SoundBite Communications Announces Preliminary Fourth Quarter and Year End 2011 Financial Results

BEDFORD, Mass., Jan. 30, 2012 (GLOBE NEWSWIRE) — SoundBite Communications Inc. (Nasdaq:SDBT), a leading global provider of mobile marketing and contact center solutions, today announced preliminary unaudited financial results for the fourth quarter and the year ended December 31, 2011.

Based on currently available information, the Company expects to report fourth quarter revenue, computed in accordance with U.S. generally accepted accounting principles (GAAP), of at least $11.8 million, the highest revenue quarter in the Company’s history. This compares to the previously guided range of $11.0 million to $11.5 million for the fourth quarter of 2011, and $10.1 million in the year ago period. GAAP operating income for the fourth quarter of 2011 is expected to have been at least $200,000, compared to $50,000 in the year ago period.

In addition, the Company anticipates non-GAAP operating income to have been at least $800,000, exceeding the Company’s previously guided range of $100,000 to $400,000. In computing the preliminary non-GAAP operating income for the fourth quarter, the Company excluded the following estimated amounts: stock based compensation of $300,000 and amortization of intangibles of $300,000 related to the acquisition of SmartReply.

On a full year basis, the Company anticipates revenues of at least $41.5 million, a 5% increase over 2010. The GAAP operating loss is expected to be approximately $2.0 million, compared to $3.3 million in 2010.

“We are very pleased with these preliminary unaudited results.” stated Jim Milton, president and CEO of SoundBite Communications. “SoundBite’s record performance in the fourth quarter was driven by growth in its mobile marketing solutions during a key quarter for Retail, and strength across the entire hosted contact center business.”

Fourth Quarter and Full Year Financial Results

The anticipated results in this press release are based on management’s preliminary analysis of revenue and GAAP Operating Income for the quarter ended December 31, 2011. The Company will release and discuss its fourth quarter and full year 2011 financial results on Wednesday, February 22, 2012 at 5:00 p.m. ET.

Non-GAAP Measures

To supplement its statements of operations information presented in accordance with GAAP, SoundBite uses non-GAAP measures for operating income. In order for investors to be better able to compare its current results with those of previous periods, SoundBite has shown a reconciliation of GAAP to non-GAAP operating income. SoundBite believes the presentation of this non-GAAP financial measure enhances investors’ overall understanding of SoundBite’s historical financial performance. The presentation of non-GAAP operating income is not meant to be considered in isolation or as a substitute for SoundBite’s financial results prepared in accordance with GAAP and SoundBite’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

About SoundBite Communications

SoundBite Communications, a leading cloud communications provider, enables organizations to build lifelong, profitable customer relationships via proactive communications across the full consumer lifecycle. We serve two global markets, the Hosted Contact Center and Mobile Marketing. Our solutions leverage the power of two robust platforms: SoundBite Engage, an interactive multi-channel communications platform providing integrated SMS, dialer, voice messaging, email and web communications; and SoundBite Insight, a preference management platform enabling intelligent, personalized communications. SoundBite powers nearly 2 billion customer interactions annually. Visit SoundBite.com for more information.

The SoundBite Communications, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4393

Forward-Looking Statement

This is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. The statements regarding operating results for the fourth quarter of 2011 contained in the second through fifth paragraphs of this press release are forward looking and are based upon SoundBite’s historical performance and its current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by SoundBite, its management or any other person that the future plans, estimates or expectations contemplated by SoundBite will be achieved. These forward-looking statements represent SoundBite’s expectations as of the date of this press release. Subsequent events may cause these expectations to change and SoundBite disclaims any obligation to update the forward-looking statements in the future. Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including: slower than anticipated development of the market for automated voice messaging services; defects in SoundBite’s platform; disruptions in its service or errors in its execution; discontinued or decreased use of SoundBite’s service by its clients, which are not subject to minimum purchase requirements for any reason, including market conditions and regulatory developments; and the occurrence of events adversely affecting the collection agencies industry or in-house collection departments, which account for a significant portion of SoundBite’s revenues. These and other factors, including the factors set forth under the caption “Item 1A. Risk Factors” of Part I in SoundBite’s most recent quarterly report on Form 10-Q filed with the Securities and Exchange Commission, could cause SoundBite’s performance or achievements to be materially different from those expressed or implied by the forward-looking statements.

SoundBite is a registered service mark of SoundBite Communications, Inc.

(SDBT-F,G)

CONTACT: Investor Contacts:

         Lynn Ricci
         SoundBite Communications
         +1 781 897 2696
         lricci@SoundBite.com