AccessIT - FISCAL 2009 FIRST QUARTER RESULTS

http://investor.accessitx.com/releaseDetail.cfm?ReleaseID=326909

Revenue Growth and Adjusted EBITDA Margin Increase Continues, Driven by Virtual Print Fees and Satellite Delivery Business -

MORRISTOWN, N.J., Aug 07, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Access Integrated Technologies, Inc. ("AccessIT" or the "Company") (Nasdaq: AIXD) reported a 13% increase in revenues, to $20.6 million for the fiscal 2009 first quarter ended June 30, 2008, versus the year-ago period. The Company posted an Adjusted EBITDA(1) (defined below) of $10.2 million or $0.38 per share, an improvement from both the fiscal 2008 first quarter of $6.1 million and the fiscal 2008 March quarter of $8.9 million. Net loss of $4.3 million or $0.16 per share was also an improvement as compared to the year-ago quarter of $6.8 million, or $0.28 per share respectively. The net loss includes non-cash expenses for depreciation, amortization of intangible assets, non-cash interest, stock-based expenses and stock-based compensation aggregating $11.7 million or $0.44 per share.

First Fiscal Quarter Highlights

-- Revenues for the fiscal 2009 first quarter increased by 13%, to $20.6 million from $18.1 million in the comparable year ago period. This increase was driven largely by a 33% gain in the media services segment, including Virtual Print Fees ("VPFs") and record levels of media delivery fees in our satellite unit offset by an 18% decrease in revenues from our content and entertainment segment. As compared to the last fiscal quarter, revenues were down slightly from $21.9 million due to a reduction of in-theatre advertising revenue and seasonality which resulted in a slight decline in VPF revenue, offset by an increase in the satellite delivery business.

-- Income from Operations in the first quarter improved to $0.7 million, from a loss of $1.3 million in the comparable year ago period and a loss of $2.4 million in the fiscal 2008 March quarter. The improvement in loss from operations as compared to last quarter is primarily the result of a $1.6 million impairment of intangible assets charge last quarter. Lower direct operating expenses and SG&A were also factors in this improvement. Year-over-year, the shift to income from operations was due primarily to higher revenues and decreased direct operating and SG&A expenses, partially offset by increased depreciation.

-- Gross Profit Margin (revenue less direct operating expenses) was more than 70% in this first quarter, an improvement over last fiscal year's overall 67%.

-- Adjusted EBITDA(1) margins improved to 49% in the June 2008 quarter from 34% in the comparable year ago period, and from 41% in the fiscal 2008 March quarter.

Bud Mayo, Chief Executive Officer of AccessIT, stated, "The growing financial success in our Media Services Group, specifically the Digital Cinema deployment, transport and software operating units, highlights that we are already capitalizing on the digital cinema future even before Phase 2 begins. There is tremendous opportunity to provide services to distributors and exhibitors alike in the digital cinema era, and AccessIT is the only company with proven comprehensive and integrated solutions. We are excited at the prospects for growth and improvement at AccessIT to take full advantage of this opportunity."

(1) Adjusted EBITDA is defined by the Company to be earnings before interest, taxes, depreciation and amortization, other income (expense), net, stock-based compensation and non-recurring items. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation in the tables attached to this release of Adjusted EBITDA to U.S. GAAP net income (loss). The Company calculated and communicated Adjusted EBITDA in the tables because the Company's management believes it is of importance to investors and lenders by providing additional information with respect to the performance of its fundamental business activities. The Company's calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the U.S. GAAP operating measure of net income (loss). In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. Management does not intend the presentation of these non- GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with U.S. GAAP. These non-GAAP measures should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with U.S. GAAP.

CONFERENCE CALL NOTIFICATION

AccessIT will host a conference call to discuss its financial results at 10:30 a.m. EDT on Thursday, August 7, 2008. The conference can be accessed by dialing 719.325.4908, at least five minutes before the start of the call. No passcode is required. The conference call will also be webcast simultaneously and will be accessible via the web on AccessIT's Web site, www.accessitx.com . A replay of the call will be available after 1:30 p.m. eastern at 719.457.0820 or 888.203.1112, passcode 3868943. The replay will be accessible through Thursday, August 14th.