Airvana Reports Second-Quarter Financial Results

GAAP Financial Highlights

-- Revenue: Total revenue for the second quarter of 2008 was $59.0 million, compared with $156.3 million in the second quarter of 2007. Revenue in the second quarter of 2007 reflected the delivery of the initial commercial release of Airvana's EV-DO Rev A software product. Revenue in the second quarter of 2008 reflected the delivery of a subsequent software upgrade of Airvana's EV-DO Rev A software product. For the first six months of 2008, total revenue was $66.7 million, compared with $156.5 million for the first six months of 2007.

-- Net Income: Net income for the second quarter of 2008 was $20.6 million, compared with $86.1 million for the second quarter of 2007. For the first six months of 2008, net income was $8.9 million, compared with $67.3 million for the first six months of 2007.

Non-GAAP Financial Highlights

-- Product and Service Billings ("Billings"): On a non-GAAP basis, Billings for the second quarter of 2008 were $26.3 million, compared with $36.5 million for the second quarter of 2007. EV-DO billings for the second quarter of 2008 reflected the later stages of Rev A network deployments for coverage as well as early stages of capacity expansion of these networks, including higher-capacity Radio Network Controllers, software upgrades and maintenance. For the first six months of 2008, Billings were $64.1 million, compared with $78.0 million for the first six months of 2007.

-- Gross Profit on Billings: On a non-GAAP basis, the Company's gross profit on Billings for the second quarter of 2008 was $23.2 million, compared with $34.5 million for the second quarter of 2007. For the first six months of 2008, gross profit on Billings was $58.5 million, compared with $74.1 million for the first six months of 2007.

-- Operating (Loss) Profit on Billings: On a non-GAAP basis, Airvana reported an operating loss on Billings for the second quarter of 2008 of $988,000, compared with an operating profit on Billings for the second quarter of 2007 of $8.6 million. This expected year-over-year decrease was primarily a result of the lower level of Billings and the Company's increased investment in fixed-mobile convergence (FMC) product development. For the first six months of 2008, the Company reported operating profit on Billings of $9.4 million, compared with $28.2 million for the first six months of 2007.

A description of Airvana's revenue-recognition policy, which results in significant variability in reported revenue from quarter to quarter, and its non-GAAP financial measures is included at the end of this press release.

Comments on the Second Quarter

"Airvana performed well in the second quarter, posting Billings near the high end of our outlook, delivering the latest EV-DO software release as planned, and achieving key milestones in product development," said President and Chief Executive Officer Randy Battat. "As we expected, EV-DO Billings in the second quarter were seasonally lower than in the first quarter. However, we believe that wireless operators continue to experience rapid growth in broadband data traffic on their networks, driven in large part by the introduction of new 3G multimedia services. This growth should continue to fuel demand for products in our core EV-DO business, and we expect the combination of coverage and capacity expansion to deliver both sequential and year-over-year growth in the second half of this year."

"This was an exciting and productive quarter for our new femtocell products," Battat said. "During the quarter we signed an agreement with Alcatel-Lucent for our CDMA femtocell products, and we announced a similar agreement with Hitachi earlier this week. We believe that success in femtocells requires partnerships with the other major players in the equipment ecosystem, especially vendors of the core-network equipment to which femtocells connect and manufacturers of integrated xDSL and home gateway equipment that will likely incorporate embedded femtocell modules. Airvana has now announced CDMA and UMTS femtocell partnerships with Nokia Siemens Networks, Thomson, Motorola, Hitachi and Alcatel-Lucent. These relationships demonstrate both the power of Airvana's femtocell technology and our globally recognized reputation as an outstanding partner for OEMs and operators."

Recent Business Highlights

-- New Release of EV-DO Software Addresses Rapidly Growing Demand for Mobile Data Services: Airvana's latest version of EV-DO Rev A software, which was delivered in June, enables mobile operators to more efficiently increase capacity on their networks and accelerate the deployment of next-generation wireless multimedia services. This release implements an important upgrade to Airvana's pioneering and patent-pending radio network controller clustering technology that minimizes service interruptions as wireless subscribers move across cell boundaries.

-- Joint Development Agreement Signed with Alcatel-Lucent for End-to-end 3G CDMA/EV-DO Femtocell Solution: Working together, Airvana and Alcatel-Lucent plan to develop an advanced CDMA femtocell solution that combines Airvana's HubBub(TM) femtocell access point and Universal Access Gateway (UAG) with Alcatel-Lucent's IP Multimedia Subsystem (IMS) core network infrastructure. The goal is to provide seamless interoperability between the femtocell and the broader macro network to ensure that users have a consistent, high-quality mobile experience for voice, data and video services as they move between indoor and outdoor environments. An early demonstration of Airvana's joint development work with Alcatel-Lucent took place in April at the CTIA Wireless 2008 exhibition in Las Vegas.

-- Hitachi and Airvana Enter CDMA Femtocell Joint Development Agreement: Airvana and Hitachi plan to produce a joint solution that integrates Hitachi's radio access network infrastructure and Airvana's HubBub(TM) femtocell and UAG. Hitachi's RAN technology delivers 3G mobile broadband services in a macro network environment. Adding Airvana's HubBub(TM) CDMA femtocell and UAG technologies will create a comprehensive solution that enables operators to increase network capacity while delivering new voice and data services with significantly greater levels of performance and coverage, independent of the user's location.

Share Repurchase Program

Airvana's board of directors has approved a share repurchase program authorizing the Company to purchase up to $20 million of its common stock over the next 12 months. The purchases of common stock will be executed periodically as market and business conditions warrant on the open market under a Rule 10b5-1 plan, which permits shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The Company's board of directors decided to pursue this course of action after considering the Company's financial position and current market and product development commitments. "Our common stock repurchase program reflects the board's confidence in the future prospects of the Company and further demonstrates its commitment to enhancing shareholder value," Battat said.

Business and Financial Outlook

"We're looking forward to returning to growth in the third quarter," said Battat. "We begin the second half of 2008 with strong momentum in both our EV-DO and femtocell products. We continue to expect Billings to increase sequentially and year-over-year in both the third and fourth quarters of 2008 driven by the combination of our core EV-DO and new products. We expect our EV-DO business will be strong due to continued coverage deployments, capacity expansion, and new software capabilities delivered to our growing installed base. In addition, we expect to begin generating more significant Billings for our CDMA and UMTS femtocell solutions throughout the second half, with these new products representing 10%-15% of total Billings by the end of the year."

Airvana is reiterating its financial outlook for 2008. The Company continues to expect Billings for the second half of 2008 to be higher than the first half of 2008, based upon anticipated capacity-driven growth in the core EV-DO products as well as planned software releases. Billings in the second half of 2008 also are expected to reflect demand for both UAG products and new femtocell solutions. Airvana expects Billings for the full year 2008 to be higher than Billings for the full year 2007. For the third quarter of 2008, Airvana expects Billings (non-GAAP) in the range of $33 million to $35 million. The Company also expects revenue (GAAP) for the third quarter of 2008 in the range of $6 million to $8 million.

Conference Call Details

Airvana will host a conference call today at 8:30 a.m. (ET) to discuss the Company's financial results, highlights of the quarter, business strategy and financial outlook. The conference call will be webcast live on the Internet, and can be accessed on the Investor Relations section of the Company's website (www.airvana.com). The conference call can also be accessed by dialing (877) 407-5790 or (201) 689-8328. A replay of the webcast will be available on the Investor Relations section of the Company's website.

Revenue Recognition Policy

Airvana recognizes revenue in accordance with the American Institute of Certified Public Accountants' Statement of Position (SOP) No. 97-2, Software Revenue Recognition. The Company collaborates with its OEM customers to develop specific features for products that they sell to their wireless operator customers. The Company and its OEM customers typically agree on software specifications and plans for specified upgrades several years in advance of delivery, and these upgrades are unique to each OEM customer.

The Company's typical sales arrangements involve multiple elements, including: perpetual licenses for software products and specified software upgrades; the sale of hardware, maintenance and support services; and the sale of professional services, including training. In order to recognize revenue from current product shipments, Airvana must establish vendor specific objective evidence, or VSOE, of fair value for all undelivered elements, including specified upgrades. The best objective evidence of fair value would be to sell these specified software upgrades separately to multiple customers at the same price. However, the specific features and functionality delivered in the Company's software upgrades are uniquely designed for each OEM, and therefore the Company is unable to establish VSOE of fair value for such upgrades.

Therefore, Airvana recognizes revenue from the sale of products and services under these OEM arrangements only after the Company delivers the upgrades that were committed at the time of sale. Airvana records as deferred revenue the product and service billings at the time of shipment. This revenue is recognized later after delivery of these specified upgrades. As a result, the Company believes that its revenue, taken in isolation, provides limited insight into the performance of its business. Therefore, the Company also presents certain non-GAAP financial measures including: product and service billings, which reflects sales activity in a period; and costs related to product and service billings, which reflects the cost associated with product and service billings.

Non-GAAP Financial Measures

To supplement the Company's condensed consolidated financial statements presented on a US GAAP basis, Airvana uses non-GAAP billings measures of operating results, gross profit on billings and operating income on billings, which include changes in deferred revenue and deferred costs in a period. These non-GAAP financial measures are presented with the intent of providing both management and investors with a more complete understanding of Airvana's underlying operating performance and trends. The Company believes that these non-GAAP financial measures enhance the overall understanding of its past financial performance and also its prospects for the future. These non-GAAP measures provide an indication of the Company's financial results based upon sales activity in the period and are considered by management for the purpose of making operational decisions. In addition, these non-GAAP measures are the primary indicators that management uses as a basis for the Company's planning and forecasting of future periods.

Management uses the following non-GAAP measures (detailed in Exhibits 1 and 2) as a supplement to GAAP revenue and cash flow from operations in evaluating the Company's performance:

-- Product and Service Billings ("Billings") reflects the amount invoiced for products and services in a period and equals GAAP revenue plus the change in deferred revenue in the period.

-- Costs Related to Billings reflects the cost directly attributable to Billings in a period and equals GAAP cost of revenue plus the change in deferred product cost in the period.

-- Gross Profit on Billings reflects Billings less costs related to Billings in the period.

-- Operating Profit on Billings reflects Gross Profit on Billings less GAAP operating expenses in the period.

Management believes investors may find these measures useful for understanding the Company's operations, but cautions that they should not be considered a substitute for disclosure in accordance with GAAP. Exhibits 1 and 2 reconcile all non-GAAP metrics to the corresponding income statement items as determined in accordance with GAAP for all periods presented and for the six quarters ending with the second quarter of 2008.

About Airvana, Inc.

Airvana specializes in helping wireless operators transform the mobile experience for users worldwide. The Company's high-performance technology and products, from comprehensive femtocell solutions to core mobile network infrastructure, enable operators to deliver broadband services to mobile devices, independent of physical location. Airvana is headquartered in Chelmsford, Massachusetts, USA, with additional offices in Dallas, Texas, the United Kingdom, Spain, Germany, China, India, Japan and Korea. For more information, please visit the Company's website at www.airvana.com.

Safe Harbor Statement

Any statements in this press release about future expectations, plans and prospects for Airvana, including without limitation statements about expectations related to the Company's future performance, such as total revenue and Billings, and the timing for product releases, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements typically contain the words "believes," "anticipates," "plans," "expects," "will" and similar expressions. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including without limitation the highly competitive and rapidly evolving market in which Airvana competes, Airvana's limited operating history, the timing and rate of femtocell market acceptance and growth, operator femtocell deployment plans, the fluctuation of its past operating results and its reliance on sales through Nortel Networks for a significant portion of its revenues and product and service billings, as well as other factors discussed in Airvana's filings with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent Airvana's views as of the date of this press release. Airvana anticipates that subsequent events and developments will cause its views to change. However, while Airvana may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Airvana's views as of any date subsequent to the date of this press release.

Airvana, Inc. Consolidated Statements of Operations Comparative Financial Results (Amounts in thousands except per share data) (Unaudited) Three Months Six Months Ended Ended July 1, June 29, July 1, June 29, 2007 2008 2007 2008 ----------------- ----------------- Revenue: Product $141,641 $54,784 $141,641 $60,317 Service 14,615 4,235 14,884 6,340 ----------------- ----------------- Total revenue 156,256 59,019 156,525 66,657 Cost of revenue: Product 33,918 1,314 33,931 1,434 Service 1,852 2,013 3,522 3,806 ----------------- ----------------- Total cost of revenue 35,770 3,327 37,453 5,240 Gross profit 120,486 55,692 119,072 61,417 % Gross margin 77% 94% 76% 92% Operating expenses: Research and development 18,598 18,091 34,581 37,350 Selling and marketing 3,182 3,825 5,762 7,403 General and administrative 1,721 2,321 3,237 4,394 In-process research & development 2,340 - 2,340 - ----------------------------------- Total operating expenses 25,841 24,237 45,920 49,147 ----------------------------------- Operating income 94,645 31,455 73,152 12,270 Interest income, net 1,879 1,792 4,587 4,377 Income before income tax benefit 96,524 33,247 77,739 16,647 Income tax expense 10,422 12,684 10,422 7,758 ----------------------------------- Net income $ 86,102 $20,563 $ 67,317 $ 8,889 =================================== Net income per common share applicable to common stockholders: Basic $ 1.56 $ 0.32 $ 1.14 $ 0.14 Diluted $ 1.37 $ 0.29 $ 1.04 $ 0.13 Weighted average common shares outstanding: Basic 14,017 64,601 13,938 64,248 Diluted 21,526 70,763 20,793 70,398

Airvana, Inc. Consolidated Balance Sheets (Amounts in thousands) (Unaudited) December June 29, 30, 2008 2007 ------------------ Assets Current assets: Cash and cash equivalents $ 43,547 $ 35,312 Investments 178,416 189,111 Accounts receivable 14,171 7,941 Deferred product cost, current 1,050 1,354 Prepaid taxes and deferred tax assets 1,537 1,705 Prepaid expenses and other current assets 3,064 2,281 ------------------ Total current assets 241,785 237,704 Property and equipment 17,831 18,744 Less: accumulated depreciation and amortization 11,434 13,007 ------------------ 6,397 5,737 Long-term investments 3,068 Deferred tax assets 1,786 1,777 Restricted investments 193 193 Goodwill and intangible assets, net 12,165 11,631 Other assets 414 395 ------------------ Total assets $262,740 $260,505 ================== Liabilities and stockholders' equity Current liabilities: Accounts payable $ 3,806 $ 1,592 Accrued expenses and other current liabilities 11,162 9,147 Accrued income taxes 15,016 5,915 Deferred revenue, current 79,915 76,374 ------------------ Total current liabilities 109,899 93,028 Deferred revenue, long-term 63 1,022 Other liabilities 2,928 2,452 Accrued income taxes 4,675 4,692 ------------------ Total long-term liabilities 7,666 8,166 Stockholders' equity: Common stock 64 65 Additional paid-in capital 190,409 195,655 Accumulated deficit (45,298) (36,409) ------------------ Total stockholders' equity 145,175 159,311 ------------------ Total liabilities and stockholders' equity $262,740 $260,505 ==================

Airvana, Inc. Consolidated Statements of Cash Flows (Amounts in thousands) (Unaudited) Three Months Ended Six Months Ended July 1, June 29, July 1, June 29, 2007 2008 2007 2008 ------------------- -------------------- Operating activities Net income $ 86,102 $ 20,563 $ 67,317 $ 8,889 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 782 814 1,504 1,621 Amortization of intangible assets 178 267 178 534 Stock-based compensation 739 1,179 1,253 2,264 In-process research and development 2,340 - 2,340 - Deferred tax benefit 5 12,684 5 7,758 Tax benefit related to exercise of non- qualified stock options - (1,497) - (1,497) Amortization of investments (1,338) (1,149) (2,587) (2,410) Amortization of leasehold incentive (130) (131) (260) (261) Non-cash interest income (15) - (103) - Changes in operating assets and liabilities: Accounts receivable (13,506) 3,098 29,304 6,230 Deferred cost 33,672 297 33,513 (304) Prepaid taxes 2,451 618 2,451 115 Prepaid expenses and other current assets 287 379 271 783 Accounts payable (156) (1,647) (685) (2,214) Accrued expenses and other current liabilities 2,528 1,651 (556) (1,911) Accrued income taxes 8,437 (701) 8,437 (15,776) Deferred revenue (119,706) (32,740) (78,500) (2,582) ------------------- -------------------- Net cash provided by operating activities 2,670 3,685 63,882 1,239 Investing activities Purchases of property and equipment (673) (455) (2,259) (1,033) Restricted Investments - - Purchase of 3-Way Networks, net of cash acquired (10,907) - (10,907) - Purchases of investments (56,262) (68,803) (163,810) (175,793) Maturities of investments 66,951 74,504 123,594 147,809 Investments sold 16,631 Other assets (91) 16 (87) 19 ------------------- -------------------- Net cash (used in) provided by investing activities (982) 5,262 (53,469) (12,367) Financing activities Payments on long-term debt (53) (94) (53) (112) Proceeds from initial public offering, net of issuance costs (841) - (1,709) - Payments of cash dividend (72,707) (5) (72,707) (50) Purchase of treasury stock - - (96) - Tax benefit related to exercise of non-qualified stock options 1,497 1,497 Proceeds from exercise of stock options 266 670 502 1,486 ------------------- -------------------- Net cash (used in) provided by financing activities (73,335) 2,068 (74,063) 2,821 Effect of exchange rates on cash and cash equivalents 56 59 52 72 ------------------- -------------------- Net (decrease) increase in cash and cash equivalents (71,591) 11,074 (63,598) (8,235) Cash and cash equivalents at beginning of period 94,808 24,238 86,815 43,547 ------------------- -------------------- Cash and cash equivalents at end of period $ 23,217 $ 35,312 $ 23,217 $ 35,312 =================== ====================

Exhibit 1 ---------------------------------------------------------------------- Airvana, Inc. Select Quarterly Financial Data - GAAP & non-GAAP Metrics (Amounts in thousands) (Unaudited) Three Months Ended ---------------------------------------------------------------------- April 1, July 1, Sept. 30, 2007 2007 2007 ---------- ---------- ---------- GAAP Financial Metrics ------------------------------------ Total revenue $ 269 $ 156,256 $ 3,645 Cost of revenue 1,683 35,770 1,689 ---------- ---------- ---------- Gross (loss) profit (1,414) 120,486 1,956 Operating expenses 20,079 25,841 25,167 ---------- ---------- ---------- Operating (loss) profit (21,493) 94,645 (23,211) Net cash provided by (used in) operating activities 61,212 2,670 17,493 Cash, cash equivalents and investments 220,270 139,328 210,011 Accounts receivable 3,262 16,768 8,221 Days sales outstanding(a) 7 42 24 Deferred revenue - end of period 284,624 165,088 192,259 Deferred product cost - end of period 34,373 701 1,323 Reconciliation of GAAP and non-GAAP Metrics ------------------------------------ Revenue (GAAP) $ 269 $ 156,256 $ 3,645 Less: deferred revenue from acquisition - (171) - Deferred revenue at end of period 284,624 165,088 192,259 Less: deferred revenue at beginning of period (243,418) (284,624) (165,088) ---------- ---------- ---------- Product and service billings, "Billings" (non-GAAP) 41,475 36,549 30,816 Cost of revenue (GAAP) 1,683 35,770 1,689 Deferred product cost at end of period 34,373 701 1,323 Less: deferred product cost at beginning of period (34,214) (34,373) (701) ---------- ---------- ---------- Cost related to Billings (non-GAAP) 1,842 2,098 2,311 Gross profit on Billings (b) 39,633 34,451 28,505 Gross margin on Billings - non- GAAP(c) 96% 94% 93% Total operating expenses (GAAP) 20,079 25,841 25,167 ---------- ---------- ---------- Operating profit on Billings - non- GAAP(d) 19,554 8,610 3,338 ---------- ---------- ---------- % operating profit on Billings 47% 24% 11% Stock-based compensation included in operating expense $ 514 $ 739 $ 819 Acquisition costs included in operating expense - $ 2,340 - Dec. 30, March 30, June 29, 2007 2008 2008 ---------- --------- ---------- GAAP Financial Metrics -------------------------------------- Total revenue $ 145,616 $ 7,638 $ 59,019 Cost of revenue 2,762 1,913 3,327 ---------- --------- ---------- Gross (loss) profit 142,854 5,725 55,692 Operating expenses 27,399 24,910 24,237 ---------- --------- ---------- Operating (loss) profit 115,455 (19,185) 31,455 Net cash provided by (used in) operating activities 10,396 (2,446) 3,685 Cash, cash equivalents and investments 221,963 220,969 227,491 Accounts receivable 14,171 11,039 7,941 Days sales outstanding(a) 39 27 28 Deferred revenue - end of period 79,978 110,136 77,396 Deferred product cost - end of period 1,050 1,651 1,354 Reconciliation of GAAP and non-GAAP Metrics -------------------------------------- Revenue (GAAP) $ 145,616 $ 7,638 $ 59,019 Less: deferred revenue from acquisition - - - Deferred revenue at end of period 79,978 110,136 77,396 Less: deferred revenue at beginning of period (192,259) (79,978) (110,136) ---------- --------- ---------- Product and service billings, "Billings" (non-GAAP) 33,335 37,796 26,279 Cost of revenue (GAAP) 2,762 1,913 3,327 Deferred product cost at end of period 1,050 1,651 1,354 Less: deferred product cost at beginning of period (1,323) (1,050) (1,651) ---------- --------- ---------- Cost related to Billings (non-GAAP) 2,489 2,514 3,030 Gross profit on Billings (b) 30,846 35,282 23,249 Gross margin on Billings - non- GAAP(c) 93% 93% 88% Total operating expenses (GAAP) 27,399 24,910 24,237 ---------- --------- ---------- Operating profit on Billings - non- GAAP(d) 3,447 10,372 (988) ---------- --------- ---------- % operating profit on Billings 10% 27% -4% Stock-based compensation included in operating expense $ 924 $ 1,085 $ 1,179 Acquisition costs included in operating expense - - - (a) Days sales outstanding (DSO) equals the accounts receivable divided by Billings (non-GAAP) multiplied by 91 (days in the period). (b) Gross profit on Billings equals the excess of Billings over cost related to Billings. (c) Gross margin on Billings equals the excess of Billings over cost related to Billings divided by Billings. (d) Operating profit on Billings equals Billings less cost related to Billings, less total operating expenses.

Exhibit 2 ---------------------------------------------------------------------- Airvana, Inc. GAAP to Non-GAAP Product and Service Billings Reconciliation (Amounts in thousands) (Unaudited) Three Months Ended July 1, 2007 -------------------------------- GAAP Deferral Non-GAAP Adjustments Billings --------- ------------ ---------- Revenue/Billings $156,256 $(119,707) $36,549 Cost of revenue 35,770 (33,672) 2,098 --------- --------- Gross profit 120,486 34,451 % Gross margin 77% 94% Operating expenses 25,841 25,841 --------- --------- Operating income (loss) $ 94,645 $ 8,610 --------- --------- % Operating margin 61% 24% Six Months Ended July 1, 2007 -------------------------------- GAAP Deferral Non-GAAP Adjustments Billings --------- ------------ ---------- Revenue/Billings $156,525 $ (78,501) $78,024 Cost of revenue 37,453 (33,513) 3,940 --------- --------- Gross profit 119,072 74,084 % Gross margin 76% 95% Operating expenses 45,920 45,920 --------- --------- Operating income $ 73,152 $28,164 --------- --------- % Operating margin 47% 36% Three Months Ended June 29, 2008 -------------------------------- GAAP Deferral Non-GAAP Adjustments Billings -------- ------------- --------- Revenue/Billings $59,019 $(32,740) $26,279 Cost of revenue 3,327 (297) 3,030 -------- --------- Gross profit 55,692 23,249 % Gross margin 94% 88% Operating expenses 24,237 24,237 -------- --------- Operating income (loss) $31,455 $ (988) -------- --------- % Operating margin 53% -4% Six Months Ended June 29, 2008 -------------------------------- GAAP Deferral Non-GAAP Adjustments Billings -------- ------------- --------- Revenue/Billings $66,657 $ (2,582) $64,075 Cost of revenue 5,240 304 5,544 -------- --------- Gross profit 61,417 58,531 % Gross margin 92% 91% Operating expenses 49,147 49,147 -------- --------- Operating income $12,270 $ 9,384 -------- --------- % Operating margin 18% 15%

SOURCE: Airvana, Inc.

Sharon Merrill Associates David Reichman, 617-542-5300 AIRV@InvestorRelations.com