UFP Technologies (UFPT) Announces Strong 2009 Results

Mar. 3, 2010 (Business Wire) — UFP Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and component products, today reported net income of $5.9 million or $0.94 per diluted common share outstanding for its fiscal year ended December 31, 2009, 16% higher than net income of $5.1 million or $0.82 per diluted common share outstanding for its fiscal year 2008. Sales for 2009 were $99.2 million or 9.8% less than 2008 sales of $110 million.

For its fourth quarter ended December 31, 2009, the Company reported net income of $2.9 million or $0.45 per diluted common share outstanding, compared to net income of $1.1 million or $0.19 per diluted common share outstanding in the same period in 2008. Sales for the fourth quarter of 2009 were $29.0 million or 11.4% higher than 2008 fourth quarter sales of $26.1 million.

“I am very pleased with our strong finish to 2009,” said R. Jeffrey Bailly, Chairman & CEO. “Solid demand in our medical and military markets, coupled with the positive impact of our now fully integrated acquisitions, enabled us to generate record profits.”

“These results are a testament to our company’s depth and our responsiveness to changing market conditions and growth opportunities,” Bailly said. “Early in 2009, we scaled back the business in the face of significantly reduced customer demand. Yet we maintained the ability to identify exciting acquisition candidates, quickly close the transactions, and efficiently integrate those businesses.”

“We finished the year in excellent financial condition. With $15 million in cash, we are well positioned to grow our business both internally and through additional strategic acquisitions,” Bailly added. “This, combined with improving customer demand, leaves me optimistic about 2010 and beyond.”

UFP Technologies is a leading designer and manufacturer of interior protective packaging solutions using molded fiber, vacuum-formed plastics, and molded and fabricated foam plastics. The Company also designs and manufactures engineered component solutions using laminating, molding, and fabricating technologies. The Company primarily serves the automotive, computers and electronics, medical, aerospace and defense, consumer, and industrial markets.

This news release contains forward-looking information that involves risks and uncertainties, including statements about the Company’s prospects, anticipated advantages the Company expects to realize from its acquisition strategies, the Company’s growth potential and strategies for growth, and statements about customer demand. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation risks associated with the identification of suitable acquisition candidates and the successful, efficient execution of acquisition transactions and integration of any such acquisition candidates, as well as other risks and uncertainties that are detailed in the documents filed by the Company with the SEC. Accordingly, actual results may differ materially. Readers are referred to the documents filed by the Company with the SEC, specifically the last reports on Forms 10-K and 10-Q. The forward-looking statements contained herein speak only of the Company’s expectations as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based.

Trintech (TTPA) Reports Fourth Quarter and Fiscal Year 2010 Financial Results

CONTACT:  Trintech Group plc
          Paul Byrne, President
          Joseph Seery, VP Finance, Group
          +353 1 293 9840
          paul.byrne@trintech.com
          joseph.seery@trintech.com

SouthWest Water Company (SWWC) Signs Agreement to be Acquired by Long-Term Infrastructure Investor Group

Mar. 3, 2010 (Business Wire) — SouthWest Water Company (NASDAQ:SWWC) today announced it has entered into a definitive merger agreement to be acquired for approximately $275 million in cash, or $11.00 per share, by institutional investors advised by J.P. Morgan Asset Management and Water Asset Management L.L.C. (the partnership).

The all-cash offer represents a 56% premium over SouthWest Water’s closing share price on March 2, 2010 and a premium of 71% over the average 30-day closing price ended March 2, 2010. After taking into account SouthWest Water’s outstanding debt the transaction represents a total enterprise value of approximately $427 million.

The Board of Directors of SouthWest Water and the members of the partnership unanimously approved the agreement, which is subject to customary closing conditions, including approval of SouthWest Water’s shareholders and various regulatory agencies.

“I am excited about the opportunity that this transaction presents for our customers, employees and the communities we serve, as well as the value it provides to our shareholders,” said Mark Swatek, president and chief executive officer of SouthWest Water. “The partnership is extremely committed to our industry and its infrastructure needs, as well as the stability of the company’s operations, quality customer service and community involvement. We are confident that this transaction will facilitate SouthWest Water’s access to long-term capital and enhances our ability to invest in systems to the benefit of the customers and communities we serve.”

Andrew Walters, vice president of J.P. Morgan Asset Management’s Infrastructure Investments Group, said, “We believe that SouthWest Water is an excellent, long-term investment for the partnership. We look forward to working with SouthWest Water’s experienced management and talented workforce to deliver cost effective customer service to a growing customer base over time. A seamless transition and continuity are high priorities for us and we look forward to continuing to work with management and employees in the company’s service territories to ensure continued responsiveness to needs of local customers and communities.”

“SouthWest Water has made a significant commitment to improve the water service infrastructure in the regions it serves, and, in turn, enhance service and reliability to its customers,” said Disque Deane Jr. of Water Asset Management. “Our partnership is committed to funding necessary maintenance and upgrades over the long-term.”

Prior to the closing of the acquisition, members of the partnership will invest approximately $16 million in 2.7 million newly issued SouthWest Water shares under a private placement, priced at $6.00 per share. SouthWest Water intends to use the proceeds to assist the financing of ongoing utility infrastructure investments. As the offer and sale of the shares of common stock will not be registered under the Securities Act of 1933 or applicable state securities laws, the shares of common stock may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This document is being issued pursuant to and in accordance with Rule 135c under the Securities Act and does not constitute an offer to sell or a solicitation of an offer to buy the shares of common stock.

Upon completion of the transaction, SouthWest Water’s common stock will cease to be publicly traded. Wells Fargo Securities, LLC acted as financial advisor to the Special Committee of the Board of Directors of SouthWest Water which was formed to evaluate SouthWest Water’s strategic alternatives. Macquarie Capital (USA) Inc. acted as financial advisor to the partnership.

Conference Call

The company will hold a conference call to discuss the transaction at 12:30 p.m. Eastern (9:30 a.m. Pacific). The call will be web cast live so that interested parties may listen over the Internet at the company’s website at www.swwc.com under the investor relations button at the top of the page. For those unable to participate in the live web cast, a replay will be available shortly after the call on the company’s website. A telephonic replay will also be available beginning at 3:30 p.m. Eastern (12:30 p.m. Pacific) until midnight March 10, 2010 at 888.286.8010 (international callers 617.801.6888), passcode 37139231.

About SouthWest Water Company

SouthWest Water Company provides a broad range of operations, maintenance and management services, including water production, treatment and distribution; wastewater collection and treatment; customer service; and utility infrastructure construction management. The company owns regulated public utilities and also serves cities, utility districts and private companies under contract. More than a million people in 9 states depend on SouthWest Water for high-quality, reliable service. Additional information may be found on the company’s website: www.swwc.com.

About J.P. Morgan Asset Management – Global Real Assets

J.P. Morgan Asset Management – Global Real Assets has approximately $43 billion in real estate and infrastructure assets, as of December 31, 2009. With a 40-year history of successful investing and a staff of 359 professionals, J.P. Morgan Asset Management – Global Real Assets identifies, analyzes, negotiates, acquires, develops, redevelops, renovates, operates, maintains, finances and sells assets, on behalf of its clients. J.P. Morgan Asset Management’s broad investment capabilities and framework for analyzing opportunities in today’s complex real estate and infrastructure markets provide critical insights for its institutional clients in both the public and private markets.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under supervision of $1.5 trillion, is a global leader in investment and wealth management. J.P. Morgan Asset Management’s clients include institutions, retail investors and high-net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. J.P. Morgan Asset Management provides trust and estate, banking and brokerage services to high-net-worth clients and retirement services for corporations and individuals. JPMorgan Chase & Co. (NYSE:JPM), the parent company of J.P. Morgan Asset Management, is a leading global financial services firm with assets of $2.1 trillion and operations in more than 60 countries. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

About Water Asset Management, L.L.C.

Water Asset Management, L.L.C. is a water industry focused investment firm, that invests exclusively in water related companies and assets worldwide. As the third largest shareholder of SouthWest Water Company, WAM has been a committed and engaged shareholder for many years. Additional information is available at www.waterinv.com.

Forward-Looking Statements

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including, but not limited to, statements relating to the proposed transaction and its potential effects on the company and its operations, involve risks and uncertainties, as well as assumptions that, if they prove incorrect or never materialize, could cause the results of the company to differ materially from those expressed or implied by such forward-looking statements. Actual results may differ materially from these expectations due to changes in regulatory, political, weather, economic, business, competitive, market, environmental and other factors. More detailed information about these factors is contained in the company’s filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in the company’s 2008 Annual Report on Form 10-K. The company assumes no obligation to update these forward-looking statements to reflect any change in future events.

Additional Information

In connection with the proposed transaction, SouthWest Water will file a proxy statement with the Securities and Exchange Commission (SEC). Before making any voting or investment decision, investors and security holders are urged to carefully read the entire proxy statement and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information about the proposed transaction. A definitive proxy statement will be sent to shareholders in connection with the proposed transaction. Investors and security holders may obtain a free copy of the proxy statement (when available) and other documents filed at the SEC’s website at http://www.sec.gov. The proxy statement and such other documents may also be obtained at no cost from SouthWest Water by directing the request to SouthWest Water Company, 624 S. Grand Avenue, Suite 2900, Los Angeles, CA, 90017, Attention: Shareholder Services.

The company and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from the security holders of the company in connection with the proposed transaction. Information concerning the special interests of these directors, executive officers and other members of the company’s management and employees in the proposed transaction will be included in the company’s proxy statement referenced above. Information regarding the company’s directors and executive officers is also available in its Annual Report on Form 10-K for the year ended December 31, 2008 and in its proxy statement for its 2009 Annual Meeting of Stockholders, which documents are filed with the SEC. These documents are available free of charge at the SEC’s website at www.sec.gov and from the company at the address provided above.

Metropolitan Health Networks (MDF) Reports Record 2009 Results of Operations

WEST PALM BEACH, Fla.–(BUSINESS WIRE)–Metropolitan Health Networks, Inc. (NYSE Amex:MDF), a leading provider of healthcare services in Florida, today announced the financial results for their fourth quarter and year ended December 31, 2009. Highlights include the following:

• Revenue of $354.4 million in 2009, a 11.7% increase compared to 2008;
• Net income of $14.4 million in 2009 or $0.32 per basic share, compared to $10.2 million or $0.21 per basic share in 2008;
• Total customer months increased by 7.2% in 2009 over 2008; and
• Total outstanding shares of common stock reduced by 11.4 million shares since September 30, 2008 to 40.9 million at December 31, 2009; and
• Authorization to increase share repurchase program to 20 million shares of common stock.

Full Year 2009 Financial Highlights:

The Company recognized revenue of $354.4 million for 2009 as compared to $317.2 million for 2008, an increase of $37.2 million or 11.7%. Operating income in 2009 was $23.0 million compared to $16.5 million in 2008. Net income for 2009 was $14.4 million compared to $10.2 million for 2008. Net earnings per share were $0.32 basic and $0.31 diluted for 2009 compared to $0.21 basic and $0.20 diluted for 2008. Weighted average common shares outstanding for 2009 were 44.5 million, basic and 45.9 million, diluted.

Included in the 2009 results was a gain on sale of the HMO of $1.3 million, relating to the settle-up of net equity at the time of sale and included in the 2008 results were the gain on sale of the HMO of $5.9 million and expenses directly related to the sale including employee termination payments and stay bonuses totaling $1.6 million. Operating income adjusted for these items was $21.6 million in 2009 compared to $12.3 million in 2008. These adjusted amounts are non-GAAP measures.

The Company’s consolidated medical expense ratio (“MER”) was 88.5% for 2009 compared to 88.4% in 2008. Year over year medical expense, on a per customer per month basis, increased 4.2% in 2009.

Fourth Quarter Financial Highlights:

The Company recognized revenue of $88.8 million for the fourth quarter as compared to $80.0 million in the 2008 fourth quarter, a 10.9% increase. Operating income was $7.8 million in 2009 compared to $4.9 million in 2008. Net income for the 2009 fourth quarter was $4.8 million or $0.12 per share basic and $0.11 diluted as compared to $2.6 million or $0.05 per share basic and diluted for the same quarter last year.

The Company’s consolidated MER was 84.9% in the fourth quarter of 2009 compared to 88.3% in the same quarter of 2008.

Customer Information:

Medicare Advantage customers increased to 35,500 at December 31, 2009 as compared to 33,000 customers at December 31, 2008, an increase of 2,500 members. Total customer months, the combined total customers for each month of the measurement period, increased by 7.2% to 425,100 in 2009, up from 396,400 in 2008.

Balance Sheet Highlights:

Cash, cash equivalents and short-term investments at December 31, 2009, totaled $33.8 million compared to $36.3 million at December 31, 2008. This reduction is primarily a result of posting $5.0 million of short-term investments to secure a $3.0 million line of credit, and reflecting this collateral as a non-current asset at December 31, 2009. As noted below, $15.9 million was used during 2009 to repurchase 7.8 million shares of the Company’s common stock as well as options exercisable to purchase 684,200 share of our common stock. The Company had a working capital surplus of $27.7 million as of December 31, 2009 as compared to a surplus of $34.5 million as of December 31, 2008, a decrease of $6.8 million or 19.7%. The decrease in working capital is primarily attributable to the posting of collateral for the letter of credit and to the stock repurchases. Stockholders’ equity increased approximately $100,000 or 0.2%, from approximately $42.8 million at December 31, 2008 to approximately $42.9 million at December 31, 2009.

Share Repurchase Program:

On February 24, 2010, the Company’s Board of Directors approved a 5 million share increase to its previously announced share repurchase program bringing the total number of shares of common stock authorized for repurchase under the program to 20 million shares. From the inception of the program through December 31, 2009 the Company has repurchased 12.0 million shares of its common stock, and 684,200 options, at an average cost of $1.85 per share. Shares repurchased from January 1 through February 25, 2010 totaled approximately 1.6 million bringing total shares then outstanding to approximately 39.8 million. Approximately 5.7 million shares remain available for purchase under the plan. The number of shares to be repurchased and the timing of the purchases will be influenced by a number of factors, including the then prevailing market price of the common stock of the Company, other perceived opportunities that may become available to the Company, and regulatory requirements.

Michael Earley, Chief Executive Officer of Metropolitan Health Networks, Inc., commented, “2009’s strong financial results are driven by a number of operating strategies and actions initiated over the past few years. Our customer base has continued growing, we’ve strengthened our risk scoring compliance and medical management capabilities, and our operating expenses have been significantly reduced. We took advantage of short-term weakness in the financial markets for the long-term benefit of our shareholders, reducing our outstanding shares from the inception of the share repurchase program by over 23%.

Earley noted further, “Almost three years ago we recognized the need to advance our business model to better serve and meet the demands of the rapidly growing Medicare population. Centered around customer care and delivering better outcomes more efficiently, we saw value in the Patient Centered Medical Home (PCMH) model of care. This model restores primary care physicians and their staffs to the role of providing and coordinating the full range of care for patients, or in our words, customers. We initiated a series of strategic changes to embark on that path.”

“In 2009 we implemented a number of PCMH related initiatives including the addition of nursing professionals to our medical office staffs, the implementation of electronic prescribing and chronic care disease registries, an investment in a comprehensive electronic medical records system that we expect to be fully operational by late 2010, and the adoption of a comprehensive training program aimed at enhancing both customer satisfaction and employee engagement. While many of these achievements may not be readily evident in our numbers, our recently announced PCMH pilot study results and our high customer satisfaction marks indicate these advances are making a difference both in how we are perceived by our customers and in measurable quality of care metrics. In conjunction with our recent receipt of NCQA recognition, we fully expect the investments we are making in these programs to have an ongoing long-term positive impact on our operations,” Earley concluded.

Conference Call Information:

Metropolitan Health Networks will hold a conference call to review its fourth quarter and full year 2009 results on Tuesday, March 2, 2010 at 11:00 a.m. Eastern. The call will be hosted by Michael Earley, Chief Executive Officer. Interested parties may access the conference call by dialing the following numbers: (888) 679-8037 (domestic) or (617) 213-4849 (international), pass code #74394818. The call will also be available via web cast at www.metcare.com, http://www.streetevents.com, or http://www.fulldisclosure.com

Participants may pre-register for the call at:

https://www.theconferencingservice.com/prereg/key.process?key=P9XK4LHXX

Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference by bypassing the operator upon connection.

If you are unable to participate, an audio replay of the call will be available beginning two hours after the call and will be available until 11:59 p.m. on March 9, 2010, by dialing (888) 286-8010 (domestic) or (617) 801-6888 (international) using confirmation pass code 71738557.

About Metropolitan Health Networks, Inc.:

Metropolitan Health Networks, Inc. with its group of “Metcare of Florida” primary care practices is a growing healthcare organization that provides comprehensive healthcare services for Medicare Advantage customers and other patients in Florida. To learn more about Metropolitan please visit its website at www.metcare.com.

GAAP to Non-GAAP RECONCILIATION

Non-GAAP income from operations is a non-GAAP financial measure under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. Non-GAAP income from operations is calculated by excluding certain GAAP financial items we believe have less significance to the day-to-day operations of our business.

Forward-Looking Statements:

Except for historical matters contained herein, statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Without limiting the generality of the foregoing, words such as “may”, “will”, “to”, “plan”, “expect”, “believe”, “anticipate”, “intend”, “could”, “would”, “estimate”, or “continue” or the negative other variations thereof or comparable terminology are intended to identify forward-looking statements.

Investors and others are cautioned that a variety of factors, including certain risks, may affect our business and cause actual results to differ materially from those set forth in the forward-looking statements. These risk factors include, without limitation, (i) our ability to meet our cost projections under various provider agreements with Humana; (ii) our failure to accurately estimate incurred but not reported medical benefits expense; (iii) pricing pressures exerted on us by managed care organizations and the level of payments we indirectly receive under governmental programs or from other payors; (iv) future legislation and changes in governmental regulations; (v) the impact of Medicare Risk Adjustments on payments we receive for our managed care operations; (vi) a loss of any of our significant contracts or our ability to increase the number of Medicare eligible patient lives we manage under these contracts. The Company is also subject to the risks and uncertainties described in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2008, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2009, its Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2009, and its Annual Report on Form 10-K for the year ended December 31, 2009, which is anticipated to be filed within several business days.

Delta Apparel (DLA) Raises Fiscal 2010 Sales and Earnings Guidance

Mar. 2, 2010 (Business Wire) — Delta Apparel, Inc. (NYSE Amex: DLA) today announced that the Company is raising its expectations of net sales and earnings for its 2010 fiscal year ending July 3, 2010.

For the full fiscal year 2010, the Company now expects net sales of $395 to $400 million compared to its prior guidance of net sales of $375 to $385 million. Earnings are now expected to be in the range of $1.20 to $1.30 per diluted share compared to the Company’s prior guidance of diluted earnings of $0.95 to $1.10 per share.

“Sales trends in each of our business units continue to be strong as we proceed through the second half of the fiscal year,” commented Robert W. Humphreys, Chairman and Chief Executive Officer. “Gross margins are exceeding our original target, driven by manufacturing efficiencies at the company-owned facilities and a favorable shift in product mix. We continue to utilize the strengths of each of our businesses to enhance top-line growth and leverage our operating platform. We are encouraged by our recent performance and believe we are well positioned to capitalize on the many long-term growth opportunities that still lie ahead for Delta Apparel, Inc.”

While the Company remains concerned about the U.S. economy, it believes it has taken into consideration the heightened risk factors associated with the current economic climate. Significant deterioration in the economy could, however, negatively impact the Company’s ability to achieve its expectations.

About Delta Apparel, Inc.

Delta Apparel, Inc., along with its operating subsidiaries, M. J. Soffe, LLC, Junkfood Clothing Company, To The Game, LLC, and Art Gun, LLC, is an international design, marketing, manufacturing, and sourcing company that features a diverse portfolio of high quality branded and private label activewear apparel and headwear. The Company specializes in selling a variety of casual and athletic products through most distribution channels for these types of goods. Its products are sold to specialty and boutique shops, upscale and traditional department stores, mid-tier retailers, sporting goods stores, screen printers, and private label accounts. In addition, certain products are sold to college bookstores and to the U.S. military. Through its newest acquisition, Art Gun, LLC, the Company provides shoppers a “virtual art studio” to create customized graphics on apparel products. Many of the Company’s products are available direct to consumers on its websites at www.soffe.com, www.junkfoodclothing.com, and www.deltaapparel.com. The headwear products can be viewed at www.2thegame.com. The Company’s operations are located throughout the United States, Honduras, El Salvador, and Mexico, and it employs approximately 6,600 people worldwide. Additional information about the Company is available at www.deltaapparelinc.com.

Statements and other information in this press release that are not reported financial results or other historical information are forward-looking statements. These are based on our expectations and are necessarily dependent upon assumptions, estimates and data that we believe are reasonable and accurate but may be incorrect, incomplete or imprecise. Forward-looking statements are also subject to a number of business risks and uncertainties, any of which could cause actual results to differ materially from those set forth in or implied by the forward-looking statements. The risks and uncertainties include, among others, the general U.S. and international economic conditions; the ability to grow, achieve synergies and realize the expected profitability of recent acquisitions; changes in consumer confidence, consumer spending, and demand for apparel products; the ability of our brands and products to meet consumer preferences within the prevailing retail environment; the financial difficulties encountered by our customers and higher credit risk exposure; the competitive conditions in the apparel and textile industries; changes in environmental, tax, trade, employment and other laws and regulations; the uncertainty of raw material and energy prices; changes in the economic, political and social stability of our offshore locations; the relative strength of the United States dollar as against other currencies; and other risks described from time to time in our reports filed with the Securities and Exchange Commission. Accordingly, any forward-looking statements do not purport to be predictions of future events or circumstances and may not be realized. We do not undertake publicly to update or revise the forward-looking statements even if it becomes clear that any projected results will not be realized.

Lihua International (LIWA) Announces Preliminary Unaudited 2009 Financial Results

China, Mar. 2, 2010 (PRNewswire-Asia) — Lihua International, Inc. (Nasdaq: LIWA) (“Lihua” or the “Company”), a leading Chinese developer, designer, manufacturer, marketer and distributor of low cost, high quality alternatives to pure copper superfine and magnet wire, as well as copper rod products, today announced that it expects full-year 2009 revenue of approximately $161.5 million, gross profit of approximately $36 million and non-GAAP net income of approximately $25.5 million, excluding non-cash charges of $9 million. This represents expected year-over-year growth of 223%, 114% and 118%, respectively. Preliminary unaudited GAAP net income for fiscal year 2009 is expected to be approximately $16.5 million. The non-cash charges relate to the change in fair value of warrants issued to investors in conjunction with the Company’s private placement of convertible preferred stock in October 2008. According to FASB Accounting Standards Update No. 2010-05 (Topic 718) regarding Stock Compensation, Lihua will no longer need to report a non-cash charge of $15.4 million relating to the realization of management earn outs at the end of 2009, which was initially anticipated and disclosed in previous filings. Lihua previously reported guidance of 110%-115% gross profit growth and 115%-120% non-GAAP net income growth, excluding non-cash charges, over 2008.

The strong year-over-year growth was driven by four primary factors: 1) a significant increase in domestic demand for Lihua’s copper-clad aluminum (CCA) wire and copper products; 2) the commencement of the company’s new scrap copper recycling and cleaning facility in March 2009, which contributed to the growth of Lihua’s main product lines: copper rod and copper wire; 3) an increase in manufacturing capacity following the launch of four new high-speed manufacturing lines in the 2009 third quarter, which increased CCA and copper wire capacity by approximately 40% to 25,200 tons; and, 4) a 50% increase in the Company’s customer base over 2008, from 200 to approximately 300 customers as of December 31, 2009.

Jianhua Zhu, Chairman and Chief Executive Officer of Lihua, said, “We believe that our preliminary unaudited results for 2009 reflect the benefits and advantages of our copper alternative products, the strength of our business model and our ability to capture additional market share. As we continue to expand our manufacturing capacity, we believe that we will be better positioned to further capitalize on the demand for copper and copper alternatives in the Chinese market, driven by the growth in end markets such as white goods, household appliances, electronics, general infrastructure and telecommunications.”

2010 Guidance

Lihua anticipates 2010 year-over-year growth of approximately 30-35% in gross profit and 35-40% in non-GAAP net income, excluding non-cash charges, as a result of its growth plans.

The Company expects that 2010 growth will be largely the result of continued strong demand in China for recycled copper and copper alternatives such as CCA in the household appliance, consumer white goods and infrastructure markets. In order to better meet this expected growth in demand, Lihua plans to add 10 new proprietary high-speed production lines in 2010, which will increase its annual capacity by nearly 40%. Lihua expects to complete the build-out of six of these new production lines in the first half of 2010, bringing its annual copper magnet and copper fine wire production capacity to 25,000 tons from approximately 18,000 tons at the end of 2009. Lihua expects to launch the remaining four production lines during the second half of 2010, which will bring its CCA fine and magnet wire capacity to 10,000 tons annually, compared with current annual capacity of approximately 7,200 tons. To date, the Company has launched the first two of its six planned copper magnet and copper fine wire production lines. Lihua remains on track to complete the build out of four additional copper wire production lines during the first half of 2010, with four CCA wire production lines planned for the second half of the year. The Company anticipates funding these capacity increases from existing cash on the balance sheet and operating cash flow generated in 2010.

“Under the Chinese government’s RMB 4 trillion stimulus package, we expect to benefit from continued high demand for copper and copper alternatives,” said Mr. Zhu. “Our products represent a cost-effective, high-performance alternative to pure copper and we believe that Lihua is well positioned to benefit from favorable industry trends, both in the near- and long-term. We also expect our new production capacity to bolster our gross margin profile, as we will be able to ramp up the conversion of recycled copper rod products into sales of higher-margin, value-added superfine and copper magnet wire.”

About Lihua International, Inc.

Lihua International, through its two wholly-owned subsidiaries, Lihua Electron and Lihua Copper, is a leading value-added manufacturer of copper replacement products for China’s rapidly growing magnet and fine wire market. Lihua is one of the first vertically integrated companies in China to develop, design, manufacture, market and distribute lower cost, high quality, alternatives to pure copper magnet wire. Lihua’s products include copper-clad aluminum wire (“CCA”) and recycled scrap copper wire and are sold in China either directly to manufacturers or through distributors in the wire and cable industries and manufacturers in the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries. Lihua’s corporate and manufacturing headquarters are located in the heart of China’s copper industry in Danyang, Jiangsu Province. For more information, please visit http://www.lihuaintl.com .

Safe Harbor Statement

This press release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, statements about its business or growth strategy, general industry conditions including availability of copper or recycled scrap copper, future operating results of the Company, capital expenditures, expansion and growth opportunities, bank borrowings, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this press release are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements.

Please note that information in this press release reflects management views as of the date of issuance.

Regulation G

To supplement our consolidated financial statements presented in accordance with GAAP, we use non-GAAP measures, such as Adjusted Net Income, which exclude certain non-cash expenses. This non-GAAP adjustment is provided to enhance the user’s overall understanding of our historical and current financial performance and our prospects for the future. We believe the non-GAAP results provide useful information to both management and investors by excluding certain expenses we believe are not indicative of our core operating results. We have provided above Net Income for the period discussed, which is the most directly comparable GAAP measure to Adjusted Net Income.

Hercules (HERO) Offshore Announces Fourth Quarter and Full Year 2009 Results

Mar. 2, 2010 (PR Newswire) —

HOUSTON, March 2 /PRNewswire-FirstCall/ — Hercules Offshore, Inc. (Nasdaq: HERO) today reported a loss from continuing operations of $26.9 million, or $0.23 per diluted share, on revenues of $176.4 million for the fourth quarter ended December 31, 2009, versus a loss from continuing operations of $1.1 billion, or $12.90 per diluted share, on revenues of $313.5 million for the quarter ended December 31, 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050601/DAW092LOGO)

When adjusting for certain items outlined in the attached Reconciliation of GAAP to Non-GAAP Financial Measures, the Company reported a loss from continuing operations of $25.8 million, or $0.23 per diluted share for the fourth quarter 2009, compared with income from continuing operations of $36.2 million, or $0.41 per diluted share for the fourth quarter 2008, also adjusted for certain items. The fourth quarter 2009 loss of $0.23 per diluted share has not been adjusted for the accounts receivable reserve and related items associated with the Hercules 185 which adversely impacted the results on a pre-tax basis by a net of $31.6 million. The accounts receivable reserve associated with Hercules 185 was reduced from the previously announced amount by $3.0 million due to a payment received.

The Company reported a loss from continuing operations of $90.1 million, or $0.93 per diluted share, on revenues of $742.9 million for the twelve month period ended December 31, 2009, versus a loss from continuing operations of $1.1 billion, or $12.25 per diluted share, on revenues of $1.1 billion for the twelve month period ended December 31, 2008.

The Company reported a loss from continuing operations for the twelve months ended December 31, 2009, of $75.2 million, or $0.77 per diluted share, as adjusted for certain items, compared to income from continuing operations of $92.9 million, or $1.04 per diluted share for the twelve months ended December 31, 2008, also adjusted for certain items.

John T. Rynd, Chief Executive Officer and President of Hercules Offshore stated, “Our fourth quarter 2009 results were adversely impacted by the accounts receivable reserve in International Offshore as well as relatively weak business conditions in our Domestic Offshore and Inland segments. However, solid results from our cost reduction measures partially offset these challenges. Overall, 2009 was one of the most difficult years our industry has ever seen and I am extremely proud of the proactive response by our management team and employees to enhance revenue opportunities, eliminate costs, reduce capital spending and strengthen our capital structure.”

Mr. Rynd continued, “While the slope of the recovery is still uncertain, we believe that the recovery is underway, as evidenced by the recent increase in our Domestic Offshore activity levels and our increasing backlog which is providing better visibility than we have had in over a year. The recent strengthening and stabilization in commodity prices, reduced oilfield service costs, the improvement in the capital markets and feedback we have received from our customers are all pointing toward increasing exploration and production spending both in the U.S. and internationally, which serve to reinforce our belief that the industry has entered the initial stages of recovery.”

Offshore

Domestic Offshore revenues in the fourth quarter 2009 decreased to $25.8 million from $109.7 million in the fourth quarter 2008 due to declines in both operating days and dayrates which were primarily caused by weak demand. Fourth quarter 2009 average revenue per rig per day decreased to $37,799 compared to $72,008 in the fourth quarter 2008, while operating days declined to 682 from 1,524, in the same periods, respectively. The decline in revenue was partially offset by a 28% reduction in operating costs to $43.8 million in the fourth quarter 2009 from $61.0 million in the fourth quarter 2008 as a result of the Company’s stacking plan. Domestic Offshore recorded an operating loss of $34.5 million for the fourth quarter 2009 compared with operating income of $29.9 million, before the impairment of property and equipment and goodwill, for the fourth quarter 2008.

International Offshore generated revenues of $98.5 million in the fourth quarter 2009, a slight increase from $93.2 million in the fourth quarter 2008. Average revenue per rig per day increased to $131,571 from $127,981 in the same periods, respectively, despite a decline in market dayrates as the Company benefitted from a change in the mix of rigs working. Operating days increased modestly to 749 in the fourth quarter 2009 from 728 in the fourth quarter 2008, as a result of the fourth quarter 2008 and first quarter 2009 commencement of operations on our two jackup rigs operating in Saudi Arabia, largely offset by fewer operating days on the Hercules 156 and Hercules 170, which were warm stacked earlier in 2009, and the Hercules 206, which has mobilized to the U.S. Gulf of Mexico in November 2009 from Mexico. Fourth quarter 2009 operating income was $11.2 million, including the net charge of $31.6 million related to the Hercules 185 compared to operating income of $43.3 million in the comparable quarter, excluding the impairment of goodwill. The Company continues to pursue all commercial and legal avenues for the collection of the receivable related to the Hercules 185. Although the amount owed by the customer remains undisputed and the Company recently received a $3.0 million payment from the customer, the collection of the receivable remains uncertain.

Inland

During the fourth quarter 2009, Inland revenues declined to $4.3 million from $37.5 million in the fourth quarter 2008 due to extremely weak demand, which also led to a decline in average revenue per rig per day to $18,346 from $39,454 in the same periods, respectively. Operating days declined to 237 in the fourth quarter 2009 from 951 in the fourth quarter 2008. However, utilization of marketed rigs increased to 85.9% in the fourth quarter 2009 from 68.9% in the comparable period of 2008 because of significantly reduced available days resulting from our stacking plan, which also led to a 72.3% reduction in operating expenses to $8.0 million in the fourth quarter 2009 from $29.0 million in the fourth quarter 2008. Inland recorded an operating loss of $11.9 million in the fourth quarter 2009 versus a fourth quarter 2008 operating loss of $8.5 million excluding the effect of impairment charges.

Liftboats

Domestic Liftboats generated revenues of $14.8 million during the fourth quarter 2009 compared to revenues of $31.2 million in the fourth quarter 2008. Utilization decreased to 62.5% in the fourth quarter 2009, following a mild hurricane season from 81.4% in the same period of 2008, which was bolstered by repair work stemming from Hurricanes Gustav and Ike. As a result of the reduced demand and a fleet mix shift following the mobilization of four of our larger class liftboats to West Africa, average revenue per liftboat per day declined to $6,780 in the fourth quarter 2009 from $9,918 in the fourth quarter 2008. The reduced fleet size and decline in utilization led to a reduction in operating income to approximately $353,000 in fourth quarter 2009 from $12.3 million in the fourth quarter 2008.

During the fourth quarter 2009, International Liftboats generated revenues of $26.8 million compared to $27.0 million in the fourth quarter 2008. Average revenue per liftboat per day increased slightly to $21,972 from $20,177 in the fourth quarters of 2009 and 2008, respectively. Partially offsetting the higher average revenue per liftboat per day was a decrease in utilization to 63.3% in the fourth quarter 2009 from 78.3% in the fourth quarter 2008, due to weak demand, particularly for the smaller vessels, and an extensive drydocking schedule. Our average operating expense per liftboat per day increased to $8,582 in the fourth quarter 2009 from $6,643 in the fourth quarter 2008 largely driven by expenses related to the mobilization of the four aforementioned liftboats as well as the mix shift in the type of liftboats. As a result, operating income decreased to $4.6 million in the fourth quarter 2009 from $10.9 million in the fourth quarter 2008.

Liquidity and Capitalization

At December 31, 2009, the Company had unrestricted cash and equivalents totaling $140.8 million and unused capacity of $165.0 million under its revolving credit facility. As of December 31, 2009, the Company’s balance sheet reflects total debt of $861.7 million. Cash flow provided by operations was $17.9 million and capital expenditures plus deferred drydocking expenditures were $6.7 million during the three months ended December 31, 2009.

Non-GAAP

Certain non-GAAP performance measures and corresponding reconciliations to GAAP financial measures for the Company have been provided for meaningful comparisons between current results and prior operating periods. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. In order to fully assess the financial operating results, management believes that the adjusted income (loss) from continuing operations figures included in this release are appropriate measures of the continuing and normal operations of the Company. However, these measures should be considered in addition to, and not as a substitute, or superior to, income (loss) from continuing operations, operating income (loss), cash flows from operations, or other measures of financial performance prepared in accordance with GAAP. The non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure in the table that follows the financial statements.

Please see the attached Reconciliation of GAAP to Non-GAAP Financial Measures for a complete description of the adjustments made to Operating Income (Loss), Net Income (Loss) From Continuing Operations and Diluted Earnings (Loss) per Share from Continuing Operations.

Conference Call Information

Hercules Offshore will conduct a conference call at 10:00 a.m. CST (11:00 a.m. EST) on Tuesday, March 2, 2010, to discuss its fourth quarter and year end 2009 financial results. To participate in the call, dial 800-901-5231 (domestic) or 617-786-2961 (international) and reference access code 99167334 approximately 10 minutes prior to the start of the call. The conference call will also be broadcast live via the Internet at http://www.herculesoffshore.com.

A replay of the conference call will be available by telephone on Tuesday, March 2, 2010, beginning at 1:00 p.m. CST (2:00 p.m. EST), through Tuesday, March 9, 2010. The phone number for the conference call replay is 888-286-8010 (domestic) or 617-801-6888 (international) with reference code 93181822. Additionally, the recorded conference call will be accessible through our Web site at http://www.herculesoffshore.com for 28 days after the conference call.

Additional Information

Headquartered in Houston, Hercules Offshore, Inc. operates a fleet of 30 jackup rigs, 17 barge rigs, 65 liftboats, three submersible rigs, one platform rig and a fleet of marine support vessels, and has operations in nine different countries on three continents. The Company offers a range of services to oil and gas producers to meet their needs during drilling, well service, platform inspection, maintenance, and decommissioning operations in shallow waters.

For more information, please visit our Web site at http://www.herculesoffshore.com.

The news release contains 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. All statements, other than statements of historical fact, included in this news release that address outlook, activities, events or developments that we expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Such statements are subject to a number of risks, uncertainties and assumptions, including the factors described in Hercules Offshore’s most recent periodic reports and other documents filed with the Securities and Exchange Commission, which are available free of charge at the SEC’s Web site at http://www.sec.gov or the Company’s Web site at http://www.herculesoffshore.com. Hercules Offshore cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements. Risks and uncertainties that may affect our actual results include, among other things, oil and natural gas prices and industry expectations about future prices; demand for our rigs and vessels; future utilization rates and dayrates; our ability to enter into and the terms of future contracts and the collection of accounts receivable; sufficiency and availability of financing and compliance with our debt covenants; the impact of governmental laws and regulations; increases in operating expenses; uncertainties relating to the level of activity in offshore oil and natural gas exploration, development and production; labor relations and work stoppages; operating hazards such as severe weather and seas, fires, blowouts, war, terrorism, and inadequate insurance coverage; compliance with or breach of environmental laws; the business impact of newly constructed rigs; the effect of litigation and contingencies; and the inability to carry out our business strategies.

                  HERCULES OFFSHORE, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                               (In thousands)                          

                                               December 31,  December 31,
                                                    2009         2008
                                                    ----         ----
                                                (Unaudited)
    ASSETS
      Current Assets:
        Cash and Cash Equivalents                 $140,828     $106,455
        Restricted Cash                              3,658            -
        Accounts Receivable, Net                   133,662      293,089
        Prepaids                                    13,706       23,033
        Current Deferred Tax Asset                  22,885       17,379
        Assets Held for Sale                             -       39,623
        Other                                        6,675       19,946
                                                     -----       ------
                                                   321,414      499,525

      Property and Equipment, Net                1,923,603    2,049,030
      Other Assets, Net                             32,459       42,340
                                                    ------       ------

                                                $2,277,476   $2,590,895
                                                ==========   ==========

    LIABILITIES AND STOCKHOLDERS' EQUITY
      Current Liabilities:
        Short-term Debt and Current Portion
         of Long-term Debt                          $4,952      $11,455
        Insurance Notes Payable                      5,484       11,126
        Accounts Payable                            51,868       99,823
        Accrued Liabilities                         67,773       83,424
        Interest Payable                             6,624          506
        Taxes Payable                                5,671       32,440
        Other Current Liabilities                   34,229       35,966
                                                    ------       ------
                                                   176,601      274,740

      Long-term Debt, Net of Current Portion       856,755    1,015,764
      Other Liabilities                             19,809       35,529
      Deferred Income Taxes                        245,799      339,547

      Commitments and Contingencies                                    

      Stockholders' Equity                         978,512      925,315
                                                   -------      -------

                                                $2,277,476   $2,590,895
                                                ==========   ==========

                      HERCULES OFFSHORE, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)               

                           Three Months Ended        Twelve Months Ended
                               December 31,               December 31,
                          -----------------------   -------------------------
                            2009         2008          2009          2008
                            ----         ----          ----          ----
                         (Unaudited)  (Unaudited)   (Unaudited)             

    Revenues              $176,407     $313,469      $742,851    $1,111,807 

    Costs and Expenses:
      Operating Expenses   125,437      161,573       514,136       631,711
      Impairment of
       Goodwill                  -      950,287             -       950,287
      Impairment of
       Property and
       Equipment                 -      376,668        26,882       376,668
      Depreciation and
       Amortization         49,682       51,744       201,421       192,894
      General and
       Administrative       44,002       23,383        92,558        81,160
                            ------       ------        ------        ------
                           219,121    1,563,655       834,997     2,232,720
                           -------    ---------       -------     --------- 

    Operating Loss         (42,714)  (1,250,186)      (92,146)   (1,120,913)

    Other Income (Expense):
      Interest Expense     (23,505)     (15,793)      (77,986)      (63,778)
      Expense of Credit
       Agreement Fees            -            -       (15,073)            -
      Gain (Loss) on Early
       Retirement of Debt,
       Net                  (1,590)      26,345        12,157        26,345
      Other, Net             1,207          497         3,967         3,315
                             -----          ---         -----         ----- 

    Loss Before
     Income Taxes          (66,602)  (1,239,137)     (169,081)   (1,155,031)
    Income Tax Benefit      39,721      104,149        78,932        73,161
                            ------      -------        ------        ------
    Loss from Continuing
     Operations            (26,881)  (1,134,988)      (90,149)   (1,081,870)
    Income (Loss) from
     Discontinued
     Operation, Net of
     Taxes                     380         (754)       (1,585)       (1,520)
                               ---         ----        ------        ------
    Net Loss              $(26,501) $(1,135,742)     $(91,734)  $(1,083,390)
                          ========  ===========      ========   =========== 

    Basic Loss Per Share:
      Loss from Continuing
       Operations           $(0.23)     $(12.90)       $(0.93)      $(12.25)
      Income (Loss)
       from Discontinued
       Operation                 -        (0.01)        (0.01)        (0.01)
                               ---        -----         -----         -----
      Net Loss              $(0.23)     $(12.91)       $(0.94)      $(12.26)
                            ======      =======        ======       ======= 

    Diluted Loss Per Share:
      Loss from Continuing
       Operations           $(0.23)     $(12.90)       $(0.93)      $(12.25)
      Income (Loss)
       from Discontinued
       Operation                 -        (0.01)        (0.01)        (0.01)
                               ---        -----         -----         -----
      Net Loss              $(0.23)     $(12.91)       $(0.94)      $(12.26)
                            ======      =======        ======       ======= 

    Weighted Average
     Shares Outstanding:
      Basic                114,564       87,970        97,114        88,351
      Diluted              114,564       87,970        97,114        88,351 

                  HERCULES OFFSHORE, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (In thousands)
                                                 Twelve Months Ended
                                                     December 31,
                                                 -------------------
                                                   2009         2008
                                                   ----         ----
                                                (Unaudited)
    Cash Flows from Operating Activities:
      Net Loss                                    (91,734) $(1,083,390)
      Adjustments to Reconcile Net
       Loss to Net Cash Provided by
        Operating Activities:
          Depreciation and Amortization           201,421      192,918
          Stock-Based Compensation Expense          8,257       12,535
          Deferred Income Taxes                   (89,295)    (118,685)
          Provision for Doubtful Accounts
           Receivable                              32,912        6,167
          Amortization of Deferred Financing Fees   3,594        4,036
          Amortization of Original Issue Discount   4,120        4,292
          Non-Cash Loss on Derivatives              1,429            -
          Gain on Insurance Settlement             (8,700)           -
          Gain on Disposal of Assets                 (970)      (3,029)
          Expense of Credit Agreement Fees         15,073            -
          Gain on Early Retirement of Debt, Net   (12,157)     (26,345)
          Impairment of Goodwill                        -      950,287
          Impairment of Property and Equipment     26,882      376,668
          Excess Tax Benefit from Stock-Based
           Arrangements                            (4,571)      (5,860)
        Net Change in Operating Assets and
         Liabilities                               52,658      (39,646)
                                                   ------      -------
            Net Cash Provided by Operating
             Activities                           138,919      269,948 

    Cash Flows from Investing Activities:
      Acquisition of Assets                             -     (320,839)
      Additions of Property and Equipment         (76,141)    (264,245)
      Deferred Drydocking Expenditures            (15,646)     (17,269)
      Proceeds from Sale of Marketable Securities       -       39,300
      Insurance Proceeds Received                   9,168       30,221
      Proceeds from Sale of Assets, Net            25,767       17,045
      Increase in Restricted Cash                  (3,658)           -
                                                   ------          ---
            Net Cash Used in Investing
             Activities                           (60,510)    (515,787)

    Cash Flows from Financing Activities:
      Short-term Debt Borrowings (Repayments),
       Net                                         (2,455)       2,455
      Long-term Debt Borrowings                   292,149      350,000
      Long-term Debt Repayments                  (403,648)    (121,427)
      Redemption of 3.375% Convertible Senior
       Notes                                       (6,099)     (44,848)
      Common Stock Issuance (Repurchase)           89,600      (49,228)
      Proceeds from Exercise of Stock Options           -        5,127
      Excess Tax Benefit from Stock-Based
       Arrangements                                 4,571        5,860
      Payment of Debt Issuance Costs              (18,143)      (8,097)
      Other                                           (11)           -
                                                      ---          ---
            Net Cash Provided by (Used in)
             Financing Activities                 (44,036)     139,842 

    Net Increase (Decrease) in Cash and
     Cash Equivalents                              34,373     (105,997)
    Cash and Cash Equivalents at Beginning
     of Period                                    106,455      212,452
                                                  -------      -------
    Cash and Cash Equivalents at End of
     Period                                      $140,828     $106,455
                                                 ========     ======== 

                          HERCULES OFFSHORE, INC. AND SUBSIDIARIES
                            SELECTED FINANCIAL AND OPERATING DATA
                       (Dollars in thousands, except per day amounts)
                                         (Unaudited)                 

                                Three Months Ended     Twelve Months Ended
                                    December 31,          December 31,
                                ------------------     -------------------
                                  2009       2008         2009       2008
                                  ----       ----         ----       ----
    Domestic Offshore:
      Number of rigs (as of end
       of period) (a)                 24          27         24          27
      Revenues                   $25,779    $109,740   $140,889    $382,358
      Operating expenses          43,838      60,988    175,473     227,884
      Impairment of goodwill           -     507,194          -     507,194
      Impairment of property and
       equipment                       -     174,613          -     174,613
      Depreciation and
       amortization expense       15,525      17,765     60,775      66,850
      General and administrative
       expenses                      901       1,057      6,496       4,673
                                     ---       -----      -----       -----
      Operating loss            $(34,485)  $(651,877) $(101,855)  $(598,856)
                                ========   =========  =========   ========= 

    International Offshore:
      Number of rigs (as of end
       of period) (b)                 10          12         10          12
      Revenues                   $98,547     $93,170   $393,797    $327,983
      Operating expenses          41,940      37,281    169,418     147,899
      Impairment of goodwill           -     150,886          -     150,886
      Impairment of property and
       equipment                       -           -     26,882           -
      Depreciation and
       amortization expense       15,106      11,471     63,808      37,865
      General and administrative
       expenses                   30,312       1,166     35,694       2,980
                                  ------       -----     ------       -----
      Operating income (loss)    $11,189   $(107,634)   $97,995    $(11,647)
                                 =======   =========    =======    ======== 

    Inland:
      Number of barges (as of
       end of period) (a)             17          27         17          27
      Revenues                    $4,348     $37,521    $19,794    $162,487
      Operating expenses           8,030      28,987     44,593     125,656
      Impairment of goodwill           -     205,474          -     205,474
      Impairment of property and
       equipment                       -     202,055          -     202,055
      Depreciation and
       amortization expense        8,023      11,577     32,465      43,107
      General and administrative
       expenses                      243       5,497      1,831       8,347
                                     ---       -----      -----       -----
      Operating loss            $(11,948)  $(416,069)  $(59,095)  $(422,152)
                                ========   =========   ========   ========= 

    Domestic Liftboats:
      Number of liftboats
       (as of end of period) (C)      41          45         41          45
      Revenues                   $14,822     $31,191    $75,584     $94,755
      Operating expenses           9,461      13,346     48,738      54,474
      Depreciation and
       amortization expense        4,423       4,848     20,267      21,317
      General and administrative
       expenses                      585         669      2,039       2,386
                                     ---         ---      -----       -----
      Operating income              $353     $12,328     $4,540     $16,578
                                    ====     =======     ======     ======= 

    (a) In January 2009, we retired four Domestic Offshore rigs and ten
        Inland barges. In November 2009, we transferred Hercules 206 to
        Domestic Offshore to be cold-stacked. 

    (b) In August 2009, we sold Hercules 110 which was cold-stacked in
        Trinidad. In November 2009, we transferred Hercules 206 to Domestic
        Offshore to be cold-stacked. 

    (c) The number of liftboats as of December 31, 2009 reflects the transfer
        of four liftboats from our Domestic Liftboats segment to our
        International Liftboats segment. The financial results of these four
        vessels are reflected in International Liftboats from the date of
        transfer which occurred during the three months ended  September 30,
        2009. 

                  HERCULES OFFSHORE, INC. AND SUBSIDIARIES
            SELECTED FINANCIAL AND OPERATING DATA - (Continued)
               (Dollars in thousands, except per day amounts)
                               (Unaudited)                               

                             Three Months Ended       Twelve Months Ended
                                December 31,              December 31,
                             ------------------       --------------------
                              2009        2008          2009         2008
                              ----        ----          ----         ---- 

    International Liftboats:
      Number of liftboats
       (as of end of
        period) (C)              24           20            24           20
      Revenues              $26,828      $26,977       $88,537      $85,896
      Operating expenses     16,563       11,346        48,240       39,122
      Depreciation and
       amortization expense   4,208        2,417        12,880        9,912
      General and
       administrative
       expenses               1,442        2,296         4,990        5,990
                              -----        -----         -----        -----
      Operating income       $4,615      $10,918       $22,427      $30,872
                             ======      =======       =======      ======= 

    Delta Towing:
      Revenues               $6,083      $14,870       $24,250      $58,328
      Operating expenses      5,605        9,625        27,674       36,676
      Impairment of goodwill      -       86,733             -       86,733
      Depreciation and
       amortization expense   1,599        2,869         7,917       10,926
      General and
       administrative
       expenses                 312        2,128         1,336        4,058
                                ---        -----         -----        -----
      Operating loss        $(1,433)    $(86,485)     $(12,677)    $(80,065)
                            =======     ========      ========     ======== 

    Total Company:
      Revenues             $176,407     $313,469      $742,851   $1,111,807
      Operating expenses    125,437      161,573       514,136      631,711
      Impairment of
       goodwill                   -      950,287             -      950,287
      Impairment of
       property and
       equipment                  -      376,668        26,882      376,668
      Depreciation and
       amortization expense  49,682       51,744       201,421      192,894
      General and
       administrative
       expenses              44,002       23,383        92,558       81,160
                             ------       ------        ------       ------
      Operating loss        (42,714)  (1,250,186)      (92,146)  (1,120,913)
        Interest expense    (23,505)     (15,793)      (77,986)     (63,778)
        Expense of Credit
         Agreement Fees           -            -       (15,073)           -
        Gain (Loss) on early
         retirement of debt,
         net                 (1,590)      26,345        12,157       26,345
        Other, net            1,207          497         3,967        3,315
                              -----          ---         -----        -----
      Loss before income
       taxes                (66,602)  (1,239,137)     (169,081)  (1,155,031)
        Income tax benefit   39,721      104,149        78,932       73,161
                             ------      -------        ------       ------
      Loss from continuing
       operations           (26,881)  (1,134,988)      (90,149)  (1,081,870)
      Income (loss) from
       discontinued
       operation,
       net of taxes             380         (754)       (1,585)      (1,520)
                                ---         ----        ------       ------
      Net Loss             $(26,501) $(1,135,742)     $(91,734) $(1,083,390)
                           ========  ===========      ========  =========== 

    (c) The number of liftboats as of December 31, 2009 reflects the
        transfer of four liftboats from our Domestic Liftboats segment to
        our International Liftboats segment.  The financial results of these
        four vessels are reflected in International Liftboats from the date
        of transfer which occurred during the three months ended September 30,
        2009. 

                   HERCULES OFFSHORE, INC. AND SUBSIDIARIES
              SELECTED FINANCIAL AND OPERATING DATA - (Continued)
                 (Dollars in thousands, except per day amounts)
                              (Unaudited)                                  

                             Three Months Ended December 31, 2009
                             ------------------------------------ 

                                                                     Average
                                                       Average      Operating
                 Operating   Available               Revenue per   Expense per
                    Days       Days    Utilization(1)    Day(2)       Day (3)
                    ----       ----    -------------     ------       -------
      Domestic
       Offshore      682      1,012         67.4%        $37,799      $43,318
      International
       Offshore      749        951         78.8%        131,571       44,101
      Inland         237        276         85.9%         18,346       29,094
      Domestic
       Liftboats   2,186      3,496         62.5%          6,780        2,706
      International
       Liftboats   1,221      1,930         63.3%         21,972        8,582

                           Three Months Ended December 31, 2008
                           ------------------------------------
                                                                     Average
                                                        Average     Operating
                 Operating   Available                Revenue per  Expense per
                    Days       Days    Utilization(1)    Day(2)       Day (3)
                    ----       ----    -------------     ------       -------
      Domestic
       Offshore    1,524      2,024         75.3%        $72,008      $30,132
      International
       Offshore      728        791         92.0%        127,981       47,131
      Inland         951      1,380         68.9%         39,454       21,005
      Domestic
       Liftboats   3,145      3,864         81.4%          9,918        3,454
      International
       Liftboats   1,337      1,708         78.3%         20,177        6,643

                           Twelve Months Ended December 31, 2009
                           -------------------------------------            

                                                                     Average
                                                        Average     Operating
                 Operating   Available                Revenue per  Expense per
                    Days       Days    Utilization(1)    Day(2)      Day (3)
                    ----       ----    -------------     ------      -------
      Domestic
       Offshore    2,676      4,544         58.9%        $52,649      $38,616
      International
       Offshore    3,100      3,714         83.5%        127,031       45,616
      Inland         651      1,578         41.3%         30,406       28,259
      Domestic
       Liftboats   9,535     14,804         64.4%          7,927        3,292
      International
       Liftboats   4,293      7,209         59.6%         20,624        6,692

                          Twelve Months Ended December 31, 2008
                          -------------------------------------              

                                                                    Average
                                                        Average    Operating
                 Operating   Available                Revenue per  Expense per
                    Days       Days    Utilization(1)    Day(2)      Day (3)
                    ----       ----    -------------     ------      -------
      Domestic
       Offshore    5,907      8,166         72.3%        $64,730      $27,906
      International
       Offshore    2,753      3,005         91.6%        119,137       49,218
      Inland       4,048      5,885         68.8%         40,140       21,352
      Domestic
       Liftboats  10,343     15,785         65.5%          9,161        3,451
      International
       Liftboats   5,028      6,501         77.3%         17,084        6,018

    (1)  Utilization is defined as the total number of days our rigs or
         liftboats, as applicable, were under contract, known as operating
         days, in the period as a percentage of the total number of available
         days in the period.  Days during which our rigs and liftboats were
         undergoing major refurbishments, upgrades or construction, and days
         during which our rigs and liftboats are cold-stacked, are not counted
         as available days. Days during which our liftboats are in the
         shipyard undergoing drydocking or inspection are considered available
         days for the purposes of calculating utilization.     

    (2)  Average revenue per rig or liftboat per day is defined as revenue
         earned by our rigs or liftboats, as applicable, in the period divided
         by the total number of operating days for our rigs or liftboats, as
         applicable, in the period.  Included in International Offshore
         revenue is a total of $3.9 million and $16.3 million related to
         amortization of deferred mobilization revenue and contract specific
         capital expenditures reimbursed by the customer for the three and
         twelve months ended December 31, 2009, respectively and $2.3 million
         and $11.6 million for the three and twelve months ended December 31,
         2008, respectively.  Included in International Liftboats revenue is a
         total of $0.1 million and $0.2 million related to amortization of
         deferred mobilization revenue for the three and twelve months ended
         December 31, 2009, respectively and $0.3 million for both the three
         and twelve months ended December 31, 2008.    

    (3)  Average operating expense per rig or liftboat per day is defined as
         operating expenses, excluding depreciation and amortization, incurred
         by our rigs or liftboats, as applicable, in the period divided by the
         total number of available days in the period.  We use available days
         to calculate average operating expense per rig or liftboat per day
         rather than operating days, which are used to calculate average
         revenue per rig or liftboat per day, because we incur operating
         expenses on our rigs and liftboats even when they are not under
         contract and earning a dayrate. In addition, the operating expenses
         we incur on our rigs and liftboats per day when they are not under
         contract are typically lower than the per-day expenses we incur when
         they are under contract.  Included in International Offshore
         operating expense is a total of $3.6 million and $6.3 million
         related to amortization of deferred mobilization expenses, including
         a $2.6 million charge to impair the deferred mobilization costs
         related to one international contract, for the three and twelve
         months ended December 31, 2009, respectively and $1.0 million and
         $5.6 million for the three and twelve months ended December 31, 2008,
         respectively.  Included in International Liftboats operating expense
         is a total of $0.2 million related to amortization of deferred
         mobilization expenses for both the three and twelve months ended
         December 31, 2009. There was no such operating expense for the
         three and twelve months ended December 31, 2008.    

                      Hercules Offshore, Inc. and Subsidiaries
                Reconciliation of GAAP to Non-GAAP Financial Measures
                                   (Unaudited)
                       (In thousands, except per share data)          

    We report our financial results in accordance with generally accepted
    accounting principles (GAAP). However, management believes that certain non-GAAP performance measures and ratios may provide users of this
    financial information additional meaningful comparisons between current results and results in prior operating periods. One such non-GAAP
    financial measure we may present from time to time is operating income,
    income from continuing operations or diluted earnings per share excluding certain charges or amounts. This adjusted income amount is not a measure
    of financial performance under GAAP. Accordingly, it should not be considered as a substitute for operating income, income from continuing
    operations, net income, earnings per share or other income data prepared in accordance with GAAP.  See the table below for supplemental financial
    data and corresponding reconciliations to GAAP financial measures for the
    three and twelve months ended December 31, 2009 and 2008.  Non-GAAP
    financial measures should be viewed in addition to, and not as an
    alternative for, the Company's reported results prepared in accordance with GAAP. The non-GAAP measures included in this press release have been
    reconciled to the nearest GAAP measure in the following table: 

                             Three Months Ended         Twelve Months Ended
                                December 31,                December 31,
                             ------------------         -------------------
                              2009         2008          2009         2008
                              ----         ----          ----         ----  

    Operating Income (Loss):
      GAAP Operating
       Loss              $(42,714)   $(1,250,186)   $(92,146)  $(1,120,913)
      Adjustment                -(a)   1,328,914(b)   26,882(c)  1,334,423(d)
                              ---      ---------      ------     ---------
      Non-GAAP Operating
      Income (Loss)      $(42,714)       $78,728    $(65,264)     $213,510
                         ========        =======    ========      ======== 

    Other Income (Expense):
      GAAP Other Income
      (Expense)          $(23,888)       $11,049    $(76,935)     $(34,118)
      Adjustment            1,590(a)     (26,345)(b)   2,916(c)    (26,345)(d)
                            -----        -------       -----       -------
      Non-GAAP Other
       Expense           $(22,298)      $(15,296)   $(74,019)     $(60,463)
                         ========       ========    ========      ======== 

    Benefit (Provision) for
      Income Taxes:
       GAAP Benefit for
       Income Taxes       $39,721       $104,149     $78,932       $73,161
      Tax Impact of
       Adjustment            (557)(a)   (131,403)(b) (14,799)(c)  (133,331)(d)
                             ----       --------     -------      --------
      Non-GAAP Benefit
       (Provision) for
       Income Taxes       $39,164       $(27,254)    $64,133      $(60,170)
                          =======       ========     =======      ======== 

    Income (Loss) from
     Continuing Operations:
      GAAP Loss from
       Continuing
       Operations        $(26,881)   $(1,134,988)   $(90,149)  $(1,081,870)
      Total Adjustment,
       Net of Tax           1,033(a)   1,171,166(b)   14,999(c)  1,174,747(d)
                            -----      ---------      ------     ---------
      Non-GAAP Income
       (Loss) from
       Continuing
       Operations        $(25,848)       $36,178    $(75,150)      $92,877
                         ========        =======    ========       ======= 

    Diluted Earnings (Loss) per
     Share from Continuing
     Operations:
      GAAP Diluted Loss
       per Share from
       Continuing
       Operations          $(0.23)       $(12.90)     $(0.93)      $(12.25)
      Adjustment
       per Share                -(a)       13.31(b)     0.16(c)      13.29(d)
                              ---          -----        ----         -----
      Non-GAAP Diluted
       Earnings (Loss)
       per Share from
       Continuing
       Operations          $(0.23)         $0.41      $(0.77)        $1.04
                           ======          =====      ======         ===== 

    (a) This amount represents a non-cash charge of $1.6 million related to
        the write-off of unamortized issuance cost in connection with the
        early retirement of a portion of our term loan facility. On an after-
        tax basis, this adjustment approximated $1.0 million, or zero cents
        per diluted share. 

    (b) These amounts represent a non-cash charge of $1.3 billion to reflect
        the impairment of goodwill and property and equipment, $2.0 million
        of separation and benefit related costs associated with the Company's
        executive management changes, a $28.4 million gain on the repurchase
        of $88.2 million aggregate principal amount of the Company's 3.375%
        Convertible Senior Notes as well as the related write-off of
        unamortized issuance costs of $2.1 million.  On an after-tax basis,
        these adjustments approximated $1.2 billion, or $13.31 per diluted
        share. 

    (c) These amounts represent (i) a non-cash charge of $26.9 million to
        reflect the impairment of the Hercules 110; (ii) a $10.7 million
        gain on the repurchase of $20.0 million  aggregate principal amount
        of our 3.375% Convertible Senior Notes offset by the write-off of
        unamortized issuance cost of $0.4 million; (iii) a $4.4 million gain
        on the retirement of $45.8 million aggregate principal amount of our
        3.375% Convertible Senior Notes in exchange for 7,755,440 of our
        common shares offset by the write-off of unamortized issuance cost of
        $1.0 million; (iv) a $10.8 million charge due to the write-off of
        previously deferred unamortized debt issuance costs in connection with
        the amendment of our Credit Agreement; (v) a $4.3 million charge
        related to certain fees paid to third-parties associated with the
        amendment of our Credit Agreement and (vi) a non-cash charge of $1.6
        million related to the write-off of unamortized issuance cost in
        connection with the early retirement of a portion of our term loan
        facility. On an after-tax basis, these adjustments approximated $15.0
        million, or 16 cents per diluted share. 

    (d) These amounts represent a non-cash charge of $1.3 billion to reflect
        the impairment of goodwill and property and equipment, $7.5 million of
        separation and benefit related costs associated with the Company's
        executive management changes, a $28.4 million gain on the repurchase
        of $88.2 million aggregate principal amount of the Company's 3.375%
        Convertible Senior Notes as well as the related write-off of
        unamortized issuance costs of $2.1 million.  On an after-tax basis,
        these adjustments approximated $1.2 billion, or $13.29 per diluted
        share.

Sonic Solutions (SNIC) Expands Small Screen Access to Digital Entertainment

Mar. 2, 2010 (PR Newswire) —

NOVATO, Calif., March 2 /PRNewswire-FirstCall/ — Sonic Solutions® (Nasdaq: SNIC), today announced that the Roxio CinemaNow(TM) entertainment platform now supports digital movie delivery to the Windows Mobile platform. The latest support further expands the reach of the Roxio CinemaNow platform and provides retailers and content owners with another way to reach entertainment lovers on the go.

While supporting handsets running the Windows Mobile Operating System, the Roxio CinemaNow platform provides retailers and content owners with the opportunity to provide instant entertainment access to consumers using Android-based smartphones, as well as DivX Certified® mobile devices. In addition to supporting a range of mobile operating systems, the Roxio CinemaNow platform allows partners to also provide premium content services on an ever expanding ecosystem of connected TVs, Blu-ray Disc players, PCs, set-top boxes, mobile media players, and netbooks from a range of manufacturers.

“Sonic’s goal is to leverage device and format expertise built over two decades to power digital delivery as a format that offers consumers greater convenience and flexibility than physical discs,” said Dave Habiger, president and CEO of Sonic Solutions. “In collaboration with our retail partners, we will continue to add new platform support and build out an open system that will enable consumers to buy a piece of content once, then seamlessly play it back on virtually any type of device with a screen.”

The Roxio CinemaNow entertainment platform serves a broad range of premium content, including new movies and next-day TV programs, to a growing, multi-manufacturer ecosystem of home and mobile electronics including PCs, connected TVs, set-top DVRs, Blu-ray Disc players, smartphones, and mobile media devices. The platform enables retailers and consumer electronics companies to participate in the entertainment supply chain, add value to product offerings and form ongoing relationships with customers. Roxio CinemaNow-powered stores enable consumers to instantly rent and purchase high-quality entertainment on their favorite device and, through Roxio CinemaNow online entertainment locker, the flexibility to playback content ordered on additional consumer electronics devices. As well as being available on a range of consumer electronics, Roxio CinemaNow powers digital entertainment delivery for Best Buy and Blockbuster.

About Sonic Solutions

Sonic Solutions® (NASDAQ: SNIC) is powering the digital media ecosystem through its complete range of Hollywood to Home(TM) applications, services, and technologies. Sonic’s Roxio® products enable consumers to easily manage and enjoy personal digital media content and, through Roxio CinemaNow(TM), access premium Hollywood entertainment on a broad range of connected devices. A wide array of leading technology firms, professionals, and developers rely on Sonic to bring innovative digital media functionality to next-generation devices and platforms. Sonic Solutions is headquartered in Marin County, California.

Forward Looking Statements

This release may contain forward looking statements that are based upon current expectations, including the launch, distribution, and market acceptance of Roxio CinemaNow. Actual results could differ materially from those projected in the forward looking statements as a result of various risks and uncertainties, including those discussed in Sonic Solutions’ annual and quarterly reports on file with the Securities and Exchange Commission. This press release should be read in conjunction with Sonic Solutions’ most recent annual report on Form 10-K, Form 10-Q and other reports on file with the Securities and Exchange Commission, which contain a more detailed discussion of the Company’s business including risks and uncertainties that may affect future results. Sonic Solutions does not undertake to update any forward looking statements.

Sonic, the Sonic logo, Sonic Solutions, Roxio, Roxio CinemaNow, and Hollywood to Home, are trademarks or registered trademarks owned by Sonic Solutions in the United States and/or other countries. All other company or product names are trademarks of their respective owners and, in some cases, are used by Sonic Solutions under license. Specifications, pricing and delivery schedules are subject to change without notice.

Questcor (QCOR) Reports Solid Fourth Quarter Results

Mar. 1, 2010 (PR Newswire) —

UNION CITY, Calif., March 1 /PRNewswire-FirstCall/ — Questcor Pharmaceuticals, Inc. (Nasdaq: QCOR) today reported financial results for the fourth quarter and year ended December 31, 2009. The Company’s financial performance in the fourth quarter of 2009 was driven primarily by:

— a 223% increase in the number of new paid Acthar commercial
prescriptions for the treatment of multiple sclerosis (MS) exacerbations
versus the fourth quarter of 2008,
— a sequential 56% increase in new paid Acthar commercial prescriptions
for the treatment of infantile spasms (IS), and
— lower sequential Medicaid usage.

In addition to the financial improvement in the quarter, the Company also received an encouraging initial set of Acthar prescriptions for the treatment of nephrotic syndrome (NS). Also, during the fourth quarter, the FDA accepted for review Questcor’s supplemental New Drug Application (sNDA) filing which seeks approval for an indication for Acthar in the treatment of IS.

Net sales totaled $25.9 million for the quarter ended December 31, 2009 compared to $13.9 million for the quarter ended September 30, 2009, and $27.0 million for the fourth quarter of 2008. Net income for the fourth quarter of 2009 was $8.4 million, or $0.13 per diluted common share compared to $1.2 million, or $0.02 per diluted common share for the third quarter of 2009, and $16.2 million, or $0.24 per diluted common share for the fourth quarter of 2008. An additional $1.2 million in sales reserves was recorded during the fourth quarter of 2009 for retroactive Tricare rebates. Significantly higher sales reserves adjustments reduced net sales and operating income for the third quarter of 2009 by $4.6 million. Tax benefits resulting from the reversal of a valuation allowance positively affected net income in the fourth quarter of 2008 by $4.4 million.

Net sales totaled $88.3 million for the year ended December 31, 2009, compared with $95.2 million for 2008. Net income for 2009 was $26.6 million, or $0.40 per diluted common share compared with net income applicable to common shareholders of $35.3 million, or $0.49 per diluted common share for 2008. The 2008 earnings were impacted by a one-time net tax benefit of $5.2 million and a deemed dividend of $5.3 million.

“We are making excellent progress on all of Questcor’s top priorities,” said Don M. Bailey, President and CEO. “Our fourth quarter financial performance improved significantly on a sequential basis. Questcor’s sales in the MS market showed marked growth and there are preliminary indications that Acthar may also begin to be adopted in the NS market, which is much larger than either the IS or MS markets. In addition, IS prescriptions and payer mix both improved during the fourth quarter from a very weak third quarter. To date, we are seeing little or no impact on Acthar sales in the IS market from the September 2009 introduction of Sabril (vigabatrin).”

IS, MS, and NS Sales

During the fourth quarter of 2009, Questcor shipped 1,626 vials of Acthar compared to third quarter 2009 shipments of 1,354 vials and fourth quarter 2008 shipments of 1,510 vials. Because Acthar prescriptions are filled at specialty pharmacies, the Company does not receive complete information regarding either the number of prescriptions or the number of vials by therapeutic area for all of the patients being treated with Acthar. However, Questcor is able to monitor historic trends in payer mix for new Acthar prescriptions based on data it receives from its reimbursement support center. Questcor estimates that approximately 90% of new Acthar prescriptions are processed by this support center, but that very few refill prescriptions are processed at this center. The following tables show the number of prescriptions shipped by payer category for each of three therapeutic areas for those new prescriptions processed by the Questcor support center:

Multiple Sclerosis New Prescriptions
————————————
Paid/Commercial Medicaid Tricare/VA
————— ——– ———-
Q108 24 5 0
Q208 35 1 0
Q308 50 5 1
Q408 66 3 2
Total 2008 175 14 3

Q109 78 5 3
Q209 125 11 6
Q309 141 14 5
Q409 213 10 5
Total 2009 557 40 19

Infantile Spasms New Prescriptions
———————————-
Paid/Commercial Medicaid Tricare/VA
————— ——– ———-
Q108 98 38 2
Q208 114 47 3
Q308 113 67 3
Q408 103 56 3
Total 2008 428 208 11

Q109 104 70 5
Q209 93 63 5
Q309 61 55 3
Q409 95 40 5
Total 2009 353 228 18

Nephrotic Syndrome New Prescriptions
————————————
Paid/Commercial Medicaid Tricare/VA
————— ——– ———-
Q109 1 0 0
Q209 3 0 1
Q309 2 0 0
Q409 14 2 1
Total 2009 20 2 2

Note: Historical trend information is not necessarily indicative of
future results. The total number of vials associated with an individual
prescription varies by the condition being treated and by patient.

“As the above tables illustrate, our efforts in MS continue to show that the use of Acthar is expanding,” commented Steve Cartt, Executive Vice President. “Our initiatives to educate MS specialists about the treatment benefits of Acthar have resulted in a tripling in MS prescriptions year over year.”

“In addition, spontaneous IS prescriptions during the fourth quarter rebounded to 140 new paid prescriptions from a low level of 119 in the third quarter,” noted Mr. Cartt. “If we are able to receive approval from the FDA to market Acthar for the treatment of IS, we may be able to expand our sales in this therapeutic area.”

“The modest set of prescriptions for NS in the fourth quarter was an unexpected development at this stage in our efforts to generate sales in this market,” added Mr. Cartt. “NS is a devastating kidney disorder which leads to end-stage renal disease (ESRD). NS is an on-label indication for Acthar and we are working to generate more clinical data to further support the effectiveness of Acthar in the treatment of this disease.”

Sales Reserves–Medicaid, Tricare and VA Adjustments

As required by federal regulations, the Company provides rebates to state Medicaid programs for Acthar dispensed to Medicaid patients. The Medicaid rebate portion of sales reserves for the fourth quarter of 2009 was $8.4 million or 22% of 2009 fourth quarter gross sales. While total new commercially paid Acthar prescriptions for the treatment of IS processed through the Company’s reimbursement support center increased to 95 in the fourth quarter from 61 in the third quarter, the number of Medicaid-reimbursed IS prescriptions dropped 27% sequentially.

The Department of Defense (DOD) operates a prescription drug program through its Tricare Management Administration (Tricare). As a result of uncertainties in an on-going dispute between the pharmaceutical industry and the DOD over Tricare rebate regulations, Questcor recorded a sales reserve related to a portion of Tricare-claimed rebates during the third quarter of 2009. Due to recent developments in that dispute, Questcor recorded an additional $1.2 million in sales reserves during the fourth quarter of 2009 for the remaining potential Tricare-claimed rebates. Effective January 1, 2010, Questcor established new prices for Acthar purchased by Tricare and Veterans Administration (VA) medical centers. Additionally, Questcor has removed uncertainty regarding Tricare rebate liabilities going forward. The new agreement with Tricare does not diminish Questcor’s rights in regards to the fully reserved 2008-2009 liability. Any sales in 2010 to Tricare or the VA will represent an increase from the negligible net sales to these customers in 2009.

Regulatory Activity

Acthar is currently approved in the U.S. for the treatment of MS exacerbations, nephrotic syndrome and many other conditions. Acthar is not approved in the U.S. for the treatment of IS, a potentially life-threatening disorder that typically begins in the first year of life. However, pursuant to guidelines published by the American Academy of Neurology and the Child Neurology Society, many child neurologists use Acthar to treat infants afflicted with IS.

On December 23, 2009 the FDA accepted for review Questcor’s supplemental New Drug Application (sNDA) seeking approval to market Acthar for the treatment of infantile spasms. The FDA has notified Questcor that an Advisory Committee Meeting of independent experts will be held to discuss the approval and use of Acthar in infantile spasms. The FDA has also notified Questcor that it has set a PDUFA goal date of June 11, 2010, but there is no assurance that this date will not be delayed. Approval of the IS indication would allow Questcor to promote the use of Acthar in treating IS to child neurologists.

Previously, the FDA granted Orphan Designation to Acthar for the treatment of IS. As a result of this Orphan Designation, if Questcor is successful in obtaining FDA approval for the IS indication, Questcor believes that it will also qualify for a seven-year exclusivity period during which the FDA is prohibited from approving any other adrenocorticotropic hormone (ACTH) formulation for IS unless the other formulation is demonstrated to be clinically superior to Acthar.

Cash, Accounts Receivable and Share Repurchase Program

At February 26, 2010, Questcor’s cash, cash equivalents and short-term investments totaled approximately $81 million, and accounts receivable totaled approximately $9 million.

During the fourth quarter, the Company repurchased 2.5 million shares of its common stock at a total cost of $9.9 million. In the last two years, Questcor has spent $67.0 million for the repurchase of 14.5 million common and preferred shares.

As of December 31, 2009, Questcor had 61.7 million common shares outstanding, with 5.1 million shares remaining under its common share repurchase program.

Conference Call Details

The Company will host a conference call today to discuss these results at 5:00 p.m. ET. Don Bailey, President and Chief Executive Officer; Steve Cartt, Executive Vice President and Chief Business Officer; Dr. David Young, Chief Scientific Officer; Dave Medeiros, Senior Vice President, Pharmaceutical Operations; Dr. Jason Zielonka, Senior Vice President and Chief Medical Officer; and Gary Sawka, Senior Vice President, Finance and Chief Financial Officer will host the call.

To participate in the live call by telephone, please dial 877-941-2928 from the U.S. or 480-629-9724 from outside the U.S. Participants are asked to call the above numbers 5-10 minutes prior to the starting time. The call will also be webcast live at www.questcor.com. An audio replay of the call will be available for 7 days following the call. This replay can be accessed by dialing 800-406-7325 for domestic callers and 303-590-3030 for international callers, both using passcode 4221516#. An archived webcast will also be available at www.questcor.com.

About Questcor

Questcor Pharmaceuticals, Inc. is a pharmaceutical company that markets H.P. Acthar® Gel (repository corticotropin injection). H.P. Acthar Gel (“Acthar”) is an injectable drug that is approved for the treatment of certain disorders, including the treatment of exacerbations associated with multiple sclerosis (“MS”) and to induce a diuresis or a remission of proteinuria in the nephrotic syndrome without uremia of the idiopathic type or that is due to lupus erythamatosus. In addition, Acthar is not indicated for, but is used in treating patients with infantile spasms (“IS”), a rare form of refractory childhood epilepsy, and opsoclonus myoclonus syndrome, a rare autoimmune-related childhood neurological disorder. For more information, please visit www.questcor.com.

Note: Except for the historical information contained herein, this press release contains forward-looking statements that have been made pursuant to the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “if,” “should,” “forecasts,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of such terms and other comparable terminology. These statements are only predictions. Actual events or results may differ materially. Factors that could cause or contribute to such differences include, but are not limited to, the following:

— Questcor’s ability to continue to successfully implement its
Acthar-centric business strategy, including its expansion in the MS
marketplace;
— FDA approval of and the market introduction of competitive products and
our inability to market Acthar in IS prior to approval of IS as a
labeled indication;
— Questcor’s ability to operate within an industry that is highly
regulated at both the Federal and state level;
— Regulatory changes or actions including Federal or State health care
reform initiatives;
— Questcor’s ability to accurately forecast the demand for its products;
— The gross margin achieved from the sale of its products;
— Questcor’s ability to estimate the quantity of Acthar used by government
entities and Medicaid-eligible patients;
— That the actual amount of rebates and chargebacks related to the use of
Acthar by government entities, including the Department of Defense
Tricare network, and Medicaid-eligible patients may differ materially
from Questcor’s estimates;
— Questcor’s expenses and other cash needs for upcoming periods;
— The inventories carried by Questcor’s distributors, specialty pharmacies
and hospitals;
— Volatility in Questcor’s monthly and quarterly Acthar shipments and
end-user demand;
— Questcor’s ability to obtain finished goods from its sole source
contract manufacturers on a timely basis if at all;
— Questcor’s ability to attract and retain key management personnel;
— Research and development risks, including risks associated with
Questcor’s sNDA for IS and its preliminary work in the area of nephrotic
syndrome;
— Uncertainties regarding Questcor’s intellectual property;
— The uncertainty of receiving required regulatory approvals in a timely
way, or at all; and,
— Questcor’s ability to identify product acquisition candidates and
consummate transactions on terms acceptable to the Company.
— Other risks discussed in Questcor’s annual report on Form 10-K for the
year ended December 31, 2008 and other documents filed with the
Securities and Exchange Commission.

The risk factors and other information contained in these documents should be considered in evaluating Questcor’s prospects and future financial performance.

Questcor undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

For more information, please visit www.questcor.com or www.acthar.com.

Questcor Pharmaceuticals, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)

Three Months Ended Years Ended
December 31, December 31,
————– ————–
2009 2008 2009 2008
—- —- —- —-
Net sales $25,905 $27,018 $88,320 $95,248
Cost of sales (exclusive of
amortization of purchased
technology) 1,898 1,858 7,017 7,304
—– —– —– —–
Gross profit 24,007 25,160 81,303 87,944
Gross margin 93% 93% 92% 92%
Operating expenses:
Selling, general and
administrative 7,841 5,075 29,950 19,247
Research and development 2,662 2,511 9,653 10,614
Depreciation and amortization 121 124 480 503
— — — —
Total operating expenses 10,624 7,710 40,083 30,364
—— —– —— ——
Income from operations 13,383 17,450 41,220 57,580
Other income:
Interest and other income, net 101 247 686 1,075
Gain on sale of product rights – 75 225 75
— — — —
Total other income 101 322 911 1,150
— — — —–
Income before income taxes 13,484 17,772 42,131 58,730
Income tax expense 5,063 1,530 15,502 18,198
—– —– —— ——
Net income 8,421 16,242 26,629 40,532
Deemed dividend on Series A
preferred stock – – – 5,267
— — — —–
Net income applicable to common
shareholders $8,421 $16,242 $26,629 $35,265
====== ======= ======= =======
Net income per share applicable
to common shareholders:
Basic $0.13 $0.25 $0.41 $0.52
===== ===== ===== =====
Diluted $0.13 $0.24 $0.40 $0.49
===== ===== ===== =====
Shares used in computing net
income per share applicable to
common shareholders:
Basic 63,086 65,135 64,196 67,761
====== ====== ====== ======
Diluted 64,783 68,345 66,257 71,350
====== ====== ====== ======

Questcor Pharmaceuticals, Inc.
Consolidated Balance Sheets
(In thousands, except share amounts)

December 31,
2009 2008
—- —-
ASSETS
Current assets:
Cash and cash equivalents $45,829 $13,282
Short-term investments 29,878 42,169
—— ——
Total cash, cash equivalents and
short-term investments 75,707 55,451
Accounts receivable, net of allowance for
doubtful accounts of $77 and $62 at
December 31, 2009 and 2008, respectively 14,833 10,418
Inventories, net 3,378 2,459
Prepaid income taxes – 3,316
Prepaid expenses and other current assets 1,162 1,101
Deferred tax assets 8,180 6,252
—– —–
Total current assets 103,260 78,997
Property and equipment, net 407 450
Purchased technology, net 3,372 3,669
Goodwill 299 299
Deposits and other assets 710 710
Deferred tax assets 3,392 5,021
—– —–
Total assets $111,440 $89,146
======== =======
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $12,921 $4,302
Accrued compensation 2,140 1,896
Sales-related reserves 14,922 11,825
Income taxes payable 477 –
Other accrued liabilities 1,751 1,702
—– —–
Total current liabilities 32,211 19,725
Lease termination and deferred rent
liabilities and other non-current
liabilities 1,226 1,529
—– —–
Total liabilities 33,437 21,254
—— ——
Shareholders’ equity:
Preferred stock, no par value, 7,500,000
shares authorized; none outstanding – –
Common stock, no par value, 105,000,000
shares authorized; 61,726,609 and
65,970,653 shares issued and outstanding
at December 31, 2009 and 2008,
respectively 67,793 84,028
Retained earnings (accumulated deficit) 10,224 (16,405)
Accumulated other comprehensive income
(loss) (14) 269
— —
Total shareholders’ equity 78,003 67,892
—— ——
Total liabilities and shareholders’ equity $111,440 $89,146
======== =======

Questcor Pharmaceuticals, Inc.
Consolidated Statements of Cash Flows
(In thousands)

Years Ended
December 31,
2009 2008
—- —-
OPERATING ACTIVITIES
Net income $26,629 $40,532
Adjustments to reconcile net income to net cash
provided by operating activities:
Share-based compensation expense 3,066 4,119
Deferred income taxes (290) 4,649
Amortization of investments 181 (456)
Depreciation and amortization 480 503
Gain on sale of product rights (225) (75)
Income tax benefit realized from share-based
compensation plans 783 4,932
Excess tax benefit from share-based compensation
plans (743) (4,841)
Changes in operating assets and liabilities:
Accounts receivable (4,415) 13,221
Inventories (919) (94)
Prepaid income taxes 3,316 (3,316)
Prepaid expenses and other current assets (61) (323)
Accounts payable 8,619 2,525
Accrued compensation 244 (49)
Sales-related reserves 3,097 3,649
Income taxes payable 477 (1,330)
Other accrued liabilities 49 210
Other non-current liabilities (303) (347)
—- —-
Net cash flows provided by operating activities 39,985 63,509
—— ——
INVESTING ACTIVITIES
Purchase of property and equipment (140) (133)
Purchase of short-term investments (61,557) (69,613)
Proceeds from the sale and maturities of short-
term investments 73,375 42,388
Net proceeds from sale of product rights 225 75
Changes in deposits and other assets – 34
— —
Net cash flows provided by (used in) investing
activities 11,903 (27,249)
—— ——-
FINANCING ACTIVITIES
Issuance of common stock, net 1,002 2,161
Repurchase of common stock (21,086) (35,571)
Repurchase of Series A preferred stock – (10,348)
Excess tax benefit from share-based compensation
plans 743 4,841
— —–
Net cash flows used in financing activities (19,341) (38,917)
——- ——-
Increase (decrease) in cash and cash equivalents 32,547 (2,657)
Cash and cash equivalents at beginning of year 13,282 15,939
—— ——
Cash and cash equivalents at end of year $45,829 $13,282
======= =======

FDA Approves Exalgo(TM) Extended-Release Tablets

Mar. 2, 2010 (Business Wire) — CombinatoRx, Incorporated (NASDAQ: CRXX) today announced that the U.S. Food and Drug Administration (FDA) has approved the New Drug Application (NDA) for Exalgo™ (hydromorphone HCl) extended-release tablets, for the management of moderate to severe pain in opioid tolerant patients requiring continuous, around-the-clock opioid analgesia for an extended period of time.

CombinatoRx will receive a $40 million milestone payment from Covidien based on Exalgo approval and is eligible to receive tiered royalties on Exalgo net sales. Under the terms of the agreements relating to the merger with Neuromed Pharmaceuticals, effective with the FDA approval of Exalgo, approximately 38,609,168 additional shares of CombinatoRx common stock are outstanding, resulting in CombinatoRx having total shares of common stock outstanding following FDA approval of Exalgo of approximately 88,610,640.

“Our considerable product development expertise played a key role in facilitating this successful NDA submission, with the goal of providing much needed relief to those who suffer from chronic pain,” commented Mark H.N. Corrigan, MD, President and CEO of CombinatoRx. “We will continue to apply our strong development capabilities to the many promising drug candidates in our pipeline going forward.”

The U.S. rights to Exalgo tablets were acquired from Neuromed by Mallinckrodt Inc., a Covidien company, in June, 2009. Neuromed acquired the U.S. marketing rights to Exalgo tablets from ALZA Corporation in April 2007 and was responsible for clinical development and regulatory filings. Covidien is responsible for all commercialization activities for Exalgo in the U.S., including marketing, sales and all post-approval FDA regulatory filings, and will now own the intellectual property for the product. ALZA is responsible for manufacturing, packaging and supply of the product. CombinatoRx and Neuromed merged on December 21, 2009.

About CombinatoRx

CombinatoRx, Incorporated (CRXX) develops novel drug candidates with a focus on the treatment of pain and inflammation. The company applies its combination drug discovery capabilities and its selective ion-channel modulation platform to generate innovative therapeutics. To learn more about CombinatoRx, please visit www.combinatorx.com.

Forward-Looking Statement:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning CombinatoRx, the product Exalgo™, its potential and any royalties CombinatoRx may receive from Mallinckrodt based on net sales of Exalgo, the CombinatoRx drug discovery technologies, and the business plans of CombinatoRx. These forward-looking statements about future expectations, plans, objectives and prospects of CombinatoRx may be identified by words like “believe,” “expect,” “may,” “will,” “should,” “seek,” or “could” and similar expressions and involve significant risks, uncertainties and assumptions, including risks related to the ability of Mallinckrodt to successfully market Exalgo™, the unproven nature of the CombinatoRx drug discovery technologies, the Company’s ability to obtain additional financing or funding for its research and development and those other risks that can be found in the “Risk Factors” section beginning on page 31 of CombinatoRx’s Form S-4 Registration Statement filed in connection with its merger with Neuromed (File No. 333-161146), on file with the Securities and Exchange Commission and the other reports that CombinatoRx periodically files with the Securities and Exchange Commission. Actual results may differ materially from those CombinatoRx contemplated by these forward-looking statements. These forward looking statements reflect management’s current views and CombinatoRx does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release except as required by law.

NuMobile, Inc. (NUBL) Smartphone and Mobile Computing Solutions to Be Reviewed in a Milestone Strategy Presentation Thursday

CARY, NC — (Marketwire) — 03/01/10 — NuMobile, Inc. (OTCBB: NUBL) is scheduled to be featured in a milestone strategy Webcast this Thursday, March 4th. The Webcast is expected to review the Company’s smartphone and mobile computing solutions and price per share performance potential from a milestone investment perspective. The Webcast agenda also includes a discussion of the NewMarket Technology, Inc. (PINKSHEETS: NWMT) Greenfield Partnership Program and a recent analyst report ‘buy’ rating of NewMarket Technology. NuMobile is building a portfolio of software solutions for the global mobile computing and smartphone market and was the first company to join the Greenfield Program last year. A link to the Webcast will be published upon release Thursday.

Milestone Investment Strategy

The Milestone Investment Strategy is an investment approach developed by Philip Verges, the founder and Chairman of NewMarket Technology to help enhance the return on investment opportunity for self-directed retail investors when investing in early-stage businesses.

Greenfield Partnership Program

NewMarket started the Greenfield Partnership Program to accelerate the introduction of new technologies into emerging markets around the world where technology buying is on the rise, while improving return on investment (ROI) potential. Greenfield Program participant companies have been chosen to participate in the partnership program based on their technology and service offerings in conjunction with the emerging geographic markets in which they operate.

Last week, a Greenfield Partner update Webcast was released. The Webcast titled ‘Greenfield Partnership Program Update Webcast’ is available for review at http://www.newmarkettechnology.com/wcgf_20100223.htm.

NewMarket Technology, Inc. ‘Buy’ Recommendation and $1.47 Target PPS

Last week, an analyst report on NewMarket Technology was published with a ‘buy’ rating and a $1.47 target price per share. The independent analyst is a Certified Financial Analyst (CFA) in accordance with the CFA Institute Code of Ethics and Standards for Professional Conduct. The analyst has previously conducted research for a number of Western European and North American financial institutions, including Janney Montgomery Scott.

To learn more about NuMobile and to sign up for company email alerts, please visit the corporate website at www.numobileinc.com.

About NuMobile, Inc. (www.numobileinc.com)

NuMobile is building a portfolio of security and software solutions for the global mobile computing and smartphone market. Through a roll-up strategy, NuMobile plans to acquire and develop mobile computing solutions for a variety of applications, including mobile banking, for the global marketplace. The demand for mobile security and software applications is being driven in large part by the growing number of mobile phone sales into emerging economies that currently do not have substantial access to the Internet via desktop computing. Already in North America, the Company has also forged a partnership in the Chinese market and is developing a plan for the emerging economies of Latin America and East Africa. NuMobile is a SEC fully-reporting public company listed on the Over-the-Counter Bulletin Board.

“SAFE HARBOR STATEMENT” UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements that involve risks and uncertainties. The statements in this release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause NuMobile’s actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.

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Uroplasty, Inc. (UPI) – SUmiT Trial Results Clearly Demonstrate Therapeutic Effect of Percutaneous Tibial Nerve Stimulation

Mar. 1, 2010 (PR Newswire) —

MINNEAPOLIS, March 1 /PRNewswire-FirstCall/ — Uroplasty, Inc. (NYSE Amex: UPI), a medical device company that develops, manufactures and markets innovative proprietary products to treat voiding dysfunctions, today highlighted results of the SUmiT Trial of its Urgent® PC Neuromodulation System that will be published in the April 2010 print edition of THE JOURNAL OF UROLOGY® and is now available on line. The Urgent PC system is a proprietary, minimally invasive, percutaneous tibial nerve stimulation (PTNS) device designed for office-based treatment of urinary urgency, urinary frequency and urge incontinence, symptoms often associated with overactive bladder (OAB).

The pivotal SUmiT Trial was a 220-patient, multicenter, randomized, controlled, double-blind study. Patients and investigators reported statistically significant OAB symptom improvement compared to a validated sham procedure.

Highlights from the study include:

    --  58.3% of PTNS patients considered their overall urinary symptoms
        moderately or markedly improved compared to only 21.9% of sham patients.
    --  Statistically significant changes for PTNS patients included reduction
        in voiding frequency, urinary urge incontinence episodes, nighttime
        voids, urgency episodes and voids with moderate to severe volume, in
        addition to improvement in voiding volume and quality of life measures.
    --  Neither group reported any serious adverse events.

“This important study is the first publication that demonstrates the effectiveness of PTNS compared to a validated sham procedure,” said Dr. Kenneth Peters, lead investigator, and Chairman of the Department of Urology at Beaumont Hospital in Royal Oak, Michigan. “PTNS is a viable OAB treatment and its efficacy is irrefutably demonstrated. It is rare that a medical device is put through such rigorous testing, first comparing it to standard drug therapy as recently done in the OrBIT study and now demonstrating superiority to a sham procedure.”

Publication of the SUmiT Trial follows the publication in The JOURNAL OF UROLOGY of both the 12-week OrBIT (Overactive Bladder Innovative Therapy) multi-center trial in September 2009 and the 12-month OrBIT long term results in January 2010. The 12-week results demonstrated that patients treated with PTNS had fewer significant side effects as well as clinical improvements comparable to patients treated with a leading oral, extended-release OAB drug. The 12-month results demonstrated long term durability of the initial response to PTNS.

“We believe these results erase any doubt that PTNS provides real and measurable clinical results,” said Dave Kaysen, President and Chief Executive Officer of Uroplasty, Inc. “Using a validated sham procedure provided a control usually seen in only the most rigorous pharmaceutical trials. We understand this type of study is rare in the medical device industry. We will use these results, along with previous peer-reviewed publications, to educate medical directors about PTNS effectiveness to establish reimbursement. The SUmiT Trial data is also a key component in our application to the American Medical Association considered at their February meeting for a unique CPT code for PTNS,” added Mr. Kaysen.

For more information about the Urgent® PC Neuromodulation System, please call 866-277-0466 or visit www.uroplasty.com.

About the Urgent PC Neuromodulation System

The Urgent PC Neuromodulation System is a proprietary, minimally invasive nerve stimulation device designed for office-based treatment of urge incontinence, urinary urgency and urinary frequency, symptoms often associated with overactive bladder. Application of neuromodulation therapy targets specific nerve tissue and disrupts the signals that lead to these symptoms. Uroplasty sells the Urgent PC system in the United States, Canada, and countries recognizing the CE mark. Outside of the United States, Urgent PC is also indicated for the treatment of fecal incontinence.

About Uroplasty, Inc.

Uroplasty, Inc., headquartered in Minnetonka, Minnesota, with wholly-owned subsidiaries in The Netherlands and the United Kingdom, is a medical device company that develops, manufactures and markets innovative proprietary products for the treatment of voiding dysfunctions. Our focus is the continued commercialization of our Urgent PC system, which we believe is the only FDA-approved minimally invasive nerve stimulation device designed for office-based treatment of urinary urgency, urinary frequency and urge incontinence, symptoms often associated with overactive bladder.

We also offer Macroplastique® Implants, an injectable urethral bulking agent for the treatment of adult female stress urinary incontinence primarily due to intrinsic sphincter deficiency. For more information on the company and its products, please visit Uroplasty, Inc. at www.uroplasty.com.

Forward-Looking Information

This press release contains forward-looking statements, which reflect our best estimates regarding future events and financial performance. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our anticipated results. We discuss in detail the factors that may affect the achievement of our forward-looking statements in our Annual Report on Form 10-K filed with the SEC. Further, we cannot assure you that we will timely obtain, or even succeed at all at obtaining, a unique CPT reimbursement code from the American Medical Association for Urgent PC treatments, that even if we obtain a unique CPT reimbursement code third-party payers will provide or continue to provide coverage and reimbursement, or reimburse the providers an amount sufficient to cover their costs and expenses.

For Further Information:

    Uroplasty, Inc.                             EVC Group
    ---------------                             ---------
    David Kaysen, President and CEO, or         Doug Sherk (Investors)
    -----------------------------------         ----------------------
    Medi Jiwani, Vice President, CFO, and
     Treasurer,                                 415.896.6820
    -------------------------------------       ------------
    952.426.6140                                Chris Gale (Media)
    ------------                                ------------------
                                                646.201.5431
                                                ------------

Crosstex Energy (XTEX) Reports Fourth-Quarter and Full-Year 2009 Results

Mar. 1, 2010 (Business Wire) — The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation), today reported earnings for the fourth-quarter and full-year 2009.

Fourth-Quarter 2009 – Crosstex Energy, L.P. Financial Results

The Partnership realized adjusted cash flow of $42.3 million in the fourth quarter of 2009 compared with $61.3 million in the fourth quarter of 2008. Adjusted cash flow is a non-GAAP financial measure and is explained in greater detail under “Non-GAAP Financial Information.” There is a reconciliation of this non-GAAP measure to net income (loss) in the tables at the end of this news release. Fourth-quarter 2008 adjusted cash flow included other income of $20.0 million associated with the assignment of certain contract rights to a nonaffiliated third party. Additionally, assets sold during 2009 contributed $18.3 million to fourth-quarter 2008 realized adjusted cash flow.

The Partnership reported net income of $55.9 million in the fourth quarter of 2009, compared with a net loss of $9.4 million in the fourth quarter of 2008. Fourth-quarter 2009 results included an $86.3 million gain on the sale of the Partnership’s Treating assets, while fourth-quarter 2008 results included a $49.8 million gain on the sale of the Partnership’s interest in the Seminole gas processing plant. Fourth-quarter 2009 results also included a $6.1 million loss from discontinued operations that was mainly related to the write-off of debt issuance costs and senior note make whole expense due to the repayment of notes with the proceeds from asset sales.

“We are extremely pleased with the significant progress we made executing our plan in 2009,” said Barry E. Davis, Crosstex President and Chief Executive Officer. “We have focused on optimizing results from our core assets in north Texas and Louisiana while investing in high-return projects, realigning our cost structure, lowering our business risks and significantly reducing our leverage.

“We recently completed our long-term recapitalization and reducing our leverage will continue to be a priority as we conservatively manage our business. We have established financial guidelines that we will follow when making decisions regarding the restoration of our distribution and dividend. Based on our current assumptions, distributions could be paid from the results of operations of the fourth quarter of 2010,” added Davis.

The Partnership’s gross margin from continuing operations for the fourth quarter of 2009 increased to $80.6 million from $65.2 million in the fourth quarter of 2008. This improvement was related to higher margins from the Partnership’s gathering and transmission business and increases in the natural gas processing business as a result of a more favorable natural gas liquids (NGL) market in the 2009 period. Gross margin from the south Louisiana processing and NGL business increased by $10.7 million, as a result of improvements in the NGL marketing business and increased plant inlet volumes. Gross margin from LIG gathering, transmission and processing increased by $7.9 million due to higher margins and a more favorable NGL market. Gross margin derived from north Texas operations declined $7.1 million compared with the fourth-quarter 2008. The decrease was primarily related to a $3.7 million charge associated with a final arbitration decision in a producer lawsuit and declines in throughput. Fourth-quarter 2009 north Texas volumes declined from the third quarter of 2009 mainly due to the renegotiation of a key producer contact, which reduced gathering volumes and increased transmission volumes.

Fourth-quarter 2009 operating expenses declined $6.4 million, or 20 percent, compared with the fourth quarter of 2008, as a result of the Partnership’s continued focus on expense reduction. Fourth-quarter 2009 general and administrative expense was $16.2 million, including a one-time charge of $1.0 million for severance expenses related to asset sales, a decline of $4.7 million versus the same period a year ago. Depreciation and amortization expense of $29.2 million in the fourth quarter of 2009 rose slightly over the fourth quarter of 2008 amount of $28.3 million. Interest expense declined to $28.0 million in the fourth quarter of 2009 from $41.0 million in the fourth quarter of 2008, primarily the result of the debt paydown associated with asset sales during the year.

The net income per limited partner common unit in the fourth quarter of 2009 was $1.09 basic and $1.07 diluted compared with a net loss per limited partner common unit of $0.18 basic and diluted in the fourth quarter of 2008.

Full-Year 2009 – Crosstex Energy, L.P. Financial Results

The Partnership realized adjusted cash flow of $203.8 million in 2009 compared with $245.1 million in 2008. The reduction in realized adjusted cash flow is mainly due to the sale of assets during 2009. The Partnership reported net income of $104.5 million in 2009, compared with $11.1 million in 2008. Results for 2009 included a $183.7 million gain on the sale of Partnership assets compared with a gain of $49.8 million recorded in 2008. The Partnership’s net income in 2009 also included a loss from discontinued operations related to the asset sales of $1.8 million compared to income of $25.0 million in 2008.

The Partnership’s gross margin from continuing operations for 2009 increased to $311.2 million from $307.8 million in 2008. This improvement was primarily related to higher margins on the Partnership’s gathering and transmission assets, which was partially offset by a decline in the natural gas processing business due to a less favorable NGL market. The LIG system’s gross margin increased by $14.0 million year over year primarily due to improved pricing and higher volumes on the northern portion of the system, which was offset by a $15.1 million decline in processing margins in Louisiana. Gross margin derived from north Texas operations rose $10.2 million compared with 2008. The growth was primarily related to increased gathering and plant inlet volumes versus the previous year, which was partially offset by the previously mentioned arbitration charge.

The Partnership’s 2009 operating expense declined $15.4 million, or 12 percent, to $110.4 million versus $125.8 million in 2008. General and administrative expense for 2009 decreased by $9.0 million from 2008, including the effect of a one-time charge of $1.9 million for severance expenses. Depreciation and amortization expense increased $11.6 million in 2009 compared with 2008 due to the Partnership’s investment in its north Texas and Louisiana assets. Interest expense rose to $95.1 million in 2009 from $75.0 million 2008. The increase in interest expense results primarily from an increase in interest rates pursuant to the February 2009 amendments to the Partnership’s debt agreements.

The net income per limited partner common unit for 2009 was $1.44 basic and $1.40 diluted compared with a net loss per limited partner common unit of $3.19 basic and diluted in 2008.

Crosstex Energy, Inc. Financial Results

The Corporation reported net income of $12.1 million in the fourth quarter of 2009 compared with a loss of $4.5 million in the comparable 2008 period. The Corporation’s loss from continuing operations before income taxes (which includes interest of non-controlling partners in the net income of the Partnership) was $24.3 million in the fourth quarter of 2009, compared with $64.3 million in the fourth quarter of 2008.

Net income for the year 2009 was $15.6 million compared with net income of $24.2 million in 2008. The Corporation’s loss from continuing operations before income taxes (which includes interest of non-controlling partners in the net income of the Partnership) was $78.4 million in 2009, compared with $65.6 million in 2008.

The Corporation had $9.9 million of cash on hand and no debt at the end of the fourth-quarter 2009.

In accordance with U.S. accounting standards, the Partnership and Corporation classified the results of their operations for assets sold as discontinued operations for all accounting periods presented. Tables of selected financial data in which amounts have been reclassified as discontinued operations for each period presented are included in this news release.

Crosstex Provides Preliminary 2010 Guidance

The following is the Partnership’s low and high estimates of 2010 adjusted cash flow and distributable cash flow based upon two commodity price scenarios. The Partnership has established financial guidelines that will govern its considerations as to the timing and amount of any future distribution payments, including achieving a ratio of total debt to adjusted cash flow of less than 4.5 to 1 (pro forma for the payment of any distribution), strong coverage from cash flow to continue to allow the Partnership to delever and a positive outlook for its business. Assuming actual results are within the range of guidance, the Partnership expects it could generate sufficient distributable cash flow to pay up to $0.30 per unit in distributions relating to the fourth quarter of 2010 with strong coverage from cash flows generated in such quarter; and the Corporation expects it could pay up to $0.10 per share in dividends, assuming the receipt of a $0.30 per unit distribution from the Partnership. The payment and amount of any distributions and dividends will be subject to approval by the respective Boards of Directors and to economic conditions and other factors existing at the time of determination.

Crosstex to Hold Earnings Conference Call Today

The Partnership and the Corporation will hold their quarterly conference call to discuss fourth-quarter and full- year 2009 results today, March 1, at 10:00 a.m. Central time (11:00 a.m. Eastern time). The dial-in number for the call is 1-888-679-8034. Callers outside the United States should dial 1-617-213-4847. The passcode for all callers is 88621274. Investors are advised to dial in to the call at least 10 minutes prior to the call time to register. Participants may preregister for the call at https://www.theconferencingservice.com/prereg/key.process?key=PUBWL748L. Preregistrants will be issued a pin number to use when dialing in to the live call, which will provide quick access to the conference by bypassing the operator upon connection. Interested parties also can access a live Web cast of the call on the Investors page of Crosstex’s Web site at www.crosstexenergy.com.

After the conference call, a replay can be accessed until June 8, 2010, by dialing 1-888-286-8010. International callers should dial 1-617-801-6888 for a replay. The passcode for all callers listening to the replay is 91226576. Interested parties also can visit the Investors page of Crosstex’s Web site to listen to a replay of the call.

About the Crosstex Energy Companies

Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates approximately 3,300 miles of pipeline, nine processing plants and three fractionators. The Partnership currently provides services for 3.2 billion cubic feet per day of natural gas, or approximately six percent of marketed U.S. daily production.

Crosstex Energy, Inc. owns the two percent general partner interest, a 25 percent limited partner interest and the incentive distribution rights of Crosstex Energy, L.P.

Additional information about the Crosstex companies can be found at www.crosstexenergy.com.

Non-GAAP Financial Information

This press release contains non-generally accepted accounting principle financial measures that the Partnership refers to as Distributable Cash Flow and Adjusted Cash Flow. Distributable Cash Flow is defined as earnings before certain noncash charges, less maintenance capital. Adjusted Cash Flow is defined as net income before interest, income taxes, depreciation, amortization and impairments, stock-based compensation, noncash mark-to-market items gain on the sale of assets and other miscellaneous noncash items. The amounts included in the calculation of these measures are computed in accordance with generally accepted accounting principles (GAAP), with the exception of maintenance capital expenditures. Maintenance capital expenditures are capital expenditures made to replace partially or fully depreciated assets in order to maintain the existing operating capacity of the assets and to extend their useful lives.

The Partnership believes these measures are useful to investors because they may provide users of this financial information with meaningful comparisons between current results and prior-reported results and a meaningful measure of the Partnership’s cash flow after it has satisfied the capital and related requirements of its operations.

Distributable Cash Flow and Adjusted Cash Flow are not measures of financial performance or liquidity under GAAP. They should not be considered in isolation or as an indicator of the Partnership’s performance. Furthermore, they should not be seen as measures of liquidity or a substitute for metrics prepared in accordance with GAAP. A reconciliation of these measures to net income (loss) is included among the preceding and following tables.

This press release contains forward-looking statements within the meaning of the federal securities laws. These statements are based on certain assumptions made by the Partnership and the Corporation based upon management’s experience and perception of historical trends, current conditions, expected future developments and other factors the Partnership and the Corporation believe are appropriate in the circumstances. These statements include, but are not limited to, statements with respect to the Partnership’s and the Corporation’s guidance and future outlook, distribution and dividend guidelines and future estimates, financing plans, financial condition, liquidity and results of operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership and the Corporation, which may cause the Partnership’s and the Corporation’s actual results to differ materially from those implied or expressed by the forward-looking statements. These risks include the following: (1) the Partnership’s profitability is dependent upon prices and market demand for natural gas and NGL’s; (2) the Partnership’s substantial indebtedness could limit its flexibility and adversely effect its financial health (3) the Partnership may not be able to obtain funding due to the deterioration of the credit and capital markets and current economic conditions; (4) the Partnership and the Corporation do not have diversified assets; (5) drilling levels may decrease due to deterioration in the credit and commodity markets; (6) the Partnership’s credit risk management efforts may fail to adequately protect against customer nonpayment; (7) the Partnership’s use of derivative financial instruments does not eliminate its exposure to fluctuations in commodity prices and interest rates; (8) the Partnership may not be successful in balancing its purchases and sales; (9) the amount of natural gas transported in the Partnership’s gathering and transmission lines may decline as a result of reduced drilling by producers, competition for supplies, reserve declines and reduction in demand from key customers and markets; (10) the level of the Partnership’s processing operations may decline for similar reasons; (11) operational, regulatory and other asset-related risks, including weather conditions such as hurricanes, exist because a significant portion of the Partnership’s assets are located in southern Louisiana; and (12) other factors discussed in the Partnership’s and the Corporation’s Annual Reports on Form 10-K for the year ended December 31, 2009, and other filings with the Securities and Exchange Commission. The Partnership and the Corporation have no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

(Tables follow)

Astellas Pharma Inc. (OSIP) Offers to Acquire OSI Pharmaceuticals for $52.00 Per Share in Cash

TOKYO, March 1 /PRNewswire-FirstCall/ — Astellas Pharma Inc. (TSE: 4503), a global pharmaceutical company, will commence a tender offer to acquire all outstanding shares of common stock of OSI Pharmaceuticals (Nasdaq: OSIP) for $52.00 per share in cash, or an aggregate of approximately $3.5 billion on a fully diluted basis.

The all-cash offer, set forth in Astellas’ letter to OSI delivered this morning, represents a significant premium of over 40% on the closing price of OSI’s common stock of $37.02 per share on February 26, 2010, a 53% premium to its three-month average of $34.01 per share, and a 31% premium to its 52-week high of $39.66 per share. Astellas’ offer is not subject to any financing conditions.

The acquisition of OSI – a biotechnology company primarily focused on the discovery, development and commercialization of molecular targeted therapies addressing medical needs in oncology, diabetes and obesity – would support Astellas’ growth strategy of becoming a Global Category Leader in oncology. OSI manufactures and sells Tarceva (erlotinib), a leading cancer medication and has several prospective new oncology medications in its R&D pipeline. The transaction would provide Astellas with a top-tier oncology business in the U.S. and an expanded product portfolio and pipeline. OSI would also augment Astellas’ strong existing franchises in urology and immunology.

Astellas’ scale and financial strength will help OSI realize the value of its current product pipeline, as well as continue the necessary funding of its discovery engine. Adding Astellas’ strong business operations and experience in the development and sales of new products will enable the combined company to accelerate their development and ensure their successful commercialization. Astellas has great respect for the OSI organization and expects to integrate the strengths of OSI’s business and employees into its operations as it has in the past with similar strategic acquisitions.

Masafumi Nogimori, President and Chief Executive Officer of Astellas, commenting on the offer, said, “This offer follows our attempts over the past 13 months to engage OSI in meaningful discussions. We firmly believe in the compelling strategic rationale behind the combination and the opportunity it provides to the OSI stockholders to realize full and fair value, in cash, immediately. As recently as February 12, 2010, Astellas presented this proposal to acquire OSI, which reflected a 50% premium on that date. However, we received a response stating that our offer ‘very significantly undervalues’ OSI. That response was the latest indication to us that OSI is not interested in engaging in substantive discussions. We are therefore taking our offer directly to OSI’s stockholders. Our proposal and its significant premium recognize both the value created by OSI to date and its future prospects. Of course, we are open to, and we hope that OSI’s Board and management will commence, discussions with us to effect a negotiated transaction.”

Astellas has made numerous attempts to engage in substantive discussions to acquire OSI. Astellas first raised its interest in acquiring OSI during a meeting with OSI’s CEO in January 2009 and made its first written proposal in February 2009. Despite subsequent letters reiterating Astellas’ interest in March and June 2009 and several face-to-face meetings, including a meeting between the two CEOs on February 12, 2010, OSI has refused to engage in a meaningful discussion. As a result, Astellas has decided to commence a tender offer and go directly to the OSI stockholders. Astellas will consider all means necessary to secure a completed transaction. Among other things, Astellas intends to nominate directors at OSI’s upcoming annual meeting to give stockholders a voice in the outcome.

Astellas will commence a tender offer on March 2, 2010, to purchase all outstanding common stock of OSI for $52.00 per share in cash. Following successful completion of the tender offer, a merger will be completed at the same price. The complete terms and conditions of the offer will be filed with the U.S. Securities and Exchange Commission and disseminated to OSI stockholders. Astellas has cash and cash equivalents on hand to complete the transaction. The offer is not subject to any financing or due diligence conditions, and will be subject only to customary closing conditions, including the tender of a majority of OSI’s shares of common stock on a fully diluted basis, and OSI’s Board taking all necessary actions to make its stockholder rights plan and Section 203 of the Delaware Corporation Law inapplicable to Astellas’ offer. There are no anticipated regulatory hurdles to completion.

Citigroup is acting as exclusive financial advisor to Astellas and Morrison & Foerster LLP is acting as legal counsel.

Following is a copy of the letter Astellas sent earlier today to Colin Goddard, OSI’s CEO:

    March 1, 2010
    Colin Goddard, Chief Executive Officer, OSI Pharmaceuticals
    Cc: Robert A. Ingram, Chairman, OSI Pharmaceuticals

Dear Dr. Goddard:

As you know from our meetings, we have a great deal of respect for you and OSI, its employees and what the company has achieved. We believe there are significant benefits from OSI’s acquisition by Astellas and believe that a combined entity would allow us to achieve the goal of discovering, developing and delivering novel medications for patients with unmet needs in the oncology space far better than each of our companies could do independently.

When we met on February 12, 2010, I presented our proposal to acquire all of OSI shares for $52 per share, a 50% premium to the prior day’s closing price. This followed Astellas’ numerous attempts to engage in meaningful conversations with OSI over the last 13 months regarding the potential for bringing our two businesses together.

I was hopeful that our February 12th meeting would have finally resulted in a constructive attempt by you and OSI’s Board to discuss a transaction and bring value to your stockholders. Instead, your written response dated February 22nd stated that our proposal “very significantly undervalues” OSI. It also contained a confidentiality agreement with a two-year “standstill” provision which we believe would not be in your stockholders’ best interests, as it would have restricted us from making our offer directly to them.

As we have stated to you consistently in our many communications to you over the last 13 months, we believe the acquisition of OSI by Astellas makes for a compelling business proposition and provides a unique opportunity for our respective stockholders, employees and customers. However, because your response indicates that you have no intention to engage in substantive discussions, our Board has authorized me to take our offer directly to OSI’s stockholders.

We remain enthusiastic about the potential of this transaction to realize the value of OSI’s current commercialized products and to ensure the successful development and commercialization of additional products from its pipeline. We respect your organization very much, and as such we would expect to integrate the strengths of your business and of OSI’s employees into our company as we have in the past with similar strategic acquisitions.

Our proposal would be subject to standard acquisition conditions, including the removal of your stockholder rights plan, and is not subject to any financing or any due diligence conditions. We do not foresee any regulatory or other impediment to closing.

We continue to be excited about the possibility of bringing our two organizations together and we hope that you and your Board will reconsider your position and work with us to achieve a mutually beneficial outcome. Astellas has engaged Citigroup as financial advisor and Morrison & Foerster LLP as legal counsel to assist us in completing this transaction. We and our advisors stand ready to meet with you and your advisors to answer any questions you may have about our offer.

    Very truly yours,

    Masafumi Nogimori
    Chief Executive Officer

    cc:  Toichi Takenaka, Chairman

Additional Information

All details related to this proposal can be found on www.oncologyleader.com

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About Astellas

Astellas Pharma Inc., located in Tokyo, Japan, is a pharmaceutical company dedicated to improving the health of people around the world through the provision of innovative and reliable pharmaceuticals. Astellas has approximately 14,200 employees worldwide. The organization is committed to becoming a global category leader in urology, immunology & infectious diseases, neuroscience, DM complications & metabolic diseases and oncology. For more information on Astellas Pharma Inc., please visit our website at http://www.astellas.com/en.

Important Additional Information

This communication is for informational purposes only and does not constitute an offer to purchase or a solicitation of an offer to sell OSI Pharmaceuticals (“OSI”) common stock. No tender offer for the shares of OSI common stock has commenced at this time. The tender offer (the “Tender Offer”) will be made pursuant to a tender offer statement on Schedule TO (including the Offer to Purchase, Letter of Transmittal and other related tender offer materials) to be filed by Astellas Pharma Inc., Astellas U.S. Holding, Inc. and Ruby Acquisition, Inc. (collectively, “Astellas”) with the Securities and Exchange Commission (“SEC”). These materials, as they may be amended from time to time, contain important information, including the terms and conditions of the Tender Offer, that should be read carefully before any decision is made with respect to the Tender Offer. Investors and security holders may obtain a free copy of these materials, when available, and other documents filed by Astellas with the SEC at the website maintained by the SEC at www.sec.gov. The Offer to Purchase, Letter of Transmittal and other related Tender Offer materials may also be obtained, when available, for free by contacting the information agent for the Tender Offer, Georgeson Inc., at (212) 440-9800 for banks and brokers and at (800) 213-0473 for persons other than banks and brokers.

In connection with Astellas’ proposal to nominate directors at OSI’s annual meeting of stockholders, Astellas may file a proxy statement with the SEC. Investors and security holders of OSI are urged to read the proxy statement and other documents related to the solicitation of proxies filed with the SEC carefully in their entirety when they become available because they will contain important information. Stockholders of OSI and other interested parties may obtain, free of charge, copies of the proxy statement (when available), and any other documents filed by Astellas with the SEC in connection with the proxy solicitation, at the SEC’s website as described above. The proxy statement (when available) and these other documents may also be obtained free of charge by contacting Georgeson Inc. at the numbers listed above.

Astellas and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction. Information regarding these directors and executive officers will be available in the Schedule 14A to be filed today and other documents filed by Astellas with the SEC as described above. Further information will be available in any proxy statement or other relevant materials filed with the SEC in connection with the solicitation of proxies when they become available.

No assurance can be given that the proposed transaction described herein will be consummated by Astellas, or completed on the terms proposed or any particular schedule, that the proposed transaction will not incur delays in obtaining the regulatory, board or stockholder approvals required for such transaction, or that Astellas will realize the anticipated benefits of the proposed transaction.

Statement on Cautionary Factors

Any statements made in this communication that are not statements of historical fact, including statements about Astellas’ beliefs and expectations and statements about Astellas’ proposed acquisition of OSI, are forward-looking statements and should be evaluated as such. Forward-looking statements include statements that may relate to Astellas’ plans, objectives, strategies, goals, future events, future revenues or performance, and other information that is not historical information. Factors that may materially affect such forward-looking statements include: Astellas’ ability to successfully complete the tender offer for OSI’s shares or realize the anticipated benefits of the transaction; delays in obtaining any approvals required for the transaction, or an inability to obtain them on the terms proposed or on the anticipated schedule; and the failure of any of the conditions to Astellas’ tender offer to be satisfied.

Any information regarding OSI contained herein has been taken from, or is based upon, publicly available information. Although Astellas does not have any information that would indicate that any information contained herein is inaccurate or incomplete, Astellas has not had the opportunity to verify any such information and does not undertake any responsibility for the accuracy or completeness of such information.

Astellas does not undertake, and specifically disclaims, any obligation or responsibility to update or amend any of the information above except as otherwise required by law.