any change in their service as a result of this transaction.

“Acquiring iPCS brings added value to Sprint by expanding our direct customer base, growing our direct coverage area and simplifying our business operations,” said Dan Hesse, CEO of Sprint Nextel. “Customers in iPCS territory will see a seamless transition and continue to enjoy a superb customer experience.”

“We are very pleased to have reached this agreement with Sprint Nextel. Given the increasingly competitive landscape, we believe this is an opportune time to provide our shareholders with a liquidity event at a very attractive price. iPCS shareholders will receive a significant and immediate premium for their shares and our customers will continue to receive the same excellent service from the same dedicated people who provide that service today,” said Timothy M. Yager, president and CEO of iPCS. “We look forward to working with the Sprint Nextel team to ensure a smooth completion of the transaction and transition in the coming months.”

*Financial Measures

Certain financial measures included in this release have been generated using adjustments to amounts determined under generally accepted accounting principles (non-GAAP). The non-GAAP financial measures reflect industry conventions, or standard measures of liquidity, profitability or performance commonly used by the investment community for comparability purposes. The financial measures used in this release include the following:

Adjusted EBITDA is defined as operating income plus depreciation, amortization and special items. We believe that Adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of ongoing business operations. While depreciation and amortization are considered operating costs under generally accepted accounting principles, these expenses primarily represent non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods.

Net Debt is debt, including current maturities, less cash and equivalents and current marketable securities.

ADVISORS

Sprint’s financial advisor for the transaction was Citigroup Global Markets Inc. and its principal legal advisor was King & Spalding LLP. iPCS’s financial advisors were UBS Investment Bank and Morgan Stanley & Co. Incorporated and its principal legal advisor was Mayer Brown LLP.

NOTICE TO INVESTORS

The planned tender offer described in this release has not yet commenced. The description contained in this release is not an offer to buy or the solicitation of an offer to sell securities. At the time the planned tender offer is commenced, Sprint Nextel will file a tender offer statement on Schedule TO with the Securities and Exchange Commission (the “SEC”), and iPCS will file a solicitation/recommendation statement on Schedule 14D-9 with respect to the planned tender offer. The tender offer statement (including an offer to purchase, a related letter of transmittal and other tender offer documents) and the solicitation/recommendation statement will contain important information that should be read carefully before making any decision to tender securities in the planned tender offer. Those materials will be made available to iPCS’s stockholders at no expense to them. In addition, all of those materials (and all other tender offer documents filed with the SEC) will be made available at no charge on the SEC’s website at www.sec.gov.

SAFE HARBOR

This press release includes forward-looking statements regarding the proposed acquisition and related transactions that are not historical or current facts and deal with potential future circumstances and developments, in particular, information regarding the acquisition of iPCS. Forward-looking statements are qualified by the inherent risk and uncertainties surrounding future expectations generally and may materially differ from actual future experience. Risks and uncertainties that could affect forward-looking statements include: the failure to realize synergies as a result of operational efficiencies, unexpected costs or liabilities, the result of the review of the proposed transaction by various regulatory agencies and any conditions imposed in connection with the consummation of the transaction, satisfaction of various other conditions to the closing of the transaction contemplated by the transaction agreement and the risks that are described from time to time in Sprint’s and iPCS’s respective reports filed with the Securities and Exchange Commission (SEC), including the annual report on Form 10-K for the year ended December 31, 2008 and quarterly report on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009 of each of Sprint and iPCS. This press release speaks only as of its date, and Sprint and iPCS disclaim any duty to update the information herein.

ABOUT iPCS, Inc.

iPCS, through its operating subsidiaries, is a Sprint PCS Affiliate of Sprint Nextel Corporation with the exclusive right to sell wireless mobility communications network products and services under the Sprint brand in 81 markets including markets in Illinois, Michigan, Pennsylvania, Indiana, Iowa, Ohio and Tennessee. The territory includes key markets such as Grand Rapids (MI), Fort Wayne (IN), the Tri-Cities region of Tennessee (Johnson City, Kingsport and Bristol), Scranton (PA), Saginaw-Bay City (MI), Central Illinois (Peoria, Springfield, Decatur, and Champaign) and the Quad Cities region of Illinois and Iowa (Bettendorf and Davenport, IA, and Moline and Rock Island, IL). As of June 30, 2009, iPCS’s licensed territory had a total population of approximately 15.1 million residents, of which its wireless network covered approximately 12.6 million residents, and iPCS had approximately 710,200 subscribers. iPCS is headquartered in Schaumburg, Illinois. For more information, please visit iPCS’s website at www.ipcswirelessinc.com.

ABOUT SPRINT NEXTEL

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two wireless networks serving almost 49 million customers at the end of the second quarter of 2009; industry-leading mobile data services; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. The company’s customer-focused strategy has led to improved first call resolution and customer care satisfaction scores. For more information, visit www.sprint.com.

2020 ChinaCap Acquirco, Inc. (EDS) Stockholders Approve Acquisition

MARLBOROUGH, MA — (Marketwire) — 10/19/09 — 2020 ChinaCap Acquirco, Inc. (“2020”) or (the “Company”) (NASDAQ: EDS), (NASDAQ: EDSWW) and (NASDAQ: EDSUU) announced that its stockholders have approved all proposals related to the acquisition by 2020 of Windrace International Company Limited (“WHL”). WHL is one of the largest branded sportswear companies in China that is engaged in the design, manufacturing, trading and distribution of sporting goods, including footwear, apparel and accessories, in the People’s Republic of China (“PRC”). The vote to approve the acquisition took place today at the Company’s special meeting of stockholders. The transaction is expected to close on October 21, 2009. Prior to the completion of the transaction, the Company will be merged into its wholly-owned subsidiary incorporated in the British Virgin Islands, Exceed Company Limited (“Exceed”), with Exceed as the surviving entity. This will result in the redomestication of the Company to the British Virgin Islands. 2020 changed its ticker symbols from TTY, TTYWW and TTYUU for its common stock, warrants and units respectively to EDS, EDSWW and EDSUU, respectively on October 19, 2009. Upon completion of the transaction, the common stock, warrants and units of Exceed will continue to trade on the NASDAQ Stock Market under the new ticker symbols.

“We are very pleased that our stockholders approved the acquisition of WHL,” stated George Lu, Chairman and Chief Executive Officer of 2020. “This transaction provides the business of WHL with a public listing on NASDAQ and the capital to execute its growth strategy of scaling up its distribution network through continued supply chain management enhancements and expansion as well as continued product innovation. WHL has a strong track record of growth, having emerged as one of the leading sporting goods companies in China over the last six years, and we look forward to working with the WHL management team to take the business to the next level and build shareholder value over the long-term.”

ABOUT 2020 CHINACAP ACQUIRCO, INC.

2020 is a public acquisition company organized as a corporation under the laws of the State of Delaware on August 21, 2006. It was formed to effect a business combination with an unidentified operating business having its operations in China. In November 2007, it consummated its IPO from which it derived gross proceeds of $69 million, including proceeds from the exercise of the underwriters’ over-allotment option. $68 million of the net proceeds of the IPO and a private placement completed prior to the IPO were deposited in a trust account and such funds and a portion of the interest earned thereon will be released only upon the consummation of the business combination or to holders of 2020’s common stock in connection with its liquidation and dissolution. Other than its IPO and the pursuit of a business combination, 2020 has not engaged in any business to date.

FORWARD LOOKING STATEMENTS

The transaction described herein is subject to a number of risks and uncertainties, including, but not limited to, the satisfaction of certain conditions to the closing of the proposed merger and the ability of WHL to successfully utilize the additional capital made available to it by the acquisition.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and future performance of 2020. These statements are based on management’s current expectations or beliefs. Actual results may vary materially from those expressed or implied by the statements herein. This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in certain of 2020’s Securities and Exchange Commission filings. For a description of certain factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release, refer to documents that 2020 files from time to time with the Securities and Exchange Commission. 2020 is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

Linktone Ltd. (LTON) Enters into Mobile Video Agreement with China National Radio Mobile Media

BEIJING, Oct. 15, 2009 (PRNewswire-Asia-FirstCall) — Linktone Ltd. (Nasdaq: LTON), one of the leading providers of wireless interactive entertainment products and services to consumers in China, today announced that the Company has entered into a mobile video agreement to make video highlights of Major League Baseball (MLB) games available to customers in China with China National Radio Mobile Media (Beijing) Co. Ltd. (“CNRMM”). CNRMM is one of four companies licensed to provide video content to mobile phone users in China and a subsidiary of China National Radio, the national radio station of the People’s Republic of China.

Under the terms of the agreement with CNRMM, beginning with the 2009 MLB World Series on October 28th, Linktone will provide daily video highlights from the Fall Classic to CNRMM’s subscribers, who will be able to access the content via China Mobile’s Monternet mobile video platform. Beginning in April 2010, the MLB video highlights provided by Linktone to CNRMM customers are expected to be expanded to include regular season games for all 30 MLB Clubs.

“This partnership is an early example of the many possible product applications arising from Linktone’s recently announced exclusive license for Major League Baseball related interactive media rights. Baseball will be coming to the portable screen in China via 3G technology, enabling baseball fans to follow their favorite teams and players anywhere and anytime,” said Hary Tanoesoedibjo, Chairman and Chief Executive Officer of Linktone.

About Linktone Ltd.

Linktone Ltd. is one of the leading providers of wireless interactive entertainment services to consumers in China. Linktone provides a diverse portfolio of services to wireless consumers and corporate customers, with a particular focus on media, entertainment and communications. These services are promoted through the Company’s strong distribution network, integrated service platform and multiple marketing sales channels, as well as through the networks of the mobile operators in China. Through in-house development and alliances with international and local branded content partners, the Company develops, aggregates, and distributes innovative and engaging products to maximize the breadth, quality and diversity of its offerings.

About CNR Mobile Media (Beijing) Co. Ltd.

China National Radio Mobile Media (Beijing) Co. Ltd. (“CNRMM”), a subsidiary of China National Radio, the national radio station of the People’s Republic of China. CNRMM is one of four companies licensed to provide video content to mobile phone users in China. China National Radio (CNR) is one of the most important and influential mass media in China. Founded on 30 Dec. 1940, CNR is now operating 11 channels (named respectively as: News Radio, Business Radio, Music Radio, Metro Radio, Zhonghua News Radio, Shenzhou Easy Radio, Huaxia Radio, Ethnic Minority Radio and Story Radio) and 197-hour daily broadcast through satellites covering the whole country as well as the new business: 4 DMB channels and 3 Handset broadcasting channels. Based on the traditional radio broadcasting, CNR is endeavoring to improve its business on internet-broadcasting, net-radio, digital TV broadcasting, handset TV broadcasting and broadcasting publications. CNR now possesses CNR.CN which is the largest audio network in China, net-radio: RADIO.CN, cable pay-TV channel specialized on Family Health, CHINA BROADCASTS (journal), CHINA BROADCASTING POST, China Broadcasting Audio-visual Press and CNR Media Corporation.

Forward-Looking Statements

This press release contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward- looking statements by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar statements. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to uncertainty as to the popularity of the MLB content being licensed by MLBAM or the profitability of the license and partnership arrangements between Linktone and MLBAM or the partnership arrangements with CNRMM; the ability of Linktone to successfully launch and maintain the licensed MLB Web sites and other services such as mobile video content in a cost-effective manner or at all; and the risks outlined in Linktone’s filings with the Securities and Exchange Commission, including its registration statement on Form F-1 and annual report on Form 20- F. Linktone does not undertake any obligation to update this forward-looking information, except as required under applicable law.

World Energy Solutions, Inc. (XWES) Helps Pennsylvania Electricity Customers Achieve Cost Savings

WEST CHESTER, PA and WORCESTER, MA, Oct. 15 /PRNewswire-FirstCall/ – World Energy Solutions, Inc. (NASDAQ: XWES; TSX: XWE), an operator of online exchanges for energy and green commodities, today announced it has run numerous online electricity procurement events on behalf of Pennsylvania businesses in advance of the State’s newly opening markets, including Pennsylvania Power & Light (PPL). By doing so, World Energy has helped its customers, in industries such as health care and manufacturing, secure energy contracts over the World Energy Exchange(R) for up to 36 months at attractive rates, providing valued budget certainty and cost savings.

With utility rate caps set to expire across the State in 2010 and 2011, beginning with PPL on January 1, 2010, Pennsylvania businesses are weighing their options. Some are choosing to wait to see where utility prices set, so they can benchmark against them. Others are choosing not to wait, looking for ways to mitigate risk and achieve budget certainty. Either way, World Energy can help, bringing together the people, process and technology customers need to make the most of their next strategic energy procurement.

“Energy is a large cost for our company and something we did not want to leave to chance,” said Jeff Davis, Senior VP/CFO at Presbyterian Senior Living, which runs retirement communities in 22 locations across Pennsylvania, Delaware, Maryland and Ohio. “World Energy impressed us with its systematic, proactive approach to our energy needs, delivering a competitive event that produced an electricity price within our budget and that we could lock in early for 24 months.”

Added Dale Good, Director of Corporate Operations at Martin Limestone, Inc., a provider of aggregates and minerals for the construction industry, “A combination of budget needs and current low energy commodity prices made us eager to secure a favorable electricity rate in advance of the PPL rate re-set. With World Energy, we were able to lock in an excellent rate – no higher than our current 2009 tariffed rate – for 30 months.”

PPL: The Wait Is Over

On October 8, 2009, PPL announced the results of its final rate-setting auction, which established the utility’s 2010 electricity rates for all its customers, including medium and large commercial and industrial accounts. World Energy sees these new rates as a positive development, one that will enhance competition and ultimately benefit area businesses. This sentiment was echoed by PPL’s president, David G. DeCampli, who stated in the Company’s press release on the new rates: “customers who shop for better deals may be able to further lessen the impact of higher prices in 2010.”

Added Dave Laipple, VP at World Energy, “As we saw in the Duke and First Energy Ohio service territories earlier this year – where World Energy has delivered over $15 million in savings to its customers – when competitive markets open, we know how to move fast and deliver customers a strategic edge. We see a similar opportunity in Pennsylvania behind PPL and believe the new rates will drive even more competition and savings opportunities for customers.”

With offices in West Chester, PA, and a growing network of channel partners throughout the State, including EnergyWise Consulting and Commercial Utility Consultants, World Energy is actively serving the electricity, natural gas and renewable energy needs of Pennsylvania businesses. World Energy also boasts a large nationwide network of registered suppliers and a sales and operations team steeped in Pennsylvania and national deregulated energy markets.

“Energy is a business where customers ultimately determine value,” concluded Laipple. “Our whole approach helps customers go to market when they need to in order to secure terms that best meet their strategic objectives. For some in the PPL market, this has meant going in before the re-set. For others, the newly established rate provides the impetus to test the market now with other suppliers, a process World Energy is in business to optimize.”

About World Energy Solutions, Inc.

World Energy (NASDAQ: XWES; TSX: XWE) operates online exchanges for energy and green commodities. For buyers and sellers of electricity, natural gas, capacity, and green-energy assets who are impacted by today’s volatile markets, World Energy’s proven approach has transformed the normally complex procurement process into a powerful, streamlined vehicle for cost savings. In addition to enabling customers to seek competitive pricing on traditional energy commodities, World Energy is taking a leadership position in the emerging environmental-commodities markets. Its award-winning World Green Exchange(R) supports the ground-breaking Regional Greenhouse Gas Initiative’s (RGGI) cap and trade program for CO2 emissions. For more information, please visit www.worldenergy.com.

This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to: our revenue is dependent on actual future energy purchases pursuant to completed procurements; the demand for our services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; we depend on a small number of key energy consumers, suppliers and channel partners; there are factors outside our control that affect transaction volume in the electricity market; and there are other factors identified in our Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.

Royale Energy, Inc. (ROYL) Discovers New Natural Gas Field

Oct. 15, 2009 (Business Wire) — Royale Energy, Inc. (NASDAQ:ROYL) announces that after reaching a total depth of 6200 feet, it has set pipe on what the company believes to be a significant new discovery.

The Goddard 7-1 which commenced drilling on September 23^rd was located one mile north of the boundary of the company’s successful Lonestar field. The well was drilled to test a significant 3D seismic amplitude at a previously unexplored depth. At this depth the well encountered higher pressure than those produced in the Lonestar field increasing the expected rate of gas recovery.

This new field discovery provides Royale Energy with significant new development opportunities to increase its production and natural gas reserves. Current prices for its PG&E citygate is $5.04 MCF. The Company has 2,000 MCF per day sold through December 2009 at $4.85 MCF.

About the Company

Headquartered in San Diego, Royale Energy, Inc. is an independent energy company. The company is focused on development, acquisition, exploration, and production of natural gas and oil in California, Texas and the Rocky Mountains. It has been a leading independent producer of oil and natural gas for over 20 years. The company’s strength is continually reaffirmed by investors who participate in funding over 50% of the company’s new projects. Additional information about Royale Energy, Inc. is available on its web site at www.royl.com.

Forward Looking Statements

In addition to historical information contained herein, this news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, subject to various risks and uncertainties that could cause the company’s actual results to differ materially from those in the “forward-looking” statements. While the company believes its forward looking statements are based upon reasonable assumptions, there are factors that are difficult to predict and that are influenced by economic and other conditions beyond the company’s control. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the company with the Securities and Exchange Commission.

BioMimetic Therapeutics (BMTI) Announces Positive Top-Line Data from its Augment(TM) Bone Graft North American Pivotal Trial

Oct. 13, 2009 (Business Wire) — BioMimetic Therapeutics, Inc. (NASDAQ: BMTI) today announced positive top-line results from its North American pivotal (Phase III) randomized controlled trial comparing its fully synthetic, off-the-shelf bone growth factor product, Augment Bone Graft (“Augment”), to autograft for use in hindfoot and ankle fusion surgery. The primary study goal was to establish non-inferiority of Augment compared to autograft. Autograft is the historical standard of care but has the limitation that it must be obtained and transplanted from another bone in the patient’s body, often requiring a second surgical procedure. These positive top-line results indicate that, with the use of Augment, patients can expect a comparable treatment outcome while being spared the pain and potential morbidity associated with traditional autograft bone harvesting and transplantation.

Study Results

For the primary endpoint, the percent of subjects achieving fusion as defined by 50% or greater bone bridging on CT scans at 24 weeks, patients treated with Augment experienced a similar fusion rate (61.2%) compared with those receiving autograft (62.0%), which met non-inferiority (p=0.037; n=397 patients). Since many patients had multiple joints treated, analysis was also performed on a per joint basis. Non-inferiority was also established on a per joint basis, with 66.5% of joints treated with Augment fused on CT scans compared to 62.6% of joints treated with autograft (p=<0.001; n=597 joints).

In the key clinical, secondary endpoints, the healing (union) rate was 83.1% for Augment compared to 83.9% for autograft at 24 weeks (p=0.008; n=397). The delayed/nonunion rates (lower rates are better) were 8.8% for Augment and 10.2% for autograft (p=0.008). The remaining patients were judged by the investigators to be progressing to healing but were not able to be definitively diagnosed. Infection rates also tended to be lower for Augment (7.3%) compared to autograft (9.5%; p=0.011). Pain at the autograft donor site was present in 95.6% of autograft patients, while Augment patients do not require a donor site. Substantial pain at the autograft donor site (at least 20mm on VAS pain scale) was present at six months in 12.4% of the patients treated with autograft and none of the Augment patients. These findings demonstrate that patients treated with Augment can expect clinical results as good as if they had been treated with autograft, while being spared the pain and potential for additional surgical and post-operative complications resulting from the extra surgical procedure often required to harvest the autograft.

Seventy-five percent (75%) of patients in both groups had one or more risk factors for poor healing. There were no significant differences in the frequency of serious adverse events between the Augment and autograft treated patients. Finally, analysis of human anti-PDGF antibodies indicated only 13% of Augment patients experienced antibody formation at any time point, which dropped to 3.9% at six months. Additionally, 3.5% of autograft patients also had anti-PDGF antibodies. Most importantly, none of the antibodies in either group was neutralizing.

The data above reflect the results of the 397 patient “modified intent-to-treat” (mITT) study population. Thirty-seven (37) patients were excluded from this analysis, 21 of which were randomized but never treated and 16 which had major protocol deviations which were prospectively identified (e.g. midfoot fusions even though these were a specific exclusion criteria). Thus, the mITT population represents over 90% of all randomized patients and over 95% of all treated patients.

On a strict intent-to-treat (ITT) population in which those patients who were randomized but never treated are counted as automatic failures, 24 week fusion rates on CT scans were 57.9% for patients randomized to Augment and 60.4% for patients randomized to autograft (p=0.065; n=434). On a per joint basis the CT fusion rate was 65.2% for Augment compared to 64.6% for autograft (p=0.004; n=631). Clinical union rate for the ITT population was 79.6% for the Augment group and 79.2% for the autograft group (p=0.004; n=434). The delayed/nonunion rate on the ITT population was 8.1% in the Augment group and 10.7% for the autograft group (p=0.015; n=434).

Medical Need

“We are excited that our pioneering work at BioMimetic on ways to improve orthopedic and dental tissue regeneration has again translated into a potential new treatment option for patients with significant debilitating injuries or diseases,” said Dr. Samuel Lynch, president and CEO of BioMimetic Therapeutics. “These top-line data demonstrate a consistent picture that Augment is at least as efficacious as autograft, while also having the benefit of sparing patients the pain and potential morbidity resulting from autograft bone harvesting and transplantation to the fusion site. We look forward to sharing these positive pivotal trial data with the FDA. Finally, I’d like to once again acknowledge the work of our investigators and thank them for their excellent execution of this complex and rigorous trial.”

“These top-line results are very exciting,” said Dr. Christopher DiGiovanni, principal investigator for the Augment trial and professor of orthopaedic surgery and chief of the division of foot and ankle surgery in the department of orthopaedic surgery at the Warren Alpert School of Medicine at Brown University, Rhode Island Hospital. “The data available thus far support the primary objective of the study which is to find a safe and effective alternative to autograft in foot and ankle fusion surgeries. Should Augment receive FDA approval based on the full data set, I believe it will be widely used by practicing foot and ankle surgeons anxious to spare patients all the pain, potential morbidity, and extra surgical and anesthesia time associated with traditional autograft bone harvest. I look forward to having Augment available for use in patients.”

Joint fusion is the standard surgical treatment for chronic pain in the foot and ankle. This pain is often caused by arthritis, joint instability and congenital defects. The current gold standard for fusion involves the use of autograft, which is bone taken from another location in the patient’s body. While effective, the use of autograft creates significant morbidities at a previously asymptomatic harvest site. Some of these morbidities include severe pain, serious infection, numbness and increased anesthesia time. Autograft also incurs a financial burden when operating room time, instrument cost, anesthesia cost and surgeon charges are considered. Therefore it is of great value to the surgical community to find a safe and effective off-the-shelf alternative to autograft.

Study Design

The Augment North American pivotal trial is a prospective, randomized, blinded, controlled study providing a head-to-head comparison of Augment to autograft for use in hindfoot and ankle fusion surgery. Treatment was randomized 2:1, Augment to autograft, and the randomization was stratified for two variables, hindfoot vs. ankle procedures and risk factor vs. no risk factor. Risk factors included diabetes, smoking or recent history of smoking and obesity (BMI> 30kg/m²).

Thirty-seven sites in the United States and Canada participated in the study, enrolling a total of 434 patients. Patient enrollment was completed at the end of December 2008. The results announced today are through 24 weeks after treatment surgery which is the time of assessment of the primary endpoint, but all study patients will be followed through a final 52 week visit. The study is designed to demonstrate non-inferiority between Augment Bone Graft and autograft.

All p values reported in this release are derived from non-inferiority analyses. Analysis of the complete data set will continue for some time. A substantial amount of data in addition to the top-line data announced today will be included in the Company’s PMA submission, which is expected to be filed with the FDA within the next three months.

Conference Call and Webcast

BioMimetic will be hosting a conference call and webcast on October 13, 2009 at 6:30 EDT to discuss the study results. A live webcast of the conference call will be available on the Investor Relations section of BioMimetic’s website at www.biomimetics.com. The webcast will be archived on the website for at least 30 days.

The conference call may be accessed on October 13, 2009 by dialing 888-679-8018 (passcode 32982191). The international dial in number is 617-213-4845, and the same passcode applies. Participants should dial in 10 minutes prior to the call if they have not pre-registered.

About Augment Bone Graft

Augment consists of a combination of a sterile solution of 0.3mg/ml purified recombinant human platelet-derived growth factor BB (rhPDGF-BB) and a synthetic tricalcium phosphate (TCP) bone matrix. The rhPDGF-BB functions to recruit the bone healing cells and new blood vessels to the site of injury through processes termed chemotaxis, mitogenesis and angiogensis, while the TCP acts as a scaffold or lattice for the deposition of new bone. A similar product successfully developed by BioMimetic (GEM 21S) has already been FDA approved for bone and periodontal regeneration in the jawbone.

About BioMimetic Therapeutics

BioMimetic Therapeutics is a biotechnology company utilizing purified recombinant human platelet-derived growth factor (rhPDGF-BB) in combination with tissue specific matrices as its primary technology platform for promotion of tissue healing and regeneration. rhPDGF-BB is a synthetic copy of one of the body’s principal agents to stimulate and direct healing and regeneration. The mechanism of action of this platform technology suggests it may be effective in a broad array of musculoskeletal applications, including the repair of bone, ligament, tendon and cartilage. Through the commercialization of this technology, BioMimetic seeks to become the leading company in the field of orthopedic regenerative medicine. BioMimetic received marketing approval from the FDA for its first product, GEM 21S®, as a grafting material for bone and periodontal regeneration following completion of human clinical trials, which demonstrated the safety and efficacy of the rhPDGF-BB platform technology. Additionally, BioMimetic Therapeutics has completed and ongoing clinical trials with its product candidates Augment and Augment Injectable in multiple orthopedic bone healing indications including the treatment of foot and ankle fusions and the stimulation of healing of fractures of the wrist.

GEM 21S is a trademark of Luitpold Pharmaceuticals, Inc., who now owns this dentally related product and markets it through its Osteohealth Company in the United States and Canada.

For further information, visit www.biomimetics.com or contact Kearstin Patterson, corporate communications, at 615-236-4419.

Forward-looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current intent and expectations of the management of BioMimetic Therapeutics. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. There are many important factors that could cause actual results to differ materially from those indicated in the forward-looking statements. BioMimetic Therapeutics’ actual results and the timing and outcome of events may differ materially from those expressed in or implied by the forward-looking statements because of risks associated with the marketing of BioMimetic Therapeutics’ product and product candidates, unproven preclinical and clinical development activities, regulatory oversight and approval, and other risks detailed in BioMimetic Therapeutics’ filings with the Securities and Exchange Commission. Companies in the biotechnology industry have suffered significant setbacks in advanced or late-stage clinical trials, even after obtaining promising earlier trial results or in preliminary findings for such clinical trials. Even if favorable data is generated by clinical trials of medical devices, the FDA may not accept or approve a PMA filed by a biotechnology company for such medical devices. Any failure by BioMimetic Therapeutics to obtain FDA approval of Augment, or any of its other product candidates, in a timely manner, or at all, will severely undermine its business and results of operation. Except as required by law, BioMimetic Therapeutics undertakes no responsibility for updating the information contained in this press release beyond the published date, whether as a result of new information, future events or otherwise, or for changes made to this document by wire services or Internet services.

LJ International (JADE) Provides Third-Quarter Financial Guidance, Previews ENZO Expansion Strategy

Oct. 13, 2009 (Business Wire) — LJ International Inc. (LJI) (NASDAQ: JADE), a leading jewelry manufacturer and retailer, today announced revenue and earnings guidance for the third quarter ended September 30, 2009, as well as previewing its retail expansion plans over the next two years.

LJI Provides Positive Revenue and Earnings Guidance for Third Quarter 2009

The Company today announced that it expects revenues for the third quarter ended September 30, 2009 to total over $25.0 million, approximately 22% below revenues of $32.9 million reported in the third quarter of 2008. As expected, the 40% decrease in wholesale revenues was due to the ongoing recession in the U.S. The decline is expected to be offset by an approximate 25% increase in revenues from the Company’s ENZO division to over $11 million.

Accordingly, the Company expects to achieve earnings in the 2009 third quarter of over $1.0 million, or between $0.03-$0.05 per fully diluted share, compared to earnings of approximately $0.4 million, or $0.02 per share in the third quarter of 2008.

The Company noted that its third-quarter 2009 results will reflect two major trends in the jewelry market and in LJI’s execution of its growth strategy. One of these trends, the sharp decline in consumer spending on luxury items, particularly in the U.S., produced commensurate year-over-year declines in LJI’s wholesale revenues, which have historically been generated from North America. The other trend is the accelerating growth of ENZO’s retail business in China, which is expected to be reflected by year-over-year revenue gains of approximately 25%. In the coming quarters, the Company expects its retail growth to increase as wholesale revenues stabilize while maintaining profitability.

Company Expects to Open 100 New ENZO Retail Stores as Part of Expansion Strategy

The Company also provided a preview of its updated ENZO expansion plans, which will be discussed in more detail in upcoming investor communications and in a special letter to shareholders also being released today. It reaffirmed its commitment to a global growth strategy based on the same “two-pronged” approach that has guided the Company in recent years: ENZO’s retail expansion across China while maintaining its global wholesale market position.

As part of this expansion plan, the Company today announced that it expects to open approximately 100 new ENZO stores across China by the end of 2011. ENZO, as a result, would likely represent the largest contributor of both revenues and earnings to the Company. LJI’s historically strong cash position, minimal long-term debt and growing fundamentals should provide the Company with the ability to access the additional necessary financing to meet this goal.

Yu Chuan Yih, LJ International’s Chairman and CEO, noted that, “Although the company’s wholesale business has slimmed-down but remains healthy as a result of the global downturn in jewelry sales, it is uniquely positioned to continue to maintain and capture additional market share from its wholesale competitors, some of which have not been so fortunate to survive the recent economic turmoil. While our wholesale operations are profitable and positioned to gain market share following a recovery in the U.S. economy, there is no question that our diversification strategy away from the U.S. markets and into China’s growing retail business is already beginning to contribute to our revenue and earnings growth.”

ENZO’s Same-Store-Sales Growth Being Driven by Three Key Performance Indictors

The Company noted that its ENZO retail division is continuing to expand at a healthy pace despite the global recession due to its focus on the growing Chinese market. China’s strong economic growth has resumed after a lull — though not a recession — in early 2009. LJI’s ENZO division, with 92 stores now in operation, achieved a year-over-year revenue gain of nearly 25% primarily due to improvements and relocations of a number of underperforming stores. For the first nine months of 2009, average sales per square foot at ENZO increased year-over-year by over 50%, to over $850 per square foot.

However, the growth rate across its 39 stores that have been open for at least 20 consecutive months, which constitute the Company’s comps base — is achieving same-store sales growth rates of over 30% and sales of nearly $1,300 per square foot. The Company noted these growth rates were primarily due to three key performance measures: increased store traffic, higher average unit prices and ongoing improvements in its inventory mix.

Mr. Yih continued, “Productivity improvements at our ENZO stores have reached the point where an average new store will likely achieve profitability within two to three months following its opening date. Based on current trends, we expect our new ENZO stores to contribute positively to our overall financial results.”

Company to Present Corporate Expansion Strategy at Roth China Conference on October 13

LJI will be presenting further details on its expansion plans and other aspects of its business outlook at the 2009 Roth Capital Partners China Conference, October 12 through 14 at the Fontainebleau Miami Beach, Miami Beach, Florida. For more information on this event, please visit www.roth.com/main/Page.aspx?PageID=7220.

To be added to LJI’s investor lists, please contact Haris Tajyar at htajyar@irintl.com or at 818-382-9702.

About LJ International

LJ International Inc. (LJI) (NASDAQ: JADE) is engaged in the designing, branding, marketing and distribution of a full range of jewelry. It has built its global business on a vertical integration strategy and an unwavering commitment to quality and service. Through its ENZO stores, LJI is now a major presence in China’s fast-growing retail jewelry market. As a wholesaler, it distributes to fine jewelers, department stores, national jewelry chains and electronic and specialty retailers throughout North America and Western Europe. Its product lines incorporate all major categories, including earrings, necklaces, pendants, rings and bracelets.

Forward-looking Statements

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. LJ International (“Company”) cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this Press Release or made by the Company’s management involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond the Company’s control. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” and similar expressions may identify forward-looking statements. The following factors, in addition to those included in the Company’s filings with the Securities and Exchange Commission (SEC), in some cases have affected and in the future could cause the Company’s actual results, such as its ability to open approximately 100 new ENZO retail stores by the end of 2011 as well as its financial guidance for both the third quarter of 2009 and beyond, to differ materially from those expressed or implied in any of the forward-looking statements included in this Press Release or otherwise made by management: the current global financial crisis and general economic conditions; changes in consumer spending patterns and consumer preferences; the effects of political and economic events and conditions in the U.S., China as well as other foreign jurisdictions in which the Company operates, including, but not limited to; the impact of competition and pricing; market price of key raw materials; ability to source or purchase raw materials, gemstones and other precious or semi-precious metals from its global supplier base; political instability; currency and exchange risks and changes in existing or potential duties, tariffs or quotas; availability of suitable store locations at appropriate terms; ability to develop new merchandise; ability to hire, train and retain associates; estimates of expenses which the Company may incur in connection with the closure of any underperforming ENZO stores and related direct-to-consumer operations; and the outcome of any pending or future litigation. Future economic and industry trends, both in the jewelry industry as well as geographically in the U.S. and China, which could potentially impact revenue and profitability, are difficult to predict. Therefore, there can be no assurance that the forward-looking statements included in this Press Release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other person, that the Company’s expansion plans, particularly its goal to open approximately 100 new ENZO stores by the end of 2011, will be achieved. The forward-looking statements herein are based on information presently available to the management of the Company. Except as may be required by applicable law, the Company assumes no obligation to publicly update or revise its forward-looking statements.

Sinovac (SVA) Receives Certificate of Approval to Distribute Panflu (H5N1) Vaccine in Hong Kong

BEIJING, Oct. 13, 2009 (PRNewswire-Asia) — Sinovac Biotech Ltd. (NYSE Amex: SVA), a leading developer and provider of vaccines in China, announced today that its wholly-owned subsidiary, Sinovac Biotech (Hong Kong) Ltd, has received the Certificate of Approval to distribute Panflu(TM) (H5N1), its H5N1 (bird flu) pandemic influenza vaccine, in Hong Kong. The certificate is valid through September 13, 2014 and thereafter will be renewable for periods of five years at a time, subject to payment of the registration fee.

Sinovac Biotech (Hong Kong) Ltd, was established in October 2008 to focus on registering and distributing Sinovac’s vaccines in Hong Kong and seeking vaccine R&D opportunities in Hong Kong. In the coming months, the Company plans to submit applications in Hong Kong for approval for its Panflu.1 (H1N1) and Anflu vaccines.

Mr. Weidong Yin, Chairman, President and CEO of Sinovac, commented, “We are pleased to receive approval to market Panflu in Hong Kong, as it represents an opportunity to significantly expand our market reach. In working closely with Hong Kong officials on regulatory approval for Panflu, we have gained knowledge about the regulatory process there and plan to submit applications in the near future for additional vaccines, specifically Panflu.1 for swine flu and Anflu. And at the same time, Hong Kong officials have gained an overall understanding of the quality of Sinovac’s product. The approval in Hong Kong for Panflu is a significant step in our mission to distribute our affordable, high-quality and safe vaccines on a global basis.”

About Sinovac

Sinovac Biotech Ltd. is a China-based biopharmaceutical company that focuses on the research, development, manufacture and commercialization of vaccines that protect against human infectious diseases. Sinovac’s vaccine products include Healive(R) (hepatitis A), Bilive(R) (combined hepatitis A and B), and Anflu(R) (influenza). Panflu(TM), Sinovac’s pandemic influenza vaccine (H5N1), has already been approved for government stockpiling. Sinovac is developing vaccines for enterovirus 71, universal pandemic influenza, Japanese encephalitis, and human rabies. Its wholly owned subsidiary, Tangshan Yian, is conducting field trials for independently developed inactivated animal rabies vaccines.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by words or phrases such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this press release contain forward-looking statements. Statements that are not historical facts, including statements about Sinovac’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Sinovac does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Timberline (TLR) Increases Gold Mineralization Estimate at Its Butte Highlands Gold Project

COEUR D’ALENE, Idaho, Oct. 13, 2009 (GLOBE NEWSWIRE) — Timberline Resources Corporation (NYSE Amex:TLR) (“Timberline”) announced today that it has completed an updated calculation of the estimated gold mineralization at its Butte Highlands Gold Project joint venture.

Timberline has analyzed recent and historical drilling results in conjunction with an updated interpretation of the geologic model to arrive at these new mineral estimates. The mineralized envelopes generating these estimates are based on drill intercepts with greater than 0.10 ounces per ton of gold over a 10-foot interval. The estimated mineralized material has been classified as shown below:

                                         Estimated
                                         Gold Grade      Estimated
                           Estimated      (Ounces          Gold
     Description              Tons        per ton)     Mineralization
 Mineralized Material
  (Measured & Indicated)   1,152,111      0.28 opt     322,972 ozs.

 Mineralized Material
  (Inferred)               1,715,711      0.25 opt     435,974 ozs.

Paul Dircksen, Timberline’s Executive Chairman and Vice-President of Exploration, commented, “These new resource estimates increase our total anticipated mineralization at Butte Highlands to over 750,000 ounces of gold at an overall grade of 0.26 ounces per ton. This indicates an increase of more than 40% over the historical resource calculations done by Orvana Minerals, including a 65% increase in the measured and indicated ounces. This additional mineralization is expected to significantly increase our mine life, and there is still the possibility of increasing the mineralization and the mine life as we get into production.”

Mr. Dircksen added, “We are very confident in this analysis which was done by our Timberline team in conjunction with mine engineers at our joint venture partner, Small Mine Development. In addition to the data used to generate these new estimates, we have just completed five additional exploration core holes on the property, and the final samples from this drilling are expected to be shipped to the assay lab this week. We plan to provide a summary of our drill results from our 2009 drill program once we have received the assay results.”

More information and photos are available on the company’s web site at www.timberline-resources.com.

Timberline Resources Corporation is a diversified gold company comprised of three complementary business units: a mine in production with upcoming gold production, exploration, and drilling services. Its unique, vertically-integrated business model provides investors exposure to gold production, the “blue sky” potential of exploration, and the “picks and shovels” aspect of the mining industry. Timberline has contract core drilling subsidiaries in the western United States and Mexico and an exploration division focused on district-scale gold projects with the potential for near-term, low-cost development. The Company has formed a 50/50 joint venture with Highland Mining, LLC, an affiliate of Small Mine Development, LLC, at its Butte Highlands Gold Project and has begun development in 2009. Timberline is listed on the NYSE Amex and trades under the symbol “TLR”.

Cautionary Note to U.S. Investors – All mineral resources have been estimated in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in National Instrument 43-101, commonly referred to as NI 43-101 as required by Canadian Securities Administrators. U.S. reporting requirements for disclosure of mineral properties are governed by the United States Securities and Exchange Commission (SEC) Industry Guide 7. Canadian and Guide 7 standards are substantially different. The SEC permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. SEC guidelines strictly prohibit terms that are not defined in Industry Guide 7, such as “resources,” “geologic resources,” “proven,” “probable,” “measured,” “indicated,” and “inferred,” from being included in Issuer’s reports and registration statements filed with the SEC. U.S. investors should be aware that the Company has no “reserves” as defined by Guide 7 and are cautioned not to assume that any part or all of mineral resources will ever be confirmed or converted into Guide 7 compliant “reserves.” Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute Guide 7 compliant “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures.

Statements contained herein that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the Company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties, including but not limited to the Company’s 50/50 joint venture with Highland Mining LLC, the development and production of the Company’s Butte Highlands project, and the Company’s expected operations in 2009. When used herein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “intend” and “expect” and similar expressions, as they relate to Timberline Resources Corporation, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, such factors, including risk factors, discussed in the Company’s Annual Report on Form 10-KSB for the year ended September 30, 2008. Except as required by the Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements.

Corcept Therapeutics (CORT) Announces Pricing of Private Placement Cash Sufficient to Fund Company Through Corlux NDA Submission

MENLO PARK, CA — (Marketwire) — 10/13/09 — Corcept Therapeutics Incorporated (NASDAQ: CORT), a pharmaceutical company engaged in the development of drugs for the treatment of severe metabolic and psychiatric disorders, today announced that it has entered into a definitive agreement with certain existing investors, including Longitude Capital Management, Sutter Hill Ventures and Alta Partners, and new investors including Federated Kaufmann Funds to raise approximately $18 million in gross proceeds in a private placement through the sale of shares of its common stock and warrants.

Corcept intends to use the net proceeds from the offering to fund the completion of enrollment in its Phase 3 trial of CORLUX© for Cushing’s Syndrome and the submission of its Cushing’s Syndrome NDA, as well as for general corporate purposes, including working capital.

Corcept has entered into a securities purchase agreement pursuant to which it has agreed to sell an aggregate of up to approximately 12.6 million units for $1.43 per unit. The units purchased will consist of one share of the Company’s common stock and one warrant to purchase 0.35 shares of the Company’s common stock at a per share exercise price of $1.66. Units will not be issued or certificated. The shares of common stock and the warrants are immediately separable and will be issued separately, but will be purchased together in this offering. The warrants will have a three year term. The closing of the transaction is expected to occur on or about October 16, 2009, subject to the satisfaction of specified closing conditions. Thomas Weisel Partners LLC acted as exclusive placement agent for the offering.

The shares and warrants sold in the private placement and the shares issuable upon the exercise of the related warrants have not been registered under the Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States without being registered with the Securities and Exchange Commission (“SEC”) or through an applicable exemption from SEC registration requirements. The shares and warrants were offered and sold only to accredited investors. Corcept has agreed to file a registration statement with the SEC covering the resale of the shares issued in the private placement and the shares issuable upon the exercise of the warrants.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. Any offering of Corcept Therapeutics Incorporated common stock under the resale registration statement will be made only by means of a prospectus.

Statements made in this news release, other than statements of historical fact, are forward-looking statements, including, for example, statements relating to Corcept’s clinical development programs, its spending plans, including the intended use of the proceeds from the financing and for the timing of the closing of the financing. Forward-looking statements are subject to a number of known and unknown risks and uncertainties that might cause actual results to differ materially from those expressed or implied by such statements. For example, there can be no assurances with respect to the commencement, pace of enrollment, cost, rate of spending, completion or success of clinical trials; there can be no assurance with respect to the consummation of financing activities; financial projections may not be accurate; there can be no assurances that Corcept will pursue further activities with respect to the clinical development of CORLUX. These and other risk factors are set forth in the Company’s SEC filings, all of which are available from our website (www.corcept.com) or from the SEC’s website (www.sec.gov). We disclaim any intention or duty to update any forward-looking statement made in this news release.

AVANIR Pharmaceuticals (AVNR) Presents Detailed Zenvia Confirmatory Phase III Results

Oct. 13, 2009 (Business Wire) — AVANIR Pharmaceuticals, Inc. (NASDAQ: AVNR) today announced detailed results from the confirmatory double-blind Phase III STAR trial evaluating two doses of the investigational drug Zenvia™ (dextromethorphan/quinidine) compared to placebo in the treatment of pseudobulbar affect (PBA) in patients with underlying multiple sclerosis (MS) or amyotrophic lateral sclerosis (ALS). Over the course of the 12-week study, Zenvia 30/10 mg and 20/10 mg met the primary efficacy endpoint by reducing PBA episode rates by an incremental 47.2% and 47.8% respectively, beyond placebo (p<0.0001). These results were presented today during a late-breaker poster session at the 134th Annual Meeting of the American Neurological Association in Baltimore, MD (Poster Number: WIP-24).

EFFICACY HIGHLIGHTS

• Both the Zenvia 30/10 mg and 20/10 mg groups met the primary efficacy endpoint by demonstrating a significant reduction in daily PBA episode rates relative to the placebo group
• The proportion of patients with complete remission of PBA episodes was significantly greater in both Zenvia treatment groups versus placebo
• The percent of days that were episode-free was significantly higher in the Zenvia groups versus placebo
• Zenvia 30/10 mg demonstrated statistical superiority in time to onset of clinically meaningful effect
• Both Zenvia groups demonstrated a greater proportion of patients versus placebo that achieved response thresholds of 50%, 75% and 90% improvement
• Mean reduction from baseline in CNS-LS score was significantly greater for both Zenvia treatment groups than in the placebo group
• Zenvia 30/10 mg demonstrated significantly greater mean improvement in SF-36 Mental Health Summary scores compared to placebo
• Zenvia 30/10 mg demonstrated significantly greater mean improvement in Beck Depression Inventory scores compared to placebo

In an additional analysis of the primary endpoint pre-specified in the protocol, the percentage of patients that achieved and maintained complete episode remission during the last 14 days of the study was 76% in the Zenvia 30/10 mg group, 80% in the 20/10 mg group and 61% in the placebo group (p=0.0024 and p=0.0001).

p<0.0001 for overall treatment effect throughout the entire study. ^aITT = intent-to-treat population, refers to all patients randomized.

A 30% decrease from baseline in number of PBA episodes was considered to indicate the onset of a clinically meaningful effect. At day 15, the earliest time point assessed, 72% of patients in the Zenvia 30/10 mg group had experienced an onset of meaningful effect compared to 59% in the placebo group (p<0.0358). The difference between the Zenvia 20/10 mg and placebo groups showed a trend for a higher proportion in the 20/10 mg group.

“Frequent, unrelenting and unpredictable emotional outbursts may occur in progressive neurological conditions, such as ALS, MS, and dementia, or strokes and traumatic brain injuries. The results of the STAR trial indicate that the new low dose formulations of Zenvia can dramatically reduce the debilitating episodes of PBA and may one day help improve the lives of these patients,” said Benjamin Rix Brooks, MD, Director of Carolinas Neuromuscular/ALS-MDA Center and Steering Committee Member for the STAR trial.

“We were thrilled with the Zenvia clinical profile that emerged in the STAR trial,” said Randall Kaye, MD, AVANIR’s Chief Medical Officer. “The data demonstrated a profound treatment effect across multiple efficacy measures in PBA combined with an improved safety and tolerability profile relative to the previous formulation. With the STAR trial data in hand, our team is now working to expeditiously assemble and submit our full response to the FDA approvable letter with the objective of securing approval in the second half of 2010.”

ADDITIONAL EFFICACY RESULTS

An important efficacy secondary endpoint analysis was based on the change from baseline to end of study using the Center for Neurologic Studies Lability Scale (CNS-LS). The CNS-LS is a validated instrument measuring the frequency and severity of PBA, where a higher score indicates more severe PBA. Additional secondary endpoints included the Neuropsychiatric Inventory Questionnaire (NPI-Q) and the Beck Depression Inventory (BDI-II). No worsening of NPI-Q scores was demonstrated relative to placebo. Data from these secondary efficacy endpoints are summarized in the following table:

^aITT = intent-to-treat population, refers to all patients randomized. ^bn/s = non-statistically significant.

An additional secondary endpoint was the SF-36 Health Status Survey, a validated scale used to assess mental and physical health where a 3-point increase is considered a clinically meaningful improvement. Quality of life was improved for Zenvia 30/10 mg treated patients as indicated by improvements over placebo in the SF-36 Mental Summary Score, Social Functioning, Mental Health and Bodily Pain sub-domain scores. SF-36 data are summarized below:

^aITT = intent-to-treat population, refers to all patients randomized. ^bn/s = non-statistically significant.

SAFETY AND TOLERABILITY RESULTS

Overall, Zenvia was generally safe and well tolerated in this study. In the STAR trial, 91.8%, 82.2% and 86.2% of patients completed the 12-week double blind phase of the study in the Zenvia 30/10 mg, Zenvia 20/10 mg and placebo groups, respectively. The most common reason for early withdrawals was due to adverse events (AEs) with 3.6%, 7.5% and 1.8% for the Zenvia 30/10 mg, Zenvia 20/10 mg and placebo groups discontinuing due to AEs, respectively. Reported AEs were generally mild to moderate in nature and the most commonly reported adverse events reported more frequently for Zenvia than placebo were dizziness (18.7%, 10.8%, 5.7%), nausea (13.1%, 7.8%, 9.4%) and diarrhea (10.3%, 13.7%, 6.6%) for Zenvia 30/10 mg, Zenvia 20/10 mg and placebo, respectively. While commonly reported, falls, headache, somnolence and fatigue were no different than placebo. The proportion of patients reporting at least one serious adverse event (SAE) was 7.3% in the Zenvia 30/10 mg group, 8.4% in the Zenvia 20/10 mg group and 9.2% in the placebo group. During the course of the study there were no clinically meaningful changes in QT interval, no reported pro-arrhythmic events, no reports of any cardiovascular SAEs and no new cardiovascular safety signals were observed. Seven deaths were reported and all occurred in patients with ALS (3 in each of the Zenvia groups and 1 in the placebo group). All deaths were associated with respiratory depression, respiratory failure, and/or progression of ALS.

STAR TRIAL DESIGN

The STAR (Safety, Tolerability and Efficacy Results of AVP-923 in PBA) trial is a confirmatory Phase III trial of Zenvia in patients with pseudobulbar affect (PBA). The randomized, multi-center, international STAR trial compares active treatment with Zenvia 30/10 mg BID and Zenvia 20/10 mg BID to placebo during a 12-week, double-blinded phase, followed by a 12-week, open-label safety extension study. At the conclusion of enrollment, AVANIR had enrolled a total of 326 patients (197 with underlying ALS and 129 with underlying MS) who exhibited signs and symptoms of PBA across 62 sites in the U.S. and Latin America. A total of 110, 107 and 109 patients were randomized to the Zenvia 30/10 mg group, the Zenvia 20/10 mg group and the placebo group, respectively. The primary efficacy analysis is based on the changes in crying/laughing episode rates recorded in patient diaries. Secondary endpoints for this clinical trial include: 1) Center for Neurologic Study-Lability Scale (CNS-LS) score; 2) Neuropsychiatric Inventory Questionnaire (NPI-Q); 3) SF-36 Health Survey; 4) Beck Depression Inventory (BDI-II); and 5) Pain Rating Scale score (MS patients only). Safety and tolerability of Zenvia are determined by reporting adverse events, physical exam, vital signs, electrocardiogram, respiratory function tests and clinical assessment of clinical laboratory variables. The STAR trial is being conducted under a Special Protocol Assessment (SPA) from the U.S. Food and Drug Administration (FDA). For more information visit www.pbatrial.com.

ABOUT PBA

Pseudobulbar affect (PBA), also known as emotional lability, is a neurologic disorder that occurs secondary to neurologic disease or brain injury causing sudden and unpredictable episodes of crying, laughing, or other emotional displays. PBA is estimated to impact approximately 2 million people in the United States with underlying neurologic conditions such as multiple sclerosis (MS), amyotrophic lateral sclerosis (ALS), Parkinson’s disease, dementias including Alzheimer’s disease, stroke, and traumatic brain injury. PBA episodes may occur when disease or injury damages the area of the brain that controls normal expression of emotion. This damage can disrupt brain signaling causing a “short circuit” and triggering involuntary PBA episodes. PBA has been shown to impair the lives of patients in both social and occupational settings. There are currently no FDA approved treatments for PBA.

ABOUT ZENVIA

Zenvia™ (dextromethorphan/quinidine) is a combination of two well-characterized compounds: the therapeutically active ingredient dextromethorphan and the enzyme inhibitor quinidine, which serves to increase the bioavailability of dextromethorphan. This first-in-class drug candidate is believed to help regulate excitatory neurotransmission in two ways: through pre-synaptic inhibition of glutamate release via sigma-1 receptor agonist activity and through postsynaptic glutamate response modulation via uncompetitive, low-affinity NMDA antagonist activity. Zenvia is being developed for the treatment of pseudobulbar affect (PBA) and has successfully completed a Phase III trial for diabetic peripheral neuropathic (DPN) pain. In October 2006, the Company received an approvable letter for Zenvia in the treatment of PBA. The Company conducted the STAR trial under a Special Protocol Assessment (SPA) agreement with the FDA with the goal of addressing safety concerns raised in the Agency’s approvable letter for Zenvia in the treatment of PBA. For more information about this trial visit http://www.pbatrial.com, and for more information about the Agency’s SPA process, see http://www.fda.gov/cder/guidance/3764fnl.htm. In addition, AVANIR has conducted a Phase III study of Zenvia in DPN pain where the primary endpoints were successfully met. Subsequently the Company released top-line results of a formal PK study that identified alternative lower-dose quinidine formulations of Zenvia for DPN pain intended to deliver similar efficacy and improved safety/tolerability versus the formulations previously tested for this indication. AVANIR is now engaged in discussions with the FDA under the SPA process regarding the design of the next Phase III study in DPN pain and overall program requirements.

ABOUT AVANIR

AVANIR Pharmaceuticals, Inc. is a biopharmaceutical company focused on acquiring, developing, and commercializing novel therapeutic products for the treatment of central nervous system disorders. AVANIR’s lead product candidate, Zenvia, is being developed for the treatment of pseudobulbar affect (PBA) and has successfully completed a Phase III trial for diabetic peripheral neuropathic (DPN) pain. AVANIR has licensed its MIF inhibitor program to Novartis International Pharmaceuticals Ltd. and has sold its anthrax monoclonal antibody program to Emergent BioSolutions. The Company’s first commercialized product, Abreva^® (docosanol), is marketed in North America by GlaxoSmithKline Consumer Healthcare and is the leading over-the-counter product for the treatment of cold sores. Further information about AVANIR can be found at www.avanir.com and further information about pseudobulbar affect can be found at www.PBAinfo.org.

FORWARD LOOKING STATEMENTS

Statements in this press release that are not historical facts, including statements that are preceded by, followed by, or that include such words as “estimate,” “intend,” “anticipate,” “believe,” “plan,” “goal,” “expect,” “project,” or similar statements, are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from the future results expressed or implied by such statements. For example, there can be no assurance that the U.S. Food and Drug Administration (FDA) will approve Zenvia for any indication, or that the Company will meet projected timelines. Risks and uncertainties affecting the Company’s financial condition and operations also include the risks set forth in AVANIR’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, and from time-to-time in other publicly available information regarding the Company. Copies of this information are available from AVANIR upon request. AVANIR disclaims any intent to update these forward-looking statements.

To be included on AVANIR’s e-mail alert list; click on the link below or visit AVANIR’s website: http://www.b2i.us/irpass.asp?BzID=958&to=ea&s=0

MDRNA, Inc. (MRNA) Reports UsiRNA Reduces Tumor Growth In Vivo

BOTHELL, WA–(Marketwire – 10/12/09) – MDRNA, Inc. (NASDAQ:MRNA – News), a leading RNAi-based drug discovery and development company, today presented new in vivo data demonstrating continued progress in the advancement of the Company’s oncology program. J. Michael French, President and CEO, reported that MDRNA’s UsiRNAs, delivered by the Company’s DiLA2 platform, down-regulated a previously “non-druggable” target with subsequent reductions in tumor growth in models of liver and bladder cancer via both systemic and local delivery.

In a presentation to BioPartnering Europe in London today, Mr. French said that MDRNA has demonstrated successful delivery of a UsiRNA targeting survivin, a protein involved in mitotic progression and inhibition of apoptosis, via intravenous administration using its DiLA2 liposome formulation in two liver cancer models. Knockdown ( > 60%) of survivin mRNA in a rodent orthotopic model was noted as early as 24 hours after a second (of six) dose and this was associated with an approximate 65% decrease in tumor weight at study termination; this decrease was comparable to tumor weight reduction with Avastin� (bevacizumab)-treated mice as a positive control. A similar level of survivin mRNA knockdown was noted in subcutaneously implanted liver tumors following intravenous administration of the UsiRNA/DiLA2 liposomes.

Data from an orthotopic bladder cancer model were also presented, in which localized application (intravesical dosing) of the survivin UsiRNA to a bladder tumor was performed using a DiLA2 liposome formulation. Again, the UsiRNA was highly active in providing gene silencing, demonstrating > 90% inhibition of survivin mRNA which was dose-dependent and sustained over at least a three week period. At study termination there was also a dose-dependent decrease in bioluminescence of up to approximately 90% in UsiRNA-treated mice which is a clear indication of reduced tumor growth.

Mr. French said, “We have always maintained that our RNAi discovery engine can generate novel compounds with broad therapeutic applicability. These data are a powerful indicator of the value and strength of that drug discovery platform and represents a significant step in the advancement of our product pipeline. Moreover, we now have evidence illustrating the potential role of RNAi-based therapeutics in down-regulating typically ‘non-druggable’ targets.”

The presentation given by Mr. French is posted on the Company website (www.mdrnainc.com).

About UsiRNAs

A UsiRNA is a duplex siRNA containing at least one Unlocked Nucleobase Analog (UNA). In a UsiRNA, UNAs are non-nucleotide monomers and synthesized much like RNA in the construction of a double-stranded oligonucelotide for use as an RNAi-based therapeutic. In the case of the UsiRNA, UNA is substituted for specific nucleotides in both the guide and passenger strands. UsiRNAs are fully recognized by the cellular RNAi machinery, as demonstrated by their potent activity. MDRNA has also shown that substitution of UNA for specific RNA increases stability to nucleases, substantially reduces cytokine induction, and reduces passenger and guide strand-mediated offtarget effects. The high potency, and improved drug-like properties, associated with UsiRNAs provide the potential to greatly enhance RNAi-based therapeutics.

About the DiLA2 Delivery Platform

The DiLA2 Delivery Platform is MDRNA’s proprietary platform for creating novel liposomal delivery systems based on di-alkylated amino acids (DiLA2). The DiLA2 Platform enables MDRNA to tailor the charge, linker length, and acyl chain characteristics to improve delivery of the liposomes to target tissue of interest. In vivo studies have demonstrated effective delivery in models of metabolic disease, cancer, and other diseases. DiLA2-based liposomes are well tolerated for repeat dose, and systemic and local administration. MDRNA is also utilizing condensing peptides to form peptide-siRNA nanoparticles to further increase the delivery efficiency of its DiLA2 delivery systems. In addition, the platform is designed to permit attachment of peptides and other targeting molecules for delivery to a variety of tissues, and thus provide for a diverse therapeutic portfolio.

About MDRNA, Inc.

MDRNA is a biotechnology company focused on the development and commercialization of therapeutic products based on RNA interference (RNAi). Our goal is to improve human health through the development of RNAi-based compounds and drug delivery technologies that together provide superior therapeutic options for patients. Over the past decade, we have developed substantial capabilities in molecular biology, cellular biology, lipid chemistry, peptide chemistry, pharmacology and bioinformatics, which we are applying to a wide range of RNAi technologies and delivery approaches. These capabilities plus the in-licensing of key RNAi-related intellectual property have rapidly enabled us to become a leading RNAi-based therapeutics company with a pre-clinical pipeline in oncology. Through our capabilities, expertise and know-how, we are incorporating multiple RNAi technologies as well as peptide- and lipid-based delivery approaches into a single integrated drug discovery platform that will be the engine for our clinical pipeline as well as a versatile platform for establishing broad therapeutic partnerships with biotechnology and pharmaceutical companies. We are also investing in new technologies that we expect to lead to safer and more effective RNAi-based therapeutics while aggressively building upon our broad and extensive intellectual property estate. By combining broad expertise in siRNA science with proven delivery platforms and a strong IP position, MDRNA is well positioned as a leading RNAi-based drug discovery and development company. Additional information about MDRNA, Inc. is available at http://www.mdrnainc.com.

MDRNA Forward-Looking Statements

Statements made in this news release may be forward-looking statements within the meaning of Federal Securities laws that are subject to certain risks and uncertainties and involve factors that may cause actual results to differ materially from those projected or suggested. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to: (i) the ability of MDRNA to obtain additional funding; (ii) the ability of MDRNA to attract and/or maintain manufacturing, research, development and commercialization partners; (iii) the ability of MDRNA and/or a partner to successfully complete product research and development, including preclinical and clinical studies and commercialization; (iv) the ability of MDRNA and/or a partner to obtain required governmental approvals; and (v) the ability of MDRNA and/or a partner to develop and commercialize products that can compete favorably with those of competitors. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in MDRNA’s most recent periodic reports on Form 10-K and Form 10-Q that are filed with the Securities and Exchange Commission. MDRNA assumes no obligation to update and supplement forward-looking statements because of subsequent events.

Shiner International, Inc. (BEST) Announces Receipt of Multi-Million Chinese Government Subsidy

HAINAN, China, Oct. 12 /PRNewswire-Asia/ — Shiner International, Inc. (Nasdaq: BEST – News; website: http://www.shinerinc.com ), a market leader in the food safe packaging and anti-counterfeiting packaging industries, today announced that the Company’s Packaging Industrial Park Project in Hainan was listed as a “Budgeted Investment Plan” by the Chinese central government and received a subsidy of 29 million RMB or approximately $4.26 million towards its construction.

“We are delighted that our project has been designated as a National Budgeted Investment Plan,” Mr. Jian Fu, Shiner’s CEO commented. “For quite some time, the Chinese domestic market has relied on the importing of high quality packaging films for high-end consumer products at great expense to Chinese manufacturers. In recent years, the central government has begun to realize the importance of domestically developed key technology products that utilize intellectual property that is developed and owned by Chinese companies such as Shiner. Recognizing that our Packaging Industrial Park Project will allow us to manufacture many of our patented products in a state of the art facility, the central government awarded us this subsidy. The funds received from the government will be used for the construction of infrastructures, improvement of capacity and recruitment of senior technical staff for the project. We believe the construction of this project, with the government’s assistance, will enable us to deliver quality products at competitive prices to new and existing customers in the domestic and international markets.”

About Shiner International, Inc.

NASDAQ listed Shiner International ( http://www.shinerinc.com ) is a U.S. corporation that has its primary operations in China. Headquartered in the city of Haikou — China’s “Hawaii” — Shiner’s products include coated packaging film, shrink-wrap film, common packaging film, anti-counterfeit laser holographic film and color-printed packaging materials. Approximately 60 percent of Shiner’s current customers are located in China, with the remainder spanning Southeast Asia, Europe, the Middle East and North America. Shiner holds 14 patents on products and production equipment, and has an additional eight patent applications pending. The Company’s coated films meat the approval of U.S. FDA requirements, as well as those required for food packaging sold in the EU. Shiner’s product manufacturing process is certified under ISO 9001:2000.

Safe Harbor Statement

All statements in this press release that are not historical are forward- looking statements made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Shiner International, Inc.’s current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Shiner’s filings with the Securities and Exchange Commission.

Raptor Pharmaceutical (RPTPD) Reports Positive Interim Phase 2a Clinical Data in Non-Alcoholic Steatohepatitis (NASH)

NOVATO, Calif., Oct. 12 /PRNewswire-FirstCall/ — Raptor Pharmaceutical Corp. (“Raptor” or the “Company”) (Nasdaq: RPTPD – News), announced positive findings from the completed treatment phase of its open-label Phase 2a clinical trial of delayed-release cysteamine bitartrate (“DR Cysteamine”) in adolescent patients with non-alcoholic steatohepatitis (“NASH”), a progressive form of liver disease believed to affect 2% to 5% of the U.S. population. At the completion of the initial six-month treatment phase, the study achieved the primary endpoint: mean blood levels of alanine aminotransferase (“ALT”), a common biomarker for NASH, were reduced by over 50%. Additionally, over half of the study participants had achieved normalized ALT levels by the end of the treatment phase.

There are no currently approved drug therapies for NASH, and patients are limited to lifestyle changes such as diet, exercise and weight reduction to manage the disease. DR Cysteamine represents an important potential treatment option for patients with NASH. Although NASH is most common in insulin-resistant obese adults with diabetes and abnormal serum lipid profiles, its prevalence is increasing among juveniles as obesity rates rise within this patient population. Although most patients are asymptomatic and feel healthy, NASH causes decreased liver function and can lead to cirrhosis, liver failure and end-stage liver disease.

Under a collaboration agreement between Raptor and the University of California, San Diego (“UC San Diego”), the open-label Phase 2a trial of a prototype formulation of DR Cysteamine is being conducted at UC San Diego’s General Clinical Research Center and entails six months of treatment followed by a six-month post-treatment monitoring period. Eligible patients with baseline ALT and aspartate aminotransferase (“AST”) measurements at least twice that of normal levels were enrolled to receive twice-daily, escalating oral doses of up to 1,000 mg of DR Cysteamine. The trial currently has enrolled eleven NASH patients between 11-18 years old. No major adverse events were reported during the six-month treatment phase. Trial subjects continue to be monitored during the six-month post-treatment period currently underway. Full results are being submitted for peer review by Raptor and UC San Diego, and are expected to be presented in 2010.

Joel Lavine, M.D., Ph.D., pediatric gastroenterologist at UC San Diego and principal investigator for the NASH study, stated, “We were encouraged by the results of this study. The degree of ALT and AST reductions are indicative of likely improvements in severity of fatty liver damage. The trial results are consistent with ALT and AST reductions normally seen in patients that achieve at least 10% weight loss, even though study participants did not show a significant change in body mass index. DR Cysteamine appears to be a promising candidate for NASH and we look forward to further analyzing these patients during the post-treatment phase.”

Raptor’s chief medical officer, Patrice Rioux, M.D., Ph.D., said, “These interim results have established proof-of-concept and support further clinical development of DR Cysteamine in NASH. This is an area of significant unmet need, especially with growing numbers of obese children diagnosed with the disorder. While the clinical hurdle is usually high for studies in children and adolescents, we are satisfied with the long-term safety demonstrated in this age group by the currently-marketed immediate-release cysteamine bitartrate formulation. This safety track record, coupled with our interim Phase 2a efficacy data, gives us a great sense of encouragement as we advance DR Cysteamine through the clinic.”

Under a license with UC San Diego, Raptor is developing DR Cysteamine for cystinosis, NASH and other potential therapeutic indications. Cysteamine is known to be a scavenger of reactive oxygen species and potent antioxidant, most likely through its ability to increase intracellular glutathione levels. Cysteamine has also demonstrated potential efficacy in preclinical and clinical studies in Huntington’s Disease, Batten Disease and other indications.

About Raptor Pharmaceutical Corp.

Raptor Pharmaceutical Corp. (Nasdaq: RPTPD – News; “Raptor”) is dedicated to speeding the delivery of new treatment options to patients by working to improve existing therapeutics through the application of highly specialized drug targeting platforms and formulation expertise. Raptor focuses on underserved patient populations where it can have the greatest potential impact. Raptor currently has product candidates in clinical development designed to potentially treat nephropathic cystinosis, non-alcoholic steatohepatitis (“NASH”), Huntington’s Disease (“HD”), aldehyde dehydrogenase (“ALDH2”) deficiency, and a non-opioid solution designed to potentially treat chronic pain and thrombotic disorder.

Raptor’s preclinical programs are based upon bioengineered novel drug candidates and drug-targeting platforms derived from the human receptor-associated protein (“RAP”) and related proteins that are designed to target cancer, neurodegenerative disorders and infectious diseases.

For additional information, please visit www.raptorpharma.com.

FORWARD LOOKING STATEMENTS

This document contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future results of operation or future financial performance, including, but not limited to the following statements: Raptor’s and UC San Diego’s ability to complete the clinical trial in NASH patients, DR Cysteamine’s ability to treat NASH, ALT and AST as a biomarker to determine the efficacy of a treatment for NASH, Raptor’s ability to further develop DR Cysteamine in NASH and other indications. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, which may cause the Company’s actual results to be materially different from these forward-looking statements. Factors which may significantly change or prevent the Company’s forward looking statements from fruition include that Raptor may be unsuccessful in developing any products or acquiring products; that Raptor’s technology may not be validated as it progresses further and its methods may not be accepted by the scientific community; that Raptor is unable to retain or attract key employees whose knowledge is essential to the development of its products; that unforeseen scientific difficulties develop with the Company’s process; that Raptor’s patents are not sufficient to protect essential aspects of its technology; that competitors may invent better technology; that Raptor’s products may not work as well as hoped or worse, that the Company’s products may harm recipients; and that Raptor may not be able to raise sufficient funds for development or working capital. As well, Raptor’s products may never develop into useful products and even if they do, they may not be approved for sale to the public. Raptor cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they were made. Certain of these risks, uncertainties, and other factors are described in greater detail in the Company’s filings from time to time with the Securities and Exchange Commission (the “SEC”), which Raptor strongly urges you to read and consider, including the joint proxy statement/prospectus on Form S-4 filed with the SEC on August 19, 2009; Raptor’s annual report on Form 10-K filed with the SEC on March 27, 2009; Raptor’s quarterly report on Form 10-Q filed with the SEC on August 11, 2009; Raptor’s wholly-owned subsidiary’s, Raptor Pharmaceuticals Corp. (“RPC”) Registration Statement on Form S-1, as amended, that was declared effective on August 7, 2008; RPC’s annual report on Form 10-K filed with the SEC on October 30, 2008, as amended by that Form 10-K/A filed with the SEC on December 23, 2008; and RPC’s quarterly report on Form 10-Q filed with the SEC on July 15, 2009, all of which are available free of charge on the SEC’s web site at http://www.sec.gov. Subsequent written and oral forward-looking statements attributable to Raptor or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements set forth in Raptor’s reports filed with the SEC. Raptor expressly disclaims any intent or obligation to update any forward-looking statements.

Sinoenergy Corp. (SNEN) Signs Merger Agreement With Skywide Capital Management Ltd.

Sinoenergy Corporation (Nasdaq: SNEN – News), developer and operator of retail compressed natural gas (CNG) filling stations in the People’s Republic of China and a manufacturer of CNG transport truck trailer, CNG filling station equipment and CNG fuel conversion kits for automobiles, today announced that, on October 12, 2009, the Company entered into an agreement with Skywide Capital Management Limited, pursuant to which the Company will be merged with and into Skywide. Upon the effectiveness of the merger, each issued and outstanding share of the Company’s common stock, other than shares owned by Skywide, will automatically be converted into the right to receive $1.90 per share.

Skywide, which is owned by the Company’s chairman, Mr. Tianzhou Deng, and its president, Mr. Bo Huang, is the Company’s largest shareholder, owning approximately 39.06% of the Company’s outstanding common stock.

The merger agreement provides that the consummation of the merger is subject to the approval of the holders of a majority of the Company’s outstanding common stock and customary closing conditions. As a result of the merger, the Company will cease to exist as a separate corporation, and its common stock will no longer be publicly traded.

The merger was approved by the board of directors, upon the recommendation of a special committee of the board which was comprised solely of independent directors.

Brean Murray, Carret & Co. served as financial advisor to the Company in this transaction and rendered a fairness opinion to the special committee with respect to the transaction. Arent Fox LLP acted as legal advisor to the special committee of the Company’s board. Sichenzia Ross Friedman Ference LLP acted as legal advisor to the Company. Mintz & Fraade P.C. acted as legal advisor to Skywide.

Additional Information and Where to Find It

In connection with the proposed merger, the Company will prepare a proxy statement for the shareholders of the Company to be filed with the SEC. Before making any voting decision, the Company’s shareholders are urged to read the proxy statement regarding the merger carefully in its entirety when it becomes available because it will contain important information about the proposed transaction. The Company’s shareholders and other interested parties will be able to obtain, without charge, a copy of the proxy statement (when available) and other relevant documents filed with the SEC from the SEC’s website at http://www.sec.gov . The Company’s shareholders and other interested parties will also be able to obtain, without charge, a copy of the proxy statement and other relevant documents (when available) by directing a request by mail or telephone to Sinoenergy Corporation, 1603-1604, Tower B Fortune Centre Ao City, Beiyuan Road, Chaoyang District, Beijing, People’s Republic of China 100107, Attention: Investor Relations; and +86-10-84928149, or to Georgeson Inc., the Company’s proxy solicitor, toll-free in the United States, 877-278-4751; Banks and Brokers should call 212-440-9800.

Participants in the Solicitation

The Company and its directors and officers may be deemed to be participants in the solicitation of proxies from the Company’s shareholders with respect to the merger. Information about the interests of the Company’s directors and officers in the transaction, which may differ from other shareholders generally, will be set forth in the proxy statement and other relevant documents regarding the merger when they are filed with the SEC.

About Sinoenergy

Sinoenergy is a developer and operator of retail CNG stations as well as a manufacturer of CNG transport truck trailers, CNG station equipment, and natural gas fuel conversion kits for automobiles, in China. In addition to its CNG related products and services, the Company designs and manufactures a wide variety of customized pressure containers for use in the petroleum and chemical industries. The Company’s website is http://www.sinoenergycorporation.com . Information on the Company’s website or any other website does not constitute a portion of this press release.

Forward-Looking Statements

This release contains certain “forward-looking statements” relating to the business of the Company and its subsidiaries. These forward looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov ). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

GameTech International, Inc. (GMTC) Receives Approval From the Montana Gambling Control Division for New Multi-game Suite

RENO, Nev., Oct. 8 /PRNewswire-FirstCall/ — GameTech International, Inc. (“GameTech®”) (Nasdaq: GMTC), a leading designer, developer and manufacturer of electronic bingo, gaming equipment, gaming systems, and video lottery terminals, today announced that the Montana Gambling Control Division has approved GameTech International’s latest multi-game release of new titles for the Montana Video Lottery Terminal market.

This multi-game suite includes the highly anticipated release of Gold Works, Cow Abduction and Sweet Success video keno games with state-of-the-art graphics and animation. These games are designed for maximum player interaction and a heightened entertainment experience through innovative bonus rounds, sound packages, and new and exciting game play features.

According to the Montana Gambling Control Division’s quarterly Active Machine Count Report of September 30, 2009, GameTech’s Summit Gaming branded products already hold a dominant position in the Montana market with almost double the number of gaming machines deployed in the state as the next largest gaming machine provider.

“We are very excited about getting our approvals for these new games,” said Tim Minard, Senior Vice President of Sales and Marketing for GameTech International. “We are confident that they will meet and exceed customer and player expectations in this very important market for us. These games, which really focus on the player experience, are strong examples of why we hold the market leader position in Montana and in other major VLT markets”.

GameTech International, Inc. is in the business of designing, manufacturing, and marketing computerized bingo and gaming equipment, systems, and services. Under the GameTech® product brand the company provides electronic bingo systems and equipment, and is an innovator in advanced wireless gaming applications and devices. Under the Summit Gaming (TM) product brand the Company provides video lottery terminal devices, Class III gaming machines, and related software and content. GameTech International, Inc. serves customers in 43 U.S. States, Canada, Japan, Mexico, Norway, Philippines, and the United Kingdom. The company was incorporated in 1994 and is headquartered in Reno, Nevada.

Statements in this press release that are not historical facts are intended to be forward-looking statements subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. GameTech cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained herein. Such factors include risks associated with doing business in a regulated industry, our ability to retain customers and secure new customers, risks associated with rapid technological change, and those disclosed in documents filed by the Company with the Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. GameTech does not intend, and undertakes no obligation, to update our forward-looking statements to reflect future events or circumstances

Ceragon Networks Ltd. (CRNT) to Collaborate With Alvarion(R) for Open Range Communications’ 4G Network Deployment

TEL AVIV, Israel, Oct. 8, 2009 (PRNewswire-FirstCall) — Ceragon Networks Ltd. (NASDAQ and TASE: CRNT), a leading provider of high-capacity wireless backhaul solutions, today announced that it will partner with Alvarion Ltd. (NASDAQ:ALVR) as wireless backhaul equipment provider to deploy a network for Open Range Communications. The new network is planned to be the largest Rural Utilities Service (RUS) funded deployment in the United States, spanning 17 states, 546 rural communities, and reaching up to 6 million people.

Alvarion is a leading provider of WiMAX and wireless broadband solutions. The company was recently selected as the WiMAX solution provider for the Open Range best-of-breed 4G network. Alvarion is also acting as the prime system integrator of the project. Ceragon’s high-capacity platforms will be used for backhauling rich voice and multimedia content over a newly constructed wireless IP network.

“This Open Range network will bring high-speed broadband connectivity to millions of Americans,” said Tzvika Friedman, CEO of Alvarion, Ltd. “The backhaul solution plays a critical role in building such a high capacity network. Ceragon’s wireless IP backhaul solution provides a variety of benefits including high-capacity and advanced networking capabilities while allowing for simple, quick and cost-efficient deployment. Our partnership with Ceragon is another example of our strategy to enable Open WiMAX networks.”

“We are very excited to partner with Alvarion for the Open Range network deployment,” said Ira Palti, President and Chief Executive Officer of Ceragon. “Delivering broadband services to rural communities brings new forms of enterprise, new sources of wealth and new forms of social interaction to millions of new users. Our wireless backhaul solutions help operators around the world to simplify their network deployments while driving down set up and maintenance costs. We look forward to a long and fruitful partnership with Alvarion.

Open Range Communications Inc. is a U.S. broadband wireless operator. The operator’s new rural broadband access network will be built with an all-IP architecture leveraging the latest 4G technology. This solution will give millions of rural Americans the ability to enjoy wireless broadband services across the communities where they live and work.

About Ceragon Networks Ltd.

Ceragon Networks Ltd. (NASDAQ and TASE: CRNT) is a leading provider of high capacity wireless backhaul solutions that enable wireless service providers to deliver voice and premium data services, such as Internet browsing, music and video applications. Ceragon’s wireless backhaul solutions use microwave technology to transfer large amounts of network traffic between base stations and the infrastructure at the core of the mobile network. Ceragon designs solutions to provide fiber-like connectivity for circuit-switched, or SONET/SDH, networks, next generation Ethernet/Internet Protocol, or IP-based, networks, and hybrid networks that combine circuit-switched and IP-based networks. Ceragon’s solutions support all wireless access technologies, including GSM, CDMA, EV-DO and WiMAX. These solutions address wireless service providers’ need to cost-effectively build-out and scale their infrastructure to meet the increasing demands placed on their networks by growing numbers of subscribers and the increasing demand for premium data services. Ceragon also provides its solutions to businesses and public institutions that operate their own private communications networks. Ceragon’s solutions are deployed by more than 150 service providers of all sizes, as well as in hundreds of private networks, in nearly 100 countries. More information is available at http://www.ceragon.com

Ceragon Networks(R), CeraView(R), FibeAir(R), the FibeAir(R) design mark and Native2(R) are registered trademarks., and Ceragon(TM), PolyView(TM), ConfigAir(TM), CeraMon(TM), EtherAir(TM), QuickAir(TM), QuickAir Partner Program(TM), QuickAir Partner Certification Program(TM), QuickAir Partner Zone(TM), EncryptAir(TM) and Microwave Fiber(TM) are trademarks of Ceragon Networks Ltd.

This press release may contain statements concerning Ceragon’s future prospects that are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and projections that involve a number of risks and uncertainties. There can be no assurance that future results will be achieved, and actual results could differ materially from forecasts and estimates. These are important factors that could cause actual results to differ materially from forecasts and estimates. These risks and uncertainties, as well as others, are discussed in greater detail in Ceragon’s Annual Report on Form 20-F and Ceragon’s other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made and Ceragon undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made.

About Alvarion

Alvarion (NASDAQ: ALVR) is the largest WiMAX pure-player with the most extensive WiMAX customer base and over 250 commercial deployments around the globe. Committed to growing the WiMAX market, the company offers solutions for a wide range of frequency bands supporting a variety of business cases. Through its OPEN WiMAX strategy, superior IP and OFDMA know-how, and ability to deploy end-to-end turnkey WiMAX projects, Alvarion is shaping the new wireless broadband experience (http://www.alvarion.com).

Labopharm, Inc. (DDSS) announces that its trazodone API supplier has resolved outstanding manufacturing issues with the FDA

Oct. 7, 2009 (PR Newswire) — LAVAL, QC, Oct. 7 /PRNewswire-FirstCall/ – Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) today announced that it has been informed by Angelini, the manufacturer of the active pharmaceutical ingredient (API) for the Company’s novel trazodone formulation, that it has received a letter from the U.S. Food and Drug Administration (FDA) stating that Angelini has appropriately addressed all deficiencies cited by the FDA following its inspection of the manufacturing facility in June and July of this year. The letter further states that Angelini’s manufacturing facility has been classified as acceptable.

Labopharm received a complete response letter from the FDA on July 17, 2009 indicating the Company’s new drug application (NDA) for its novel trazodone formulation could not be approved in its present form due to the deficiencies at the API supplier’s manufacturing facility. The letter did not raise any efficacy or safety issues.

Labopharm’s novel formulation of trazodone is currently under regulatory review in the U.S. with an action date under the Prescription Drug Users Fee Act (PDUFA) of February 11, 2010.

About Labopharm Inc.

Labopharm is an emerging leader in optimizing the performance of existing small molecule drugs using its proprietary controlled-release technologies. The Company’s lead product, a unique once-daily formulation of tramadol, is now available in 17 countries around the world, including the U.S., Canada, major European markets and Australia. The Company’s second product, a novel formulation of trazodone for the treatment of major depressive disorder, is under regulatory review in the U.S. by the FDA. The Company also has a robust pipeline of follow-on products in both pre-clinical and clinical development. Labopharm’s vision is to become an integrated, international, specialty pharmaceutical company with the capability to internally develop and commercialize its own products. For more information, please visit www.labopharm.com.

This press release contains forward-looking statements, which reflect the Company’s current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors, including the uncertainties related to the regulatory process in various countries for the approval of the Company’s products and the successful commercialization of the products throughout the world if they are approved. Investors should consult the Company’s ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. Except as required by law, the Company undertakes no obligation and does not intend to update these forward-looking statements.

Keegan Resources, Inc. (KGN) Continues to Receive Excellent Results From 2009 Drilling at the Esaase Gold Project

VANCOUVER, BRITISH COLUMBIA, Oct. 6, 2009 (Marketwire) — Keegan Resources Inc. (“Keegan”) (TSX:KGN)(NYSE Amex:KGN) is pleased to announce new results from its 2009 drilling program at the Esaase property in southwest Ghana. The results are from drill holes down dip from the existing resource as well as from shallow strike extension drilling to the north of the current resource targeting high grades at shallow depths. The results from the deeper drilling show multiple high grade zones including 9.3 m of 11.1 g/t Au as well as wide intercepts of significant mineralization including 21 meters of 2.04 g/t Au, and 41 m @ 1.1 g/t Au (see Table 1 below for additional results). The results of the shallow holes include seven meters of 7.96 g/t Au and five meters at 3.37 g/t Au; all at less than 100 meters depth Keegan has incorporated the down dip results into its existing model and is planning the next stage of drilling in this area. There are numerous assays still pending from ongoing drilling to the north. Please see www.keeganresources.com for drill hole location maps and cross-sections.

Table 1: Intercepts from the 2009 resource expansion-drilling program at the Esaase property. Only intercepts with grade widths of greater than 10 g/t Au x meter are shown. Intercepts with grade-widths of approximately 40 g/t Au x meter or higher are marked with (i). Distances are in drilled meters and grades reported in g/t Au.

------------------------------------- --------------------------------------
down dip extension drilling           shallow north extension drilling
---------------------------           --------------------------------
------------------------------------- --------------------------------------
Hole_ID       From     To Width Grade Hole_ID     From     To  Width   Grade
------------------------------------- --------------------------------------
KEDD542(i)     321    342    21  2.04 KERC555       58     64      6    2.01
------------------------------------- --------------------------------------
including(i)   334    335     1  28.4 KERC556        4     14     10     1.5
------------------------------------- --------------------------------------
KEDD542(i)     369    410    41   1.1 KERC560(i)     5     10      5    2.84
------------------------------------- --------------------------------------
KEDD552        296    313    17  1.24 KERC560(i)    27     32      5    3.37
------------------------------------- --------------------------------------
KEDD552      371.9    390  18.1  1.21 including     27     28      1      11
------------------------------------- --------------------------------------
KEDD552        399    407     8   4.9 KERC560       53     59      6    2.32
------------------------------------- --------------------------------------
including      404    405     1  30.6 KERC567       74     81      7    7.96
------------------------------------- --------------------------------------
KEDD552(i)     455 464.34  9.34  11.1 including(i)  74     75      1    36.9
------------------------------------- --------------------------------------
including(i)   458    459     1  62.5 and(i)        79     80      1   12.55
------------------------------------- --------------------------------------
including(i)464.04 464.34  0.34   100
------------------------------------- --------------------------------------

President and CEO Dan McCoy states, “These new results provide additional confirmation of Keegan’s potential to add significant ounces to the deposit both at depth as well as along strike. While Keegan proceeds with it’s aggressive exploration program, the engineering and environmental team is also making excellent progress on development-oriented projects such as metallurgical and mine planning studies and comprehensive environmental and community engagement programs.”

Richard Haslinger, P. Eng. is the Qualified Person with respect to NI 43-101 at Esaase. RC samples were taken at one-meter intervals under dry drilling conditions by geologic and resource consultant Coffey Mining Inc. utilizing drilling and sampling techniques widely accepted in resource definition studies of other West African gold deposits. All reverse circulation drill samples are weighed on site. Drill core is HQ diameter and is split, logged and sampled on site. All core and RC samples are assayed using standard 50 gram fire assay with atomic absorption finish by ALS Chemex Labs in Kumasi, Ghana. QA/QC programs using internal and external standard samples, re-assays, and blanks indicate good accuracy and precision in a large majority of standards assayed. Repeatability in duplicate samples is generally within 10% variance. In instances where variance is greater than 10%, the assays from both samples are averaged. Intercepts were calculated to emphasize width rather than grade: a minimum of a 0.2 g/t cut off at beginning and end of the intercept and allowing for no more than six consecutive samples (six meters) of less than 0.2 g/t Au. Mineralization in the A structure strikes approximately 10 to 30 degrees east of north and dips 45 to 90 degrees to the west. Holes are drilled at 110 degrees azimuth and are inclined at 45 to 60 degrees, so true widths are estimated to be over 80% of the drilled widths. The techniques by which drill hole assays have been previously used in resource estimation at Esaase can be found in Keegan’s most recent 43-101 technical report on www.sedar.com.

About Keegan Resources: Keegan is a junior gold company offering investors the opportunity to share ownership in the rapid exploration and development of high quality pure gold assets. The Company is focused on its wholly owned flagship Esaase project (2.025 Moz indicated resources with an average grade of 1.5 g/t Au at a 0.6 g/t Au cutoff and 1.451 million ounces in an inferred category at an average grade of 1.6 g/t Au applying a 0.6 g/t Au cut-off for a total inferred and indicated resource of 3.476 Moz) as well as its Asumura gold project, both of which are located in Ghana, West Africa, a highly favorable and prospective jurisdiction. Managed by highly skilled and successful technical and financial professionals, Keegan is well financed with no debt. Keegan is also strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighboring communities. Keegan trades on the TSX and the NYSE AMEX under the symbol KGN. More information about Keegan is available at www.keeganresources.com.

On Behalf of the Board

Dan McCoy, Ph.D., President & CEO

Forward Looking and other Cautionary Information

This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address estimated resource quantities, grades and contained metals, possible future mining, exploration and development activities, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company’s annual Form 20-F filing with the United States Securities Commission and its home jurisdiction filings that are available at www.sedar.com.

Information Concerning Estimates of Measured, Indicated and Inferred Resources This news release also uses the terms ‘indicated resources’ and ‘inferred resources’. Keegan Resources Inc. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, ‘inferred resources’ have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

To view the maps accompanying this press release please click on the following link: http://media3.marketwire.com/docs/kgn106m1.pdf

Nutrisystem, Inc. (NTRI) Announces Distribution at Walmart

HORSHAM, Pa., Oct. 5 /PRNewswire-FirstCall/ — Nutrisystem, Inc. (Nasdaq: NTRI), a leading provider of weight management programs and services, has aligned with Walmart to offer customers the convenience of a Nutrisystem 14-Day Starter Program for the first time in the retail channel.

Hitting shelves at the brink of the holiday rush and leading into the height of the 2010 New Year’s resolution season, the Nutrisystem 14-Day Starter Program will start rolling out nationwide at over 3,200 Walmart locations the first week of October, and will be available on Walmart.com.

“Our alliance with Walmart is an extension of our goal to consistently offer consumers a convenient, affordable and effective weight loss option,” said Will Auchincloss, Senior Vice President of Business Development at Nutrisystem. “Walmart provides us with a new and valuable distribution channel to broaden our customer base and build awareness of our product at the retail level.”

Walmart customers will find the Nutrisystem weight loss Starter Program in the pharmacy area of their local store and online at Walmart.com. The Program may be purchased through a convenient gift card system that starts with buying a card, then activating it online at nutrisystem.com/redeem or by calling 800 873-1925, to begin home delivery and start losing weight. The Nutrisystem Starter Program consists of 14 days of the Nutrisystem favorites menu, free shipping, access to 24/7 weight loss counseling, and free membership in Nutrisystem’s robust online community, for $148.00.

About Nutrisystem, Inc.

Nutrisystem, Inc. (Nasdaq: NTRI) is a leading provider of weight management products and services. Nutrisystem is sold direct to the consumer through nutrisystem.com for convenient home delivery. The company offers proven nutritionally balanced weight loss programs designed for women, men, and seniors, as well as the new clinically tested Nutrisystem D plan, formulated specifically to help people with type 2 diabetes who want to lose weight. The Nutrisystem program is based on 35 years of nutrition research and offers a variety of great tasting, satisfying high-fiber, heart healthy, good carbohydrate meals that are low on the Glycemic Index and contain zero trans fats. Nutrisystem is hundreds of dollars cheaper than other weight loss programs, based on an independent survey by National Business Research Institute (October 2008). The program has no membership fees and provides 24/7 weight management support by trained weight loss coaches and online weight management tools free of charge. In 2009 Nutrisystem was selected as the #1 overall online retailer in the Health and Beauty category and #46 out of the top 500 online retailers overall by Internet Retailer Magazine. For more information or to become a customer visit http://www.nutrisystem.com or call 1-877-681-THIN (8446).

Avocent Corp. (AVCT) Empowers MindTree With Centralized Data Center IT Management From Any Location in the World

HUNTSVILLE, AL — (Marketwire) — 10/06/09 — Avocent Corporation (NASDAQ: AVCT), a global leader in IT operations management, today announced that MindTree Limited has deployed Avocent’s suite of remote infrastructure management solutions to enable full IT operations control over IP.

With support for a variety of servers, network equipment and other data center devices, Avocent’s physical resource infrastructure management platform has allowed MindTree to successfully optimize its skilled manpower resource and business operations.

MindTree, a global IT solutions company that specializes in IT services, independent testing, infrastructure management and technical support (IMTS), knowledge services and product engineering, is today one of India’s fastest growing IT and R&D services companies. The accelerated expansion of MindTree’s IT services business created an infrastructure management challenge as the company needed to control and troubleshoot a growing footprint of more than 300 mission-critical servers and network devices.

Before the IP-enabled solution, MindTree relied on analog KVM technology to manage its assets and this required engineers to physically enter each data center to carry out management tasks. As the complexity, size and number of MindTree’s data centers increased, so did the cost of manpower and fault resolution times.

MindTree deployed Avocent’s DSR®2000 series of digital KVM switches and its DSView®3 management software as well as its CCM console manager solution to reign in management across its data center campuses. Avocent’s DSR® KVM over IP solution provided MindTree secure control of all its servers over a browser-based IP connection while DSView 3 enabled the centralized management of both physical and virtual server resources. With Avocent’s console manager, MindTree is also able to achieve out-of-band access IP-based access to serially managed devices including Unix/Linux servers, power distribution units, routers, switches, firewalls and load balancers.

“Avocent’s remote infrastructure management has drastically enhanced the efficiency and productivity of our IT team because it provides web/dial-in access to servers and network devices up to BIOS level and console access to network devices, as well as fault identification and rectification from anywhere and at any time,” said Ramesh Kumar, Associate Director of Information Systems at MindTree. “OS and application installation are now a breeze and we can access and manage our datacenter resources without being physically at the location (or site).”

“MindTree is a fast-growing global company and we are happy to provide the technology they require to be able to compete more efficiently and competitively, as they extend their footprint into the global marketplace,” said Ryan Sia, Vice President, Avocent Asia Pacific.

About MindTree Ltd. MindTree Ltd. is a global IT Solutions company specializing in IT Services, Independent Testing, Infrastructure Management and Technical Support (IMTS), Knowledge Services and Product Engineering, which comprises of R&D Services and Software Product Engineering. MindTree partners with its clients to create a transparent, value-based relationship. Our people build innovative solutions in a wide range of technology domains that enable our customers to succeed in their business goals.

MindTree was ranked 45th among the leaders in The 2009 Global Outsourcing 100 by the International Association of Outsourcing Professionals. Widely known for its focus on human capital development, MindTree has been consistently rated among the most admired employers by several industry surveys, including Great Places To Work Institute, Hewitt Associates and Mercer.

MindTree was ranked No. 1 among the Most Admired Knowledge Enterprise (MAKE) India Award winners for the second consecutive year in 2008. MindTree is the winner of the National Award for Excellence in Corporate Governance in India in 2007-08. The Company is publicly listed in India. More information is available at www.mindtree.com.

About Avocent Corporation

Avocent delivers IT operations management solutions that reduce operating costs, simplify management and increase the availability of critical IT environments 24/7 via integrated, centralized software. Additional information is available at www.avocent.com.

Forward-looking Statements

This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with general economic conditions, risks attributable to future product demand, sales, and expenses, risks associated with acquisitions and acquisition integration, risks associated with product design efforts and the introduction of new products and technologies, and risks associated with obtaining and protecting intellectual property rights. Other factors that could cause operating and financial results to differ are described in the Avocent annual report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2009. Other risks may be detailed from time to time in reports to be filed with the SEC. Avocent does not undertake any obligation to publicly update its forward-looking statements based on events or circumstances after the date hereof.

Copyright © 2009, Avocent Corporation. All rights reserved. Avocent, LANDesk, and their respective logos are registered trademarks or trademarks of Avocent Corporation, its subsidiaries or its affiliated companies in the United States and/or other countries. Other brands and names may be claimed as the property of others.

Sykes Enterprises, Inc. (SYKE) and ICT Group, Inc. (ICTG) Sign Definitive Merger Agreement

TAMPA, Fla., Oct. 6, 2009 (GLOBE NEWSWIRE) — Sykes Enterprises, Incorporated (“SYKES” or the “Company”) (Nasdaq:SYKE), a global leader in providing outsourced customer contact management solutions and services in the business process outsourcing (BPO) arena, and ICT Group, Inc. (“ICTG”) (Nasdaq:ICTG), a leading global provider of customer management and business process outsourcing (BPO) solutions, announced today that they have entered into a definitive merger agreement under which SYKES agrees to acquire ICTG. SYKES will pay $15.38 for each share of ICTG common stock on a fully diluted basis, for a total purchase price of approximately $263 million. Under the terms of the agreement, each issued and outstanding share of ICTG will be converted into $7.69 in cash and SYKES stock with a value of $7.69, subject to a collar mechanism. The purchase price of $15.38 per share represents a premium of approximately 46% over the closing price of ICTG stock on October 5, 2009. The cash portion of the purchase price is anticipated to be funded through committed credit facilities. The Board of Directors of SYKES and ICTG have each approved the transaction, which is subject to the approval of the ICTG shareholders. John J. Brennan, Donald Brennan and Eileen Brennan Oakley have entered into an agreement with Sykes and ICTG under which they have agreed to vote shares controlled by them, representing approximately 39% of ICTG’s outstanding shares, in favor of the transaction. The transaction is expected to close around the end of 2009, subject to the satisfaction of customary closing conditions, including Hart- Scott-Rodino clearance.

SYKES expects to realize synergies of up to $20 million annually. Giving consideration to realizing a portion of the anticipated synergies in 2010, the acquisition is expected to be neutral to SYKES’ earnings per diluted share in 2010. On an adjusted basis, which excludes expenses related to the amortization of acquisition-related intangible assets, while including the expected synergies, this acquisition is expected to be earnings per diluted share accretive in 2010.

Strategic Benefits of the Transaction The business opportunities are significant as this transaction:

  *  Creates a combined company with more than $1.2 billion in
     revenues, while greatly expanding the portfolio of clients
     with minimal client overlap;
  *  Leverages global scale to pursue client acquisition
     opportunities that are larger and more complex in scope;
  *  Broadens the vertical reach;
  *  Strengthens the domestic delivery footprint;
  *  Expands global delivery footprint to 23 countries;
  *  Builds deeper expertise within the financial services and
     telecom verticals, the two largest market segments in the
     customer contact management industry;
  *  Increases the opportunity for sustainable long-term revenue
     growth and operating margin expansion by leveraging of
     general and administrative expenses over a larger revenue
     base; and
  *  Further diversifies risk while sustaining an already-strong
     financial position.

“A highly regarded player with over two decades in the customer contact management industry, ICTG has built a solid business platform around its portfolio of services across various verticals targeted toward Fortune 500 clients,” said Chuck Sykes, President and Chief Executive Officer of Sykes Enterprises, Inc. “As clients across the industry move increasingly toward outsourcing more processes to fewer vendors, the breadth and depth of service offerings along with a strong delivery footprint are likely to become a driving force in the industry. Against that backdrop, and coupled with the embedded opportunities, the strategic rationale for this transaction is extremely compelling, making it a win-win for our combined clients, employees and shareholders. For our combined clients, the acquisition offers the reach of our global delivery footprint through the addition of new delivery geographies and markets, along with deeper expertise in key verticals. For our employees, given our shared vision and mission, the acquisition allows us to capitalize on each other’s best practices by leveraging the global resources of the combined organization across all functional areas. And for our shareholders, we significantly strengthen our competitive position, sustain our strong balance sheet and drive toward the goal of sustained long-term operating margin expansion as we are able to better leverage our general and administrative expenses across a larger base of revenues. Moreover, with minimal client overlap and lower client concentration resulting from a larger overall client base, we believe that some of the key integration hurdles inherent in shareholders realizing value creation have been somewhat mitigated. Altogether, this transaction represents a significant milestone for all SYKES stakeholders, and we are delighted to add ICTG’s customers and employees to our organization.”

“This transaction gives the combined companies the scale and size needed to effectively compete on a global basis. We have very little client overlap in the vertical markets that we currently serve and will be able to greatly broaden our reach through this transaction. Upon completion of merger, we will have the resources and footprint to address the increasingly complex needs of our Fortune 500 client base,” commented John J. Brennan, Chairman, Chief Executive Officer and President of ICT Group Inc. “At ICTG, we have spent the last 18 months transforming our organization and positioning the Company for profitable growth. We believe this combination will accelerate the opportunity for our shareholders to realize the value that we have created.”

For the six months ended June 30, 2009, ICTG’s revenues were $194.4 million. ICTG ended the second quarter of 2009 with $42.3 million in cash and cash equivalents on its balance sheet. Mr. Brennan has agreed to remain with SYKES for a transition period to assist with the integration of the two businesses.

Mr. Chuck Sykes commented further, “We have been extremely disciplined about our acquisition strategy, avoiding the mergers and acquisitions frenzy at the peak of the last market cycle. Our focus has been on optimizing our business while seeking the right acquisition that would be highly complimentary to our core business. The ICTG transaction represents the fruits of that discipline and is consistent with our focus on driving long-term shareholder value.”

Transaction Terms

Under the terms of the agreement, each issued and outstanding share of ICTG will be converted into $7.69 in cash and SYKES stock with a value of $7.69, subject to a collar mechanism. If SYKES’ volume weighted average stock price for a 10 trading-day period ending on the third trading day before the effective date of the merger is between $19.3306 and $22.4652, the fraction of a share of SYKES common stock to be delivered with the $7.69 in cash for each ICTG share (the “exchange rate”) will be adjusted to deliver SYKES stock valued at $7.69 per ICTG share. If SYKES’ average stock price is at or above $22.4652, the exchange rate will be 0.3423 SYKES share per ICTG share. If SYKES’ average stock price is at or below $19.3306, the exchange rate will be 0.3978 SYKES share per ICTG share. Each outstanding ICTG restricted stock unit will become fully vested at closing and the holder will receive a cash payment of $15.38. Each outstanding ICTG stock option will become fully vested at closing and the holder will receive a cash payment based upon the difference between the exercise price for the stock option and $15.38.

SYKES Third-Quarter 2009 Business Outlook Update

Excluding costs associated with the ICTG acquisition and on a stand-alone basis, SYKES expects to exceed the top-end of its previously discussed third-quarter 2009 earnings per diluted share outlook range of $0.31 to $0.34.

Advisors

Credit Suisse Securities (USA) LLC served as a sole financial advisor to SYKES on the transaction, while Greenhill & Company served as a sole financial adviser to ICTG. Shumaker, Loop & Kendrick, LLP served as SYKES’ legal advisor, while Morgan, Lewis & Bockius LLP served as ICTG’s legal advisor.

Conference Call

SYKES and ICTG will hold a conference call to discuss the acquisition at 10:00 a.m. EDT on Tuesday, October 6, 2009. The conference call will be carried live on the Internet at: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=119541&eventID=2469191. Or, interested parties can dial in domestically at 888-396-2384 or internationally at 617-847-8711. For both dial-in numbers, the participant pass code is 45834648. Investors can also access the webcast portion of the conference call through the “Investors” section of ICTG’s website at www.ictgroup.com

Non-GAAP Financial Measure

Adjusted earnings per diluted share is an important indicator of performance as this non-GAAP financial measure assists readers in further understanding the Company’s results of operations and trends from period-to-period exclusive of certain acquisition-related items. Adjusted earnings per diluted share, however, is a supplemental measure of performance that is not required by, or presented in accordance with, U.S. Generally Accepted Accounting Principles (GAAP).

About ICT Group, Inc.

ICT GROUP, headquartered in Newtown, Pa., is a leading global provider of customer management and business process outsourcing solutions. The Company provides a comprehensive mix of customer care/retention, up-selling/cross-selling, technical support and database marketing as well as e-mail management, data entry, collections, claims processing and document management services, using its global network of onshore, near-shore and offshore operations. ICT GROUP also provides interactive voice response (IVR) and advanced speech recognition solutions as well as hosted Customer Relationship Management (CRM) technologies, available for use by clients at their own in-house facility or on a co-sourced basis in conjunction with the Company’s fully integrated contact center operations. To learn more about ICT GROUP, visit the Company’s website: www.ictgroup.com

About Sykes Enterprises, Incorporated

SYKES is a global leader in providing customer contact management solutions and services in the business process outsourcing (BPO) arena. SYKES provides an array of sophisticated customer contact management solutions to Fortune 1000 companies around the world, primarily in the communications, financial services, healthcare, technology and transportation and leisure industries. SYKES specializes in providing flexible, high quality customer support outsourcing solutions with an emphasis on inbound technical support and customer service. Headquartered in Tampa, Florida, with customer contact management centers throughout the world, SYKES provides its services through multiple communication channels encompassing phone, e-mail, web and chat. Utilizing its integrated onshore/offshore global delivery model, SYKES serves its clients through two geographic operating segments: the Americas (United States, Canada, Latin America, India and the Asia Pacific Rim) and EMEA (Europe, Middle East and Africa). SYKES also provides various enterprise support services in the Americas and fulfillment services in EMEA, which include multi-lingual sales order processing, payment processing, inventory control, product delivery and product returns handling. For additional information please visit www.sykes.com.

Forward-Looking Statements

This press release may contain “forward-looking statements,” including SYKES’ estimates of future business outlook, prospects or financial results, statements regarding SYKES’ objectives, expectations, intentions, beliefs or strategies, or statements containing words such as “believe,” “estimate,” “project,” “expect,” “intend,” “may,” “anticipate,” “plans,” “seeks,” or similar expressions. It is important to note that SYKES’ actual results could differ materially from those in such forward-looking statements, and undue reliance should not be placed on such statements. Among the important factors that could cause such actual results to differ materially are (i) the impact of economic recessions in the U.S. and other parts of the world, (ii) fluctuations in global business conditions and the global economy, (iii) SYKES’ ability to continue the growth of its support service revenues through additional technical and customer contact centers, (iv) currency fluctuations, (v) the timing of significant orders for SYKES’ products and services, (vi) loss or addition of significant clients, (vii) the early termination of contracts by clients, (viii) SYKES’ ability to recognize deferred revenue through delivery of products or satisfactory performance of services, (ix) construction delays of new or expansion of existing customer support centers, (x) difficulties or delays in implementing SYKES’ bundled service offerings, (xi) failure to achieve sales, marketing and other objectives, (xii) variations in the terms and the elements of services offered under SYKES’ standardized contract including those for future bundled service offerings, (xiii) changes in applicable accounting principles or interpretations of such principles, (xiv) delays in the Company’s ability to develop new products and services and market acceptance of new products and services, (xv) rapid technological change, (xvi) political and country-specific risks inherent in conducting business abroad, (xvii) SYKES’ ability to attract and retain key management personnel, (xviii) SYKES’ ability to further penetrate into vertically integrated markets, (xix) SYKES’ ability to expand its global presence through strategic alliances and selective acquisitions, (xx) SYKES’ ability to continue to establish a competitive advantage through sophisticated technological capabilities, (xxi) the ultimate outcome of any lawsuits or penalties (regulatory or otherwise), (xxii) SYKES’ dependence on trends toward outsourcing, (xxiii) risk of interruption of technical and customer contact management center operations due to such factors as fire, earthquakes, inclement weather and other disasters, power failures, telecommunications failures, unauthorized intrusions, computer viruses and other emergencies, (xxiv) the existence of substantial competition, (xxv) the ability to obtain and maintain grants and other incentives, including tax holidays or otherwise, (xxvi) regulatory proceedings that affect the ability to complete the ICTG acquisition as contemplated, (xxvii) the potential of cost savings/synergies associated with the acquisition not being realized, or will not be realized within the anticipated time period, (xxviii) the potential loss of key clients related to the acquisition, (xxix) risks related to the integration of the acquisition, (xxx) the possibility that the acquisition does not close, including but not limited to, due to the failure to satisfy the closing conditions, and (xxxi) other risk factors listed from time to time in SYKES’ registration statements and reports as filed with the Securities and Exchange Commission. All forward-looking statements included in this press release are made as of the date hereof, and SYKES undertakes no obligation to update any such forward-looking statements, whether as a result of new information, future events, or otherwise.

Additional Information

In connection with the proposed merger, SYKES will file with the SEC a Registration Statement on Form S-4 that will include a proxy statement of ICTG that also constitutes a prospectus of SYKES. ICTG will mail the proxy statement/prospectus to its shareholders. SYKES and ICTG urge investors and security holders to read the proxy statement/prospectus regarding the proposed merger when it becomes available because it will contain important information. You may obtain copies of all documents filed with the Securities and Exchange Commission regarding this transaction, free of charge, at the SEC’s website (www.sec.gov). You may also obtain these documents free from Sykes at http://investor.sykes.com/phoenix.zhtml?c=119541&p=irol-sec, or by contacting SYKES’ Investor Relations Department at 1-813-233-7143, or by contacting MBS Value Partners at 1-212-750-5800. You may also obtain these documents, free of charge from ICTG at www.ictgroup.com.

SYKES, ICTG and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from ICTG shareholders in favor of the merger. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the ICTG shareholders in connection with the proposed merger will be set forth in the proxy statement/prospectus when it is filed with the SEC. You can find information about SYKES’ executive officers and directors in the proxy statement for SYKES’s 2009 annual meeting of shareholders, filed with the SEC on April 15, 2009. You can find information about ICTG’s executive officers and directors in the proxy statement for ICTG’s 2009 annual meeting of shareholders, filed with the SEC on April 29, 2009. Free copies of these documents may be obtained from SYKES and ICTG as described above.