Reaffirming its reputation as an automotive leader in sales satisfaction in the U.S., Jaguar North America is proud to announce its number one ranking in the J.D. Power and Associates 2008 Sales Satisfaction Index (SSI) Study(SM).

Jaguar has established the sales satisfaction benchmark in four of the past five years and in 2008 achieved an industry leading score of 907, a 14 point improvement from 2007.

“I am delighted that Jaguar has reclaimed the number one ranking in the J.D. Power and Associates 2008 Sales Satisfaction Index (SSI) Study(SM),” said Mike O’Driscoll, managing director of Jaguar Cars. “Our simultaneous number one ranking in J.D. Power and Associates Customer Satisfaction Index and Sales Satisfaction Index studies reflects the dedication that everyone at Jaguar shares in delivering outstanding customer service.”

“To set the benchmark for four of the past five years in the J.D. Power and Associates Sales Satisfaction Index (SSI) Study(SM) and to rank number one for two consecutive years in the J.D. Power and Associates Customer Service Index (CSI) Study(SM) reaffirms the passion of our employees and reflects the tremendous standards that our dealers consistently achieve,” comments Gary Temple, president Jaguar Land Rover North America, LLC.

The Study, now in its 22nd year, is a comprehensive analysis of the new-vehicle purchase experience and is based on responses from 35,805 new-vehicle buyers who registered their vehicles in May 2008. Overall customer satisfaction is measured based on five factors: dealership facility, salesperson, paperwork/finance process, delivery process and vehicle price.

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Microsoft Corp. today announced participation in the following upcoming events with the financial community. Interested parties can view a webcast of this event on Microsoft’s Investor Relations Web site at http://www.microsoft.com/msft.

NASDAQ Annual Investor Program
Wednesday, December 3, 2008
8:00 a.m. GMT / 12:00 a.m. PT
Neil Holloway, vice president, Business Strategy, Microsoft International

Credit Suisse Annual Technology Conference
Wednesday, December 3, 2008
9:00 a.m. MT / 8:00 a.m. PT
Bill Veghte, senior vice president, Windows Business

Barclays Capital Technology Conference
Wednesday, December 10, 2008
12:45 p.m. PT
Bob Kelly, corporate vice president, Infrastructure Server Marketing

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Royal Philips Electronics (NYSE:PHG, AEX:PHI) announced today that it has completed the cancellation of in total 38,496,058 of its own shares which were acquired for cancellation during the period August 25, 2008 up to and including November 14, 2008. The average repurchase price was EUR 18.19 per share. These shares have been repurchased under the EUR 5 billion share repurchase program which Philips announced on December 19, 2007.

As a result of this cancellation, Philips’ issued share capital as per today amounts to 972,411,769 shares.

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-BitTorrent, the global standard technology for the delivery of rich media on the Internet, today announced the appointment of Eric Klinker as the company’s new chief executive officer (CEO). As a well-respected and recognized technologist, Klinker brings more than two decades of networking, content delivery, and management experience to BitTorrent. Klinker was also appointed to BitTorrent’s Board of Directors.

“BitTorrent has revolutionized the way publishers and users distribute and consume rich media on the Internet and has an active user community with an install base north of 170 million clients around the world,” said Eric Klinker, CEO of BitTorrent, Inc. “In my new role, I look forward to working with our management team to further propel BitTorrent’s technology adoption, capitalize on the company’s growth opportunities, and drive value for our robust ecosystem of partners, which includes consumers, content owners, hardware makers, software developers and network operators.”

Klinker has served as the company’s chief technology officer (CTO) since Q2 2007 and has been instrumental to the continued development of the BitTorrent client, BitTorrent’s Delivery Network Accelerator (DNA) content delivery service, BitTorrent’s Software Development Kit (SDK) and BitTorrent’s proprietary advanced congestion control technology. The latter has been at the center of BitTorrent’s influential discussions and well-publicized collaboration with Comcast Corporation as it seeks to deploy a protocol-agnostic network management solution. BitTorrent is active inside the global standards body for the Internet, the Internet Engineering Task Force (IETF), to standardize this technology and allow other peer-to-peer (P2P) providers to leverage its profound benefits to both consumers and network partners.

“Eric is the right leader for BitTorrent,” said Ping Li, partner at Accel Partners and BitTorrent board member. “Eric possesses the right combination of technology expertise and management experience. As a known innovator, he has what it takes to maintain, if not enhance, BitTorrent’s status as the world’s leading P2P technology provider and to drive even greater value for its global community of users, including end consumers, software developers, content publishers, hardware manufacturers, and Internet Service Providers (ISPs).”

David Chao, BitTorrent board member and co-founder at DCM, said, “Eric has a proven track record and has demonstrated clear leadership at the company since he joined, helping to lead BitTorrent’s world-class engineering team and provide strategic vision for the company.”

Prior to joining BitTorrent in 2007, Klinker served as CTO and vice president of engineering at Internap, a leading provider of network optimization and content delivery solutions. During his tenure at Internap, Klinker led a world-class information technology (IT) and engineering team, and oversaw the expansion of Internap’s core products that resulted in increased revenues and rapid growth in shareholder value. Previously, Klinker worked at netVmg, Excite@Home and the Naval Research Laboratory. Klinker holds a bachelor’s degree in electrical engineering from the University of Illinois, Urbana-Champaign, and a master’s degree in electrical engineering from the Naval Postgraduate School in Monterey, California.

Pinnacle Energy Corp. (OTCBB: PENC), an independent oil and gas producer, today announced that it has named Mr. D. Bruce Holland and Mr. Joe Boury to the Company’s Board of Advisors.

As oil and gas industry veterans, Holland and Boury bring more than 55 years of combined operational and financial expertise to Pinnacle Energy. Pinnacle’s Board of Advisors plans to assist the Company with a broad range of issues, including exploration, operations and finance. Mr. Holland and Mr. Boury were selected due to their track records of success in the oil and gas industry, which will contribute to Pinnacle’s overall operational excellence.

“We are thrilled that Mr. Holland and Mr. Boury have joined our Board of Advisors,” said Pinnacle Energy CEO Nolan Weir. “Each of these gentlemen brings unique and valuable experience to Pinnacle Energy, which will assist us as we move forward to execute our growth plans.”

D. Bruce Holland has more than 30 years of broad-based experience in oil field operations, marketing and sales. He has owned and operated oil field properties across the Southwestern United States, in New Mexico and Texas. Holland has also been a principal owner and operator of oil service companies, providing dozer and tank truck services to actively producing oil fields.

Joe Boury has spent more than 23 years in various oil company exploration and management positions, including reservoir engineering and other activities associated with increasing proven reserves and improving the output of existing oil and gas assets. Mr. Boury is also an expert in strategic planning and development, as well as software and services that increase operational efficiency and productivity for oil producing enterprises.

About Pinnacle Energy Corporation:

Formerly named Gas Salvage Corp., Pinnacle Energy trades under the OTC symbol PENC. Pinnacle Energy’s key assets include six wells located in Pawnee County, Oklahoma, USA, producing sweet crude oil and natural gas. More information about the company may be found within filings made with the Securities and Exchange Commission.

Pinnacle Energy Corp. is an independent oil and gas producer focused on acquiring and developing mature oil & gas producing assets. Pinnacle Energy Corp. is headquartered at 333 River Front Ave., Suite 153, Calgary, Alberta, T2G 5R1, Canada and can be contacted at 866.822.0325.

Eastman Kodak Company (NYSE:EK) today reported third-quarter earnings from continuing operations of $101 million, or $0.35 per share, on sales of $2.405 billion. Kodak’s revenue from digital businesses rose 2% to $1.641 billion, driven by strong year-over-year increases in digital capture, consumer inkjet systems, and document imaging products.

“Despite the global economic weakness, Kodak was profitable in the third quarter, maintained strong liquidity, and held or improved our market position in key businesses, reflecting the benefits of the company’s multi-year transformation,” said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. “We remain confident that our strategy is sound, but given today’s challenging economic climate, we are taking a number of specific actions to strengthen our operations going forward. These include more tightly focusing our portfolio of investments, intensifying our emphasis on generating cash, and aligning our cost structure to the new economic realities. These actions will better position Kodak to manage through this economic environment and to take full advantage of the recovery when it comes.”

For the third quarter of 2008:

• Sales worldwide totaled $2.405 billion, a decrease of 5% from $2.533 billion in the third quarter of 2007. Revenue from digital businesses totaled $1.641 billion, a 2% increase from $1.603 billion in the prior-year quarter. Revenue from the company’s traditional business decreased 18% to $764 million on continued declines in Film Capture and Traditional Photofinishing.
• The company’s third-quarter earnings from continuing operations, before interest expense, other income (charges), net, and income taxes were $147 million, compared with earnings on the same basis of $15 million in the year-ago quarter.

On the basis of U.S. generally accepted accounting principles (GAAP), the company reported third-quarter earnings from continuing operations of $101 million, or $0.35 per share, compared with earnings on the same basis of $32 million, or $0.11 per share, in the year-ago period. Items of net benefit that impacted comparability in the third quarter of 2008 totaled $40 million after tax, or $0.13 per share. The most significant items include certain changes to the company’s post-employment benefits, which provided favorability of $0.31 per share, offset by restructuring and rationalization costs of $0.16 per share. Items of net expense that impacted comparability in the prior-year quarter totaled $101 million after tax, or $0.35 per share, primarily reflecting restructuring costs.

Other third-quarter 2008 details:

• Gross Profit margin was 27.5% for the quarter, a slight improvement from 26.7% in the year-ago period. This margin improvement reflects the changes in post-employment benefits along with increased intellectual property licensing revenues, favorable foreign exchange, and cost reduction initiatives including the change in depreciation associated with the previously announced extension of the useful life assumptions of traditional manufacturing assets. These factors were offset by negative price/mix, the continued investment in consumer inkjet, and the impact of higher year-over-year commodity costs for the quarter.
• Selling, General and Administrative (SG&A) expenses were $363 million in the third quarter, down 14%, or $61 million, from $424 million in the year-ago quarter. As a percentage of revenue, SG&A was 15.1%, compared with 16.7% in the year-ago quarter.
• Third-quarter cash use before dividends was $102 million, a $79 million increase in cash usage from the year-ago period. This corresponds to net cash used in continuing operations from operating activities on a GAAP basis of $50 million in the third quarter, compared with net cash provided of $1 million in the third quarter 2007. This increase in cash used is due primarily to lower cash earnings, including the favorable non-cash impact of a reduction in post-employment benefits and a non-recurring intellectual property licensing agreement for which cash will be received in 2009. These impacts were offset by improvements in working capital and lower restructuring payments.
• The company’s debt level stood at $1.303 billion as of Sept. 30, 2008, a reduction of $294 million as compared to the year-end 2007 debt level of $1.597 billion.
• Kodak held $1.842 billion in cash and cash equivalents as of Sept. 30, 2008.
• In the quarter, the company repurchased approximately 14 million shares of its common stock at a cost of $219 million. Since maintaining financial flexibility is critical in the current environment, additional share repurchases will depend on the company’s assessment of overall economic and market conditions. The previously disclosed share repurchase authorization remains in effect through the end of 2009, and the company will continue to provide updates on the program at the end of each quarter.

Segment sales and earnings from continuing operations before interest, taxes, and other income and charges (segment earnings from operations), are as follows:

• Consumer Digital Imaging Group sales for the third quarter were $820 million, a 7% increase from the prior-year quarter. Earnings from operations for the segment were $23 million, compared with $18 million in the year-ago quarter. Third-quarter earnings were driven primarily by cost improvements in digital cameras and digital picture frames, and increased intellectual property licensing, partially offset by unfavorable price/mix in digital cameras and continued investment in consumer inkjet.
• Graphic Communications Group sales for the third quarter were $821 million, a 2% decrease from the year-ago quarter. Earnings from operations for the segment totaled $23 million, compared with earnings of $36 million in the year-ago quarter. This earnings decline was primarily driven by U.S. market softness for Prepress Solutions as well as unfavorable manufacturing costs related to higher year-over-year raw material costs for the quarter.
• Film, Photofinishing and Entertainment Group third-quarter revenue was $764 million, down from $928 million in the year-ago quarter, representing a decrease of 18%, attributable to decreased sales volume of Film Capture and Traditional Photofinishing. Earnings from operations for the segment were $77 million, compared with $113 million in the year-ago quarter. These results reflect the effects of lower industry sales volumes and higher year-over-year commodity costs for the quarter, partly offset by decreased SG&A costs and lower depreciation expense related to the company’s change in useful life assumptions regarding traditional manufacturing assets.

“The economic environment is increasingly difficult,” said Perez. “Given the importance of the fourth quarter to the company’s full-year performance, and the unprecedented level of uncertainty surrounding the global economy, we must be prudent going into the fourth quarter and into 2009, which requires us to adjust our financial outlook. That said, we believe in our overall strategy and are optimistic about the future, despite the current economic realities. We have a healthy balance sheet, innovative products and services, and a well-respected brand that will see us beyond this challenging period.”

Updated 2008 Second-Half and Full-Year Outlook

For 2008, Kodak remains focused on three key financial metrics, as it transforms itself into a growing company with sustained profitability: revenue growth driven by digital businesses, earnings from continuing operations, and cash generation. The company is providing an updated outlook for 2008 performance against these metrics to reflect the impact of global economic conditions on projected top-line growth and earnings.

Kodak previously forecasted total revenue growth in the range of 0% to 2% and digital revenue growth in the range of 7% to 10%. For the full year, the company now expects total revenue to decline in the range of 3% to 5%, and digital revenue growth of between 1% to 4%, reflecting its strong performance in the first half of the year. For the second half of the year, the company expects total revenue to decline in the range of 6% to 10% and digital revenue to decline 1% to 5%.

The company previously forecasted earnings from operations (EFO), a non-GAAP measure, to be at the low end of a range of $400 million to $500 million. The company now expects second-half 2008 EFO to be in the range of $275 million to $325 million, which translates to $200 million to $250 million for the full year. This corresponds to forecasted 2008 GAAP earnings from continuing operations before interest expense, other income (charges), net, and income taxes, of between $220 million and $270 million for the second half of 2008, and between $160 million and $210 million for the full year. Full-year GAAP earnings include pre-tax charges of between $125 million and $150 million for carryover restructuring and other rationalization costs. These charges are higher than the previously communicated range of $80 million to $100 million due to intensified efforts around cost rationalization in the current environment. The primary factors resulting in this revised guidance are market-driven softness in overall revenues along with accompanying pricing, mix and foreign exchange effects, thereby reducing gross profit percentage and dollars.

With respect to cash generation, despite the challenging economic environment, the company expects to achieve in excess of $500 million in cash generation before dividends for the fourth quarter. This corresponds to net cash provided by operating activities on a GAAP basis for the fourth quarter in excess of $490 million. Primary factors resulting in the lower cash outlook are: earnings-related reductions associated with revenue softness and gross profit declines across the business driven by price/mix, a change in cash from intellectual property arrangements including an agreement reached in 2008 for which cash will be received in 2009, and a reduction in proceeds from sales of real estate.

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Electronic Arts Inc. (NASDAQ:ERTS) today announced preliminary financial results for its fiscal second quarter ended September 30, 2008.

Fiscal Second Quarter Results (comparisons are to the quarter ended September 30, 2007)

Net revenue for the second quarter was $894 million, up $254 million as compared with $640 million for the prior year. During the quarter, EA had a net deferral of $232 million of net revenue related to certain online enabled packaged goods games and digital content as compared with $296 million in the prior year.

Non-GAAP net revenue was $1.126 billion, up 20 percent as compared with $936 million for the prior year. Sales were driven by the launches of Madden NFL 09, SPORE™, Mercenaries 2: World in Flames™, NCAA® Football 09, Tiger Woods PGA TOUR 09, Warhammer® Online: Age of Reckoning™, as well as the continued strength of Rock Band™.

Net loss for the quarter was $310 million as compared with net loss of $195 million for the prior year. Diluted loss per share was $0.97 as compared with diluted loss per share of $0.62 for the prior year.

Non-GAAP net loss was $20 million as compared with non-GAAP net income of $87 million a year ago. Non-GAAP diluted loss per share was $0.06 as compared with non-GAAP diluted earnings per share of $0.27 for the prior year.

Trailing-twelve-month operating cash flow was $219 million as compared with $145 million a year ago. The Company ended the quarter with cash and short-term investments of $1.825 billion.

“Considering the slow down at retail we’ve seen in October, we are cautious in the short term,” said John Riccitiello, Chief Executive Officer. “Longer term, we are very bullish on the game sector overall and on EA in particular. The industry is growing double-digits on the strength of three new game consoles and increases in the number of homes with broadband internet connections. EA is well positioned to benefit from these technology drivers due to the strength of our creative studios and our broad collection of game properties–from The Sims, to Spore and Madden NFL, to Warhammer Online.”

Highlights

• Madden NFL 09 sold 4.5 million copies and was the number one title across all platforms in the quarter based on NPD data.
• SPORE is a hit selling nearly 2.0 million copies in just 3 weeks – over 40 million creatures have been uploaded into Sporepedia™. SPORE is the number one title on the PC in North America and number three title in Europe year-to-date.
• Warhammer Online: Age of Reckoning, an MMO from EA’s Mythic Entertainment studio, sold 1.2 million copies in the quarter – with over 800 thousand current players.
• The EA SPORTS core portfolio of annual simulation games takes a step up in quality – up 4 points year-over-year according to Metacritic’s aggregated review score system on the Xbox 360® and PLAYSTATION®3 entertainment systems.
• EA was awarded 5 of the 9 honors at the Leipzig Games Convention in Germany –Spore as best PC game; Mirror’s Edge™ as best Xbox 360 game; Skate It as best Wii™ game; Warhammer Online: Age of Reckoning as best online game; and Sonic Chronicles, a game developed by EA BioWare, won best Nintendo DS™ game.
• EA Mobile is the world’s leading publisher of games for phones – with revenue of $47 million – up 24 percent year-over-year.
• EA BioWare and LucasArts announced the development of Star Wars®: The Old Republic™, a story-driven massively multiplayer online PC game.
• EA signs publishing agreements with Grasshopper Manufacture and Epic Games.

EA Announces Cost Reduction Plan

EA announced today a cost reduction plan, which will include the elimination of approximately 6% of the Company’s workforce. The Company estimates its cost reduction plan will result in annual pre-tax cost savings of approximately $50 million.

Business Outlook

The following forward-looking statements, as well as those made above, reflect expectations as of October 30, 2008. Results may be materially different and are affected by many factors, including: development delays on EA’s products; competition in the industry; the health of the economy in the U.S. and abroad and the related impact on discretionary consumer spending; changes in anticipated costs; expected savings and impact on EA’s operations of the Company’s cost reduction plan; consumer demand for console hardware and the ability of the console manufacturers to produce an adequate supply of consoles to meet that demand; changes in foreign exchange rates; consumer demand for games for the PlayStation®2; the financial impact of potential future acquisitions by EA; the popular appeal of EA’s products; EA’s effective tax rate; and other factors detailed in this release and in EA’s annual and quarterly SEC filings.

In fiscal 2009, the Company began using a fixed, long-term projected tax rate of 28 percent internally to evaluate its operating performance, to forecast, plan and analyze future periods, and to assess the performance of its management team. Accordingly, the Company has applied the same 28 percent tax rate to its fiscal 2009 non-GAAP financial results. The Company expects its GAAP tax expense to be approximately $35 to $70 million for fiscal 2009.

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Ericsson reported a third quarter 2008 sales increase of 13% from last year, amounting to SEK 49.2 billion (approx. US$ 6.7 billion). Sales in the first nine months amounted to 141.9 billion (approx. US$ 19.4 billion). Operating income amounted to SEK 5.7 billion (approx. US$ 800 million).

“We had a good third quarter with strong traffic and revenue growth across all of our major geographies thanks to the underlying strength of our core search and ads business. The measurability and ROI of search-based advertising remain key assets for Google,” said Eric Schmidt, CEO of Google. “While we are realistic about the poor state of the global economy, we will continue to manage Google for the long term, driving improvements to search and ads, while also investing in future growth areas such as enterprise, mobile, and display.”

Q3 Financial Summary

Google reported revenues of $5.54 billion for the quarter ended September 30, 2008, an increase of 31% compared to the third quarter of 2007 and an increase of 3% compared to the second quarter of 2008.
Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the third quarter of 2008, TAC totaled $1.50 billion, or 28% of advertising revenues.

Google reports operating income, net income, and earnings per share
(EPS) on a GAAP and non-GAAP basis. The non-GAAP measures, as well as free cash flow, an alternative non-GAAP measure of liquidity, are described below and are reconciled to the corresponding GAAP measures in the accompanying financial tables.

l GAAP operating income for the third quarter of 2008 was $1.74
billion, or 31% of revenues. This compares to GAAP operating income of $1.58 billion, or 29% of revenues, in the second quarter of 2008.
Non-GAAP operating income in the third quarter of 2008 was $2.02 billion, or 37% of revenues. This compares to non-GAAP operating income of $1.85 billion, or 34% of revenues, in the second quarter of 2008.

l GAAP net income for the third quarter of 2008 was $1.35 billion as
compared to $1.25 billion in the second quarter of 2008. Non-GAAP net income in the third quarter of 2008 was $1.56 billion, compared to
$1.47 billion in the second quarter of 2008.

l GAAP EPS for the third quarter of 2008 was $4.24 on 318 million
diluted shares outstanding, compared to $3.92 for the second quarter of 2008 on 318 million diluted shares outstanding. Non-GAAP EPS in the third quarter of 2008 was $4.92, compared to $4.63 in the second quarter of 2008.

l Non-GAAP operating income, non-GAAP operating margin, non-GAAP net
income, and non-GAAP EPS are computed net of stock-based compensation (SBC). In the third quarter of 2008, the charge related to SBC was $280 million as compared to $273 million in the second quarter of 2008. Tax benefits related to SBC have also been excluded from non- GAAP net income and non-GAAP EPS. The tax benefit related to SBC was
$63 million in the third quarter of 2008 and $48 million in the second quarter of 2008. Reconciliations of non-GAAP measures to GAAP operating income, operating margin, net income, and EPS are included at the end of this release.

Q3 Financial Highlights

Revenues – Google reported revenues of $5.54 billion for the quarter ended September 30, 2008, representing a 31% increase over third quarter 2007 revenues of $4.23 billion and a 3% increase over second quarter 2008 revenues of $5.37 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting TAC.

Google Sites Revenues - Google-owned sites generated revenues of $3.67 billion, or 67% of total revenues, in the third quarter of 2008. This represents a 34% increase over third quarter 2007 revenues of $2.73 billion and a 4% increase over second quarter 2008 revenues of $3.53 billion.

Google Network Revenues - Google’s partner sites generated revenues, through AdSense programs, of $1.68 billion, or 30% of total revenues, in the third quarter of 2008. This represents a 15% increase over network revenues of $1.45 billion generated in the third quarter of
2007 and a 1% increase over second quarter 2008 revenues of $1.66 billion.

International Revenues - Revenues from outside of the United States totaled $2.85 billion, representing 51% of total revenues in the third quarter of 2008, compared to 48% in the third quarter of 2007 and 52% in the second quarter of 2008. Had foreign exchange rates remained constant from the second quarter of 2008 through the third quarter of 2008, our revenues in the third quarter of 2008 would have been $59 million higher. Had foreign exchange rates remained constant from the third quarter of 2007 through the third quarter of 2008, our revenues in the third quarter of 2008 would have been $168 million lower.

In the third quarter, we recognized a benefit of $34 million to revenue through our foreign exchange risk management program.

Revenues from the United Kingdom totaled $776 million, representing 14% of revenue in the third quarter of 2008, compared to 16% in the third quarter of 2007 and 14% in the second quarter of 2008.

Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 18% over the third quarter of 2007 and increased approximately 4% over the second quarter of 2008.

TAC - Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $1.50 billion in the third quarter of 2008. This compares to TAC of $1.47 billion in the second quarter of 2008. TAC as a percentage of advertising revenues was 28% in the third quarter, compared to 28% in the second quarter of 2008.

The majority of TAC expense is related to amounts ultimately paid to our AdSense partners, which totaled $1.33 billion in the third quarter of 2008. TAC is also related to amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $167 million in the third quarter of 2008.

Other Cost of Revenues - Other cost of revenues, which is comprised primarily of data center operational expenses, amortization of intangible assets, content acquisition costs as well as credit card processing charges, increased to $678 million, or 12% of revenues, in the third quarter of 2008, compared to $674 million, or 13% of revenues, in the second quarter of 2008.

Operating Expenses - Operating expenses, other than cost of revenues, were $1.63 billion in the third quarter of 2008, or 29% of revenues, compared to $1.64 billion in the second quarter of 2008, or 31% of revenues. The operating expenses in the third quarter of 2008 included $859 million in payroll-related and facilities expenses, compared to $810 million in the second quarter of 2008.

Stock-Based Compensation (SBC) – In the third quarter of 2008, the total charge related to SBC was $280 million as compared to $273 million in the second quarter of 2008.

We currently estimate stock-based compensation charges for grants to employees prior to October 1, 2008 to be approximately $1.1 billion for 2008. This does not include expenses to be recognized related to employee stock awards that are granted after October 1, 2008 or non- employee stock awards that have been or may be granted.

Operating Income - GAAP operating income in the third quarter of 2008 was $1.74 billion, or 31% of revenues. This compares to GAAP operating income of $1.58 billion, or 29% of revenues, in the second quarter of 2008. Non-GAAP operating income in the third quarter of
2008 was $2.02 billion, or 37% of revenues. This compares to non-GAAP operating income of $1.85 billion, or 34% of revenues, in the second quarter of 2008.

Interest Income and Other, Net – Interest income and other was $21 million in the third quarter of 2008, compared with $58 million in the second quarter of 2008. The decrease was primarily related to an increase in expenses substantially due to more activity under our foreign exchange risk management program. The cost of the options used to manage our foreign exchange risk is amortized on a mark-to-market basis. As a result, the amount of amortization expense we recognize in any particular quarter is impacted by how much the option moves into or out of the money, as well as the underlying currency’s volatility.

Net Income – GAAP net income for the third quarter of 2008 was $1.35 billion as compared to $1.25 billion in the second quarter of 2008.
Non-GAAP net income was $1.56 billion in the third quarter of 2008, compared to $1.47 billion in the second quarter of 2008. GAAP EPS for the third quarter of 2008 was $4.24 on 318 million diluted shares outstanding, compared to $3.92 for the second quarter of 2008, on 318 million diluted shares outstanding. Non-GAAP EPS for the third quarter of 2008 was $4.92, compared to $4.63 in the second quarter of 2008.

Income Taxes – Our effective tax rate was 24% for the third quarter of 2008.

Cash Flow and Capital Expenditures – Net cash provided by operating activities for the third quarter of 2008 totaled $2.18 billion as compared to $1.77 billion for the second quarter of 2008. In the third quarter of 2008, capital expenditures were $452 million, the majority of which was related to IT infrastructure investments, including data centers, servers, and networking equipment. Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures. In the third quarter of 2008, free cash flow was $1.73 billion.

We expect to continue to make significant capital expenditures.

A reconciliation of free cash flow to net cash provided by operating activities, the GAAP measure of liquidity, is included at the end of this release.

Cash – As of September 30, 2008, cash, cash equivalents, and marketable securities were $14.4 billion.

On a worldwide basis, Google employed 20,123 full-time employees as of September 30, 2008, up from 19,604 full-time employees as of June 30, 2008.

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Broadcom Corporation (NASDAQ:BRCM) , a global leader in semiconductors for wired and wireless communications, and AMD (NYSE:AMD) today announced that the companies have entered into a definitive agreement for Broadcom to acquire AMD’s digital TV (DTV) business.

The acquisition of AMD’s DTV business is expected to enable Broadcom to immediately scale its DTV business, and, in conjunction with its existing products, to offer a complete product line that covers all segments of the DTV market ranging from low-end value and mid-range quality to high-end interactive platforms and panel processors. The acquisition also is intended to expand Broadcom’s existing tier one customer base, which includes the top DTV brands worldwide. This deal aims to enhance and strengthen Broadcom’s innovative DTV system solution offerings while delivering the scale and focus needed to forge a market-leading DTV business.

In connection with the transaction, approximately 530 members of AMD’s dedicated DTV team, in addition to certain employees directly supporting this team, located in six primary design centers around the world, will be invited to join Broadcom. AMD’s DTV product line includes all Xilleon(TM) integrated DTV processors and complete turnkey reference designs, as well as NXT receiver ICs, the Theater(TM) 300 DTV processor, and a line of panel processors that perform advanced motion compensation, frame rate conversion and scaling.

“The acquisition of AMD’s DTV business, which will become the core of Broadcom’s DTV line of business, will enable us to significantly scale and accelerate the completion of our digital TV product portfolio while also expanding our tier one customer base and positions us to achieve leadership and long-term growth in this important market segment,” said Daniel Marotta, Senior Vice President & General Manager of Broadcom’s Broadband Communications Group. “We believe our combined DTV team will be in an excellent position to grow and thrive in this burgeoning market by bringing best-in-class people, technology, solutions and support to our customers.”

“AMD is executing a strategic plan to transform the company, becoming leaner and more focused while seeking to create a business model to deliver sustainable profitability,” said Dirk Meyer, President and Chief Executive Officer of AMD. “The sale of our DTV business is a key step in AMD’s transformation, helping to strengthen our balance sheet, lower our breakeven point, and hone our focus in order to take full advantage of our position as a leader in both microprocessors and graphics technology. Broadcom will be a great fit for our talented DTV employees and the DTV products they have created.”

In connection with the acquisition, Broadcom will pay approximately $192.8 million in cash in exchange for AMD’s DTV assets. A portion of the consideration payable to AMD will be placed into escrow pursuant to the terms of the definitive asset purchase agreement. The board of directors of each company has approved the transaction and shareholder/stockholder approval of the transaction is not required by either company. The closing, which is targeted to occur during Broadcom’s fourth quarter ending December 31, 2008, remains subject to customary closing conditions and review by relevant regulatory organizations. Broadcom may record a one-time charge for purchased in-process research and development expenses related to the acquisition in the quarter in which the transaction closes. The amount of that charge, if any, has not yet been determined.

Conference Call Information

Broadcom will conduct a conference call with analysts and investors today at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time). The company will broadcast the conference call via webcast over the Internet and will post its presentation material on the Investors section of the Broadcom website at http://www.broadcom.com/investors. To listen to the webcast, please dial (847) 619-6368 or visit the Investors section of the Broadcom website. The webcast will be recorded and available for replay until 12:59 a.m. Eastern Time, Tuesday, September 9, 2008 (9:59 p.m. Pacific Time, Monday, September 8, 2008).

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