EK: Kodak Reports 3rd-Quarter Sales of $3.204 Billion and Improved Earnings

Eastman Kodak Company (NYSE:EK) today reported a GAAP earnings improvement
of $877 million for the third quarter of 2006, on sales of $3.204 billion,
largely as the result of the recording of a tax valuation charge in the
year-ago quarter of $778 million. The company also delivered a $98
million increase in digital earnings, driven by wider gross profit margins,
from strong earnings performance in the Graphic Communications and Consumer
Digital businesses, and the result of the company’s global cost-reduction
initiatives.


Based on its third-quarter 2006 performance, the company is confident of
achieving its 2006 cash and digital earnings goals, and expects digital revenue
growth somewhat below its 10% target, as a result of the company’s focus on
margin expansion. This corresponds to a total revenue decline of
approximately 6%.


“Our business transformation is on track,” said Antonio M. Perez, Chairman
and Chief Executive Officer, Eastman Kodak Company. “I am encouraged by our
third-quarter results, especially because they reinforce our confidence in our
full-year performance, which is the basis on which I manage the company.


“We measure our progress against three important metrics – cash generation,
digital earnings, and digital revenue. Our year-over-year digital revenues were
down slightly during the quarter, reflecting our strong focus on margin
expansion and willingness to pursue more profitable sales, the universe of
which expands as our cost structure improves. Our digital earnings were vastly
improved this quarter and our cash balance continues to exceed $1 billion.
While I am fully aware of the challenges to largely complete our restructuring
by the end of next year, this performance represents clear progress toward our
goals and gives us good momentum to carry into the fourth quarter and
2007.”


For the third quarter of 2006:

• Sales totaled $3.204 billion, a decrease of 10% from $3.553 billion in the
  third quarter of 2005, largely attributable to a 19% decline in traditional
  sales. Third-quarter traditional revenue totaled $1.402 billion, compared to
  $1.725 billion in the year-ago quarter, while digital revenue totaled $1.793
  billion, as compared to $1.814 billion in the year-ago quarter.


• The company’s earnings from continuing operations in the quarter, before
  interest, other income (charges), net, and income taxes, were $2 million,
  compared with a loss from operations of $123 million in the year-ago
  quarter.


• On the basis of generally accepted accounting principles in the U.S.
  (GAAP), the company reported a third-quarter net loss of $37 million, or $0.13
  per share, which includes after-tax restructuring costs of $202 million, or
  $0.70 per share. By comparison, the third quarter 2005 GAAP net loss was $914
  million, or $3.18 per share. The difference is largely driven by the inclusion
  in last year’s third quarter of a $778 million, or $2.71 per share, non-cash
  charge to record a valuation allowance against the net deferred tax assets in
  the U.S.


• Digital earnings were $105 million, compared with $7 million in the
  year-ago quarter, marking the first time that the company’s quarterly digital
  earnings growth exceeded the quarterly decline in traditional earnings. This
  performance was primarily due to operational improvements throughout the
  digital portfolio, the impact of a non-recurring licensing arrangement within
  the Consumer Digital Group, and strong results in the Graphic Communications
  Group.

Other third-quarter 2006 details:

• For the quarter, net cash provided by operating activities on a GAAP basis
  was $329million, compared with $370 million in the year-ago quarter. Investable
  cash flow for the quarter was $237 million, compared with $216 million in the
  year-ago quarter.


• Kodak held $1.102 billion in cash on its balance sheet as of September 30,
  2006, compared with $610 million on September 30, 2005. This is consistent with
  the company’s stated desire to maintain approximately $1.0 billion of cash on
  hand.


• Debt decreased $192 million from the second-quarter level, to $3.339
  billion as of September 30, 2006, and was down $244 million from the December
  31, 2005 level of $3.583 billion. The company intends to reduce debt by
  approximately $800 million in 2006.


• Gross Profit was 27.3% in the current quarter, up from 25.9% in the prior
  year quarter, primarily because of reductions in manufacturing costs and the
  favorable impact of the previously noted licensing arrangement, offset by
  volume declines in traditional product sales.

• Selling, General and Administrative expenses declined by $105 million in
  the third quarter, to $565 million, compared with $670 million for the
  prior-year quarter. As a percentage of sales, SG&A decreased from 18.9% in
  the prior-year quarter to 17.6% in the third quarter of 2006.

Third-quarter segment sales and results from continuing operations, before
interest, other income (charges), net, and income taxes (earnings from
operations), are as follows:

• Graphic Communications Group sales were $880 million, compared with $886
  million in the year-ago quarter. Strong digital revenue growth from digital
  plates, commercial inkjet, NexPress color and document scanners during the
  quarter was offset by expected declines in the traditional product portfolio.
  Earnings from operations were $31 million, compared with $7 million in the
  year-ago quarter. This improvement was largely driven by contributions
  from the group’s core digital businesses and cost reductions from business integration activities.


• Consumer Digital Group sales totaled $640 million, down 3%. Earnings from
  operations increased by $85 million, from a loss of $61 million in the year-ago
  period, to earnings of $24 million in the current quarter. The earnings results
  reflect improvements across virtually the entire digital portfolio.


• Film and Photofinishing System sales were $1.074 billion, down from $1.353
  billion in the year-ago quarter. Earnings from operations were $139 million,
  compared with $174 million in the year-ago quarter. This decrease was primarily
  driven by an expected decline in revenue and higher silver prices. During the
  third quarter of 2006, the group achieved a 12.9% operating margin, maintaining
  the performance from the year-ago quarter.


• Health Group sales were $597 million, down 6%. Earnings from operations for
  the segment were $68 million, compared with $96 million a year ago. This is
  primarily due to higher silver prices, and costs associated with the company’s
  exploration of strategic alternatives for its Health Group. Despite these
  challenges, the Health Group maintained operating margins of 11.4%.


• All Other sales were $13 million, compared with $20 million in the year-ago
  quarter. For the third quarter, the loss from operations was $48 million,
  compared with a loss of $61 million in the year-ago quarter. The All
  Other category includes the Display & Components operation and other
  miscellaneous businesses.

2006 Goals


Kodak continues to expect net cash provided by operating activities this
year of $800 million to $1.0 billion, which corresponds with investable cash
flow of $400 million to $600 million. Accordingly, the company expects a
GAAP loss from continuing operations before interest, other income (charges),
net, and income taxes for the full year of $400 million to $600 million, which
includes approximately $1.0 billion in pre-tax restructuring charges. This
corresponds to digital earnings from operations this year in a range of $350
million to $450 million. The company forecasts 2006 digital revenue growth
somewhat below 10%, reflecting the company’s focus on targeted participation in
the consumer digital market. Total 2006 revenue is expected to be down
approximately 6%.

IBM Board Approves Regular Quarterly Cash Dividend

The IBM (NYSE:IBM) board of directors today declared a regular quarterly cash dividend of $.30 per common share, payable December 9, 2006 to stockholders of record November 10, 2006.

With the payment of the December 9 dividend, IBM will have paid 364 consecutive quarterly dividends, starting in 1916.

The board also authorized $4 billion in additional funds for use in its stock repurchase program. This amount is in addition to approximately $2.4 billion for stock repurchase remaining from a prior authorization. With this new approval, IBM now has approximately $6.4 billion for its stock repurchase program. IBM said it will repurchase shares on the open market or in private transactions from time to time, depending on market conditions.

HPQ: HP Completes VoodooPC Acquisition

HP today announced it has completed its acquisition of VoodooPC, a high-end gaming PC provider located in Calgary, Alberta, Canada.

Announced on Sept. 28, the acquisition will strengthen HP’s gaming market portfolio by bringing together the high-end gaming expertise of VoodooPC with HP’s research and development and global distribution capabilities.

Effective Nov. 1, VoodooPC co-owner Rahul Sood will be the chief technologist for HP’s newly formed gaming PC business unit, and co-owner Ravi Sood will be the unit’s director of strategy and marketing. Both executives will report to Phil McKinney, general manager of HP’s gaming business unit and vice president and chief technology officer of HP’s Personal Systems Group.

“HP is delighted to welcome VoodooPC into our new gaming business unit,” said Todd Bradley, executive vice president, Personal Systems Group, HP. “Combining VoodooPC’s passion and expertise of the gaming world with HP’s R&D and marketing infrastructure positions HP to play a leadership role in all aspects of gaming.”

HP plans to maintain VoodooPC’s current distribution model and brand name along with its marketing, sales, support and development operations. Voodoo PCs will continue to be available for purchase on line at www.voodoopc.com

HPQ: HP Waives Conditions to Completion of Tender Offer for Mercury Interactive

HP today announced that it has waived all conditions to the completion of its previously announced tender offer for all of the outstanding shares of common stock of Mercury Interactive Corporation other than the minimum condition that Mercury stockholders tender and not withdraw at least a majority of the outstanding Mercury shares.

As previously announced, the tender offer currently is set to expire at midnight, New York City time, on November 1, 2006.

IBM Introduces Services to Enable Virtual Computing

IBM (NYSE: IBM), the world's leading information technology (IT) services provider, today introduced a service product that helps businesses utilize virtualization technologies to simplify computing in the workplace. The new Virtual Infrastructure Access service product enables centralized computing at the server level and provides workers security-rich access to applications, information and resources.

As part of the service product introduced today, a highly skilled team of End User Services experts from IBM will provide consultation, assessment, planning, design and implementation to help clients deploy virtual infrastructures for security-rich end user computing.

The Virtual Infrastructure Access service product represents the latest step in IBM's strategy to deliver traditional labor-based technology services in a manner more similar to the delivery of technology products.

"IBM can help businesses optimize their end user environments by integrating, deploying, and innovatively managing multiple end user devices and software platforms that can increase employee performance and productivity, while freeing IT staff to focus on creating new business value," said John Visentin, vice president, IBM End User Services. "The new IBM Virtual Infrastructure Access service product provides security-rich access to applications, information and resources anytime, from virtually anywhere."

Today's explosion in end user technology poses challenges for businesses including device proliferation, support for a dispersed workforce, backup and recovery of distributed data, IT environment complexity, increasing support costs and increased security risks. The need to support new end user technology places strain on IT managers needing to support complex systems and ever-increasing employee IT needs.

Building on IBM's four decades of virtualization product experience, IBM's Virtual Infrastructure Access service product empowers employees by creating a level of independence between the device, the operating system and the applications. The new centrally managed environment simplifies technical support and can reduce downtime and costs by placing processing power requirements onto the server.

IBM is also announcing two new services today for businesses seeking to simplify end user computing. The new services leverage innovative technologies from IBM Research to help optimize a client's end user environment. They are:

IBM Software Platform Management Services: provides electronic distribution and installation of workstation software packages and data content from a central point with minimum user intervention. This service supports end user workstation software platform images, consisting of the operating system, network protocols, hardware drivers, core applications and operating system patch management.
IBM Platform Integration and Deployment Services: provides a range of activities, from procurement of end user devices -- including personal computers, kiosks, automated teller machines (ATMs), mobile and wireless devices -- to overseeing the staging and testing of end user equipment, site survey, equipment installation and on-site training.
Scotiabank, one of North America's leading financial institutions with branches and offices in 50 countries worldwide, has worked with IBM on initiatives including software distribution, security patch deployment and image consolidation.

"IBM has helped us achieve greater consistency and efficiency within our workstation environment," said J.P. Savage, chief technology officer, Scotiabank. "We are able to function in a highly secure technical environment as a result of the implementation of End User Services from IBM."

For more information about new service products from IBM, go to: www.ibm.com/services/spotlight

VZ: Verizon Business Wins Ethernet Market Leadership Award

Verizon Business is the winner of the 2006 Ethernet Provider of the Year Award for Market Leadership.

The award -- from Heavy Reading, a leading industry analyst firm -- recognizes Verizon Business' success in the marketplace, broad and expansive service portfolio, geographic coverage and impressive revenue growth. The honor also recognizes Verizon Business' leadership in industry forums such as the Metro Ethernet Forum (MEF), which presented Verizon Business with the U.S. Carrier Ethernet Service Provider of the Year - Best in Business Award in June.


"I believe this award from Heavy Reading reinforces our position as the market leader in this high-growth strategic area of the telecommunications market," said Tom Roche, vice president of marketing for network voice and data services for Verizon Business. "We were one of the first providers to offer Ethernet, and we are determined to continue the trend of strong leadership and commitment to our customers and the industry in this space."


Stan Hubbard, senior analyst with Heavy Reading, said, "Among other things, Verizon Business has played a lead role in shaping industry debate around carrier Ethernet, developed a broad and expanding service portfolio, extended the benefits of high-performance Ethernet solutions to a wide range of industry verticals, and driven Ethernet to more locations in metro, national, and international markets.


"In short, Verizon Business mounted the most impressive carrier Ethernet sales, marketing and product development efforts of any North American operator in 2006."



Verizon Business accepted the Market Leadership award at the Ethernet Expo on October 25 in New York City. At the event, Verizon Business also announced an expansion of its Ethernet Virtual Private Line (EVPL) International service to the Asia-Pacific region.


In addition to receiving the Ethernet service provider of the year award from the MEF, Verizon Business received MEF certification in April for its complete suite of global Carrier Ethernet services. As a leading provider of these services, Verizon Business was among the first providers to receive certification for adopting global Ethernet interoperability standards as defined by the MEF.


Verizon Business was the only service provider to be recognized for offering metro, national and global Ethernet services, and offers one of the broadest, deepest and best sets of Ethernet connections available today.


Following the Heavy Reading awards ceremony, MEF President Nan Chen said, "I would like to congratulate Verizon Business for this market-leadership recognition for providing Carrier Ethernet services. The company has a clear commitment to the future of Carrier Ethernet as a technology and service, and sets a clear example for the industry."


Verizon Business provides the following portfolio of Ethernet services:

Ethernet Private Line (EPL) -- within 145 U.S. metro markets and 10 European countries.
Ethernet Virtual Private Line (EVPL) -- within 145 U.S. metro markets and six Asia-Pacific countries and territories, as well as between the United States and six Asia-Pacific regions, and between the United States and 10 European countries.
E-LAN Services -- within 53 metro markets in the United States.
Ethernet Access for Private IP and the Internet -- throughout the United States, within 19 European countries and seven countries within the Asia-Pacific region.
Customers may use Ethernet either as a stand-alone end-to-end service in the United States, Europe and Asia-Pacific regions or as a means of quickly and easily accessing either the Internet or Private IP, Verizon Business' global MPLS-based virtual private network (VPN) offering.


Verizon Business is a recognized leader in delivering advanced communications and information technology (IT) services for large-business customers around the world. In April, the company was awarded the 2006 "Highest Customer Satisfaction With Large Enterprise Data Service Providers" by J.D. Power and Associates in its annual study of small, mid-size and large-business customers.


About Verizon Business

Verizon Business, a unit of Verizon Communications (NYSE: VZ), is a leading provider of advanced communications and information technology (IT) solutions to large business and government customers worldwide. Combining unsurpassed global network reach with advanced technology and professional service capabilities, Verizon Business delivers innovative and seamless business solutions to customers around the world. For more information, visit www.verizonbusiness.com



J.D. Power and Associates Disclaimer: Verizon Business received the highest numerical score among data service providers in the proprietary J.D. Power and Associates 2006 Major Provider Business Telecommunications Data Services StudySM. Study is based on 3.138 total responses measuring 6 providers and measures opinions of consumers utilizing telecom services at small/midsize and large enterprise U.S. businesses. Proprietary study results are based on experiences and perceptions of consumers surveyed in January 2006. Your experiences may vary. Visit jdpower.com/cc

YHOO: Nissan Partners With Yahoo! Music to Create All-New Online Destination for Live Music

Yahoo! Inc. (Nasdaq:YHOO) and Nissan North America, Inc. (NNA) today announced a new partnership with the debut of "Nissan Live Sets on Yahoo! Music," creating the definitive online destination for live music. With bi-monthly performances in front of a live studio audience on a sound stage created by Yahoo! Music, "Nissan Live Sets on Yahoo! Music" kicks-off November 15 with its inaugural performance by Grammy-award winning artist, Christina Aguilera, performing hits from her new album, "Back to Basics." Multi-platinum alternative rock group Incubus is also slated to perform songs from their upcoming album, "Light Grenades." "Nissan Live Sets on Yahoo! Music" significantly expands the scope of original music content available on the web and brings fans and artists together through fully-integrated online and offline channels.

Recordings of the live shows are broadcast on Yahoo! Music at music.yahoo.com/nissanlivesets or can be found by searching for "Nissan Live Sets" on Yahoo!. As the sole sponsor of the site, Nissan will integrate a variety of online advertising such as streaming video, flash animations and game units. A Spanish language version of the site--scheduled to launch within the next year--will also be sponsored by Nissan.

"As the premier online destination for music fans, Yahoo! Music reaches and serves the needs of music fans by creating distinct platforms for talent," said Dave Goldberg, VP and GM of Yahoo! Music. "This innovative partnership with Nissan further enables Yahoo! Music to build an online community where artists can enhance user experience through live performances and interaction with fans."

"Nissan Live Sets on Yahoo! Music" will allow fans to interact with talent through the studio audience by integrating a live Q&A with the audience into the performance. "Nissan Live Sets on Yahoo! Music" also allow artists to have creative control of their music by encouraging talent to explore diverse projects such as B-side songs, covers of their favorite songs and duets.

Located on the FOX Studio lot in Los Angeles, the "Nissan Live Sets on Yahoo! Music" custom built sound stage is equipped with the latest digital video and audio technology. The set features a Nissan lounge, branded interactive product displays and advertising.

"The sponsorship of the 'Nissan Live Sets on Yahoo! Music' is an extension of our transformational marketing efforts designed to create a high level of engagement with our consumers by reaching them through non-traditional channels," said Jan Thompson, vice president of marketing, NNA. "Music is a big reason people are online. We were drawn to the interactive platform of this program, the A-list artists it expects to attract and the opportunity to engage our customers through music."

Additional "Nissan Live Sets on Yahoo! Music" content and features include:

-- Video: The Encore Performance feature will allow users to view archived "Nissan Live Sets on Yahoo! Music" performances.

-- Audio: Fans will be able to download and stream exclusive EPs from performances. Yahoo! Music will also provide 30-second on-demand samples of each performance with links to purchase complete shows on Yahoo! Music Unlimited.

-- Photos: Audience members will receive Flickr-enabled phones to capture their experiences at the performance. Photos will be automatically uploaded to photo galleries on the "Nissan Live Sets on Yahoo! Music"/Flickr page.

-- Text: A fan will be selected for each performance to sound off and share their experience through a Yahoo! 360 degree blog. Artists will also create their own Yahoo! 360 degree page on Yahoo! Music. Artist-specific quizzes will test fans knowledge of their favorite musicians.

Additional artist performances, drawn from diverse musical genres, will be announced monthly.

About Yahoo! Music

Yahoo! Music (http://music.yahoo.com) offers the most comprehensive music-related content, features and information available online. Yahoo! Music provides a wide selection of streaming video, the Web's largest collection of music videos, Internet radio, exclusive artist features and music news covering all genres of music to Yahoo! visitors.


About Nissan North America

In North America, Nissan's operations include automotive design, engineering, consumer and corporate financing, sales and marketing, distribution and manufacturing. More information on Nissan in North America and the complete line of Nissan and Infiniti vehicles can be found online at www.nissannews.com or by contacting the corporate media line at 615-725-5631.

IBM And Lehman Brothers to Invest in Chinese Businesses

IBM (NYSE: IBM) and Lehman Brothers (NYSE: LEH) announced today they are teaming up to create the China Investment Fund with an initial capitalization of $180 million to drive the financial and business transformation of Chinese enterprises through innovative business practices and technology.

With each company initially providing $90 million, the Fund brings together the strengths of both companies -- Lehman Brothers’ global investment banking and private equity experience and capabilities, and IBM’s business and operational insight as well as its technology leadership in China. Creation of the Fund marks the first such alliance between IBM and Lehman Brothers anywhere in the world.

The Fund's investments will support the China central government’s policy that encourages companies to be innovative in business practices and management as well as in information technology and product development.

Unlike traditional venture capital firms that give early-stage companies money in exchange for an ownership stake, IBM and Lehman will focus on mid-stage to mature, public or private Chinese companies across many industry sectors. In addition to funding, IBM and Lehman will provide management and technology expertise to the companies in which they invest, enabling those companies to keep pace with the quickly evolving Chinese market.

China's GDP was ranked fourth in the world in 2005, and with an economy expected to grow 7.5 percent per year over the next five years, the country is expected to rank third, behind only the U.S. and Japan, by 2010.

China's 11th 5-Year Blue Print (2006-2010), which encourages a company rather than government-driven innovation system, focuses on optimizing and upgrading traditional industries while developing high-tech industries such as information technology, communications, next generation networks, nanotechnology, biotechnology and an IT services sector.

“IBM has been working as an innovation partner to Chinese companies and the Chinese government for a long time," said Henry Chow, chairman and chief executive officer, IBM Greater China Group. "This Fund is an opportunity for us to utilize our experience in China and, as a globally integrated company along with Lehman Brothers' investment management expertise, help facilitate the government’s objectives of transforming China’s enterprises."

Michael Odrich, Lehman Brothers global head of private equity, said: "Lehman Brothers and IBM are highly committed to China and are excited about the investment opportunities the Fund will have in this dynamic market. The Fund will offer Chinese businesses access to investment capital as well as best practice technology and business strategies from two of the world's most innovative global organizations."

IBM first entered China in 1934 and returned to the country in 1979. IBM China currently has 7,600 employees involved in sales, services, manufacturing and research activities. The China Research lab located in Beijing is one of IBM's eight Research labs worldwide. Established in 1995, it was the first research facility to be located in China by a multinational corporation.

The alliance with Lehman Brothers strengthens IBM's emphasis on helping Chinese companies improve their capabilities by introducing innovative technology and management practices. In the last 18 months, IBM has established partnerships with more than 250 VC-backed start-ups in China, giving them access to IBM technology expertise, routes to market, and joint client engagements. The alliance with Lehman Brothers will provide additional capability to work directly with strategic partner companies.

Lehman Brothers was a pioneer among international investment banks in entering the Chinese market and established its Beijing representative office in 1993. Since then, it has completed many “first-of-its-kind” transactions for Chinese clients, and also is a Qualified Foreign Institutional Investor that invests directly in Chinese domestic shares and bonds. China is an important component of Lehman Brothers' Asia and global strategy. This alliance with IBM is another step by Lehman Brothers toward delivering its full range of expertise to the China market.

About Lehman Brothers

Lehman Brothers, an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. For further information about Lehman Brothers’ services, products and recruitment opportunities, visit www.lehman.com

VZ: Verizon Communications Posts Strong Third-Quarter Results as Organic Growth Initiatives Gain Momentum

Verizon Communications Inc. (NYSE:VZ) today reported strong financial and operational results for the third quarter 2006, as sales volumes gained momentum in wireless, broadband and enterprise markets.

Verizon reported quarterly earnings of $1.9 billion, or 66 cents per diluted share, compared with $1.9 billion, or 67 cents per share, in the third quarter 2005.

Reported earnings in the third quarter 2006 include a charge of 2 cents per share for special items, including pension settlement charges and Verizon Center relocation and merger integration costs.  Reported earnings in the third quarter 2005 had included a net gain of 1 cent per share in special items, principally from gains on a real estate sale and tax benefits, partially offset by asset impairments.  In the third quarter 2006, Verizon recognized an $85 million favorable tax benefit at Vodafone Omnitel.

Before special items (non-GAAP), Verizon's third-quarter 2006 earnings were $2.0 billion, or 68 cents per share.  This is an increase of 7.5 percent compared with earnings of $1.8 billion, or 66 cents per share, in the third quarter 2005.

Consolidated third-quarter 2006 operating revenues were $23.3 billion, a 25.8 percent increase compared with the third quarter 2005.  Consolidated total operating expenses were $19.3 billion, a 29.0 percent increase compared with the third quarter 2005.  Verizon's third-quarter 2006 reported results include revenues and expenses from the former MCI.

Comparing third quarter 2006 with third quarter 2005 on a pro-forma (non-GAAP) basis:

• Adjusted operating revenues increased 3.6 percent, supported by increasing sales volumes in markets that the company has been growing organically rather than through acquisition.
  
  


• Adjusted cash expenses increased 4.4 percent.
  
  


• Adjusted operating income increased 6.6 percent.

Adjusted operating income margins, including the effects of net pension and OPEB (other post-retirement benefits) costs, were 17.3 percent in third quarter 2006, compared with 16.8 percent in third quarter 2005.  Pro-forma, adjusted information presents the combined operating results of Verizon and the former MCI on a comparable basis.

Long-Term Shareholder Value

"Verizon continues to win customers and market share for wireless, broadband and enterprise services," said Ivan Seidenberg, Verizon chairman and CEO.  "These organic growth initiatives gained momentum in the third quarter, and we are confident this growth is sustainable.  We are building long-term shareholder value on a foundation of infrastructure and technology investment, supported by innovative marketing and customer service initiatives.

"Once again, Verizon Wireless has posted another industry-leading quarter of profitable growth, while our other network-based businesses continue to establish new customer relationships.  Verizon Telecom reported an excellent quarter in adding broadband and video customers.  Verizon Business again delivered sequential revenue growth as it focuses on increasing its penetration of U.S.-based multi-national accounts, and the integration of the former MCI is producing significant operational benefits and synergies that are on plan."

Seidenberg added, "We are maintaining strong consolidated cash flows that we have used in part to continue our share repurchase program in the third quarter."

Verizon Wireless Leads Industry

Verizon Wireless again delivered strong revenue growth, profitability, net customer additions and low churn that were significantly ahead of the industry.

Verizon Wireless is now the largest U.S. wireless carrier in terms of revenue.  The company is also the largest wireless data provider based on data revenue, and it has the most retail customers -- that is, businesses and consumers directly served by Verizon Wireless and who buy Verizon Wireless-branded service, rather than customers of the company's resellers.

Verizon Wireless revenues grew 18.2 percent year-over-year to $9.9 billion in the third quarter 2006, driven by strong customer growth and demand for data services.  This was the fourth consecutive quarter of 18 percent or better revenue growth.  Service ARPU (average revenue per user) increased year-over-year for the second consecutive quarter, and wireless data revenues grew to 14.1 percent of total wireless service revenues.

Verizon Wireless operating income margin was 26.2 percent in the quarter, its highest level ever, reflecting the company's ability to improve its industry-leading cost efficiency even as it added the most retail customers.

Wireless EBITDA margin was 45.0 percent.  (EBITDA -- or earnings before interest, taxes, depreciation and amortization -- is a non-GAAP measure that adds depreciation and amortization to operating income; EBITDA margin is calculated by dividing EBITDA by wireless service revenues.)

Verizon Wireless added 1.9 million net customers in the third quarter 2006, for a total of 56.7 million customers nationwide, a 15.1 percent increase in total customers from the end of the third quarter last year.  During the past 12 months, the company has added nearly 7.5 million net customers, more than any other wireless carrier.  All of the net additions in the third quarter and almost all net additions in the past 12 months were retail customers.

Key to the company's strong net add performance was its continued industry-leading low churn level.  For the third quarter 2006, total churn was 1.24 percent, and churn among the company's retail postpaid customers -- 93 percent of all its customers -- was 0.95 percent.

Verizon Telecom Broadband Gains

Verizon Telecom, which serves wireline residential and small-business customers, added 448,000 net broadband connections in the third quarter 2006.  These results include new customers of both DSL and FiOS fiber-optic-based Internet access services.  Over the past year, Verizon Telecom has added more than 2 million net new DSL and FiOS Internet customers.  Verizon Telecom now has 6.6 million total broadband connections, an increase of 45.1 percent compared with the third quarter 2005.

FiOS Internet customers accounted for 147,000 of the net broadband connection additions in the third quarter and now total 522,000.  In addition, Verizon Telecom had 118,000 FiOS TV customers at the end of the third quarter.

In the consumer market, Verizon added 120,000 more net broadband and video customers during the third quarter than it lost in primary wireline voice access lines.  New broadband and video sales have more than made up for a reduction in primary wireline voice access lines of customers who turned to wireless, cable or Internet protocol (IP) services.  Primary residential access lines decreased by 419,000 in the third quarter 2006, compared with the second quarter 2006, while Verizon added 539,000 residential broadband and video customers, including customers with DIRECTV bundles, over the same period.

At the end of the third quarter 2006, there were 46.0 million total domestic wireline access lines -- which also include secondary residential lines, public telephones, business lines and wholesale voice connections.  This represents a 7.5 percent decrease compared with the end of the third quarter 2005.

Total wireline operating revenues, including Verizon Business, were $12.8 billion in the third quarter 2006, an increase of 35.5 percent compared with the third quarter 2005.  On an adjusted basis (non-GAAP), total wireline operating expenses were $11.7 billion in the third quarter 2006, a 43.3 percent increase compared with the third quarter 2005.

On a pro-forma basis, wireline operating revenues decreased 4.7 percent, comparing third quarter 2006 with third quarter 2005, driven in part by a continuation of the expected declines in former MCI operations serving mass market (residential and small business) customers.  Wireline revenues were up sequentially for the second quarter in a row, with third quarter 2006 revenues up 0.1 percent over second quarter 2006.

Also on a pro-forma basis, wireline cash expenses (total operating expenses less depreciation and amortization expense) were $9.3 billion in the third quarter 2006, a decrease of 1.3 percent compared with the third quarter 2005.

Verizon Business Continues to Build Momentum

Verizon Business, which provides advanced communications and information technology solutions to large business and government customers globally, continued to build momentum during the third quarter.

Compared with the second quarter 2006, Verizon Business operating revenues increased 1.7 percent to $5.2 billion in the third quarter 2006.  Pro-forma revenues from key strategic services, such as IP and managed services, grew nearly 25 percent in the third quarter 2006, compared with the third quarter 2005.

During the third quarter 2006, Verizon Business realized approximately $150 million in incremental synergies from the integration of the former MCI.  This brings the year-to-date total to approximately $350 million -- on track with the company's year-end target of $550 million.

Verizon Business once again introduced a series of new products and capabilities for its large business and government customers, and delivered a strong quarterly performance.  New offerings during the quarter included expansion of Ethernet access to the Verizon Business Private IP network in six additional European countries and the addition of new IP-based capabilities for its Contact Center Services and VoIP (voice over Internet protocol) portfolio to help businesses enhance customer-service operations and leverage the benefits of VoIP.  Verizon Business also unveiled a new unified operations and security center for its federal government customers.

Cash Flows, Share Repurchases and Debt

At the consolidated level, cash flows from continuing operations were $17.9 billion in the first nine months of 2006, compared with $15.0 billion in the first nine months of 2005.  Capital expenditures from continuing operations were $12.3 billion in the first nine months of 2006, including a $1.1 billion increase in wireline investment primarily driven by the inclusion of MCI, compared with $11.4 billion over the same period in 2005.  Verizon continues to maintain its guidance for full-year 2006 capital expenditures of $17.0 billion to $17.4 billion.

In the third quarter, Verizon repurchased approximately $350 million in shares, bringing total share repurchases to $1.35 billion over the first nine months of 2006, toward a previously announced target of $1.5 billion by year-end.

Verizon's total debt at the end of the third quarter 2006 was $41.7 billion, compared with $42.4 billion at the end of the second quarter 2006.

Special Items and FAS 158

Special items in the third quarter 2006 included $64 million in after-tax charges, or 2 cents per share, for pension settlement charges, MCI merger integration costs, and relocation and other costs related to establishing the Verizon Center in New Jersey.  Special items in the third quarter 2005 included a net gain of 1 cent per share on the sale of a New York City office building and related relocation costs, tax benefits, asset impairments and other costs.

The recently issued Financial Accounting Standard, Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans (FAS 158), will be effective at year-end 2006 and requires the recognition of the funded status of defined benefits plans as either an asset or liability on the balance sheet.  Based on Verizon's current estimates, the company expects to decrease shareowners' equity by approximately $10 billion post-tax as a result of adopting this change.  There is no impact on cash flows or earnings as a result of adopting this change.

Updates on Future Transactions

Earlier this month, Verizon announced that its Board of Directors had approved the proposed spin-off of Information Services to its stockholders. The spin-off is expected to close on or about Nov. 17, resulting in a new public company called Idearc Inc.

As a result of the spin-off, Verizon is expected to reduce its outstanding indebtedness by approximately $7 billion through a debt-for-debt exchange as described in the Form 10 Registration Statement filed with the Securities and Exchange Commission.  Verizon is also expected to receive approximately $2 billion in cash proceeds from additional borrowings by Idearc in connection with the spin-off.

In April 2006, Verizon announced the execution of definitive agreements to sell its interests in Verizon Dominicana, Telecomunicaciones de Puerto Rico and Compañia Anónima Nacional Teléfonos de Venezuela.  These asset sales are proceeding, and Verizon Dominicana and Telecomunicaciones de Puerto Rico are reported as discontinued operations.

Business Highlights

Following are third-quarter 2006 highlights for Verizon's Wireless, Wireline and Information Services business segments.

Wireless:

• Continuing its focus on retail (non-wholesale) customers, Verizon Wireless added a record 2.0 million net retail customers during the third quarter.  Based on publicly available information, the company has the largest retail customer base in the industry -- 54.6 million retail customers of its 56.7 million total customers (which includes retail and wholesale).
  
  


• Service revenues (which do not include taxes and regulatory fees) increased 16.5 percent to $8.5 billion for the third quarter 2006.  Total service ARPU increased to $50.59, up 0.9 percent from the similar period in 2005 and up 1.8 percent from the prior quarter.  Retail service ARPU was higher at $51.21 for the quarter, an increase of 1.2 percent over 2005.
  
  


• Cost efficiency continued to lead the industry, as the company's cash expense per customer in the third quarter declined 5.0 percent year-over-year to $27.85.
  
  


• Data services revenues, driven mainly by continued growth in business data revenues, contributed $1.2 billion, nearly double the amount for the same period a year ago.  In the third quarter, data revenues were 14.1 percent of all service revenues, up from 8.4 percent in the third quarter of 2005.  Data service ARPU continued to grow in the third quarter, increasing by 69 percent over the year-ago quarter.  The company now has 30.9 million data customers -- a 43 percent increase compared with third quarter 2005.
  
  


• Continued expansion of the company's national 3G EV-DO high-speed data network and a leading lineup of business and consumer devices are propelling its growth in data services revenues.  During the third quarter, Verizon Wireless extended its wireless broadband network reach to include new areas in Alabama, Arizona, Florida, Georgia, Idaho, Illinois, Kansas, Massachusetts, Nebraska, New Hampshire, New Mexico, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Vermont.  At the end of the third quarter, 13.7 million customers had broadband-capable devices, including phones, PDAs, BlackBerries and laptop PC cards.
  
  


• During the third quarter, the company announced supply agreements with Nortel and Motorola for CDMA 1xEV-DO Revision (Rev.) A technology, which will provide significantly faster data speeds for high-bandwidth wireless services such as VoIP and advanced multimedia applications.  An agreement with Lucent Technologies was announced in June.
  
  


• The company continued to expand its business customer base during the quarter and introduced new devices to enhance business connectivity, including the compact, plug-in Novatel ExpressCard for PCs; two Airlink Wireless rugged modems designed for always-on and location-based solutions; and the BlackBerry 8703e, which runs on the Verizon Wireless high-speed broadband network.
  
  


• For consumers, the company launched the G'zOne Type-V, a rugged phone designed to stand up under the roughest conditions, and the MOTOKRZR K1m, the latest in a leading lineup of V CAST Music-enabled phones that allow customers to browse and download from the V CAST Music library of 1.4 million songs.  The company now offers 10 music-capable phones, including the Chocolate(TM), available exclusively from Verizon Wireless.
  
  


• Get It Now services continued to hit milestones, for the first time in a single month topping 5 billion text messages and 100 million picture/video messages exchanged, in September.  For the quarter, Verizon Wireless customers exchanged a total of 14.4 billion text messages -- a company and industry record -- and nearly 290 million picture/video messages.  Customers also completed more than 68 million downloads of games, ringtones, ringback tones and exclusive content.
  
  


• Verizon Wireless continued to expand its distribution, adding post-paid service plans to its prepaid lineup at nearly 1,400 Target stores nationwide.
  
  


• The company announced plans to add a new customer service center in Huntsville, Ala., in late 2007 to continue to deliver the best customer service in the industry to its growing customer base.  The facility also will be home to a business sales team and a national service team for government customers.
  
  


• During the quarter, the company again received third-party recognition for the reliability of its network.  Verizon Wireless ranked highest nationally among the top five national wireless providers and scored significantly above the industry average in the J.D. Power and Associates Wireless Call Quality Performance Study Volume 2.  In addition, for the sixth consecutive year, Verizon Wireless was included among Working Mother Magazine's 100 Best Companies for its commitment to helping parents balance work and family.  (Working Mother also included Verizon Communications separately on this year's list.)

Wireline:

• Data revenues were $4.1 billion in the third quarter 2006, up 89.3 percent from the third quarter 2005 -- a comparison favorably affected by the inclusion of MCI this year.  Data revenues now make up 32 percent of Verizon's total wireline revenues.

Verizon Telecom

• FiOS data services are becoming increasingly available for sale in 16 states, as Verizon's FTTP (fiber to the premises) network passed a total of 5.3 million premises by the end of the third quarter and is on target to pass 6 million premises by year-end.
  
  


• Penetration of FiOS Internet service now stands at 14 percent across all markets, with the service available for sale to 3.8 million premises as of the end of the third quarter, compared with 12 percent at the end of the second quarter 2006.
  
  


• Penetration of FiOS TV service now stands at 10 percent across all markets, with the service available for sale to 1.2 million premises as of the end of the third quarter.  As the deployment of FiOS TV ramped up and more premises became open for sale due to successful efforts to obtain cable franchises, the company added a net of 63,000 new FiOS TV customers in the third quarter 2006, compared with 35,000 in the second quarter 2006.
  
  


• Churn among FiOS customers remains lower than 1.5 percent per month, and costs associated with customer churn continue to be lower than anticipated.  Costs to pass a premises with fiber have declined to $845 in September 2006, already lower than the company's year-end target of $850.  Costs to connect a premises to fiber declined to $900 in September, toward a year-end target of $880.  As customer growth ramped up, earnings dilution from FiOS data and video deployment was 9 cents per share in the third quarter.  The company increased the full-year 2006 estimate of this dilution to 31 cents to 32 cents per share, from 28 cents to 30 cents per share.
  
  


• Complementing the FiOS TV rollout, Verizon now has 496,000 customers who receive a Verizon DIRECTV bundle, adding 64,000 net new customer additions in the quarter.  Total net additions of 170,000 year-to-date reflect adjustments for amounts previously reported.
  
  


• Approximately 7.5 million Verizon Freedom packages were in service to mass market customers by the end of the third quarter 2006, an increase of approximately 2.5 million since the end of the third quarter 2005.  Verizon Freedom packages, which offer local wireline services with various combinations of long-distance and Internet access, are part of a bundling strategy designed to retain retail, primary access line customers.
  
  


• Among legacy Verizon customers (that is, excluding former MCI mass market customers), the average monthly revenue per household in the third quarter 2006 was $53.06, an increase of more than 2 percent compared with both third quarter 2005 and second quarter 2006.

Verizon Business

• The Verizon Business IP Web Center continues to be recognized by leading industry authorities for the breadth and depth of its product portfolio, and its service received the prestigious 2006 INTERNET TELEPHONY TMC Labs Innovation Award.  IP Web Center, a Web-based, complete hosted contact-center solution, allows companies to quickly start up or expand their customer communications operations in response to rapidly changing business plans or business continuity requirements. 
  
  


• In addition to a significant expansion of its Ethernet capabilities in Europe, Verizon Business offerings during the third quarter included further expansion of its managed hosting capabilities to support five of the world's most widely deployed computer operating systems, as well as the launch of a high-definition digital video transport service for broadcast and entertainment companies and other businesses in 13 Northeast and Mid-Atlantic states.
  
  


• During the quarter, Verizon Business also opened its new Government Network Operations and Security Center, dedicated to supporting the unique security and operational requirements of its federal government customers.  The center, located in Northern Virginia, will support the managed network services Verizon Business provides to nearly every federal government agency from the civilian, intelligence and defense communities.
  
  


• Multinational companies including Hearst Corporation, First Data Corporation and Johnson Controls completed agreements with Verizon Business during the quarter for a wide range of communications services.  Verizon Business recently completed the deployment of a 60-plus node Private IP multiprotocol label switching (MPLS) network and a global IP network connecting more than 30 sites for Hearst, a 119-year-old multimedia company with more than 20,000 employees worldwide.
  
  


• Verizon Business executed significant extension agreements during the quarter with federal customers including the General Services Administration and the U.S. Postal Service.
  
  


• Extended Stay Hotels recently increased the scope of its agreement with Verizon Business to provide Private IP service to CarrAmerica, a recently acquired affiliate.  This is in addition to the La Quinta and MeriStar brands added earlier this year.  By the end of 2006, Verizon will connect more than 1,200 sites.  Dave & Buster's, a leading operator of upscale restaurant/entertainment complexes, completed a new agreement during the quarter with Verizon Business for Private IP, virtual private network (VPN), and data center and voice services.  Verizon Business will help Dave & Buster's link all their locations nationwide in a secure, reliable advanced IP network environment.
  
  


• Internationally, Verizon Business also signed significant new business during the quarter, including several notable deals for VoIP services.  The Queen Elizabeth II Conference Centre in Westminster, London, an executive agency of the newly-created Department for Communities and Local Government, is one of the first U.K. government agencies to migrate its voice services to a VoIP system using IP Integrated Access.  Separately, the U.K. National Health Service's Eastern Region Tariffs Consortium is conducting an IP Integrated Access VoIP trial in preparation for a full VoIP rollout across its sites.
  
  


• Atos Worldline, a major European player in the processing of large volume electronic exchanges, signed a new contract with Verizon Business for Global Inbound Services to support customer communications.  The London Stock Exchange has also extended its existing relationship with Verizon Business, signing a new four-year contract to manage its overall wide area network (WAN).  Network reliability to support trading market data was cited as a key reason for contract renewal.
  
  


• Personal computer manufacturer Acer Europe Services has also extended its relationship with Verizon Business, implementing Private IP in a two-year contract to link its European sites with its overall global network.  Other customers that have extended their relationship with Verizon Business include Ubisoft Entertainment Inc., a computer and video game publisher, and Alliance Atlantis Communications Inc., a leading specialty broadcaster in Canada.  Both customers use Verizon Internet bandwidth and co-location services.

Information Services:

Since the spin-off process described above is still ongoing, Information Services results of operations, financial position and cash flows continue to be reported in continuing operations in the third quarter.

• Information Services third-quarter operating revenues were $804 million compared with $857 million in the third quarter of 2005, a 6.2 percent decline, primarily driven by reductions in domestic print-advertising revenue and the impact of the sale of small international operations.
  
  


• In the third quarter, Information Services' domestic online directory and search service, SuperPages.com, achieved revenue growth of 22.4 percent compared with the third quarter of 2005, and Internet yellow pages searches increased 84.5 percent over the same period.

ADSK: Autodesk Toxik 2007 Creative Toolset and Customer Base Gain Momentum

Autodesk, Inc. (NASDAQ: ADSK) today announced the first creative tools extension for its Autodesk Toxik 2007 software, containing advanced features for image transforms, filtering and warping. Toxik is used to create feature film visual effects, offering 2D and 3D compositing tools, integrated collaboration and the ability to manipulate high-resolution, high-dynamic range (HDR) imagery with ease. The software has been used to shape several feature films, including Silent Hill and The Fountain.

Hollywood-based post-production facility Red Engine Productions recently adopted Toxik for its support and extension model. John Chalfant, partner and creative director, commented: "Red Engine is a new facility. We've built our workflow from the ground up, keeping in mind that we've got to be equipped for today's projects and the demands of the future. Toxik's capabilities grow regularly through extensions; it's like having a multi-million dollar R&D department in-house."

Atlanta-based Turner Studios and Hollywood-based Asylum also recently purchased Toxik. In response to Hollywood's growing interest in Toxik, Autodesk has expanded its customer support and reseller network. Toxik training is currently available at fxphd, the first Autodesk Training Center to offer courses online to artists around the world. For more information visit http://www.fxphd.com/

Autodesk Toxik Extension 1

Available only to Autodesk subscription members, the first Toxik 2007 extension offers a new 2D Transform feature in addition to the software's existing 3D Transform tool. This feature is based on distinct filtering techniques developed by Autodesk's Image Science Group -- a team of scientists dedicated to developing state-of-the-art image processing tools. The 2D Transform tool allows artists to move, scale and rotate an image while maintaining a superior level of accuracy and quality.

Other key features in the extension include Lens Distort and Comparison tools. Lens Distort allows artists to correct or simulate lens distortion in a clip. Digital artists can quickly remove or adjust existing camera lens distortion, and apply lens distortion to computer-generated and other undistorted layers. In addition, the Autodesk Flame visual effects system's Comparison feature is now included in Toxik. This feature allows artists to juxtapose images and easily examine results in context with reference frames or other nodes within a composition.

For a full list of features offered in the first Autodesk Toxik 2007 extension, visit http://www.autodesk.com/toxik

Autodesk Toxik Development Model

Toxik software's flexible, modular architecture has enabled the rapid and regular deployment of new features through both extensions and major releases. Extensions add new functionality to the major release, Autodesk Toxik 2007, without disrupting production in the core Toxik environment.

Pricing and Availability

Autodesk Toxik 2007 Extension 1 is currently available to subscription holders for download from the Toxik portal. Autodesk Toxik 2007 can now be purchased in single seats for US$6,500*, not including subscription. Subscription is no longer required with purchase and is available for a newly reduced price of US$1,200*.

*North American pricing. International pricing may vary.

ADSK: Autodesk and JumpTap form Strategic Alliance to Advance Development of Location-Enabled Search Services for Mobile Operators

Autodesk, Inc. (NASDAQ: ADSK) today announced that JumpTap will utilize the award-winning Autodesk LocationLogic platform to offer location-based mobile search services to mobile operators in North America and throughout Europe. The strategic alliance between the two companies grew from JumpTap's involvement with the Autodesk Location Services Developer Program, where the two companies shared the vision, resources and support needed to harness the power of location- enabled mobile search.

JumpTap, a pioneer in the development of innovative mobile search technology, will use the Autodesk LocationLogic platform to offer real-time geoservices such as maps, driving directions and points of interest in order to address the need associated with a user's mobile search results. The location awareness of JumpTap's mobile search service is a true differentiator for mobile operators and a greatly enhanced experience for mobile users.

"JumpTap impressed us from the very beginning," said Joe Astroth, Vice President of Autodesk Location Services. "JumpTap's vision and approach to the local search business along with their technical innovations make them a compelling partner in the industry."

"This partnership helps advance our goals of offering differentiated and comprehensive mobile search capabilities to our mobile operator partners," said Adam Soroca, Vice President and General Manager of Search Services for JumpTap Inc. "Autodesk LocationLogic allows us to quickly and easily add location to JumpTap's mobile search and advertising service."

The Autodesk Location Services Developer Program empowers application developers with the same tools used by five world-class carriers to build and deploy location-smart wireless services. Developers participating in the Autodesk Location Services Developer Program are enabling their place in growth potential by receiving the most comprehensive set of tools as well as full-time, dedicated support personnel.

About Autodesk

Autodesk, Inc. is a Fortune 1000 company, wholly focused on ensuring that great ideas are turned into reality. With seven million users, Autodesk is the world's leading software and services company for the manufacturing, infrastructure, building, media and entertainment, and wireless data services fields. Autodesk's solutions help customers create, manage and share their data and digital assets more effectively. As a result, customers turn ideas into competitive advantage, become more productive, streamline project efficiency and maximize profits.

Founded in 1982, Autodesk is headquartered in San Rafael, California. For additional information about Autodesk, please visit http://www.autodesk.com/

About JumpTap, Inc.

Founded in 2004, JumpTap, Inc. provides wireless carriers with an end-to- end, carrier-branded mobile search solution that drives third-party revenue for mobile operators while providing a quick, easy and fun mobile search experience for subscribers. JumpTap's comprehensive solution couples an intuitive user interface and mobile-specific search engine with a search marketing model that pays carriers for search success. JumpTap provides carriers, advertisers and subscribers with the industry's most complete, easy- to-use and rewarding mobile search environment. For more information on JumpTap, please visit: http://www.jumptap.com/

MSFT: Microsoft Reports First Quarter Earnings, Delivers Double Digit Revenue Growth

Microsoft Corp. today announced first quarter revenue of $10.81 billion for the period ended September 30, 2006, an 11% increase over the same quarter of the prior year. Operating income for the quarter was $4.47 billion, an 11% increase compared with $4.05 billion in the prior year period. Net income and diluted earnings per share for the first quarter were $3.48 billion and $0.35 per share. For the same quarter of the previous year, net income and diluted earnings per share were $3.14 billion and $0.29, including a $0.02 per share charge for certain legal charges.

“The solid revenue results for the quarter were at the top end of our expectations and represent a very good start to the fiscal year,” said Chris Liddell, chief financial officer at Microsoft.

Server & Tools revenue increased 17% over the comparable quarter in the prior year, reflecting healthy performance for offerings such as SQL Server™ 2005, Windows Server®, Visual Studio® 2005 and BizTalk® Server. SQL Server experienced revenue growth of over 30%, as customers are increasingly deploying SQL Server for their mission critical, transaction-oriented databases.

Entertainment and Devices Division revenue growth of 70% over the prior year was driven by demand for Xbox 360™ consoles, software, peripherals, and Xbox Live®. Xbox 360 has sold 6 million consoles worldwide life to date and achieved record cumulative attach rates for software and peripherals in the United States, while Xbox Live passed the four million member mark during the quarter.

The company has made considerable progress toward delivering two highly anticipated products to customers with the forthcoming releases of Windows Vista™ and the 2007 Microsoft® Office system. During the quarter, the first release candidate for Windows Vista was made available to nearly 5 million customers worldwide, and the beta 2 version of the 2007 Microsoft Office system was in use by over 3 million customers.

“The strong results are a reflection of our solid execution and ongoing focus on operational excellence,” said Kevin Turner, chief operating officer at Microsoft. “As we look to the upcoming releases of Windows Vista, the 2007 Microsoft Office system and Exchange Server 2007, we are excited about these products and believe they will deliver unprecedented levels of business value to our customers.”

Business Outlook

Microsoft management offers the following guidance for the fiscal second quarter ending December 31, 2006:

• Revenue is expected to be in the range of $11.8 billion to $12.4 billion, which reflects approximately $1.5 billion of revenue deferrals that will be captured in the fiscal third quarter as noted below.

• Operating income is expected to be in the range of $2.9 billion to $3.1 billion, which reflects approximately $1.5 billion of deferrals noted below.

• Diluted earnings per share are expected to be $0.22 to $0.24, which includes an $0.11 per share impact for deferrals noted below.


Note: The guidance above includes the impact of an approximately $1.5 billion of revenue deferral from the second to the third quarter, primarily related to the technology guarantee programs announced on October 24, 2006 for Windows Vista and the 2007 Microsoft Office system.

• Management offers the following guidance for the full fiscal year ending June 30, 2007:

• Revenue is expected to be in the range of $50.0 billion to $50.9 billion.

• Operating income is expected to be in the range of $19.1 billion to $19.5 billion.

• Diluted earnings per share are expected to be in the range of $1.43 to $1.46.

ORCL: Oracle Announces The Same Enterprise Class Support For Linux As For Its Database

Oracle announced that it would provide the same enterprise class support for Linux as it provides for its database, middleware and applications products. Oracle starts with Red Hat Linux, removes Red Hat trademarks, and then adds Linux bug fixes.
Currently, Red Hat only provides bug fixes for the latest version of its software. This often requires customers to upgrade to a new version of Linux software to get a bug fixed. Oracle's new Unbreakable Linux program will provide bug fixes to future, current, and back releases of Linux. In other words, Oracle will provide the same level of enterprise support for Linux as is available for other operating systems.

Oracle is offering its Unbreakable Linux program for substantially less than Red Hat currently charges for its best support. "We believe that better support and lower support prices will speed the adoption of Linux, and we are working closely with our partners to make that happen," said Oracle CEO Larry Ellison. "Intel is a development partner. Dell and HP are resellers and support partners. Many others are signed up to help us move Linux up to mission critical status in the data center."

"Oracle's Unbreakable Linux program is available to all Linux users for as low as $99 per system per year," said Oracle President Charles Phillips. "You do not have to be a user of Oracle software to qualify. This is all about broadening the success of Linux. To get Oracle support for Red Hat Linux all you have to do is point your Red Hat server to the Oracle network. The switch takes less than a minute."

"We think it's important not to fragment the market," said Oracle's Chief Corporate Architect Edward Screven. "We will maintain compatibility with Red Hat Linux. Every time Red Hat distributes a new version we will resynchronize with their code. All we add are bug fixes, which are immediately available to Red Hat and the rest of the community. We have years of Linux engineering experience. Several Oracle employees are Linux mainline maintainers."

DELL
"As a customer with first hand experience of Oracle's outstanding support organization, Dell will use Oracle to support Linux operating systems internally," said Michael Dell, Chairman of the Board, Dell. "Oracle's new Linux support program will help us drive standards deeper into the enterprise. Today we're announcing that Dell customers can choose Oracle's Unbreakable Linux program to support Linux environments running on Dell PowerEdge servers."

Intel
"Having worked with Oracle for many years in the enterprise computing space, we believe that the Oracle Unbreakable Linux program will bring tremendous value to our mutual Linux customers," said Paul Otellini, President and CEO, Intel Corporation. "Our work with Oracle on this program will be an important extension to our longstanding enterprise computing relationship."

HP
"HP and Oracle's collaboration and testing of Linux with integrated stacks of hardware, software, storage, and networking has helped create numerous best practices across the industry. HP welcomes the addition of Oracle's Unbreakable Linux program to the portfolio," said Mark Hurd, Chairman and Chief Executive Officer, HP.

IBM
"Oracle's support for Red Hat Linux will encourage broader adoption of Linux in the enterprise," said Bill Zeitler, Senior Vice President & Group Executive, IBM Systems and Technology Group. "IBM shares Oracle's goal of making Linux a reliable, highly standard, cost effective platform for mission critical applications backed by world class support."

Accenture
"Linux is important to us, and to our customers," said Don Rippert, Chief Technology Officer, Accenture. "We applaud Oracle's efforts to bring enterprise-quality support to Linux with the Oracle Unbreakable Linux program announcement. Together with Oracle, we at Accenture look forward to making the Linux experience even better for our customers."

AMD
"Oracle's Unbreakable Linux program will greatly expand the servicing options available to our AMD Linux customers," said Hector Ruiz, Chairman and Chief Executive Officer of Advanced Micro Devices. "We are excited by the program's potential to further enhance the success of AMD Linux servers in the enterprise."

Bearing Point
"It is critical that our customers have true enterprise-quality support for their Linux deployments. Oracle's Unbreakable Linux program support delivers the level of confidence our customers need to run Linux in their data centers," said Harry You, CEO, Bearing Point.

EMC
"The combined power of EMC and Oracle solutions bring superior reliability, scalability, high availability, and now, enhanced enterprise supportability to Linux users. We are confident that joint Linux solutions from EMC and Oracle will deliver enterprise scale and quality while lowering the cost of infrastructure for our customers," said Joe Tucci, Chairman, CEO, President, EMC.

BMC
"As Oracle's only systems management ISV at the highest level in Oracle's Partner Program, BMC Software is excited to see Oracle's deepening commitment to Linux," said Bob Beauchamp, BMC Software President and CEO. "Business Service Management from BMC Software with the Oracle Unbreakable Linux program meets customer demand for lower cost and higher quality support for their infrastructure."

NetApp
"The world's largest enterprises must have the flexibility to quickly and continually adapt to today's rapidly changing business requirements, without incurring risk," said Dan Warmenhoven, CEO of Network Appliance. "The Oracle Unbreakable Linux program is designed to drive the key benefits of Linux - including flexibility, reliability, and simplicity - directly into the data center. The longstanding relationship between NetApp and Oracle has enabled us to continuously deliver superior enterprise solutions to enable business agility and improve reliability - all tenets of the NetApp brand."

Oracle Support
Oracle's breadth and depth of technical expertise, advanced support technologies, and global reach includes 7,000 support staff in 17 global support centers, providing help to our customers in 27 languages, in any time zone. Oracle has recently been awarded the J.D. Power and Associates Global Technology Service and Support Certification for "an outstanding customer service experience."

"With the scale of our support organization we can provide much better Linux support at a much lower price," said Executive Vice President of Oracle Customer Services Juergen Rottler. "We have the expertise and infrastructure to improve substantially the quality of support for enterprise Linux customers."

Enterprise Linux binaries will be available for free from Oracle. Enterprise Linux Network Support will be offered for $99.00 per system / per year. Enterprise Linux Basic support, which offers Network access plus 24x7 global coverage will be offered for $399 for a 2 CPU system per year and $999 for a system with unlimited CPU's. Enterprise Linux Premier Support, which offers Basic support plus back port of fixes to earlier releases as well as Oracle Lifetime Support will be offered for $1,199 for a 2 CPU system per year and $1,999 for a system with unlimited CPU's.

Oracle and Linux
Oracle has been a long-standing, key contributor to the Linux community. Oracle produced its first commercial Linux database in 1998. Since that time Oracle has worked steadily to improve the experience of all Linux users. Oracle's Linux Engineering team is a trusted part of the Linux community, and has made major code contributions such as Oracle Cluster File System that is now part of Linux kernel 2.6.16. Oracle has been and will continue contributing Linux related innovations, modifications, documentation and fixes directly to the Linux community on a timely basis.

HPQ: HP Adds PayPal as Payment Option to HP Home & Home Office Store

HP today announced that it is offering PayPal as a payment option at the HP Home & Home Office Store, making it easier than ever to purchase HP’s latest consumer technology products.

PayPal allows customers to pay for items using their credit cards, bank accounts and stored balances, without having to share their financial information when shopping on multiple sites on the web.

The most comprehensive selection of HP technology products and supplies will now be available to PayPal’s more than 122 million accounts. PayPal customers can customize desktop and notebook PCs based on their personal preferences and select from HP’s new line of high-definition products, including a 17-inch widescreen diagonal HD-DVD notebook and an HD-DVD Media Center TV PC.

“Adding PayPal as a payment option gives our customers more choices and even greater convenience,” said Sam Taylor, senior vice president, Consumer Direct, HP. “PayPal’s millions of customers can experience the HP Home Store’s award-winning customer service and unparalleled selection of HP consumer products and supplies.”

Stephanie Tilenius, vice president of merchant services for PayPal, said: “We are excited to add the HP Home Store, one of the nation’s leading e-commerce sites, to the list of merchants who accept PayPal. Many of our customers already shop for HP products and will be eager to use their PayPal accounts to do so.”

In addition to using PayPal, HP Home Store customers may use most major credit cards to make purchases at the site. For added convenience and savings, the HP Home Store also offers qualifying customers an e-financing program.

Further details and additional promotions are available at www.hpshopping.com

About PayPal

PayPal enables any individual or business with an email address to send and receive payments online securely and easily using a bank account, credit card or stored balance. Because PayPal allows customers to shop online without sharing their financial information, privacy is built into the service. PayPal has more than 122 million accounts and is available to users in 103 markets around the world. More information about the company can be found at www.paypal.com

CMCSA: Comcast Reports Third Quarter 2006 Results

Comcast Corporation (Nasdaq: CMCSA, CMCSK) today reported results for the quarter ended September 30, 2006. The following table highlights results for the quarter (dollars in millions, except per share amounts; units in thousands):

    Consolidated                        3Q06      Growth Q/Q  Growth YTD
    Revenue                            $6,432         22%        15%
    Operating Cash Flow(1)             $2,437         25%        16%
    Operating Income(1)                $1,224         46%        27%
    Earnings per Share(1)               $0.58        480%       181%

    Cable(2)
    Revenue                            $6,630         12%        11%
    Operating Cash Flow                $2,624         15%        14%
    Revenue Generating Unit Additions   1,486         82%        66%

Brian L. Roberts, Chairman and CEO of Comcast Corporation, said, "We're setting new records in the third quarter, underscoring the strong momentum in our cable business. All our key metrics are accelerating, including revenue and operating cash flow, as well as RGU additions, which reached their highest quarterly level in our Company's history. Cable's outstanding results reflect both great execution and growing demand for our Triple Play offering. Our strategy of bringing value to consumers through a set of superior services is driving the business to new levels of performance. We are confident that we will broaden our relationships with our customers, strengthen our competitive advantage and accelerate our operational and financial performance as we expand the availability of Triple Play throughout our markets."

Cable Segment Results(2)

Cable results are presented as if the acquisition of Susquehanna Communications and the Adelphia/Time Warner transactions were effective on January 1, 2005. Cable results also include the results of the Houston, TX cable systems that will be received with the expected dissolution of the Texas/Kansas City cable partnership as if the transaction was effective on January 1, 2005. (See note 2 for additional details).

Revenue increased 12% to $6.6 billion in the third quarter of 2006 as demand for our video, voice and high-speed Internet services accelerated. The rollout of our Triple Play offering contributed to the record-setting RGU net additions for the quarter.

Revenue generating units (RGUs)(3) increased 1.486 million in the third quarter of 2006 or 82% from prior year net additions. RGU growth was concentrated in Historical Comcast Systems(4) with 1.402 million or 94% of the net additions in those markets. Comcast ended the third quarter of 2006 with 49.2 million RGUs, an increase of 4.3 million units from one year ago.

Operating Cash Flow (as defined in Table 7) grew 15% to $2.6 billion in the third quarter of 2006 resulting in an Operating Cash Flow margin of 39.6%, an increase from the 38.5% reported in the same quarter of 2005. The margin improvement reflects strong revenue growth and our continuing success in controlling the growth of operating costs, even as we experience higher service and installation activity from record RGU additions and incorporate lower-margin operations from cable systems received in the Adelphia/Time Warner and expected Texas/Kansas City transactions.

Video
-- Added 558,000 new digital subscribers during the quarter - digital
penetration now exceeds 50%
-- Historical Comcast Systems added 24,000 basic video subscribers during
the quarter compared to a loss of 39,000 in the prior year
Video revenue increased 9% to $4.2 billion in the third quarter of 2006, reflecting growth in digital customers and increased demand for new digital features including ON DEMAND, digital video recorders (DVR) and HDTV programming, as well as higher basic cable rates and subscribers.

Basic video subscribers increased by 10,000 subscribers to 24.1 million during the third quarter of 2006 compared to a decline of 44,000 subscribers in the third quarter of 2005. The 10,000 basic video subscriber net additions include a gain of 24,000 basic video subscribers from Historical Comcast Systems, offset by a loss of 14,000 basic video subscribers in systems received in the Adelphia/Time Warner and expected Texas/Kansas City transactions.

Comcast ended the quarter with 12.1 million or 50% of video subscribers taking digital services, a 1.6 million or 16% increase from one year ago. The number of digital subscribers includes various levels of digital service. As of September 30, 2006, 52% or 6.2 million customers subscribed to Comcast digital cable, 34% or 4.1 million subscribed to digital cable with advanced services (DVR and/or HDTV) and 14% or 1.7 million customers subscribed to enhanced cable.

Growth in the number of subscribers receiving the enhanced cable service has increased steadily in 2006 as Comcast incorporates this service into our Triple Play offer. In the third quarter, Comcast added 558,000 digital customers, including 135,000 digital cable and 423,000 enhanced cable subscribers. At the same time, 315,000 digital cable customers subscribed to advanced services either by upgrading their digital service or as new customers. Comcast added more than 1.5 million digital cable customers with advanced services (DVR and/or HDTV) since the third quarter of last year.

Growth in video revenue and digital cable subscribers also reflects increasing consumer demand for new digital features including ON DEMAND, driving a pay-per-view revenue increase of 31% in the third quarter of 2006 from the same time in 2005.

High-Speed Internet
-- Added 536,000 high-speed Internet subscribers during the quarter - most
quarterly additions in two years
High-Speed Internet revenues increased 22% to $1.4 billion in the third quarter of 2006, reflecting a 1.8 million or 20% increase in subscribers from the prior year and stable average monthly revenue per subscriber. Comcast ended the third quarter of 2006 with 11.0 million high-speed Internet subscribers or 24% penetration of available homes.

Phone
-- Added 483,000 Comcast Digital Voice (CDV) customers during the quarter
-- CDV service now marketed to 31 million homes or 65% of Comcast's
footprint
Phone revenue increased 51% to $252 million reflecting a significant increase in CDV subscriber additions, reduced by a $39 million decline in circuit-switched phone revenues as Comcast continues to focus on marketing CDV. Comcast ended the third quarter of 2006 with a total of 2.1 million phone customers. Customer additions in the third quarter of 2006 include 483,000 new CDV customers offset by the loss of 102,000 circuit-switched customers.

Advertising revenue increased 10% to $395 million in the third quarter of 2006 when compared to 2005, reflecting strong growth in political advertising.

Capital expenditures of $1.25 billion in the third quarter of 2006 were 25% higher compared to the third quarter of 2005 driven by an 82% increase in RGU net additions over the same time period. In the third quarter of 2006, and consistent with historical trends, more than 75% of cable capital expenditures were variable and directly associated with new product offerings and strong consumer demand for our products.

Content Segment Results(5)

Comcast's Content segment consists of our national cable networks E! Entertainment Television and Style Network (E! Networks), The Golf Channel, VERSUS (formerly OLN), G4 and AZN Television.

The Content segment reported third quarter 2006 revenue of $258 million, a 9% increase from 2005 and Operating Cash Flow of $88 million, a 22% increase from 2005, reflecting increases in network ratings, advertising revenue and distribution revenue.

Corporate and Other(5)

Corporate and Other includes Comcast Spectacor, corporate overhead and other operations, and eliminations between Comcast's businesses. In the third quarter of 2006, Comcast reported Corporate and Other revenue of $16 million and an Operating Cash Flow loss of $104 million, as compared to revenue of $21 million and an Operating Cash Flow loss of $105 million in 2005.

Consolidated Results

Consolidated results include all acquisitions as of the date of their closing. Comcast acquired Susquehanna Communications in April 2006 and completed the Adelphia/Time Warner transactions in July 2006. As part of the Adelphia/Time Warner transactions Comcast transferred cable systems serving Los Angeles, Dallas and Cleveland to Time Warner (presented as discontinued operations for all periods). Consolidated results, as of September 30, 2006, include our interest in the Texas/Kansas City cable partnership as an equity method investment.

Operating Income increased 46% to $1.2 billion in the third quarter of 2006 due to strong results at Comcast Cable, including record-setting RGU additions as described above. Similarly, consolidated operating income increased 27% to $3.4 billion for the nine months ended September 30, 2006.

Net Income increased to $1.2 billion, or $0.58 per share, in the third quarter of 2006, compared to net income of $222 million or $0.10 per share in the third quarter of 2005. In addition to strong operating results at Comcast Cable, the current quarter includes an estimated one-time gain, included in investment income, of $694 million (or $435 million net of tax) related to the Adelphia/Time Warner transactions. Also included in this quarter's results is a one-time gain of $234 million, net of tax, on discontinued operations related to the transfer of cable systems to Time Warner. Excluding these gains and reconciled in Table 7-C, Adjusted Net Income for the third quarter of 2006 would be $548 million or $0.26 per share.

Net income increased to $2.1 billion, or $1.01 per share, in the nine months ended September 30, 2006 compared to net income of $795 million, or $0.36 per share, in the prior year. Strong operating results at Comcast Cable and the gains described above contributed to the growth in net income on a year-to-date basis. Excluding these gains, and reconciled in Table 7-C, Adjusted Net Income for the nine months ended September 30, 2006 would be $1.5 billion or $0.69 per share.

Net Cash Provided by Operating Activities increased to $5.1 billion for the nine months ended September 30, 2006 from $3.9 billion in 2005 due

primarily to stronger operating results and changes in operating assets and liabilities.

Free Cash Flow (described further on Table 4) increased $812 million to $2.2 billion for the nine months ended September 30, 2006 compared to $1.4 billion in 2005, due primarily to growth in consolidated Operating Cash Flow and changes in working capital. The conversion rate of Operating Cash Flow into Free Cash Flow increased to 32% for the nine months ended September 30, 2006 from 23% in the same period of 2005.

Pro Forma Consolidated Results(6)

Pro forma consolidated results are being presented as if the following were effective on January 1, 2005 (see note 6 for additional details): the acquisition of Susquehanna Communications, the Adelphia/Time Warner transactions and the results of the cable systems serving Houston, TX to be received with the expected dissolution of the Texas/Kansas City cable partnership.

Revenue increased 12% to $6.9 billion in the third quarter of 2006 while Operating Cash Flow increased 16% to $2.6 billion in the third quarter reflecting strong growth in both the cable and content divisions.

Share Repurchase Program

Comcast repurchased $493 million or 15 million shares of its Class A Special Common Stock during the third quarter of 2006. On a year-to-date basis, Comcast repurchased $1.9 billion or 64 million shares, reducing the number of shares outstanding by 3%.

Remaining availability under the Company's stock repurchase program is $3.5 billion. Comcast expects such repurchases to occur from time to time in the open market or in private transactions, subject to market conditions.

Since the inception of the repurchase program in December 2003, the Company has invested $6.9 billion in its common stock and related securities reducing the number of shares outstanding by over 10%. These investments include repurchasing $5.5 billion or 191 million shares of common stock and paying $1.4 billion to redeem several debt issues exchangeable into 47 million shares of common stock.

2006 Financial Outlook

Comcast reaffirms all previously issued guidance for 2006 and updates cable guidance to include the Adelphia/Time Warner transactions and the Houston system, as follows:

-- Cable revenue growth of 10-11% above 2005 pro forma cable revenue of
$23.6 billion which includes a net $2.4 billion related to
acquisitions and dispositions;
-- Cable Operating Cash Flow growth of at least 13% above 2005 pro forma
cable operating cash flow of $9.1 billion which includes a net $800
million related to acquisitions and dispositions;
-- Cable RGU net additions approximately 60% above 2005 pro forma RGUs
of 3 million net additions;
-- Cable capital expenditures of approximately $4.5 billion supporting
RGU growth in 2006 and including capital expenditures for the
Adelphia/Time Warner transactions and the Houston systems of
approximately $500 million.

Notes:

1 Operating Cash Flow percentage growth is adjusted as if stock options
had been expensed in 2005. Operating income and earnings per share
percentage growth are unadjusted. See Tables 7-A and 7-B for
reconciliation of "as adjusted" financial data.

2 Cable results are presented on a pro forma, as adjusted, basis. Pro
forma results adjust only for certain acquisitions and dispositions,
including Susquehanna Communications (April 2006), the Adelphia/Time
Warner transactions (July 2006) and the expected dissolution of the
Texas/Kansas City cable partnership. Comcast will receive, subject to
certain approvals, the cable systems serving Houston, TX with the
dissolution of the Texas/Kansas City cable partnership. Effective
August 1, 2006, our economic interest in the Texas/Kansas City cable
partnership tracks solely the performance of the Houston, TX cable
systems. Accordingly, we included the systems' results in Cable pro
forma data. Cable results are presented as if the transactions noted
above were effective on January 1, 2005. The net impact of these
transactions was to increase the number of basic cable subscribers by
2.6 million. These "As Adjusted" results are presented as if stock
options had been expensed in 2005. Please refer to Tables 7-A and 7-B
for a reconciliation of pro forma, "As Adjusted" financial data.

3 Represents the sum of basic and digital video, high-speed Internet and
net phone subscribers, excluding additional outlets. Subscriptions to
DVR and/or HDTV services by existing Comcast Digital customers do not
result in additional RGUs.

4 Historical Cable Systems include those systems owned by Comcast prior
to the Adelphia/Time Warner transactions and the expected dissolution
of the Texas/Kansas City cable partnership.

5 Operating Cash Flow adjusted as if stock options had been expensed in
2005.

6 Pro forma consolidated results are presented on a pro forma, as
adjusted, basis as described in note 2.

ORCL: Oracle Previews New Release of Oracle E-Business Suite at Oracle OpenWorld 2006

Today at Oracle OpenWorld, Oracle previewed the next major release of Oracle(r) E-Business Suite. Designed to support businesses in today's global economy, Oracle E-Business Suite Release 12 enables customers to think globally to make better decisions, work globally to be more competitive and manage globally to lower costs and increase performance. With a new streamlined user interface and thousands of new cross-industry capabilities spanning enterprise resource planning, customer relationship management and supply chain management, Oracle E-Business Suite Release 12 is continued proof of "Applications Unlimited" program, Oracle's long-term plan to provide continued enhancements to current Oracle Applications.
"LG Electronics, Inc. is the world's major technology innovator in electronics, information and communications products. With more than 80 subsidiaries globally, we needed a solution that could cost efficiently support our global business processes," said President and CFO of LG Electronics Young-Soo Kwon. "We chose Oracle E-Business Suite as it provided the best platform for integrating our various global systems. We are also excited about Oracle E-Business Suite Release 12 and we believe the shared service center capabilities that are planned will make this new release even easier to manage, which will make our business more efficient."

Think Globally to Make the Better Decisions
Having a single, global view of customers, suppliers, partners and operations gives companies the ability to make more informed decisions. With the new release of the Oracle E-Business Suite, Oracle has added capabilities to help make decisions based on complete information from systems that cross regions and divisions. Examples of planned capabilities include:

* Oracle Profitability Manager, which gives users expanded capabilities to perform profitability analysis and reporting along any dimension of business including products, channels, segments and the ability to drill down to individual customers.
* Oracle Strategic Network Optimization, which allows users to continuously evaluate the cost and revenue implications of any decision affecting a company's global supply chain.
* Oracle Projects Portfolio Analysis, which gives users the ability to choose, fund and prioritize global projects based on what-if scenario analysis.

Work Globally to be More Competitive
Many companies are faced with the complexities of running an organization that has multiple divisions spanning different operating units or global regions. Oracle E-Business Suite Release 12 provides new functionality for managing processes that span multiple business units. For example, the planned functionality in Oracle Financials allows for a single transaction to create multiple accounting entries for local and corporate GAAP, providing large multinational companies the ability to manage from a single repository for simplified consolidation and reporting. Additionally, new capabilities planned in Oracle Compensation Workbench show all forms of compensation for employees in a single place regardless of the employee's geographic location or organizational boundary.

Manage Globally to Lower Costs and Increase Performance
Historically, implementing and managing applications that cross operating units or geographic entities has taken considerable time and effort. Oracle E-Business Suite Release 12 makes it easier and less expensive to implement, manage and scale. Planned key areas include:

* Compliance - Oracle E-Business Suite Release 12 allows users to manage compliance globally with a centralized business rules repository for reviewing and auditing of accounting business rules in a single environment.
* Streamlined User Experience - Oracle E-Business Suite Release 12 leverages the strongest user experience best practices from existing and acquired products to deliver and easy-to-use user experience. The new user interface helps ensure maximum productivity for a company's users.
* Global Application Management - Oracle E-Business Suite Release 12 includes pre-instrumented management functionality in Oracle Enterprise Manager 10g for Oracle E-Business Suite Release 12, helping customers maximize the value of enterprise applications. Additionally, to simplify the installation and upgrade process, Oracle E-Business Suite Release 12 allows system administrators to receive specific instructions based on implemented products and previously applied patches.
* Extensive Integration Capabilities - Oracle E-Business Suite Release 12 provides advanced support for integrating Oracle applications with third party applications. Oracle E-Business Suite Release 12 includes a web services repository that catalogues hundreds of services in the Oracle E-Business Suite. Additionally, Oracle plans to certify Oracle E-Business Suite Release 12 on Oracle Fusion Middleware which includes Oracle BPEL Process Manager to manage processes that span heterogeneous applications.

Industry Specific Processes
Oracle has continued to expand its support for adaptable, industry specific business processes. Examples planned for Oracle E-Business Suite Release 12 include:

* Communications - Oracle Order Management supports ongoing maintenance of customer services including re-configuration, upgrade, downgrade, suspend, resume or disconnect of services. Additionally, Oracle Asset Tracking enables service providers to manage the financial and operational lifecycle of their network infrastructure.
* High Technology and Manufacturing - To support regulatory compliance requirements in Japan and China, Oracle Financial Management supports charge-based Shikyu and support for Golden Tax. Oracle Shop Floor Management has support for lot and serial controlled assemblies and sales order reservation for lot-based jobs and MES capabilities to support process and discrete manufacturing companies.

"Oracle E-Business Suite Release 12 has been built to ensure that companies, no matter what size or industry, can compete effectively in an increasingly global economy," said Oracle Senior Vice President of Application Development John Wookey. "With a focus on helping companies make better decisions, work more efficiently and manage their businesses at lower costs, Oracle E-Business Suite Release 12 will help them manage the complexities of global business environments."

Customers looking for more information on Oracle Applications are encouraged to attend one of the 1000 events that are being held around the world as part of the Oracle Applications World Tour. These events are designed to communicate the Oracle Application strategy and product roadmaps. Please visit the World Tour website for more information, at www.oracle.com/worldtour